Item C18
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: March 19. 2003
Division: Public Safety
Bulk Item: Yes--X-
No
Department: Marathon Airport
AGENDA ITEM WORDING: Approval of Lease Agreement with FEDEX Ground Package
System, Inc., for use of ramp space at Florida Keys Marathon Airport, for a period of24 months,
commencing April 1, 2003 and ending March 31, 2005
ITEM BACKGROUND: FEDEX Ground Package System, Inc. presently leases 5,000 square feet
of ramp space at the Florida Keys Marathon Airport. The current lease ends on March 31, 2003. The
attached Lease Agreement is for an additional 24 month period, commencing April 1, 2003 and ending
March 31, 2005.
PREVIOUS RELEVANT BOCC ACTION: At their meeting on March 21,2001, the Board
granted approval to lease ground space at Marathon Airport to FEDEX Ground Service for transfer and
sorting of cargo, contingent upon a Lease being approved by the County Attorney.
CONTRACT/AGREEMENT CHANGES: This is the same as the current Lease Agreement, but
extends the term for an additional 24 month period, commencing April 1, 2003, and increases the lease
amount by the CPI-U
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: $ 0.00
BUDGETED: Yes
No
N/A
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes...x No
AMOUNT PER MONTH $516.12 YEAR$6.193.44
DMSION DIRECTOR APPROVAL:
ent YES
APPROVED BY: County Atty. YES OMB/Pur
DOCUMENTATION: Included X
To Follow
Not Required_
AGENDA ITEM #
ell
DISPOSITION:
MONROE COUNTY BOARD OF COUNTY COMMISSI01\"ERS
CONTRACT SUMMARY
Contract #
Contract with: FEDEX Ground Package Effective Date: April!. 2003
System. Inc. Expiration Date: March 31, 2005
Contract PurposelDescription: Lease Agreement with FEDEX Ground for ramp space
measurin~ 5.000 sq. ft. at Florida Keys Marathon Airport
Contract Manager: James "Reggie" Paros
(N ame)
6002
(Ext.)
Public Safety I Stoo 14
(Department)
for BOCC meeting on 3/19/03
A~cnda Deadline: 3/5103
CONTRACT COSTS
Total Dollar Value of Contract: $+6,193.44 (Rev) Current Year Portion: $3.096.72 (Revenue)
Budgeted? YesO No 0 Account Codes: -_-_-_
Grant: $_ _-_-_-_-_
County Match: $_ _-_-_-_-_
- - - -
-----
ADDITIONAL COSTS
Estimated Ongoing Costs: $_/}T For:_
<Not included in dollar value Olbove) (eg. maintenance. utilitiell. janitorial, salaries, etc.)
CONTRACT REVIEW
Changes
7~In Needed
Division Director -:S~~.3 YesD No
Risk Management & YesDNo~
O.M.B./Purchasing #:?:> y esD No~
County Attorney # YesD N~
Comments:_
Date Out
~
3/'{
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3-S"'o'5
OMB Form Revi.sed 9/11/95 MCP #2
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9tSC?:S?:S0C'Qr 3~rddO ^~~\:t ^~NnO~ 30~NOW'WO~d S8'S0 E0-S0-~\:tW
LEASE AGREEMENT MARATHON AIRPORT
FedEx Ground Package System
THIS CONTRACT OF LEASE is made anq entered into on the day of
, 2003, by and between MONROE COUNTY, a political subdivision of the
State of Florida, whose address is 9400 Overseas Highway, Marathon, FL 33050,
hereinafter referred to as "COUNTY" and FEDEX GROUND PACKAGE SYSTEM, INC., whose
address is 1000 FedEx Drive, Moon Township, PA 15108, hereinafter referred to as
"FED EX. "
WHEREAS, COUNTY owns an airport known as the Marathon Airport, located in
Marathon, Monroe County, Florida, hereinafter referred to as "Airport," and
WHEREAS, FEDEX is engaged in the business of transportation of small packages,
cargo and other property, and
WHEREAS, FEDEX desires to obtain certain rights, services and privileges in
connection with the use of the Airport facilities, and the COUNTY is willing to grant and
lease the same to FEDEX on an exclusive basis for the premises leased, upon the terms and
conditions hereinafter stated; now, therefore
IN CONSIDERATION of the premises and of the mutual covenants and agreements
herein contained, and other valuable considerations, COUNTY does hereby grant and lease
unto FEDEX, and FEDEX does hereby lease from COUNTY, certain premises, facilities,
rights, and privileges in connection with and on the Airport, as follows, to wit:
1. PREMISES COUNTY does hereby lease to FEDEX, and FEDEX leases from the
COUNTY, the ramp space presently located at the Airport, measuring 5,000 square feet, as
indicated on the drawing labeled as Exhibit "A" attached hereto and made a part hereof
upon which FEDEX may place a trailer dock and/or an office trailer or a combination of
both.
2. USE OF THE AIRPORT FEDEX shall be entitled to use, in common with others
authorized to do so, the airport facilities and appurtenances, together with all equipment,
improvements, and services which have been or may hereafter be proVided at or in
connection with the Airport for common use, in the operation of a business for the
transportation of small packages, cargo and other property.
3. TERM The term of this lease is 24 months, commencing April 1, 2003 and
may be terminated by FEDEX without cause upon thirty (30) days prior written notice.
4. RENTALS AND FEES During the term of this lease, FEDEX shall pay to the
COUNTY, rent as follows: the amount of $516.12 per month for the area of five thousand
(5,000) square feet, plus applicable sales tax.
Rental rates are subject to revision each year, effective April 1, in accordance with
the airport standard rates and charges, or in accordance with the percentage change in the
Consumer Price Index for all urban consumers (CPI-U) for the most recent 12 months
available.
Rent shall be paid in equal installments, each of which shall be due and payable on
or before the first day of each calendar month during which this lease is in effect. Upon the
failure of FEDEX to pay any installments when due, or within any grace period provided in
Section 12, the COUNTY will be entitled to charge and collect, and FEDEX will be obligated
to pay, a late fee of two percent (2%) of any such amount, if paid within thirty (30) days of
the date due, and five percent (5%) of any such amount, not paid within thirty (30) days of
the date due. Such late fees will be in addition to the amount of rent due. The acceptance
by the COUNTY of the overdue rental installment plus applicable late fees shall cure what
would otherwise constitute a default by FEDEX under the terms of this lease. The COUNTY,
at its option, however, may refuse a proffered overdue rental installment and late fees,
declare a default, and proceed according to paragraph 12 of this lease. If any check, draft,
or negotiable instrument by which FEDEX has tendered any rent payment is returned to the
COUNTY and not honored, then the COUNTY may collect, in addition to any applicable late
payment fees as provided above, a fee of Twenty-five Dollars ($25.00) for such dishonored
instrument. Such penalty fee shall also be in addition to the amount of rent due. The
acceptance by the COUNTY of the rental payment plus any applicable late fee and penalties
following the receipt of a dishonored instrument shall cure what would otherwise constitute
a default under the terms of this lease. The COUNTY, at its option, however, may refuse
any proffered rental installment and applicable late fees and penalties, declare a default,
and proceed according to paragraph 12 of this lease.
5. LEASEHOLD IMPROVEMENTS AND USE FEDEX shall have the right to occupy
and use five thousand (5,000) square feet of concrete ramp space and install the items
referred to in Section 1.
6. COMMON AREAS FEDEX shall have the right to use, in common with others,
the Airport space and facilities (including, without limitation, restroom facilities) to conduct
its cargo business, subject to reasonable rules and regulations of COUNTY as to the use of
such common spaces and facilities.
7. RIGHT OF INGRESS AND EGRESS FEDEX, its agents, employees, customers,
suppliers, and patrons shall have the right of ingress and egress to and from the leased
premises, which shall not be unreasonably restricted by COUNTY.
8. UTILITIES FEDEX shall be responsible for the payment of electrical service,
water service, trash and septic tank servicing and similar utility services, in each case, to
the trailer dock and/or office dock, as needed.
9. ASSIGNMENT The premises leased hereunder may not be sublet and this
lease may not be assigned without the written consent of the COUNTY, not to be
unreasonably withheld. FEDEX may sublet or assign this lease to any subSidiary of FEDEX
Corporation.
10. MAINTENANCE OF PREMISES FEDEX shall be responsible for and shall properly
maintain the leased premises, and upon the termination of this lease, shall leave the
premises in at least as good condition as at the time of the commencement of this lease,
normal use and occupancy excepted. FEDEX shall also be responsible for, and shall
properly maintain, the security fences and gates surrounding the leased premises (if any)
and for any construction work performed to or on the premises leased hereunder.
11. INDEMNIFICATION/HOLD HARMLESS
a. FEDEX agrees to indemnify and save COUNTY harmless from and against all
claims and actions and expenses incidental thereto, arising out of damages or the cost of
defending claims for damages resulting from the negligence of FEDEX, its agents, or
employees in the use or occupancy of the leased premises and the common areas of the
Airport facilities by FEDEX. However, FEDEX shall not be liable for any claims, actions or
expenses resulting from the COUNTY's negligence. The extent of liability is in no way
limited to, reduced, or lessened by the insurance requirements contained elsewhere within
this agreement.
b. Prior to FEDEX taking possession of the property owned by the COUNTY,
FEDEX shall obtain, at its own expense, insurance as specified in the attached schedules,
which are made a part of this lease agreement.
FEDEX will not be permitted to occupy or use the lease property until satisfactory
evidence of the required insurance has been furnished to the COUNTY as specified below.
FEDEX shall maintain the required insurance, throughout the entire term of this lease
agreement, and any extensions, as specified in the attached schedules. Failure to comply
with this provision may result in the immediate termination of the lease agreement and the
return of all property owned by the COUNTY. FEDEX shall provide to the COUNTY as
satisfactory evidence of the required insurance a Certificate of Insurance-.
All insurance policies must specify that they are not subject to cancellation, non-
renewal, material change, or reduction in coverage unless a minimum of thirty (30) days
prior notification is given to the COUNTY by the insurer. The acceptance and/or approval of
the FEDEX's insurance shall not be construed as relieving the FEDEX from any liability or
obligation assumed under this contract or imposed by law. The Monroe County Board of
County Commissioners will be included as "Additional Insured" on all policies. FEDEX shall
carry its insurance with Insurance companies authorized to do business in the State of
Florida.
Any deviations from these General Insurance Requirements must be requested in
writing on the COUNTY prepared form entitled "Request for Waiver of Insurance
Requirements" and be approved by Monroe County Risk Management.
12. DEFAULT Unless the COUNTY has accepted a rental installment after it has
become due together with any applicable late payments and penalties, the failure to pay
rental installments when due (or within 5 days of written notice for the first two
delinquencies each year) shall constitute a default under the terms of this lease. The
failure to pay any other charges or fees when due under this lease shall constitute a
default. Further, the failure of FEDEX to perform any other of the covenants of this lease,
which failure shall continue for a period of thirty (30) days after notice thereof is given to
FEDEX in writing by the COUNTY, shall also constitute a default under the terms of this
lease. In the event of a default, COUNTY may, at its option, declare the lease forfeited and
may immediately re-enter and take possession of the leased premises and this lease shall
terminate. If it shall be necessary to employ the services of an attorney in order to enforce
its right under this paragraph, or to collect any of its rentals, fees, or charges due, COUNTY
shall be entitled to reasonable attorney's fees. Waiver of a default in any particular month
shall not bind the COUNTY to forego the provisions of this paragraph and any subsequent
default shall be grounds for termination.
13. VENUE for any litigation artSlng under this lease must be in a court of
competent jurisdiction in Monroe County, Florida.
14. FAA REQUIREMENTS The parties shall comply with FAA Required Lease
Clauses, which are listed in Exhibit "B," attached hereto and made a part hereof.
15. ETHICS C~USE Contractor warrants that he/it has not employed, retained or
otherwise had act on his/its behalf any former County officer or employee in violation of
Section 2 of Ordinance No. 10-1990 or any Cou'nty officer or employee in violation of
Section 3 of Ordinance 10-1990. For breach or violation of this provision the County may,
in its discretion, terminate this contract without liability and may also, in its discretion,
deduct from the contract or purchase price, or otherwise recover, the full amount of any
fee, commission, percentage, gift, or consideration paid to the former County officer or
employee.
16. PUBLIC ENTITY CRIME STATEMENT A person or affiliate who has been placed
on the convicted vendor list following a conviction for public entity crime may not submit a
bid on a contract to provide any goods or services to a public entity, may not submit a bid
on a contract with a public entity for the construction or repair of a public building or public
work, may not submit bids on leases of real property to public entity, may not be awarded
or perform work as a contractor, supplier, subcontractor, or consultant under a contract
with any public entity, and may not transact business with any public entity in excess of the
threshold amount provided in Section 287.017, for CATEGORY TWO for a period of 36
months from the date of being placed on the convicted vendor list
17. Notwithstanding anything that may appear elsewhere in this lease, the
COUNTY reserves the right to grant similar leases at the Marathon Airport to other
transportation companies on a space available basis.
IN WITNESS WHEREOF, the parties have caused this lease to be executed the day
and year first written above.
(SEAL)
ATTEST: DANNY L. KOlHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/Chairman
FEDEX GROUND PACKAGE SYSTEM, INC.
By
Witness
Title
Witness
JairMAPfedexg rou nCl03
II
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OEe 23 1993
AIRPORTS J OMB
ru RIQUJ:1lIlD Lasl CU178.
1. Thi. lease shall De :Iubject to review and re-evaluation
at the end or each ____ year period. by the airport
nwnAr and the rent mllY be adj usteci accordinq to their
action, not tn axc..d the Ccnsuaar Price Index rata
durin9 th. last ____ 'month period. or;
Land 1... i.~Ov.Dl.nt:~a will hI! IIppra18ad every 5 year.
and the ~djuct.d rent:.'l will be ba.~d on narmally 10-12
percent: ot appzo..ised l"&lue.. If <Ualputod., l...or
o))t:Ginc; .pp%"~i.aal at bie expenae an4 1...or/l.....
equAlly ahdre .xpen~.: for review .ppraical ~t
..t.abli.h.. tair aarJcnt 'Y'41uc.
Z.. The tenant : Qr himaelj~, hi. personl1l represent-at! veil ,
SLU;t;lItlSOrs in interest;, and a..iqn:s, aas CI put. of tho
consi4erAt!on berea', ~g8. hereby ~OVen~t end agree
that (1) no person em tn. ycuwuls or x.co, color, or
national or1qin Shall be excluded t&um ~rticipaticn
in, denied the b8n.~i:t. ot, or ba otnecwlae SUbjected
to discrimination in 'the u.. or .aid tacilitl.., (2)
that in the construct.lon or any improVem8n~s on, over
or under such land anc! the ru~n1sh1nq ot service.
thereon, no person on the ground. 0: race, Color, or
national origin ahall be excluded trom participation
in, denied the benet11:,s ot, or !:Ie otherwise sUDjectecl
to discrimination, (:1 ~ that the tenant shall us. the
~remi5e5 in compliancEl with all other requirements
imposed by or pursuant to Title 49, Code of Federal
RegUlations, Departmerl1: ot Transportation, Su))ti tle A,
Ofticeof the. Sacrataz'1r, Part 21, Nondiscrimination in
Federa'lly-assisted prcl~Jl:ams Of the Depart2Dent ot
Tr"'T1Rrsnrt~t i on-Ettectu,ntion ot Title VI at the civil
lUght:a Act ot 1964, lIInd 3& all id Requlations may be
amended.
).
That in the event o~ hz'each of any ot the abovQ
nondiacriDlination cover.~.nt:a, Airport Owner chall have
the right to terminate ~h. le... and to r.-enter and as
if ~aid lea.se hlle! nevo:z:' been %Ado or iDcuoc1. The
provision sball no~ be effective until tho proc.du~e.
gf Title 49, Code of Fiadat"o.l ReCJulations, l"a.r't. a1 aro
'ulluwtlu caml CODlpleted inc:ludim~ exerc:i.e or expiration
at appeal rJ.gh\.la.
~ t snaIl .be a conCll tion or this It!ClIj~, UUI L Ute lOIl15or
reserves unto 1 teel! , JLta succiessors ana assJ,9nlS, tor
the Use ana .t)enetit. ot 'the PU1:J11c, a r19n~ or tl..1Cjlht
for the passage 01' a.lr(::~att in the airspace above the
surface of the real prc.lperty hereinatt.er descr1bec:t,
toqether with the rlqht: 'to ~aUGe in sa1cl a,irspace sucn
noise liS may be ihherer11: in the operation of aircraft,
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now known or hereatt:llr U..d, tor nav1qat1on ot or
f11CZht J.n tn. said ~i;Lrspace, anet for u.. ot said
airspace tor landing' on, takin; Off from or operatinq
on the & it'port. '
That the Tenant exprl!ssly aqrees fer itself, its
SUccessors and assign,s, to restrict the height ot
structures, objects IQf natural Q'rewth and other
obst>'ucUons on the 1.8reinafter described real property
1:0 SUch · h"iqht 80 ... 1:0 CClllp1y with Pedenl Aviation
Regulations, Part 77"
That the L~ulcaQ .xp~'.I'.ly -CJr... tor ita.It, its
CUOOOCGora and a.e i9'ru., to prevent any '1118 ot the
h4r.in~ttcr describQc! real propo~y which wculd
intertere wii:h or Cld"'tlraely <affoct 'the oPcu:Dtion or
maintana.noe of the Gi2~port, or o~crwioc oonot1tutc an
airport h~:arci.
4. This l.u. and 1111 pre'vidon.. hen,o~ a"" 8U1ljec:1: ancl "
lSubQl;"(j.luCltll lu lhe Le,ta and concU tien. ot the
instrum.nt.. ancl dOc.....nt. lInd.... whlub u... A1~po>,t OWn."
acquired the SUbject l~roparty from the Un!~ud S~.ta8 ot
America ana snall be IJ1ven only sUCh .tract as will not
conflict or be 1ncons;Lstent with the terms and
c:ond1t.1ons contained ;L:rl the lease or sa1tt .lands trcm
the Airport Owner, and any exist in; or SUbsequent
amendments thereto, arll~ are SUbj Get to any ordinances,
rules ot" reCJulations "'hich have been, or may hereafter
be adopt, ad br the Airimrt Owner pertaining to tho
A rport.
5. NotwithstancUnq anythitll; herein contained that IIay be,
or appear to be, to thE! contrary, it is expr...ly
understood and aqreed t~at the ri;hts qranted under
this aqreement are nonl~clu.ive and the L..sor harein
raSl.arvaa the r1ght to !;rant similar priv1le;e8 to
another LeSSF,\EI or oth",:t' I,A"Jt;AAlIl on n~hAr parts of ths
airport.
RE<::EIVED
DEe 23 1993
~
AI RPORTS I OMS
1996 Edition
GENERAL LIABILITY
As a minimum, the required general liability coverages will include:
· Premises Operations
· Blanket Contractual
· Expanded Definition
of Property Damage
.
Products and Completed Operations
Personal Injury
.
Required Limits:
GLI
$100,000 per Person; $300,000 per Occurrence
$50,000 Property Damage
or
$300,000 Combined Single Limit
$250,000 per Person; $500,000 per Occurrence
$50,000 Property Damage
or
$500,000 Combined Single Limit
$500,000 per Person; $1,000,000 per Occurrence
$100,000 Property Damage
or
$1,000,000 Combined Single Limit
$5,000,000 Combined Single Limit
GL2
x
GL3
GL4
Required Endorsement:
GLXCU
GLLIQ
GLS
Underground, Explosion and Collapse (XCU)
Liquor Liability
Security Services
All endorsements are required to have the same limits as the basic policy.
INSCKLST
Administration Instruction
#4709.5
5
I <No Edition
VEHICLE LIABILITY
As a minimum, coverage should extend to liability for:
. Owned; Non-owned; and Hired Vehides
Required Limits:
VLl
VL2
x
VL3
VL4
BRl
MVC
PRO 1
PR02
PR03
POll
POL2
POL3
EDl
ED2
GKl
GK2
GKJ
Administration Instruction
#4709.5
$50,000 per Person: $100,000 per Occurrence
$25,000 Property Damage
or
$100,000 Combined Single Limit
$100,000 per Person; $300,000 per Occurrence
$50,000 Property Damage
or
$300,000 Combined Single Limit
$500,000 per Person; $1,000,000 per Occurrence
$100,000 Property Damage
or
$1,000,000 Combined Single Limit
$5,000,000 Combined Single Limit
MISCELLANEOUS COVERAGES
Builders'
Risk
Motor Truck
Cargo
Pro fessional
Liability
Pollution
Liability
Employee
Dishonesty
Garage
Keepers
Limits equal to the
completed project.
Limits equal to the maximum
value of any one shipment.
$ 250,000 per Occurrence/$ 500,000 Agg.
$ 500,000 per Occurrence/$1,000,000 Agg.
$1,000,000 per Occurrence/$2,000,000 Agg.
$ 500,000 per Occurrence/$I,OOO,OOO Agg.
$1,000,000 per Occurrence/$2,000,000 Agg.
$5,000,000 per Occurrence/$lO,OOO,OOO Agg.
$ 10,000
$100,000
$ 300,000 ($ 25,000 per Veh)
$ 500,000 ($100,000 per Veh)
$1,000,000 ($250,000 per Veh)
INSCKLST
6
1996 Edition
MONROE COUNTYMONROE COUNTY, FLORIDA
RISK MANAGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MANUAL
Indemnification and Hold Harmless
for Airport/Aircraft Activities
The Vendor covenants and agrees to indemnify and hold harmless Monroe County Board of
County Connnissioners from any and all claims for bodily injury (including death), personal injury,
and property damage (including property owned by Monroe County) and any other losses,
damages, and expenses (including attorney's fees) which arise out of, in connection with, or by
reason of services provided by the Vendor or any of its Contractors, occasioned by the
negligence, errors, or other wrongful act or omission of the Vendor or its Contractor(s), their
employees, or agents.
The extent of liability is in no way limited to, reduced, or lessened by the insurance requirements
contained elsewhere within this agreement.
AIR
Administration Instruction
#4709.5
99
I 'Nti Edition
HAZARDOUS CARGO TR-\.NSPORTERS LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work governed by this contract, the Contractor shall purchase
Pollution Liability Insurance which extends to the hauling of toxic and hazardous material by
motorized vehicles. In compliance with the Motor Carrier Act, the policy should be endorsed
with an MCS-90 Endorsement, demonstrating financial responsibility for spills and clean-up. Any
pollution exclusion limiting coverage under this policy shall be removed.
The minimum limits acceptable shall be:
$300,000 per Occurrence
VLPl
Administration Instruction
#4709.5
84