02. 04/04/1997 to 03/31/1999 08/19/1997wlannp IL. Rotbage
BRANCH OFFICE CLERK OF THE CIRCUIT COURT
3117 OVERSEAS HIGHWAY MONROE COUNTY
MARATHON, FLORIDA 33050 500 WHITEHEAD STREET
TEL. (305) 289-6027 KEY WEST, FLORIDA 33040
FAX (305) 289-1745 TEL. (305) 292-3550
FAX (305) 295-3660
MEMORANDUM
TO: Peter Horton, Director
Division of Community Services
BRANCH OFFICE
88820 OVERSEAS HIGHWAY
PLANTATION KEY, FLORIDA 33070
TEL (305) 852-7145
FAX (305) 852-7146
Attention: Bevette Moore, Airport Finance
FROM: Ruth Ann Jantzen, Deputy Clerk
DATE: September 8, 1997
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On August 19, 1997, the Board of County Commissioners granted approval and
authorized execution of a Lease Agreement between Monroe County and Federal Express
Corporation for space at the Marathon Airport.
Attached please find a fully executed duplicate original for return to Federal
Express.
If you have any questions concerning the above, please do not hesitate to
contact me.
cc: County Attorney
Finance
County Administrator, w/o document
File
q5 -0 'gs2-ro l
LEASE AGREEMENT
MARATHON AIRPORT
THIS CONTRACT OF LEASE is made and entered into on the /9 tI day of
l} c,) tSO 7 T' , 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 Marathon Airport, located in
Marathon, 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 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:
I. PREMISES COUNTY does hereby lease to FEDEX, and FEDEX leases from the COUNTY,
the existing terminal building (air cargo building) presently located at the Airport, measuring
2,000 square feet, and nine thousand five hundred sixty-five square feet of unimproved areas
around the building, as indicated on the drawing labeled as Exhibit "A" attached hereto and
made a part hereof.
II. 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 -p-rovided qt or..,r
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connection with the Airport for common use, in the operation of cf._~pineS~for me
transportation of cargo and other property by air.- ~,~ ~3 EH ~
III. TERM The term of this lease shall be twenty-four (24) months, Goriln:l:enciEf9 Ap~l,
1997, and ending on March 31. 1999. . u ~
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IV. RENTALS AND FEES During the term of this lease, FEDEX shall pay to the:~COUISQ"Y,
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rent as follows:
1. The amounf of $1.768.17 per month for the area of two thousand (2,000) square
feet, in the existing terminal area plus patios (air cargo building) for a total of Twenty-one
Thousand Two Hundred Eighteen and 04/100 Dollars ($21.218.04) per annum, plus applicable
sales tax, and
2. The amount of $291.75 per month for an area of nine thousand five hundred sixty-five
(9.565) square feet of unimproved land around the air cargo building. for use for loading.
unloading. and parking of automotive vehicles, for a total of Three Thousand Five Hundred
One and 00/100 Dollars ($3.501.00) 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 1 and 2 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. 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 relating to a dishonored instrument. declare a default. and proceed according to
paragraph 14 of this lease.
v. 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.
2
VI. GUARANTEE OF SUBCONTRACTOR RESPONSIBILITY FEDEX has subcontracted
certain services to be provided by a subcontractor. Mountain Air Cargo (MAC), using FEDEX's
airplane. In the event and upon notice that MAC is unable to satisfy its obligations for all
operating expenses related to aircraft. including landing fees, FEDEX will assume responsibility
for ensuring all payments and contractual agreements are maintained, or vacate the
premises, and this Lease shall be terminated in accordance with Article XV of this Agreement.
VII. LEASEHOLD IMPROVEMENTS AND USE FEDEX shall have the right to occupy the
existing terminal (air cargo building) measuring two thousand (2,000) square feet, and an area
of nine thousand five hundred sixty-five (9,565) square feet of unimproved land adjacent to the
existing terminal (air cargo building), as shown on 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 by air. 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 FEDEX in designating a reasonable number of parking spaces to
accommodate FEDEX's business traffic.
VIII. 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.
IX. 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.
X. UTILITIES FEDEX shall be responsible for the payment of electrical service, water
service, trash and septic tank servicing and similar utility services as needed.
XI. ASSIGNMENT The premises leased hereunder may not be sublet and this lease may
not be assigned without the written consent of the COUNTY.
XII. 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
XIII. INDEMNIFICATION/HOLD HARMLESS
1. 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 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.
2. 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.
The 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.
COUNTY, at its sole option, has the right to required a certified copy of any or all insurance
policies required by this contract. 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.
XIV. 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
4
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.
xv. 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
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.
XVI. FAA REQUIREMENTS The parties shall comply with FAA Required Lease Clauses.
which are listed in Exhibit "B," attached hereto and made a part hereof.
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~ IN WITNESS WHEREOF, the parties have caused this lease to be executed this
~~n.u..h.A~ ,1997.
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~~~,~...A~~~T~':9ANNY L. KOLHAGE, CLERK
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By
FEDERAL EXPRESS CORPORATION
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EXHIBIT 'B'
FAA REQUIREMENTS
FAA REQUIRED LEASE CLAUSES
4"
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1. This lease shall be ~ubject to review and re-evaluation
at the end of each ~ year period, by the airport
owner and the rent may be adjusted according to their
action, not to exceed the Consumer Price Index rate
during the last j'~ month period, or;
Land less improvements will be appraised every 5 years
and the adjusted rental will be based on normally 10-12
percent of appraised value. If disputed, lessor
obtains appraisal at ~is expense and les~or/lessee
equally share expense for review appraisal that
\ establishes fair market value.
2. The tenant for himself, his personal 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 be excluded from participation
in, denied the benefits of, or be otherwise subjected
to discrimination in the use of said facilities, (2)
that in the construction of any improvements on, over
or under s~ch 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~therwise subjected
to discrimination, (3) that the tenant shall use the
premises in compliance with all other requirements
imposed by or pursuant to Title 49, Code of Federal
Regulations, Department of Transporta~~on, Subtitle A,
Office of the Secretary, Part 21, Nondiscrimination in
Federally-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.
..;:".
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'3. It shall be a condition of this lease, that the lessor
reserves unto itself, its successors and assigns, for
the use and benefit of the public, a right of flight...
for the passage of aircraft in the airspace 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,
-4"
-
4
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now known or hereafter. used, 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 exprE~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 affect 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 Owner
acquired the subject property from the United States of
America and shall be given 9nly such ef~ect as will not
conflict a? be inconsistent with the terms and
conditions contained in the lease of said lands from
the Airport Owner, and any existing or subsequent
amendments thereto, and are subjecf to any ordinances,
rules or regulations which have been, or may hereafter
be adonted by the Airport Owner pertaining to the
,111 A r..p Airport.
5.
..
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Notwithstanding anything herein contained that may be,
or appear to be, to the contrary, it is expressly
understood and agreed that the rights granted under
this agreement are nonexclusive and the Lessor herein
reserves the right to grant similar privileges to
another Lessee or other Lessees on other parts or the
airport. '-
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INSURANCE SCHEDULES
(
ALL RISK PROPERTY
INSURANCE REQUIREMENTS
FOR
LEAS ES/RENT ALS OF
COUNTY -O\VNED PROPERTY
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the OrganizationlIndividual taking possession of the property governed by this
leaselrental agreement, the OrganizationlIndividual shall obtain All Risk Property Insurance (to
include the perils of Flood and Wind) with limits no less than the Replacement Cost Value of the
property leased or rented. Coverage shall be maintained throughout the life of the Lease/Rental
Agreement and include, as a minimum, liability coverage for:
Fire
Sprinkler Leak~ge
Windstorm -
Civil Commotion
Lightning
Sinkhole Collapse
Smoke
Aircraft and Vehicle Damage
Vandalism
Falling Objects
Explosion
Flood
The Monroe County Board of County Commissioners shall be named as Additional Insured and
Loss Payee on all policies issued to satisfy the above requirements.
"}4
1996 Edition
(
GENERAL LIABILITY
INSURANCE REQUIREMENTS
FOR
.
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work governed by this contract, the Contractor shall obtain
General Liability Insurance, Coverage shall be maintained throughout the life of the contract and
include,. us a minimum:
· Premises Operations
· Products and Completed Operations
· Blanket Contractual Liability
· Personal Injury Liability
· Expanded Definition of Property Damage
The minimum limits acceptable shall be:
$1,000,000 Combine<LSingle 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 claims filed on or after the effectiye date of this contract.
In addition, the period for which claims may be reported should extend for a minimum of twelve
(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.
--
GL3
Administration Instruction
114709.2
56
1996 Edition
(
VEHICLE LIABILITY
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Recognizing that the work governed by this contract requires the use of vehicles, the Contractor,
prior to the commencement of work, shall obtain Vehicle Liability Insurance. Coverage shall be
maintained throughout the life of the 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 are provided, th~minimum limits acceptable shall be:
$ 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.
VL3
Administration Instruction
1i4709.2
81
1996 Edition
(
WORKERS' COMPENSATION
INSURANCE REQUIREMENTS
FOR
CONTRACT
BETWEEN
MONROE COUNTY, FLORIDA
AND
Prior to the commencement of work governed by this contract, the Contractor shall obtain
Workers4 Compensation Insurance with limits sufficient to respond to the applicable state
statutes,
In addition, the Contractor shall obtain Employers' Liability Insurance with limits of not less
than:
$1,000,000 Bodily Injury by Accident
$1,000,000 Bodily Injury by Disease, policy limits
$1,000,000 Bodily Injury by Disease, each employee
Coverage shall be maintainedj.hroughout the entire term of the contract.
Coverage shall be provided by a company or companies authorized to transact business in the
state of Florida,
If the Contractor has been approved by the Florida's Department of Labor, as an authorized self-
insurer, the County shall recognize and honor the Contractor's status. The Contractor may be
required to submit a Letter of Authorization issued by the Department of Labor and a Certificate
of Insurance, providing details on the Contractor's Excess Insurance Program.
Ifthe Contractor participates in a self-insurance fund, a Certificate ofInsurance will be required.
In addition, the Contractor may be required to submit updated financial statements from the fund
upon request from the County,
we3
Administration Instruction
1/:l7()'!.2
90
(
MONROE COt~TY, FLORIDA
RISK MA.."AGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MA..'LJAL
Indemnification and Hold Harmless
for
Other Contractors and Subcontractors
1_'" t.
The Contr~ctor 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 ovmed by Monroe County) and any other losses,
damages, and expenses (including anorney's fees) which arise out of, in connection with, or by
reason of services provided by the Contractor or any of its Subcontractor(s) in any tier,
occasioned by the negligence, errors, or other \\ Tongful act or omission of The Contractor or its
Subcontractors in any tier, their employees, or agents,
In the event the completion of the project (to include the work of others) is delayed or suspended
as a result of the Contractor's failure to purchase or maintain the required insurance, the
Contractor shall indemnify the.Lounty from any and all increased expenses resulting from such
delay,
The first ten dollars ($10.00) ofremuneration paid to the Contractor is for the indemnification
provided for above,
The extent of liability is in no way limited to, reduced, or lessened by the insurance requirements
contained elsewhere within this agreement.
res
'-i~
1996 Edition
MONROE COUNTY, FLORIDA
RISK MANAGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MANUAL
General Insurance Requirements
for
Airpo rt/ Aircraft Activities
Prior to the commencement of work governed by this contract (including the pre-staging of
personnel and material), the Vendor shall obtain, at hislher own expense, insurance as specified
in the attached schedules, which are made part of this contract. The Vendor will ensure that the
insurance obtained will extend protection to all Contractors engaged by the Vendor.
The Vendor will not be permitted to commence work governed by this contract (including pre-
staging of personnel and material) until satisfactory evidence of the required insurance has been
furnished to the County as specified below.
The Vendor 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 the Vendor and its Contractors
until the required insurance has been reinstated or replaced.
The Vendor 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.
The County, at its sole option, has the right to request a certified copy of any or all insurance
policies required by this contract.
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 Vendor's insurance shall not be construed as relieving the
Vendor 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 for Waiver of Insurance Requirements" and
approved by Monroe County Risk Management.
Adllllnistration Instruction
i/47O'J.2
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