HomeMy WebLinkAboutResolution No. 2019-14Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 20 19 -14
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , AUTHORIZING THE CITY
MANAGER TO ENTER INTO AN AMENDED RESTAURANT CONCESSION AGREEMENT
WITH THE KENAI MUNICIPAL AIRPORT.
WHEREAS, on August 1, 2018, Council passed Resolution 2018-42 authorizing the City Manager
to enter into a restaurant concession agreement with the Brothers ' Cafe ; and,
WHEREAS, for the rights and privileges granted under the agreement, the Brothers' Cafe paid a
monthly percentage of 5% of gross receipts p lus applicable sales tax for August and September
of 2018 and 10% plus applicable sales tax for all months after September 2018; and ,
WHEREAS , the Brothers ' Cafe is experiencing a decrease in their business due primarily to
impacts from the terminal rehabilitation project and is requesting a temporary rate adjustment
from 10% to 5% for the months of February, March , April, and May 2019 ; and,
WHEREAS , City Administration has determined that the request is reasonable due to impacts
from the construction and that an additional decrease for an extended period of time and in the
monthly percentage may be justified .
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA:
Section 1. That the Ci ty Manager is authorized to execute an amendment to the concession
contract with The Brother's Cafe ' to amend the monthly percentage of gross rece ipts plus
applicable sales tax until the restaurant is no longer impacted by construction activity during the
Terminal Rehabilitation Project as determined by the City Manager. If gross receipts indicate an
additional d iscount is justified , the City Manager may further decrease the monthly percentage of
gross receipts due to the City during the Terminal Rehabilitation Project, in compliance with
appl icab le FAA requirements. Decisions made by the City Manager shall be final and not subject
to appeal.
Section 2. That this resolution takes effect immediately upon adopt ion .
ADOPTED BY THE COUNCIL OF T HE CITY OF KENAI, ALASKA, this 5 th day of Ma rch , 2019.
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210 FidalgoAve, Kenai , Alaska 99611 -7794
Telephone : (907) 283-75351 Fax: (907) 283-3014
www. kenai .city
MEMORANDUM
TO :
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary L. Bondurant, Airport Manager
February 21 , 2019
Resolution No. 2019 -14 -Brothers' Cafe
On February 13, 2019 , Jim Hamilton, owner of Brothers' Cafe , requested a temporary rate
reduction in the percentage of gross receipts paid to the City due to loss of business since the
terminal construction project started in October 2018.
Customer dissatisfaction with noise, parking , and terminal navigation, is impacting the business.
The Brothers' Cafe is current in all fees owed to the City and in compliance with the Kenai
Peninsula Borough.
I recommend reducing the percentage of gross receipts paid to the City be reduced from 10% to
5% for the months of February , March, April, and May 2019.
Thank you for your consideration.
Please contact me if you have any questions.