Commission approves FDOT LAP agreement for Nebraska Avenue sidewalks despite indemnity concerns

The commission approved a Local Agency Program (LAP) agreement with the Florida Department of Transportation to accept Transportation Alternatives Program (TAP) funds for construction of sidewalks on Nebraska Avenue (N S Longwood Circle to N 13th Street).

City Attorney A. Hedges informed the commission that the FDOT agreement contained an indemnify/hold‑harmless/defend clause obligating the city to assume legal and financial responsibility for certain claims. The attorney said the clause could expose the city to indemnity costs, could implicate sovereign immunity limits and could jeopardize insurance coverage where the insurer excludes contractual indemnity obligations.

Staff reported FDOT required the agreement language and declined to remove the indemnity clause. Project managers said federal TAP funds have been conditionally obligated for this fiscal year and that FDOT required the executed agreement back by early September to keep the funding. Staff noted the agreement also requires standard contractor insurance and that contractors/subcontractors will carry insurance and contract obligations when the city advertises the work.

After discussing the legal risk versus the practical consequence of losing roughly $666,000 in federal sidewalk funds, the commission voted to approve the agreement by roll call. Commissioner Gaines recorded a “no” vote and asked staff to continue efforts to protect the city’s exposure on similar agreements going forward.

Staff said they will return with construction‑phase contracting documents that include required contractor insurance and standard construction indemnity provisions and will seek any additional protections available.