07. 10/01/1997 to 09/30/2000 11/12/1997BRANCH OFFICE
3117 OVERSEAS HIGHWAY
MARATHON, FLORIDA 33050
TEL. (305) 289-6027
FAX (305) 289-1745
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CLERK OF THE CIRCUIT COURT
MONROE COUNTY
500 WHITEHEAD STREET
KEY WEST, FLORIDA 33040
TEL. (305) 292-3550
FAX (305) 295-3660
MZMRRAHDRM
TO: Peter Horton, Director
Community Services Division
Attn: Bevette Moore,
Airport Finance
FROM: Isabel C. DeSantis, Deputy Clerk
Date: November 21, 1997
BRANCH OFFICE
88820 OVERSEAS HIGHWAY
PLANTATION KEY, FLORIDA 33070
TEL. (305) 852-7145
FAX (305) 852-7146
As you know, at the Board meeting of November 12, 1997 the
Board granted approval and authorized execution of a Lease
Agreement between Monroe County and Federal Express for rental
space at the Key West International Airport.
Attached hereto are is a fully executed duplicate original
of the Agreement for your return to FEDEX.
Should you have any questions concerning the above, please
do not hesitate to contact this office.
cc: County Attorney
County Administrator, w/o document
Finance
V File
qo -Q l6:l-Gcl
LEASE AGREEMENT KEY WEST INTERNATIONAL AIRPORT
THIS CONTRACT OF LEASE is made and entered into on the /)... J day of fYOVf.l1.~'i:.. .
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1997, by and between MONROE COUNTY, a political subdivision of the State of Florida,
hereinafter referred to as "COUNTY" and FEDERAL EXPRESS CORPORATION, hereinafter referred
to as "FEDEX."
WHEREAS, COUNTY owns an airport known as the Key West International Airport. located
in Key West, Monroe County, Florida. hereinafter referred to as "AIRPORT," and
WHEREAS, FEDEX is engaged in the business of air transportation of 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 a non-exclusive basis, upon the terms and conditions hereinafter stated,
NOW, THEREFORE, in consideration of the premises and of the mutual covenaQts and
agreements herein contained, and other valuable considerations, COUNTY ~~ fieret,8 gr~nt
and lease unto FEDEX, and FEDEX does hereby lease from COUNTY, certain ~rem~s, :f:I!cilif-ies,
rights, and privileges in connection with and on the Airport, as follows, to wit: 0 ~ ~.'.. 9 ::~
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1. PREMISES COUNTY does hereby lease to FEDEX, and FED~ ~<ises fr(;m the
COUNTY, the Air Cargo building presently located at the Airport, measuring o~ hu~recgreq~y
thirty feet (100' x 30'), and nine thousand five hundred thirty-five (9,535) square;(eet 9J open I~d
adjacent to the building, as indicated on the drawing labeled as Exhibit "A~attdC'he8hermo
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and made a part hereof. ?- ~
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 cargo
and other property by air.
3. TERM The term of this lease shall be thirty-six (36) months, commencing October
1, 1997, and ending on September 30,2000.
4. RENTALS AND FEES During the term of this lease, FEDEX shall pay to the COUNTY,
rent as follows:
a) the amount of Eleven and 64/100 Dollars ($11.64) per square foot, for the area of
three thousand (3.000) square feet, in the existing Air Cargo building, for a total of Thirty-four
Thousand Nine Hundred Twenty Dollars ($34,920) per annum, plus applicable sales tax, and
b) the amount of forty-seven and three/tenth cents ($0.473) per square foot for an
area of nine thousand five hundred thirty-five (9,535) square feet of open land adjacent to the
Air Cargo building. for use for loading, unloading. and parking of automotive vehicles. for a total
of Four Thousand Five Hundred Ten and 06/100 Dollars ($4,510.06) per annum, plus applicable
sales tax,
Rental rates are subject to revision each year in accordance with the airport standard
rates and charges, and in accordance with the percentage change in the Consumer Price
Index (CPI) for Wage Earners and Clerical Workers in the Miami. Florida, area index, and shall be
based upon the annual average CPI computation from January 1 through December 31 of the
previous year.
Rent for items a) and b) 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 FED EX to pay any installments when due, 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 14 of this
lease. In the event that any check, draft, or negotiable instrument by which FEDEX has tendered
any rent payment is returned to the COUNTY and not honored, whether for insufficient funds or
other reason, the COUNTY will be entitled to charge and 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 14 of this lease.
5. SECURITY DEPOSIT In addition to the rent payment as provided above, FEDEX shall
maintain with the COUNTY, the sum deposited, to-wit: an amount of Twenty-five Hundred Dollars
($2,500.00), which the COUNTY will hold as a security deposit. In the event of any breach by
FEDEX of any of the terms of this agreement, including any failure to timely pay any rent due, the
COUNTY may draw upon the monies held by the COUNTY as security, to pay and cover any
amounts due and owing from FEDEX.
6. LANDING FEES landing fees shall be assessed at a rate to be established by the
County's 1995 Rates and Charges Study, subject to an adjustment on October 1, 1998 and
October 1. 1999, in accordance with the percentage change in the Consumer Price Index (CPI)
for Wage Earners and Clerical Workers in the Miami. Florida area index and shall be based upon
the annual average CPI computation from January 1 through December 31 of the previous
year. The landing fees shall be computed, using the $.71 rate as an example only, as follows:
$.71 per 1,000 pounds of approved maximum gross landing weight. A minimum landing
fee of $8.88 will be charged for all aircraft weighing less than 12,500 pounds gross landing
weight.
FEDEX shall report to the county commiSSioners, not later than the 10th day of each
month. FEDEX's Actual Revenue Trip Arrivals at the Airport during the preceding calendar month,
which shall include the number and type of such arrivals. The number of arrivals so operated,
2
multiplied by the applicable approved maximum gross landing weights for each type of aircraft.
shall determine the weight for which the monthly payment shall be made.
The term "approved maximum gross landing weight" for any aircraft as used herein. shall
be the maximum gross landing weight approved by the Federal Aviation Administration for
landing such aircraft at the AIRPORT herein. FEDEX provides service to Key West. Florida utilizing a
Cessna 208 Caravan. While this aircraft is owned bl FEDEX, it is- L_Jed''''td~Ofla'~~'~
~fA.urM~t}~'~~ed'i'rt,t)m."ef."mrm.Ccrfotin'5. As such. MAC is responsible for all the
operating expenses related to aircraft. including landing fees. Within 15 days after its receipt of
written notice that MAC is unable to satisfy its obligations hereunder. FEDEX will assume the
responsibility for ensuring that all payments and contractual agreements are maintained. or
vacate the premises and this lease shall be terminated in accordance with paragraph 14.
7. LEASEHOLD IMPROVEMENTS AND USE FEDEX shall have the right to occupy the
Air Cargo building measuring one hundred feet by thirty feet (100' x 30'), and nine thousand five
hundred thirty-five (9,535) square feet of open land adjacent to the Air Cargo building, as
indicated on the drawing labeled as Exhibit "A" attached hereto and made a part hereof.
FEDEX may only utilize the leased building to provide counter space for members of the public
desirous of using FEDEX's cargo and package services and for the operation of a business
engaged in the transportation of cargo and other property. While premises are leased to FEDEX
for parking, FEDEX shall not park or place automotive vehicles in any space on the premises
unless it has been designated by the COUNTY for parking. The COUNTY shall cooperate with the
FED EX in designating a reasonable number of parking spaces to accommodate FEDEX's business
traffic.
8. COMMON AREAS FEDEX shall have the right to use, in common with others, the
Airport space and facilities to permit landing, taking off, loading, unloading and servicing of
FEDEX's aircraft, subject to reasonable rules and regulations of COUNTY as to the use of such
common spaces and facilities.
9. 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
10. UTILITIES FEDEX shall be responsible for the payment of electrical service. water
service, and septic tank servicing and similar utility services as needed. In addition to rent and
other charges. FEDEX shall pay a trash collection fee of $1.800 per annum.
11. ASSIGNMENT The premises leased hereunder may not be sublet and this lease
may not be assigned without the written consent of the COUNTY.
12. 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 and any remodeling or construction
performed to or on the premises leased hereunder.
3
13. 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 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 which arise from the negligent or intentional
acts or omissions of the County, its agents or employees. The extent of liability is in no way limited
to, reduced, or lessened by the insurance requirements contained elsewhere within this
agreement.
b) General Insurance Requirements Prior to FED EX taking possession of the property
owned by the COUNTY, FED EX 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, either a Certificate of Insurance or a certified copy of the actual
insurance policy. 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 FEDEX's insurance shall not be construed as relieving
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 " '~ll" on all
policies. FEDEX shall carry its insurance with Insurance companies authorized to do business i"'''''
,muulll'_uL.
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.
14. 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 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 fifteen (15) 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.
15. CANCELLATION OF LEASE COUNTY may cancel this lease agreement by giving
FEDEX sixty (60) days advanced written notice upon the happening of anyone of the following
4
events: the appointment of a receiver of FEDEX's assets; the divesting of FEDEX's leasehold
estate by other operation of law; the abandonment by FEDEX of its air cargo transportation
business at the Airport for a period of sixty (60) days. By the end of the sixty (60) day notice
period, FEDEX shall have vacated the premises and the COUNTY may immediately re-enter and
take possession of the same. If it is necessary to employ the services of an attorney in order to
enforce the COUNTY's rights under this paragraph, the COUNTY shall be entitled to reasonable
attorney's fees.
16. FAA REQUIREMENTS The parties shall comply with FAA Required Lease Clauses,
which are listed in Exhibit "B," attached hereto and made a part hereof.
IN WITNESS WHEREOF, the parties have caused this lease to be executed this / 2 #t day
of No verY'Jhe.(' ,1997.
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ATTEST: DANNY l. KOLHAGE, CLERK
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS OF
MON COUNTY, FLORIDA
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Mayor/Chairman
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Witness
FEDERAL EXPRESS CORPORATION
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EXHIBIT "B"
FAA R(QOIRED LEASE CLAOSLS
1. This lease shall be subject to review and re-evaluation
at the end of each 1- year period, by the airport
ovner and the rent may-be adjusted according to their
action, not to exceed the Consumer Price Index rate
during the last ~ month period, or;
Land less improvements ~ill be appraised every 5 years
and the adjusted rental viII be based on normally 10-12
percent at appraised value. If disputed, lessor
obtains appraisal at ~is expense and les~or/lessee
equally share expense for review appraisal that
establishes fair ~arket value.
2. The tenant for himself, his pers'onal representatives,
Successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree
that (1) no person on the grounds of race, Color, or
national origin shall he excluded from partiCipation
in, denied the benefits of, or be othe~ise SUbjected
to discrimination in the use of said facilities, (2)
that in the construction ot any improvements on, over
or under SUch land and the furnishing of services
thereon, no person on the grounds of race, color, ~r
national origin shall be excluded from participation
in, denied the benefits of, or be otherwise subjected
to discrimination, (J) that the tenant shall use the
premises in compliance vith all other requirements
imposed by or pursuant to Title 49, Code of Federal
Regulations, Depa~~ent Of Transportar~on, SUbtitle A,
O!fice of the Secretary, Part 2~, Nondiscri~ination in
Federally-assisted programs of the Department of
Transportation-Effectuation of Title ~ of the Civil
Rights Act of 1964, and as said Regulations may be
amended. ,
That in the event of breach or any of the above
nondiscr1mination Covenants, ^irport Owner shall have
the right to tl!.t1Ilinate the lease and to re-enter and U..
if said lease had nevar been ~de or issued. The
provision shall not be effective until the procedures'
of Title 49, Code of Federal Regulations, Part 21 are' ,...
followed and Comple~ed inclUding exercise or expiration
of appeal rights. ~ ".
'3. It shall be a condition of this lease, that the lessor
reserves unto i~self, its SUccessors and aSSigns, for
the USe and benefit of the public, a right of flight
for the passage of aircra~t in the airspace above the
SUrface of ~e real property hereinafter described,
together ~ith the right to cause in said airspace such
noise as may be lnherent in the Ope~ation ot aircraft,
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now kno~n or h~reatter USQd, for navigation of or
flight in the said airspace, and for use of said
airspace for landing' on, taking off from or operating
on the airport.
That the Tenant expressly agrees for itself, its
SUCcessors and assigns, to restrict the height of
structures, objects of natural growtn 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 Lessee exprc~sly.agrees for its~lf, its
successors and assigns, to prevent any use of the
hereinafter described real property which would
interfere with or adversely aff~ct the operation or
maintenance of the airport, or otherwise constitute an
airport hazard.
4. This lease and all provisions hereof are SUbject and
SUbordinate to the terms and conditions of the
instruments and documents under which the Airport O~er
acquired the subject property from the United States or
America and shall be given only such effect as Yill not
conflict or be inconsistent with the terms and
Conditions contained in the lease of said lands trtim
the Airport Owner, and any existing or subsequent
a~endments thereto, and are subject to any ordinances,
rules or regulations uhich have been, or may hereafter
be adopted by the Airport Owner pertaining to the
;( W r ..q Airport.
5. Notvithstanding anything herein contained that may he,
or appear to be, to the contrary, it is expreSSly
understood and agreed that the rights qranted under
this agreement are nonexclusive and the :Lessor herein
reserves th~ right to grant similar privileqes to
another LeSSee or other Lessees en other parts of the
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INSURANCE REQUIREMENTS
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1996 Edilion
(
MONROE COUNTY, FLORIDA
RISK MANAGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MANUAL
General Insurance Requirements
(or
Airport! Aircraft Activities
F'6~~
Prior to the commoncerod '?L~~k eovemcd by this COntract (including the pre-staging of
personnel and material), r shall obtain, at hislher own expense, insurance as specified
in the attached schedules, which are made part of this contract. ~ will ensure that the
insurance obtained will extend protection to all Contractors enga~~r~~e Vendor.
~n F€~Cr
The Y tJ'lder will not belermitted to commence work governed by this contract (including pre-
staging of personnel an material) until satisfactory evidence of the required insurance has been
furnished to the County as specified below.
FE~EJ
11J' y cna6f shall maintain the required insurance throughout the entire term of this contract and
any extensions specified in any attached schedules. Failure to comply with this provision may
result in the immediate suspension of all activities conducted by 1M Veft88C and its Contractors
untillhe required insurance ha.s been reinstated or replaced. F"e~ e JC
f~~I~:Ser shall provide, to the County, as satisfactory evidence of the required insurance,
either:
· Certificate of Insurance
or
· A Certified copy of the actual insurance policy.
~~ C~ttnt), at iu ~olt opt~on, ftll3 the right to ,l<ittt3t a oc!1iiie6 eepy ef al'!Y 81 all iJ'l3\iraneC
. pelieies r8l\"irea ey this eeatfaet.
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 b~ the insurer.
, F'fO tJt'i
The acceptance and/or approval of the Vtl1d~ insurance shall not be construed as relieving__
~W from any liability or obligation assumed under this contract or imposed by law,
The Monroe County Board of County Commissioners, its employees and officials will be
included as "Additional Insured" On all policies, except for Workers' Compensation.
Any deviations from these General Insurance Requirements must be requested in writing on the
County prepared form entitled "Request (or Waiver of Insurance Requirements" and
approved by Monroe County Risk Management
^dminiSlralion InSlruc:iO'1
1141Cl'l2
:~
II
AIRCRAFT LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BET\VEEN
MONROE COUNTY, FLORIDA
Al\T})
FEDERAL EXPRESS CORPORATION (f1FEDEXfI)
~~
Recognizing that the Vendor is engaged in providing commercial air transportation and delivery
service to and from air facilities owned, operated, or maintained by the County, the Vendor shall
purchase and maintain, throughout the life of the contract, Aircraft and Airport Liability
Insurance which will respond to bodily injury and property damages resulting from any claim
arising out of the air transportation services governed by this contract.
The covered operations section of the policy must specifically state that the Vendor is engaged in
business of a commercial airline.
The Monroe County Board of County Commissioners must be named as Additional Insured.
The minimum limits of liabili ty shall be $1 million per occurrence, for both types of coverages.
AIRl
36
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NCi Ulc..L
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1996 Edition
GEl\~RAL LIABILITY
INSURANCE REQUIREMENTS
FOR
.
CONTRACT
. BETWEEN
MONROE COUNTY, FLORIDA
AND
FEDERAL EXPRESS CORPORATION ("FEDEX")
f'enex
Prior to the commencement of work governed by this contract, tftt COllhact?x shal obtain
General Liability Insurance. Coverage shall be maintained throughout the lafe of the contract and
include, as a minimum:
,
· Premises Operations
· Products and Completed Operations
· Blanket Contractual Liability
· Pcrsonallnjwy Liability
· Expanded Definition of Property Damage
The minimum limits acceptable shall be:
....-
SI.000:000 Combined Single Limit (CSL).
...
If split limits are provided, the minimum limits acceptable shall be:
$ 500,000 per Person
$ 1,000,000 per Occurrence
$ 100,000 Property Damage
An Occurrence Form policy is preferred. If coverage is provided on a Claims Made policy, its
provisions should include coverage for cJaims filed on or after the effectiye date of this contract.
In addition, the period for which claims may be reported should extend for a minimwn of twclve
(12) months following the acceptance of work by the County.
The Monroe County Board of County COmmissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
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Adminislralion I'hlrucl;on
1t47092
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1996 Edilion
VEHICLE LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BEtWEEN
MONROE COUNTY, FLOIUDA
AND
FEDERAL EXPRESS CORPORATION (t1FEDEXtl)
FEtter
Recognizing that the work governed by this contract requires the use of vehicles, tAt C9Rt.raetel,
prior to the Commencement of work, shall obtain Vehicle Liability Insurance. Coverage shall be
maintained throughout the life of thc contract and include, as a minimum, liability coverage for:
· Owned, Non-Owned, and Hired Vehicles
"
The minimum limits acceptable shall be:
$1,000,000 Combined Single Limit (CSL)
..,:<-- .
If split limits aCc provided, the minimum limits acceptable shall be:
418
$ 500.000 per Person
$1,000,000 per Occurrence
$ 100,000 Property Damage
The Monroe County Board of County Commissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
:~
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AdministrilliOn Instruclion
14709.2
83
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NO. 0122
r. 17
1996 Edilion
WORKERS' COMPENSATION
INSURANCE REQUIREMEI\'TS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
FEDERAL EXPRESS CORPORATION (lfFEDEXIf)
m,
~~e-~
Prior to the commencement of work governed by this contract, tM COMnlete. shaII obtain
Worke~t Compensation Insurance with limits sufficient to respond to the applicable state
statute~.
In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less
than:
;,
S I ,000,000 Bodily Injury by Accident
$1,000,000 Bodily Injury by Disease, policy limits
$1,000,000 Bodily Injury by Disease, each employee
. -;-- .
Coverage shalt be maintained throughout the entire term of the contract.
Coverage shall be provided by a company or companies authorized to transact business in the
state of Florida.
FEa~. ~~
If1k CUllUi1\;LUr has been approved by the Florida's Department of La , as an authorized self.
insurer, the County shaH recognize and honor the Contractor's status. may be
required to submit a Letter of Authorization issued by the Department of Labor and a Certificate
of Insurance, providing details on the CeRtfKlaH-Excess Insurance Program.
.[f!f.X ':-ec.elf,
If OAtraeler participates in a self-insurance fund, a Certificate ofInsurance will be required.
In addition. ~r may be required to submit updated financial statements from the fund
Upon request frolr the County.
~eC) E->c
...
:.1'..
"-
WC3
^dminislralion In~\rucljon
*4709.2
90