Item G6
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: September 18, 2002
Division:
Public Safety
Bulk Item: Yes X
No
Department: Airports
AGENDA ITEM WORDING: Approval of Amendment to Lease Agreement with Grantair
Service, Inc., Fixed Base Operator (FBO), at Florida Keys Marathon Airport
ITEM BACKGROUND: This amendment rescinds three previous amendments containing
scrivener's errors and other inconsistencies. It consolidates that subject matter into a single document.
PREVIOUS REVELANT BOCC ACTION: BOCC approved an original lease agreement with
Grantair Service, Inc. in April of 1998 and three subsequent amendments thereto in June 2001,
September 2001, and July 2002.
CONTRACT/AGREEMENT CHANGES: This amendment rescinds the previous amendments of
June 2001, September 2001 and July 2002 and consolidates the subject terms and conditions into a
single document, including: the lease of additional 100' x 150' real property for use as rampway
extension and vehicle parking only for a 5-year period; the lease of additional 200' x 240' real property
for use for aircraft tiedown and taxiing only for the remaining period of the original lease (17- years);
corrects and clarifies the rates and charges for the additional leased real property and flowage fees for
Jet A fuel; and establishes payment due dates.
STAFF RECOMMENDATIONS:
Approval
TOTAL COST: n/a
COST TO COUNTY:
BUDGETED: Yes
No
REVENUE PRODUCING: Yes X No
AMOUNT PER YEAR $16,815.00 per year,
adjusted annually,
plus fuel flowage fee
APPROVED BY: County Atty ~ OMB/Purchasing ~ Risk Management ~s
MARATHON AIRPORT MANAGER APPROVAL: ~~((
heres a Cook
DIVISION DIRECTOR APPROVAL:
DOCUMENT ATION:
Included X
To Follow
Not Required_
AGENDA ITEM # G-c.e
DISPOSITION:
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Grantair Contract #
Effective Date: 10 April 1998
Expiration Date: 9 April 2018
Contract Purpose/Description:
This amendment rescinds three previous amendments containing scrivener's errors and other
inconsistencies and consolidates their subject matter into a single lease amendment document. It
provides for the lease of additional real property to the Fixed Base Operator (FBO) Grantair,
establishes rates and charges for the real property and Jet A fuel flowage and provides a
mechanism for the financing and processing of payments for specific improvements and
construction projects.
Contract Manager: Theresa Cook 6060 Airport/IS
(Name) (Ext. ) (Department/Stop #)
for BOCC meeting on 09-18-02 Agenda Deadline: 09-04-02
CONTRACT COSTS
Total Dollar Value of Contract: $ Revenue
Budgeted? YesD No [2J Account Codes:
Grant: $
County Match: $ n/a
Current Year Portion: $ 16,815+
ADDITIONAL COSTS
Estimated Ongoing Costs: $ /yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Changes
~~Jn Needed
Division Director ~'L YesD No
Risk Management <3 "~X>O{:r--YesD NoB I 0
/)/;
O.M.B.lPurchasing YesD No0::JJ Ir...c"---{ ~
County Attorney LlJ!:/02- YesD No[] ''2--(J/
Date Out
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Comments:
AMENDMENT TO LEASE AGREEMENT
GRANTAIR SERVICE, INC.
THIS AMENDMENT is made and entered into this day of
2002, by and between Monroe County, hereafter County, and GRANTAIR SERVICE, INC.,
hereafter FBO.
WHEREAS, on the 10th day of April, 1998, the parties entered into a 20 year lease (the
original lease), which was amended on June 21, 2001, September 19,2001, and July 17, 2002, to
provide Fixed Base Operations at the Marathon Airport; and
WHEREAS, each of the previous amendments have been determined to contain
scrivener's errors and other inconsistencies; and
WHEREAS, the parties desire to amend the original lease, as amended previously; now,
therefore,
IN CONSIDERA nON of the mutual promises and covenants set forth below, the parties
agree as follows:
1. This amendment rescinds the July 17, 2002, the September 19, 2001, and the
June 21, 2001 lease amendments between Monroe County and Grantair Service, Inc. in
their entirety.
2. Paragraph 1) of the original lease is amended by adding the subparagraph:
a) The County leases to the F80 an additional 100' x 150' real property
abutting the southeast side of their current leased area as described in Exhibit At.
Exhibit Al is attached to, and made a part of, this lease amendment. This 100' x 150'
real property may be used for rampway extension and vehicle parking only. The rampway
extension and vehicle parking area are to be built at the sole cost and expense of the
FBO. Any improvements made by the FBO to the real property automatically become the
property of the County upon the termination of this lease. However, Federal Aviation
Administration (FAA) and/or Florida Department of Transportation (FDOT) funds may
become available for improvement construction. In that case, if FAA and/or FDOT funds
are used to construct improvements, then the FBO must provide an irrevocable letter of
credit in the amount equal to its estimated share of the improvement before the County
awards the contract for such improvements and before any public funds are provided.
The County shall be allowed to draw on the letter of credit if necessary to pay for the
FBO's share of the construction costs. The County agrees to pay the applicable
percentage of the construction costs of the improvement construction, as approved by
the FAA and/or FDOT. Payment applications will be processed through the County
Airports Business Office. Upon receipt of contractor's payment application, a copy will
be provided to the FBO. The FBO will furnish a check for the required percentage
amount (amount not paid by FAA and/or FDOT) to the Business Office. The Business
The County shall be allowed to draw on the letter of credit if necessary to pay for the
FBO's share of the construction, installation and/or purchase of the fuel facility. The
County agrees to pay one-half of the construction, installation and/or purchase costs of
the Jet A Fuel Facility, as approved by FDOT. Payment Applications will be processed
through the County Airports Business Office. Upon receipt of contractor's payment
application, a copy will be provided to the FBO. The FBO will furnish a check for one-half
of the application amount to the Business Office. The Business Office will then forward
the approved payment application, with the check from the FBO, to the County Finance
Department for review and payment. All Change Orders must be approved by FDOT. If
the FBO wishes to proceed with a Change Order not approved by FDOT, then the FBO
will be responsible for the entire cost of the item. If additional funding, above the
original amount of the FDOT grant, is not available then any costs incurred over the
amount of the original FDOT grant will be paid entirely by the FBO. The Jet A Fuel
Facility is County property upon completion.
5. All other provisions of the April 10, 1998 original lease, as previously amended, not
inconsistent herewith, shall remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Amendment to Lease Agreement to
be executed by its duly authorized representative.
(SEAL)
ATTEST: DANNY L. KOLHAGE. CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/Chairman
ATTEST:
GRANTAIR SERVICES. INC.
By
Title
By
Title
jdAirMAPGrantoirX3
3
Office will then forward the approved payment application, with the check from the FBO,
to the County Finance Department for review and payment. The term of this
subparagraph a) leased real property begins on October 1, 2002 and ends on September
30,2007. If no permitted improvements are made within one (1) year of the amendment
date, then this subparagraph a) of the amendment becomes void. The rent for this real
property becomes due on October 1, 2002. This real property is 11.3 cents per square
foot per year, payable in advance, at $141.25 per month or $1,695.00 per year and
subject to increase in amount as provided by the formula in the original lease. If FAA
and/or FDOT funds are utilized then the lease rate is 31.5 cents per square foot per
year, payable in advance on a per month or per year basis, and subject to increase in
amount as provided by the formula in the original lease.
3. Paragraph 1) of the original lease is amended by adding the subparagraph:
b) The County leases to the FBO an additional 240' x 200' real property
abutting the west side of their current leased ramp area as described in Exhibit A2.
Exhibit A2 is attached to, and made a part of, this lease amendment. This 240' x 200'
real property may be used for aircraft tiedown and taxiing only. The rampway extension
is to be built using FAA and Passenger Facility Charge (PFC) funds. If however, FAA
and/or PFC funds become unavailable, then the ramp extension shall be built at the sole
cost and expense of the FBO. The term of this subparagraph b) leased real property
begins on October 1, 2002 and ends on April 9, 2018. The rent for this real property
begins the first day the property receives a certificate of occupancy (CO). This real
property is 31.5 cents per square foot per year since FAA and/or PFC funds are being
utilized. The rent at 31.5 cents per square foot per year, payable in advance, is
$1,260.00 per month or $15,120.00 per year, and subject to increase in amount as
provided by the formula in the original lease. If FAA and/or PFC funds become
unavailable and the FBO improves the property at its sole cost and expense, then the
leased rate is 11.3 cents per square foot per year, payable in advance on a per month or
per year basis, and subject to increase in amount as provided by the formula in the
original lease.
4. Paragraph 4) of the original lease is amended by adding the subparagraph:
e) The County and the FBO agree that if FDOT funds are used to construct,
install and/or purchase a Jet A Fuel Facility on the currently leased premises the County
will receive from the FBO 6 cents per gallon of pumped fuel as described in the original
lease and/or Marathon Airport Minimum Standards. If no FDOT funding is utilized the
fuel flowage fee for Jet A fuel will be 4 cents per pumped gallon as per the original lease
and/or the Monroe County Airport Minimum Standards. Before the Jet A fuel facility
can be operated, the County must receive original Certificates of Insurance in the
amounts required by Risk Management as described in Exhibit A3, cors to be attached
as Exhibit A4. In the case that FDOT funds are: used in part to construct, install and/or
purchase the Jet A Fuel Facility, then the FBO must provide an irrevocable letter of
credit in the amount equal to its estimated share of the improvement before the County
awards the contract for such improvements and before any public funds are provided.
2
The County shall be allowed to draw on the letter of credit if necessary to pay for the
FBO's share of the construction, installation and/or purchase of the fuel facility. The
County agrees to pay one-half of the construction, installation and/or purchase costs of
the Jet A Fuel Facility, as approved by FDOT. Payment Applications will be processed
through the County Airports Business Office. Upon receipt of contractor's payment
application, a copy will be provided to the FBO. The FBO will furnish a check for one-half
of the application amount to the Business Office. The Business Office will then forward
the approved payment application, with the check from the FBO, to the County Finance
Department for review and payment. All Change Orders must be approved by FDOT. If
the FBO wishes to proceed with a Change Order not approved by FDOT, then the FBG
will be responsible for the entire cost of the item. If additional funding, above the
original amount of the FDOT grant, is not available then any costs incurred over the
amount of the original FDOT grant will be paid entirely by the FBO. The Jet A Fuel
Facility is County property upon completion.
5. All other provisions of the April 10, 1998 original lease, as previously amended, not
inconsistent herewith, shall remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Amendment to Lease Agreement to
be executed by its duly authorized representative.
(SEAL)
ATTEST: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/Chairman
ATTEST:
By
Title
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SURVEYOR'S NOlES:
North arrow based on NAO 83 (1990) State Plane Coordinate System
Reference Bearing: NAn 83 (1990) State Plane Coordinate System
"tJ'denotes existing el.~tIqq"
Elevations based on N:G'.V:rr. 1929 Datum
Bench Mark No.:. ElevatJon:
Uonumentatlon:
A - set Spike or P.K. Nail, as noted 03.907 (destroyed)
S - set 1/2- Iron pipe. P .LS. No. 2749
.... found 1/2- iron pipe
Abbrwtatlons:
s~. _ Story o/n ... Overhead
R W- Right-of-Way u/g ... Underground
fd. - Found F.FL - Finish Floor Elevation
p. - Pfat conc.= concrete
m. - Measured
O.R. :a Official Records ~ "" Baseline
Sec. ~ Section C.B. "" Concrete Block
TWp.3 Township C.B.S."'" Concrete Block Stucco
Rge. ~ Range cov' d.- Covered
N:T.S.- Not to Scale DE - EIoctrical Pull Box
t - c.nterfine
8ev. ... Elevation OE= Electricol Man Hole
8.M.3 Bench Mark
EXHIBIT
A3
1996 Edition
AIRPORT LIABILITY
AND
HANGARKEEPERS LEGAL LIABILITY
INSURANCE REQUIREMENT
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
" .. '
.,
Recognizing that the work governed by this contract involves the repair, servicing, maintenance
~ueling, or storage of aircraft, the FBO will be required to purchase and maintain, throughout th~
lIfe of the contract, Airport Liability and Hangarkeepers Legal Liability Insurance naming the
Monroe County Board of County Conunissioners as Additional Insured.
The minimum limit~ 'of liability shall be $5 million.
The FBO shall (llso purchase Non-owned Aircraft Liability Insurance with minimum limits of
$5,000,000 per occurrence.
Modified by Risk Management 2/5/98
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1916 Edillon
POLLUTION LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACf
BETWEEN
MONROE COUNTY, FLORIDA
AND
..............
"
"
Recognizing that the work governed by this contract involves the storage, treatment, processing,
or transporting of hazardous materials (as defined by the Federal Envirorunental Protection
Agency), the FBO shall purchase and maintain, throughout the life of the contract, Pollution
Liability Insurance which will respond to bodily injury, property damage, and envirorunental
damage caused by a pollution incident.
The minimum limits ofliability shall be:
$1,000,000 per Occurrence/$2,000,OOO Aggregate
If coverage is provided on a claims made basis, an extended claims reporting period of four (~)
years will be required. .
Modified by Risk Management 2/5/98
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EXHIBIT
A4
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CERTIFICATE OF INSURANCE
C~RTIFICA TE DATE: 04/1012002
CERTIFICATE HOLDER:
Monroe County BOllTd of County Commissioners
its employees & ortic:ials
5100 College ROOld
Key West, FL 33040
CF.:RTIFICATE NUMBER: 02-05PF:T
POLICYHOLDER:
GTllntoir Service. Inc.
81100 OvcrsC:l.S Hlghw:JY
Marathon. FL 33050
,
J'hl$IS to ccnify thalli'll: lbllowing policy(sl. subj.:l;t to the tcnllS. conditiuns. limitillions illld cncJnrSCn1c'flt! CDl1t~In.:(ll.hcrcln. ~ll(l Guril)g Ulci;~"li'"c(iv', penod, II~~<.: b'~\.."
issucd by tile COlllpany(S) indicated bduw. In the cvc:nt of material Ch.1"gC or cancctlmlon of said poliC)I(l). the Cllmpany will """tle,var to nOlify the ccnific;llc holder. but
tailure to do SO Ihollln'pose no Ii:lbl'i~, or obli!l'll;"n "r""y kind up"n me undc[';igncd (lI' the eolt\p:\n}(s) In'o'v~~_.__.u..
Policy Type:
rn~ur:lnC:1: Comp:Jny:
Policy Number:
Policy Peri(ld:
OTHER
Florida Petroleum liability fnsurance Program
FPL 7511949
November 17, 200 I (0 November I 7, 200:!
PETROLEUM/POLLUTION LIABILITY
Deductible:
S I ,000,000 ElI-eh OCC'Jrrenc~ i S2.000,000 Aggl"'~g.llC
S5,000 Each Claim
Tilt. FORJ,C;CING EVIDI::,VCF. OF CO n:RAOE rs ,"lOT VEREriTlMOF POUCY CQNDITIONS, LIMITATIONS OR I.AN(iUAGF.; 71fE. POl.fC!'(s) RE:PIll!.S';,Y1'.'.D
BY TIllS CERTJJ-'ICA'ft: ARf.: NOT AMFfNDf:D IS tiNY WA r UNl.ESS SO STA TED ON TH!S CER7iJ~JCAn:.
ADDITIONAL AGREEMENTS:
Additional Insured
Monroe County Board ofCouncy Commissioners its employees & ofricials is included:lS :lon
Additional Insured for Liability Coverages. but solely with respect to operacion:s of the Named
Insured. subject 10 all policy terms a.ntI conditions.
:~~R~EMENT
DATE 9= O~
WAIVER N/A ~ YES
~~:~
~~(nt[)1k,
NOTICI! OF CANCI!I:.~:tI'p~: rN THE EVENT OF MATERIAL CIJ,\NGIl Ok C~'NCcrT.L^TION OF SAID I'(jUCY(5), Till; COMr'ANYtS) SHAll. G~DI;"'''Of<
10 GIVE JO 01\"5 WRlTT'f.N !'IoneF. TO THF. CER1'rFICATF. HOWER WITH THE GXCEI'TION QF ^ Ie OI\Y NOTICE FOR "iON.PA YMf'.NH)r I'R!'.MIlI~
AviaTion [nsur;mce Agency, Inc.
90 I S,W. Martin Downs 8oulev;1.rd
P.O, Box 2260. Palm City, FL 34991 ~~ ~
www.avnins.com i
T ~ !cphone (772) 286~626 - rncsim ile (772) 286-1108
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CERTIF'lCA TE OF INSURANCE
CERTIFICATE DATE: 04!09!20C1 CERTIFICATE NUl\-'mER: 02-02WC
CERTIFICATE HOLDER: !POLICYHOLDER:
Monroe County Board ofCoumy Commissio!l\:rs Gran(air S~r'/ice. Inc:.
its employees & officillb 8800 O"cr~c:JS Highw:\y
51DO College Roatl Marilthon. FL 33050
Key West, FL 3.3040
rhis il 10 ecniiY that the followin!; poli.;y(s). .uhject to Ill': 1~'I"lT'.~. ~ondiliMS.limilalinn$ and Ctluur.;"mcnt.~ <;:o'11nincu therein. and durin1t thelt CffcC;IIYC periou, hu,.~ b~cn
issued hy the eompally(,) indl~lcd bdow. III tll.: Ovcnt of mntcrinl change or ';'1I1';cll;uion of l.,id pol icl'(~). the compnny will cnd~\'OI 10 noli l)r the; "'IlrtiJi"ntc 'lol<kr, bUI
(.1l1ule [0 do sn ,hKII impose no ""blllty 0.' "bli:;CII(l'l of ~y kind Up(ln the ll,nUcrsir,ncd 0.:_11\l: Ct')f\lll:JJly(5) lnvo'::.cd.
Policy Type:
Insurance Company:
?[)Ii<:y Nirmbcr: .
PGli"'Y Period:
WORKCOMP
Employers In~uronce ofWausiJu
Unas!;igned
AprlllO, 2002 to April 10.200.1
"~_._-.....-
EMPLOYER'S LI,\B1LlTY . Sf BY ACCIDENT
EMPLOYERS L1ABH.ITY - af BY DISEASE
$1 ,000.000 E.1~h Acc;:ident
$1,000.000 EJch Employee f:S l.000.000 Policy Limit
THE FQkE.COIN(j C;VIDENCE OF CO~'ER:lCr: IS NOT VERlJA TIM 0'" rOLlCY CONDITIOJVS, L!.A.-ilT..rTIONS OR LvINCU"GE; TII"~ f'IXICY(S) 1~{,PItES[.v'rW
BY THfS C},RT/FIC"j TE ARJ-; NOr tI.'vfENDP.D (lY "tNY W A l' (''.V/,,~'~:') SO ST.~ TED O~ rrtrs CERrwl('..1 rE.
ADDITIONAL AGREEMENTS:
INANE F\
N/A _:::::::\'1;$
,00f1C~
'C(. i-Ji
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~:;;:~€(~(( bz:4::
NOTICE OF CAHCELL.ATION: IN TI-IF. eVEN1' OF M.\TF.RIAL CILo\N(.JE OR CANCr:U,,\TION 01' S.\ID J'OlICY(S). THt; CDMPANYC$; SHALL l].;OJ;,1VOtt
70GIV!;.}~wiimr.l'i NOTICE TQTHl; CCRTIFICAIT: HOU)~R Wl'IHTHP. F.XCfJ'TION Or ^ 10 D^Y NOTICE FOR, NON-i>AYMF.NTQF PRI~MIUM
Aviation ln$urance Agel1~, Inc,
90 [ S. W - M:utin Downs Boulevard
P.O. Box 2260
Palm City. FL 34991
Tekphonc (j61) 286-0626 - F:Jc~imile (~61) 286.1103
7~
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lhorir.ed ~ienutulI:
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po T .J go LI _ ..... T ..... 'T ~ rr
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MARATHON FIXED BASE OPERATOR (FaGI AGREEMENT
This Agreement is made and entered by Monroe County. a political subdivision of the State of
Florida. . whose address is Marathon .A.irport. 9400 Ove~eos Highway. Marathon Rorida 33050
(hereafter County}. and GRANTAIR Service. Inc_. a corporation. whose address is 8800 Overseas
Highway. Marathon. Florida 33050 (hereafter FBD).
WHEREAS. the County owns the Marathon Airport located in Marathon. Florida: and
WHEREAS. the F80 is a corporation in the business of providing commercial full service fixed
based operations: and
WHEREAS. the County is desirous of having the FBD provide such services at the Marathon
Airport:
NDW. THEREFORE. the FBO and the County agree as follows:
1) The County leases to the FBD the real property shown on Exhibit A including the hangar
building. ramp. and tied owns. hereafter collectively referred to as the premises. Exhibit A is attached
to and incorporated into this Agreement. Except as specifically provided in this Agreement. no
buildings. structures. or other improvements to real property may be added to the premises by the
FBD during the term(s) of this Agreement without a separate agreement concerning the same with
the County.
21 The County sells and conveys title to the FBD those items of pe~onal property listed in
Exhibit B. The County warrants to the FBD that the property listed in Exhibit 8 is free and clear of the
liens or other encumbrances of any third parties. ~hibit B is attached to and incorporated in this
Agreement. The County will indemnify and hold harmless the FSG from any claims of third parties to
the personal property listed in Exhibit 8. The County will reimburse the FBD for any damages and
expense incurred in the defense of any third party claim to such pe~onal property. including
reasonable attorneys' fees and expenses.
31 aj As an inducement for the County to enter into this Agreement. and as the
purchase price for the personal property listed in Exhibit 8. the FBG must pay to the County
$150.000 prior to occupancy of the premises. The FBD ma~' not occupy the premises until the
payment is made. although the term begins to run on the effective dete of this Agreement.-
bJ The FBD must pay monthly rent for the premises. on an arrears basis. in the
amount of $1.700 per month. The initial rent payment is due on the effective dote at this
Agreement and on the first of each month thereafter.
cJ Starting on the date that the FBD begins the sate of fuel. the FaD must pay the
County a 4 cents per gallon flowage fee for each gallon sold By the tenth of each month
the FaD must truthfully and accurately report to the County the number of gallons sold and
pay the County the fee due based on that number. The County's Marathon Airport
Manager. or his designee. must be allowed to inspect the FaD's records concerning fuel sales
to make sure the flowage fees paid accurately reflect the number of gallons sold. The
inspection(sJ may onl~' be during regular business hours (9:00 AM - 5;00 PM. Monday through
Friday. excluding hOlidaysJ.
d) The rent will be adjusted annually on the anniversary of the effective date of this
Agreement by the amount recommended in an approved rates and charges study or by an
amount refrecting the percentage in increase in the cpr during the year prior to the
anniversary date.
e) All payments owed by the FBO to the County that remain unpaid for more than
30 days will begin to accrue interest at a rate calculated from the original due date until the
date the County actuatly receives the money. The interest rate is the one established by the
Comptroller of the State of Rorida under sec. 55.03. F.S.. for the yeer in which the payment
became overdue. The right of the County to claim interest-and the obligation of the FBO to
pay it-are in addition to. and not in lieu of. any other rights and remedies the County may
have under this Agreement or that are provided by law.
fJ The FBD pledges and assigns to the County, the fixtures. goods. and chattels of
the FBO that are brought or placed on the premises as additional security for the payment of
the rent. The FBO agrees that a lien against the fixtures. goods. and chattels. may be
enforced by distress foreclosure or otherwise at the election of the County, and the FBG
agrees to pay all costs and charges County incurred by the County in an enforcement
action.
4) The term of this Agreement is 20 years beginning on the effective date.
51 The FBO must pay all taxes and assessments. induding any sales or use fax. imposed or
levied by any governmental agency with respect to the FBO's operations authorized at the
Marathon Airport operations under this Agreement.
6) The FBO must obtain. in its own name. and pay for. all utility services at the premises
including sofid waste removal.
71 aj FBa has the right during the term(s) of this Agreement to maintain a fIXed base
operation and has the right to sell aircraft and aircraft engines. parts and accessories. leese
aircraft storage space. operate pilot training service. provide aircraft maintenance and
repair service. aircraft rental and charter flying service. and any other aeronautical service
normall~' furnished by a fixed base operator. The FBG has the right to sell aviation gasoline
and lubricants and to provide aeronautical services that are compatible with other activities
on the airport. The FBa is also entitled to receive tie<lown fees from aircraft parked only in
the paved ramp area located within the premise's boundaries as described in Exhibit A. The
FBa specifically waives any and all right to tie-down fees or any uses whatsoever of properties
at the Marathon Airport located outside of the above-described premises. The FBO must
refrain from either directly or indirectly being involved in any car rentals or other services that
are not related specifically to fixed base aircraft operations.
b) The County's permission is not reqtJired for the repair. renovation or rehabilitation of
improvements depicted on Exhibit A or for the fuel form authorized by paragraph 8.
8) aj The FBa acknowledges and agrees that he has examined the premises. and is fully
advised of their condition and location. and the limitations and restrictions placed on any
building. structure or other object as to height. due to the proximity of the landing and
takeoff areas of the Marathon Airport. The County warrants that all existing structures are in
compliance with the height restrictions in effect on the effective date of this Agreement. If
any such structures are not in compliance, the county will correct the same at its cost and
expense. The FBG agrees to abide by and observe all such restrictions and limitations.
including the County fIXed base operator minimum standards attached and incorpora~ed-as
Exhibit C. and agrees that the observance of such limitations and restrictions__ whether
imposed by the County. state or federal governmental authority will not in anywise affect the
FBG's obligations under this lease. The FBD must also comply with all laws. statutes. regulations
and rules of the federal or state governments. and any plans or programs developed by or
funded by either government. that affect the FBO's operations or its use of the premises. The
FBG's obligotion to obey federal and state laws. statutes. regulations and rules. any federal or
state airport plan or airport program criteria or the criteria of a plan or program funded b','
the state of federal government. includes not only those in existence on the effective date of
this Agreement. but.those adopted after that dcte.
bj U'le'FBO must construct. a fuel farT!'1 on !f:'1e.p'rem,i~~ y.tjtf'!intwo ~'eors ofth,e. d~~_?f :'
occupancy! Until the construction is complete. and until all governmental entities with
permitting jurisdiction over the fuel farm have authorized the operation of the farm. the FBG
may sell fuel from fuel trucks on premises to the extent permitted by the Airport minimum .
standards. The FSO is permitted to finance the construction of the fuet farm. However. during
the period of financing the fuel farm is deemed by the parties to be a removable trade
fixture and no lien may be placed by the seifer upon County airport property. This restriction
does not prohibit the filing of a UCC-I financing statement for the purposes of the seller
securing a lien against the fuel farm itself during the financing period. Upon the payment of
all financing upon the fuel farm. the fuel farm becomes a permanent improvement to real
property which will remain upon the premises a1 the expiration of this Agreement.
cJ With the exception that the FBD construct a fuel farm as provided for in
subparagraph 8(b). Ihe FBO is not. required to construct any new facilities upon the premises.
The minimum investment requirements for the providers of aeronautical services set forth in
the Airport Minimum Standards is deemed to be satisfied in full by the payments provided for
under the terms of this Agreement.
dj The FBO must pay any penalty, assessment or fine of the federal or state
govemment imposed on the County that arises out of. or is attributable to. the feG's
operations at the Marathon Airport. The FBD must also defend in the name of the. County
any claim. assessment or civil action that is initiated by the federal or state government
against the County that is based in whole or in part on a claim that any aspect of the FBO's
operations at the Marathon Airport violated a law. statute. rule. regulation, or program or
project criteria.
9) The County is responsible for remedying the environmental contamination described in
Exhibit D. The FSD agrees to admit County employees or contractors to the premises at reasonable
times for the purpose of remedying contamination. Otherwise, the FSO accepts the premises in the
condition that they .are in at the beginning of this agreement. The FaD must keep the premises in
good order and condition. The FSO must promptly repair any damage to the premises and is
responsible for remedying any environmental contamination caused by the FBO's operations at the
premises. At the end of the term(s) of this Agreement. the FSG must peacefully surrender the premises
to the County in good order and condition. normal wear and tear excepted. If no rent or fees are
due the County, at the end of the term(s} of this Agreement the FSD may also remove its personal
property from the premises and may remove any trade fixtures provided that the FSO restores the
premises to their original condition. If during the term of this Agreement the FSO fails to keep the
premises in the good repair and free from environmental contamination as required by this
subparagraph. the County may, after providing the FBD with a written warning and a fifteen day
opportunity to correct the deficiency, enter the premises and do whatever repair or clean up work
the County's Marathon Airport Manager deems appropriate. The cost of the work plus 10% will be
added to the FSG's rent for the month following the repair or clean-up.
101 The FSD is liabte for and must fully defend. release. discharge. indemnify and hold
harmless the County, the members of the County Commission. County officers and employees. and
County agents and contractors. from and against any and all claims. demands. causes of action.
losses. costs and expenses of whatever type - inclUding investigation and witness costs and expenses
and attorneys' fees and costs - that arise out of or are attributable to the FSD's operations at the
Marathon Airport. excluding those claims. demands. damages. liabilities. actions. causes of action.
losses. costs and expenses that are the result of the sole negligence of the County or other Airport
tenant of the County. The FBa's purchase of the insurance required in paragraph J2 and Exhibit D
does not release or vitiate the FBa's obligations under this paragraph.
J 1 J It is understood and agreed that nothing contained in this Agreement may be construed
to grant or authorize the granting of an exclusive right within the meaning of the Federal eviation Act
or its successor and that the County may enter into agreements with other fIXed base operators as
long as such agreements are not on more favorable terms than this Agreement.
12' aJ Regardless of the effective date of this Agreement. before the FBD may occup~'
the premises it must obtain insurance in the amounts. terms and conditions described in
Exhibit E. Exhibit E iS,attached and made a pert of this Agreement.
bJ The FBa must keep in full force and effect the insurance described in Exhibit E
during the termisJ of this Agreement. The FBG is not required to purchase windstorm or flood
insurance for any structure on the premises. If the insurance policies originally purchased
which meet the requirements of E;'(hibit E are canceled. terminated or reduced in coverage.
then the FBD must immediately substitute complying policies so that no gap in coverage
occurs.
cJ The insurance required of the FBD in this paragraph is for the protection of the
County, its property and employees. and the general public. The insurance requirement is
not. however. for the protection of any specific member of the general public who might be
injured because of an act or omission of the FBG. The insurance requirements of Ihis
paragraph do not make any specific injured member of the general public a third party
beneficiary under this Agreement. Therefore. any failure by the County to enforce this
paragraph. or evict the FBa from the Marathon Airport if the FBD becomes uninsured or
underinsured. is not the breech of any duty or obligation owed to any specific member of the
general pUblic and cannot form the basis of any County liability to a specific member of the
general pUblic or his/her dependents, or estate or heirs.
131 The FBO may not cause. suffer or permit any lien. mortgage. security interest. financing
statement or other encumbrance to be placed on any real property. fixture or improvement tc? seal
property owned by the County and leased to the FBD under this Agreement. If any of the
encumbrances just described are filed or perfected against any such property of the County, or to
property that will belong to the County upon termination. then the FBD must promptly cause the
discharge. release or otherwise clear and remove such encumbrances from that property.
14J al The County must keep the Marathon Airport runway, taxiway, and the area
immediately adjacent to the runway and taxiway, in good repair and deer of obstructions
and debris. The County must maintain and operate the Marathon Airport according to the
highest standards or ratings issued by the FAA for airports similar in size and character to the
Marathon Airport. The County must also comply with the rules and regulations of any other
government agency that has. or may have. jurisdiction over the Marathon Airport.
bl The County will provide. and maintain in an existing state of good repair. ingress
and egress to the premises for FBD employees. customers. guests. and suppliers.
15J The FBD for himself. his personal representatives. successors jn. interest. and assigns. as a
part of the consideration hereof. does hereby covenant and agree that
al No person on the grounds of race. color. or national origin shall be excluded from
participation in. denied the benefits cr. or be otherwise subjected 10 discrimination in the use
of said facilities.
bl That in the construction of any improvements on. over or under such land and the
furnishing or services thereon, no person on the grounds of race. color, or national origin shall
be excluded from participation in. denied the benefits of. or be otherwise subjected to
discrimination.
cl That the FBD shall use the premises in compliance with all other requirements
impOSed by or pursuant to Title 49. Code of Federal Regulations,. Department of
Transportation. Subtitle A. Office of the Secretary, Part 21. Nondiscrimination in FederaHy-
assisted programs of the Department of Transportation - Effectuation of Title VI of the Civil
Rights Act of 1964. and as said Regulations may be amended. That in the event of breach
of any of the above nondiscrimination covenants. the County shall have the right fc
terminate the lease and to re-enter and as if said lease had never been made or iSSUed. The
provisions shall not be effective until the procedures of Title 49. Code of Federal Regulations.
f;'art 2 J ore followed and completed including exercise or expiration of appeal rights.
J 6} It shall be a condition of this lease. that the County reserves unto itself. jts successors
and assigns. for the use and benefit of the public. a right of flight for the passage of aircraft in the
ai~pace above the surface of the real property hereinafter described. together with the right to
cause in said airspace such noise as may be inherent in the operation of aircraft. now known or
hereafter used. for navigation of or ffight in the said airspace. and for use of said ai~pace for landing
on. taking off from or operating on the airport. That the FBD expressly agrees for itself. its successors
and.assign. to restrict the height of structures. objects of natural growth and other obstructions on the
hereinafter described real property to such a height so as to comply with Federal Aviation
Regulations Part 77. That the FBO expressly agrees for itself. jts successors and assigns. to prevent any
use of the hereinafter described real property which would interfere with or adversely affect the
operation or maintenance of the airport. or otherwise constitute an airport hazard.
17} This fiXed Base Operator Agreement and all provisions hereof are subject and
subordinate to the terms and conditions of the instruments and documents under which the County
acquired the subject property from the USA and shalf be given only such effect as will not conflict or
be inconsistent with the terms and conditions contained in the lease of said lands from the County
and any existing or subsequent amendments thereto.
J 8) . If funds are not provided by the United Slates for the operation of a Marathon Airport
control tower. navigation aids or other facilities that may be needed by the FBO for service at the
Airport. the County is under no obligation to provide those facilities or services.
19) al The County may treat the FBO in default and terminate this Agreement if the FBO
fails to timely submit the payments required of it under paragraph 3. Before the County may
terminate the Agreement under this subparagraph, the County must give the FBD written
notice of the default stating that. if the default is not cured within J 5 days of the FBD's receipt
of the written notice. then the County will ferminate this Agreement.
bl The County may treat the FBD in default and terminate this Agreement if the FSa
does not begin fixed base operator service and have the insurance required by Exhi~it. E
within 30 days of the effective date of this Agreement. Before the County may terminate the
Agreement under this subparagraph. the County must give the FBD a written notice of the
default stating that. if operations do not commence and the required insurance is not
obtained within 15 days of the FBD's receipt ot the notice. then the County will terminate this
Agreement.
cJ The County may treat the FBD in default and terminate this Agreement if the FBD.
after starting fixed base operator service at the Marathon Airport. fails to keep in full force
and effect the insurance required by paragraph 12 and Emibit E Before treating the FBO in
default and . terminating the Agreement under this sUbparagraph. the County need only
provide the FBD 48 hour notice by FAX or overnight courier. The County may, but need not.
provide the FBD with an opportunity to cure the default.
dl The termination of this Agreement under subparagraphs J9(aJ-(cl does not relieve
the FSD from an obligation to pay whatever damage the County suffered because of the
FBO's default.
eJ The County may also treat the FSD in default and terminate this Agreement if the
FBO fails to comply with its other obligations under this Agreement (the obligations besides the
payment of rents and fees when due. and the purchase of insurance and keeping it in
effect.' Before the County may terminate the Agreement under this subparagraph. the
County must give the FSD a wriHen notice at the default stating that, if the default is not
cured within 15 days of the FSD's receipt of the written notice. then the County will terminate
this Agreement. Termination under this subparagraph does not relieve the FBD from an
obligation to pay the County whatever damages the County suffered because of the FBD's
default.
fl Despite the FBD timely cure of its acts of default or the County's waiver of acts of
default. if the FBD commits a material breach three times or more in performing its obligations
under this Agreement during a calendar year. then the County may . in its discretion.
determine that the FBO is a habitual violator. When the County makes that determination. it
must notify the FBO in writing. The notice must explain why the FBD was determined to Qe a
habitual violator and that any future act of default will be noncurcble will not be waived.
and will be the basis for the immediate termination of this Agreement. If a subsequent default
occurs. the County may terminate this Agreement by giving the FBD 15 days written notice.
The FBD must pay the County whatever rent and fees ere due as of the date of termination.
The FBD will then have no further rights under this Agreement. Termination under this
subparagraph does not relieve the FBO from an obligation to pay the County any damage
suffered because of the FBO's final act of default.
20) The FBO may terminate this Agreement in its discretion - if it is not in default in paying
the rents and fees owed to the County - by giving the County 15 days written notice. upon the
occurrence of any of the following events:
oj The issuance by any court of competent jurisdiction of an injunction in any way
preventing or restraining the use of the Marathon Airport. or any part of the Airport. for a
period of at least 90 days.
bJ The lawful assumption by the United States of the operation. control or use of the
Marathon Airport. or any part of the Airport. in a way that prevents the FBO from operating its
fixed base operation for a period of at least 90 days.
c) The inability of the FBO to use the Merathon Airport for at least 90 days because of
fire. explosion. earthquake. hurricane. other casualty. or acts of God or the public enemy.
dJ The FAA's failure to grant the FBO the license(s) necessary to operate its service.
e) A dispute maintained in good faith by the County with another governmental
agency other governmental agencies that make it difficult or impossible for the Marathon
Airport to be operated safely for a period of at least 90 days.
f} The FBO hangar is destroyed and the County has not begun a good faith effort to
begin the repair or reconstruction of the hang or within 60 days of the date of destruction.
The grounds for the FBD's termination of this Agreement as stated in subparagraphs 2O(a, _ (fJ
create no basis for any County liability to the FBO and cannot serve to create any obligation on Jr,e
part of the County to pay money to the FBD.
21) The FBD may terminate this Agreement and treat the County in default if the County
fails to perform its obligations under this Agreement and the failure is not due to the reasons
described in subparagraph 20(a)-(e). Before the FBD may terminate the Agreement under this
paragraph. the FBD must give the County a written notice of the default stating that. if the default is
not cured within J 5 days of the FBD's written notice. then the FBD will terminate this Agreement.
Termination under this paragraph does not relieve the County from an obligation to pay the FBO
whatever damages the FBD suffered because of the County's default.
22) The waiver t:?y the FBD or the County of an act or omission that constitutes a default of
an obligation under this Agreement does not waive another default of that or any other obligation.
23) The FBD may not assign this Agreement or assign or subcontract any of its obligations
under this Agreement without the approval of the County's Board of County Commissioners. which
consent may not be unreasonably withheld.
24) All the obtigations of this Agreement will extend to and bind the legal representatives.
successors and assigns of the FBD and the County.
25) During the ferm of this Agreement. the FBO. must have and maintain a registered
agent as required by Chap. 620. F.S.. and keep the County informed of the agent's name. title and
address.
26) This Agreement is governed by the laws of the State of Ronda and the United States.
Venue for any dispute arising under this Agreement must be in Monroe County.FL In the event of any
litigation. the prevailing party is entitled to a reasonable fair market value attomey fees and costs.
27) This Agreement has been carefully reviewed by the FBO and the County. Therefore.
this Agreement is not to be construed against any pany on the basis of authorship.
28) Notices to the County provided for in this Agreement. unless otherwise specified.
must be sent by certified mail to:
Marathon Airporl Manager
9400 Overseas Highway
Marathon. Fl33050
Notices to the FBG provided tor in this Agreement, unless otherwise specified, must be sent by
certified mail to:
GRANTAIR Service. Inc.
asoo Overseas Highway
Marathon. Rorida 33050
29) This Agreement is the parties' r.nel mutuel undeBlonding, II reploces any earlier
agreements or understandings, whether written or orat, This Agreement cannot be modified or
replaced except by another written and signed agreement.
,
3D} This Agreement will take effect on April 10. 1998.
.. '._0--""
. ',,-
. INJ-yITNESS WHEREOF. each parly has caused this Agreement to I::~ executed by its dUiy
, .
r ~ authorized 'r~presentative.
l. .!: ~
;, '\... ....
\:,:,,, (SEAL) i
"~ATTEST; DANNY L KOLHAGE. CLERK
By-e"'Q~;t;o~ I
De~ a
By
Title
By
Title
ATTEST:
jairigronfair