03/19/2003
LEASE AGREEMENT MARATHON AIRPORT
FedEx Ground Package System
THIS CONTRACT OF LEASE is made and entered into on the 19th day of March,
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 "FEDEX."
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
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 (50/0) 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 USEFEDEX 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 3.
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, FED EX 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 arising 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 CLAUSE 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 County 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 yearl'lrst written above.
\
(SEAL)'
ATTEST: DANNY L. KOLHAGE, CLERK
G~
Deputy Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
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By
Mayor/Chairman
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DEe 2 3 1993
AIRPORTS J OMB
ru RlgVJ:UD LBUI CLau..
1. Thi. leaae shall be :Iubject ~o review and ra-evaluation
at the end or eaeh ___ year period. by the airport
nwnAr and the rent JDIIY be .cijusted accordinq to their
action, not:. to .xc.ect the Conauaer Price Ind.ex rate
dq~in9 the last ____ :month period. or:
Land 1... iapz'ov.lI.n1:~. will b.. appraised every 5 year.
and tbe adj ua'ted rent:l'l vill be balled an llat'1Dally 10-12
paraent: of .ppraised ~1&lu.. If cU.saPUtod, l".or"
obtaina Gppraiaal at )11. expen.. and l...or/l.....
equally ahAra .xpen..: fo~ review .Pp~.ic.l tha~
..eabl1.he. tair aarkut value.
Z · The t.enGnt t Dt" hima.lJ~, hi. persorlAl r.prG8cn'tai:i va. ,
s..n..~uasora in int.r_t~, and ...igna, aas a part. ot tho
considerat!on hereot, ~g.. h.~.by covenant and 8.r..
that (1) no persen on the y.ruwlds or x.co, color, = .'
national origin Shall ~ excluded t&um pd~tlc!p.tlQn
ln, denied the b8n.~1't.. ot, or ba othecwlall! sUl)jected
to discrimination in 'the u.. or sa14 tacilit.J..., (a)
that 1n the construct.lon O~ any 1mprovemen,:. on, over
or under such land anel the rurnishIng or serv1ce.
thereon, no person on the grounds 0: race, color, or
national origin ahall be excluded trom participation
in, clenied the benet11:;s ot, or be otherwise su1:Jjected
to discriminati.on, (~I) that the tenant shall ua8 the
premises in COmpliancEl with all other reqUIrements
imposed by or pursuant: to Title 49, Code of Federal
Regulations, Departmeli1: ot Transportation, Su))ti tl. A,
Ott1ce .of the. sacretaz'Jr, Part 21, NoncUsc:riminat1on 1n
Federiilly-assisted prcl~Jt'ams Of the Depart1aent ot
Tr~l'lRp1rtlttton-Etf.ctu,ntion ot Title VI ot the civil
kight:a Act' ot 1964, ""[1 "a said RagulatiODI may be
amended.
).
Thai: 1n the event ot Dz....ch of any of the .bovo
nondi~cri.inai:ion oover,lanta, Airport Owner ahall have
th. right to terminat.. the 1.... and to re-enter and as
if aaLd lecse hQd n.vo:c' been Jlada or loauod. The
provision shall no~ be effective until tho proo.du~..
of Title 49, Code of Fled.ral ReCJ\11ationa, !'>>a.r't. 21 .1:'0
,'ul1uwfd~ caml completed inC:lucUnq exet'Ci.. o~ .)Cpi.rA~ian
ot app.al .rJ.ght....
~t snall be a aonCllt1on or th1. lCl!cu5u, UUIL Lb. lo88or
reserve. unto itself, JLta SUccessors aneS assignlS, tor
.the use ana oanet1t ot .the PUblic, a r19n~ or t11Vht
for the passage of a.lrc::ratt in the airspace above t:he
surface of the real prc>>I?8rty h.reinaeta:- del!lcr1b.4,
toqether with the r19ht: to oause in said a1rspace sUCh
noise as may b. inharerl1c in the operation of aircraft,
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now known or hereatt:llr uS.d, for nav.1q&t1on ot or
tl1~ht in tn. aaid II:Lrspace, and for U.. Of said
.traplee tor landing' on, tak1nq Off from or operat1ng
on the ab:port. '
That the Tenant exprlls.ly Igrees for itself, its
successors and assionls, to restrict the height ot
structure., objects 1::I,t natural ;rowth and other
ohatruc~ions on the l~ara1naftar d..cr1bed real pr~rtY
~o auah a haiqht .0 418 ~o comply with Federal Aviation
Regulations, Part 77,.
'1'hat tho LeI.... .xp~.a'..ly -po... fo~ ita.1f, ita
GUOcoccorc and ... itrul, to prevent any U.8 ot the
har.tn.iter de.c~ibOcl roal propO~YWhich wou14
interte2:'e vii:h or cul\l'4ta:-..lf \'aftoat tho opcu:at.icm 0&-
maintenAnce o~ the Gi2~POrt, or o~crwi.c Qonotit.uto an
airport h.Z:Clftl.
4. 'this 1..... ancI .11 prOVisions h.reo~ III;"a al.lbjllC1: and . .
.'d~u4~.1n.ta t.U Unl toe.t_ and condition. of the
.instrument.. and dOCWI'l-nt. under whl.c:b Ul" Ait-port OWner
acquired the SUbject l~rop.rty trom the Un!~ed 5~.tM. or
AIler1ca ana Shall be ~l1v.n only 8uch ettect as will not.
oonfl1ct or be 1ncon.~llt.nt with the term. and
c::oncUtJ.ons contained in the leas8 of said lanels tro2ll
the Airport Owner, and any -xi.tin; or SUbsequent
amendments thel:'eto, alu! are 8Ubj act to any ordinances,
rules or requlat10ns ~~\1ch have been, or may hereafter
be adopted br the AirJ:IClrt Owner pertaining to tho
' A rpDrt.
5. Notwithstancl1ncr anvthirlC; herein centaine that .ay be,
or appear to be, to thEl contrat'y, it i. expre..ly
understood and a;reed t:hat the rights qranted under
this avre8ment are nonlrXcluaive anel the Le..or harein
ra~.rv.a the r1ght to I~rant similar priv11a;es to
another LesSlI:lEl or oth,-,:~ r.A~IIlI\IlI!1l; nn nt:hRr parts ot the
airport.
RE<::EIVED
DEe 23 1993
"
,
AIRPORTS I OMS
. ,
19<)6 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:
GLl
$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 (XCD)
Liquor Liability
Security Services
All endorsements are required to have the same limits as the basic policy.
INSCKLST
Administration Instruction
#4709.5
5
I QQ(, Edition
VEHICLE LIABILITY
As a minimum. coverage should extend to liability for:
· Owned; Non-owned; and Hired Vehicles
Required Limits:
VLl
VL2
x
VL3
VL4
BRl
MVC
PRO 1
PR02
PR03
POLl
POL2
POL3
EDl
ED2
GKl
GK2
GIG
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
Limits equal to the
completed project.
Limits equal to the maximum
value of any one shipment.
Motor Truck
Cargo
Pro fessional
Liability
$ 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/$1 0,000,000 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
Pollution
Liability
Employee
Dishonesty
Garage
Keepers
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 Commissioners 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
19'1ti Edition
HAZARDOUS CARGO TRANSPORTERS 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