HomeMy WebLinkAbout1989-06-29 Council Packet - Work Session, Airpt LeasesKenai City Council
Work Session
June 29, 1989
Airport Terminal Concession Leases
1791-1991
CITY OF KENAI
210 ROALGO KEL44 ALASKA M11
TEL.EMONk 283.7W
FAX 907-283-3014
NOTICE OF WORK SESSION
The Kenai City Council will be holding a work session on
Thursday, June 29, 1989 at 7:00 PM in the Council chambers.
To be discussed:
Airport Terminal Concession Leases
The public is invited to attend and participate.
Janet Ruotsala, CMC
City Clerk
DATED: June 22, 1989
1791- iMl
CITY OF KENAI
ea,ai 4 4411
210 ROALOO KENAI, ALASKA 9mi
- - TELEPHONE 21- MIS
FAX 907-283-3014
TO: Janet Ruotsala, City Clerk
City of Kenai
FROM: mothy J. Rogers, City Attorney
City of Kenai
DATE: June 29, 1989
RE: Work Session/Airport RFPS
The Council will be making amendments to the Airport RFPS at the
Work Session scheduled for this evening. Please record the whole
meeting for this Department's use.
TJR/clf
2Z 23 Aj;�
-
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INVITATION FOR BIDS
KENAI MUNICIPAL AIRPORT TERMINAL
CITY OF KENAI
(KMC 21.10.1.20)
Form #2 RFPI
In accordance with KMC 21.10.120, sealed bids for t eexclusive
right to lease the Kenai Municipal Airport Termina gill be
received at the City Hall offices. Bid forms can be obtained at
City Hall. All bids must be received no later than 2:00 p.m., on
1989, at which time and place they will be
publicly opened and read.
Bidders shall offer a one-time premium in addition to the
established lease rate of DOLLARS
per month. The bidder offering the highest one-time
premium will. obtain the right to a -year lease, subject to
all provisions of review and approval established for all other
lease applications.
Date
Wm. J. Brighton
City Manager
(Short Form #2 RFPI
INSTRUCTIONS TO BIDDERS
CITY OF KENAI
KENAI MUNICIPAL AIRPORT TERMINAL
I. BID PROP.OSA,LS:
All bids Must be made on the Bid Proposal Forms furnished by the
City (attached hereto), must be properly executed as provided
thereon, and be addressed and delivered to the office of the City
Manager, City of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611,
no later than 2:00 p.m., on 1989. Bids may also be
mailed to the City Manager, City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but Must be received at the office of the
City Manager, no later, 1'..han 2:00 p.m., on 1989, to be
considered.
Each Bid Proposal must be submitted -in a sealed envelope which is
clearly marked on the outside with the Bidder's nqme and the
following label:
CITY OF KENAI
"KENAI MUNICIPAL AIRPORT TERMINAL"
Each submitted Bid Proposal shall include: -
A. A completed, signed, and notarized Bid Proposal (Pages BP-1
to BP-3).
B. The required Bid Deposit.
No late, telefaxed, or telegraphic bid proposals will be
accepted. When received by the City, all bid Proposals become
the property of the City. When bid proposals are opened, all bid
proposals and supporting documents and statements become public
information.
II. W! D —REV —IS 19—N NI —TIME oN W A L :
A bidder may withdraw or revise a bid proposal after it has been
deposited in the office of the City Manager, 210 Fidalgo Street,
Kenai, Alaska, 99611, provided the following conditions are met:
A The Bidder, submits a written request for return of his
bid proposal. (The request must be signed by the
bidder, or a duly authorized agent or officer of the
bidder, and notarized.)
IB-1
8 The City i5 able to clearly identify the bidders
bid envelope by reading the bidder's name on the
outside. No bid envelope will be opened for, bidder
identification or any other reason prior to the time
:;et for formal bid opening.
C. The withdrawal, or revision is completed prior to the
time set for opening of the bids. Revisions are
subject to the same requirements as all other bids.
No telefaxed or telegraphic bid revisions or withdrawals will be
accepted.
III. REJECTIO QF BID YBQPQLSALS:
Bid proposals may be rejected under any of the following
conditions:
A. If they show any alterations, erasures, irregularities
of any kind or additions not called for; if they are
conditional or incomplete; or if they fail to comply
with any of the requisite conditions.
B. If the Bidder is in arrears in any Payments owing to
the City or is in default of any obligation to the
City; or is a defaulter as surety or otherwise upon any
obligation to the City; or, has failed to perform
faithfully and diligently any previous contract with
the City.
In addition, the City reserves the right to reject any or all bid
proposals and waive any defects when in its opinion such
rejection or waiver will be in the best interest of the City.
The right is reserved by the City to reschedule the bid opening
or re -advertise 'for bid proposals if such action is desired by
the City.
IV. f1IQ._PEP_QS.1T:
All bid proposals must be accompanied by cash, a certified check
or cashier's check on a solvent financial institution doing
business within the State of Alaska, payable to the City of
Kenai, in the amount of $2,000.00. The City reserves the right
to cash such check and hold the Proceeds thereof pending the
execution of the contract.
IB-2
M
VI.
CONTRACT AWARD:
A. The lease award, if made, will be made by the City
Manager for, the City of Kenai, or his official
designee.
B. In the case of any discrepancy between the words and
figures in the Bid Proposal, the words shall, govern.
C. The Contract award, if made, will be to the highest
responsive qualified bidder based upon the following-
1. The total one-time premium to be paid to the City
for the right to lease the premises.
2. The conformity of the Bidder to all of the terms,
conditions, and prerequisites set forth in the bid
documents.
3. Best interest of the City of Kenai as determined
by the City Council.
EXECUTION OF CONTRACT:
A. Execution of Agreement - Within fifteen (15) calendar
days after the successful bidder has received from the
City the )ease agreement for signature, the Bidder must
sign and the City must receive the lease agreement
together with any additional monies reqUired Pursuant
to the guarantee advance and the one-time premium
stipulated under Item VII below. Upon execution of the
agreement by the City, the successful bidder's bid
deposit, shall be credited against the rent guarantee
payable by the bidder Linder said agreement for, the
first two (2) months of the contract term.
B. Failure to Execute Lease - Failure to execute and
return the agreement together with the guarantee
advance, so that they are received by the City within
fifteen (15) calendar days after the successful bidder
has received the agreement for, execution shall be just
cause for the annulment of the award and for f ' or " fe - itUr- ' e
of the bid deposit to the City. If the successful
bidder refuses or fails to execute and return the
agreement, together with the required warantee advance
the City may award the agreement to the next highest
responsive qualified bidder. If any such bidder to
whom the agreement Is so awarded refuses or fails to
execute and return the :5,,ame.- in the time specified, such
bidder's bid deposit shall likewise be forfeited to the
City.
I B - 5
Vil. PUAR,!NNTFM A-EM6MCE:
The bidder must <�UbMit the one-time Premium and
advance guarantee payment to the City when returning the executed
copies of the contract as, required under Item VI above if the hid
deposit required is not sufficient. Said advance guarantee
payment shall be the first two (2) months' rent guarantee offered
by the successful bidder, less the remains of the bidders
$2,000.00 Bid Deposit. Said advance guarantee Must be made by a
certified check or cashier's check on a solvent financial_
institution doing business within the State of Alaska, payable to
the City of Kenai (i.e., one-time premium + two months' rent of
$2,000 = amount to be remitted).
VIII. RETURN OF BID DEPOSITS:
Bid deposits submitted by unsuccessful bidders will be returned
to them as soon as possible A-F-T-E-R,the agreement has been signed
by the successful bidder, and the City, or if all bids are
rejected, all bid deposits will- be returned.
Ix. TIEBIDS':
In the event of a tie bid by qualified bidders, the tie will be
broken by awarding the agreement to the bidder, would be in the
best interest for the City of Kenai.
X. PRE -BID CONFERENCE:
A pre -bid conference for all Potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99611, on
1989, beginning at 10.00 a-m. The conference will be
conducted by the Airport Manager, and will include a general
information briefing, a question and answer session, and an
inspection tour of the subject Property.
XI. 6EN_€RAL CONTRACT INFORMATION:
The City may require of any bidders signed surety guarantees from
all principals, agents, directors, stockholders, and/or, officers
of the Successful bidding entity.
Xii- O.T-.H.E-R---.RE,GU-I.REME.NT-S-:
Bidders are.- responsible for carefUllY examining all documents
relating to this agreement and -should Ji-idge for, themselves all
the circumstances and conditions affecting their bid Proposal.
Failure on the part of any bidder, to make such examination and to
I B-4
inve-,ti,,jate thoroughly shall not be grounds for, any claim that
the bidder did not, understand the conditions of the bid proposal.
All bidders should also thoroughly familiarize themselves with
the SUbject property conditionG.
XIII. GENERAL CONTRACT INFORMATION.:
A. The City of Kenai is offering an opportunity to do
business on City lands and does not in any way
guarantee a profit.
S. The effective date of the contract shall be ten (10)
days after execution of the lease.
C. fhe City may require of any bidders signed surety
guarantees from all principals, agents, directors,
stockholders, and/or officers of the successful bidding
entity.
D. Improvements, -facilities, fixtures, equipment and
things on, in or appurtenant to the leased premises are
leased "as is,", "where is" and without any warranties
implied or, otherwise, or representations whatsoever,
including warranties of fitness for a Particular
purpose or, warranties of merchantability. It shall be
expressly understood that the maintenance repair and/or
rer�lacernent, if needed, of facilities, fixtures,
equipment and things on, in or appurtenant to th(-
leased premises are the sole responsibility of the
bidder.
B I_Q_[Short Form #2 RFPI
CITY OF KENAI
KENAI MUNICIPAL AIRPORT TERMINAL
Date:
City of Kenai
210 Fidalgo Street
Kenai, Alaska 99611
Gentlemen:
The undersigned (Person, partnership, joint venture,
corporation), hereinafter called the Bidder, hereby offers to
enter into a Lease Agreement covering certain rights and
privileges on lands within the City of Kenai. In connection with
this offer and in addition to all terms of the proposed lease,
the bidder offers to pay the following one-time premium of:
o__u,__n_t_,_),_____,___ _ —DOLLARS
This offer is made subject to the terms and conditions of the
Invitation for Bids dated and the
Instructions to Bidders and Specimen Lease Agreement issued by
the City as part of the offering for the subject Property.
Attached hereto and made a Part of this offer are the following:
1. A bid deposit in the amount of $2,000.00 in the
following form:
Cash, certified or cashier's check on a solvent
financial institution doing business within the State
of Alaska, payable to the City of Kenai. The Bidder
hereby acknowledges the City's right to cash such check
immediately following bid opening and to hold the,
proceeds thereof until the award process is completed.
2. Within fifteen (15) calendar days after receipt of
notice and acceptance of offer by the City of Kenai, the Bidder
will execute and deliver the Lease agreement, together with the
required Guarantee Advance and one-time Premium and any required
bonds and insurance certificates to: City Manager, City of
Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611. Said Guarantee
BP-1
Advance will be the first two (2) months' rent guarantee offered
by the successful bidder, less the remains of the bidder's
$2,000.00 bid deposit. zind will be in the form of cash, certified
check, or c-ashier's check on a nolvent financial institution
doing business in the 1,3t:ate of Alaska (i.e. , one-time premium +
two months' rent of _ - $2,000 = amount to be remitted).
It is understood and Horeed by the Bidder, that failure to execute
and return the lease agreement, tociether with all required items,
in the time specified, shall constitute a breach of this offer on
the part of the Bidder, and that upon such breach the deposit
hereinabove referred to shall be forfeited to the City of Kenai.
Time is of the essence in the execution and performance of the
obligations under this Lease agreement.
This offer may be accepted or rejected by the City of Kenai by
written notice to the Bidder, at the address stated on Page BP-2.
Sincerely,
Name of Bidding Corporation,
Company, or Person
Signature
By
Individual Surety
Individual Surety
CORPORATE ACKNOWLEDGMENT -
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
(CORPORATE SEAL)
THIS IS TO CERTIFY that on this
....._..._._.__. day of
, 198. —, before me, the undersigned, a Notary
Public in and for the State of Alaska, duly commissioned and
sworn, personally appeared ----....___._.._........___.__ known
to me and to me know to be the
of -- -- _w. _ ------- - --- - _----__--- , the corporation which
executed the foregoing instrument, and he acknowledged to me that
he executed the same for and on behalf of said corporation, and
BI - 2
that he is fully authorized by said corporation so to do; and
that the corporate seal affixed to said instrument is the
corporate seal of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year above written.
Notary Public in and for, Alaska.
My Commission Expires:
I NQ I V I DUAL
STATE OF ALASKA
) -ss.
THIRD JUDICIAL DISTRICT
THIS IS TO CERTIFY that on this day of
before me, the undersigned, a Notary
Public in and for the `State of Alaska, duly commissioned and
sworn, personally appeared known
to me and to me know to be the person(s) named herein and who
executed the foregoing instrument, and (he, she, they)
acknowledged to me that (he, she, they) signed the same as (his,
her, their) free and voluntary act and deed with full knowledge
of its contents, -ror the uses and purposes therein mentioned.
IN WITNE33 WHEREOF, I have hereunto set my hand and affixed
my official seal the d�.iy and year above. written.
Notary Public in and for Alaska.
My Commission Expires.
BP -,�,
CITY OF KENAI (Short Form #2 RFP]
KENAI MUNICIPAL. AIRPORT TERMINAL
LEASE AGREEMENT
THIS LEASE, made and entered into this day of ......
19___,__, by and between the City of Kenai, hereinafter referred to
as CITY, a body corporate under the .laws of the State of Alaska,
with offices at 210 Fidalgo Street, Kenai, Alaska, and ____.._._�_...__..
hereinafter referred to as the LESSEE.
WITNESSETH:
That for and in consideration of the rent to be paid by LESSEE for
the operation of the facility and surrender of the same in good
condition to the CITY at the termination of this lease and other,
consideration given by the LESSEE herein, the CITY hereby leases
to the LESSEE, and LESSEE takes and leases in an "as is" condition
from the CITY, premises described and shown on the attachment
labeled Exhibit "A" and made a part hereof, including all
equipment, -fixtures, furniture, and personal property existing
thereon, at the time of execution of this lease, which equipment,
fixtures, furniture and personal property are more fully shown. nn
the attached Exhibit "W' and made a part hereof.
Said leased area shall hereinafter be referred to as "the
Premises."
TO HAVE AND TO HOLD the same Premises unto LESSEE, subject to the
conditions and covenants herein contained, for the term hereinafter
specified.
The parties hereto further covenant �_ind agree as follows:
ARTICLE__!
Perm of Lease
The initial term of this lease Shall be (, ) years,
commencing ten (10) days after execution of this lease, and
terminating at midnight on the __.. _ _ Upon
termination of this Lease, improvements including, but not: limited
to, those listed and described under the attached Exhibits A & B,
shall revert to the CITY and further upon the termination of this
Lease, all equipment, ft.irniture, and fixtures on the leased
premises under provisions hereof and all fixtures appurtenant to
L_CA - 1 LESSOR:
such buildings, including but not limited to those constructed by
LESSEE, shall be and become-- the property of the CITY.
R.e.rl-tal ... A.Mo-w-ri.t.
LESSEE shall pay to the City as rent for-, the use of the Premises
the following:
$ ---- - ---------------- per month. In addition, LESSEE agrees to pay sales
tax on the monthly rental as determined by Borough and City
ordinances. Late payments shall be SUbJect to Penalty and interest
as provided by City C'ode.
The Premises and trade fixtures, -f-bopiRitur-a and equipment under this
Lease are owned by the CITY. LESSEE shall be subject to taxation _tA
l Upon all personaProperty owned by CITY and used on or in
connection with the leased Premises. LESSEE covenants to Pay any
taxes as may be lawfully assessed against any real or personal
property upon the Premises, including, but not limited to, taxes
assessed for fiXtUre,<.-, and the leasehold interest.
ARTICLEII
Pur1?q�e__tftn4___Imp _npvements
LESSEE shall provide for, the operation and maintenance of the
leased Premises as a gift shop/bar/reSt.HL.Arant.
Public U!��e and iNon-discriminat ion
I - _____ ...........
A. The LESSEE agrees that the facilities and the other
improvements Provided for herein shall. be equally -available, to all
members of the public without discrimination. Any discrimination
by the LESSEE in the use (if any faciJity hereinabove described on
grounds of race, sex, religion or national origin shall be deemed
to be a material breach of this L-ease and grounds for cancellation
of the Lease.
B. The LESSEE agrees that he will not discriminate against
any employee or applicant for employment, to be employed in the
performance of this Lease with respect to his hire, tenure, terms,
conditions or privileges of employment or, any matter directly or
indirectly related to employment because of age, except when based
on a bona fide occupational qualification, or because of race, sex,
religion or national origin. LESSEE understands that any such
discrimination shall be deemed to be, a material breach of this
Lease.
LCA - 2 LESSOR,
LFSSEE:
ARTICLE II,I,
Possession and Maintenance
LESSEE shall have sole possession of, and r,esponsibi.lity for-,
maintenance of the Premises, including, but not )_i.mited to, all.
improvements constructed thereon Find fixtures, rnd equipment
existing on the proper,t:y at the commencement of the lease and
thereafter :installed by either LESSEE or C:(TY. The CITY shall have
the right to inspect the Premises and to impose reasonable
regulations to insure proper care, maintenance, and upkeep of the
Premises. The degree of maintenance shall be In keeping, with
similar Premises. The CITY, through i.ts City Manager, shall have
the right to require that the Premises and improvements thereon
meet general standards of other like facilities.
The CITY may advise the LESSEE in writing of any deficiency in
maintenance of the Premises. The deficiency shall be corrected
within thirty (30) days, or within an appropriate period as may be
otherwise agreed.
Improvements, facilities, fixtures, equipment and things on, in or
appurtenant: to the leased premises are leased "as is" and without
any warranties or representations whatsoever, including warranties
of fitness for ,:a particulrar, purpose or warranties of
merchantability.
ARTICLE IV
Qpt�rat_i on
A. In its operation on the ).eased premises, LESSEE shall
observe all applicable Federal, States and Municipal 1-aws and
health, safety, and well-being of the public.
B. LESSEE shall. at its expense, meet the requirements of
local and state health departments covering the handlin« and
dispensing of food arid beverages, it applicable. Adequate toilet
facilities in accordance with state and local regulations shall be
provided and maintained at locations on the premi ser�_ Refuse Find
waste materials shall be handled as required by applicable state
and local laws, ordinances and regulations.
C. t..ESSEE agrees to pay all public: utility bills for
electricity, gas, water, and all other utilities used or consumed,
on the Premises and to procure at its expense all meters, and
permits necessary for meakinra connections and continuing') utility
services.
D. LESSEE_ agrees, subject to Article XII of this lease, to
continuously operate the facility during the period of the lease.
For purposes of this lease, "continuous operation" means that the
LCA - 3 I._E_S`>QR :
LESSEE:
facility is open for business on a daily basis (Sundays and
holidays excepted at LE,5SEF's option) and for such hours as Would
be reasonable for similar facilities existing on the Kenai
Peninsula. Hours of operation shall be attached to Public exterior
doors.
ARTICLE V
During the term of this Lease, 1_ES,_E)FF-- shall Procure and keep in
force, or .:shall where appropriate, require LESSEE'S contractors
and subcontractors to procure and keep in force, the following
insurance:
A. Workmen's Compensation Insurance, sufficient to meet State
of Alaska statutory requirements, including $100,000.00
employer's liability coverage, protecting all employees of LESSEE
and employees of its contractors or subcontractors during the term
of this Lease.
B. Comprehensive General Liability Insurance, including
limits as to bodily injury liability of $500,000.00 for each
Occurrence and $500,000.00 in aggregate and, as to property
damages, liability of $500,000.00 for each occurrence and
$500,000.00 in aggregate. Insurance policies required by this
paragraph shall name LES-SEE as Insured and the CITY as an
additional inSUred. Cinch inSMArance shall be made effective prior
to the beginning of operation of the Premises.
C. Fire, Vandalism, Molicious Mis5chief, and extended coverage
insurance coveriri<..) all improvements by LESSEE during the term of
this lease in Hn E,MOLAnt equal to at least eight$8o%) Percent of
the full insurable replacement value of such building above
foundations. �'-;LAC-h -inSUrance policies shH11 be issued in the Joint
names of the CITY and LESSEE and shall be payable to the CITY and
LESSEE, as their respective interests may appear.
Duplicate originals or certificates of all insurance policies
required hereunder shall be delivered to the CITY prior to
occupation of the Premises by LESSEE. The entire amount collected
for losses under any fire and extended coverage policies shall be
held under Joint control of the crry and LESSEE and shall be made
available to repair, restore, or rebuild the damaged improvements,.
Any excess part of the insurance furid remaining after the cost of
repairs, rebuilding or restoration is paid, shall he paid to the
LESSEE. In the event the insurance flAnd is insufficient to cover
the cost of repairs, rebUildino or restoration, the excess cost
shall, be borne by LESSEE.
I -('A - 4 LESSOR:
L E 5 S E .-
D. Reassessment of insurance needs may be made by t:ITY at
any time to determine whether or not, in the City's sole
determination, the coverage shall be used.
E. LESSEE agrees that thirty (30) days notice in writing
shall be given the CITY in the event of cancellation, termination
or- material change of any insurance policy required hereunder.
ARTICLE-. —
Ass gnment _of.-_t-base
Except as provided in this paragraph, this Lease shall not be
assigned in whole or in part, unless and until the CITY approves
such assignment in writing, which approval shall not be
unreasonably withheld. Upon written request by the CITY, the
identity of the holder or, holders to any mortgage, deed of trust
or =.eOUrity instrument and all individuals, corporations, or
parties having a financial interest as secured parties, investors
or shareholders with the LESSEE in this lease, shall be provided
to the CITY by LESSEE within thirty (30) days of such request,
LESSEE shall have the ristht to sublease the Premises for uses and
purposes which are in accord with the provisions of this Lease,
only upon written approval by the CITY, which approval shall not
be unreasonably withheld.
ARTICLE V,II
P:7: etl e__.of__,_Lease
It is understood that in borrowi.nca Funds LESSEE cannot place a
mortgage on the Premises or the fixed improvements placed thereon.
However, it is contemplated that LESSEE may be required to borrow
funds for the initial con-struction of improvements and that from
time to time during the term of this t_.ease it may be desirable or
convenient for LESSEE to borrow additional funds for additional
improvements, alterations, repairs or for other purposes.
Accordingly, it is agreed that LESSEE shall at all times during the
term of this lease have the right to grant rights of security in
this Lease and the leasehold rights of LESSEE created by this
Lease, provided, however, that any such rights of security shall
at all times be subject to the right, title and interest of the
CITY as owner of the Premises and fixed improvements placed thereon
and the right of the CITY to require the payment: of all rentals due
hereunder and the fu).). and faithful performance of the covenants
and conditions of this Lease. Subject to any such rights of
security, the CITY shall have a lien upon all personal property not
daily exposed to sale, owned by I__ESSEE and used on the Premise to
secure the payment of the rentals as they respectively come due
hereunder.
l..C:A - 5 LESSOR:
LESSEE-
In the event at any time during the term Or this Lease, LESSEE, or
anyone holding under LESSEE shall be in default of any of the
covenants or conditions of this lease, then and in such event,
before forfeiture is invoked by the CITY, the holder of any rights
of security granted by LE 54SFE hereunder may make any and all
payments and do and perform any and all acts and things which may
be necessary Or, required to prevent a forfeiture of this Uease, and
the party making such payments or performing such acts or things
shall thereby and thereupon be subrogated to all rights of the
LESSEE under this Lease. The CITY agrees, that, it requested in
writing by the holder, of any such rights of security, the CITY will
send to the said holder at the address specified in Such written
request copies of all written notices or, demands which the CITY may
serve upon LESSEE or anyone holding under LESSEE under and pursuant
to the terms of this lease or otherwise.
It is understood, however, that the holder of Such rights of
security, shall in no way be liable to the CITY for the payment of
any rent or for the performance of any other covenant or conditions
Linder, this Lease until such time as it shall acquire by conveyance
from the LESSEE, or by the foreclosure or other proceedings
provided by law or by the terms of any written instrument, all the
ri<ihts, title and interest of the LESSEE under this lease;
provided, however, that any party who shall acquire said rights,
title and interest of the LESSEE, as above provided, shall
thereupon and thereby become liable for, the full performance and
all payments theretofore and thereafter required to be fnade by
LESSEE under, the covenants and conditions of this Lease, as fully
and completely and to the same extent as the LESSEE itself would
have been if it still had retained its right, title and interest
hereunder.
ARTICLE VIII
•
Cancellation and Forfeiture
In the event LESSEE shall be declared bankrupt according to law,
or if any assignment shall be attempted to be made of this Lease
for the benefit of creditors (other than as herein permitted) or
if LESSEE shall abandon the leased premises or in the event rental
due hereunder remains unpaid for thirty (30) days after notice of
nonpayment given to LE53SEE', then in any of said events, the CITY
may declare the Lease to be terminated and may enter into and Upon
the land covered by this Lease or any part thereof and repossess
the same (including any and all improvements and installed
fixtures) and expel the LESSEE and those Claiming Linder it and
remove its effects, forcibly if necessary, without being deemed
guilty Of any manner of tr,e,->pass and without prejudice to any Other
rernedieF, which might otherwise be LJSEad for por.session or- -for,
arrears of rent.
LCA -- 6 LFSSOR:
ARTICLE_, Ix
Indemnification
LESSEE E shall protect, indemnify :and save harmless the CITY from
and aciainst any and all claims, demands, and causes of action of
any nature whatsoever for, injury to or death of persons, or, Joss
or damages to property, occurring on the Premises or in any manner
growing out oil or connected with the LESSEE'S use and occupation
of the Premises or the condition of the Premises during the germs
of this Lease.
AR_T z C E—K
Waiver of Default
Any waiver by the CITY of any default or breach of this Lease shall
not be construed to be a continuing waiver of such default or
breach nor as a waiver, or permission, express or implied, of any
other or subsequent: default or breach.
ARTICLE..__XI,
Force _Ma.Jeure
If by reason of strike, lockout, war, rebellion, material or, labor
shortage due to a national emergency, -fire, 'flood, hurricane or
other casualty, periods of excessive rain, or by any other matter -
not within its control, the CITY or, t_.ESSFF= in good faith and
without fault or neglect on its parts is prevented or, delayed in
the construction of any condition except as relates to rental
payments or, th(� maintenance of i.nsur,ance which, under the terms of
this Lease, it is required to do so r-)e}rforrn within a specified
period oil time, the period of time within which :such performance
was to have been completed shall he extended by e-i Period of time
equal to that of such delay or prevention, and the CIl'Y or LESSEE,
as the case may be, shall not be deemed to be in de:tault: if :it
diligently performs and completes such work or covenant or
condition in the manner required by the terms of this [...ease within
the specified period of time as so extended.
ARTICLE XII
General Cl.ausPs
A. All references to the parties to that; lease G3nd a.l l
covenants, conditions and lease ac3reements of this Lease shell l
apply to and be bind:in"a Upon the CITY and LF•SSFE and their
respective heirs, executers, admi_ni<str�ators, legal re pre- sent atives,
successors and assigns (when assignment ;i_ts made in with the
provisions hereof) ay if they were in each case fully named and
!_CA -- 7 L.F 'SOR:
stated. In this Lease both the CITY and LESSEE are referred to in
the singular and neuter gender. However, such words and all other
terms and words used in this Lease regardless of the number and
gender in which they tire used, shall be deemed and construed to
include any other number (singular or pli-iral) and any other, gender,
masculine, -feminine or neuter, as the sense of the writing herein
may require, the same as if such words had been fully and Properly
written in the reouired number and gender.
8. All notices to the, CITY shall be sent by certified or
registered mail addressed to the City Manager, City of Kenai, 210
Fidalgo Avenue, Kenai, Alaska, 9961.1, or at such other address as
the CITY may in writing from time to time designate by written
notice to the LESSEE. All notices to LESSEE shall be sent by
certified or registered mail addressed to LESSEE at ...
or at si-ich other address as LESSEE
may from time to time designate by written notice to the CITY.
C. This (,-ease is made under the applicable laws of the State
of Alaska and if any term, CIBU-Se, provision, part or, portion of
this Lease .�shalL be adJudged invalid or, illegal for, any reason the
validity of any other part or portion of this Lease shall not be
affected thereby and invalid or illegal term, clause, provision,
part or portion shall be deleted and ignored as if the same had not
been written.
D. Venue for any dispute arising out of this lease shall be
in the trial courts for the State of Alaska, Third Judicial
District at Kenai.
E. This Lease may be altered, modified or amended only be
written instruments signed by LESSEE and the CITY and approved by
the City Council of the CITY.
IN WITNESS WHEREOF, the parties hereto have caused this instrument
to be signed and sealed the day and year first above written.
MATED: This day of 1.989.
CITY OF KENAI: L E S S F7,'E :
Wm. J- Brighton
City Manager ------
LCA - 8 LESSOR:
LES`'-EE:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on t h i s __... __....�_ day of _...__---
19891 being personally known to me or
having produced satisfactory evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument.
......... ._
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
s
THIRD .JUDICIAL DISTRICT- )
THIS IS TO CERTIFY that on this: ..._...___._ day of
1989, WILLIAM J. BRIGHTON, City Meinac4er of the City of Kenai,
Alaska, being personetIIy known to me or having produced
satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the
foregoing instrument on behalf of said city.
Notary Public in and for Alaska.
My Cornmis, >ion Expires:_..._ --
Approved as to lease form by City Attorney.
Approved by Finance Director.
Approved by City Manager
Lease Approved by Counc i l on
.._..-_._____......______. _--
7anet RLJOtSala, City C lerkv
LCA - 9 LESSOR.
LESSEE:
DEPA
OF REVENUE
OF THE COMMISSIONER
The Honorable John J. Williams
Mayor
Kenai Peninsula Borough
210 Fidalgo
Kenai, AK 99611
Dear Mayor Williams:
I t
/1Y tje-ero
STEVE COWPER, GOVERNOR
P.O. BOX S
JUNEAU, ALASKA 99811-04W
PHONE. (907) 465-2300
TELEFAX: (907) 465-2389
�9S�s z � •���'
Enclosed is a copy of an information packet that I provided to the
Senate Advisory Committee on Municipal Taxation on Friday, June 16, 1989.
The packet contains draft legislation that is aimed at addressing
issues that have been identified under the oil and gas property tax
(AS 43.56). This draft has been prepared for the committee only, and is
not part of the Administration's legislative proposals for 1990.
This proposal would provide for two separate tax rates. The state
tax rate would be reduced from 20 mills to 10 mills. Local governments
would be allowed to tax up to a 20 mill cap on the AS 43.56 property
within their jurisdiction.
Twenty percent of the state income from the 10 mill tax is proposed
to be appropriated to the municipal assistance program under Title 29.
This money would be distributed to all municipalities in Alaska.
The draft bill makes other changes that are mainly technical in
nature.
If you or other members of your municipal government have comments on
this proposal or alternative proposals I would recommend that you provide
them to the Senate Select Advisory Committee as soon as possible. The
mailing address for the committee is: Department of Community and
Regional Affairs, Division of Municipal and Regional Assistance, 949 E.
36th, Rm. 406, Anchorage, AK 99508 -- the phone number is 561-8586.
04-02LM
RENTAL AGREEMENT
WHEREAS, a n _ _. 1g C-::i_ t y of Kenai
(CITY), whose "ddres5 is 210 Fid,algo Avenue. Kenai. Alaska. 99611,
.and the LESSEE whoss name and address is:
both agree to a Pental of the premises more aarti:cular described
as,
City of Kenai Municipal Airport Gift Shop Concession,
Space , consisting of sq.ft.
and the following terms which each has read and fully understands-,
1. DURATION: The term of this Agreement shall iDst vrom
month to month- Either party may terminate the agreement upon
thirty (30) dayo prior written notice r.o the ether at the above
address.
2.
AMOUNT: The monthly rental amount snail
__.
,e
DOLLARS (Y i
-uhic:h
must be
tendered on
the first: day of each month in advance.
A late
charge
of
� MLLA S t ti_
), will
be charged
if the payment does not arrive by the r
i T irn Oay
of the
month. If
the rental payment does not ,arrive by We tenth
day of
the month,
a late charge of
will be
nharqed,
and in
addition,
the CITY may give notice of eviction,
and the
LESSEE
agrees to quit the premises
3. SECURITY DEPOSIT_: The parties agree that a security and
cleaning deposit oP_
DOLLARS ($ ) , will be given by the LESSEE to the CITY
which may be used to ensure that the premises will be left in good
order, normal wear excepted, which said deposit may not be used as
a portion of the last month's rent. The remaining portion of this
deposit will be returned to the LESSEE within fourteen (14.) days
after vacation of the premises.
4. UTILITIES: The '-ESSEE shall ray the following items that
are checked: water C ) , sewer 1, refuse [ _I , ass t. 1 ,
telephone L ], and/car electricity I_ ) , and the I ESSEE ,..hall pay
those not checked.
1 - RENTAL AGRE:EMEW
[Short Form 1#1
l.eHse'I
PROPERTY FOR LEASE
KENAI MUNICIPAL AIRPORT TERMINAL
KMC 21.10
The City of Kenai has property to be known as the Airport
Terminal available for lease. The lease rate shall be
_..._DOLLARS Per month. The
lease is subject to all provisions of review and approval
established for all other applications.
Date Wm. J. Brighton
City Manager
( Short Form tt 1 Lease j
LEASE OF
AIRPORT FACILITIES
THIS AGREEMENT, entered into this; ....____._.__._ day of
1989, by and between the CITY OF KENAI, 210
Fidalgo Street, Kenai, Alaska 9961.1, a home -rule municipal
corporation of Alaska, hereinafter called "City", and
individually and _..__ whose address
hereinafter called "Lessee".
That the City, in consideration of the payments of the
rents and performance of all the covenants herein contained by
the Lessee, does hereby demise and lease to the Lessee the
following described property in the Kenai Recording District,
State of Alaska; to wit:
is:
That area of the Kenai f Unic;i.pal Airport Terminal
Building facility described and shown on the attachment
labeled Exhibit "A" and made Fi part hereof, including all
ectuipment, fixtures, furni.tUre and personal property
existing thereon, at the time` Of execution of this lease,
which stri,ictUres and personal property are more fully
shown can the attached Exhibit "B" Find made a part hereof.
A. Pr)RP01`3E,: The? PurpU.he for which the Lease is issued
The exclusive ri. -Iht to operate a bar concession -for
retail sale of liquor, by the drink in the Kenai Municipal.
Airport Terminal HUJ_lcl:i.n<j,
B. TER,M_: The term of this Lease is for * years, commencing
on the day of *, to t:t-)e .....- day of *.
C. RENTAL _PAYMENT: Subject to the terms of General
Covenant No. 7 of this Lease, rental.. 'for the above -described
land shall be payable as fellows:
1. The annual rental rate shall be 6% of the fair
market value (as set forth and defined in General Covenant No.
7) of the demised premises. The rental. effective
shall be $ per month, plus applicable sales tax, based
on a value of $348,000, subJec.t to redetermination pursuant
to General Covenant No. 7.
2. Annual rent for the fi!�cal. year beginning July 1
and ending Ji_ane :30 shell be payable in advance on or before the
first day of July of ea(;h year. Y-f they annual rent exceeds
$2, 400, then the Lessee may opt at: they time of they execution
hereof or at the beginning of each new lease year to pay rent
LCA-1 LESSOR.
in equal monthly installments, payable in advance on or before
the first day of July and on or before the first of each month
thereafter.
Rental for any period which is less than one (1)
year shall be Prorated based on the rate of the last full year.
4. In addition to the rents specified above,
subject to General Covenant No. 7, Lessee agrees to pay to the
appropriate parties HA levies, assessments, and char57ies as
hereinafter provided:
(a) Taxes pertaining to the leasehold interest of
the Lessee.
(b) Sales tax now enforced or levied in the future
(omputed upon rent payable in monthly installments
whether rent is paid on a monthly or yearly basis.
( c- ) Lessee agrees to pay all, taxes and assessments
levied in the -FtAtUre by the City of Kenai, as if Lessee
was considered the legal owner of record of
the leased property.
(d) Interest at the rate of eight percent (8%) per
annUM and ten percent (10%) penalties of any amount
of money owed under this Lease which is not Paid on
or before the date it become,-, due.
D. GENERAL COVENANTS-
1. ASSIGNMENT OR SUBLETTING: Lessee with City's
prior written consent, which will not be unreasonably denied,
may assign, in whole or in part, its rights as Lessee
hereunder.
Any assignee of part or all of the leased
premises shall assume the duties and obligations of the Lessee
as to such part or all of the leased premises. No such
assignment, however, will discharge Lessee from its duties and
obligations hereunder.
2. COSTS AND F'XPENSES: Costs and expenses incident
to this lease, including but not: limited to, recordins) costs
shall be paid by Lessee.
-1 TF<EATMENT OF DF-MYSE: lhe Lessee a�..irees to keep
the premi-ses clean and Jn good order at its own expense,
allowing no damage, waste, nor destruction thereof, nor,
removinv any material therefrom, withOUt written permission of
the City. At the expiration of the term fixed, or, any sooner
t. CA-2 LESSOR.
(-ESSEE:
determination of the Lease, the t_essee will peaceably and
OUietlY quit and surrender the premises to the City.
e.. PAYMENT OF RFNT: Check,,i, bank drafts, or, postal
money orders c>hall. be made payable to the City of Kenai and
delivered to the City Administration BL4ildinq, Kenai, Alaska.
5. CONSTRUCTION APPROVAL..... -
AND STANDARDS: Building
.....
construction shall be neat and presentable and compatible with
its Uses and SUrroundings. Prior to construction on a leased area,
the Lessee shall submit a plan of proposed development of property
to the City Airport Commission which shall be approved in writing
for all permanent improvements and confirmed by the City Council.
6. DEFAULj RIGHT OF ENTRY: Should default be made
in the payment of any portion of the rent or fees when due, or
in any of the covenants or conditions contained in the t_ease or,
in any reqLUationss now or hereinafter in force., then in such
event the City -shall by written notice give Lessee thirty (30)
days to cure SkACI-) default or defaults, after which it the
default is not cured, the City may terminate the Lease, reenter
and take possession of the premises, and remove all persons
therefrom.
7. RE NT ESCAI...AT 1 0 N In the event this Lease is for
a term in excess of five (5) years, the amount of rents or fees
specified herein shall, at the option of either party, be sub,it-,ot
to redetermination for increase or decrease based on
the percentage rate (set in C.1 above) of fair market value.
No increase or decrease in the amount of rents or -fees shall be
effective, until after thirty (30) days written notice. Fa i r
Market Value is defined as "the highest price estimated :in
terms of money which a property will bring if exposed for
on the open market allowing a reasonable period of time to find
a purchaser who buys with knowledge of all the uses to which it
is adapted and for which it is capable of being Used". This
Fair Market Value will be based on the condition of the 1�ind on
the date of this lease plus the value of improvements,., if any,
made by the City subsequent to the date of this Lease which
would affect the value of the r)roperty.
At each five (5) year interval, the City will.
have the fair market value determined by a qualified
independent appraiser.
8. LFA.S7E LJT11j/A_J._J_()_N_: Leased lands shall [:)e
utilized for PLArinoses within the scope of the application (mm-d(_
a part of this Lease and attached hereto), the terms of the
Lease, the term,- of the deed ender which the land was granted
to the City (and any releases pertinent: thereto), in
conformity with the ordinances of the City and Boroucjh, with
LCA-3 LESSOR:
Kenai Airport Regulations, and in substantial conformity with
the compreL-,eansive plan. Utilization or development for other,
than the allowed uses shall constitute a violation of the I.eiFase
and Subject the Lease to cancet..1 ation at: any time. Failure to
substantially complete the development plan of the land,
consistent with the proposed use and terms of the Lease, shall.
constitute grounds for cancellation.
9. CONDITION_OF _PREMI-SE' S: The premises demised
herein pare improved and care leased on an " as is, where i s "
basis.
10. UNDERLYING TITLE: The interests transferred, or
conveyed by this Lease are subject to any and all of the
covenants, terms, or conditions contained in the instruments
conveying title or other interests to the City.
:11. iZ,l;GHT_.._ :_-._INSPELT_Tt�N: City shall have thf. ris�4ht
at all reasonable times to enter the premises, or, ,:any prart:
thereof, for the purposes of inspection.
12. INDEMNIFICATION AND INSURANCE: Lessee covenants
to save the City harmless from all. actions, suits, liabi,l.i-ti.es,
or damages resulting 'from or arising out of any acts of
commission or, omission by the lessee, his agents, employees,
customers, invitees, or arising -From or out of they
occupation, or use of the premise's demised, or privileges
granted, and to pay all costs connected therewith.
Lessee, at thf� experist' of Lessee, Shall keep in
force, during the term of this acareement, insuraance i�iMAed by
responsible insurance companies authori-;red to do busine.tis in
Alaska, in forms, kinds and Hmounts> a�� determined and directed
by the City for the protection of City and/or, Les ref
Insurance recau:ireme'nt hereUnder shy -1-1. be subject to the sole
determination of the City.
Said insurance may include, but need not be
limited to insurance coverages commonly known as, or, similar in
kind to, public liability, praduc-ts liability, property d�image,
cargo, aircraft, fire, workmen's compensation, comprehensive?,
builders risk, and SLAch other insurance coverage gas cieemect
required in the sole determination of the City. All. policie>i
or endorsements thereto shall. in Fll cases wherN possible name
City as Additional Named Insured thereunder and :hall contain a
waiver of subrogation agegi_nst the City.
Upon approval by City of all insurance required,
in the forms, kinds and 8maunts directed to be procured, l esssee
shall deliver, all policy originals or duPlicate originals ,end
endorsements thereto to the City for incorporation within this-,
LCA-4- LESSOR:
LE SEE_:
agreement as attachment thereto. 7n any event, t_essee is not
to commence to exercise any of the rights and privileges
granted under, this agreement until such time as all insurance
directed and required to be furnished by Lessee is in full
force and effect.
Lessee expressly understands and agrees that any
insurance protection furnished by Lessee hereunder shall in no
way limit its responsibility to indemnify and save harmless
Lessor under the provisions of this agreement.
No policy of insurance shall be cancelled or
amended with respect to the City without thirty (30) days
written notice by registered or certified mail to City by the
insurance company.
�.lntil otherwise directed in writing by the City
Manager, Lesssee shall provide certificates of insurance within
thirty (30) days of the date hereof as -follows:
Comprehensive General Liability
Combined Single limit (Bodily
Injury and Property Damage)- $500, (300
Workmen's Compensation - Statutory Limits
Notwithstanding anything to the contrary, if
Lessee fails or neglects to secure required insurance or, if
said policy or, policies are terminated, altered, or, changed in
any manner not acceptable to the: City; then and in that event:
this lease may be cancelled and terminated, without penalty, on
five (5) days written prior notice to L.e> 5see.
1:5. COLLECTION ON UNPraIO,._MOiV.;LLS : Any or all rents,
charges, fees, or other con�-,i.deration which area due and unpaid
at the expiration of voluntary or involuntary termination or
cancellation of this Lease, >hal.t be a charge against the
Lessee and Lessee's property, r(-�al or personal, and the City
shall have such lien rights as are allowed by law, and
enforcement by distraint may be: made t:)y the City or its
authorized agent.
1.4. EASEMENT NT" GRANTS _.._RE;i.FRVE D: City reserves the
right to grant and control easements in, or above the land leased.
No such grant or, easement will be made that will unreasonably
interfere with the Lessee's use of the premises, and Lessee shall
have free access and use of any and all par -king and .Loading rights,
rights of ingress and egress now or hereafter appertaining to the
leased prem .see;.
L.CA _5 LESSOR:
LESSEE: _._
15. �_i A:3F SUB_ORDINATE__.TO_FINA_NC3,NG._.2F't�LJT_REFMFN-Y5•
Lessee agrees that City may modify this Lease, to meet revi.f.sed
requirements for f eyde:rnl or State grants, or to conform to the
requirements of any revenue bond covenant. However the?
modification shall not act to reduce the ri<ihts or s>r iv i..lecaE ss
granted the Lessee by t hi,; L.(.,-ase, nor, act to cause the f e:;see
financ:ial loss,'.
16. SURRENDER ....ON Lessee sh�:i11, on the
last day of the term of this Lease or upon any earlier
termination of this '...ease, surrender and deliver upon the
premises into the and use of City without fraud or
delay in good order, condition, and repair, except for reasonable
wear and tear since the last necessary repair,
replacement, restoration or renewal, free and clear of all
lettings and occupancies unless expressly permitted by the City
in writi.ns-j, and free and clear of al t .liens and encumbrances
other than those created by and for loans to City. Upon the
end of the term of this Lease or any earlier termination
thereof, title to the buildings, improvements and building
equipment shall automatically vest in city without requirement
of any deed, conveyance, or bill of sale thereon. However, if
City should require any such document in confirmation hereof,
Lessee shal), execute, acknowledge, and deliver the same and
shall pay any charge, tax, and fee asserted or imposed by any
and all governrnE=ntal units in connection herewith.
17. AIRCRAFTOPERATIONS
(a) There is hereby reserved to the city, its
successors and ass:igna, for the u!-e and benefit of the Public,-,
a right of flight for the passage of aircraft in the airspace
above the surface and all improvements approved by the City of
the premises herein conveyeci, together with the right: to c,.ause
in said afrspmce such noise as may be inherent in the operation
of aircraft, now or hereafter used for navigation of or, f'lisaht
in the air, using said airspace for landing at, taking off
from, or operating on the Kenai Airport. (When plans for
improvements pursuant to paragraph 5 are approved by the City,
the City to the extent of tho3o improvements releases the
easement here expressed.)
(b) 1he Lessee by accepting this conveyance
expressly agrees for itself, its representatives, succes3sors,
and assigns, that it will not erect nor permit the erection of
any structure or object, nor permit the growth of any trees on
the land conveyed hereunder, which would be an airport
obstruction within the standards established under the Federal.
Aviation Administration Re ou).ati.ons, Fart 77, as amended. In
they event the aforesaid covenant is breached, the City reserved-,,,
l_CA-6 L_ESSOR :
the right to enter on the land conveyed hereunder and to remove
the offending structury or object, and to out the offending
tree, all of which Shall be at.: the expense of the Lessees or its
heirs, successors or assigns.
19 . RIGHT O ENJOYMENT AND FE;ACEABLE POSSE S-331ON :
City hereby agrees and covenants that the Lessee, upon payina
rent and performing otter covenants, terms, and conditions of
this Lease, shall have the right to quietly and peacefully
hold, use, occupy, and enJoy the said leased premises, except
that any inconvenience caused by public works projects in or,
about the leasehold premises shall not be construed as a denial
of the right of quiet or peaceable possession.
20. LESSEE TO PAY TAXES: Lessee shall pay all
lawful taxes and assessments which, during the term hereof may
become a lien upon or, which may be levied by the State,
Borough, City, or•zany other tax levying body, upon any taxable
possessory right which Lessee may have in or to the property by
reason of its use or occupancy or the terms of this lease,
provided however, that nothing herein contained shall prevent
Lessee Prom contesting any increase in such tax or assessment
through procedures outlined in State statutes.
21. SPECIAL SERVICES: Lessee agrees to pay City a
reasonable charge for any special services or facilities
required by Lessee in writing, which services or, facilities are
not provided for herein.
22. NO PAR-rNERS1'iI F'_._ C)f1_.JOT_N'C'_.. VENTURE CREATED: It is
expressly understood that the City shall not be construed or,
held to be a partner or joint venturer of Lessee in the conduct
Of business On the demised premises; and it is expressly
understood and agreed that the relationship between the parties
hereto is, and stall at gall tames remain landlord and tenant.
23. DEFAULT BANKRUPTCY.,.___EF rC_.: If the Lessee shall
make any assignment for the benefit of creditors or shall be
adjudged a bankrupt, or if a receiver is appointed for the
Lessee or Lessee's assets, or any interest under this Lease,
and if the appointment of the receiver J.s not vacated within
thirty (30) days, or if a voluntary petition is filed under
the Bankruptcy Act by the Lessee, then and in any event, the City
may, upon giving they Lessee thirty (30) days' notice, torminatc:,
this ,lease.
214. NONDISCRTM_INAT1 N,: The Lessee, for hirnself, , Il.i
heirs, personal representatives, Successors in interest, and
assigns, as a part of the consideration hereof, does hereby
covenant and agree as a covenant running with the land, that:
LCA-7 LESSOR:
LES_yE:_E :
(a) No r)erson on the grounds of race, color, or,
n�.tional ori5:jin shall be excluded from part:icipi�-Ition
in, dt3!ni.ed the benefiit.ss of, or, be otherwise subjected
to discrimination in they us,e a-f said facil.iti_e<s;
(b) in the construction of any improvements on, over,
or Under such land and the -Furnishing of services
thereon, no person on the grounds of race, color, or
national orivi-n �,hal..l be excluded from participation,
denied the benefits of, or otherwise be sub.Jerted to
discrimination;
(c) The Lessee shall use the premises in compliance
with all other requirements imposed by or pursuant to
Title 49, Code of Federal Regulations, Department of
Transportation, Subtitle A, Office of the Secretary,
P�irt 21, Nondiscrirnination in Federally -assisted
Programs of the Department of Transportation -
E.ffectuation of Title VI of the Civil Fights Act of
1964, and as said Regulations may be amended.
(d) 'In the event 'Facilities are constructed,
maintained, or otherwise operated on the said
proPert:y described in this Lease, for a purpose
involving the prevision of similar services or
bone! .its, the Lessee shall rn�i:intain and operate such
facilities and services in compliance with all other,
re-Ml ir-ements J,MPosed pursuant to Title 49, Code of
Federal Regulations, Department: of Transsportrition,
` tAit i t le A, Office of the Secretary, Part. 21,
Nondiscrimination in Federally --assisted Programs of
they DePF.irtrnent of Transportation - Effectuation of
Title VI of the Civil Rights Act of 1964, and as said
Re^ iu l at i ons mHY be amended.
24. P.ARTzAI,_ INVAL.•1_QATY: If any term, provision,
condition, or part of this lease is declared by a court of
competent jurisdiction to be invalid or unconstitutional, the
remaining terms, provisions, conditions,;, or parts shall
continue in full 'force and effect as though such declaration
was not made.
25. MODIFICATIONS: No lease may be modified orally
or in any manner other than by an agreement in writing, signed
by all parties in interest or their successors in interest.
Any such modification shall rf,gU i re COLAr')C i 1 approval.
26. WAR KAN_rY: i'he City doe's not warrant that the
property which is t:he subiect of this Lease is suited for the
LCA-3 1__E'SSor,?
use author^izeh_, ar't, and no quarante�� is given or implied
that: it shall b ita:a£sZr car skjitztt,,e to employ the property
to such use.
27. 1" ZGkiT_..,r� _ CCU------ -qn" .ty reserves the might
to adapt, Hmend, anti eriforce reason; ,rules and rec,u,, a&ions
governing the demised premises and the
facilities used in connection therewith. Exce`r,"t.,.:,n ceases raf
emergency, no rule or r(-- lqul.ation hereafter adopted or, c'imCr,dwa
by the City shall become applicable L.rnless Lessee has been
given thirty (30) days notice of adoption or amendment thereof.
28_ NON- E_IABi1TK: City shall not be .liable to
Lessee for any diminution or deprivation of possession, or of
Lessee's right hereunder, on account of the exercise of any
such right or authority as provided in this or the preceding
section, nor shall L-essee be entitled to terminate the whole or
any portion of the leasehold estate herein created, by reason
of the exec-cise of Such rights or, authority, unless the
exercise thereof shall so interfere with Lessee's use and
Occupancy of the leasehold estate as to constitute a
termination in whole or in part of this lease by operation of
law in accordance with the laws of the State of Alaska and of
the United States made applicable to the states.
29. FINANCING;:
(a) For the purpose of interim or permanent
financing or refinancing from time to time of the improvements
to be placed upon the leased premise's, and for no other
Purpose, Lessee, after giving written notice thereof to the
City, may encumber, by martoage-,, deed of trust, assignment or,
other appropriate instrument, Lessee's interest in the leased
premises and in and to this lease, provided such encumbrance
pertains only to such leasehold interest and does not pertain
to or create any interest in Ci.t:y's title to the leased
premises. If such mortgage, deed of trust, or assignment :hall
be held by a bank or other established lending or financial
institution (which terms shall include an established insurance
company and qualified pension or profit sharing trust) and such
institution shall acquire the Lessee's interest in such Lease
as a result of a sale Linder said encumbrance pursuant to a
foreclosure or other remedy of the secured party, or through
any transfer in lieu of foreclosure:, or through settlement of
or arising out of any pending or, contemplated foreclosure
action, such lending institution shall hHve. the privilege of
transferring its interest in such LeaFe to a nominee or a
wholly owned subsidiary corporration with the. prior consent of
the City, provided, however, such transferee shall assume all
of the covenants and conditions reciL fired to be performed by they
Lessee, whereupon sr.ich .lending institution shall be relieved of
LCA-9 LESSOR:
LE'SSE. E ;
any "fi_rr+r,.ur kiabil _wnea�-s 5�uch Less<:,e� from any default after
such transfer. Such -i e'e` . i nea t :i t y *�..i c�:� or t i-) riomi nee or
wholly owned .subsidiary cor�rf°ta,,ay`t:,.) w;1i<.t� ar oaiay have
transferred such Lease, or any oer ths ,� �, wh:i:c'l
may at any time acquire such lease shall. k,���rt �� car L�etY
further liabi.lity under Such 1E:ase from and after tr' 'n fir"!r o
such lease.
('b) A leasehold mortgagee, beneficiary of a
deed of trust; (.)lr security assignee, sh::al. l have and be
subrogated to any and all rights of the t_essee with respect to
the curing of any default hereuride-r by I...essee.
(c,) If the holder of any such mortgage, or the
beneficiary of any such deed of trust, or the security assignee
shall give the City before any default shall have occurred in
the Lease, a written notice containing the name and post office
address of such holder, the, City shall thereafter calve to Such
holder a copy of each notice of default by the Lessee at the
same time as any notice of de -fault shall be given by the City
to the Lessee, and the City will not thereafter accept any
surrender or enter :into any modification of this Lease without
the prior written consent of the Folder of any first mortgage,
beneficial interest under a first deed of trust, or Security
assignee, in this Lease.
(d) If, by reason of any default of the Lessee,
either this lease or any extension thereof shall be terminated
at the election of the City prior to the stated expiration
therefor, the City will enter into a new Lease with they
leasehold mortgagee for the remainder of the term, effective as
of the date of such termination, at the rent and additional
rent, and on the terms herein contained, �,ub7ect to the
following conditions:
( 1 ) Such mortcaagee, beneficiary or,
security assignee, shall make written request to the City for
such new Lease within twenty (2.0) days after the date of Such
termination and such written request shall be accompanied by a
payment to the City of al). sums then due to the City under this
Lease.
(2) Such mortgagee, beneficiary, or
security assignee, shall pay to the City, at the time of the
execution and delivery of such new lease any and all sums due
thereunder in addition to those which would at the time of the
execution and delivery thereof be clue under this L_e?ase but for -
such termination, and in addition thereto, any reasonable
expenses, including legal and attorneys' -fees, to which the
City shall have been subJected by reason of such defaL.al.t.
!._C:A-10 LE=_"SC>C)R:
(S) Such mortgagee, beneficiary, or
security assignee shall, on or, before the execution and
delivery of such new Lease, perform all the other conditions
required to be per -Formed by the lessee to the extent that the
Lessee shall have failed to perform such conditions.
(e) If a lending institution or its nominee or
wholly owned subsidiary corporation shall hold a mortgage, deed
of trust, or similar security interest In and to this Lease and
shall thereafter acquire a leasehold estate, derived either
from such instruments or 'From the City, and if such
institution, nominee, or corporation shall desire to assign
this Lease or any new Lease obtained from the City (other than
to a nominee or to a wholly owned subsidiary corporation as
permitted by the above provisions) to an assignee who will
undertake to perform and observe the conditions in such Lease
required to be performed by the Lessee, the City shall not
unreasonably withhold its consent to such assignment and
assumption, and any such lending institution, nominee, or
subsidiary shall be relieved of any further liability under
Such Lease from and after Such assignment. If the proposed
assignor shall assert that the City is unreasonably withholding
its consent to any such Proposed assignment, such dispute shall
be resolved by arbitration.
30. AMENDMENT OF LEASE: Notwithstanding anything to to
the contrary, in order- to aid the Lessee in the 'Financing of
the improvements to be situated herein, City agrees that in the
event the Proposed mor,t:<iac_4e&, beneficiary, or Security assignee
under any interim or Permanent loan on the security of the
leasehold interest of the Lessee and the improvements to be,
situated thereon ::�o require�, the City will make a reasonable
effort to amend this Lease in order to satisfy such
requirements upon the express condition and understanding,
however, that such variance in language Will not materially
prejudice the City's right hereunder nor be such as to alter in
any way the rental ohli(:iations of the Lessee hereunder nor its
obligations to comply with all existing laws and regulations of
the City relating to the leasing of airport lands, and to all
applicable Federal statutes, rules and regulations, and all
covenants and conditions of the deed by which the City holds
title to the land.
31. COMPLIANCE WITH LAWS: Lessee shall
Comply With
all applicable laws, ordinances, and regulations of public
authorities now or hereafter in any manner affecting the leased
premises or the sidew-alks,, alleys, streets, and ways adja. cent
thereto or any buildings, structures, f iXtUres and improvements
or the use there -of, whether or not any Duch laws, ordinances,,
and regulations which may be hereafter enacted involve a change
LCA - 1. 1 LESSOR:
LESSEE:
of policy on the part of the governmental body enacting the
same. Lessee aqree`a to hold City -financially harmless:
(a) From the consequences of any violation of 5LICh
laws, ordinances, and/or reClUlations; and
(b) From all claims for, damages on account of
injuries, death, or Property damage resulting from
such violation.
(C) Lessee -further agrees it will not permit any
unlawful occupation, business, or trade to be
conducted an said premises or any use to be made
thereof contrary to any law, ordinance, or regulation
as aforesaid with respect thereto, including zoning
ordinances, rules and regulations.
>2. C'- ARF ' tOF PREMISES:
SES: Lessee, at its own cost and
expense shall keep he leased premises, all improvements which
a t any time during the term of this Lease may be situated
thereon, and any and all appurtenances thereunto belonging, in
good condition and repair during the entire term of this Lease.
33. SANITATION: The I essee shall comply with all
regulations or ordinances of the City which are Promulgated for
the Promotion of sanitation. -'he premises of the lease shall
be kept in neat, clean, and sanitary oondition, and every
effort shall be made to prevent the pollution of water.
34. L E'S S E F ' QBi .1 GAI I.Q.N-f,0_RF MOVE L I ENS 1_es_-:i5ee
will not permit any liens including, bLAt not limited to,
mechanics', labort?rs' , or materialmen's liens obtainable or
available Under the then existing laws, to stand aoainst the
leased premises or improvements for, any labor or, material.
furnished to Lessee or claimed to have been furnished to Lessee
or to the Lessee's agents, contractors, or sublessees, in
connection with work of any character performed or claimed to
have been Performed on said premises or, improvements by or, at
the direction or sufferance of Lessee, orovided, however,
Lessee shall have the right to Provide a bond as contemplated
by Alaska law and contest the validity or amount of any such
lien or claimed lien. On final determination of such lien or
such claim for lien, Lessee will immediately pay any JLjd<iement
rendered with all proper cc.)::its and charges and shall have ,u.Ach
lien released or judgement satisfied at: Lessee's own expense,
35. CONDEMNATION': s' ' fn the event the leased �-)remises
or any part thereof hall be condemned and taken for a Public
or 8 qUaSi--PLAblic use, then UPOt-I payment of any award or,
compensation arising from such condemnation, there shall be
such division of the proceeds, such abatement in rent Payf-A-_)le
LCA--l.2 LFSSOR:
I.-ESSEF: ... .......... -
during the term or any extension of the term hereof, and such
other adjustments as the parties may agree upon as being just
and equitable under all the circumstances. If the City and
Lessee are unable to agree within thirty (30) days after such
ari award has been paid into Court, upon what division, annual.
abatement: in rent, and other adjustments are just and
equitable, the dispute shall be determined by arbitration.
36. PROTECTION OF SUBTENANTS: To Protect the
position of any subtenant(s) hereafter, properly obtaining any
interests in the leasehold estate granted Lessee hereunder,
City agrees that in the event of the cancellation, termination,
expiration, or surrender of this Lease (the ground lease), the
City will accept the Subtenant, its successors and assigns, as
its lessee for a period equal to the full unelapsed Portion of
the term of the Sublease, including any extensions or renewals
thereof, not exceeding the term of this Lease, upon the -same
covenants and conditionF.-, therein contained, to the extent that
said covenants and conditions are not inconsistent with any of
the terms and conditions of this Lease, Provided such subtenant
shall make full and complete attornment to the City for the
balance of the term of such sublease so as to establish direct
privity of estate and contract between the City and the
subtenant with the same force and effect as though such
sublease was originally made directly between the City and Such
subtenant; and Further provided SUC-1-1 subtenant agrees to comply
with all the provisions of the ground lease and all the terms
of any mortgage, deed of trt4st, or Security assignment to which
such leasehold e�itate is subject, except the Payment of rent
under the ground lease and the payment of any debt service
under any such mortgage, deed of trust, or security assignment.
37. SUCCESSORS IN INTEREST: This Lease shall be
binding upon and shall inure to the benefit of the respective
successors and assigns of the parties hereto, subject to such
specific limitations on assic-inment as are provided for herein.
38. Gt')V.E-RNIN.G__[-.A,W: This indenture of Lease shall be
governed in all respects by the laws of the State of Alaska.
39. NOTICES:
(a) Any notices required by this Lease shall be
in writing and shall. be deemed to be duly given
only if delivered personally or mailed by
certified or registered mail in a prepaid
envelope addressed to the parties at the address
set forth in the opening paragraph of this lt�ast>
unless such address has, been chansied Pursuant to
LCA-1,3 LESSOR:
sub -Paragraph (b) hereafter, and in that case
shall to the most recent: address so changed.
Any notice so mailed shall be deemed delivered
on the date it is deposited in a U.S. general or
br-anch post office.
The City shall also mail a copy of any notice
given to the Lessee, by registered or certified
mail, to any leasehold .lender (mortgagee,
beneficiary of a deed of trust, security
assignee) who shall. have given the City notice
of such mortgage, deed of trust, or security
assignment.
(b) Any such addresses may be changed by an
appropriate notice in writing to all other
parties affected provided such change of address
is given to the other parties by the means
outlined in paragraph (a) above at least titteen
(15) days prior to the giving of the particular
notice in issue.
40. t,HTS MORTGAGEE ORLIENHOLDER: In the event
of cancellation or forfeiture of a lease for cause, the holder
of a property recorded mortgage, deed of trust, conditional
assignment or collateral assignment will have the option to
acquire the Lease for the unexpired term thereof, subject to
the terms and conditions as in the original lease.
41. E�NTRYANO HE-E-NTRY: In the event that the Lease
should be. terminated as hereinbefore provided, c,r by summary
proceedings or otherwise, or in the event that the demised
lands or any part thereof should be abandoned by the Lessee
during said term, the Lessor or, its agents, servants, or
representatives may, :irrimediatel.y or any time thereafter,
re-enter, and resume possession of said lands or -such part
thereof, and remove all persons and property therefrom, either
by summary proceedings or by a suitable action or, proceeding at
law without being liable for any damages therefor. No re-entry
by the Lessor shall. be deemed an acceptance of a surrender of
the Lease.
42. RETENTION .OFRFNTA1_: In the event that the
Lease should be terminated because of any breach by the Lessee
as herein provided, the rental payment last made by the Lessee
shall be retained by the lessor as partial or total liquidated
damages for said breach.
43. WRT,TTE:N _WA [VfµR: The receipt of rent t:',y the
Lessor with knowledge of any breach of the Lease by the
or any default on the part of the I.-essee in observance or,
LC=A-14 LESSOR:
LESSEE-
_
performance of any of the conditions or covenants of the Lease,
shall not be deemed to be a waiver of any provisions of the
Lease. No failure on the part of the kessor to enforce any
covenant or provision therein contained, nor any waiver of any
right thereunder by the Lessor, unless in writing, shall
discharge or invalidate such covenants or provisions, or affect
the right of the Lessor to enforce the same in the event of any
subsequent breach or default. The receipt, by the Lessor, of
any rent or any other sum of money after the termination, in
any manner, of the term therein demised, or after the giving of
the Lessor of any notice thereunder to effect such termination,
shall not reinstate, continue, or extend the resultant term
therein demised, or destroy, or in any manner impair the
efficacy of any such notice of termination as may have been
given thereunder by the Lessor to the Lessee prior to the
receipt of any such sum of money or other consideration, unless
so agreed to in writing and sioned by the Lessor.
44. BUILDING AND ZONLNG CODES: Leased lands shall
be utilized in accordance with the building and zoning
ordinances and rules and regulations of said authority.
Failure to do so shall constitute a default.
45. The Lessee will take all
reasonable Precautions to prevent, and take all necessary
action to suppress destructive or uncontrolled fires and comply
with all laws, regulations, and rules promulgated and enforced
by the City for fire protection within the area wherein the
leased premises are located.
46. MUTUAL CANCELLATIO Leases in good standing
may be cancelled in whole or in part at any time upon mutual
written agreement by Lessee and the City Council.
47. PROHIBIlfa: Lessee shall not allow
the leasehold premises to be used for an unlawful purpose.
48.
[TIES: The issuance by
the City of leases does not relieve the Lessee of
responsibility of obtaining licenses or permits as may be
required by duly authorized Borough, State or Federal agencies.
49. NOIIIE OF_gONITTUCTION: Lessee agrees to notify
the City in writing three days prior to commencing any
construction project valued in excess of $500.00 upon the
property. Lessee agrees to assist in the posting of a notice
of non -responsibility and maintenance of the notice upon the
property during construction. Lessee agrees that in the event
of the Lessee's failure to notify the City as provided above,
LCA-15 LESSOR:
LESSEE:
Lessee shall indemnify the City against any materi_al.men' s liens
as defined in AS 34..35.050 which arise as a result of
construction upon the premises.
IN WITNESS WHEREOF, the parties hereto have hereunto suet
their, hands, the day and year staters in the individual
acknowledgments below.
LESSOR:
CITY OF KENAI
BY.
i_ESSEE :
By.
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
William J. Brighton
City Manager
THIS 1.-; TO CERTIFY that on this . _...._..___�_ day of _..__.__.____._......_..s 1988,
being personally known to me? or
having produced satisfactory evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument on behalf of said Corporation.
Notary Public for Alaska„`
My Commission Expires:
STATE OF ALASKA )
)SS
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _._......_._____. day of 1986,
veiny personally known to men or -
having produced satisfactory evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument.
Notary Hubli.c for Alaska
My Commission Expires:
LCA-16 LESSOR
STATE OF ALASKA )
laa
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of
19__^ WILLIAM J. BRI8HTON, City Manager, of the City of Kenai'
Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and
acknowledged the volunterr and authorired execution of the
foregoing instrument on behalf of said City'
Notary Public for Alaska
My Commission Expires:
Approved as to lease form by City Attorney
Approved by Finance Director
Approved by City Manager
Lease approved by Council on
Janet Huotsala, City Clerk
LCA-17 LESSOR:
LESSEE:
CITY OF KENAI
210 FIDALGO STREET
KENAI, ALASKA 99611
CONTRACT DOCUMENTS RELATING TO
KENAI MUNICIPAL AIRPORT TERMINAL
RESTAURANT CONCESSION
INVITATION FOR BIDS
RESTAURANT CONCESSION
TERMINAL
KENAI MUNICIPAL AIRPORT
Sealed bids for the exclusive right to operate a restaurant
concession at the Kenai Municipal Airport will be received at the
City offices, 210 Fidalgo Street, Kenai, Alaska, 99611. All bids
must be received no later than 2:00 p.m., on
1989, at which time and place they will be publicly opened and
read.
Bids may also be mailed to City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received in the office of the
City Manager, no later than 2:00 p.m. on 1989, to be
considered.
All interested parties, including Disadvantaged Business
Enterprises, are encouraged to submit bid proposals. No person
shall be excluded on the grounds of race, color, religion, sex,
or national origin.
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 9961!, on
1989, beginning at 9:00 a.m. The conference will
be conducted by the City of Kenai Airport Manager ana will
include a general information briefing, a question and answer
session and an inspection tour of the concession space in the
Terminal.
The bid documents :manifesting the terms and conditions of this
concession offering may be examined and/or obtained from the City
of Kenai Airport Manager, 210 Fidalgo Street, Kenai, Alaska,
99611 (Telephone: (907)283-7951).
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the city
hereby reserves the right to re -advertise for Bid Proposals or to
reschedule the bid opening, if such action is desired by the
City.
DATE: , 1989
Wm. J. Brighton, City Manager
City of Kenai
ADVERTISED:
INVITATION FOR BIDS
RESTAURANT CONCESSION
KENAI MUNICIPAL AIRPORT TERMINAL
Sealed bids for the exclusive right to operate a restaurant
concession, for the purpose of providing a restaurant with the
sale of food for the convenience of the traveling public at the
Kenai Municipal Airport will be received at the City offices, 210
Fidalgo Street, Kenai, Alaska, 99611. All bids must be received
no later than 2:00 p.m., on , 1989, at which time
and place they will be publicly opened and read.
Bids may also be mailed to the City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received in the office of the
City Manager, no later than 2:00 p.m. on 1989, to be
considered.
All interested parties, including Disadvantaged Business
Enterprises, are encouraged to submit bid proposals. No person
shall be excluded on the grounds of race, color, religion, sex,
or national origin.
The contract being offered is designated as the Restaurant
Concession Agreement and is briefly summarized as follows:
I. CONCESSION TERM:
The rights to operate the Restaurant Concession shall begin
on August 1, 1989 and terminate on July 31, [19971 1992.
II. PREMISES:
1,735 sq. ft. as shown on the attached Exhibit "A" and
incorporated by reference herein, including restrooms and
storage area, Terminal Building, Kenai Municipal Airport.
III. RIGHTS GRANTED:
The exclusive right to operate a restaurant concession in
the Kenai Municipal Airport Terminal Building.
B-1
IV. ONE-TIME PREMIUM
The bidder who, in addition to meeting all other
requirements of the bid package, offers the highest one-time
premium will obtain the right to lease subject to all
provisions of review and approval established for all other
lease applications.
V. CONCESSION FEES:
The successful bidder will be required to pay a monthly
concession fee of ONE THOUSAND FIVE HUNDRED DOLLARS ($1,500)
This monthly concession fee shall be in addition to the one-
time premium amount. In addition, an annual sMrcharae of
five .percent (5%) on Qross sales of $150,000 shall be
collected.
VI. BID DEPOSIT:
A bid deposit with the amount of $500.00 must be submitted
with each bid proposal.
VII. BIDDER QUALIFICATIONS:
In order to participate in this bid offering, a bidder must
be able to demonstrate that since January 1, 1978 he has had
at least three (3) years of [DIRECT] experience in the
operation of a [RESTAURANT] retail business with gross sales
of at least [$150,000.00] $100,000 per location per year.
Vill. ADVANCE GUARANTEE PAYMENTS:
Upon award of the contract, the successful bidder will be
required to execute the contract and pay to the City the
one-time premium plus the rent guarantee offered by the
successful bidder for the last two (2) months of the
contract term, less the $500.00 bid deposit already
submitted.
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99611, on March 17,
1989, beginning at 9:00 a.m., Alaska Standard Time. The
conference will be conducted by the City of Kenai Airport
Manager and will include a general information briefing, a
question and answer session and an inspection tour of the
concession space in the Terminal (if requested).
B-2
t
The bid documents manifesting the terms and conditions of this
concession offering may be examined and/or obtained from the City
of Kenai Airport Manager, 210 Fidalgo Street, Kenai, Alaska,
99611 (Telephone: (907) 283-7951). The documents include: (1)
the Instructions to Bidders; (2) the Specimen Special Use Permit;
(3) the Bid Proposal Form; (4) the Bidder's Affidavit Form; (5)
Bidder's Questionnaire; and this (6) Invitation for Bids.
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the City
hereby reserves the right to re -advertise for bid proposals or to
reschedule the bid opening, if such action is desired by the
City.
DATE: June , 1989
Wm. J. Brighton, City Manager
City of Kenai
B-3
INSTRUCTIONS TO BIDDERS
RESTAURANT CONCESSION AGREEMENT
KENAI MUNICIPAL AIRPORT TERMINAL BUILDING
I. BIDDERS•
All bids must be made on the Bid Proposal form furnished by the
City (attached hereto), must be properly executed as provided
thereon, and be addressed and delivered to the office of the City
Manager, City of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611,
no later than 2:00 p.m., on _ , 1989. Bids may also
be mailed to the City Manager, City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received at the office of the
City Manager no later than 2:00 p.m., on , 1989 to
be considered.
Each Bid Proposal must be submitted in a sealed enveiope wnicn is
clearly marked on the outside with the Bidder's name ana the
following label:
"Restaurant Concession aid Proposal - Kenai Municipal
Airport."
To be complete, a bid proposai must consist of the following:
A. A completed, signed, and notarized bid proposai (Pages
BF-1 to 3P-4).
B. A completed, signed, and notarized Affidavit (Pages BA-
1 to BA-2).
C. The required Bid Deposit.
D. A completed and signed Bidder's Questionnaire (Pages
BQ-1 to BQ-6).
No late or telegraphic applications will be accepted. When
received by the City, all bids become the property of the City.
When bids are opened, all bid proposals and supporting documents
and statements become public information.
II. BID REVISION/WITHDRAWAL:
A bidder may withdraw or revise a bid proposal after it has been
deposited in the office of the City Manager, 210 Fidalgo Street,
Kenai, Alaska, 99611, provided:
IB-1
A. The Bidder submits a written request for return of his
bid proposal. (The request must be signed by the
bidder, or a duly authorized agent or officer of the
bidder, and notarized.)
B. The City is able to clearly identify the bidder's
sealed bid envelope by reading the bidder's name on the
outside. No envelope will be opened for bidder
identification or any other reason prior to the time
set for the bid opening.
C. The withdrawal or revision is completed prior to the
time set for opening of the bids.
No telegraphic bid revisions or withdrawals will be accepted.
III. BIDDER QUALIFICATIONS:
In order to submit a bid, a bidder must be able to demonstrate
that he has at least three (3) years of (DIRECT] experience in
the operation of a (RESTAURANT] retail business with gross sales
of at least [$150,000.00] $100,000 per location per qualifying
year.
Further, the bidder must be able to demonstrate that the three
(3) years of required experience occurred within the period of
January 1, 1978 to January 1, 1989 and that the bidder was the
principal operator of said business(es). (Please refer to the
Bid Questionnaire for specific requirements.)
IV. REJECTION OF APPLICATIONS:
Bid proposals may be rejected under any of the following
conditions:
A. If they show any alterations, erasures, irregularities
of any kind or additions not called for; if they are
conditional or incomplete; or if they fail to comply
with any of the requisite conditions.
B. If the Bidder is in arrears in any payments owing to
the City or is in default of any obligation to the
City; or is a defaulter as surety or otherwise upon any
obligation to the City; or has failed to perform
faithfully and diligently any previous contract with
the City.
IB-2
C. if the Bidder fails to demonstrate that he has the
experience required under Stem III (Bidder
Qualifications) above.
In addition, the City reserves the right to reject any or all bid
proposals and waive any defects when in its opinion such
rejection or waiver will be in the best interest of the Citv.
The right is reserved by the City to reschedule the bid opening
or re -advertise for bid proposals if such action is desired by
the City.
V. BID DEPOSIT•
All Bid Proposals must be accompanied by a certified check or
cashier's check on a solvent financial institution doing business
within the United States of America, payable to the City of
Kenai, in the amount of $500.00. The City reserves the right to
cash such check and hold the proceeds thereof pending the award
of the concession contract.
VI. CONTRACT AWARD:
A. The contract award, if made, will be made by the City
Manager for the City of Kenai, or his official
designee.
B. The bidder must be capable of performing all of the
terms and conditions of the contract being offerea.
The City may request the bidder to furnish additional
information, including financial information, to
determine if the bidder is qualified.
C. In the case of any discrepancy between the words and
figures in the Bid Proposal, the words shall govern.
D. The contract award, if made, will be to the highest
responsive qualified bidder based upon the following:
1. The total one-time premium to be paid to the City
for the right to lease the premises.
2. The conformity of the bidder to all of the terms,
conditions, and prerequisites set forth in the bid
documents.
IB-3
VII. CONCESSION AGREEMENT:
A. Execution of Agreement - Within fifteen (15) calendar
days after receiving the agreement for signature from
the City, the bidder must sign and return the agreement
together with the guarantee advance stipulated under
Item VIII below and the one-time premium. Upon
execution of the agreement by the City, the successful
bidder's bid deposit, together with the guaranteed
advance, shall be credited against the rent guarantee
payable by the bidder under said agreement for the last
two (2) months of the contract term.
B. Failure to Execute Lease - Failure to execute and
return the agreement together with the guarantee
advance, so that they are received by the City within
fifteen (15) calendar days after the successful bidder
has received the agreement for execution shall be just
cause for the annulment of the award and for forfeiture
of the bid deposit to the City. If the successful
bidder refuses or fails to execute ana return the
agreement, together with the required guarantee advance
the City may award the agreement to the next highest
responsive qualified bidder. If any such bidder to
whom the agreement is so awarded refuses or fails to
execute and return the same in the time specified, such
bidder's bid deposit shall likewise be tort eited to the
City.
VIll. GUARANTEE ADVANCE:
The successful bidder must submit the one-time premium acid
advance guarantee payment to the City when returning the executed
copies of the contract as required under Item VI above. Said
advance guarantee payment shall be the last two (2) months' rent
under the contract term, minus the bidder's $500.00 bid deposit.
Said advance guarantee, plus the one-time premium must be made by
certified check or cashier's check on a solvent financial
institution doing business within the United States of America,
payable to the City of Kenai.
IX. RETURN OF BID DOCUMENTS:
Bid deposits submitted by unsuccessful bidders will be returned
to them as soon as possible AFTER the agreement has been signed
by the successful bidder and the City, or if all bids are
rejected, all bid deposits will be returned.
IB-4
X. TIE BIDS:
in event of a tiz bid by qualified bidders, the tie will be
broken by awarding the agreement to the bidder who has
demonstrated the most experience in the operation of qualifying
retail :merchandise sales business(es) since .January 1, 1975 , as
determined by a comparison of the aggregate years of verified
experience listed by the bidders in their Bid Questionnaire in
response to question No. 6 and No. 7.
XI. PUBLIC INFORMATION:
All bid proposals, including any and all documents and/or
statements submitted with a bid proposal, become the property of
the City when received by the City. Upon the onenina of sealed
bids by the City, all such information submitted with the bid
proposal becomes public information.
XII. PRE -BID CONFERENCE:
A pre -bid conference for all potential oidders will be field at
City Hall, 210 Fidalgo Street, Kenai, Alasxa, 99bil, on
1989 beginning at 9:UU a.m. 'The conference will
be conducted by the Airport Manager and will ircluae a general
information briefing, a question and answer session, ana an
inspection tour of the lease space in the Terminal.
XIII. OTHER REQUIREMENTS:
Bidders are responsible for carefully examining ail cocuments
relating to this agreement and judge for themselves dli to
circumstances and conditions affecting their bid proposal.
Failure on the part of any bidder to make such examination and to
investigate thoroughly shall not be grounds for any cldiin that
the bidder did not understand the conditions of the bid proposal.
All bidders should also thoroughly ramiliarize themselves with
the concession site conditions.
XIV. GENERAL CONTRACT INFORMATION:
A. The City of Kenai is offering an opportunity to do
business at the Kenai Municipal Airport and does not in
any way guarantee a profit for the operation of the
Terminal concession.
IB-5
B. The effective date of the contract shall be August 1,
1939 and shall terminate July 31, 1997.
C. The City may require of any Bidders, other than sole
proprietors, signed surety guarantees from all
principals, agents, directors, stockholders, and/or
officers of the successful bidding entity.
D. City shall require of the successful Lessee a bond in
the amount of the equipment costs in the event the
Lessee defaults on the terms of the lease.
IB-6
RENAI MUNICIPAL AIRPORT TERMIilAL
RESTAURANT CONCESSION AGREEMENT
BID PROPOSAL
PLEASE PRINT THE FOLLOWT" G
Business Name of Bidder .
d/b/a (if applicable) . . . . . .
Sut.-nitted bv. . . . . . . . . . .
jlTitle . . . . . . . . . . . . . .
'I
�I Business Mailing Address. . . . .
Telephone No. . . . . . . . . . .
BP-1
Timothy J. Rogers
City Altorney
CITY OF KENAI
210 Fipalpo
Ksnai. Alaska 99611
3031441
aav — .
BID PROPOSAL
KENAI MUNICIPAL AIRPORT TERMINAL
RESTAURANT CONCESSION AGREEMENT
Date:
City of Kenai
210 Fidalgo Street
Kenai, Alaska 99611
Gentlemen:
The undersianea (person, partnership, joint venture,
corporation), hereinafter called the Bidder, herezv offers to
enter into a restaurant Concession Agreement covering certain
riahts and privileges at the Kenai Municipal Airport and within
the Kenai Municipal Airport Terminal Building. In connection
with this offer the bidder offers to pay the following one-time
premium of :
Attached 'hereto and made a part of this offer are the Following:
1. Af-fitavit executed by the Bidder.
2. Completed and signed Bid Questionnaire.
3. Bid Q'Pposit in the amount o $500.00 in the following
form:
A certified or cashier's check on a solvent financial
institution doing business within the United States of
America, payable to the City of Kenai. The Kidder Hereby
acknowledges the City's right to cash such check immediately
following bid opening and to mold the proceeds thereof until
the award process is completed.
Within fifteen (15) calendar days after receipt of notice and
acceptance of offer by the City of Kenai, the Bidder shall
execute and deliver the Agreement, together with the required
Guarantee Advance and One -Time Premium to: Airport Manager, City
of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611. Said
BP-2
Timothy J. Rogers
City Attorney
CITY OF KENAI
210 F W frig*
Kensi. Alasaa gwi l
M au1
Cw tee• I...
Guarantee dvance and One -Time Premium shall be non-refundable
and shall be in the -`orm of a certified or casnier's check on a
solvent financial institution doing business in the United States
of America.
It is understood and agreed by the Bidder that =allure to execute
and return the Concession Agreement, Guarantee Advance and One -
Tine Premium payment in the time specified, shall constitute a
breach of this offer on the part of the bidder, and that upon
such breac::, the deposit hereinabove referred to shah be
forfeited to the City of Kenai. Time is of the essence in the
execution and performance of the obligations under this
agreement.
(Sign and notarize Page BP-4)
'I This offer :nay be accepted or rejected by t`e City or Kenai by
writtan notica to t.te Bidder at the address statea on Paae BP-l.
Sincerely,
Name of aid -der' s Corporation,
Company, or Person
Signature
By
Individual Surety
CORPORATE ACKZIOWLEDG14ENT:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
( CORPORATE SEAL)
THIS IS TO CERTIFY that on this day of
198 , before me, the undersigned, a Notary
Public in and for the State of Alaska, duly commissioned and
sworn, personally appeared known
to me and to me know to be the
of , the corporation which
BP-3
Tln othy J. Rogers
Gty Allorney
CITY OF KENAI
210 f idaloo
Ronal. Ali0M M11
283 ya4 1
executed the -foregoing instrument, and he acknowledged to me that
he executed the same for and on behalf of said corporation, and
that he is fully authorized by said corporation so to do; and
that the corporate seal affi.,:ed to said instrument is the
corporate seal of said corporation.
IN WIT14ESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year above written.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
T.I1S IS "O CERTI: Y t7at on this day ct
198, before me, the undersigned, a Notary
Public in and,zor the State of Alaska, duly commissioned and
sworn, personally appeared , known
to me and to me xnow to be the person(s) namea herein and who
executed the foregoing instrument, and (he, she, they)
acknowledgea to me that (he, she, they) signed the same as (his,
her, their) free and voluntary act and deed with full knowledge
of its contents, for the uses and purposes therein .Mentioned.
,TI__.:,,:SS WHEREOF, I have Hereunto set my iiand and affixed
my official seal the clay and year above written.
:dotary Public in and for Alaska.
1.1y Commission expires:
a,"
Th"othy J. Rogers
01y Attorney
CITY OF KENAI
210 F,asloo
ltenO. Masks "611
2l3-3u 1
BIDDER'S AFFIDAVIT
deposes and says:
being first duly sworn
I. The Affiant (as Bidder or as representative or
officer of bidder) has carefully examined all
documents relating to the Restaurant Concession
Agreement for the Terminal Buildina located on
Kenai Municipal airport;
II. The Bidder acknowledges that all the documents and
statements submitted with the Bid Proposal become
the property of the City when receivea by the City
and become public information once the bid is
opened;
III. The Bidder tiledherewitn is not mace in the
interest of or on benait of any unaisciosed
person, partnersnip, company, association,
organization, or corporation;
IV. T.he bid is genuine and not collusive or sham;
V. The Bidder has not, directly or indirectly,
induced or solicited any other bidder to put in a
false or sham zid ana has not directly or
indirectly colluded, conspired, cornivea, or
agreed with any bidder or anyone else to put in a
shah Did or that anyone shall regain from
bidding;
VI. The Bidder has not in any manner, directly or
indirectly, sought by agreement, communication, or
conference with anyone to fix any overhead,
profit, or cost element of such bid price or that
of any other bidder, or to secure any advantage
against the City of Kenai or anyone interested in
the proposed Concession Agreement;
VII. All statements contained in the bid and supporting
documents are true;
VIII. The bidder has not, directly or indirectly,
submitted his bid price or any breakdown thereof
or the contents thereof, or divulged information
BA-1
Timothy J. Rogers
Cwy Attorney
CITY OF KENAI
i10 FW4190
KMa. Alaaha 99611
M-3441
FAY on1 +n..
or dates relative thereto, or paid or agreed to
pay directly or indirectly, any money or other
valuable consideration for assistance or aid
rendered or to be rendered in procuring or
attempting to procure the Concession Agreement
above referred to, to any corporation,
partnership, company, association, organization,
or to any other member or agent thereof, or to any
other individual;
VIII. The Bidder will not pay or agree to pay, directly
or indirectly, any money or other valuable
consideration to any corporation, partnership,
company, association, organization, or to any
member or agent thereof, or to any other
individuals for aid or assistance in securing_ the
agreement above referred to in the event the same
is awarded to the Bidder;
Ix. The Bidder is not in arrears in any payments owing
to the City nor is he in default of any obligation
to the City; nor is he a defaulter as
surety or otherwise upon any obligation to the
City; nor has he failed to perform faithfully and
diligently any previous contract with the City.
Sianed at
day of
SUBSCRIBED and
Notary Public
this day
Timothy J. Rogers
Gty A110 mey
On this
198
Signature
Title
Individual Surety
SWORN to before me a
in and for the State of on
of , 198
Notary public in and for the State
of
My Commission Expires:
BA-2
CITY OF KENAI
210 FMslgo
K-IM.Alaska 99611
283 }eel
:ENAI :MUNICIPAL AIRPORT TERMINAL
RESTAURANT CONCESSION
BID QUESTIONNAIRE
All information requested in this Questionnaire rust be furnished
by the Bidder, and must be submitted with t1ae bid proposal.
Statements must be complete and accurate and be presented in the
form requested. Omissions, inaccuracies, or misstatements in an
Bidder's Questionnaire may, at the discretion of the City, be
grounds for rejection of an application.
1. Name of the Bidder exactly as it is to appear on the
Concession Agreement:
2. Mailing address of the Bidder for contract
administration purposes:
3. The Bidder, if selectect, intenas to operate t:ie
Concession as (cnecx one):
( ) Individual ( ) Joint Venture
( ) General Partnership ( ) Corporation
( ) Limited Partnersnip
4. If the Bidder will operate the concession as a
partnership or joint venture, attach a copy of the
partnership or joint venture agreement and answer the
following questions:
a. Name, mailing address, and share of each partner
or joint venturer:
Name Address Share
BQ-1
b. Date of Organization:
C. Agreement recorded at:
J
Borough/County/Judicial District
State Date
d. If partnership, or joint venture is registered
with the State of Alaska, Department of Commerce,
state date of registration:
5. If the Bidder will operate the Restaurant Concession as
a corporation, answer the following:
a. Date incorporated:
In what state?
b. If corporation is registered with the State of
Alaska, Department of Commerce to ao business in
the State of Alaska, state the date of
registration:
C. Maine, mailing address, amount of stock held
(number and type), and experience in the retail
sales business of the following corporate officers
and Board of Directors members:
CORPORATE OFFICERS
President• Name
Address:
Stock:
Experience:
Vice President: Name
Address:
Stock:
Experience:
Secretary• Name
Address:
Stock:
Experience:
Treasurer: Name
Address:
Stock:
Experience:
BQ-3
BOARD OF DIRECTORS
Chairman: Name:
Address:
Stock:
Experience:
Member• Name:
Address:
Stock:
Experience:
Member: Name:
Address:
Stock:
Experience:
BQ-4
iember • Name:
Address:
Stock:
Experience: _
Member: Name:
Address:
Stock:
Experience:
d. List the five (5) stockholders owning the largest
amount of stock in the corpora ion («t-xcluaing
corporate officers and Imen:Ders of the board of
Directors already listeo anaer Question No. 5(c)
above). Indicate name, mailing address, and
number and type of snares tie:id.
Name:
Address
Stock:
Name:
Address:
Stock:
BQ-5
Name:
Address:
Stock:
Name:
Address:
Stock:
Name:
Address:
Stock:
6. Attach a description of t1fte restaurant businesses which
the Bidder has.operatea since January 1, 1978. List
only those restaurant businesses which generated gross
sales in excess of $150,000.UO* per caienoar year. The
description must include the following inrormation for
each listed:
a. Business name.
b. The calendar years during which the business
generated annual gross sales exceeding
$150,000.00*.
C. The actual gross sales* generated by the business
for the calendar years listed in accordance with
paragraph (b) above.
d. The mailing address and telephone number of the
agency responsible for the operation of the
business, together with the name of the manager or
other contact who will be able to confirm the
accuracy of the data furnished by the bidder in
response to this Question No. 6.
:• .
* NOTE: All figures must be in U.S. dollars as
valued curing the calendar year to which reference
is made. No inflation adjustment for intervening
years -_s to be included.
7. Attach a description of other business(es)
which the Bidder has operated since January "!, 1978.
List only those business(es) which generated gross
sales in excess of $150,000.00* per calendar year per
single location. The description must include the
following information for each sucn business:
a. Location - Street address, city and state
(country, if not located in the USA).
b. Calendar years during which the business generated
annual gross sales exceeding $150,000.00*.
C. The actual gross sales* generated ny the business
for the calendar years listed in accoraance with
paragraph (b) above.
d. The mailing address, telephone number, and contact
name zor a municipal government agency, CPA firm,
or other indepenaent source(s) that can confirm
the accuracy of the data furnished by the bidder
in response to this Question ivo. I.
* NOTE: All figures rust be in U.S. collars as
valued during the calendar year to wnicn reference
is made. No inflation adjustment for intervening
years is to be included.
8. Financial References: Attach a list of at least two
(2) banks or other financial institutions with which
the Bidder regularly does business. Include name and
address of the banks or institutions as well as the
name and telephone number of an officer of each who can
verify the Bidder's financial standing.
9. Attach financial statements (balance sheets and
operating statements, if available, or annual reports,
if bidder is a corporation) for 1985, 1986, and 1987.
The financial statement for 3.987 must be subscribed by
the Bidder's chief financial officer and be accompanied
BQ-7
by a Certified Public Accountant's report for that
year. If the Bidder's 1987 financial statement was not
audited by a CPA firm, a copy of the Bidder's 1987
federal tax return must be submitted.
If the Bidder is a new partnership or joint venture,
submit only the financial statements of the business
entity which meets the experience and financial
requirements of this bid offering.
The undersigned hereby vouch for the truth and accuracy of all of
the statements, answers, and representations made in this
questionnaire, including all supplementary statements attached
hereto.
DATE:
(If Bidder is a partnership or joint venture, all partners
or members of the joint venture must sign; if Bidder is a
corporation, the signature of one duly authorized
representative is sufficient.)
BQ-8
Title
Title
Title
Title
'ritle
Title
210 FIDALGO STREET
KENAI, ALASKA 99611
RESTAURANT CONCESSION AGREEMENT
KENAI MUNICIPAL AIRPORT TERMINAL BUILDING
THIS AGREEMENT, made this day of by
and between the City of Kenai, hereinafter referred to as the
"CITY", whose address is 210 Fidalgo Street, Kenai, Alaska, 99611,
and I whose address is
hereinafter referred to as the
"CONCESSIONAIRE."
W I T N E S S E T H
WHEREAS, the CITY owns and operates the Kenai Municipal
Airport, located in Kenai, Alaska, hereinafter referred to as the
"AIRPORT"; and,
WHEREAS, in connection with the AIRPORT, the CITY owns the
Terminal Building, hereinafter rererrea to as the "TERMINAL"; and,
WHEREAS, the CONCESSIONAIRE desires to operate a restaurant
concession business for the purposes or providing a restaurant with
sale of food; and,
WHEREAS, the CONCESSIONAIRE was the successrui oidder for the
exclusive right to operate said restaurant concession business;
NOW, THEREFORE, in consideration of the premises and of the
charges, fees, covenants, and agreements contained herein, the
parties hereby agree to all conditions as foilows:
ARTICLE I
DEFINITIONS
For the purposes of this agreement, the terms listed below
will mean:
A. "Agreement": This Concession Agreement together with
all future amendments or supplements which may be
executed by the parties to this Agreement.
B. "Airport": The Kenai Municipal Airport, Kenai, Alaska
as it presently exists as of the date of the execution
of this Agreement.
C. "Airport Manager": The CITY's designated Manager at
Kenai Municipal Airport.
1 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
D. "In -Bond Merchandise": Merchandise which United States
Customs Service regulations (Title 19, Code of Federal
Regulations) permit to be sold under dutv or tax free
conditions.
E. "Terminal": The CITY's airline passenger terminal
building at the Airport, as it presently exists as of
the date of the execution of this Agreement.
F. "Food and Beverage for 'On Premises Consumption'": Food
and beverage items which are prepared and served to the
customer for immediate consumption on, or in the
immediate vicinity of a concession premises.
G. "Food and Beverage for 'Off Premises Consumption": Food
and beverage items which are packaged and sold for later
consumption by the customer outside the Terminal.
H. "Premises": The TERMINAL floor space !eased under this
Agreement by the CITY to the CONCESSIONAIRE for the uses
authorized in this Agreement, specifically to operate a
restaurant concession business for the purpose of
providing a restaurant and the sale of -food for the
convenience of the traveling public in said TERMINAL for
a concession retail space; all as shown on Exhibit "A",
attached hereto and made a hart hereof.
I. "Specialty Food Merchandise": Food items which have been
prepared, packaged, and sold for off -Premises consumption
only, specifically: jams and jelliaS; boxed candies,
nuts and fruits; fresi-i, frozen, canned, dried or
preserved meat and seafood products.
ARTICLE II
RIGHTS GRANTED
Insofar as the CITY is legally able to bind itself, the CITY
hereby grants to the CONCESSIONAIRE, subject to the terms,
conditions, and covenants contained herein, full authority to have
and to exercise the following rights:
A. EXCLUSIVE RIGHTS: The CITY ht�,by agrees not to permit,
nor confer any right upon, any person or company other
than the CONCESSIONAIRE. to exercise the following
"exclusive rights":
1. The exclusive right to use and occupy the Premises
for the purposes authorized herein.
2 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
2. The exclusive riaht to operate a restaurant
concession business in the TERMINAL for the purpose
o .)rovi ding a -estaurant *,vith the sale of food for
t_e convenience of the traveling public.
3. The foregoing exclusive rights specifically do not
include the following rights and privileges:
LA. 17HE SALE OF IN -BOND MERCHANDISE AS DEFINED IN
ARTICLE I HEREIN.
B. ANY AND ALL SALES OF MERCHANDISE FROM VENDING
MACHINES OR OTHER MECHANICAL DEVICES,
INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS:
COFFEE AND SOFT DRINKS, INSURANCE POLICIES,
THE DISPENSATION OF CASH, MONEY ORDERS AND
CHECKS, AND THE LIK-E.
C. THE SALE OF iCE CREAM :AND OTHER FROZEN
CONFECTIONS OF ANY KI.:D.
D . I'. E SALE OF U.S. POSTAGE STAMPS, TELEX OR
TELETYPE, SERVICES, COPY SERVICES, AND LONG
DISTANCE TELEPHONE SERVICES..I
'LEI A. The sale of any item or service for which
the CITY has granted exclusive concession
rights to others as oz 14arch i, 1989.
[F. THE SALE OF FRESH FLOWERS, POTTED PLANTS, AND
OTHER FLORIST ITEMS.
G. THE USE OF THE PREMISES FOR ANY LIVE
ENTERTAINMENT OR ACTIVITY INCLUDING, BUT NOT
LIMITED TO, MUSIC, COMEDY, COMMENTARY, OR
DANCING.
H. USE OF THE PREMISES FOR ANY PURPOSES WHICH THE
CITY HAS NOT SPECIFICALLY AUTHORIZED THE
CONCESSIONAIRE TO PERFORM UNDER THIS AGREEMENT.
I. THE SALE OF ANY ITEM OR SERVICE WHICH IS
INCLUDED IN THE EXCLUSIVE RESTAURANT OR GIFT
SHOP CONCESSIONS THE CITY IS CURRENTLY OFFERING
FOR LEASE. IT IS THE SOLE RESPONSIBILITY OF
THE BIDDER TO INQUIRE OF THE CITY WHICH ITEMS
AND SERVICES ARE INCLUDED IN THE EXCLUSIVE BAR
AND GIFT SHOP CONCESSIONS NOW OFFERED BY THE
CITY.]
3 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
B. GENERAL RIGHTS:
i. The right to ingress and egress and occupancy of
the premises by the CONCESSIONAIRE, its officers,
contractors, suppliers, service personnel, guest,
patrons and invitees, subject to the security rules
of the Airport.
2. The right to construct and install all fixtures,
equipment and other improvements necessary to
operate said concession, subject to the prior
written approval of the CITY as provided herein.
C. RESERVATIONS:
1. Other than the merchandise described in subsection
A(2) of this article, no other proauct, merchandise,
or service shall be sold by CONCESSIONAIRE without
the nrior written consent of the CITY. In the event
any question or dispute arises as to the sale of any
specific item or category of items on the Premises,
the CITY shall be considered the final authority in
resolving any said question or aispute. Decisions
rendered Dy the CITY in such questions or disputes
shall be delivered in writing to the CONCESSIONAIRE.
The CONCESSIONAIRE shall have the right to request
a CITY review of any such questions or disputes,
provided the request is made in writing.
2. The CITY specifically reserves the right to grant
to others the rights and privileges not specifically
and exclusively granted to the CONCESSIONAIRE. The
rights and privileges granted to the CONCESSIONAIRE
in this Agreement are the only rights and privileges
granted to the CONCESSIONAIRE by this Agreement.
The CONCESSIONAIRE has no easements, rights, or
privileges, express or implied, other than those
specifi.caily granted by this Agreement.
ARTICLE III
TERM
This Agreement shall be effective beginning
The concession term during which the CONCESSIONAIRE is granted the
exclusive rights specified under Article II herein and is
authorized to operate the concession business hereunder shall begin
on August 1, 1989, and shall terminate on July 31, 1997.
Upon mutual agreement by the LESSOR and LESSEE, the lease may
be renewed for a period of up to five (5) years. LESSEE shall
notify the CITY in writing of LESSEE's desire to renew the lease.
4 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
Should the LESSEE desire to renew the term of the lease for a
period of up to five (5) years, LESSEE shall notify the City in
writing at least one (1) year prior to the expiration of the
current lease term. 'f within sixty (60) days after the receipt
of said notice by the City, the LESSOR and LESSEE have not reached
mutual agreement on the term of the renewal and the amount of the
monthly lease rate during the renewal ter:, the lease shall not be
renewed or extended.
ARTICLE IV
RENTS AND FEES
A. For use of the premises, facilities, services, rights
and privileges granted by the Agreement, the
CONCESSIONAIRE hereby agrees to pay to the CITY the one-
time premium, [PLUS] monthly concession Davments in the
amount of $1,500.00, Dlus an annual surcharge of five
percent (5%) on gross sales over 5150,000.
B. The rent guarantee in the amount of $3,000.00 for the
last two (2) months of the contract term (June 1, 1997
to July 31, 1997) shall be due ana Dayanie immediately
upon execution of this Agreement by the CONCESSIONAIRE.
All other payments requirea oy tnis Article must be
submitted monthly to the CITY by the first day of each
calendar month, with the first such payment due on the
first day of August 1, 1989.
C. Payments made under this Agreement must be free trom all
claims, demands, set -offs, or r_ounterciaims of any kind
against the CITY, and :rust be mane in cash or by check,
bank draft, or money order made payable to the City of
Kenai and delivered or mailed to: Finance Director, City
of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611, and
shall be in United States of America currency.
D. All of the CONCESSIONAIRE's reports required by this
article must be submitted in terms of United States of
America currency.
E. Any and all rents, charges, fees, or other considerations
which are due and unpaid at the expiration, or voluntary
or involuntary termination or cancellation of this
Agreement will be a charge against the CONCESSIONAIRE and
his property, real or personal, and the CITY will have
such lien rights as are generally allowed by law, and
enforcement may be made by the CITY or its authorized
agent.
5 RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
F. Interest and penalties will accrue and be payable on all
rents and fees due and unpaid pursuant to Kenai Municipal
Code 1.75.010.
ARTICLE VI
PERFORMANCE BOND
The CONCESSIONAIRE hereby agrees to post a performance bond
in the amount of $100,000.00 to assure payment of the fees during
the entire term os this Agreement as stipulated herein and to
assure compliance with all covenants, conditions, or provisions
contained herein. Said bond must be provided by the CONCESSIONAIRE
in one of the following forms:
A. A performance bond in the amount of $100,000.00. Said
bond must be in a form acceptable to the CITY. The bond
must be maintained and renewed by the CONCESSIONAIRE as
necessary to remain in force throughout the term of this
Agreement. The bond shall be subject to attachment by
the CITY upon the CONCESSIONAIRE's failure to pay any fee
required by this Agreement within thirty (30) days
following the date on which said fee becomes due and
payable. Further, the bond shall be subject to
attachment by the CITY upon the failure by the
CONCESSIONAIRE to cure a breach of any of the conditions,
covenants, or provisions of this Agreement within thirty
(30) days following the date on which the CITY serves the
CONCESSIONAIRE with written notice of said breach.
B. A cash deposit in the amount of $100,000.00 to be held
by the CITY throughout the term of this Agreement without
bearing interest. The cash deposit shall be subject to
retention by the CITY upon the CONCESSIONAIRE'S failure
to pay any fee required by this Agreement within thirty
(30) days following the date on which said fee becomes
due and payable or upon the CONCESSIONAIRE' failure to
cure a breach of the conditions, covenants, or provisions
of this Agreement within thirty (30) days following the
date on which the CITY serves the CONCESSIONAIRE with
written notice of said breach. Upon the expiration or
termination of this Agreement and performance of all the
terms herein, said deposit will be refunded to
CONCESSIONAIRE, less any outstanding, unpaid fees due
under Article IV of this Agreement.
C. A time Certificate of Deposit (TCD) in the amount of
$100,000.00 naming the CITY as the sole payee for the
principal amount shown on the certificate. The TCD must
be held by the CITY where it will remain until maturity.
At the time of maturity, the TCD must be renewed by the
CONCESSIONAIRE continuing to name the CITY as the sole
6 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
payee until this Agreement eypires or is terminated and
the CITY has determined that all fees _have been paid and
all covenants, conditions, and provisions have been :yet.
CONCESSIONAIRE shall be shown as the sole Payee for all
interest accrued during each period of time the TCD is
issued. At the time of the expiration or termination of
this Agreement, provided all -fees have been paid and the
CONCESSIONAIRE has complied with all covenants,
conditions, and provisions contained herein, the CITY
shall release the principal amount of t'ie TCD to t.ie
CONCESSIONAIRES, less any outstanding, unpaid fees due
under this Agreement.
The CONCESSIONAIRE must furnish the CITY with a copy of the
bond, a cash deposit, or a TCD by no later than ,
1989.
ARTICLE VII
PREMISES
The CITY hereby agrees to deliver the Premises to the
CONCESSIONAIRE as of August 1, 1989, following the execution of
this Agreement by the CITY. CONCESSIONAIRE hereby agrees to accept
the Premises demised under this Agreement in their tnen-present
condition and "as is." It is hereby understood ana agreea by
CONCESSIONAIRE that the CITY's obligation hereunder is simitect to
making available to CONCESSIONAIRE, tor its use, the -remises.
However, in the event that construction delays in the current
remodeling project delay the abi-Lity of the CITY to deliver the
premises, this Agreement snail stay in force and affect. Said
delay shall cause the C!':Y to pro -rate Lhe amount of monthly rent
due. Any such delay shall I.ot effect the One -Time Premium and no
refunds in part or whole shall be made from the one-time premium.
ARTICLE VIII
CONSTRUCTION AND REMODELING
A. Initial Construction/Remodeling
In an effort to better serve the needs of the travelers
using the Terminal, the CITY has initiated an expansion
and remodeling project for the Terminal.
The CONCESSIONAIRE hereby acknowledges the importance of
said project and hereby agrees to cooperate with the CITY
and the CITY's contractor(s) throughout the project,
including those segments of the project which relate to
the construction or remodeling of retail space. The CITY
hereby agrees to minimize the adverse impact of the
construction on the CONCESSIONAIRE's business to the
extent possible. However, the CITY may not be held
7 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
responsible by the COINCE.SSIONAIRE for inconveniences,
business interruption, or sales losses resulting from
said construction unless said inconveniences,
interruptions, or losses result from proven negligence
by the CITY.
B. General Construction Requirements:
1. Any alterations, construction, or improvements
desired by the CONCESSIONAIRE of the Premises must
be neat, presentable, and compatible with the
architecture of the building, as determined by the
CITY, and must be performed at no cost to the CITY.
2. Before beginning construction of any improvements
on the Premises, the CONCESSIONAIRE must first
submit detailed drawings of the proposed
construction and obtain the written approval of the
CITY. If requested by the CITY, the CONCESSIONAIRE
shall also submit architectural renderings of the
proposed improvements as well as samples of
materials and colors.
3. CITY shall review and approve or disapprove the
proposed construction and transmit said approval or
disapproval in writing to the CONCESSIONAIRE.
4. Within thirty (30) days after compiation of any
constructions of placement of improvements upon the
Premises, the CONCESSIONAIRE snall deliver to
the CITY detailed copies of as-nuilt drawings
showing the location and dimensions of improvements
placed or constructed on the Premises by the
CONCESSIONAIRE.
C. ownership:
1. Upon the installation of any structural or other
concession improvements, including, but not limited
to, interior walls, ceilings, carpeting, draperies,
finished flooring, electrical wiring, air-
conditioning ducts and equipment, concession
furnishings of such nature as cannot, in the Airport
Manager's opinion, be removed without structural
damage to the Premises, and all interior decoration
and finishing erected or installed by CONCESSIONAIRE
upon the Premises, title thereto shall vest in the
CITY.
2. Title to all furniture, furnishings, supplies and
removable fixtures and equipment shall at all times
8 - RESTAURANT COPJC-ESSION AGREEMENT LESSOR:
LESSEE:
during the term of this Agreement remain vested in
the CWZCESSIONAIRE.
ARTICLE IX
CONCESSION MERCHANDISE/OPERATION OF CONCESSION SERVICES
CONCESSIONAIRE understands and agrees that its operation under
this Agreement is a service to airline nassengers and the users of
the Airport. CONCESSIONAIRE also understands and agrees that the
ability of the C17TY to effectively operate the Airport, and to
promote tourism to the CITY, depends in part upon ,:.ie quality of
CONCESSIONAIRE's services and the attractiveness of its prices.
Accordingly, CONCESSIONAIRE shall conduct its operation in a first-
class, businesslike, efficient, courteous, and accommodating
manner.
Therefore, at all times during the term o* tnis Agreement,
the CONCESSIONAIRE will strictly compiy with tale following
conditions and requirements.
A. Business -Development: CONCESSIONAIRE covenants to take
all reasonable measures in every proper manner to
maintain and develop the business conaucted by it and
that CONCESSIONAIRE will not divert or cause or allow by
its own actions any business to oe diverted from the
Terminal.
B. Orderly Operation: The CONCESSIONAIRE must conduct all
operations and business on the Airport in an orcerly and
peaceful manner and will not interfere with other
tenants, users, or occupants of the Airport.
C. Merchandise: CONCESSIONAIRE shall at all times offer
the widest possible selection of permissible beverages
and maintain sufficient inventories to accommodate
customer demand. The CITY agrees that the selection of
merchandise items within the concession rights granted
by this Agreement shall be within the CONCESSIONAIRE's
discretion; subject, however, to disapproval by the CITY
if, in its sole determination, the selection of items
offered is inadequate or items being offered are not
within the concession rights granted by this Agreement
or items being carried are not in good taste considering
the public nature of the Terminal. The CITY agrees to
meet and confer with the CONCESSIONAIRE in such cases of
disapproval by the CITY, but the CONCESSIONAIRE hereby
acknowledges that the decision of the CITY in such cases
shall be conclusive.
9 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
D. Product Ouality: The CITY, in entering into this
Agreement, has foremost in mind to provide the air
traveler with facilities, service, and products of the
highest quality. 'rhe CoNCEESSIONAIRE will therefore
handle only merchandise and products which are of highest
quality, subject to the continuing review and approval
of the Airport Manager.
E. Reasonable Pricing: The CONCESSIONAIRE will also furnish
all products and services authorized hereunder to its
customers and patrons upon a fair, equal, and non-
discriminatory basis and charge fair, reasonable, and
non-discriminatory prices for each unit of product or
service. All prices shall be subject to the continuing
review and approval of the Airport Manager. The Airport
Manager's pricing review shall be based on comparisons
of prices charged for similar items in similar
establishments located within the city limits of Kenai,
Alaska.
F. Hours of Operation: For the purposes of this Article,
the term scneduiea passenger flights will include:
All regularly scheduled flights.
- All other passenger flights for which the
CONCESSIONAIRE has been given at least seven (7) calendar
days notice prior to arrival.
1. The CONCESSIONAIRE will actively operate concessions
authorized by this Agreement so as to best serve the
needs of airline passengers. The CONCESSIONAIRE
shall prepare a written schedule of the operating
hours and submit the schedule to the Airport Manager
for approval. The schedule must provide for
operation to serve all scheduled passengers' flights
operating to or from the Terminal.
2. If the CONCESSIONAIRE is able to demonstrate with
supporting data that operating the concession to
meet all scheduled passenger flights, is not
profitable or economically feasible and is not in
the best interest of the CITY, the CONCESSIONAIRE
may request a waiver of the requirement to meet all
scheduled flights. The Airport Manager's
approval/disapproval shall be based on serving the
needs of the public. The CONCESSIONAIRE hereby
agrees to adhere to the schedule of operating hours
approved by the Airport Manager.
10 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
3 . Except in cases of er(-�::cies , the CONCESSIONAIRE
,'lust obtaJ_n the 17;1.:. or ::7 ;;-: --r)ort Manager
prior to any soec4a -)er'ocs or retail concession
space closure _maintenance,
construction, or of-:e.- masons
G. Cont _nuous Operation: Si b-jP(7r to Subsection (?) of this
Artic- , the CONCESSIONATRE herehy agrees to operate
tnrougnout the term of r_his Agreement on a continuous
basis, uninterrupted by a, y per; oa Uf C.LOSIlre t0
passengers on scneduiea oassenaer tliaizts using the
Terminal. Provided t:,at _ie provisions of this
subsection will not apply to any period during which the
CONCESSIONAIRE is unable to operate his business on the
Premises as a result of an act or directive of the CITY
or other hiaher autnor.ity_ or :s a direct result of a
natural disaster whicn e--ecr_s the tenability of the
Terminai.
:i. :;a_as :-�Pce3.pLs: Sales rece ous for each Etna every sales
transaction must Ae 1:,vPn ro -_.e customer. Sales
receipts. must clearly iaentiry C:ONCESSIOidAIRE by name,
address, and teiepnone nu;lorr.
I. Automated Accounting Equipment: Tile CONCESSIONAIRE shall
install ana use automatea accounting equipment which is
acceptable to CITY ro iccurateiv ana completely
record all casks and creuit transactions.
J. Premises Maintenance: '7_:e CONCESSIONAIRE s=-iall be
respo_;sibla for the ,:ay--to-<iay _maintenance u.` the
Premises, including ja.i-t'oria1 services aiid trash
collection.
The CONCESSIONAIRE shall -^aintain the Premises in good
repair and appearance and in a safe condition at all
times. The C07,;CESSIONAIR`, shall do or cause to be done
without delay all those things which, in the opinion of
the Airport manager, are necessary or desirable in the
interest of safety or to maintain the Premises in good
repair and appearance.
X
PERSONNEL
CONCESSIONAIRE sliall maintain an adequate sales force on the
Premises and use the utmost ,kill and diligence in the conduct of
CONCESSIONAIRE's business in the Premises.
11 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
`the CONCESSIONAIRE shall, in the operation of the concession
authorized under this Agreement, only employ or permit the
employment of personnel that will assure a high standard of service
to the public. All of the CONCESSIONAIRE's personnel, while on
duty in the Terminal shall be neat in appearance and courteous at
all times and shall be appropriately attired with badges or other
suitable identification. No personnel employed by the
CONCESSIONAIRE ;chile on or about the Premises will be permitted to
use improper language, act in a loud, boisterous, or otherwise
improper way or to be permitted to solicit business in an
inappropriate manner as determined by the Airport Manager.
The CONCESSIONAIRE shall select, appoint, and properly train
a manager who will be responsible for the general day-to-day
operations under this Agreement. Such person must be an
outstanding, highly qualified and experienced manager or supervisor
of restaurant operations, vested with lull power and authority to
accept service of all notices provided for herein and regarding
operation of the concession busi__?ess herein authorized, incluaing
the quality and prices of merchanaise ana the appearance, conduct,
and demeanor of CONCESSIONAIRE's agents, servants, and employees.
Said manager shall -be assigned to a duty station or office at the
Airport where he shah orciinar?.1y ae available during regular
business hours and where, at aii times during his absence, a
responsible subordinate snall be in charge and available.
ARTICLE XI
CITY'S RIGHTS OF ACCESS AND INSPECTION
CITY, by its officers, employees, agents, representatives,
and contractors, shall have the right at ail reasonabla times to
enter upon the Premises for the purpose of inspecting the same,
for observing the performance by CONCESSIONAIRE of its obligations
under this Agreement or for doing any act or thing which the CITY
may be obligated to do or have the right to do under this
Agreement, or otherwise, and no abatement of fees and charges shall
be claimed by or allowed to CONCESSIONAIRE by reason of the
exercise of such right.
Except in the case of an emergency, all inspections will be
coordinated with the CONCESSIONAIRE in order to minimize
interference with the CONCESSIONAIRE's activities on the Premises.
CONCESSIONAIRE shall assure CITY of emergency access to the
Premises either by delivering keys to the Premises to the Airport
Manager or by providing emergency telephone numbers by which
CONCESSIONAIRE or CONCESSIONAIRE'S agent may be reached on a
twenty-four hour basis.
Without limiting the generality of the foregoing, the CITY,
by its officers, employees, representatives, and contractors, shall
12 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
have the right, but not the obligation or responsibility, for the
benefit of COZJCESSIONAIRS or for the benefit of others at Air-cort.
to maintain existing and future utility systems or Portions thereof
on the Premises, including therein, wi.t :out J.J.mitation %hereo* on
the Premises, 4ncluding therein, without 'Jmitatlon r^eretc,
systems for the ,,upp -� y of heat and electri situ and for -.he
furnishing of fire alarm, fire nrotection, sor_nlcler, a-r
conditioning, telephone, telearaDn, tele-re(Tister., ana
intercommunication services, and to maintain lines, oipes, mains,
wires, conduits, and equipment connected with or anmirtenant to :ill
such systems, and to enter upon the Premises at ail reasonable
times to make such repairs, alterations:. ,:na reni.acement.s as may,
in the opinion of Airport Manager, be deemea necessary or advisable
and, from time to time, to construct or install over, in, under,
or through the Premises new lines, pipes, mains, wires, conduits,
and equipment; provided, however, that such repair, aiteration,
replacement, or construction snail not unreasonapiv inter --ere wit:l
the use of the Premises by CONC'r".SS70'1A-RE ana Drovluea-;;rtner teat
nothing herein shall be so construes as reiievina C0NC-SSI02:AIRE
of any obligation imposea upon it rnere2,n to mainta_n me Concession
areas and the improvements and utiiiLy Zaciiities tnere2.n.
At any time, and from time to time, curing ors:-.nary business
hours, within twelve (12) months prececing the expiration or the
term of this Agreement, CITY by its agents ana empioyees, whether
or not accompanied by prospective concessionaires, occzlpiers, or
users of the Premises, shall have t:ne right to enter r_hereon for
the purpose of exhibiting and viewing ail parts of t:e sane.
ARTICLE XII
CITY SERVICES
The City covenants and agrees to co tiie following:
A. To maintain the structure of the Terminal, t�!le exterior
roofs and exterior walls.
B. To wash all. exterior windows, and clean and maintain the
public areas in the Terminal.
C. To maintain the electrical, public address, plumbing,
and heating systems on the Premises and in the 'Terminal
in good condition and repair except that the CITY may
refuse to maintain any systems installed on the Premises
by the CONCESSIONAIRE and may charge the CONCESSIONAIRE
for any repair resulting from the CONCESSIONAIRE's
negligence.
D. The CITY reserves the right to enter onto the Premises
to make any repair or alterations necessary to the proper
functioning of the terminal building without liability
13 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
4)
to the CONCESSIONAIRE for any damage to the Premises.
As a result of any entry pursuant to this provision, the
C-T-nr will only be liable for its own negligence and for
ret,:rning the Premises to their former condition using
standard materials.
E. The CONCESSIONAIRE hereby expressly waives any and all
claims and holds the CITY harmless for damages arising
or resulting from failures or interruption of utility
services furnished by the CITY herein including but not
limited to stoppages in electrical energy, the cuantity
or temperature of water, space heating, or for the
failure or interruption of any public or passenger
conveniences.
ARTICLE XIII
LAWS AND TAXES
A. This Agreement is issued suoject to all requirements of
the laws and regulations of the City of _Kenai relating
to the 'leasing of lands ana facilities ana the granting
of privileges at airports.
B. At no expense to the CITY, the CONCESSIONAIRE will
conduct all activities or business authorizea by this
Agreement in compliance with all federal, state, local,
and Airport laws, orainances, rules and regulations now
or hereafter in force which may be applicable to the
activities or business authorized herein or to the use,
care, operation, maintenance, and protection of the
Airport, including but not. limited to matters of health,
safety, sanitation, and pollution. The CITY shall not
be liable to CO CESSIONAIRE for any diminution or
deprivation of CONCESSIONAIRE's rights hereunder on
account of the exercise of anv such authority, nor shall
CONCESSIONAIRE be entitled to terminate the whole or any
portion of this Agreement by reason thereof.
C. The CONCESSIONAIRE shall obtain all necessary licenses
and permits, pay all 'taxes lawfully imposed upon the
Premises, and pay any other fees and charges assessed
under applicable public statutes or ordinances.
D. In any disputes between the parties, the laws of the
State of Alaska will govern and any lawsuit must be
brought in the State courts of Alaska.
E. The CONCESSIONAIRE agrees to notify the CITY of any
claim, demand, or lawsuit arising out of the
CONCESSIONAIRE's occupation or use of the Premises. Upon
the CITY's request, the CONCESSIONAIRE will cooperate and
14 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
assist in the investigation and litigation of any claim,
demand, or ll awsu—Lt atfecti nq the Premises.
E. If CITY shall, without any fault, :)e mace a *part to any
1-: t-,c;ati on commenced by or against CONCESSIOI.TA '.'.E arising
out of CONCESSIONAIRE's use or enjovment o,: the Premises
or arising out of the rights aur_rorj -ed t.'•..i s Agreement
and as a result of which CONCESSIONAIRE is f-inally
adjudicated to be liable, t:nen CONCESSIONAIRE shall pay
all- costs and reasonable attorney's fees incurred by or
imposed upon the CITY in connection with such litigation.
ARTICLE XIV
INSURANCE
A. The CONCESSIONAIRE shall indemnify, defend, and hold the
CITY harmless from all liability, action, claim, suit,
loss, property damage, or personal injury of whatever
kina resultina trom or ar.sing out o= .:env act or
commission b_v the CONCESSIONAIRE, his agents, emoioyees,
or customers or arising :roan or con.aecr_ea with the
CO:ICEESSIONAIRE' s use ana occupation or the Premises or
the exercise or the riants ana privileges granted by this
Agreement.
B. 1. At no expense co the CITY, the CONCESSIONAIRE shall
secure ana keep in force during ti.e term of this
Aareement adevuate insurance to protect both the
City and the COI,.CESSIONA1RE in ac iedst the
follows ng tvpes anu amiourits :
a. Workers' Compensation Insurance in tie amounts
an form required by the Workmen's Compensation
Act and the insurance laws of Aias;sa.
b. Comprehensive General Liability Insurance with
1I'm its not less than $500,000.00 each
occurrence Combined Single Limit Bodily Injury
ana Property Damage, including Contractual
Liability, Personal Injury, Products and
Completed Operations Coverages. Said policy
shall include coverage of CONCESSIONAIRE's
independent contractors.
C. Comprehensive Automobile Liability Insurance
with limits not less than $500,000.00 each
occurrence Combined Single Limit Bodily Injury
and Property Damage, including employer's non -
ownership liability and hired auto coverages.
d. Property insurance on CONCESSIONAIRE and CITY
improvements, fixtures, and equipment and
15 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
insuring against the perils of _`ire, lightning,
extended coverage perils, vandalism, and
malicious mischief on the Premises in an amount
equal to the fu_1 replacement value of
CONCESSIONAIRE and CITY improvements, fixtures,
and equipment.
Said policy or *policies shall contain a loss
payable endorsement in favor of the parties
hereto as their respective interests may
appear. "Full replacement value" shall be
determined by a qualified appraiser at the time
said improvements are initially insured and
shall be redetermined annually thereafter
throughout the term of this Agreement. It
shall_ be CONCESSIONAIRE's resoonsibility to
obtain said receterminations. Both
CONCESSIONAIRE and CITY shall be promptly
notifiea of t:,ie results of said
redeterminations and CONCESSIONAIRE shall
immediately thereafter adjust the amount of
the insurance coverage to correspond with each
redetermination of fuil replacement value.
P. Gross Earnings Business Interruption insurance
in an amount of not less than one hundred
percent (100%) of Annual Rental in the first
year of this Agreement. Said policy shall
cover all interruptions of business howsoever
caused.
2. The CONCESSIONAIRE shall provide the CITY with proof
of insurance coverage in the form of an insurance
policy or a certi`icate of insurance coverage,
approved by the CITY, together with proof that the
premiums have been paid. Comprehensive General
Liability Insurance, Comprehensive Automobile
Liability Insurance, Gross Earnings Business
Interruption Insurance and Property Insurance
policies shall be endorsed to provide the following:
a. Name of the CITY as an additional insured; and,
b. Provide that the CITY be notified at least
thirty (30) days prior to any termination,
cancellation, or material change in the
insurance coverage; and,
16 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
c. Include a waiver of subrogation by which the
insurer waives all rights of subrogation
against the CITY for payments made under the
policy.
3. The rea_uirement of insurance coverage will not
relieve the CONCESSIONAIRE of any ether obligations
under this Agreement.
4. Certificates of insurance evidencing all coverages
and endorsements above shall be furnished to the
CITY prior to commencement of any operations under
this Agreement.
5. CONCESSIONAIRE agrees that the terms of these
insurance requirements may be increases and revised
upon the written demand by the CITY, which demand
must be based on reasonable and justiLiabie grounas.
ARTICLE XV
CANCELLATION
A. Cancellation by CITY. The CITY m„ay cancel this Agreement
and recover possession of the 2remises by gzvi_:.q the
CONCESSIONAIRE thirty (30) days prior written notice upon
the happening of any of the events iisteu below, unless
the breach is cured within said thirty (.i0) days:
1. The CONCESSIONAIRE" s tailure to Pay when clue the
rents, fees, pe laities, :'tc. Z.1 this
Agreement, JiliclllCi iiu any increases ;Wade pursuant to
this Agreement.
2. The return of c:ecKs for insufficient funds for
payment of rents or lees.
3. The use of the Premises by the CONCESSIONAIRE for
purposes not authorized by this Agreement.
4. The filing of a Detition in bankruptcy by or against
the CONCESSIONAIRE.
5. The entry by any court of a judgment of insolvency
against the CONCESSIONAIRE.
6. The appointment of a trustee or receiver for the
CONCESSIONAIRE's assets in a proceeding brought by
or against the CONCESSIONAIRE.
7. The filing of any lien against the Premises because
of any act or omission of CONCESSIONAIRE and such
17 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
lien is not removed, enjoined, or a bond for
satisfaction of such lien is not posted within sixty
(60) days; or
S. The levy of any attachment or execution, or the
appointment of any receiver, or the execution of
any other process of any court of competent
jurisdiction which is not vacated, dismissed, or
set aside within a period of ninety (90) days and
which does, or as a direct consequences of such
process will, interfere with CONCESSIONAIRE's use
of the Premises or with its operations under this
Agreement.
9. The failure of the CONCESSIONAIRE to operate the
business authorized in this Agreement for a period
of more than fourteen (14) consecutive calendar
days.
10. Cessation or deterioration of any service for any
period which, in the determination of the CITY,
materially and adversely affects the operation of
service required to be performed by CONCESSIONAIRE
under this Agreement.
11. The failure of the CONCESSIONAIRE to perform any
provision or covenant in this Agreement.
No waiver by the CITY at any time or any aefault on
the part of CONCESSIONAIRE in the performance of any
of the terns, covenants, or conditions hereof to be
performed, kept, or observed by CONCESSIONAIRE shall
be, or be construed to be, a waiver at any time
thereafter by the CITY of any other or subsequent
default in performance of any of said terms,
covenants, or conditions, and no notice by the CITY
shall be required to restore or revive time as of
the essence hereof after waiver by the CITY of
default in one or more instances. The granting of
a waiver by the CITY of any provision or covenant
in this Agreement cannot be enforced or relied upon
unless the waiver is in writing signed on behalf of
the CITY.
B. CITY's Riaht of Re -Entry. The CITY shall, as an
additional remedy, upon the giving of written notice of
cancellation or termination as above provided, have the
right to re-enter the Premises and every part thereof on
the effective date of cancellation or termination without
further notice of any kind, remove any and all persons
therefrom, and may regain and resume possession either
18 - RESTAURANT CONCESSION AGREEMENT LESSOR: _
LESSEE:
with or without the institution of summary or leaal
proceedings or otherwise. Sucre re-Ar?try, however, shall
not in any manner affect, alter, or diminish any of the
obliCations of CONCESSIONAIRE under this Agreement.
C. Ria.its of the CITY. The CITY, upon termination or
cancellation of this Agreement, or Ripon re-entry,
regaining or resumption of possession of the Premises,
may occupy the Premises and shall have the right to
permit any person, firm, or corporation to enter upon
the Premises and use the same. :)L'c:l occupation by others
may be of only a part of the Premises, or the whoie
thereof or a part thereof, together with other space, and
for a period of time the same as or different from the
balance of the term remaining hereunder, and on terms and
conditions the same as or different from those set forth.
in this Agreement. The CITY shall also .lave the right
to renair or to make sucn structural or other changes in
the Premises as are necessary in its jucc<.nent to maintain
the suitability thereon zor uses ana purposes similar to
those granted under this Agreement witnout affecting,
altering, or dimninis111n(I file ooiigations or
=N CESSIONAIRE hereunder.
D. Survival of CONCE_S_SIONAIRE's ub.iir,ations. In ti.e event
this agreement is terminaced or cancei.iea by the CITY,
or in tee event the CITY Ye -enters, regains, or resumes
possession of the Premises, aii o t;t onllgations of
CONCESSIONAIRE hereunder snail survive anci s_nall remain
in full force and etiect _or r.;ze lull term of this
Aqreement. And, �;Ubj--ct Lo t:le City's oziigatlon to
mitigate damages, the amount of the zees and charges
shall become due and payable to the CI-TY to the same
extent, at the same time and in the same :Wanner as if no
termination, cancellation, re-entry, regaining or
resumption of possession had taken place. The CITY may
maintain separate act4ons to recover any monies then due,
or at its option and at any time, may sue to recover the
full deficiency.
The amount of damages for the period of time subsequent
to termination, cancellation, re-entry, regaining, or
resumption of possession shall be CONCESSIONAIRE's annual
fee obligation, less the amount paid prior to the
effective date of cancellation.
E. Surrender of Possession. CONCESSIONAIRE covenants and
agrees to yield and deliver possession of the Premises
to the CITY on the date of the termination, cancellation,
or expiration of this Agreement promptly, peaceably,
quietly, and in as good order and condition as the same
19 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
now or may be hereafter improved by CONCESSIONAIRE or the
CITY, reasonable use and wear and tear thereof excepted.
The CONCESSIONAIRE shall be allowed a minimum of ten (10)
calendar days following the effective date of the
cancellation of the Agreement within which to remove all
of the CONCESSIONAIRE's personal property, equipment,
furniture, and fixtures from the Premises. The
CONCESSIONAIRE and the CITY agree, as mart of the
consideration for this Agreement, that all property
remaining on the Premises after the expiration of said
ten (10) calendar days will become the sole property of
the CITY, with full title vested in the CITY, and the
CITY may remove, modify, sell, or destroy the property
as it sees fit.
ARTICLE XVI
TRANSITION AT EXPIRATION OF AGREEMENT
A. Special Definitions for this Article Only: The following
are for the purposes of this Article only.
1. Turnover is defined as midnight of the day on which
the CONCESSIONAIRE'sleasehold interests, concession
rights, and operational responsiniiities under this
Agreement end as a result of the expiration of this
Agreement or termination of hold -over as covered
under Article XVIII, General Covenant "G".
2. Transition is defined as the period of activities
pr-.or to turnover during which the concession
described in this Agreement is turned over to a
succeeding CONCESSIONAIRE.
B. The CITY and the CONCESSIONAIRE mutually acknowledge and
agree that upon the expiration, cancellation, or
termination of this Agreement, the CITY has the right to
award any subsequent concession agreement to the most
favorable bidder at a public auction or by any other
legal means then available to the CITY.
C. CONCESSIONAIRE understands and acknowledges that it is
not practical or possible to predict exactly what the
transition schedule and procedures should be to best
serve the needs of the traveling public and the CITY upon
the expiration of this Agreement.
Therefore, as part of the consideration for this
Agreement, the CONCESSIONAIRE hereby agrees that the CITY
20 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
has the right to determine what the transition schedule
and procedures shall. be so ;:hat needs of the traveling
public and the CITY are best served.
CONCESSIONAIRE hereby acknowledges and agrees that the
transition plan determined by the CITY to Nest serve the
needs of the traveling public and the CITY may:
1. Require the CONCESSIONAIRE to remove from the
Premises all or any portion or the CONCESSIONAIRE's
fixtures, furniture, and equipment. In that event,
the CONCESSIONAIRE hereby agrees to remove said
items at no cost to the CITY or the succeeding
CONCESSIONAIRE.
2. Require the CONCESSIONAIRE to sell to the succeeding
CONCESSIONAIRE all or any oortion or the
CONCESSIONAIRE's furniture, fixtures, ana equioment,
excluding the CONCESSIONAIRE's comouter equipment,
cash registers, and merchanaise . In t nat event, the
CITY may require the CONCESSIONAIRE to furnish, at
its sole expense, an abpraisai(s)to establish the
sale price of sala items. Any such appraisal(s)
shall be prepared in the manner directed by the
CITY, shall be submitted by the date speciried by
tale CITY, aria snail be suoject to the approval of
tine CITY.
The CITY hereby agrees to provide the CONCESSIONAIRE
with written notice Q the transition olan
determined by the CITY to best serve the needs of
the traveling public ana the CITY at least taree (3)
calendar months prior to turnover.
The CONCESSIONAIRE hereby agrees to diligently
execute the transition plan determined by the CITY,
to abide by the time schedule, and to cooperate
completely with the CITY and the succeeding
CONCESSIONAIRE in carrying out said transition plan.
ARTICLE XVII
ASSIGNMENT OR SUBLEASE
A. The CONCESSIONAIRE will not mortgage, hypothecate, or
otherwise encumber or assign the concession rights herein
created, nor will the CONCESSIONAIRE sublet or sublease
the Premises in whole or in part without the prior
written consent of the CITY, which consent will be freely
given and not unreasonably withheld if the assignee or
sublessee possesses substantially the same qualifications
as to business ability and financial responsibility as
21 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
the CONCESSIONAIRE. Any attempted assignment, mortgage,
hypothecation, or encumbrance of the concession rights;
any subletting or subleasing of the whole or any part of
t_ie ?remises; or other violations of `he provisions of
this Article will be null and void and confer no right,
title, or interest in or to this Agreement nor right of
occupancy of the whole or any portion of the Premises
upon any such assignee, mortgage, encumbrancer, pledgee,
or other lienholder, subtenant, successor, or purchaser.
B. Any proposed assignment, lease, sublease, or subcontract
must be submitted to the CITY for approval in four (4)
copies, each bearing the original notarized signature of
all parties. All covenants and provisions in this
Agreement extend to and bind the legal representatives,
successors, and assigns of the parties.
C. The CITY will not withhold its consent to an assignment
of this contract by the CONCESSIONAIRE unreasonably.
ARTICLE XVIII
GENERAL COVENANTS
A. Execution by CITY. This Agreement is of no effect until
it has been signed by the City Manager for the City of
Kenai.
B. Aporoval by CITY. Any approvals required of the CITY by
this Agreement will not be unreasonably withheld.
C. Notices. Any notice required by this Agreement must be
hand delivered or sent by registered or certil-.ied mail
to the appropriate party at the address set forth on page
one of this Agreement or to any other address which the
parties subsequently designate in writing.
D. Modification. The CONCESSIONAIRE hereby agrees to any
modification the CITY may make to this Agreement to meet
the revised requirements of federal or State grants, the
operation of the Airport, or to conform to the
requirements of any revenue bond covenant to which the
CITY is a party. Provided, that a modification may not
act to reduce the rights or privileges granted the
CONCESSIONAIRE by this Agreement nor act to cause the
CONCESSIONAIRE financial loss.
No modification or amendments of this Agreement is
effective unless in writing and signed by the parties.
E. Bid Documents. It is expressly understood and agreed
that the Invitation for Bids, Instructions to Bidders,
22 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
n
the basic bid specifications, including any addenda
thereto, the Bidder's Affidavit and the bond or other
security deposit required under said instructions are
'iereby made a part of this Agreement, and each of the
parties hereto does hereby expressly covenant and agree
to carry out and fully perform each and all of the
provisions of said documents upon its part to be
performed.
F. interrelationship of Provisions. The articles, general
covenants, special covenants, supplements, addenda, and
drawings attached as exhibits are essential parts of this
Agreement and are intended to be cooperative, to provide
for the use of the Premises, and to describe the
respective rights and obligations of the parties to this
Agreement. In case of a discrepancy, figures dimensions
govern over scaled dimensions unless ooviously incorrect.
Special covenants govern over articles, both oz which
govern over general covenants.
G. Holdinc Over. If the CONCESSIONAIRE holds over and
remains in possession or t.:e premises azter the
expiration of this Agreement without a written renewal,
the holding over will riot operate as a renewal or
extension of the term of this Agreement, ;)ut only creates
a tenancy from month to montri, regarciess or dIly rent
payments acceptea by the CITY. The COdCESSIONAIRE's
obligations for perzormance under this agreement will
continue until the month -to -month tenancy is terminated
by -he CITY. The CITY may terminate t.re :month -to -month
tenancy at any ti::,e by giving the CONCESSIONAIRE at ieast
ten (10) days orior written notice.
H. Validity of Parts. If any provision or covenant of this
Agreement is declared to be invalid by a court of
competent jurisdiction, the remaining covenants and
provisions will continue in full force.
I. Conflicts Between Concessions. In the event of a
conflict between the CONCESSIONAIRE and any other tenant,
lessee, or CONCESSIONAIRE on the airport as to services
to be provided by respective CONCESSIONAIRE or lessees,
the CITY will decide which services may be provided by
whom. CONCESSIONAIRE agrees to be bound by such
decision, subject to any rights CONCESSIONAIRE may have
to seek judicial relief.
J. Advertising. The display by the CONCESSIONAIRE of any
signs, advertising, or similar matter in the Terminal
with the prior approval of the Airport Manager is hereby
prohibited.
23 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
K. Radio Interference. At the CITY's request, the
CONCESSIONAIRE shall discontinue the use of any machine
or device which interferes with any government operated
transmitter, receiver, or navigation aid until the cause
of the interference is eliminated.
L. Discrimination. The CONCESSIONAIRE covenants and agrees
that discrimination on the grounds of race, color,
religion, national origin, ancestry, age, or sex, will
not be permitted against any patron, employee, applicant
for employment, or other person or group of persons in
any manner prohibited by Federal or State law. The
CONCESSIONAIRE recognizes the right of the CITY to take
any action necessary to enforce this covenant, including
actions required pursuant to any Federal or State law.
M. Affirmative Action. The CONCESSIONAIRE agrees that it
will undertake an affirmative action program as required
by 14 CFR Part 152, Subpart E, to insure that no person
will be excluded from participating in any employment
activities covered by 14 CFR Part 152, Subpart E on the
grounds of race, creed, color, national origin, or sex.
The CONCESSIONAIRE hereby agrees that no person shall be
exclude on these grounds from participating in or
receiving the services or benetits of any program or
activity covered by said subpart. The CONCESSIONAIRE
further agrees that it will require that its covered
suborganization(s) provide assurance to the CITY to the
same effect that they will also undertake affirmative
action programs and require assurances Zrom their
suborganizations, as required by 14 CFR Part 152, Subpart
E.
N. National Emergency. In case of any national emergency
declared by the Federal Government, the CONCESSIONAIRE
may not hold the CITY liable for any inability to perform
any part of this Agreement as a result of the national
emergency.
O. Disasters. If, in the determination of the CITY, fire,
flood, earthquake, or other casualty damages the 'Terminal
so extensively as to render it untenantable, either party
may elect to terminate this Agreement upon written notice
to the other party. In the event of such termination,
the rent payable under this Agreement must be prorated
up to the time the Terminal becomes untenantable.
P. Condemnation. If the Premises are condemned by any
proper authority, the term of this Agreement will end on
the date the CONCESSIONAIRE is required to surrender
24 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
sl
possession of the Premises. The CITY is entitled to all
the condemnation proceeds except the CONCESSIONAIRE will
be paid the portion of the proceed attributable to the
fa-r market value of any improvements p'lar,ed on the
Premises by the CONCESSIONAIRE according to tte
*provisions of 17 AAC 40.330, amended. Rent will a_Ls<> be
adjusted according to the provisions of 17 AAC 40.330,
as amended.
DATED: This _ day of _ , i389.
CITY OF KENAI
By: Wm. J. Brighton
City Manaaer
CONCESSIONAIRE
By:
STATE OF ALASKA )
ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day or .
1989, ^_ being personally known to me or
having produced satisfactory evidence of identitication, appeared
before me and acknowledged the voluntary and authoritea execution
of the foregoing instrument.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of
1989, WILLIAM J. BRIGHTON, City Manager of the City of Kenai,
Alaska, being personally known to me or having produced
25 - RESTAURANT CONCESSION AGREEMENT
LESSOR:
LESSEE:
0%
satisfactory evidence of identification, appeared before me and
acitnowledged the voluntary and authorized execution of the
foregoing instrument on behalf of said City.
Votary Public in and for Alaska.
My Commission Expires:
Approved as to lease form by City Attorney.
Approved by Finance Director.
Approved by City Manager
Lease Approved by Council on
Janet Ruotsala, City Clerk
26 - RESTAURANT CONCESSION AGREEMENT LESSOR:
LESSEE:
ti
CITY OF KENAI
21Q FIDALGO STREET
KENAI, ALASKA 99611
�or G��o's�•i�ioa��).
rilfiiyt
l4 wRR�e�t �LseLq�
CONTRACT DOCUMENTS RELATING TO
KENAI MUNICIPAL AIRPORT TERMINAL
BAR CONCESSION
c2/G
INVITATION FOR BIDS
BAR CONCESSION
TERMINAL
KENAI MUNICIPAL AIRPORT
Sealed bids for the exclusive right to operate a bar concession
at the Kenai Municipal Airport will be received at the City
offices, 210 Fidalgo Street, Kenai, Alaska, 99611. All bids must
be received no later than 2:00 b.m., on .. , 1989, at
which time and place they will be publicly opened and read.
Bids may also be mailed to City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received in the office of the
City Manager, no later than 2:00 p.m. on 1989,
to be considered.
All interested parties, including Disadvantaged Business
Enterprises, are encouraged to submit bid proposals. No person
shall be excluded on the grounds of race, color, religion, sex,
or national origin.
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Aiasxa, 99611, on
1989, beginning at 9:00 a.m. The conference will
be conducted by the City of Kenai Airport Manager and will
include a general information briefing, a cuestion and answer
session and an inspection tour of the concession space in tae
Terminal.
The bid documents manifesting the terms and conditions o.t t:iis
concession offering may be examined and/or obtainea from the City
of Kenai Airport Manager, 210 Fidalgo Street, Kenai, Alas:ca,
99611 (Telephone: (907)283-7951).
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the city
hereby reserves the right to re -advertise for Bid Proposals or to
reschedule the bid opening, if such action is desired by the
City.
DATE: June 1989
Wm. J. Brighton, City Manager
City of Kenai
ADVERTISED:
INVITATION FOR BIDS
BAR CONCESSION
KENAI MUNICIPAL AIRPORT TERMINAL
Sealed bids for the exclusive right to operate a bar concession,
for the purpose of providing a lounge with sale of alcohol by the
drink service for the convenience of the traveling public at the
Kenai Municipal Airport will be received at the City offices, 210
Fidalgo Street, Kenai, Alaska, 99611. All bids must be received
no later than 2:00 p.m., on , 1989, at which time and
place they will be publicly opened and read.
Bids may also be mailed to the City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received in the office of the
City Manager, no later than 2:00 o.m. on , 1989,
to be considered.
All interested parties, including Disadvantaqea Business
Enterprises, are encouraged to submit bid proposais. No person
shall be excluded on the grounas of race, color, religion, sex,
or national origin.
The contract being offered is designatea as the Bar Concession
Agreement and is briefly summarizea as Follows:
I. CONCESSION TERM:
The rights to operate the Bar Concession shall begin on
August 1, 1989 and terminate on July 31, [199711992.
II. PREMISES:
1,161 sq. ft. as shown on the attached Exhibit "A" and
incorporated by reference herein, including restrooms and
storage area, Terminal Building, Kenai Municipal Airport.
III. RIGHTS GRANTED:
The exclusive right to operate a bar concession in the Kenai
Municipal Airport Terminal Building.
The City of Kenai will provide all due aid and assistance to
the successful bidder in having.a liquor license transferred
to it for use at the Airport Bar at no additional cost. The
successful bidder shall comply with all applicable local,
state and federal laws and regulations concerning the
operation of a retail liquor establishment. At the
conclusion of the lease period, the above -mentioned liquor
license shall revert.
B-1
IV. ONE-TIME PREMIUM
The bidder who, in addition to meeting all other
recuirements of the bid package, offers the highest one-time
premium will obtain the right to lease subject to ali
provisions of review and approval established for all other
lease applications.
V. CONCESSION FEES:
The successful bidder will be required to pay a monthly
concession fee of TWO THOUSAND FIVE HUNDRED DOLLARS ($2,500)
This monthly concession fee shall be in addition to the one-
time premium amount. In addition, an annual surcharge of
five percent (5%) on crosssales of $200 , 000 shall be
collected.
VI. BID DEPOSIT:
A bid deposit'.with the amount of 5500.00 must oe sunmitted
with each bid proposal.
VII. BIDDER QUALIFICATIONS:
In order to oarticipate in this bid offering, d bidder must
be able to demonstrate that since January 1, l9'/8 _uas nad
at least three (3) years of [DIRECT] experience in tae
operation of a retail [LIQUOR SALES) business wit:: cross
sales of at least [$150,000.001$100,000 per location per
year.
VIII. ADVANCE GUARANTEE PAYMENTS:
Upon award of the contract, the successful bidder will be
required to execute the contract and pay to the City the
one-time premium plus the rent guarantee offered by the
successful bidder for the last two (2) months of the
contract term, less the $500.00 bid deposit already
submitted.
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99611, on
1989, beginning at 9:00 a.m. The conference will be
conducted by the City of Kenai Airport Manager and will include a
general information briefing, a question and answer session and
an inspection tour of the concession space in the Terminal (if
requested).
B-2
The Aid documents manifesting the terms and conditions of this
concession offering may be examined and/or obtained from the City
of Kenai Airport Manager, 210 Fidalgo Street, Kenai, Alaska,
99611 (Telephone: (907) 283-7951). The documents include: (1)
the Instructions to Bidders; (2) the Specimen Special Use Permit;
(3) the Bid Proposal Form; (4) the Bidder's Affidavit Form; (5)
Bidder's Questionnaire; and this (6) Invitation for Bids.
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the City
hereby reserves the right to re -advertise for bid proposals or to
reschedule the bid opening, if such action is desired by the
City.
DATE: ,1989
'gym. J. Brighton, City Manager
City: of Kenai
B-3
INSTRUCTIONS TO BIDDERS
BAR CONCESSION AGREEMENT
KENAI MUNICIPAL AIRPORT TERMINAL BUILDING
I. BIDDERS:
All bids must be made on the Bid Proposal form furnished by the
City (attached hereto), must be properly executed as provided
thereon, and be addressed and delivered to the office of the City
Manager, City of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611,
no later than 2:00 p.m., on , 1989. Bids may also
be mailed to the City Manager, City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received at the office of the
City Manager no later than 2:00 p.m., on 1989 to be
considered.
Each Bid Proposal must be submitted in a sealed envelope which is
clearly marked on the outside with the Bidder's name and the
following label:
"Bar Concession Bid Proposal - Kenai Municipal Airport."
To be complete, a bid proposal must consist of the following:
A. A completed, signed, and notarized bid proposal (Pages
BP-1 to BP-4).
B. A completed, sia__ned, and notarized Affidavit (Pages BA-
1 to BA-2).
C. The required Bid Deposit.
D. A completed and signed Bidder's Questionnaire (Pages
BQ-1 to BQ-6).
No late or telegraphic applications will be accepted. When
received by the City, all bids become the property of the City.
When bids are opened, all bid proposals and supporting documents
and statements become public information..
II. BID REVISION/WITHDRAWAL:
A bidder may withdraw or revise a bid proposal after it has been
deposited in the office of the City Manager, 210 Fidalgo Street,
Kenai., Alaska, 99611, provided:
IB-1
A. The Bidder submits a written request for return of his
bid proposal. (The request rust be si ned by the
bidder, or a duly authorized agent or officer of the
bidder, and notarizes:.)
B. The City is able to clearly identify the bidder's
sealed bid envelope by reading the bidder's name on the
outside. No envelope will be opened for bidder
identification or any other reason prior to the time
set for the bid opening.
C. The withdrawal or revision is completed prior to the
time set for opening of the bids.
No telegraphic bid revisions or withdrawals will be accepted.
III. BIDDER QUALIFICATIONS:
In order to submit a bid, a bidder must be able to demonstrate
that he has at least three (3) years of [DIRECT] experience in
the operation of a_retail [LIQUOR SALES] business witn gross
sales of at least [$150,000.00]$100,000 per location per
qualifying year.
Further, the bidder must be able to demonstrate that the tnree
(3) years of required experience occurred within the period of
January 1, 1978 to January 1, 1989 and that the bidaer was the
principal operator of said business(es). (Please rezer to the
Bid Questionnaire for specific requirements.)
IV. REJECTION OF APPLICATIONS:
Bid proposals may be rejected under any of the following
conditions:
A. If they show any alterations, erasures, irregularities
of any kind or additions not called for; if they are
conditional or incomplete; or if they fail to comply
with any of the requisite conditions.
B. If the Bidder is in arrears in any payments owing to
the City or is in default of any obligation to the
City; or is a defaulter as surety or otherwise upon any
obligation to the City; or has failed to perform
faithfully and diligently any previous contract with
the City.
IB-2
C. If the Bidder fails to demonstrate that he has the
experience required under Item III (Bidder
Qualifications) above.
In addition, the City reserves the right to reject any or all bid
proposals and waive any defects when in its opinion such
rejection or waiver will be in the best interest of the City.
The right is reserved by the City to reschedule the bid opening
or re -advertise for bid proposals if such action is desired by
the City.
V. BID DEPOSIT:
All Bid Proposals must be accompanied by a certified check or ;..
cashier's the on a vent fin ial ins 'tution ng business
within he_
e i ed S at of Am is pay 1 to t "ty o "
Kenai, in the mo t of $500 0. he ty r se es e o
cash such the d hol a procee- thereof pending he awar
of the conces n contract.
VI. CONTRACT AWARD:
A. The contract award, if made, will be made by the City
Manager for the City of Kenai, or his official
designee.
B. The bidder must be capable of performing all of the
terms and conditions of the contract being offered.
The City may request the bidder to furnish additional
information, including financial information, to
determine if the bidder is qualified.
C. In the case of any discrepancy between the words and
figures in the Bid Proposal, the words shall govern.
D. The contract award, if made, will be to the highest
responsive qualified bidder based upon t:qe followirig:
The total one-time minimum preium to be paid to
the City for the right to lease the premises.
2. The conformity of the bidder to all of the terms,
conditions, and prerequisites set forth in the bid
documents.
IB-3
VII. CONCESSION AGREEMENT:
A. Execution of Agreement - Within fifteen (15) calendar
days after receiving the agreement for sianature.from
the City, the bidder must sign and return the agreement
together with the guarantee advance stipulated under
Item VIII below and the one-time premium. Upon
execution of the agreement by the City, the successful
bidder's bid deposit, together with the guaranteed
advance, shall be credited against the rent guarantee
payable by the bidder under said agreement for the last
two (2) months of the contract term.
B. Failure to Execute Lease - Failure to execute and
return the agreement together with the guarantee
advance, so that they are received by the City within
fifteen (15) calendar days arter the successrul bidder
has received the agreement =or execution shall oe Dust
cause for the annulment or the award and ror ",;orreiture
of the bid deposit to tee City. If the successfui
bidder refuses or tails to execute and return the
agreement., together with the required guarantee aavance
the City may award the agreement to t.le next hiGnest
responsive qualified bidder. If any sucn Diaaer to
whom the agreement is so awaraed reruses or tails to
execute and return the same in the time specified, such
bidder's bid deposit shall likewise be torieited to the
City.
VIII. GUARANTEE ADVANCE:
The successful bidder must submit the one-time premium and
advance guarantee payment to the City when returning the executed
copies of the contract as required under item VI above. Said
advance guarantee payment s t&!+-s a -bhe itact taws (2 )
under the contract term, minus the bidder's $500.00 bid deposit.
Said advance guarantee, plus the one-time premium must be made by
certified check or cashier's check on a solvent financial
institution doing business within the United States of America,
payable to the City of Kenai.
IX. RETURN OF BID DOCUMENTS:
Bid deposits submitted by unsuccessful bidders will be returned
to them as soon as possible AFTER the agreement has been signed
by the successful bidder and the City, or if all bids are
rejected, all bid deposits will be returned.
IB-4
X. TIE BIDS:
In event of a tie bid by qualified bidders, the tie will be
broken by awarding the agreement to the bidder who has
demonstrated the most experience in the operation of qualifying
retail merchandise sales business(es) since January 1, 1975, as
determined by a comparison of the aggregate years of verified
experience listed by the bidders in their Bid Questionnaire in
response to Question No. 6 and No. 7.
XI. PUBLIC INFORMATION:
All bid proposals, including any and all documents and/or
statements submitted with a bid proposal, become the property of {
the City when received by the City. Upon the opening of sealed
bids by the City, all such information submitted with the bid
proposal becomes public information.
XII. PRE -BID CONFERENCE:
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99611, on
1989 beginning at 9:00 a.m. The conference will be
conducted by the Airport Manager and will include a general
information briefing, a question and answer session, and an
inspection tour of the lease space in the Terminal.
XIII. OTHER REQUIREMENTS:
Bidders are responsible for carefully examining all documents
relating to this agreement and judge for themselves all the
circumstances and conditions affecting their bid proposal.
Failure on the part of any bidder to make such examination and to
investigate thoroughly shall not be grounds for any claim that
the bidder did not understand the conditions of the bid proposal.
All bidders should also thoroughly familiarize themselves with
the concession site conditions.
XIV. GENERAL CONTRACT INFORMATION:
A. The City of Kenai is offering an opportunity to do
business at the Kenai Municipal Airport and does not in
any way guarantee a profit for the operation of the
Terminal concession.
B. The effective date of the contract shall be August 1,
1989 and shall terminate July 31, 1997.
IB-5
C. The City may require of any Bidders, other than sole
proprietors, signed surety guarantees from, all
principals, agents, directors, stockholders, and/or
officers of the successful bidding entity.
D. The City shall require of the successful lessee a bond
in the amount of the equipment costs in the event the
lessee defaults on the terms of the lease.
IB-b
FEPIAI MUNICIPAL AIRPORT TERMINAL
BAR CONCESSION AGREEMENT
BID PROPOSAL
PLEASE PRINT THE FOLLOWING
Business Name of Bidder . . . . .
d/b/a (if applicable) . . . . . .
Submitted by . . . . . . . . . . .
Title . . . . . . . . . . . . . .
Business Mailing Address. . . . .
Telephone No. . . . . . . . . . .
BP-1
TIM61hy J. Rows
. CNrAuoaney
_ • CITY OF KENAI
Admoo
� �uara �e11
46
BID PROPOSAL
KENAI MUNICIPAL AIRPORT TERMINAL
BAR CONCESSION AGREEMENT
Date:
City of Kenai
210 Fidalgo Street
Kenai, Alaska 99611
Gentlemen:
The undersigned (person, partnership, joint venture,
corporation), hereinafter called the Bidder, hereby offers to
enter into a Bar Concession Agreement cover=rg certain rights and
privileges at the Kenai Municipal Airport and within the Kenai
Municipal Airport Terminal Building. in connection with this
offer the bidder offers to pay the following one-time premium of:
Attached hereto and made a part of this offer are the following:
1. Affidavit executed by the Bidder.
2. Completed and signed aid Questionnaire.
3.' JLid dwfoslit in_,&Iie_'Iq�,Iount_� $5`6L0.00
A certified or cashier's chec;: on a solvent financial
institution doing business within the United States of
America, payable to the City of Kenai. The Bidder hereby
acknowledges the City's right to cash such check immediately
following bid opening and to hold the proceeds thereof until
the award process is completed.
Within fifteen (15) calendar days after receipt of notice and
acceptance of offer by the City of Kenai, the Bidder shall
execute and deliver the Agreement, together with the required
Guarantee Advance and One -Time Premium to: Airport Manager, City
of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611. Said
BP-2
TWo1hy J. Rogers
CAV Allan"
'CITY OF KENAI
Meats►. A1lsYtl tll611
e.
Public
sworn,
to me
Guarantee Advance and One -Time Premium shall be non-refundable
and shall be in the form of a certified or cashier's check on a
solvent financial institution doing business in the United States
of Mmerica .
It is understood and agreed by the Bidder that failure to execute
and return the Concession Agreement, Guarantee Advance and One
Time Premium payment in the time specified, shall constitute a
breach of this offer on the part of the bidder; and that upon
such breach, the deposit hereinabove referred to shall be
forfeited to the City of Kenai. Time is of the essence in the a'
execution and performance of the obligations under this_?
agreement. _.
(Sign and notarize Page BP-4)
This offer may be accepted or rejected by the City of Kenai by
written notice to the Bidder at the address stated on Page BP-1.
Sincerely,
Name of Bidder's Corporation,
Company, or Person
Signature
By
Individual Surety
CORPORATE ACKNOWLEDGMENT:
STATE OF ALASKA )
} ss .
THIRD JUDICIAL DISTRICT }
(CORPORATE SEAL)
THIS IS TO CERTIFY that on this day of
198 , before me, the undersigned, a Notary
in and for the State of Alaska, duly commissioned and
personally appeared known
and to me know to be the
of , the corporation which
BP-3
71ma1hy J. Ropers
C11V AllpMy
CITY OF KENAI
21O FiWlpo
ROW. Alma t". / t
yq ....
1
In
executed the foregoing instrument, and he acknowledged to me that.
he executed the same for and on behalf of said corporation, and
that he is fully authorized by said corporation so to do; and
that the corporate seal affixed to said instrument is the
corporate seal of said corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affi.{ed
1; my official seal the day and year above written.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of
108 , before me, the undersigned, a Notary
Public in ana for the State of Alaska, duly commissioned and
sworn, personally appeared , known
to me and to me xnow to be the personts) named herein and who
executed the foregoing instrument, and (he, she, they)
acknowledgea to me that (he, she, they) signed the same as (his,
her, their) free and voluntary act and deea with full knowledge
of its contents, for the uses and purposes therein mentioned.
IN WITiIESS WHEREOF, I have hereunto set my hand and affixed
my off-icial seal the day and year above written.
Notary Public in and for Alaska.
My Co, ;mission Expires:
BP-4
Tlnrolhy J. Ropers
•, .dly�uenwy
WiY OF KENAI
Ron" Alma "goi
a
�
t
�
s
BIDDER'S AFFIDAVIT
being first duly sworn
deposes and says:
I. The Affiant (as Bidder or as representative or
officer of bidder) has carefully examined all
documents relating to the Bar Concession Agreement
for the Terminal Building located on Kenai
Municipal Airport;
II. The Bidder acknowledges that all the documents and
statements submitted with the Bid Proposal become
the property of the City when received by the City
and become public information once the bid is
opened;
III. The Bidder filed herewith is not made in the
interest of or on behalf of any undisclosed
person, partnership, company, association,
organization, or corporation;
IV. The bid is genuine and not collusive or sham;
V. The Bidder has not, directly or indirectly,
induced or solicited any other bidder to put in a
false or sham bid and has not directly or
indirectly colluded, conspired, connived, or
agreed with any bidder or anyone else to put in a
sham bid or that anyone shall retrain from
bidding;
VI. The Bidder has not in any manner, directly or
indirectly, sought by agreement, communication, or
conference with anyone to fix any overhead,
profit, or cost element of such bid price or that
of any other bidder, or to secure any advantage
against the City of Kenai or anyone interested in
the proposed Concession Agreement;
VII. All statements contained in the bid and supporting
documents are true;
VIII. The bidde has notVerleN
rectly o indirect
sumitte h s bior a b eakdo t ereof
or the ont is, o divul inform
BA-1
Tlmlhy I Rogers
.:,Cur •ttanrr
ix...
.'Cm of KENM
ii! !te polo"
KMY, ANw Y!!!t t
,,7tw •� irtt
or dates relative thereto, or paid or agreed to
1 pay, erectly or indi ctly, a money o other
valu�ble c siderat'o for a stance r aid
rend6red o o be n ered ocuri g r
It
attekptin t pro re the nc sion g eem
abovq ref rr d t to corpo ati ,
partn rT: ip, o any, associatio or
".''-
or to`�ah other member or agent thereof, or to any
other `ire dividual; wy
VIII. The Bidder will not pay or agree to pay, directly
or in irect any money or other valuable
eonsi Brat' n to any poratio , partner ip,
comps y, so iatio ganiza o , or ny
membe or age t the eof or t an oth
indiv du is f r a' or ssi ante in ecuring t e
agree t abo Terre in the ent the sa e
is awarded to the Bidder;
. Vinothy A. Ropers
.,;i..Gir •Uornq
CITY OF KENAI
2t0Fdelse,
_;IWd6lusµa U961 t
IX. The Bidder is not in arrears in any payments owing
to the City nor is he in default of any obligation
to the City; nor is he a defaulter as
surety or otherwise upon any obligation to the
City; nor has he failed to perform faithfully and
diligently any previous contract with the City.
Signed at on ti:is
day of =93
Signature
Title
Individual Surety
SUBSCRIBED and SWORN to before me
Notary Public in and for the State of
this day of
198
a
on
Notary Public in and for the State
of
My Commission Expires:
BA-2
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b. Date of Organization:
C. Agreement recorded at:
3orough/County/Judicial District ,
State Date
d. If partnership, or joint venture is registered Y`
with the State of Alaska, Department of Commerce,
state date of registration: R,
5. If the Bidder will operate the Bar Concession as a
corporation, answer the following:
a. Date incorporated: ;
In what state?
b. If corporation is registered with the State of
Alaska, Department of Commerce to do business in
the State of Alaska, state the date of
registration:
C. Name, mailing address, amount of stock -held
(number and type), and experience in the retail
sales business of the following corporate officers
and Board of Directors meinoers:
CORPORATE OFFICERS
President: Name
Address. -
Stock:
Experience:
BQ-2
Vice President: Name
Address:
Stock:
Experience:
Secretary• Name
Address:
Stock:
Experience:
Treasurer: Name
Address:
Stock:
Experience: _
BQ-3
BOARD OF DIRECTORS
Chairman: Name:
Address:
Stock:
Experience: _
Member• Name:
Address:
Stoc;t:
Experience:
Member: Name:
Address: --- -� _-.—
Stock:
Experience:
BQ-4
Member• Name:
Address:
Stock:
Experience:
Member: Name:
Address:
Stock:
Experience:
d. List the five (5) stockholders owning the largest
amount of stock in the corporation (excludina
corporate officers and members of the Board of
Directors already listed under Question No. 5(c)
above). Indicate name, mailing address, and
number and type of shares held.
Name:
Address:
Stock:
Name:
Address:
Stock:
BQ-5
Name:
Address:
Stock:
Name:
Address:
Stock:
Name:
Address:
Stock:
6. Attach a description of the retail liquor sales
businesses which the Bidder has operated since
January 1, 1978. List only those retail sales
businesses which generated gross sales in excess or
$150,000.00* per calendar year. The description must
include the following information for each listed:
a. Business name.
b. The calendar years during which the business
generated annual gross sales exceeding
$150,000.00*.
C. The actual gross sales* generated by the business
for the calendar years listed in accordance with
paragraph (b) above.
d. The mailing address and telephone number of the
agency responsible for the operation of the
business, together with the name of the manager or
other contact who will be able to confirm the
accuracy of the data furnished by the bidder in
response to this Question No. 6.
BQ-6
� • •.. asY . nv - '
ar , •
* NOTE: All figures must be in U.S. dollars as
valued during the calendar year to which reference
is made. No inflation adjustment for intervening
years is to be included.
7. Attach a description of other retail sales business(es)
which the Bidder has operated since January 1, 1978.
List only those business(es) which generated gross
sales in excess of $150,000.00* per calendar year per
single location. The description must include the
following information for each such business:
a. Location - Street address, city and state
(country, if not located in the USA).
b. Calendar years during which the business generated
annual gross sales exceeding $150,000.00*.
C. The actual .gross sales* generated by the business
for the calendar years listed in accordance with
paragraph (b) above.
d. The mailing address, telephone number, and contact
name for a municipal government agency, CPA firm,
or other independent source(s) that can confirm
the accuracy of the data furnished by the Bidder
in response to this Question No. 7.
* NOTE: All figures must be in U.S. dollars as
valued during the calendar year to which re*erence
is made. No inflation adjustment for intervening
years is to be included.
8. Financial References: Attach a list of at least two
(2) banks or other financial institutions with which
the Bidder regularly does business. Include name and
address of the banks or institutions as well as the
name and telephone number of an officer of each who can
verify the Bidder's financial standing.
9. Attach financial statements (balance sheets and
operating statements, if available, or annual reports,
if bidder is a corporation) for 1985, 1986, and 1987.
The financial statement for 1987 must be subscribed by
the Bidder's chief financial officer and be accompanied
BQ-7
by a Certified Public Accountant's report for that
year. If the Bidder's 1987 financial statement was not
audited by a CPA firm, a copy of the Bidder's 1987
federal tax return must be submitted.
If the Bidder is a new partnership or joint venture,
submit only the financial statements of the business
entity which meets the experience and financial
requirements of this bid offering.
The undersigned hereby vouch for the truth and accuracy of all of
the statements, answers, and representations made in this
questionnaire, including all supplementary statements attached
hereto.
(If Bidder is a partnership or joint venture, all partners
or members of the joint venture must sign; -1-f Bidder is a
corporation, the signature of one duly authorized
renresentative is sufficient.)
T1t e
Title
T1.t�a
Title
Title
T--Lt1e
DATE:
:M
r
210 FIDALGO STREET
KENAI, ALASKA 99611
BAR CONCESSION AGREEMENT
KENAI MUNICIPAL AIRPORT TERMINAL BUILDING
THIS AGREEMENT, made this day of , 1989, by
and between the City of Kenai, hereinafter referred to as the
"CITY", whose address is 210 Fidalgo Street, Kenai, Alaska, 99611,
and F whose address is
hereinafter referred to as the
"CONCESSIONAIRE."
W I T N E S S E T H
WHEREAS, the CITY owns and operates the Kenai Municipal
Airport, located in Kenai, Alaska, hereinafter referred to as the
"AIRPORT"; and,
WHEREAS, in connection with the AIRPORT, the CITY owns the
Terminal Building, hereinafter referred to as the "TERMINAL"; and,
WHEREAS, the CONCESSIONAIRE desires to operate a bar
concession business for the purpose of providing a lounge with sale
of alcohol by the drink; and,
WHEREAS, the CONCESSIONAIRE was the successful bidder for the
exclusive right to operate said bar concession business;
NOW, THEREFORE, in consideration of the premises and of the
charges, fees, covenants, and agreements contained herein, the
parties hereby agree to all conditions as follows:
ARTICLE I
DEFINITIONS
For the purposes of this agreement, the terms listed below
will mean:
A. "Agreement": This Concession Agreement together with
all future amendments or supplements which may be
executed by the parties to this Agreement.
B. "Airport": The Kenai Municipal Airport, Kenai, Alaska
as it presently exists as of the date of the execution
of this Agreement.
C. "Airport Manager": The CITY's designated Manager at
Kenai Municipal Airport.
1 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
D. "In -Bond Merchandise": Merchandise which United States
Customs Service regulations (Title 19, Code of Federal
Regulations) permit to be sold under duty or tax free
conditions.
E. "Terminal": The CITY's airline nassenver terminal
building at the Airport, as it presently exists as of
the date of the execution of this Agreement.
F. "Food and Beverage for 'On Premises Consumption"': Food
and beverage items which are prepared and served to the
customer for immediate consumption on, or in the
immediate vicinity of a concession premises.
G. "Food and Beverage for 'Off Premises Consumption'": Food
and beverage items which are packaged and sold for later
consumption by the customer outside the Terminal..
H. "Premises": The TERMINAL floor space leasea under this
Agreement by the CITY to the CONCESSIONAIRE for the uses
authorized in this Agreement, specifically to operate a
bar concession business zor the purpose of proviaing a
lounge and sale of alconoi by the drink for the
convenience of the traveling public in said TERMINAL for
a concession retail space; a.Ll as shown on Exhibit "A",
attached hereto and made a part hereor.
I. "Specialty Food Merchandise": Food items which nave been
prepared, packaged, aaa sold for Off -Premises consumption
only, specifically: jams and jellies; boxed candies,
nuts and fruits; fresh, frozen, canned, dried or
preserved meat and sea�ood prouucts.
ARTICLE II
RIGHTS GRANTED
Insofar as the CITY is legally able to bind itself, the CITY
hereby grants to the CONCESSIONAIRE, subject to the terms,
conditions, and covenants contained herein, full authority to have
and to exercise the following rights:
A. EXCLUSIVE RIGHTS: The CITY hereby agrees not to permit,
nor confer any right upon, any person or company other
than the CONCESSIONAIRE to exercise the following
"exclusive rights":
1. The exclusive right to use and occupy the Premises
for the purposes authorized herein.
2. The exclusive right to operate a bar concession
business in the TERMINAL for the purpose of
2 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
s
providing a lounge with sale of alcohol and
incidental beverages by the drink for the
convenience of the traveling public.
3. The foregoing exclusive rights specifically do not
include the following rights and privileges:
(A. THE SALE OF IN -BOND MERCHANDISE AS DEFINED IN
ARTICLE I HEREIN.
B. ANY AND ALL SALES OF MERCHANDISE FROM VENDING
MACHINES OR OTHER MECHANICAL DEVICES,
INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS:
COFFEE AND SOFT DRINKS, INSURANCE POLICIES,
THE DISPENSATION OF CASH, MONEY ORDERS AND
CHECKS, AND THE LIKE.
C. THE SALE OF ICE CREAM AND OTHER FROZEN
CONFECTIONS OF ANY KIND.
D. THE SALE OF U.S. POSTAGE STAMPS, TELEX OR
TELETYPE SERVICES, COPY SERVICES, AND LONG
DISTANCE TELEPHONE SERVICES.]
je]a. The sale of any item or service for which the
CITY has granted exclusive concession rights
to others as of March 1, 1989.
[F. THE SALE OF FRESH FLOWERS, POTTED PLANTS, AND
OTHER FLORIST ITEMS.
G. THE USE F THE1TILVTIYSIP
ES Ai�IY VE
ENTE TAI T OR UDI G,LIMIED TO M C, COa4M itY, Qi2
DANC N .
H. USE OF THE PREMISES FOR ANY PURPOSES WHICH THE
CITY HAS NOT SPECIFICALLY AUTHORIZED THE
CONCESSIONAIRE TO PERFORM UNDER THIS AGREEMENT.
I. THE SALE OF ANY ITEM OR SERVICE WHICH IS
INCLUDED IN THE EXCLUSIVE RESTAURANT OR GIFT
SHOP CONCESSIONS THE CITY IS CURRENTLY OFFERING
FOR LEASE. IT IS THE SOLE RESPONSIBILITY OF
THE BIDDER TO INQUIRE OF THE CITY WHICH ITEMS
AND SERVICES ARE INCLUDED IN THE EXCLUSIVE
RESTAURANT AND GIFT SHOP CONCESSIONS NOW
OFFERED BY THE CITY.]
3 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
B. GENERAL RIGHTS:
1. The right to ingress and egress and occupancy of
the premises by the CONCESSIONAIRE, its officers,
contractors, suppliers, service personnel, Guest,
patrons and invitees, subject to the security rules
of the Airport.
2. The right to construct and install all fixtures,
equipment and other improvements necessary to
operate said concession, subject to the prior
written approval of the CITY as provided herein.
C. RESERVATIONS:
1. Other than the merchandise described in subsection
A(2) of this article, no other product, merchandise,
or service shall be sold by CONCESSIONAIRE without
the prior written consent of the CITY. In the event
any question or dispute arises as to the sale of any
specific item or category of items on the Premises,
the CITY shall be considered the final authority in
resolving any said question or dispute. Decisions
rendered by the CITY in such questions or disputes
shall be delivered in writing to the CONCESSIONAIRE.
The CONCESSIONAIRE shall have the right to request
a CITY review of any such questions or disputes,
provided the reauest is made in writing.
2. The CITY specifically reserves the right to grant
to others the rights and privileges not specifically
and exclusively granted to the CONCESSIONAIRE. The
rights and privileges granted to the C0:ICES SIONAIRE
in this Agreement are the only rights and privileges
granted to the CONCESSIONAIRE by this Agreement.
The CONCESSIONAIRE has no easements, rights, or
privileges, express or implied, other than those
specifically granted by this Agreement.
ARTICLE III
TERM
This Agreement shall be effective beginning
The concession term during which the CONCESSIONAIRE is granted the
exclusive rights specified under Article II herein and is
authorized to operate the concession business hereunder shall begin
on August 1, 1989, and shall terminate on July 31, 1997.
Upon mutual agreement by the LESSOR and LESSEE, the lease may
be renewed for a period of up to f ive ( 5 ) years. LESSEE shall
notify the CITY in writing of LESSEE's desire to renew the lease.
4 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
Should the LESSEE desire to renew the term of the lease for a
period of up to five (5) years, LESSEE shall notify the CITY in
writing at least one (1) year prior to the expiration of the
current lease term. If within sixty (60) days after the receipt
of said notice by the CITY, the LESSOR and LESSEE have not reached
mutual agreement on the term of the renewal and the amount of the
monthly lease rate during the renewal term, the lease shall not be
renewed or extended.
ARTICLE IV
RENTS AND FEES
A. For use of the premises, facilities, services, rights
and privileges granted by the Agreement, the
CONCESSIONAIRE hereby agrees to pay to the CITY the one-
time premium, [PLUS1 monthly concession payments in the
amount of $2,500.00, Dlus an annual surcharge of five
percent (5%) on gross sales of $200,000.
B. The rent guarantee in the amount of $5,000.00 for the
last two (2) months of the contract term
(June 1,-1997 to July 31, 1997) shall be due and payable
immediately upon execution or this. Agreement by the
CONCESSIONAIRE. All other payments required by this
Article must be submitted monthly to the CITY by the
first day of each calendar month, with the first such
payment due on the first day of August 1, 1989.
C. Payments made under this Agreement must be free from all
claims, demands, set -offs, or counterclaims of any kind
against the CITY, and must be made in cash or by check,
bank draft, or money order made payable to the City of
Kenai and delivered or mailed to: Finance Director, City
of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611, and
shall be in United States of America currency.
D. All of the CONCESSIONAIRE's reports required by this
article must be submitted in terms of United States of
America currency.
E. Any and all rents, charges, fees, or other considerations
which are due and unpaid at the expiration, or voluntary
or involuntary termination or cancellation of this
Agreement will be a charge against the CONCESSIONAIRE and
his property, real or personal, and the CITY will have
such lien rights as are generally allowed by law, and
enforcement may be made by the CITY or its authorized
agent.
5 - BAR CONCESSION AGREEMENT
LESSOR:
LESSEE:
F. Interest and penalties will accrue and be payable on all
rents and fees due and unpaid pursuant to Kenai Municipal
Code 1.75.010.
ARTICLE V
PERFORMANCE BOND
The CONCESSIONAIRE hereby agrees to post a performance bond
in the amount of $100,000.00 to assure payment of the fees during
the entire term of this Agreement as stipulated herein and to
assure compliance with all covenants, conditions, or provisions
contained herein. Said bond must be provided by the CONCESSIONAIRE
in one of the following forms:
A. A performance bond in the amount of $100,000.00. Said
bond must be in a form acceptable to the CITY. The bond
must be maintained and renewed by the CONCESSIONAIRE as
necessary to remain in force throughout the term of this
Agreement. The bond shall be subject to attachmment by
the CITY upon the CONCESSIONAIRE's failure to pay any fee
required by this Agreement within thirty (30) days
following the date on wnicn said fee oecomes due and
payable. Further, the nona snail be subject to
attachment by the CITY upon the failure by the
CONCESSIONAIRE to cure a breach of any of the conditions,
covenants, or provisions of this Agreement within thirty
( 30 ) days following the date on which the CITY serves the
CONCESSIONAIRE with written notice of said breacia.
B. A cash deposit in the amount of $100,000.00 to be held
by t:qe CITY throughout the term of this Agreement without
bearing interest. The cash deposit shall be subject to
retention by the CITY upon the CONCESSIONAIRE's failure
to pay any fee required by this Agreement within thirty
(30) days following the date on which said fee becomes
due and payable or upon the CONCESSIONAIRE' failure to
cure a breach of the conditions, covenants, or provisions
of this Agreement within thirty (30) days following the
date on which the CITY serves the CONCESSIONAIRE with
written notice of said breach. Upon the expiration or
termination of this Agreement and performance of all the
terms herein, said deposit will be refunded to
CONCESSIONAIRE, less any outstanding, unpaid fees due
under Article IV of this Agreement.
C. A time Certificate of Deposit (TCD) in the amount of
$100,000.00 naming the CITY as the sole payee for the
principal amount shown on the certificate. The TCD must
be held by the CITY where it will remain until maturity.
At the time of maturity, the TCD must be renewed by the
CONCESSIONAIRE continuing to name the CITY as the sole
6 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
payee until this Agreement expires or is terminated and
the CITY has determined that all fees have been maid and
all covenants, conditions, and provisions have been met.
CONCESSIONAIRE shall be shown as the sole payee for all
interest accrued during each period of time the TCD is
issued. At the time of the expiration or termination of
this Agreement, provided all fees have been paid and the
CONCESSIONAIRE has complied with all covenants,
conditions, and provisions contained herein, the CITY
shall release the principal amount of the TCD to the
CONCESSIONAIRES, less any outstanding, unpaid fees due
under this Agreement.
The CONCESSIONAIRE must furnish the CITY with a copy of the
bond, a cash deposit, or a TCD by no later than ,
1989.
ARTICLE VI
PREMISES
The CITY hereby agrees to deliver the Premises to the
CONCESSIONAIRE as of August 1, 1989, following the execution of
this Agreement by the CITY. CONCESSIONAIRE hereby agrees to accept
the Premises demised under this Aqreement in their then -present
condition and "as is." It is hereby understood and agreed by
CONCESSIONAIRE that the CITY's obligation hereunder is limlted to
making available to CONCESSIONAIRE, for its use, the Premises.
However, in the event that construction delays in the current
remodeling project delay the ability of the CITY to deliver the
premises, this Agreement shall stay in force and effect. Said
delay shall cause the CITY to pro -.rate the amount of monthly rent
due. Any such delay shall not effect the One -Time Premium and no
refunds in part or whole shall be made from the one-time premium.
A.
ARTICLE VII
CONSTRUCTION AND REMODELING
Initial Construction/Remodeling
In an effort to better serve the needs of the travelers
using the Terminal, the CITY has initiated an expansion
and remodeling project for the Terminal.
The CONCESSIONAIRE hereby acknowledges the importance of
said project and hereby agrees to cooperate with the CITY
and the CITY's contractor(s) throughout the project,
including those segments of the project which relate to
the construction or remodeling of retail space. The CITY
hereby agrees to minimize the adverse impact of the
construction on the CONCESSIONAIRE's business to the
extent possible. However, the CITY may not be held
7 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
responsible by the CONCESSIONAIRE for inconveniences,
business interruption, or sales losses resulting from
said construction unless said inconveniences,
interruptions, or losses result from proven negligence
by the CITY.
B. General Construction Recuirements:
1. Any alterations, construction, or improvements
desired by the CONCESSIONAIRE of the Premises must
be neat, presentable, and compatible with the
architecture of the building, as determined by the
CITY, and must be performed at no cost to the CITY.
2. Before beginning construction of any improvements
on the Premises, the CONCESSIONAIRE must first
submit detailed drawings of the proposed
construction and obtain the written approval of the
CITY. If requested by the CITY, the CONCESSIONAIRE
shall also submit architectural renter,-ngs of the
proposed improvements as well as samples of
materials and colors.
3. CITY shall review and approve or disapprove the
proposed construction and transmit said approval or
disapproval in writing to the CONCESSIONAIRE.
4. Within thirty 00) days after comp-Letion of any
constructions of placement of improvements upon the
Premises, the CONCESSIONAIRE shall aeliver to
the CITY detailed copies of as-nuilt drawings
showing the location and dimensions of improvements
placed or constructed on the Premises by the
CONCESSIONAIRE.
C. ownership:
1. Upon the installation of any structural or other
concession improvements, including„ but not limited
to, interior walls, ceilings, carpeting, draperies,
finished flooring, electrical wiring, air-
conditioning ducts and equipment, concession
furnishings of such nature as cannot, in the Airport
Manager's opinion, be removed without structural
damage to the Premises, and all interior decoration
and finishing erected or installed by CONCESSIONAIRE
upon the Premises, title thereto shall vest in the
CITY.
8 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
2. Title to all furniture, furnishings, supplies and
removable fixtures and eauipment shall at all times
during the term of this Agreement remain vested in
the CONCESSIONAIRE.
ARTICLE VIII
CONCESSION MERCHANDISEIOPERATION OF CONCESSION SERVICES
CONCESSIONAIRE understands and agrees that its operation under
this Agreement is a service to airline passengers and the users of
the Airport. CONCESSIONAIRE also understands and agrees that the
ability of the CITY to effectively operate the Airport, and to
promote tourism to the CITY, depends in part upon the quality of
CONCESSIONAIRE's services and the attractiveness of its prices.
Accordingly, CONCESSIONAIRE shall conduct its operation in a first-
class, businesslike, efficient, courteous, and accommodating
manner.
Therefore, at all times during the term of this Agreement,
the CONCESSIONAIRE will strictly comply with the following
conditions and requirements.
A. Business Develonment: CONCESSIONAIRE covenants to take
all reasonable measures in every proper manner to
maintain and develop the business conducted by it and
that CONCESSIONAIRE will not divert or cause or allow by
its own actions any business to be diverted from the
Terminal.
B. Orderly Operation: The CONCESSIONAIRE must conduct all
operations and business on the Airport in an orderly and
peaceful manner and will not interfere with other
tenants, users, or occupants of the Airport.
C. Merchandise: CONCESSIONAIRE shall at all times offer
the widest possible selection of permissible beverages
and maintain sufficient inventories to accommodate
customer demand. The CITY agrees that the selection of
merchandise items within the concession rights granted
by this Agreement shall be within the CONCESSIONAIRE's
discretion; subject, however, to disapproval by the CITY
if, in its sole determination, the selection of items
offered is inadequate or items being offered are not
within the concession rights granted by this Agreement
or items being carried are not in good taste considering
the public nature of the Terminal. The CITY agrees to
meet and confer with the CONCESSIONAIRE in such cases of
disapproval by the CITY, but the CONCESSIONAIRE hereby
acknowledges that the decision of the CITY in such cases
shall be conclusive.
9 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
itim
D. Product Quality: The CITY, in entering into this
Agreement, has foremost in mind to provide the air
traveler with facilities, service, and products of the
highest quality. The CONCESSIONAIRE will therefore
handle only merchandise and products which are of highest
quality, subject to the continuing review and approval
of the Airport Manager.
E. Reasonable Pricinct: The CONCESSIONAIRE will also furnish
all products and services authorized hereunder to its
customers and patrons upon a fair, equal, and non-
discriminatory basis and charge fair, reasonable, and
non-discriminatory prices for each unit of product or
service. All prices shall be subject to the continuing
review and approval of the Airport Manager. The Airport
Manager's pricing review shall be based on comparisons
of prices charcled for similar items in similar
establishments located within the city limits of Kenai,
Alaska.
F. :-io rs o Ooe ation: For the pur es this cle,
the m ache passeng ghts will ude:
egu arly uled i ts.
All other passenger flights for which the
CONCESSIONAIRE has been given at least seven (7) calendar
days notice prior to arrival.
1. The CONCESSIONAIRE will actively operate concessions
authorized by this Agreement so as to best serve the
needs of airline passengers. The CONCESSIONAIRE
shall prepare a written schedule of the operating
hours and submit the schedule to the Airport Manager
for approval. The schedule must provide for
operation to serve all scheduled passengers' flights
operating to or from the Terminal.
2. If the CONCESSIONAIRE is able to demonstrate with
supporting data that operating the concession to
meet all scheduled passenger flights, is not
profitable or economically feasible and is not in
the best interest of the CITY, the CONCESSIONAIRE
may request a waiver of the requirement to meet all
scheduled flights. The Airport Manager's
approval/disapproval shall be based on serving the
needs of the public. The CONCESSIONAIRE hereby
agrees to adhere to the schedule of operating hours
approved by the Airport Manager.
BAR CONCESSION AGREEMENT
LESSOR:
LESSEE:
3. Except in cases of emergencies, the CONCESSIONAIRE
must obtain the approval of the Airport Manager
prior to any special periods of retail concession
space closure for repairs, maintenance,
construction, or other reasons.
G. Continuous Operation: Subject to Subsection (F) of this
Article, the CONCESSIONAIRE hereby agrees to operate
throughout the term of this Agreement on a continuous
basis, uninterrupted by any period of closure to
passengers on scheduled passenger flights using the
Terminal. Provided that the provisions of this
subsection will not apply to any period during which the
CONCESSIONAIRE is unable to operate his business on the
Premises as a result of an act or directive of the CITY
or other higher authority or as a direct result of a
natural disaster which effects the tenability of the
Terminal.
H. Sales Receipts: Sales receipts for each and every sales
transaction must be given to the customer. Sales
receipts must clearly identify CONCESSIONAIRE by name,
address, ana telephone number.
I. Automated Accounting Eauioment: The CONCESSIONAIRE shall
install and use automated accounting equipment which is
acceptable to the CITY to accurately and completely
record all cash and credit transactions.
J. Premises Maintenance: The CONCESSIONAIRE shall be
responsible for the clay -to -day maintenance of the
Premises, including janitorial services and trash
collection.
The CONCESSIONAIRE shall maintain the Premises in good
repair and appearance and in a safe condition at all
times. The CONCESSIONAIRE shall do or cause to be done
without delay all those things which, in the opinion of
the Airport Manager, are necessary or desirable in the
interest of safety or to maintain the Premises in good
repair and appearance.
IX
PERSONNEL
CONCESSIONAIRE shall maintain an adequate sales force on the
Premises and use the utmost skill and diligence in the conduct of
CONCESSIONAIRE's business in the Premises.
The CONCESSIONAIRE shall, in the operation of the concession
authorized under this Agreement, only employ or permit the
11 - BAR CONCESSION AGREEMENT LESSOR:
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1 � .
employment of personnel that will assure a high standard of service
to the public. All of the CONCESSIONAIRE's personnel, while on
duty in the Terminal shall be neat in appearance and courteous at
all times and shall be appropriately attired with badges or other
suitable identification. No personnel employed by the
CONCESSIONAIRE while on or about the Premises o
use i e, act in a loud, boisterous, or otherwise
or to be permitted to sot] i_t b,
idetermin d _aw t UaZalter.
T appoint, and properly train
a m _ for the general day-to-day
operations Such person must be an
outstanding, highly qualified and experienced manager or supervisor
of bar operations, vested with full power and authority to accept
service of all notices provided for herein and regarding operation
of the concession business herein authorized, including the quality
and prices of merchandise and the appearance, conauct, and demeanor
of CONCESSIONAIRE's agents, servants, and employees. Said manager
shall be assigned to a duty station or office at the Airport where
he shall ordinarily be available during regular business hours and
where, at all times during his absence, a responsible sunorainate
shall be in charge and available.
ARTICLE X
CITY'S RIGHTS OF ACCESS AND INSPECTION
CITY, by its officers, employees, agents, representatives,
and contractors, shall have the right at all reasonaoie times to
enter upon the Premises for the purpose of inspecting the same,
for observing the performance by CONCESSIONAIRE of its obligations
under this Agreement or for doing any act or thing which the CITY
may be obligated to do or have the right to do under this
Agreement, or otherwise, and no abatement of fees and charges shall
be claimed by or allowed to CONCESSIONAIRE by reason of the
exercise of such right..
Except in the case of an emergency, all inspections will be
coordinated with the CONCESSIONAIRE in order to minimize
interference with the CONCESSIONAIRE's activities on the Premises.
CONCESSIONAIRE shall assure CITY of emergency access to the
Premises either by delivering keys to the Premises to the Airport
Manager or by providing emergency telephone numbers by which
CONCESSIONAIRE or CONCESSIONAIRE's agent may be .reached on a
twenty-four hour basis.
Without limiting the generality of the foregoing, the CITY,
by its officers, employees, representatives, and contractors, shall
have the right, but not the obligation or responsibility, for the
benefit of CONCESSIONAIRE or for the benefit of others at Airport,
12 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
� 1 .
to maintain existing and future utility systems or portions thereof
on the Premises, including therein, without limitation thereof on
the Premises, including therein, without limitation thereto,
systems for the supply of heat and electricity and for the
furnishing of fire alarm, fire protection, sprinkler, air
conditioning, telephone, telegraph, tele-register, and
intercommunication services, and to maintain lines, pipes, mains,
wires, conduits, and equipment connected with or appurtenant to all
such systems, and to enter upon the Premises at all reasonable
times to make such repairs, alterations, and replacements as may,
in the opinion of Airport Manager, be deemed necessary or advisable
and, from time to time, to construct or install over, in, under,
or through the Premises new lines, pipes, mains, wires, conduits,
and equipment; provided, however, that such repair, alteration,
replacement, or construction shall not unreasonably interfere with
the use of the Premises by CONCESSIONAIRE and provided further that
nothing herein shall be so construed as relieving CONCESSIONAIRE
of any obligation imposed upon it herein to maintain the concession
areas and the improvements and utility facilities therein.
At any time, and from time to time, during ordinary business
hours, within twelve (12) months preceding the expiration of the
term of this Agreement, CITY by its agents and employees, wnether
or not accompanied by prospective concessionaires, occupiers, or
users of the Premises, shall have the right to enter thereon for
the purpose of exhibiting and viewing all parts of the same.
ARTICLE XI
CITY SERVICES
The City covenants and agrees to do the following:
A. To maintain the structure of the Terminal, the exterior
roofs and exterior walls.
B. To wash all exterior windows, and clean and maintain the
public areas in the Terminal.
C. To maintain the electrical, public address, plumbing,
and heating systems on the Premises and in the Terminal
in good condition and repair except that the CITY may
refuse to maintain any systems installed on the Premises
by the CONCESSIONAIRE and may charge the CONCESSIONAIRE
for any repair resulting from the CONCESSIONAIRE's
negligence.
D. The CITY reserves the right to enter onto the Premises
to make any repair or alterations necessary to the proper
functioning of the terminal building without liability
to the CONCESSIONAIRE for any damage to the Premises.
As a result of any entry pursuant to this provision, the
13 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
CITY will only be liable for its own negligence and for
returning the Premises to their former condition using
standard materials.
E. The CONCESSIONAIRE hereby expressly waives any and all
claims and holds the CITY harmless for damages arising
or resulting from failures or interruption of utility
services furnished by the CITY herein including but not
limited to stoppages in electrical energy, the quantity
or temperature of water, space heating, or for the
failure or interruption of any public or passenger.
conveniences.
ARTICLE XII
LAWS AND TAXES
A. This Agreement is issued subject to all requirements of
the laws and regulations or the City of Kenai relating
to the leasing of lands and facilities and the granting
of privileges at airports.
B. At no expense to the CITY, the CONCESSIONAIRE will
conduct all activities or business authorized by this
Agreement in compliance with all federal, state, local,
and Airport laws, ordinances, rules and regulations now
or hereafter in force which may be applicable to the
activities or business authorized herein or to the use,
care, operation, maintenance, and protection of the
Airport, including but not limited to matters of health,
safety, sanitation, and pollution. The CITY shall not
be liable to CONCESSIONAIRE for any diminution or
deprivation of CONCESSIONAIRE's rights hereunder on
account of the exercise of any such authority, nor shall
CONCESSIONAIRE be entitled to terminate the whole or any
portion of this Agreement by reason thereof.
C. The CONCESSIONAIRE shall obtain all necessary licenses
and permits, pay all taxes lawfully imposed upon the
Premises, and pay any other fees and charges assessed
under applicable public statutes or ordinances.
D. In any disputes between the parties, the laws of the
State of Alaska will govern and any lawsuit must be
brought in the State courts of Alaska.
E. The CONCESSIONAIRE agrees to notify the CITY of any
claim, demand, or lawsuit arising out of the
CONCESSIONAIRE's occupation or use of the Premises. Upon
14 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
the CITY's request, the CONCESSIONAIRE will cooperate and
assist in the investigation and litigation of any claim,
demand, or lawsuit affecting the Premises.
F. If CITY shall, without any fault, be made a part to any
litigation commenced by or against CONCESSIONAIRE arising
out of CONCESSIONAIRE's use or enjoyment of the Premises
or arising out of the rights authorized by this Agreement
and as a result of which CONCESSIONAIRE is finally
adjudicated to be liable, then CONCESSIONAIRE shall pay
all costs and reasonable attorney's fees incurred by or
imposed upon the CITY in connection with such litigation.
ARTICLE XIII
INSURANCE
A. The CONCESSIONAIRE shall indemnify, defend, and hold the
CITY harmless from all liability, action, claim, suit,
loss, property damage, or personal injury of whatever
kind resulting from or arising out of any act of
commission by the CONCESSIONAIRE, his agents, employees,
or customers or arising from or connected with the
CONCESSIONAIRE's use ana occupation of the Premises or
the exercise of the rights and privileges granted by this
Agreement.
B. 1. At no expense to the CITY, the CONCESSIONAIRE shall
secure and keep in force during the term of this
Agreement adequate insurance to protect both the
City and the CONCESSIONAIRE in at least the
following types and amounts:
a. Workers' Compensation Insurance in the amounts
and form required by the Workmen's Compensation
Act and the insurance laws of Alaska.
b. Comprehensive General Liability Insurance with
limits not less than $500,000.00 each
occurrence Combined Single Limit Bodily Injury
and Property Damage, including Contractual
Liability, Personal Injury, Products and
Completed Operations Coverages. Said policy
shall include coverage of CONCESSIONAIRE's
independent contractors.
C. Comprehensive Automobile Liability Insurance
with limits not less than $500,000.00 each
occurrence Combined Single Limit Bodily Injury
and Property Damage, including employer's non -
ownership liability and hired auto coverages.
15 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
16 -
d. Property insurance on CONCESSIONAIRE and CITY
improvements, futures, and equinment and
insuring against the perils of fire, lightning,
extended coverage perils, vandalism, and
malicious mischief on the Premises in an amount
equal to the full replacement value of
CONCESSIONAIRE and CITY improvements, fixtures,
and equipment.
Said policy or policies shall contain a loss
payable endorsement in favor of the parties
hereto as their respective interests may
appear. "Full replacement value" shall be
determined by a qualified appraiser at the time
said improvements are initially insured and
shall be redetermined annually thereafter
throughout the term of this Agreement. It
shall be CONCESSIONAIRE's responsibility to
obtain said redeterminations. Both
CONCESSIONAIRE and CITY shall be promptly
notified of the results o� said
redeterminations and CONCESSIONAIRE shall
immediately thereafter adjust the amount of
the insurance coverage to correspona witn each
redetermination of full replacement value.
e. Grosota
ings Business Interruption Insurance
in ant of of les earl o nun red
percU o) _ nnual Re taxi 7e st
yearis ".re yen S is ol� s,covent rupt s o- b ess nowsoe
caus
2. The CONCESSIONAIRE shall provide the CITY with proof
o,f insurance coverage in the form, of an insurance
policy or a certificate of insurance coverage,
approved by the CITY, together with proof that the
premiums have been paid. Comprehensive General
Liability Insurance, Comprehensive Automobile
Liability Insurance, Gross Earnings Business
Interruption Insurance and Property Insurance
policies shall be endorsed to provide the following:
a. Name of the CITY as an additional insured; and,
b. Provide that the CITY be notified at least
thirty (30) days prior to any termination,
cancellation, or material change in the
insurance coverage; and,
BAR CONCESSION AGREEMENT
LESSOR:
LESSEE:
c. Include a waiver of subrogation by which the
insurer waives all rights of subrogation
against the CITY for payments made under the
policy.
3. The requirement of insurance coverage will not
relieve the CONCESSIONAIRE of any other obligations
under this Agreement.
4. Certificates of insurance evidencing all coverages
and endorsements above shall be furnished to the
CITY prior to commencement of any operations under
this Agreement.
5. CONC SSI IRE ees t the erms of these
insu an a equi me is m y b in a ed revised
upon e w 't n de an by he IT is dAed
must a base n reas able an justif ble g.
ARTICLE XIV
CANCELLATION
A. Cancellation by CITY. The CITY may cancel this Agreement
and recover possession of the Premises by giving the
CONCESSIONAIRE thirty (30) days prior written notice upon
the happening of any of the events listed below, unless
the breach is cured within said thirty (30) days:
1. The CONCESSIONAIRE's failure to pay wnen due the
rents, fees, penalties, etc., specified in this
Agreement, including any increases made pursuant to
this Agreement.
2. The return of checks for insufficient funds for
payment of rents or fees.
3. The use of the Premises by the CONCESSIONAIRE for
purposes not authorized by this Agreement.
4. The filing of a petition in bankruptcy by or against
the CONCESSIONAIRE.
5. The entry by any court of a judgment of insolvency
against the CONCESSIONAIRE.
6. The appointment of a trustee or receiver for the
CONCESSIONAIRE's assets in a proceeding brought by
or against the CONCESSIONAIRE.
7. The filing of any lien against the Premises because
of any act or omission of CONCESSIONAIRE and such
17 - BAR CONCESSION AGREEMENT
LESSOR:
LESSEE:
lien is not removed, enjoined, or a bond for
satisfaction of such lien is not posted within. sixty
(60) days; or
8. The levy off any attachment or execution, or the
appointment of any
receiver,
or the execution of
any other process
of any
court of competent
jurisdiction which
is not vacated, dismissed, or
set aside within a
period of
ninety (90) days and
which does, or as
a direct
consequences of such.
process will, interfere with
CONCESSIONAIRE's use
of the Premises or
with its
operations under thisdo
Agreement.
9. The failure of the
CONCESSIONAIRE to operate the
business authorized
in this Agreement for a period
of more than fourteen (14)
consecutive calendar
days.
10. Cessation or deterioration of any service for any
period which, in the determination of the CITY,
materially and adversely affects the operation of
service required to be performea by CONCESSIONAIRE
unaer this agreement.
11. The fal of the Cn SIONAIRE perform
pro is:in occcove t in t. 4 s Ag ement.
No waiver by the CITY at any time or any default on
the part of CONCESSIONAIRE in the performance u: any
of the terms, covenants, or conditions hereof to be
performed, kepr, or observed by CONCESSIONAIRE, shall
be, or be construed to be, a waiver at any time
thereafter by the CITY of any other or suosequent
default in performance of any of said terms,
covenants, or conditions, and no notice by the CITY
shall be required to restore or revive time as of
the essence hereof after waiver by the CITY of
default in one or more instances. The granting of
a waiver by the CITY of any provision or covenant
in this Agreement cannot be enforced or relied upon
unless the waiver is in writing signed on behalf of
the CITY.
B. CITY's Right of Re -Entry. The CITY shall, as an
additional remedy, upon the giving of written notice of
cancellation or termination as above provided, have the
right to re-enter the Premises and every part thereof on
the effective date of cancellation or termination without
further notice of any kind, remove any and all persons
therefrom, and may regain and resume possession either
18 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
� r .
with or without the institution of summary or legal
proceedings or otherwise. Such re-entry, however, shall
not in any manner affect, alter, or diminish any of the
obligations of CONCESSIONAIRE under this Agreement.
C. Rights of the CITY. The CITY, upon termination or
cancellation of this Agreement, or upon re-entry,
regaining or resumption of possession of the Premises,
may occupy the Premises and shall have the right to
permit any person, firm, or corporation to enter upon
the Premises and use the same. Such occupation by others
may be of only a part of the Premises, or the whole
thereof or a part thereof, together with other space, and
for a period of time the same as or different from the
balance of the term remaining hereunder, and on terms and
conditions the same as or different from those set forth
in this Agreement. The CITY shall also have the right
to repair or to make such structural or other changes in
the Premises as are necessary in its judgment to maintain
the suitability thereof for uses and purposes similar to
those granted under this Agreement without affecting,
altering, or diminishing the obligations of
C0.?CEESSIONAIRE hereunder.
D. Survival of CONCESSIONAIRE's Obligations. In the event
this Agreement is terminated or cancelled by the CITY,
or in t-he event the CITY re-enters, regains, or resumes
possession of the Premises, all o the obligations of
CONC,E,SSIONAIRE hereunder shall survive and shall remain
in gull force and effect for the full term of this
Agreement. And, subject to the City's obligation to
mitigate damages, the amount of the fees and charges
shall become due and payable to the CITY to the same
extent, at the same time and in the same manner as if no
termination, cancellation, re-entry, regaining or
resumption of possession had taken place. The CITY may
maintain separate actions to recover any monies then due,
or at its option and at any time, may sue to recover the
full deficiency.
The amount of damages for the period of time subsequent
to termination, cancellation, re-entry, regaining, or
resumption of possession shall be CONCESSIONAIRE's annual
fee obligation, less the amount paid prior to the
effective date of cancellation.
E. Surrender of Possession. CONCESSIONAIRE covenants and
agrees to yield and deliver possession of the Premises
to the CITY on the date of the termination, cancellation,
or expiration of this Agreement promptly, peaceably,
quietly, and in as good order and condition as the same
19 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
now or may be hereafter improved by CONCESSIONAIRE or
the CITY, reasonable use and wear and tear thereof
excepted.
The CONCESSIONAIRE shall be allowed a minimum of ten (10)
calendar days following the effective date of the
cancellation of the Agreement within which to remove all
of the CONCESSIONAIRE's personal property, equipment,
furniture, and fixtures from the Premises. The
CONCESSIONAIRE and the CITY agree, as part of the
consideration for this Agreement, that all property
remaining on the Premises after the expiration of said
ten (10) calendar days will become the sole property of
the CITY, with full title vested in the CITY, and the
CITY may remove, modify, sell, or destroy the property
as it sees fit.
ARTICLE XV
TRANSITION AT EXPIRATION OF AGREEMENT
A. Special Definitions for this Article Only: The following
are for the purposes of this Article only.
1. Turnover is defined as midnight of the day on which
the CONCESSIONAIRE's leasehold interests, concession
rights, and operational responsibilities under this
Agreement end as a result of the expiration of this
Agreement or termination of hold -over as covered
under Article XVIII, General Covenant "G".
2. Transition is defined as the period of activities
prior to turnover during which the concession
described in this Agreement is turned over to a
succeeding CONCESSIONAIRE.
B. The CITY and the CONCESSIONAIRE mutually acknowledge and
agree that upon the expiration, cancellation, or
termination of this Agreement, the CITY has the right to
award any subsequent concession agreement to the most
favorable bidder at a public auction or by any other
legal means then available to the CITY.
C. CONCESSIONAIRE understands and acknowledges that it is
not practical or possible to predict exactly what the
transition schedule and procedures should be to best
serve the needs of the traveling public and the CITY upon
the expiration of this Agreement.
Therefore, as part of the consideration for this
Agreement, the CONCESSIONAIRE hereby agrees that the CITY
20 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
has the right to determine what the transition schedule
and procedures shall be so that needs of the traveling
public and the CITY are best served.
CONCESSIONAIRE hereby acknowledges and agrees that the
transition plan determined by the CITY to best serve the
needs of the traveling public and the CITY :iay_:
1. Require the CONCESSIONAIRE to remove from the
Premises all or any portion of the CONCESSIONAIRE's
fixtures, furniture, and equipment. In that event,
the CONCESSIONAIRE hereby agrees to remove said
items at no cost to the CITY or the succeeding
CONCESSIONAIRE.
2. Require the CONCESSIONAIRE to sell to the succeeding
CCP.CEESSIONAIRE all or any portion of . the
CONCESSIONAIRE's furniture, fixtures, ana equipment,
excluding the CONCESSIONAIRE's computer equipment,
cash registers, and merchandise. In t.lat event, the
CITY may require the CONCESSIGNAIRE to furnish, at
its sole expense, an appraisal(Is)to estaniisn the
sale price of said items. Any such appraisals)
shall be prepared in the manner directed by the
CITY, shall be submitted by the date specified by
the CITY, and shall be subject to the approval of
the CITY.
The CITY hereby agrees to provide the CONCESSIONAIRE
with written notice of the transition plan
determined by the CITY to best serve the needs of
the traveling public and the CITY at least three (3)
calendar months prior to turnover.
The CONCESSIONAIRE hereby agrees to diligently
execute the transition plan determined by the CITY,
to abide by the time schedule, and to cooperate
completely with the CITY and the succeeding
CONCESSIONAIRE in carrying out said transition plan.
ARTICLE XVI
ASSIGNMENT OR SUBLEASE
A. The CONCESSIONAIRE will not mortgage, hypothecate, or
otherwise encumber or assign the concession rights herein
created, nor will the CONCESSIONAIRE sublet or sublease
the Premises in whole or in part without the prior
written consent of the CITY, which consent will be freely
given and not unreasonably withheld if the assignee or
sublessee possesses substantially the same qualifications
as to business ability and financial responsibility as
21 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
the CONCESSIONAIRE. Any attempted assignment, mortgage,
hypothecation, or encumbrance of the concession rights;
any subletting or subleasing of the whole or any part of
the Premises; or other violations of the provisions of
this Article will be null and void and confer no right,
title, or interest in or to this Agreement nor right of
occupancy of the whole or any portion of the Premises
upon any such assignee, mortgage, encumbrancer, pledgee,
or other lienholder, subtenant, successor, or purchaser.
B. Any proposed assignment, lease, sublease, or subcontract
must be submitted to the CITY for approval in four (4)
copies, each bearing the original notarized signature of
all parties. All covenants and provisions in this
Agreement extend to and bind the legal representatives,
successors, and assigns of the parties.
C. The CITY will not withhold its consent to an assignment
of this contract by the CONCESSIONAIRE unreasonably.
ARTICLE XVII
GENERAL COVENANTS
A. Execution by CITY. This Agreement is of no effect until
it has been signed by the City Manager for the City of
Kenai.
B. Approval by CITY. Any approvals required of the CITY by
this Agreement will not be unreasonably withheld.
C. Notices. Any notice required by this Agreement must be
hand delivered or sent by registered or certified mail
to the appropriate party at the address set forth on page
one of this Agreement or to any other address which the
parties subsequently designate in writing.
D. Modification. The CONCESSIONAIRE hereby agrees to any
modification the CITY may make to this Agreement to meet
the revised requirements of federal or State grants, the
operation of the Airport, or to conform to the
requirements of any revenue bond covenant to which the
CITY is a party. Provided, that a modification may not
act to reduce the rights or privileges granted the
CONCESSIONAIRE by this Agreement nor act to cause the
CONCESSIONAIRE financial loss.
No modification or amendments of this Agreement is
effective unless in writing and signed by the parties.
E. Bid Documents. It is expressly understood and agreed
that the Invitation for Bids, Instructions to Bidders,
22 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
the basic bid specifications, including any addenda
thereto, the Bidder's Affidavit and the bond or other
security deposit required under said instructions are
hereby made a part of this Agreement, and each of the
parties hereto does hereby expressly covenant and agree
to carry out and fully perform each and all of the
provisions of said documents upon its part to be
performed.
F. Interrelationship of Provisions. The articles, general
covenants, special covenants, supplements, addenda, and
drawings attached as exhibits are essential parts of this
Agreement and are intended to be cooperative, to provide
for the use of the Premises, and to describe the
respective rights and obligations of the parties to this
Agreement. In case of a discrepancy, figures dimensions
govern over scaled dimensions unless obviously incorrect.
Special covenants govern over articles, both of which
govern over general covenants.
G. Holding Over. If the CONCESSIONAIRE holds over and
remains in possession of the Premises after the
expiration of this Agreement without a written renewal,
the holding over will not operate as a renewal or
extension of the term of this Agreement, but only creates
a tenancy from month to month, regardless of any rent
payments accepted by the CITY. The CONCESSIONAIRE's
obligations for performance under this Agreement will
continue until the month -to -month tenancy is terminated
by the CITY. The CITY may terminate the month -to -month
tenancy at any time by giving the CONCESSIONAIRE at least
ten (10) days prior written notice.
H. Validity of Parts. If any provision or covenant of this
Agreement is declared to be invalid by a court of
competent jurisdiction, the remaining covenants and
provisions will continue in full force.
I. Conflicts Between Concessions. In the event of a
conflict between the CONCESSIONAIRE and any other tenant,
lessee, or CONCESSIONAIRE on the airport as to services
to be provided by respective CONCESSIONAIRE or lessees,
the CITY will decide which services may be provided by
whom. CONCESSIONAIRE agrees to be bound by such
decision, subject to any rights CONCESSIONAIRE may have
to seek judicial relief.
J. Advertising. The display by the CONCESSIONAIRE of any
signs, advertising, or similar matter in the Terminal
with the prior approval of the Airport Manager is hereby
prohibited.
23 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
K. Radio Interference. At the CITY's request, the
CONCESSIONAIRE shall discontinue the use of any machine
or device which interferes with any government operated
transmitter, receiver, or navigation aid until t:^e cause
of the interference is eliminated.
L. Discrimination. The CONCESSIONAIRE covenants and agrees
that discrimination on the grounds of race, color,
religion, national origin, ancestry, age, or sex, will
not be permitted against any patron, employee, applicant
for employment, or other person or group of persons in
any manner prohibited by Federal or State law. The
CONCESSIONAIRE recognizes the right of the CITY to take
any action necessary to enforce this covenant, including
actions required pursuant to any Federal or State law.
M. Affirms e Action. he CONCESSIONAIRE agrees that it
will un ertake an of ' mative action program as required
by 14 QFR Part 152, S bpart E, to sure that no person
will be excluded r particip in in any e loyment
activities covere, b 14 CFR P t 1 2, Subpar on the
groun5s of race,;cre d, color,;pat'opal origin, or sex
The CONCESSIONAIRE h reby agrees th t no person shall sae
exclude on these rounds ;from articigatin in �'or
receiving the ,'servi es or ,+f�enefi of any p oC, o
actiuity covered by saidubpart. The f CONCE SIOIIPAIR
furt:ier agrees that it gill require t at it cgvere
subor:ganization(s) 'o a assuran e t the CI to th
same '.,effect ,,that they will also un rtaxe affirmativ
action programs and -require assurances from thei
suborgAniza/tions, as required by 14 CFR Part 152, Subpart
E .
N. National Emergency.. In case of any national emergency
declared by the Federal Government, the CONCESSIONAIRE
may not hold the CITY liable for any inability to perform
any part of this Agreement as a result of the national
emergency.
O. Disasters. If, in the determination of the CITY, fire,
flood, earthquake, or other casualty damages the Terminal
so extensively as to render it untenantable, either party
may elect to terminate this Agreement upon written notice
to the other party. In the event of such termination,
the rent payable under this Agreement must be prorated
up to the time the Terminal becomes untenantable.
P. Condemnation. If the Premises are condemned by any
proper authority, the term of this Agreement will end on
the date the CONCESSIONAIRE is required to surrender
24 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
possession of the Premises. The CITY is entitled to all
the condemnation proceeds except the CONCESSIONAIRE will
be paid the portion of the proceed attributable to the
fair market value of anv improvements placed on the
Premises by the CONCESSIONAIRE according to the
provisions of 17 AAC 40.330, amended. Rent will also be
adjusted according to the provisions of 17 AAC 40.330,
as amended.
DATED: This day of _ , 1989.
CITY OF KENAI
By: Wm. J. Brighton
Citv Manager
CONCESSIONAIRE
By:
STATE OF ALASKA )
) Ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _ day of _ ,
1989, , being personally known to me or
having produced satisfactory evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of _ ,
1989, WILLIAM J. BRIGHTON, City Manager of the City of Kenai,
Alaska, being personally known to me or having produced
25 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
a
satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the
foregoing instrument on behalf of said City.
?Notary Public in and for Alaska.
My Commission Expires:
Approved as to lease form by City Attorney.
Approved by Finance Director.
Approved by City Manager
Lease Approved by Council on
Janet Ruotsala, City Clerk
26 - BAR CONCESSION AGREEMENT LESSOR:
LESSEE:
CITY OF KENAI
210 FIDALGO STREET
KENAI, ALASKA 99611
ocr : r9r40/
de000s�pxl) Anee r cl-lr
CONTRACT DOCUMENTS RELATING TO
KENAI MUNICIPAL AIRPORT TERMINAL
GIFT SHOP CONCESSION
INVITATION FOR BIDS
GIFT SHOP CONCESSION
TERMINAL
KENAI MUNICIPAL AIRPORT
Sealed bids for the exclusive right to operate a gift shop
concession at the Kenai Municipal Airport will be received at the
City offices, 210 Fidalgo Street, Kenai, Alaska, 99611. All bids
must, be received no later than 2:00 p.m., on ,
1989, at which time and place they will be publicly oaened and
read.
Bids may also
Kenai, Alaska,
City Manager,
be considered.
be mailed to City of Kenai, 210
99611, but must be received in
no later than 2:00 p.m. on
Fidalgo Street,
the office of the
1989, to
All interested parties, including Disadvantaaed Business
Enterprises, are encouraged to submit bid proposals. ido oerson
shall be excluded on the grounds or race, color, reiialon, sex,
or national origin.
A pre -bid conference for all potential bidders wi,i be need at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99e1L, on
1989, beginning at 9:U0 a.m. The conference wi.l
be conducted by the City of Kenai Airport Manager ana w1i_
include a general information brieling, a question anu answer
session ana an inspection tour of the concession space ,..a ;:nz
Terminal.
The bid documents manifesting the terms and conditions of this
concession offering may be examined and/or obtainea froini the Cit;r
of Kenai Airport Manager, 210 Fidalgo Street, Kenai, :�lasica,
99611 (Telephone: (907)283-7951).
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the City
hereby reserves the right to re -advertise for Bid Proposals or to
reschedule the bid opening, if such action is desired by the
City.
DATE: , 1989
Wm. J. Brighton, City Manager
City of Kenai.
ADVERTISED:
INVITATION FOR BIDS
GIFT SHOP CONCESSION
KENAI MUNICIPAL AIRPORT TERMINAL
Sealed bids for the exclusive right to operate a gift shop
concession:, for the purpose of providing a retail merchandise
sales business for the convenience of the traveling public at the
Kenai Municipal Airport will be received at the City offices, 210
Fidalgo Street, Kenai, Alaska, 99611. All bids must be received
no later than 2:00 p.m., on , 1989, at which time
and place they will be publicly opened and read.
Bids may also be mailed to the City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received in the office of the
City Manager, no later than 2:00 p.m., on 1989, to
be considered.
All interested parties, includinq Disadvantaged Business
Enterprises, are encouraged to submit bid pro?osals. No person
shall be excluded on the grounds of .race, color, religion, sex,
or national origin.
The contract being offered is designated as the Gift Shop
Concession Agreement and is briefly summarized as follows:
I. CONCESSION TERM:
The rights to operate the Gift Shop Concession snail begin
on August 1, 1989 and terminate on July 31, [199711992.
II. PREMISES:
300 sq.ft., as shown on the attached Exhibit "A" and
incorporated by reference herein, Terminal Building, Kenai
Municipal Airport.
III. RIGHTS GRANTED:
The exclusive right to operate a gift shop concession and
sell gift merchandise in the Kenai Municipal Airport
Terminal Building.
B-1
IV. CONCESSION FEES:
The successful bidder will be required to pav a monthly
concession fee of the minimum monthly rent guarantee ot`ered
by the successful bidder.
V. MINIMUM BID:
The mVe.
VA
ble i will e a re uara a of
5500.o each h du g th m f e
agree
VI. BID DEPOSIT:
A bid deposit with the amount of $500.00 must be submitted
with each bid proposal.
(VII. BIDDER QUALIFICATIONS:
IN ORDEq TO P R GTEA
E THIS BID OFFERING, A BIDDER MUST
BE ABLE 0 D MON HE WIL ABLE TO DEMONSTRATE
THAT SI E ANUA 978 HE HAS AD T LEA' rREr.YEARS OF D ECTENCE N T" OPERA ' OF A %X1LMERCHAND E SALENESS W _ GROSS SALES OF AT LAST
$100,000.00 PER LOCATION PER YEAR.)
[VIII]VII. ADVANCE GUARANTEE PAYMENTS:
UponLast
rd o" the coxitract, the successf bidder wii= be
requ to x cute t ontra p he til
minir t u ra a fer ny th s c s b
theont a co. t to ess t e $500. bidepoalready submitted.
A pre -bid conference for all potential bidders will be held at
City Hall, 210 Fidalgo Street, Kenai, Alaska, 99611, on
1989, beginning at 9:00 a.m. The conference will
be conducted by the City of Kenai Airport Manager, and will
include a general information briefing, a question and answer
session and an inspection tour of the concession space in the
Terminal.
B-2
The bid documents manifesting the terms and conditions of this
concession offering may be examined and/or obtained from the City
of Kenai Airport ;tanager, 210 Fidalgo Street, Kenai, Alaska,
99611 (Telephone: (907) 283-7951). The documents include: (_)
the Instructions to Bidders; (2) the Specimen Concession
Agreement; (3) the Bid Proposal Form; (a) the Bidder's Affidavit
For:; (5) Bidder's Questionnaire; and this (6) invitation for
Bids.
ALL BID PROPOSALS MUST BE MADE ON FORMS FURNISHED BY THE CITY.
The right is hereby reserved to reject any and all bid proposals
and to waive any defects when, in the opinion of the Kenai City
Manager, or his official designee, such rejection or waiver will
be in the best interest of the City. In addition, the City
hereby reserves the right to re -advertise for bid oromosais or to
reschedule the bid opening, if such action is desirea ov the
City.
DATE: 1989
Wm. J. Brighton, City manager
City of Kenai
B-3
INSTRUCTIONS TO BIDDERS
GIFT SHOP CONCESSION AGREEMENT
nENAI MUNICIPAL AIRPORT TERMINAL BUILDING
I. BIDDERS:
All bids must be made on the Bid Proposal form furnished by the
City (attached hereto), must be properly executed as provided
thereon, and be addressed and delivered to the office of the City
Manager, City of Kenai, 210 Fidalgo Street, Kenai, Alaska, 99611,
no later than 2:00 p.m., on , 1989. Bids may also
be mailed to the City Manager, City of Kenai, 210 Fidalgo Street,
Kenai, Alaska, 99611, but must be received at the office of the
City Manager no later than 2:00 p.m., on 1989
to be considered.
Each Bid Proposal must be submitted in a sealed envelope which is
clearly marked on the outside with the Bidder's nave ana tale
following label:
"Gift Shop Concession Bid Proposai -
Kenai Municipal Airport."
To be complete, a bid proposal must consist of the following:
A. A completed, signed, and notarized bid proposal (Pages
BP-1- to 3P-4) .
B. A completed, signed, and notarized Affidavit (Pages BA-
1 to BA-2).
C. The required Bid Deposit.
D. A completed and signed Bidder's Questionnaire (Pages
BQ-1 to BQ-6).
No late or telegraphic applications will be accepted. When
received by the City, all bids become the property of the City.
When bids are opened, all bid proposals and supporting documents
and statements become public information.
II. BID REVISION/WITHDRAWAL:
A bidder may withdraw or revise a bid proposal after it has been
deposited in the office of the City Manager, 210 Fidalgo Street,
Kenai, Alaska, 99611, provided:
IB-1
A. The Bidder submits a *written request for return of his
bid proposal. (The re nest must be sianeQ nv the
bidder, or a duly authorized agent or of_`_Cer o= t_he
bidder, and notarized.)
B. The City is able to clearly identify the bidder's
sealed 'aid envelope by reading the bidder's name on the
outsice. No envelope will be ooened for nidder
identification or any other reason prior to the time
set .for the formal bid opening.
C. The withdrawal or revision is completed prior to the
time set for opening of the bids.
No telegraphic bid revisions or withdrawals will be accented.
[III. BIDDER QUALIFICATIONS:
IN OR R TO SU IT A BID BIDDER ST BE ABL TO DEMONSTRATE
THAT H HAS AST T E 3) Y RS F DIRE PERIENTN THE
OPERAT ON A R ERCH E SAL NESS IT ROSE '
OF AT L ST $100,0 0.00 PER LOCATION PER QUALIFYING YEAR..
FURTHER, THE BIDDER MUST BE ABLE TO DEMONSTRATE THAT THE THREE
(3) YEARS OF REQUIRED EXPERIENCE OCCURRED WITHIN THE PERIOD OF
JANUARY 1, 1978 TO JANUARY 1, 1988 AND THAT THE BIDDER WAS THE
PRINCIPAL OPERATOR OF SAID BUSINESS(ES). (PLEASE REFER TO THE
BID QUESTIONNAIRE FOR SPECIFIC REQUIREMENTS.))
[IV.]III. BID FACTOR:
The inimum acre ie bi 1 be a t guaran or $500 00
per on or ch n duri term f con racy e�_g
offe .
IV. REJECTION OF BID PROPOSALS:
Bid proposals may be rejected under any of the following
conditions:
A. If they show any alterations, erasures, irregularities
of any kind or additions not called for; if they are
conditional or incomplete; or if they fail to comply
with any of the requisite conditions.
B. If the Bidder is in i{rrears in any payments owing to
the City or is in default of any obligation to the
City; or is a defaulter as surety or otherwise upon any
obligation to the City; or has failed to perform
faithfully and diligently any previous contract with
the City.
7B-2
[C. IF THE BIDDER FAILS TO DEMONSTRATE, THAT HE HAS THE
EXPERIENCE REQUIRED UNDER ITEM III (BIDDER
QUALIFICATIONS) ABOVE.1
In addition, the City reserves the right to reject any or a17 bid
proposals and waive any defects when in its opinion such
rejection or waiver will be in the best interest of the City.
The right is reserved by the City to reschedule the bid opening
or re -advertise for bid proposals if such action is c!esired by
the City.
V[I]. BID DEPOSIT:
All Bid Proposals must be accompanied by a certified check or
cashier s check on a soly t inancial n titution o'ng business
within he Uni a States of A erica, ayab a to t e C ty o
Kenai, n the amo nt o $500. T e City ese es t e r az to
cash sue c ck an d the D eds thereo nenainq a awa a
of the c n SS
contract.°
VI[I]. CONTRACT AWARD:
A. The contract award, if made, will be made by the City
Manager for the City of Kenai, or his o=ficiai
designee.
B. The bidder must be caoable of performing aii or ;he
terns and conditions of the contract aeing otierea.
The City may request the bidder to furnish aaQ2.tionail
information, including financial infor^.iatio.., I.o
determi.ne if the bidder is qualified.
C. In the case of any discrepancy between the woras and
figures in the Bid Proposal, the words suall yovi"rn.
D. The contract award, if made, will be to the hignest
responsive qualified bidder based upon the following:
1. The total minimum rent guarantee to be paid to the
City during the term of the contract.
2. The conformity of the bidder to all of the terms,
conditions, and prerequisites set forth in the bid
documents.
IB-3
41
VII[I). EXECUTION OF CONTRACT:
A. Execution of Agreement - Within fifteen (15) ca.'_endar
days after receiving the agreement for signati:re from
the City, the bidder must sir_,n and return r.he acr.eement
together with the guarantee advance stipulated under
Item I: below. Upon execution of the agreement by the
City, the successful bidder's bid deposit, to( etner
with the guaranteed advance, shall be creaited against
the minimum rent guarantee payable by tile bidder under
said agreement for the last month of the contract term.
B. Failure to Execute Lease - Failure to execute and 'c
return the agreement together with the guarantee
advance, so that they are received by the City within
fifteen (15) calendar days after the successful bidder
has received the agreement for execution shall be )ust
cause for the annulment of the awara and for for eiture
of the bid deposit to the City. If the successful
bidder refuses or fails to execute ana return the
agreement, together with the requirea guarantee aavance
the City.may award the agreement to the next nicnest
responsive aualified bidder. If any sucn niaaer to
whom the agreement is so awarded refuses or zaiis to
execute and return the same in the time specifiea, such
bidder's bid deposit snail likewise be rorreitea to the
City.
VIII.[IX.] GUARANTEE ADVANCE:
The su cessful bidder must submit an aavance guarantee Pavment to
the Ci when returning the exe ted copies of the cont::acz as
requir under I VII above S id advan uarante payme t
shall a the 1 t m nths' mi 'mum ent g ran ee un- the
contra t ter , minu the b' der's 500. bid deco t Sa--
advance gu ntee mu t b made by c 'Lied c c. or sh'er s
check on solvent fin cial institution doing usines ith 1
the United States of America, payable to the City of Kenai.
IX. RETURN OF BID DOCUMENTS:
Bid deposits submitted by unsuccessful bidders will be returned
to them as soon as possible AFTER the agreement has been signed
by the successful bidder and the City, or if all bids are
rejected, all bid deposits will be returned.
IB-4
[XI_ TIE BIDS:
IN EVENT OF A TIE BID BY QUALIFIED BIDDERS, THE TIE :7-L:L 3E
BROKEN BY AWARDIING THE AGREEMENT TO THE BIDDER WHO HAS
DEMONSTRATED THE MOST EXPERIENCE IN THE OPERATION OF QUALIFYING
RETAIL MERCHANDISE SALES BUSINESS(ES) SINCE DECEMBER 1, 1978, AS
DETERMINED BY A COMPARISON OF THE AGGREGATE YEARS OF VERIFIED
EXPERIENCE LISTED BY THE BIDDERS IN THEIR BID QUESTIONNAIRE IN
RESPONSE TO QUESTION NO. 6 AND NO. 7.)
X[II]. PUBLIC INFORMATION:
All bid proposals, including any and all documents and/or
statements submitted with a bid proposal, become the property of
the City when received by the City. Upon the opening of sealed
bids by the City, all such information submitted with the bid
proposal becomes Dublic information.
XI[II]. PRE -BID CONFERENCE:
A pre -bid conference for all potential bidders wi- l ae melt-, at
City Hall, 210 Fida.igo Street, Kenai, Alasxa, 996on
1989 beginninq at 9:UU a.m. Tire conference will
be conducted by the Airport Manager and wiii induce a general
information briefing, a question and answer session, ana an
inspection tour of the lease space in the Terminal.
XII[V]. OTHER REQUIREMENTS:
Bidders are responsible for carefully examining ai_ uocuraents
relating to this agreement and judge for themselves alp :a
circumstances and conditions affecting tzeir bia proposal.
Failure on the part of any bidder to make suc:Z exama nation and to
investigate thoroughly shall not be grounds for any claim that
the bidder did not understand the conditions of the bid proposal.
All bidders should also thoroughly familiarize themselves with
the concession site conditions.
XIII[VI]. GENERAL CONTRACT INFORMATION:
A. The City of Kenai is offering an opportunity to do
business at the Kenai Municipal Airport and does not in
any way guarantee a profit for the operation of the
Terminal concession.
B. The effective date of the contract shall be August 1,
1989 and shall terminate July 31, 1997.
Iasi-5
C. The City ma require f any B'dders, the t. n so e
prop ietor signe s ety a ante From
grin ipa gen di ec rs, sto ho de
offi r of t succes Kidd g enti Y.
IB-6
KENAI MUNICIPAL AIRPORT TERMINAL
GIFT SHOP CONCESSION AGREEMENT
BID PROPOSAL
PLEASE, PRINT THE FOLLOWING
Business Name of Bidder . . . . .
d/b/a (if applicable) . . . . . .
Submitted by . . . . . . . . . . .
Title . . . . . . . . . . . . . .
Business Mailing Address. . . . .
1
Telephone No . . . . . . . . . . .
BP-1
Timothy J. Rogers
City Attorney
CITY OF KENAI
210 Fiealgo
Kenai. Alaska 99611
28&Saat
FAX 283-3014
Timothy J. Rogers
City Attorney
CITY OF KENAI
210 Fidalgo
Kenai. Alaska 99611
283-31a1
FAX 28330ta
BID PROPOSAL
KENAI MUNICIPAL AIRPORT TERMINAL
GIFT SHOP CONCESSION AGREEMENT
Date:
City of Kenai
210 Fidalgo Street
Kenai, Alaska 99611
Gentlemen:
The undersigned (person, partnership, joint venture,
corporation), hereinafter called the Bidder, hereby offers to
enter into a Gift Shop Concession Agreement covering certain
rights and privileges at the Kenai Municipal Airport and within
the Kenai Municipal Airport Terminal Building. In connection
with this offer the bidder offers to pay the following minimum
rent guarantee:
$ per calendar month for the period of the
lease.
This offer is made subject to the terms and conditions of the
Invitation for Bids dated February 17, 1989, and the Instructions
to Bidders and Specimen Concession Agreement issued by the City
as part of the bid offering for the subject Gift Shop Concession
Agreement.
Attached hereto and made a part of this offer are the following:
1. Affidavit executed by the Bidder.
2. Completed and signed Bid Questionnaire.
3. \ Bid 06pokt i
f X500.1.W i% the_,Svklowing
�-
A certified or cashier's check on a solvent financial
institution doing business within the United States of
America, payable to the City of Kenai. The Bidder hereby
acknowledges the City's right to cash such check immediately
following bid opening and to hold the proceeds thereof until
the award process is completed.
Within fifteen (15) calendar days after receipt of notice and
acceptance of offer by the City of Kenai, the Bidder shall
BP-2
Timothy J. Rogiers
City Attornev
CITY OF KENAI
210 FiAaigo
Kenai. Alalka 99611
283-3/e1
FAX 283-3014
execute and deliver the Agreement, together with the required
Guarantee Advance to: Airport Manager, City of Kenai, 210
Fidalgo Street, Kenai, Alaska, 99611. Said Guarantee Advance
will be the minimum rent guarantee offered in this Bid Proposal
for the last month of the contract term and will be in the form
of a certified or cashier's check on a solvent financial
institution doing business in the United States of America.
It is understood and agreed by the Bidder that failure to execute
and return the Concession Agreement, Guarantee Advance payment in
the time specified, shall constitute a breach of this offer on
the part of the bidder; and that upon such breach, the deposit
hereinabove referred to shall be forfeited to the City of Kenai.
Time is of the essence in the execution and performance of the
obligations under this agreement.
(Sign.and notarize Page BP-4)
This offer may be accepted or rejected by the City of Kenai by
written notice to the Bidder at the address stated on Page BP-1.
Sincerely,
Name of Bidder's Corporation,
Company, or Person
Signature
By
Individual Surety
CORPORATE ACKNOWLEDGMENT:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this
198 , before me, the
Public in and for the State of Alaska,
sworn personall a eared
(CORPORATE SEAL)
day of
undersigned, a Notary
duly commissioned and
r y pp , known
to me and to me know to be the
of the corporation which
BP-3
I . 1
executed the foregoing instrument, and he acknowledged to me that
he executed the same for and on behalf of said corporation, and
that he is fully authorized by said corporation so to do; and
that the corporate seal affixed to said instrument is the
corporate seal of said corporations'
IN WITi:ESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year above written.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of
198 , before me, the undersigned, a Notary
Public in and for the State of Alaska, duly commissioned and
sworn, personally appeared , known
to me and to me know to be the person(s) named 'herein and who
executed the foregoing instrument, and (he, she, they)
acknowledged to me that (he, she, they) signed the same as (his,
her, their) free and voluntary act and deed with full knowledge
of its contents, for the uses and purposes therein mentioned.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
my official seal the day and year above written.
Notary Public in and for Alaska.
My Commission Expires:
BP-4
Timothy J. Rog*n
01y Attorney
CITY OF KENAI
210 FWaigo
Kenai. Alaew 99611
283.3411
FAX 283.3014
9
BIDDER'S AFFIDAVIT
deposes and says:
being first duly sworn
I. The Affiant (as Bidder or as representative or
officer of bidder) has carefully examined all
documents relating to the Gift Shop Concession
Agreement for the Terminal Building located on
Kenai Municipal Airport;
II. The Bidder acknowledges that all the documents and
statements submitted with the Bid Proposal become,
the property of the City when received by the City
and become public information once the bid is
opened;
III. The Bidder filed herewith is not :Wade in the
interest of or on behalf of any undisclosed
person, partnership, company, association,
organization, or corporation;
IV. The bid is genuine and not collusive or sham;
V. The Bidder has not, directly or indirectly,
induced or solicited any other bidder to put in a
false or sham bid and has not directly or
indirectly colluded, conspired, connived, or
agreed with any bidder or anyone else to put in a
sham bid or that anyone shall refrain from
bidding;
VI. The Bidder has not in any manner, directly or
indirectly, sought by agreement, communication, or
conference with anyone to fix any overhead,
profit, or cost element of such bid price or that
of any other bidder, or to secure any advantage
against the City of Kenai or anyone interested in
the proposed Concession Agreement;
VII. All statements contained in the bid and supporting
documents are true;
VIII. The bid er ha ot, d' ctly o
su mit a h' bi price or y
or co en
ts reof, di
BA-1
Timothy J. Rogers
City Attorney
CITY OF KENAI
210 FIdalgo
Kenai, Alaska 9N11
2e9-3441
FAX 292-3t)ta
indirectly,
rea o n t 1of
10 i a on
Timothy J. Rogers
Gly All Wney
CITY OF KENAI
210 Fklalgo
Kenai, Alaska 99611
FAX 283 3014
or ates relative thereto, or paid or agreed to
pay directly or indir tly, a y mone or of er
val able onsi ratio for a istan or a
ren ere r to a re Bred proc ng o
att mpt n to ocur the n ess' Agr en
abo e f rre o, o any or ora i ,
par ne sh P. co pa y, ss cia io o ni
or o any o er tuber age thereof, or to ny
oth indf dual;
VIII. The Bidder will not pay or agree to pay, directly
or indirectly, any money or other valuable
consideration to any corporation, partnership,
company, association, organization, or to any
member or agent thereof, or to any other
individuals for aid or assistance in securing the
agreement above referred to in the event the same
is awarded to the Bidder;
IY. The Bidder is not in arrears in any payments owing
to the City nor is he in default of any obligation
to the City; nor is he a defaulter as
surety or otherwise upon any obligation to the
City; nor has he failed to perform faithfully and
diligently any previous contract with the City.
Signed at on this
day of , 198
Signature
Title
Individual Surety
SUBSCRIBED and SWORN to before me a
Notary Public in and for the State of on
this day of , 198
Notary Public in and for the State
of
My Commission Expires:
BA-2
RENAI MUNICIPAL AIRPORT TERMINAL
GIFT SHOP CONCESSION
BID QUESTIONNAIRE
All information requested in this Questionnaire must be furnished
by the Bidder, and must be submitted with the bid proposal.
Statements must be complete and accurate and be presented in the
form reauested. Omissions, inaccuracies, or misstatements in an
Bidder's Questionnaire may, at the discretion of the City, be
grounds for rejection of an application.
1. Name of the Bidder exactly as it is to appear on the
Concession Agreement:
2. Mailing address of the Bidder for contract
administration purposes:
3. The Bidder, if selected, intends to operate the
Concession as (check one):
( ) Individual { ) Joint Venture
( ) General Partnership ( ) Cornoration
{ ) Limited Partnership
4. If the Bidder will operate the concession ds a
partnership or joint venture, attach a copy oit the
partnership or joint venture agreement and answer the
following questions:
a. Name, mailing address, and share of each partner
or joint venturer:
Name
Share
BQ-1
Address
. , 1
b. Date of Organization:
C. Agreement recorded at:
Borough/County/Juaicial District
State
Date
d. If partnership, or joint venture is registered
with the State of Alaska, Department of Commerce,
state date of registration:
5. If the Bidder will operate the Bar and Restaurant
Concession as a corporation, answer the following:
a. Date incorporated:
In what state?
b. It corporation is registered with the State of
Alaska, Department of Commerce to do business in
the State of Alaska, state the date of
registration:
C. Name, mailing address, amount of stocx heici
(number and type), and experience in the retail
sa-es business of the following corporate officers
and Board of Directors members:
CORPORATE OFFICERS
President• Name
Address:
Stock:
Experience:
BQ-2
Vice President: Name
:address:
S tock :
Experience:
Secretary: Name
Address:
Stock:
Experience:
Treasurer: Name
Address:
Stock:
Experience:
BQ-3
BOARD OF DIRECTORS
Chairman: Name:
Address:
Stock:
Experience:
Member•
Address:
Stock:
Name:
Experience:
Member• Name:
Address:
Stock:
Experience:
BQ-4
Member: Name:
Address:
Stock:
Experience:
Member• Name:
Address:
Stock:
Experience:
d. List the five (5) stockhoiders owning the largest
amount o= stock the c porat (ex uain
tor, ora offic rs anti a bers t::etara
t
Dir to s alre dy ist nder Q est oioabo ) d' ate am m 1 g dd esn
number and ype of s ares h d.
Name:
Address:
Stock:
Name: _
Address:
Stock:
BQ-5
Name:
Address:
Stoci..
Name:
Address
Stock:
Name:
Address:
Stock:
[6. ATTACH A DESC TION OF THE RETAIL MERCHANDIW SALES
BUSIN-SSES W C THE BID HAS OPE TED SI
JANUA 11 78. LIST LY THOSE IL S E
BUSINE SES ICH GENElt ED OSS LE' IN XC SS OF
$10010 0.0 * PER AL DAR YE THE IPTI T
INCLUDE FOLLO INFORMA N FOR.EACH LISTED:
A. BUSINESS NAME.
B. THE CALENDAR YEARS DURING WHICH THE BUSINESS
GENERATED ANNUAL GROSS SALES EXCEEDIiuG
$1001000.00*.
C. THE ACTUAL GROSS SALES* GENERATED BY THE BUSINESS
FOR THE CALENDAR YEARS LISTED IN ACCORDANCE WITH
PARAGRAPH (B) ABOVE.
D. THE MAILING ADDRESS AND TELEPHONE NUMBER OF THE
AGENCY RESPONSIBLE FOR THE OPERATION OF THE
BUSINESS, TOGETHER WITH THE NAME OF THE MANAGER OR
OTHER CONTACT WHO WILL BE ABLE TO CONFIRM THE
ACCURACY OF THE DATA FURNISHED BY THE BIDDER IN
RESPONSE TO THIS QUESTION NO. 6.
BQ-6
H
* NOTE: ALL FIGURES MUST BE IN U.S. DOLLARS AS
VALUED :DURING THE CALENDAR YEAR TO WHICH REFERENCE
IS MADE. NO INFLATION ADJUSTMENT FOR INTERVENING
YEARS IS TO BE INCLUDED.]
[7. ATTACH A DESCRIPTION OF OTHER RETAIL SALES BUSINESS(ES)
WHICH THE BIDDER HAS O RATED SIN JANUARY 1978.
LIST NLY TH BUSI1` SS ES) WH H NERAT ROSS
SALES IN EX ES OF .00, 0.0 PER AL AR AV
PER
SINGL LOC TIO . HE DE5 TION MU5 NCLUDE HE
FOLLO NG INFOR ION FOR EACH SUCH BUSINESS:
A. LOCATION - STREET ADDRESS, CITY AND STATE
(COUNTRY, IF NOT LOCATED IN THE USA).
B. CALENDAR YEARS DURING WHICH THE BUSINESS GENERATED
ANNTUAL GROSS SALES EXCEEDING $100,000.00*.
C. THrz AC GROSS SALES* GENERATED BY THE BUSINESS
r 'E CALENDAR YEARS LISTED IN ACCORDANCE WITH
P GRAPH (B) ABOVE.
D. THE MAILDDRESS, TELEPHONE NUMBER, AND CONTACT
NAME FOR UNICIP L GOVERNMENT AGENCY, CPA FIRM,
OR OTHER I EPEN T SOURCE(S) THAT CAN CONFIRM
THE ACriJR C DATA FURNISHED BY THE BIDDER
IN RESPON T IS QUESTION NO. 7.
* NOTE: A L FIG ES MUST BE IN U.S. DOLLARS AS
VALUED DUR 1G THE CALENDAR YEAR TO WHICH REFERENCE
IS MADE. INFLATION ADJUSTMENT FOR INTERVENING
YEARS IS TO BE INCLUDED.)
[816. Financial References: Attach a list of at least two
(2) banks or other financial institutions with which
the Bidder regularly does business. Include name and
address of the banks or institutions as well as the
name and telephone number of an officer of each who can
verify the Bidder's financial standing.
[9]7. AttacLnc*2�1
nan aVsants (bal a sheets andoperatita emeflab , o annu epor
if bidda co) or 985, 98 an 1 7
The fin star 1 7 must subsc ed b
the Bids chief financial officer and be accompanie
BQ-7
by a Certified Public Accountant's report for that
year. If the Bidder's 1987 .financial statement was not
audited by a CPA firm, a copy of the Bidder's 1_987
federal tax .return *rust be submitted.
If the Bidder is a new partnership or joint venture,
submit only the financial statements of the business
entity which meets the experience and financial
requirements of this bid offering.
The undersigned hereby vouch for the truth and accuracy of all of
the statements, answers, and representations made in this
questionnaire, including all supplementary statements attached
hereto.
DATE:
(If Bidder is a partnership or joint venture, all partners
or members of the joint venture must sign; it Bidder is a
corporation, the signature of one duly authorizea
representative is sutticient.)
BQ-8
Tit-1e
Title
Title
Title
-^ } 1
i i t1�
210 LIDALGO STREET
KENAI, ALASKA 99611
GIFT SHOP CONCESSION AGREEMENT
KENAI MUNICIPAL AIRPORT TERMINAL BUILDING
THIS AGREEMENT, made this day of , 1989, by
and between the City of Kenai, hereinafter referred to as the
"CITY", whose address is 210 Fidalgo Street, Kenai, Alaska, 99611,
and whose acaress is
hereinafter referred to as the
"CONCESSIONAIRE."
W I T N E S S E T H
WHEREAS, the CITY owns and operates the Kenai Municipal
Airport, located in Kenai, Alaska, hereinafter referred to as the
"AIRPORT"; and,
WHEREAS, in connection with the AIRPORT, the CITY owns the
Terminal Building, hereinafter reterrea to as the "TERMI?SAL"; and,
WHEREAS, the CONCESSIONAIRE desires to operate a gift shop
concession business; and,
WHEREAS, the CONCESSIONAIRE was the successiui bidaer --or the
exclusive right to operate said gift snop concession busl:!_ss;
NOW, THEREFORE, in consideration o--,' the premises ana of the
charges, fees, covenants, and agreements containea herein, the
parties hereby agree to all conditions as follows:
ARTICLE I
DEFINITIONS
For the purposes of this agreement, the terms listed below
will mean:
A. "Agreement": This Concession Agreement together with
all future amendments or supplements which may be
executed by the parties to this Agreement.
B. "Airport": The Kenai Municipal Airport, Kenai, Alaska
as it presently exists as of the date of the execution
of this Agreement.
C. "Airport Manager": The CITY's designated Manager at
Kenai Municipal Airport.
1 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
D. "In -Bond Merchandise": Merchandise which United States
Customs Service regulations (Title 19, Code of ^ederal
Regulations) permit to be sold under duty or tax free
conditions.
E. "Terminal": The CITY's airline passenger terminal
building at the Airport, as it presently exists as of
the date of the execution of this Agreement.
F. "Food and Beverage for 'Off Premises Consumption'": Food
and beverage items which are packaged and sold for later
consumption by the customer outside the Terminal.
G. "Premises": The TERMINAL floor space leased under this
Agreement by the CITY to the CONCESSIONAIRE for the uses
authorized in this Agreement, specifically to operate a
gift shop concession business in a concession retail
space; all as shown on Exhibit "A", attacned hereto and
made a part hereof.
H. "Specialty Food Merchandise": Food items which have been
prepared, packaged, and sold for Off -Premises consumption
only, specifically: jams and jellies; boxed candies,
nuts and fruits; fresh, frozen, canned, dried or
preserved meat anti seafood proaucts.
ARTICLE II
RIGHTS GRANTED
Insofar as the CITY is legally able to bins itseit, the CITY
hereby grants to the CONCESSIONAIRE, subject to the terms,
conditions, and covenants contained 'herein, full authority to have
and to exercise the following rights:
A. EXCLUSIVE RIGHTS: The CITY hereby agrees not to permit,
nor confer any right upon, any person or company other
than the CONCESSIONAIRE to exercise the following
"exclusive rights":
1. The exclusive ric;ht to use and occupy the Premises
for the purposes authorized herein.
2. The exclusive right to operate a gift shop
concession business in the TERMINAL for the sale of
gift merchandise including candy; maps; newspapers;
watches; film; photographic accessories; beauty
aids; toiletries; sunglasses; curios; jewelry;
ivory; toys; sporting goods; hand crafts; art work;
candy bars; clothing; sundries; traveler's aids;
postcards; Alaska souvenirs; specialty rood
2 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
merchandise; cigarettes and other tobacco products;
Pipes; lighters; leather goods; games; and
stationery.
J. The foregoing exclusive rights specifically do not
include the following rights and privileges:
[A. THE SALE OF FOOD AND BEVERAGE ITEMS PREPARED
AND SOLD FOR ON -PREMISES CONSUMPTION.)
[b] a. The sale of in -bond merchandise as defined
in Article I herein.
[C. ANY AND ALL SALES OF MERCHANDISE FROM VENDING
MACHINES OR OTHER MECHANICAL DEVICES,
INCLUDING, BUT NOT LIMITED TO, SUCH ITEMS AS:
COFFEE AND SOFT DRINKS, INSURANCE POLICIES,
THE DISPENSATION OF CASH, MONEY ORDERS AND
CHECKS, AND THE LIKE.
D. THE SALE OF ICE CREAM AND OTHER FROZEN
CONFECTIONS OF ANY KIND.
E. THE SAL , OF U POST STAMP TELEX OR
TEL YP ERV CES , C S VI 5 , ND O�'G
DIST E T PHONE S RVICES.
F. THE SALE OF ANY ITEM OR SERVICE FOR WHICH THE
CITY HAS GRANTED EXCLUSIVE CONCESSION RIGHTS
TO OTHERS AS OF MARCH 1, 1989.
G. T E LE F F "' OWER P �TEDP . S,
O . ER F LO ITEMS
.
H. THE OPERATION OF ANY AND ALL MECHANICAL OR
ELECTRONIC GAME DEVICES, ELECTRONIC VIDEO GAME
DEVICES, AND ANY LIKE ENTERTAINMENT DEVICES.
I. USEVEON�A
REMI5 OR AN RPO5 WHIC HE
CITOT SPE FI LY A O Z H
CON TO ERFOR UND THIS
AGR]
[J]b. The sale of any item or service which is
included in the exclusive bar or restaurant
concessions the City is currently offering for
lease. It is the sole responsibility of the
bidder to inquire of the City which items and
services are included in the exclusive
restaurant and bar concessions now offered by
the City.
3 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
B. GENERAL RIGHTS:
1. The right to ingress and egress and occupancy of
tide premises by the CONCESSIONAIRE, its officers,
contractors, suppliers, service personnel, guest,
patrons and invitees, subject to the security rules
of the Airport.
2. The right to construct and install all fixtures,
equipment and other improvements necessary to
operate said concession, subject to the orior
written approval of the CITY as provided herein.
C. RESERVATIONS:
[1. OTHER THAN THE MERCHANDISE DESCRIBED IN SUBSECTION
A (2 ) OF THIS ARTICLE, NO OTHER PRODUCT, MERCHANDISE,
OR SERVICE SHALL BE SOLD BY CONCESS20:7AIRE WIT::OUT
THE PRIOR WRITTEN CONSENT OF THE CITY. I:7 THE EVENT
ANY QUESTION OR DISPUTE ARISES AS TO THE SALE OF ANY
SPECIFIC ITEM OR CATEGORY OF ITEMS ON THE PREMISES,
THE CITY SHALL BE CONSIDERED THE FINAL AUTHORITY IN
RESOLVING ANY SAID QUESTION OR DISPUTE. DECISIONS
RENDERED BY THE CITY IN SUCH QUESTIONS OR DISPUTES
SHALL BE DELIVERED IN WRITING TO THE CONCESSIONAIRE.
THE CONCESSIONAIRE SHALL HAVE. THE RIGHT TO REQUEST
A CITY REVIEW OF ANY SUCH QUESTIONS OR DISPUTES,
PROVIDED THE REQUEST IS MADE IN WRITING.1
[211. The CITY specifically reserves the right to grant
to others the rights and privileges not speci: icaily
and exclusively granted to the CONCESSIONAIRE. The
rights and privileges granted to the CONCESSIONAIRE
in this Agreement are the only rights and privileges
granted to the CONCESSIONAIRE by this Agreement.
The CONCESSIONAIRE has no easements, rights, or
privileges, express or implied, other than those
speciffically granted by this Agreement.
ARTICLE III
TERM
This Agreement shall be effective beginning
However, the concession term during which the CONCESSIONAIRE is
granted the exclusive rights specified under Article II herein and
is authorized to operate the concession business hereunder shall
begin on August 1, 1989, and shall terminate on July 31, (199711992
-- option to renew at CITY's pleasure.
4 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
ARTICLE IV
RENTS AND FEES
A. For use of the premises, facilities, services, rights
and privileges granted by the Agreement, the
CO�JCESSIO:yAIRE hereby agrees to pay to the CIa monthly
CONCESSIONAIRE'S fee of:
B. Payments made under this Aqreement *rust be free from all
clai emands, set -offs, or counterclaims of any kind
the CITY, and must be made in cash or by check,
draft, or money order made payable to the City of
NfKai and delivered or mailed to: Finance Director, City
enai, 210 Fidalgo Street, Kenai, Alaska, 99b11, and
hall be in United.States of America currencv.
C. Any ll rents, charges, fees, or other considerations
whzc, re due unpaid at the expiration, or voluntary
or involunta termination or cancellation of this
Agreem t w a charge against the CONCESSIONAIRE and
his op r eal or personal, and the CITY will have
such 1je ig, s as are generally allowed by law, and
enforc ent ma be made by the CITY or its authorized
agent.
D. Interest nd penalties will accrue and be payable on all
rents and fees due and unpaid pursuant to Kenai Municipal
Code 1.75.010, a copy of which is attacned hereto and
incorporated herein as Exhibit "B".
[ARTICLE VI
PERFORMANCE BOND
THE CONCESSION IRE HEREBY EES TO POST A PERFOR BOND
IN THE AMOUNT OF 0 000.00 T A URE PAYM F THE F S URING
THE ENTI TERM S IS AG EMEN AS S ULA D H IN TO
ASSURE CO LI WIT AL COVENAN ITIO R PROVI
CONTAINED RE SAID D MUST BE P IDED BY THE CONCESSIONAIRE
IN ONE OF FOLLOWING FORMS:
A. A PERFORMANCE BOND IN THE AMOUNT OF $100,000.00. SAID
BOND MUST BE IN A FORM ACCEPTABLE TO THE CITY. THE BOND
MUST BE MAINTAINED AND RENEWED BY THE CONCESSIONAIRE AS
NECESSARY TO REMAIN IN FORCE THROUGHOUT THE TERM OF THIS
AGREEMENT. THE BOND SHALL BE SUBJECT TO ATTACHMENT BY
THE CITY UPON THE CONCESSIONAIRE' S FAILURE TO PAY ANY FEE
REQUIRED BY THIS AGREEMENT WITHIN THIRTY (30) DAYS
FOLLOWING THE DATE ON WHICH SAID FEE BECOMES DUE AND
5 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
PAYABLE. FURTHER, THE BOND SHALL BE SUBJECT TO
ATTACIETMENT BY THE CITY UPON THE FAILURE BY THE
CONCESSIONAIRE TO CURE A BREACH Or ANY OF THE CONDITIONS,
COVENANTS, OR PROVISIONS OF THIS AGREEMENT WITHIN THIRTY
( 30 ) DAYS FOLLOWING THE DATE ON WHICH THE CITY SERVES THE
CONCESSIONAIRE WITH WRITTEN NOTICE OF SAID BREACH.
B. A CASH DEPOSIT IN THE AMOUNT OF $100,000.00 TO BE HELD
BY THE CITY THROUGHOUT THE TERM OF THIS AGREEMENT WITHOUT
BEARING INTEREST. THE CASH DEPOSIT SHALL BE SUBJECT TO
RETENTION BY THE CITY UPON THE CONCESSIONAIRE'S FAILURE
TO PAY ANY FEE REQUIRED BY THIS AGREEMENT WITHIN THIRTY
(30) DAYS FOLLOWING THE DATE ON WHICH SAID FEE BECOMES
DUE AND PAYABLE OR UPON THE CONCESSIONAIRE' FAILURE TO
CURE A BREACH OF THE CONDITIONS, COVENANTS, OR PROVISIONS
OF THIS AGREEMENT WITHIN THIRTY (30) DAYS FOLLOWING THE
DATE ON WHICH THE CITY SERVES THE CONCESSIONAIRE WITH
WRITTE11 NOTICE OF SAID BREACH. UPON THE EXPIRATION OR
TERMI ;ATION OF THIS AGREEMENT AND PERFORMANCE OF ALL THE
TERMS HEREIN, SAID DEPOSIT WILL BE REFUNDED TO
CONCESSIONAIRE, LESS ANY OUTSTANDING, UNPAID FEES DUE
UNDER ARTICLE IV OF THIS AGREEMENT.
C. A TINE CERTIFICATE OF DEPOSIT (TCD) IN THE AMOUNT OF
$100,000.00 NAMING THE CITY AS THE SOLE PAYEE FOR THE
PRINCIPAL AMOUNT SHOWN ON THE CERTIFICATE. THE TCD MUST
BE HELD BY THE CITY WHERE IT WILL REMAIN UNTIL MATURITY.
AT THE TIME OF MATURITY, THE TCD MUST BE RENEWED BY THE
CONCESSIONAIRE CONTINUING TO NAME THE CITY AS THE SOLE
PAYEE UNTIL THIS AGREEMENT EXPIRES OR IS TERMINATED AND
THE CITY HAS DETERMINED THAT ALL FEES HAVE BEEN PAID AND
ALL COVENANTS, CONDITIONS, AND PROVISIONS HAVE BEEN MET.
CONCESSIONAIRE SHALL BE SHOWN AS THE SOLE PAYEE FOR ALL
INTEREST ACCRUED DURING EACH PERIOD OF TIME THE TCD IS
ISSUED. AT THE TIME OF THE EXPIRATION OR TERMINATION OF
THIS AGREEMENT, PROVIDED ALL FEES HAVE BEEN PAID AND THE
CONCESSIONAIRE HAS COMPLIED WITH ALL COVENANTS,
CONDITIONS, AND PROVISIONS CONTAINED HEREIN, THE CITY
SHALL RELEASE THE PRINCIPAL AMOUNT OF THE TCD TO THE
CONCESSIONAIRES, LESS ANY OUTSTANDING,, UNPAID FEES DUE
UNDER THIS AGREEMENT.
THE CONCESSIONAIRE MUST FURNISH THE CITY WITH A COPY OF THE •
BOND, A CASH DEPOSIT, OR A TCD BY NO LATER THAN ,
1989.1
ARTICLE V[II)
PREMISES
The CITY hereby agrees to deliver the Premises to the
CONCESSIONAIRE as of August 1, 1989, following the execution of
6 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
this Agreement by the CITY. CONCESSIONAIRE hereby agrees to accept
the Premises demised under this Agreement in their then -present
condition and "as is." It is hereby understood and agreed by
CONNCESSIONAIRE that the CITY's obligation hereunder is limited to
making available to CONCESSIONAIRE, for its use, the Premises.
However, in the event that construction delays in the current
remodeling project delay the ability of the CITY to deliver the
premises, this Agreement shall remain in force and effect. Said
delay shall cause the CITY to pro -rate the amount of monthly rent
due only.
[CONCESSIONAIRE ACKNOWLEDGES AND HEREBY AGREES THAT THE CITY :MAY
REQUIRE, AT CONCESSIONAIRE'S EXPENSE, EXPANSION OF ANY CONCESSION
ARE AND/OR REQUIRE THE RELOCATION, IN WHOLE OR IN PART, OR THE
ADDITION OF ANY SUCH AREA DURING THE TERM OF THIS AGREEMENT UPON
A FINDING THAT SUCH ENLARGEMENT, RELOCATION, AND/OR ADDITION IS
NECESSARY TO PROVIDE, FOR A GIFT SHOP FACILITY !N ANY AREA IN THE
TERMINAL OR TO OTHERWISE MEET THE DEMAINDS OF THE AIR -TRAVELING
PUBLIC AT SAID AIRPORT.]
ARTICLE VI[II]
CONSTRUCTION AND REMODELING
A. Initial Construction/Remodeling
1. In an effort to better serve the needs of the
travelers using the Terminal, the -T_TY has initiated
an expansion and remodeling project or the
Terminal.
2. The CONCESSIONAIRE hereby ac-nowiedges the
importance of said project and hereby agrees to
cooperate with the CITY and the CITY's contractors)
throughout the project, including those segments of
the project which relate to the constriction or
remodeling of retail space. The CITY hereby agrees
to minimize the adverse impact of the construction
on the CONCESSIONAIRE's business to the extent
possible. However, the CITY may not be held
responsible by the CONCESSIONAIRE for
inconveniences, business interruption, or sales
losses resulting from said construction unless said
inconveniences, interruptions, or losses result from
proven negligence by the CITY.
B. General Construction Requirements:
1. Any alterations, construction, or improvements
desired by the CONCESSIONAIRE of the Premises must
be neat, presentable, and compatible with the
7 - GIFT SHOP CONCESSION AGREEMENT
LESSOR:
LESSEE:
C.
i�c
wi
fu
op
by
in
architecture of the building, as determined by the
CITY, and must be performed at no cost to the CITY.
2. Before beginning construction of any improvements
on the Premises, the CONCESSIONAIRE must first
submit detailed drawings of the proposed
construction and obtain the written approval of the
CITY. If requested by the CITY, the CONCESSIONAIRE
shall also submit architectural renderings of the
proposed improvements as well as samples of
materials and colors.
3. CITY shall review and approve or disapprove the
proposed construction and transmit said approval or
disapproval in writing to the CONCESSIONAIRE.
4. Within thirty (30) days after completion of any
constructions of placement of improvements upon the
Premises, the CONC 'SSIONAIRE shall deliver to
the CITY detailed copies of as -built drawings
showing the location and dimensions or improvements
placed or constructea on the Premises by the
CON'CES S IONAIRE .
Ownership-
Dn the installation of any
provements, 'nclud' but
ill s, ca p ting, d Aerie
in ai c dit on' g du
Va
h n/erior
of uc' nat re
n bremo d with u1
l decoratioi
CONCESSIONAIRE upon the
the CITY.
structural
not limited
finished
�t and
� ca ot, i t
-truc ura daj
and fi i,
Premises,
or other concession
to, interior walls,
oori n , elec _ cai.
pment con s ion
e air o f Ma a i s
ge t ti e P emi es,
ping e e ed nsta le
title hereto shall vest
ARTICLE VII[X]
CONCESSION MERCHANDISE/OPERATION OF CONCESSION SERVICES
CONCESSIONAIRE understands and agrees that its operation under
this Agreement is a service to airline passengers and the users of
the Airport. CONCESSIONAIRE also understands and agrees that the
ability of the CITY to effectively operate the Airport, and to
promote tourism to the CITY, depends in part upon the quality of
CONCESSIONAIRE's services and the attractiveness of its prices.
Accordingly, CONCESSIONAIRE shall conduct its operation in a first-
class, businesslike, efficient, courteous, and accommodating
manner. Therefore, at all times during the term of this Agreement,
the CONCESSIONAIRE will strictly comply with the following
conditions and requirements.
8 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
4
A. Business Development: CONCESSIONAIRE covenants to take
all reasonable rieasures in every proper Tanner to
maintain and develop the business conducted by it and
that CONCESSIONAIRE will not divert or cause or allow by
its own actions any business to be diverted from the
Terminal.
B. Orderly Operation: The CONCESSIONAIRE must conduct all
operations and business on the Airport in an orderly and
peaceful manner and will not interfere with other
tenants, users, or occupants of the Airport.
C. Merchandise: CONCESSIONAIRE shall at all times offer
the widest possible selection of gift merchandise and
maintain sufficient inventories to accommodate customer
demand. The CITY agrees that the selection of
merchandise items within the concession rights granted
by this Agreement shall be within the CONCESSIONAIRE's
discretion; subject, however, to disapproval by the CITY
if, in its sole determination, the selection of items
offered is inadequate or items being o--rered are not
within the concession rights granted by this Agreement
or items being carried are not in good taste considering
the public nature or the Terminai. The CITY agrees to
meet and confer with the CONCESSIONAIRE in such cases of
disapproval by the CITY, but the CONCESSIONAIRE hereby
acknowledges that the decision or the CITY in such cases
shall be conclusive.
[D. MANDATORY MERCHANDISE.: AS A ?ART OF THE CONSID?TRATION
OF THIS AGREEMENT, AND IN ADDITION TO OTHER MERCHANDISE,
THE CONCESSIONAIRE OFFERS FOR SALE ON THE PREMISES, THE
CONCESSIONAIRE MUST DISPLAY AND OFFER FOR SALE THE
FOLLOWING y
1? BT*L 7 J2Ge iTf 8184 flit IM n A WX T S E R :
1. A GOOD SELECTION OF GIFT AND SOUVENIR ITEMS WHICH
HAVE BEEN MADE IN THE STATE OF ALASKA, INCLUDING BUT
NOT LIMITED TO GOLD NUGGET JEWELRY; SOAPSTONE; IVORY
AND JADE CARVINGS; SPECIALTY FOOD MERCHANDISE; AND
ALASKA NATIVE CURIOS, ARTIFACTS, AND HANDCRAFTS.
2. A GOOD SELECTION OF SUNDRY ITEMS AND TRAVELER
CONVENIENCE ITEMS INCLUDING, BUT NOT LIMITED TO
COSMETICS; HEALTH AND BEAUTY AIDS; TOILETRIES;
FACIAL TISSUES; PATENT MEDICINES; AND FILM.
E. PRODUCT OUALITY: THE CITY, IN ENTERING INTO THIS
AGREEMENT, HAS FOREMOST IN MIND TO PROVIDE THE AIR
TRAVELER WITH FACILITIES, SERVICE, AND PRODUCTS OF THE
9 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
HIGHEST QUALITY. THE CONCESSIONAIRE WILL '_'EER=FORE
HANDLE ONLY MERCHANDISE AND PRODUCTS WHIC_4 ARE OF HIG._SST
QUALITY, SUBJECT TO THE CONTINUING REVIEW AND APPROVAL
OF TE AIRPORT MANAGER.
F. REASONABLE PRICING: THE CONCESSIONAIRE WILL ALSO FURNISH
ALL PRODUCTS AND S RVICES AUTHORIZED HEREUNDER TO TTS
CUSTOMERS AND PATRONS UPON A FAIR, EQUAL, AND ?:ON -
DISCRIMINATORY BASIS AND CHARGE FAIR, REASONABLE, AND
NON-DISCRIMINATORY PRICES FOR EACH UNIT OF PRODUCT OR
SERVICE. ALL PRICES SHALL BE SUBJECT TO THE CONTI.�UING
REVIEW AND APPROVAL OF THE AIRPORT MANAGER. THE AIRPORT
MANAGER'S PRICING REVIEW SHALL BE BASED ON COMPARISONS
OF PRICES CHARGED FOR SIMILAR ITEMS IN SIMILAR
ESTABLISHMENTS LOCATED WITHIN THE CITY LIMITS OF KENAI,
ALASKA.]
[G?D. Hours of Oneration: For the purposes or this Articie,
the term seneculea passenger flighhts will incluce:
A egula the led ` i
Al her
s�enge flit�!�
Ie
CO_dC: SS/OAI h be nn at a e ( r
days ne . rto l
1. The CONCESSIONAIRE will actively operate concessions
aut.torized by this Agreement so as to nest serve the
needs of airline passengers. The CONCESSIONAIRE
shall prepare a written schedule of toe operating
hours and submit the schedule to t;Ze Airport .Tanager
for approval. The scneduie „,ust provide for
operation to serve all scheduled passengers' flights
operating to or from the Terminal.
2. If the CONCESSIONAIRE is able to aemonstrate with
supporting data that operating the concession to
meet all scheduled passenger flights, is not
profitable or economically feasible and is not in
the best interest of the CITY, the CONCESSIONAIRE
may request a waiver of the requirement to meet all
scheduled flights. The Airport Manager's
approval/disapproval shall be based on serving the
needs of the public. The CONCESSIONAIRE hereby
agrees to adhere to the schedule of operating hours
approved by the Airport Manager.
3. Except in cases of emergencies, the CONCESSIONAIRE
must obtain the approval of the Airport Manager
10 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
prior to any special periods of retail concession
space closure for repairs, maintenance,
construction, or other reasons.
[H]E. Continuous Operation: Subject to Subsection (^) of
this Article, the CONCESSIONAIRE herebv agrees to ooerate
throughout the term of this Agreement on a continuous
basis, uninterrupted by any period of closure to
passengers on scheduled passenger flights using the
Terminal. Provided that the provisions of this
subsection will not apply to any period during which the
CONCESSIONAIRE is unable to operate his business on the
Premises as a result of an act or directive of the CITY
or other higher authority or as a direct result of a
natural disaster which effects the tenability of the
Terminal.
[I. SALES RECEIPTS: SALES RECEIPTS FOR EACH AND EVERY SALES
TRANSACTION MUST BE GIVEN TO THE CUSTOMER. SALES
RECEIPTS MUST CLEARLY IDENTIFY CONCESSIONAIRE BY NAME,
ADDRESS, AND TELEPHONE NUMBER.
J. AUTOMATED ACCOUNTING EOUIPME'NT: THE CONCESSIONAIRE SHALL
I:dSTALL AND USE AUTOMATED ACCOUNTING EQUIPMENT WHICH IS
ACCEPTABLE TO THE CITY TO ACCURATELY AND COMPLETELY
RECORD ALL CASH AND CREDIT TRANSACTIONS.;
[k]F. Premises Maintenance: The CONCESSIONAIRE snail be
responsible for the day-to-day maintenance o-f the
Premises, including janitorial services and trash
collection.
The CONCESSIONAIRE. shall maintain the Premises in good
repair and appearance and in a safe condition at all
times. The CONCESSIONAIRE shall do or cause to be done
without delayall those things which, in the opinion of
the Airport Manager, are necessary or desirable in the
interest of safety or to maintain the Premises in good
repair and appearance.
[X] VII,
PERSONNEL
CONCESSIONAIRE shall maintain an adequate sales force on the
Premises and use the utmost skill and diligence in the conduct of
CONCESSIONAIRE's business in the Premises.
The CONCESSIONAIRE shall, in the operation of the concession
authorized under this Agreement, only employ or permit the
employment of personnel that will assure a high standard of service
to the public. All of the CONCESSIONAIRE's personnel, while on
11 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
duty in the Terminal shall be neat in appearance and courteous at
all times and shall be appropriately attired with badges or other
suitable identification. No personnel employed by the
CONCESSIONAIRE while on or about the Premises will be permitted to
use improper language, act in a loud, boisterous, or otherwise
improper way or to be permitted to solicit business in an
inappropriate manner as determined by the Airport Manager.
THE CONCESSIONAIRE SHALL SELECT, APPOINT, AND PROPERLY TRAIN
A MANAGER WHO WILL BE RESPONSIBLE FOR THE GENERAL DAY-TO-DAY
OPERATIONS UNDER THIS AGREEMENT. SUCH PERSON MUST BE AN
OUTSTANDING, HIGH QUALIFIED AND EXPERIEN MANAGER OR SUPERVISOR
OF GIFT S P OPE IONS, VE D WITH FU OWER AND THORITY TO
ACCEPT SE ICE LL NOT E' PROVIDE FO HEREIN REGARDING
OPERATION F T C CESSI. 8 INESS REIN AUTHOR ED INCLUDITG
THE QUALIT AN PRI ES OF MERC NDIS AND T APPE ANC ON
IT
DEMEAN F CON 'ES ONAIRE' NTS , SE VALT AND v EES .
SAID MANAGE. SHALL B SSIGNED TO A DUTY STA N OR OFFICE AT T.
AIRPORT WHERE HE SHALL ORDINARILY BE AVAILABLE DURING REGULA
BUSINESS HOURS AND WHERE, AT ALL TIMES DURING HIS ABSENCE, A
RESPONSIBLE SUBORDINATE SHALL BE IN CHARGE AND AVAILABLE.;
ARTICLE [XI] VIII
CITY'S RIGHTS OF ACCESS AND INSPECTION
CITY, by its officers, employees, agents, representatives,
and contractors, shall have the right at all reasonable times to
enter upon the Premises for the purpose of inspecting the same,
for observing the performance by CONCESSIONAIRE of its obligations
under this Agreement or for doing any act or thing which the CITY
may be obligated to do or have the right to do under this
Agreement, or otherwise, and no abatement of fees and charges shall
be claimed by or allowed to CONCESSIONAIRE by reason of the
exercise of such right.
Except in the case of an emergency, all inspections will be
coordinated with the CONCESSIONAIRE in order to minimize
interference with the CONCESSIONAIRE's activities on the Premises.
CONCESSIONAIRE shall assure CITY of emergency access to the
Premises either by delivering keys to the Premises to the Airport
Manager or by providing emergency telephone numbers by which
CONCESSIONAIRE or CONCESSIONAIRE's agent may be reached on a
twenty-four hour basis.
Without limiting the generality of the foregoing, the CITY,
by its officers, employees, representatives, and contractors, shall
have the right, but not the obligation or responsibility, for the
benefit of CONCESSIONAIRE or for the benefit of others at Airport,
to maintain existing and future utility systems or portions thereof
on the Premises, including therein, without limitation thereof on
12 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
the Premises, including therein, without limitation thereto,
systems for the supply of .heat and electricity and for the
furnishing of fire alarm, fire protection, sprinkler, air
conditioning, telephone, telegraph, tele-register., and
intercommunication services, and to maintain lines, pipes, mains,
wires, conduits, and equipment connected with or appurtenant to all
such systems, and to enter upon the Premises at all reasonable
times to make such repairs, alterations, and replacements as may,
in the opinion of Airport Manager, be deemed necessary or advisable
and, from time to time, to construct or install over, in, under,
or through the Premises new lines, pipes, mains, wires, conduits,
and equipment; provided, however, that such repair, alteration,
replacement, or construction shall not unreasonably interfere with
the use of the Premises by CONCESSIONAIRE and provided further that
nothing herein shall be so construed as relieving CONCESSIONAIRE
of any obligation imposed upon it herein to maintain the concession
areas and the improvements and utility facilities therein.
At anv time, and from time to time, during orair_ary business
hours, within twelve (12) months preceding the expiration of tAe
term of this Agreement, CITY by its accents ana employees, wnet _ner
or not accompanied by prospective concessionaires, occupiers, or
users of the Premises, snail have the right to enter thereon zor
the purpose of exhibiting and viewing all parts of the same.
ARTICLE IX[III
CITY SERVICES
The City covenants and agrees to do the following:
A. To maintain the structure of the Terminal, the exterior
roofs and exterior wails.
B. To wash all exterior windows, and clean and maintain the
public areas in the Terminal.
C. To maintain the electrical, public address, plumbing,
and heating systems on the Premises and in the Terminal
in good condition and repair except that the CITY may
refuse to maintain any systems installed on the Premises
by the CONCESSIONAIRE and may charge the CONCESSIONAIRE
for any repair resulting from the CONCESSIONAIRE's
negligence.
D. The CITY reserves the right to enter onto the Premises
to make any repair or alterations necessary to the proper
functioning of the terminal building without liability
to the CONCESSIONAIRE for any damage to the Premises.
As a result of any entry pursuant to this provision, the
13 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
CITY will only be liable for its own negligence and for
returning the Premises to their former condition using
standard materials.
E. The CONCESSIONAIRE hereby expressly waives any and all
claims and 'holds the CITY harmless for damages arising
or resulting from failures or interruption of utility
services furnished by the CITY herein including but not
limited to stoppages in electrical energy, the quantity
or temperature of water, space heating, or for the
failure or interruption of any public or passenger
conveniences.
ARTICLE X[III]
LAWS AND TAXES
A. This Agreement is issued subject to all requirements of
the laws and regulations of the City of Kenai relating
to the leasing of lands and facilities and the granting
of privileges at airports.
B. At no expense to the CITY, the CONCESSIONAIRE, will
conduct all activities or business autnorazeca py this
Agreement in compliance with all federal, state, local,
and .airport laws, ordinances, rules ana regulations now
or hereafter in force which may be applicable to the
activities or business authorized herein or to the use,
care, operation, maintenance, and protection or the
Airmort, including but not limited to matters or heait.z,
safety, sanitation, and pollution. The CITY snail not
be liable to CONCESSIONAIRE for any diminution or
deprivation of CONCESSIONAIRE's rights hereunder on
account of the exercise of any such authority, nor shall
CONCESSIONAIRE be entitled to terminate the waoie or any
portion of this Agreement by reason thereof.
C. The CONCESSIONAIRE shall obtain all necessary licenses
and permits, pay all taxes lawfully imposed upon the
Premises, and pay any other fees and charges assessed
under applicable public statutes or ordinances.
D. In any disputes between the parties, the laws of the
State of Alaska will govern and any "lawsuit must be
brought in the State courts of Alaska.
E. The CONCESSIONAIRE agrees to notify the CITY of any
claim, demand, or lawsuit arising out of the
CONCESSIONAIRE's occupation or use of the Premises. Upon
the CITY's request, the CONCESSIONAIRE will cooperate and
assist in the investigation and litigation of any claim,
demand, or lawsuit affecting the Premises.
14 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
15 -
F. If CITY shall, without any fault, be made a part to any
.Litigation commenced by or against CONCESSIONAIRE arising
out of CONCESSIONAIRE's use or enjoyment of the Premises
or arising out of the rights authorized by this Agreement
and as a result of which CONCESSIONAIRE is finally
adjudicated to be liable, then CONCESSIONAIRE shall pay
all costs and reasonable attorney's fees incurred by or
imposed upon the CITY in connection with such litigation.
ARTICLE XI[V]
INSURANCE
A. The CONCESSIONAIRE shall indemnify, defend, and hold the
CITY harmless from all liability, action, claim, suit,
loss, property damage, or personal injury of whatever
kind resulting from or arising out of any act of
commission by the CONCESSIONAIRE, his agents, employees,
or customers or arising from or connected with the
CONCESSIONAIRE's use and occupation of the Premises or
the exercise of the rights and privileges granted by this
Agreement.
B. 1. At no expense to the CITY, the CONCESSIONAIRE snall
secure and keep in force during the term of this
Agreement adequate insurance to protect both the
City and the CONCESSIONAIRE in at least the
'following types and amounts:
a. Workers' Compensation Insurance in the amounts
and 'form required by the Workmen's Compensation
Act and the insurance laws of Alaska.
b. Comprehensive General Liability Insurance with
limits not less than $ each
occurrence Combined Single Limit Bodily Injury
and Property Damage, including Contractual
Liability, Personal Injury, Products and
Completed Operations Coverages. Said policy
shall include coverage of CONCESSIONAIRE's
independent contractors.
C. Comprehensive tomobile LIa lity nsurance
wit, li is n less an $ , 00, .00 ach
o c re c Co i ed n le m t B d' y A'ury
a ro a ty ama a inc ing to s -
ow a ip iabili y and hired auto coverages.
d. Property insurance on CONCESSIONAIRE and CITY
improvements, fixtures, and equipment and
insuring against the perils of fire, lightning,
extended coverage perils, vandalism, and
GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
malicious mischief on the Premises in an amount
equal to the full replacement value of
CONCESSIONAIRE and CITY improvements, fixtures,
and equipment.
Said policy or policies shall contain a loss
payable endorsement in favor of the parties
hereto as their respective interests may
appear. "Full replacement value" shall be
determined by a qualified appraiser at the time
said improvements are initially insured and
shall be redetermined annually thereafter
throughout the term of this Agreement. It
shall be CONCESSIONAIRE's responsibility to
obtain said redeterminations. Both
CONCEESSIONAIRE and CITY shall be promptly
notified of the results of said
redeterminations and CONCESSIONAIRE shall
immediately thereafter adjust the amount of
the insurance coverage to correspond with each
redetermination of full replacement value.
2. The CONCESSIONAIRE shall provide the CITY with proof
of insurance coverage in the fora of an insurance
policy or a certificate of insurance coverage,
approved by the CITY, together with proof that the
oremiums have been paid. Comprenensive General
Liability Insurance, Comprehensive Automobile
Liability Insurance, Gross Earnings 3usiness
Interruption Insurance and Property Insurance
policies shall be endorsed to provide the following:
a. Name of the CITY as an additional insured; and,
b. Provide that the CITY be notified at least
thirty (30) days prior to any termination,
cancellation, or material change in the
insurance coverage; and,
C. Include a waiver of subrogation by which the
insurer waives all rights of subrogation
against the CITY for payments made under the
policy.
3. The requirement of insurance coverage will not
relieve the CONCESSIONAIRE of any other obligations
under this Agreement.
16 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
4. Certificates of insurance evidencing all coverages
and endorsements above shall be .furnished to the
CITY prior to commencement of any operations under
this Agreement.
5. CONCESSIONAIRE agrees that the terms of these
insurance requirements may be increased and revised
upon the written demand by the CITY, which demand
must be based on reasonable and justifiable grounds.
ARTICLE XII[V]
CANCELLATION
A. Cancellation by CITY. The CITY may cancel this Agreement
and recover possession of the Premises by giving the
CONCESSIONAIRE thirty (30) days prior written notice upon
the happening of any of the events listed below, unless
the breach is cured within said thirty (30) days:
1. The CONCESSIONAIRE's failure to pay when due the
rents, fees, penalties, etc., specified in this
Agreement, including any increases made pursuant to
this Agreement.
2. The return of checks for insufficient funds for
payment of rents or tees.
3. The use of the Premises by the CONCESSIONAIRE for
purposes not authorized by this Agreement.
4. The filing of a petition in banxruptcy by or against
the CONCESSIONAIRE.
5. The entry by any court of a judgment of insolvency
against the CONCESSIONAIRE.
6. The appointment of a trustee or receiver for the
CONCESSIONAIRE's assets in a proceeding brought by
or against the CONCESSIONAIRE.
7. The filing of any lien against the ?remises because
of any act or omission of CONCESSIONAIRE and such
lien is not removed, enjoined, or a bond for
satisfaction of such lien is not posted within sixty
(60) days; or
8. The levy of any attachment or execution, or the
appointment of any receiver, or the execution of
any other process of any court of competent
jurisdiction which is not vacated, dismissed, or
set aside within a period of ninety (90) days and
17 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
which does, or as a direct consequences of such
process will, interfere with CO'NCESSIONAIRE's use
of the Premises or with its operations cancer t^is
Agreement.
4. The failure of the CONCESSIONAIRE to operate the
business authorized in this Agreerent for a period
of more than fourteen (14) consecutive calendar
days.
10. Cessation or deterioration of any service for any
period which, in the determination of the CITY,
materially and adversely affects the operation of
service required to be performed by CONCESSIONAIRE
under this Agreement.
11. The failure of the CONCESSIONAIRE to perform any
provision or covenant in this Agreement.
No waiver by the CITY at any time or any default on
the part of CONCESSIONAIRE in the performance of any
of the termns, covenants, or concitions hereof to be
performed, kept, or observea by CONCESSIONAIRE shall
be, or be. construed to be, a waiver at any time
thereafter by the CITY of any other or subsequent
default in performance o'Lt any of said terms,
covenants, or conditions, and no notice b_y the CITY
shall be required to restore or revive time as of
the essence hereof after waiver by the CITY of
default in one or nore instances. The granting of
a waiver by the CITY or any provision or covenant
in this Agreement cannot be enforced or relied upon
unless the waiver is in writing signed on behalf of
the CITY.
B. CITY's Richt of Re -Entry. The CITY shall, as an
additional remedy, upon the giving of written notice of
cancellation or termination as above provided, have the
right to re-enter the Premises and every part thereof on
the effective date of cancellation or termination without
further notice of any kind, remove any and all persons
therefrom, and may regain and resume possession either
with or without the institution of summary or legal
proceedings or otherwise. Such re-entry, however, shall
not in any manner affect, alter, or diminish any of the
obligations of CONCESSIONAIRE under this Agreement.
C. Rights of the CITY. The CITY, upon termination or
cancellation of this Agreement, or upon re-entry,
regaining or resumption of possession of the Premises,
may occupy the Premises and shall have the right to
18 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
permit any person, firm, or corporation to enter upon
the Premises and use the same. Such occupation by others
may be of only a part of the ?remises, or the whole
thereof or a part thereof, togetner with other space, and
for a period of time the same as or different from the
balance of the term remaining hereunder, and on terms and
conditions the same as or different from those set forth
in this Agreement. The CITY shall also have the right
to repair or to make such structural or other changes in
the Premises as are necessary in its judgment to maintain
the suitability thereof for uses and purposes similar to
those granted under this Agreement without affecting,
altering, or diminishing the obligations of
CONCESSIONAIRE hereunder.
D. Survival of CONCESSIONAIRE's Oblications. In the event
this Agreement is terminated or cancelled by the CITY,
or in the event the CITY re-enters, recains, or resumes
possession of the Premises, all of the obligations of
CONCESSIONAIRE hereunder shall survive ana shall remain
in full -force and effect for the tull term of this
Agreement. And, subject to the City's obligation to
mitigate damages, the amount of the fees and charges
shall_ become due and payable to the CITY to the same
extent, at the same time and in the same manner as if no
termination, cancellation, re-entry, regaining or
resu,motion of possession had taken place. T..e C_7TY may
maintain separate actions to recover any mo:i- es then due,
or at its option and at any time, may sue to recover the
full deficiency.
E. Surrender of Possession. CONCESSIONAIRE covenants and
agrees to yield and deliver possession of the Premises
to the CITY on the date of the termination, cancellation,
or expiration of this Agreement promptly, peaceably,
quietly, and in as _good order and condition as the same
now or may be hereafter improved by CONCESSIONAIRE or the
CITY, reasonable use and wear and tear thereof excepted.
The CONCESSIONAIRE shall be allowed a minimum of ten (10)
calendar days following the effective date of the
cancellation of the Agreement within which to remove all
of the CONCESSIONAIRE's personal property, equipment,
furniture, and fixtures from the Premises. The
CONCESSIONAIRE and the CITY agree, as part of the
consideration for this Agreement, that all property
remaining on the Premises after the expiration of said
ten (10) calendar days will become the sole property of
the CITY, with full title vested in the CITY, and the
CITY may remove, modify, sell, or destroy the property
as it sees fit.
19 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
ARTICLE X [V] III
TRANSITION AT EXPIRATION OF AGREEMENT
A. Special Definitions for this Article Only: The following
are for the purposes of this Article only.
1. Turnover is defined as midnight of the day on which
the CONCESSIONAIRE's leasehold interests, concession
rights, and operational responsibilities under this
Agreement end as a result of the expiration of this
Agreement or termination of hold -over as covered
under Article XVIII, General Covenant "G".
2. Transition is defined as the period of activities
prior to turnover during which the concession
described in this Agreement is turned over to a
succeeding CONCESSIONAIRE.
B. The CITY and the CONCESSIONAIRE mutually acknowledge and
agree that upon the expiration, cancellation, or
termination of this Agreement, the CITY has the right to
award any subsequent concession agreement to t-ne most
favorable bidder at a public auction or by any other
legal means then available to the CITY.
C. CONCESSIONAIRE understanas and acknowledges that it is
not practical or possible to predict exactly wnat the
transition schedule and procedures should be to nest
serve the needs of the traveling public and the CITY upon
the expiration of this Agreement.
Therefore, as part of the consideration for this
Agreement, the CONCESSIONAIRE hereby agrees that the CITY
has the right to determine what the transition schedule
and procedures shall be so that needs of the traveling
public and the CITY are best served.
CONCESSIONAIRE hereby acknowledges and agrees that the
transition plan determined by the CITY to best serve the
needs of the traveling public and the CITY may,:
1. Require the CONCESSIONAIRE to remove from the
Premises all or any portion of the CONCESSIONAIRE's
fixtures, furniture, and equipment. In that event,
the CONCESSIONAIRE hereby agrees to remove said
items at no cost to the CITY or the succeeding
CONCESSIONAIRE.
2. Require the CONCESSIONAIRE to sell to the succeeding
CONCESSIONAIRE all or any portion of the
20 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
CONCESSIONAIRE'sfurniture, fixtures, and ea,-.Dment,
excluding the CONCESSIONAIRE' s computer equipment,
cash registers, and merchandise. in that event_, the
CITY may require the CONCESSIONAIRE to Furnish, at
its sole expense, an appraisal(s)to establish the
sale price of said items. Any such appraisals)
shall be prepared in the manner directed by the
CITY, shall be submitted by the date specified by
the CITY, and shall be subject to the approval of
the CITY.
The CITY hereby agrees to provide the CONCESSIONAIRE
with written notice of the transition plan
determined by the CITY to best serve the needs of
the traveling public and the CITY at least six (6)
calendar months prior to turnover.
The CONCESSIONAIRE hereby agrees to diligently
execute the transition plan determinea by the CITY,
to abide by the time scheauie, ana to cooperate
completely with the CITY and the succeeding
CONCESSIONAIRE in carrying out said transition plan.
ARTICLE XIV[II]
ASSIGNMENT OR SUBLEASE
A. The CONCESSIONAIRE will not mortgage, hypothecate, or
ot:erwise encumber or assign the concession rights herein
created, nor will the CONCESSIONAIRE sublet or sublease
the Premises in whole or in part without t::e prior
written consent of the CITY, which consent will be freely
given and not unreasonably withheld if the assignee or
sublessee possesses substantially the same qualifications
as to business ability and financial responsibility as
the CONCESSIONAIRE. Any attempted assignment, mortgage,
hypothecation, or encumbrance of the concession rights;
any subletting or subleasing of the whole or any part of
the Premises; or other violations of the provisions of
this Article will be null and void and confer no right,
title, or interest in or to this Agreement nor right of
occupancy of the whole or any portion of the Premises
upon any such assignee, mortgage, encumbrancer, pledgee,
or other lienholder, subtenant, successor, or purchaser.
B. Any proposed assignment, lease, sublease, or subcontract
must be submitted to the CITY for approval in four (4)
copies, each bearing the original notarized signature of
all parties. All covenants and provisions in this
Agreement extend to and bind the legal representatives,
successors, and assigns of the parties.
21 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
C. The CITY wi'1 not withhold its consent to an assignment
of this contract by the CONCESSIONAIRE unreasonably.
ARTICLE XV[III]
GENERAL COVENANTS
A. Execution by CITY. This Agreement is of no effect until
it has been signed by the City Manager for the City of
Kenai.
B. ADproval by CITY. Any approvals required of the CITY by
this Agreement will not be unreasonably withheld.
C. Notices. Any notice required by this Agreement must be
hand delivered or sent by registered or certified mail
to the appropriate party at the address set forth on page
one of this Agreement or to any other address which the
parties subsequently designate in writing.
D. Modification. The CONCESSIONAIRE hereby agrees to anv
modification the CITY may make to this Agreement to meet
the revised requirements of federal or State grants, the
operation of the Airport, or to con*orm to the
requirements of any revenue bond covenant to wnicn the
CITY is a party. Provided, that a modification may not
act to reduce the rights or privileges granted the
CONCESSIONAIRE by this Agreement nor act to cause the
CONCESSIOitiAIRE financial loss.
No :codification or amendments of t:11Js Agreement is
effective unless in writing and signed by the parties.
E. Bid Documents. It is expressly understood and agreed
that the Invitation for Bids, Instructions to Bidders,
the basic bid specifications, including any addenda
thereto, the Bidder's Affidavit and the bond or other
security deposit required under said instructions are
hereby made a part of this Agreement, and each of the
parties hereto does hereby expressly covenant and agree
to carry out and fully perform each and all of the
provisions of said documents upon its part to be
performed.
F. Interrelationshio of Provisions. The articles, general
covenants, special covenants, supplements, addenda, and
drawings attached as exhibits are essential parts of this
Agreement and are intended to be cooperative, to provide
for the use of the Premises, and to describe the
respective rights and obligations of the parties to this
Agreement. In case of a discrepancy, figures dimensions
22 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
govern over scaled dimensions unless obviously incorrect.
Special covenants govern over articles, both of -.vhich
govern over general covenants.
G. Holding Over. If the CONCESSIONAIRE holds over and
remains in possession of the Premises after the
expiration of this Agreement without a written renewal,
the holding over will not operate as a renewal or
extension of the term of this Agreement, but only creates
a tenancy from month to month, regardless of any rent
payments accepted by the CITY. The CONCESSIONAIRE's
obligations for performance under this Agreement will
continue until the month -to -month tenancy is terminated
by the CITY. The CITY may terminate the month -to -month
tenancy at any time by giving the CONCESSIONAIRE at least
ten (10) days prior written notice.
H. Validity of Parts. If any provision or covenant of this
Agreement is aeclared to be invalid by a court of
competent jurisdiction, the remaining covenants and
provisions will continue in full force.
I. Con-flicts Between _Concessions. In the event oL a
conflict between the C014CESSIONAIRE and any other tenant,
lessee, or C0.7CESSIONAIRE on the airport as to services
to be provided by respective CONCESSIONAIRE or lessees,
t_^.e CITY will decide which services may be provided by
whom. CONCESSIONAIRE agrees to be bound by such
decision, subject to any rights CONCESSIONAIRE may have
to seek judicial relief.
J. Advertising. The display by the CONCESSIONAIRE of any
signs, advertising, or similar matter in the Terminal
with the prior approval of the Airport Manager is hereby
prohibited.
K. Radio Interference. At the CITY's request, the
CONCESSIONAIRE shall discontinue the use of any machine
or device which interferes with any government operated
transmitter, receiver, or navigation aid until the cause
of the interference is eliminated.
L. Discrimination. The CONCESSIONAIRE covenants and agrees
that discrimination on the grounds of race, color,
religion, national origin, ancestry, age, or sex, will
not be permitted against any patron, employee, applicant
for employment, or other person or group of persons in
any manner prohibited by Federal or State law. The
CONCESSIONAIRE recognizes the right of the CITY to take
any action necessary to enforce this covenant, including
actions required pursuant to any Federal or State law.
23 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
M Affirmative Action. The CONCESSIONAIRE agrees that it
will undertake an affirmative action nrooram as required
by 14 CFR Part 152, Subpart E, to insure that no person
will be excluded from participating in any employment
activities covered by 14 CFR Parr_ 152, Subpart EE on the
grounds of race, creed, color, national origin, or sex.
The CONCESSIONAIRE hereby agrees that no person shall be
exclude on these grounds from participating in or
receiving the services or benefits of any program or
activity covered by said subpart. The CONCESSIONAIRE
further agrees that it will require that its covered
suborganization(s) provide assurance to the CITY to the
same effect that they will also undertake affirmative
action programs and require assurances from their
suborganizations, as required by 14 CFR Part 152, Subpart
E.
N. National Emergency. In case of any national emergency
declared by the Federal Government, the CONCESSIONAIRE
may not hold the CITY liable for any inability to per=orm
any part.of this Agreement as a result or the national
emergency.
0. Disasters. If, in the determination of the CITY, fire,
flood, earthquake, or other casualty damages the Terminal
so extensively as to render it untenantaole, eitner party
may elect to terminate this Agreement upon written notice
to the other party. In the event of sucn termination,
the rent payable under this Agreement :rust be prorated
Up to the time the Terminal becomes untenantaole.
P. Condemnation. If the Premises are condemned by any
proper authority, the term of this Agreement will end on
the date the CONCESSIONAIRE is required to surrender
possession of the Premises. The CITY is entitled to all
the condemnation proceeds except the CONCESSIONAIRE will
be paid the portion of the proceed attributable to the
fair market value of any improvements placed on the
Premises by the CONCESSIONAIRE according to the
24 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
provisions of 17 AAC 40.330, amended. Rent will also be
adjusted according to the provisions of 17 AAC 40.330,
as amended.
DATED: This day of
CITY OF KENAI
By=
Wm. J. Brighton
City Manager
CONCESSIONAIRE.
0y:
STATE OF ALASKA )
) Ss.
THIRD JUDICIAL DISTRICT )
i989.
THIS IS TO CERTIFY that on this day of
1989, being personally Known to me or
having produced satisfactory evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument.
Notary Public in and for Alaska.
My Commission Expires:
STATE OF ALASKA )
? ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ,
1989, WILLIAM J. BRIGHTON, City Manager of the City of Kenai,
Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the
foregoing instrument on behalf of said City.
Notary Public in and for Alaska.
My Commission Expires:
25 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
Approved as to lease form by City Attorney.
Approved by Finance Director.
Approved by City Manager
Lease Approved by Council on
Janet 2uotsala, City Clerk
26 - GIFT SHOP CONCESSION AGREEMENT LESSOR:
LESSEE:
TO DO XST
June , 1989
KENAI CITY ZOUNCIL WORK SESSION
1. T. Rogers - Airpopf terminal lease agreements - draft
for 7-5 meeting,/discuss at 7-19 meeting.
jr