Loading...
HomeMy WebLinkAboutResolution No. 2023-57KENAI CITY OF KENAI RESOLUTION NO. 2023-57 Sponsored by: Administration A RESOLUTION AWARDING NON-EXCLUSIVE ON -AIRPORT CAR RENTAL CONCESSIONS TO COPPER RIVER RENTALS, LLC D/B/A BUDGET RENT A CAR AND ALASKA RENT A CAR, INC. D/B/A AVIS FOR THE PERIOD OF JANUARY 1, 2024 TO DECEMBER 31, 2028. WHEREAS, two responsive bids were received on September 1, 2023 for the contract years January 1, 2024 through December 31, 2028; and, WHEREAS, the bidders agree to pay to the City of Kenai the greater of either ten percent (10%) of its monthly Gross Receipts or the following minimum annual guarantee for each twelve-month period of the five (5) year term of the concession; and, Bidder Per Year Alaska Rent A Car, Inc. $61,624 Copper River Rentals LLC $42,000 WHEREAS, the Council of the City of Kenai has determined awards to these bidders will be in the best interest of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorized to execute non-exclusive on -airport car rental concessions to agreements with Copper River Rentals, LLC and Alaska Rent a Car, Inc. for the period of January 1, 2024 to December 31, 2028. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 20t' DAY OF SEPTEMBER, 2023. rian Gabriel Sr., Mayor ATTEST: Michelle\k4. Sker, 19+iMC, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 1 www1enai.city MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Terry Eubank, City Manager FROM: Mary Bondurant, Interim Airport Manager DATE: August 28, 2023 SUBJECT: Resolution 2023-57 to Award Non-exclusive On -Airport Car Rental Concessions Bids were solicited in the Anchorage Daily News, Peninsula Clarion, and the Airport website from July 5, 2023 to August 31, 2023 for the right to operate a non-exclusive on -airport car rental concession in the airport terminal building. Two bid packets were received on Friday, September 1, 2023 at 2:00pm. The bid submittals were reviewed by Administration and found to be complete. The concessionaires agree to pay to the City of Kenai the greater of either ten percent (10%) of its monthly Gross Receipts or the following minimum annual guarantee for each twelve-month period of the five (5) year term of the concession. Bidder Bid Amount Per Year 5 Year Bid Total Alaska Rent A Car, Inc., $61,624 $308,120 d/b/a Avis Copper River Rentals, LLC d/b/a Budget Rent A Car of Alaska $42,000 $210,000 In addition, the concessionaires shall pay the current signatory rate per square foot (as set by City Council) multiplied by the square footage of the terminal counter/office space and $20 per space per month for any vehicle parking spots over ten (10), plus applicable sales tax. The new agreements are effective January 1, 2024. Airport Commission recommended approval of the new concession agreements at the September 14, 2023 meeting. Thank you for your consideration. CITY OF KENAI KENAI MUNICIPAL AIRPORT NON-EXCLUSIVE ON -AIRPORT AUTOMOBILE RENTAL CONCESSION AGREEMENT THIS AGREEMENT is made this day of , 2023, between the City of Kenai (City), whose address is 210 Fidalgo, Kenai, AK 99611, and d/b/a (Concessionaire), whose address is INTRODUCTION A. The City owns and operates the Kenai Municipal Airport and Airport Terminal Building (collectively "Airport"), located in Kenai, Alaska. B. The City has space available at the Airport for non-exclusive on -airport automobile rental concessions, and it has determined that the provision of on -airport automobile rentals at airports serves a public purpose. C. The City desires to offer on -airport automobile rental services at the Airport for the accommodation and enjoyment of the traveling public. The Concessionaire desires to operate an on -airport automobile rental business in the City's Airport Terminal Building. D. On , the Kenai City Council adopted a resolution authorizing the City Manager to enter into an agreement with the Concessionaire based upon certain terms and conditions covering operation of on -airport automobile rental concession at the Airport. ARTICLE I — DEFINITIONS The following definitions apply for this Agreement: A. Agreement: The Agreement consists of this On -Airport Automobile Rental Concession Agreement, together with the exhibits and all future amendments or supplements executed by the parties to this Agreement. B. Air ort Manager: The City's designated manager at the Kenai Municipal Airport acting directly or through a duly authorized representative. C . Certified Activity Report (CAR.: A report that lists Gross Receipts generated by the On -Airport Automobile Rental Concession during the calendar months for which Concessionaire makes payment. The required form for the Certified Activity Report is attached as Exhibit 1. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Pagel of 22 D. Concessionaire: The successful bidder for the City's non-exclusive On -Airport Automobile Rental Concession who provides car rental services under this Agreement. E. Disadvantaged Business EnterL_,rise .DBE:: A business certified by the State of Alaska as a disadvantaged business enterprise as further defined in 49 CFR, part 23. F. Gross Recei( ts: The aggregate amount of all transactions made on, in, from, or through the Premises for cash, or credit, or otherwise, of every kind, name and nature, regardless of when or whether or not paid, whether made by the Concessionaire or any other occupant or occupants of the Premises, or some part or parts thereof excepting from the determination of said amount (1) any and all taxes or fees collected by Concessionaire on behalf of any governmental body or taxing agency and excepting tips income paid and received by service staff of Concessionaire; (2) any sums received from the sale of capital assets; (other than "rent to own program vehicle sales rental amounts); (3) any sums received from insurance or other settlements for damage to automobiles or other property of the Concessionaire, or for the loss, conversion, or abandonment of such automobiles; and, (4) all non -revenue rentals to employees of Concessionaire; (5) payment and administration of parking tickets, tolls, towing and impound fees, traffic and red-light tickets; (6) net corporate discounts applied at the time the rental contract is close but only to the extent the Concessionaire provides auditable proof to Airport that discount or rebate is specifically attributable to rental agreement with Airport customer, and , (7) any fees collected from a customer for damages to automobile rented. G . Premises: The area approved by the City for the operation of an on -airport automobile rental business at the Airport as shown on Exhibit 2 and also as described in Article III, below. ARTICLE II —TERM A. Term: The term of this Agreement is effective as of January 1, 2024, through midnight of December 31, 2028, unless terminated earlier as provided herein. B. Holding Over; if the Concessionaire holds over, provides services, and remains in possession of the Premises without a written renewal or extension of this Agreement, the City's allowance of continued operations by Concessionaire does not operate as a renewal or extension of the rights granted under this Agreement, and, instead the parties agree that this creates only a month -to -month extension, regardless of any payment the City accepts. The Concessionaire's obligations to perform under this Agreement will continue until either it or the City terminates the services under this Agreement by giving the other party at least 10 days' written notice. The payment due for any extended period during which services are provided without a written extension of this Agreement is the monthly rent as it would have been due for the preceding year and plus the applicable concession fee due for that period of additional operation and such payments shall be payable in the same manner. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 2 of 22 ARTICLE III — PREMISES A. For the term of this Agreement, the City provides to the Concessionaire and the Concessionaire accepts from the City, the following described property, the Premises, located at the Kenai Municipal Airport: a. Counter space # , first floor, Terminal Building, Kenai Municipal Airport, within the NW1/4, SE1/4, Section 32, T6N, R11W, S.M., AK, consisting of square feet, and more specifically shown on Exhibit 2, such Premises to be used, kept, and maintained for the operation of an on -airport automobile rental business for the traveling and general public as further described herein and for no other purpose. B. In addition to the Premises, Concessionaire shall have the right to use up to ten (10) parking spaces at no additional monthly fee. The Airport shall allocate the location of Concessionaire's parking spaces in order of bid from its public bidding process, with the highest bidder having first choice of row. The current location of parking spaces is depicted in Exhibit 3, "Parking Area Layout.„ The City reserves the right to designate other locations for parking spaces as it deems necessary for the efficient operation of the Airport. The charge for any additional spaces over and above the ten (10) allocated at no charge shall be twenty -dollars ($20.00) per space per month, or any portion of the month without pro -ration, plus applicable sales tax. Additional spaces shall be allocated to all on -site car rental concessionaires equally, at the discretion of the Airport Manager, and depending on availability. Concessionaire shall, at its own expense, provide and install signage (subject to approval by the City) for each of its parking spaces. C. Concessionaire accepts the Premises and parking area AS IS and acknowledges that it has had an opportunity to inspect the Premises and parking area. The City makes no specific warranties, expressed or implied, concerning the condition, title, access, or suitability of the Premises for any use, including those uses authorized by this Agreement. Concessionaire accepts the Premises subject to any covenant, term, or condition affecting the City's title to the Premises. D . Permanent parking relocation — the Airport reserves the right during the term of this Agreement to permanently relocate Concessionaire parking. The Airport will make all attempts to ensure permanent parking relocation is within a reasonable distance and at the terminal. E . Construction or Temporary Disruption — the Airport reserves the right during the term of this Agreement to temporarily relocate Concessionaire parking; the Airport will attempt to minimize, but has no responsibility for disruption of the Concessionaire's operation or temporary interruption of Concessionaire's use of any part of its Operating Area due to construction activities or temporary disruption by the Airport or City contractors. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 3 of 22 ARTICLE IV — RENT FEES TAXES. AND PAYMENTS A. For the rights and privileges granted under this Agreement, Concessionaire shall pay the City a monthly fixed Terminal Building Rent - Exclusive Space ("base rent"). Base rent shall be computed at the current signatory rate per square foot (as set by the City Council) multiplied by the square footage of the Premises _ square feet), plus applicable sales tax. Base rent shall be payable in twelve (12) equal installments in advance of the first day of each and every calendar month. For any fractional calendar month, the base rent shall be the same as for a full month. Concessionaire agrees to pay rent payable to the City at Kenai City Hall in United States currency either by check, cash, bank draft, or money order. Concessionaire will submit payments free from any claim, demand, setoff, or counterclaim of any kind against the City. B. Concession Fee: For the rights and privileges granted under this Agreement, Concessionaire shall also pay the City, in addition to the base rent, a sum of money as additional rent known as "concession fee." The monthly concession fee due shall be the GREATER of (1) one -twelfth (1/12) of the applicable Annual Guarantee, or (2) ten percent (10%) of Concessionaire's monthly Gross Receipts. Concession fee is subject to applicable sales tax. The annual guarantee for each year of this Agreement is as follows: Year One $ (plus tax) Year Two $ (plus tax) Year Three $ _ _ (plus tax) Year Four $ (plus tax) Year Five $ (plus tax) Total The concession fee required shall be paid for each calendar month during the term of this Agreement. Concession fee shall be payable in twelve (12) installments on the fifteenth day of each and every calendar month after the preceding month for which the concession fee installment is applicable. Concessionaire agrees to pay concession fee payable to the City at Kenai City Hall in United States currency either by check, cash, bank draft, or money order. Concessionaire will submit payments free from any claim, demand, setoff, or counterclaim of any kind against the City. During any Agreement year Concessionaire shall pay the base rent for each month. Concessionaire must also pay concession fee. The minimum concession fee that Concessionaire must pay each month is 1/12 of the annual guarantee set out above. But, if the alternate measure of concession fees-10% of Gross Receipts —would be greater than 1/12 of the promised annual guarantee, Concessionaire shall pay 10% of Gross Receipts as concession fee. Concessionaire shall, provide a Certified Activity Report (CAR) for each month for the City's audit purposes to determine compliance with the concession fee requirement. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 4 of 22 Concessionaire shall submit each CAR in the format shown in Exhibit 1. The CAR shall be submitted to Kenai City Hall on or before the same date that concession fee is due. Concession fee payable to the City by the Concessionaire under this Agreement shall be owned by the City at the time of each customer transaction and will be held in trust by the Concessionaire while the funds are in Concessionaire's custody and control. The Concessionaire is responsible for these fees until delivered to the City. If any fees payable to the City are lost, stolen, or otherwise unlawfully removed from the custody and control of the Concessionaire, the Concessionaire remains responsible to the City for the revenue. C. Parking Spaces: Concessionaire shall pay an additional fee of twenty -dollars ($20.00) per space per month (without pro -ration), plus sales tax, as additional rent for any spaces over the ten (10) parking spaces allocated (as further identified in Article III, paragraph B, above.) Parking space fees, if any, shall be payable on or before the same date that concession fee is due. Concessionaire agrees to pay rent payable to the City at Kenai City Hall in United States currency either by check, cash, bank draft, or money order. Concessionaire will submit payments free from any claim, demand, setoff, or counterclaim of any kind against the City. D. Penalty/Interest: Time is of the essence in meeting the base rent and concession fee payment requirements. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) of any amount of money owed under the Agreement, shall accrue on any unpaid balance. Interest shall accrue from the date due until the date paid in full. (KMC 1.75.010) E. Unpaid Fees: Any rent, charge, fee, liquidated damage/penalty, interest, or other consideration due but unpaid at the expiration or cancellation of this Agreement is a charge against the Concessionaire and its property, real or personal, at the Airport or where otherwise located. The City has any lien rights allowed by law. Either the City or its authorized agent may provide enforcement. F. Taxes: Concessionaire shall pay any borough, city, or other sales and property taxes due on base rent, concession fee, and any other fee due under this Agreement. G. Other Fees: The City reserves the right to impose and collect charges and fees from Concessionaire for the following: 1. the use of specified equipment, facilities, or services when such use is requested by Concessionaire; and/or, 2. the privilege of accessing the Airport to conduct any business other than an on -airport automobile rental business. H. Audit: In addition to the Audit rights specked elsewhere herein, the City (itself or through and/or its designated representatives) reserves the right to audit Concessionaire's books and records at any time for the purpose of verifying the Gross Receipts. If, as a result of such an audit, it is established by the City that Concessionaire has understated the Gross Receipts received by three percent (3%) or more (after the deductions and exclusions provided for herein), the entire expense of said audit shall be Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 5 of 22 borne by Concessionaire Any amount found to be underpaid will be assessed to Concessionaire along with penalty, audit costs, if applicable, and interest. I. Revenue Diversion: Concessionaire shall not cause or allow to be diverted from the Airport any of its automobile rental business in any manner to avoid or reduce its Gross Receipts upon which its financial obligations owed the City is computed. In the event Concessionaire establishes, owns, operates, or manages during the term hereof any automobile rental business within five (5) miles of the Airport, it agrees to make all books, records, and other pertinent documents of such automobile rental business available for audit by the City and/or its designated representative to ensure compliance with this provision. if, as a result of such an audit, it is established by the City that Concessionaire has understated the Gross Receipts received by three percent (3%) or more (after the deductions and exclusions provided for herein), the entire expense of said audit shall be borne by Concessionaire. Any amount found to be underpaid will be assessed to Concessionaire along with penalty, audit costs, if applicable and interest. J. Concession Recovery Fee: Concessionaire acknowledges that Concession Fee payments by Concessionaire to the Airport under this Concession Agreement are for Concessionaire's privilege to use the Airport facilities and access the Airport market and are not fees imposed by the Airport upon Concessionaire's customers. The Airport does not require, but will not prohibit, a separate statement of and charge for the Percentage Fee on customer invoices or rental agreements ("Recovery Fee"), provided that such Recovery Fee meets all of the following conditions: (a) such Recovery Fee must be titled "Concession Recovery Fee," "Concession Recoupment Fee" or such other name first approved by the Airport in writing; (b) the Recovery Fee must be shown on the customer rental car agreement and invoiced with other Concessionaire charges (i.e., "above the line"); (c) the Recovery Fee as stated on the invoice and charged to the customer shall be no more than eleven and eleven -hundredths percent (11.11 %) of Gross Revenues, specifically excluding from Gross Revenues for purposes of this calculation the Recovery Fee; (d) Concessionaire shall neither identify treat, or refer to the Recovery Fee as a tax, nor imply that the Airport is requiring the pas -through of such fee. ARTICLE V - RIGHTS. OBLIGATIONS, AND RESERVATIONS A. Rights and Obligations: Subject to the obligations under this Agreement, the City grants Concessionaire the authority to exercise and the obligation to perform the following at its own expense: 1. The non-exclusive privilege and obligation to operate an on -airport automobile rental business area at the Airport, which Concessionaire may operate on and upon the Premises, the non-exclusive privilege and obligation to conduct an on -airport automobile rental concession at the Airport from the terminal for the convenience of passengers utilizing the Airport, and for patrons and tenants of the Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 6 of 22 Airport. Such right includes the right to rent automobiles to the general public at or on the Airport; provided, however, that such rentals of automobiles are consistent with the standards of the City and the industry. During the term of this Agreement the City will authorize no more than three (3) Automobile Rental Concessions to operate from the Terminal at any one time. The City reserves the rights to authorize, regulate, and charge a fee for Off -Airport Concessions to operate on the Airport. The Concessionaire shall have the right to rent counter space to conduct an automobile rental business, subject to the terms of this agreement. Concessionaire shall engage in no other business activity on or at the Airport. 2. Concessionaire, its officers, contractors, suppliers, service personnel, guests, patrons, and invitees shall have the right to ingress and egress of and to occupy the Premises, subject to the security rules of the Airport. 3. Concessionaire may, after consent by the Airport. Manager, install signs at the Premises identifying its business. Concessionaire shall request and obtain the City's advance written approval. 4. Concessionaire shall obtain all permits and licenses required by any laws of any federal, state, city, borough or other governmental entity in order to operate the on -airport automobile rental concession and shall pay all related fees for said permits and licenses. 5. Subject to more specific instructions in Article VII, below, Concessionaire shall keep accurate books and records in accordance with recognized accounting practices concerning all gross receipts from sales as defined here and to keep and preserve in the city of Kenai for a period of five (5) years following the end of each year of this Agreement, complete and true records. All books and records maintained by Concessionaire relating to gross receipts from sales shall be available at all reasonable hours to the inspection of the City and its agents. B. Reservations and Prohibitions 1. City reserves the right to grant others any right or privilege specifically granted Concessionaire at locations other than at the Premises. 2. City shall have the right to inspect the Premises and to impose reasonable regulations to insure proper care, maintenance, and upkeep of the Premises. 3. Improvements, facilities, fixtures, equipment and things on, in or appurtenant to the Premises and parking area are available to Concessionaire AS IS and without any warranties or representations whatsoever, including warranties of fitness for a particular purpose or warranties of merchantability. 4. City reserves the right to address and resolve any problems arising out of Concessionaire's operations. City will forward to Concessionaire for response any complaints, questions, or concerns it receives regarding Concessionaire's operations. 5. The rights and privileges granted Concessionaire under this Agreement are Non -Exclusive. On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 7 of 22 the only rights and privileges granted the Concessionaire. The Concessionaire has no easements, rights or privileges, express, or implied, other than those expressly granted under this Agreement. 6. Concessionaire will not sell any service or product unless described in this Agreement without the advance written approval of the City. If a question or dispute arises concerning the sale of any service or product, the Concessionaire may submit a written request to the City asking for a review and decision. The City will deliver a written decision to the Concessionaire and the decision of the City is final. 7. The Kenai Municipal Airport Terminal is a smoke —free facility. Neither Concessionaire nor its employees, nor its customers may smoke on the Premises or in the Airport Terminal ARTICLE VI — GENERAL CONDITIONS OF OPERATION Concessionaire will comply with the following: A. General: 1. Concessionaire shall provide for the operation and maintenance of the Premises as an on -airport automobile rental business. During the term of this Agreement, Concessionaire shall have sole possession of, and responsibility for, maintenance of the Premises, including, but not limited to, all improvements constructed thereon and fixtures and equipment existing on the Premises at the commencement of the Agreement and thereafter installed by either Concessionaire or City. 2. Hours of Operation: Concessionaire agrees to continuously operate the facility during the term of this Agreement. For purposes of this Agreement, "continuously operate" means that the facility, shall open for business on a daily basis, 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 of the Premises. 3. Concessionaire shall not permit any defacing of walls, floors, and fixtures, shall keep all the Premises free from trash and debris, and shall maintain and service all equipment at a high level of efficiency, reliability and appearance. 4. Concessionaire shall not permit smoking on the Premises. 5. Driving Practices: Concessionaire shall closely control and supervise the driving practices of its employees with respect to the rental car business. Concessionaire shall not permit fast, reckless, or unsafe driving by its employees. Concessionaire will take all steps necessary to correct specific instances of misconduct. Further, Concessionaire is aware that its customers and/or employees may park rental cars improperly on the Airport. Concessionaire shall make reasonable efforts to inform its patrons of the proper location for parking rental Gars and to Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 8 of 22 identify improperly -parked vehicles and quickly remedy the situation. Concessionaire hereby acknowledges that the City has the right to cite and/or to impound improperly parked rental cars to protect and preserve the orderly flow of traffic at the Airport. The Concessionaire shall promptly remove any of its improperly -parked rental cars and be subject to paying the charge for impound or any citation given. 6. Concessionaire shall neither commit nor allow any nuisance, noise, or waste on the Airport property, nor shall Concessionaire annoy, disturb or be offensive to other users. 7. Concessionaire shall maintain the Premises in good repair, appearance, and in a safe condition at all times. At its own expense, the Concessionaire shall paint, repair, or replace its equipment as their condition may require. The Concessionaire shall take any action the City determines necessary for safety or to maintain the Premises in good repair and appearance. 8. Concessionaire shall pay for any lighting fixtures, extraordinary power use, or cleaning services required or caused by the Concessionaire which, in the City's reasonable determination, are beyond the scope of normal services provided by the City. 9. If Concessionaire causes damage to the City or to an Airport user due to inadequate maintenance by the Concessionaire or any of its equipment, fixtures, or systems, the Concessionaire shall repair the damage at its own expense. If the Concessionaire does not repair the damage, the City, may, but is not obligated to, repair the damage and bill the Concessionaire for the City's costs. The Concessionaire shall pay the City within thirty (30) days of the billing date. 10. Concessionaire will maintain the Premises in a clean, neat, and sanitary condition. The Concessionaire will provide day-to-day janitorial and cleaning services and supplies necessary to maintain the Premises. 11. Concessionaire shall provide for the adequate sanitary handling and removal of all trash, garbage, and other refuse caused as a result of Concessionaire's operations. Concessionaire shall coordinate a schedule and procedure of trash removal with the Airport. Concessionaire shall provide and use suitably covered or sealed receptacles for all garbage, trash, and other refuse from its operations inside the terminal. Refuse and waste materials shall be handled as required by applicable state and local laws, ordinances, and regulations. 12. Employee Parking: Employees of Concessionaire may use non-exclusive employee vehicle parking facilities at the Airport at no charge. All employees must register their vehicle(s) at the Airport Administration office to receive a vehicle parking permit to park while on the job. Concessionaire shall not pen -nit its employees to park their personal vehicles in the parking spaces (except as may be approved by the Airport Manager on a case -by -case basis for emergencies or special circumstances). Concessionaire shall be held accountable for Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 9 of 22 13. Concessionaire's employees' use of designated vehicle parking facilities and shall assure that employees comply with all applicable Airport Directives. 14. Except as allowed for employee parking, the Concessionaire shall not use any Airport space outside of the Premises for any purpose unless specifically leased from the City or subleased from a third party with the consent of the City. 15. Concessionaire shall, at its own expense, provide and install signage for each of its Parking Spaces described in Article III, above. Signage and installation plan shall conform to airport standards and shall be submitted in writing and approved by the Airport Manager or their designee prior to installation. 16. No Discrimination: The Concessionaire 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 Concessionaire in the use of any facility hereinabove described on grounds of race, color, religion, national origin, ancestry, age, or sex shall be deemed to be a material breach of this Agreement and grounds for cancellation of this Agreement. Concessionaire agrees that Concessionaire will not discriminate against any employee or applicant for employment, to be employed in the performance of this Agreement with respect to the 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, color, religion, national origin, ancestry, age, or sex. Concessionaire understands that any such discrimination shall be deemed to be a material breach of this Agreement. Concessionaire shall comply with all laws, ordinances, regulations and rules of the City, the State of Alaska and the United States as same may be amended from time to time. B. Reasonable Pricing: Concessionaire shall provide the on -airport automobile rental business under this Agreement to its customers on a fair, nondiscriminatory basis, with reasonable prices to customers. All services provided by Concessionaire shall be competitive in price to those services at off -Airport locations within the Kenai Peninsula area. C. Signs: Concessionaire shall not, without the prior written approval of the City, construct, erect, or place any signs in or on the Airport other than an Airport -approved sign providing information identifying Concessionaire and concerning the services provided by that Concessionaire. The terms "sign" and "signs" as used herein shall mean advertising or promotional materials, billboards, notices, identification symbols, posters, electronic or static displays, information racks, decals, logos, or any similar device. D. Service Quali : Concessionaire's operation under this Agreement is a service to airline passengers and to other users of the Airport. The City desires to provide airline passengers and other users of the Airport with on -airport automobile rental services that are of the highest quality. Concessionaire shall actively operate the concession to best Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 10 of 22 serve the needs of airline passengers, Airport employees, and other users of the Airport. Concessionaire shall maintain professional personnel who will provide a high standard of service to the public. While on duty, the personnel will present a neat and clean appearance, remain courteous at all times, and wear any and all badges or other identification cards that are mandated by the management of the Airport. Concessionaire acknowledges that the ability of the City to effectively compete with airports outside the State of Alaska and to promote tourism to the State of Alaska depends, in part, on the performance of the Concessionaire. Accordingly, Concessionaire shall conduct its operation in a first-class, businesslike, efficient, courteous, accommodating manner. E. Business Development: Concessionaire shall take all reasonable measures to maintain, develop, and increase its business without diversion of any business to any entity or location not subject to this Agreement. F. Securi : Concessionaire shall adhere to all applicable responsibilities of the federal airport security program set out in the Transportation Security Regulations Title 49 CFR Part 1542 and the Airport Security Program. Concessionaire will procure any required identification badges necessary to access the premises or the Concessionaire's operations authorized under this Agreement. Any fine that results from a violation of the federal airport security program by the Concessionaire, its agents, officers, suppliers, sub Concessionaires, vendors, guests, customers, or employees, whether on or off the premises, that is found by the Transportation Security Administration or the City to be the fault of the Concessionaire will be the sole responsibility of the Concessionaire. If the City pays any such fine to meet the Transportation Security Administration deadlines, the Concessionaire will reimburse the City within 30 days after written notice by the City. The Concessionaire will coordinate any Airport security matter with the City. G. In the event that any contract granted by the Airport to any other Rental Car Company shall contain any terms and conditions more favorable to such company than the terms and conditions herein described (other than the minimum annual guarantee, number of allocated parking spaces, and the location of the concession area, etc.) then this Agreement shall be amended to include such more favorable terms and any offsetting burdens that may be imposed on any such other company. The intent of this provision is to ensure that no individual rental car company or companies shall enjoy any rights or privileges more favorable to any such individual company or companies than those enjoyed by all rental car companies. ARTICLE VII —AUDITS. REPORTS. BOOKS, AND RECORDS To provide a satisfactory basis to confirm the accuracy of the Concessionaire's CARS, the Concessionaire shall establish and maintain books and records that concern the business authorized under this Agreement in accordance with generally accepted accounting principles. The Concessionaire's books and records must, in the determination of the City, enable the Concessionaire to report accurately, and the City to check easily, payments due the City under this Agreement. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 11 of 22 The Concessionaire shall preserve all books and records of business conducted under this Agreement for the longer of six (6) months after completion of an audit by the City or five (5) years after the end of the Agreement year to which the books and records pertain. However, if the City objects to any report or statement, the Concessionaire will preserve all books and records containing information relevant to that report or statement until resolution of the objection is confirmed in writing by the City. The City, or its designee(s), shall have access to accounting and other records necessary to confirm the accuracy of the Concessionaire's CARs at all times regardless of the media in which the information is stored. ARTICLE VIII — DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION, NON- DISCRIMINATION. AND AFFIRMATIVE ACTION A. City Policy: The City of Kenai's policy is to ensure that Disadvantaged Business Enterprises (DBEs) have the maximum opportunity to participate in the performance of airport concession contracts. B. Concessionaire's Obligation: Concessionaire will comply with all applicable laws and regulations regarding the fair and equitable treatment of DBEs. Concessionaire will ensure that DBEs have the maximum opportunity to participate in the performance of this Agreement, including the provision of supplies and services and any subcontracting opportunities. C. Non-discrimination: Concessionaire shall ensure that Concessionaire and Concessionaire's agents and personnel, including any officer or employee, and anyone else acting by, on behalf of, or under the authority of Concessionaire on the Airport and, on the Premises, any of Concessionaire contractors, sublessees, and guests, including any vendor or customer do not discriminate on the grounds of race, creed, color, national origin, age, sex, handicap, marital status, change in marital status, pregnancy, or parenthood against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. Concessionaire recognizes the right of state to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. D. Affirmative Action: Concessionaire shall undertake an affirmative action program as required by 14 CFR Part 152 (Airport Aid Program), subpart E (Nondiscrimination in Airport Aid Program), and the American Disabilities Act of 1990 to ensure that no person shall, on the grounds of race, creed, color, national origin, age, sex, handicap, marital status, change in marital status, pregnancy, or parenthood be excluded from participating in any employment, contracting, or leasing activities covered by 14 CFR Part 152, subpart E or the American Disabilities Act of 1990. Concessionaire assures that no person shall be excluded, on these grounds, from participating in or receiving the services or benefits of any program or activity covered by said subpart or act. Concessionaire assures that it will require its covered organizations provide assurances to State that they similarly will undertake affirmative action programs and that they will require assurances from their Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 12 of 22 suborganizations as required by 14 CFR Part 152, subpart E or the American Disabilities Act of 1990, to the same effect. Concessionaire shall comply with any affirmative action plan or steps for equal employment opportunity required by 14 CFR Part 152, subpart E, the American Disabilities Act of 1990, a part of the affirmative action program, and by any federal, state, or local agency or court, including those resulting from a conciliation agreement, consent decree, court order, or similar mechanism. Concessionaire shall use state or local affirmative action plan in lieu of any affirmative action plan or steps required by 14 CFR Part 152, subpart E, only when they fully meet the standards set forth in 14 CFR 152.409. Concessionaire shall obtain a similar assurance from its covered organizations, and to cause them to require a similar assurance of their covered suborganizations, as required by 14 CFR Part 152, subpart E. Copies of 14 CFR Part 152, subpart E, and the American Disabilities Act of 1990 are available from State. ARTICLE IX — CONSTRUCTION The Concessionaire shall obtain the written approval of the City the form of a City Building Permit (including all attachments and detailed drawings of the proposed construction) before beginning any alteration, construction, or improvement of the Premises. Any construction must be approved of in advance by the Airport Manager. The City will own all improvements made by Concessionaire at the expiration or earlier termination of this Agreement. ARTICLE X — CITY'S RIGHTS OF INSPECTION AND ACCESS A. Ins,,-:ection: The City may at all reasonable times enter and inspect the Premises or observe the Concessionaire's performance of its obligations under this Agreement or take any action that the City is obligated to take under this Agreement, or otherwise. Concessionaire shall not claim, nor shall the City allow, any abatement of fees due to the City under this Agreement if the City exercises this right. Except for an emergency, the City will take all reasonable steps to minimize interference with Concessionaire's activity on the Premises. B. Access: The City reserves the right to enter the Premises and parking areas to repair, replace, alter, install or maintain any mechanical, electrical, plumbing, heating, cooling, ventilation, fire protection, telecommunication, or other system necessary to the proper functioning of the Airport without liability to the Concessionaire for any damage to the Premises. As a result of any entry under section, the City is liable only for its own negligence and for returning the Premises to its former condition using standard materials. Any City repair, replacement, alteration, installation, or maintenance will not unreasonably interfere with the Concessionaire's use of the Premises. Nothing in this section in any way relieves the Concessionaire of any obligation to maintain the Premises. ARTICLE XI — CITY SERVICES A. Cit., Services: The City will perform the following: Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 13 of 22 1. maintain the structure of the Airport and its terminal, the roof, and exterior walls; and, 2. provide standard lighting and replacement bulbs for those fixtures outside the Premises; space heating and cooling; electricity; and air ventilation; and, 3. wash all exterior windows as well as clean and maintain the public areas at the Airport; 4. maintain the Airport's electrical, public address, plumbing, and heating systems in good condition and repair; however, the City may refuse to maintain any system installed by the Concessionaire and may charge the Concessionaire for any repair resulting from the Concessionaire's negligence (the Concessionaire shall pay the City within 30 days of the billing date for any such repair charge) and, 5. clean and maintain the parking area surface the Concessionaire is approved to use for its vehicle rental business, which work shall include snow plowing/sanding as determined by the City. At the request of the City, Concessionaire shall move all rental automobiles from the rental car parking area for the purposes of City snow plowing/sanding operations. City shall attempt to provide reasonable notice to Concessionaire of such requests. Concessionaire recognizes, however, that these requests are necessarily contingent upon weather and reasonable notice shall be understood under the conditions present. B. Hold Harmless: Concessionaire waives any claim and holds the City harmless for damages that may arise out of or result from any failure or interruption of utility services furnished by or through the City that includes, but not limited to, stoppage in electrical energy, space heating, or the failure or interruption of any public or passenger convenience. ARTICLE XII- LAWS AND TAXES A. Laws: This Agreement is subject to all regulations, including those relating to the leasing of facilities and the granting of privileges, at the Kenai Municipal Airport. At no expense to the City, Concessionaire shall comply with all federal, State of Alaska, and local laws, ordinances, regulations, and Airport rules, that are either now, or in the future, in force that may apply to the business authorized under this Agreement, for the use, care, operation, maintenance, and protection of the Airport, including matters of health, safety, sanitation, and pollution. B. Taxes: Concessionaire shall obtain all necessary licenses and permits, pay all taxes lawfully imposed on its business, and pay any other fee or charge assessed under any applicable public statute, regulation, or ordinance. C. Disputes: In any dispute between the parties, the laws of the State of Alaska will govern. If any such dispute results in a lawsuit, the parties will bring the lawsuit before the courts of the State of Alaska in the Third Judicial District in Kenai. D. Claims: Concessionaire shall promptly notify the City of any claim, demand, or lawsuit arising out of Concessionaire's rights granted or the operations authorized under Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 14 of 22 this Agreement. At the City's request, Concessionaire shall cooperate and assist in the investigation and litigation of any claim, demand, or lawsuit that affects the rights granted Concessionaire under this Agreement. ARTICLE XIII —INSURANCE A. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. B. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad -form contractual, with a per - occurrence limit of not less than $1,000,000 combined single limit. C. Worker's compensation insurance with coverage for all employees engaged in work under this Agreement or at the Premises as required by AS 23.30,045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Agreement. D. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non -owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. E. All insurance required must meet the following additional requirements: 1. All policies will be by a company/corporation currently rated "A -"or better by A.M. Best. 2. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. 3. Permittee shall request a waiver of subrogation against City from Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 4. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. 5. Evidence of insurance coverage must be submitted to City by January 1, 2024. The effective date of insurance shall be no later than January 1, 2024. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Agreement. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 15 of 22 shall submit to City evidence of insurance coverage that meets the requirements of the City. ARTICLE XIV — CANCELLATION BY CITY A. Breach of Agreement: The City may cancel this Agreement and recover possession of the Premises by giving the Concessionaire 30 days' advance written notice if any of the following events occur, unless the breach is cured within the 30 days after notice: 1. The Concessionaire does not pay any rent, fee, penalty, or other charge or does not file a CAR when due. 2. A check for any payment is returned for insufficient funds. 3. The Concessionaire uses the Premises for purposes not authorized under this Agreement. 4. A petition in bankruptcy is filed by or against the Concessionaire or by any partner, member, or shareholder holding a majority interest in Concessionaire. 5. A court enters a judgment of insolvency against the Concessionaire or against any partner, member, or shareholder holding a majority interest in Concessionaire. 6. A trustee or receiver is appointed for the Concessionaire's assets in a proceeding brought by or against the Concessionaire. 7. A lien is tiled against the Premises because of any act or omission of the Concessionaire and the lien is not removed, enjoined, or a bond of satisfaction of the lien is not posted within 60 days. 8. The Concessionaire does not operate the business authorized under this Agreement on a continuous basis without the City's advance written approval. 9. The cessation or deterioration of any service that, in the City's determination, materially and adversely affects the service the Concessionaire is required to perform under this Agreement. 10. The Concessionaire does not perform any provision or covenant under this Agreement. The City may, but is not required to, advise the Concessionaire in writing of any deficiency in maintenance of the Premises. A cancellation notice issued by the City under this Article is stayed if, within the 30-day notice period, the Concessionaire begins and continues expeditious action to cure the breach in the case of a breach, which is not reasonably curable within 30 days. The determination of "expeditious action" and "not reasonably curable" is in the Airport's sole discretion. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 16 of 22 The Concessionaire will not construe any waiver by the City of any default on the part of the Concessionaire in the performance of any provision, covenant, or condition to be performed, kept, or observed by the Concessionaire as a waiver by the City at any time thereafter of any other default or subsequent default in performance of any provision, covenant, or condition of this Agreement. After a City waiver of default in one or more instances, the City is not required to provide notice to the Concessionaire to restore or revive that time is of the essence under this Agreement. The waiver of any right or obligation under this Agreement is not effective nor binding on the Concessionaire unless it is in writing and signed on behalf of the City. B. Additional Rights of the Cit.: On termination or cancellation of this Agreement or on re-entry, the City may regain or resume possession of the Premises, may occupy the Premises, and may permit any person, firm, or corporation to enter on and use the Premises. The City may also repair or make any structural or other change in the Premises that are necessary, in the City's sole determination, to maintain the suitability of the Premises for uses similar to those granted under this Agreement without affecting, altering, or diminishing the obligations of the Concessionaire under this Agreement. The City will charge the Concessionaire the cost of these repairs and the Concessionaire will pay these charges within 30 days of the billing date. C. Ownership of Equipment and Improvements: If the City cancels or terminates this Agreement due to a Concessionaire default, excepting personal property, all of the Concessionaire's title and interest in furnishings, fixtures, equipment, and improvements installed in or adjacent to the terminal under this Agreement vest in the City. The City may use and/or dispose of these items as it sees fit. The Concessionaire will reimburse the City within 30 days of the billing date for any cost the City incurs in removing and disposing of these items. D. Survival of _Concessionaire's Obligations: If the City cancels or terminates this Agreement, all of the Concessionaire's obligations under this Agreement will survive in full force for the entire period of this Agreement. Subject to the City's obligation to mitigate damages, the fees and charges become due and payable to the City to the same extent, at the same time, and in the same manner as if no termination or cancellation had occurred. 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. E. Surrender of Possession: The Concessionaire will yield possession of the Premises to the City on the date of the termination, cancellation, or normal expiration of this Agreement promptly, peaceably, quietly, and in as good order and condition as the same now or later improved by the Concessionaire or the City, reasonable use and wear -and - tear accepted. So long as there is no uncured default of Concessionaire, the City will allow the Concessionaire a maximum of five (5) calendar days after the effective date of the expiration of this Agreement to remove all of its personal property, equipment, furniture, and fixtures from the Premises. The Concessionaire acknowledges that as part of the consideration for this Agreement, all property remaining on the Premises after these five Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 17 of 22 (5) calendar days becomes the sole property of the City. The City may remove, modify, sell, or destroy the property as it sees fit. The Concessionaire will pay the City within 30 days of the billing date for any cost the City incurs in property removal and disposal. ARTICLE XV - CANCELLATION BY CONCESSIONAIRE The Concessionaire may cancel this Agreement by giving the City 30 days' advance written notice if any of the following events occur: A. the permanent abandonment of the Airport by all passenger airlines or the removal of all passenger airline service from the Airport for a period of at least 90 consecutive days; or, B. the lawful assumption by the United States government or its authorized agent, of the operation, control, or use of the Airport, or any substantial part of the Airport, that restricts the Concessionaire from operating its business under this Agreement for a period of at least 90 consecutive days; or, C. a court of competent jurisdiction issues an injunction that prevents or restrains the use of the Airport by all airlines provided the injunction remains in force for at least 90 consecutive days. ARTICLE XVI — SUBSEQUENT CONTRACT A. Subsequent Contract Award: Concessionaire acknowledges that on the expiration, cancellation, or termination of this Agreement, the City may award any subsequent concession contract by any legal means then available to the City. B. Transition Schedule at Normal Expiration: Concessionaire understands that it is neither practical nor possible for the City to predict the exact transition schedule and procedure to best serve the needs of the traveling public and the City at the normal expiration of this Agreement. The City will provide the Concessionaire a written notice of the transition plan determined by the City to best serve the needs of the traveling public and the City at least 30 days before turning the business over to a succeeding Concessionaire. Concessionaire will diligently execute the transition plan determined by the City, abide by its time schedule, and cooperate with the City and the succeeding concessionaire in carrying out the transition plan. In any dispute between Concessionaire and the succeeding concessionaire during the transition period, Concessionaire will abide by the decision of the City. At the normal expiration of this Agreement, Concessionaire will either remove its furniture, fixtures, equipment, and improvements or sell them to the succeeding Concessionaire. If Concessionaire neither sells nor removes these items within five (5) calendar days after expiration, the City may remove, sell, modify, or destroy these items as it sees fit. The Concessionaire will reimburse the City for any cost the City incurs in removal and disposal within 30 days after the billing date. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 18 of 22 ARTICLE XVII — ASSIGNMENT OR SUBCONTRACT A. Prohibition: The Concessionaire will not mortgage, hypothecate, nor otherwise encumber or assign the concession and/or lease rights created under this Agreement, in whole or in part, without the advance written consent of the City. Any attempted assignment, mortgage, hypothecation, or encumbrance of the concession rights, or other violation of this article is void and will confer no right, title, or interest neither in nor to this Agreement, on any assignee, mortgagee, encumbrancer, pledgee, lien holder, subtenant, successor, or purchaser. B. Approval by City: The Concessionaire will submit three (3) copies of any proposed assignment or subcontract to the City for advance written approval. Each copy must bear the original notarized signature of all parties. All covenants and provisions of this Agreement extend to and bind the legal representatives, successors, and assignees of the parties. C. Merger. Consolidation, or Reorganization: The City will not unreasonably withhold its consent to an assignment of this Agreement by the Concessionaire to a corporation, limited liability company, or other legally -formed entity that results from a merger, consolidation, or reorganization of the Concessionaire to a legal entity that purchases all or substantially all of the assets of the Concessionaire or to any entity that controls or is controlled by or is under common control with the Concessionaire. For purposes of this section, "control' of any entity is deemed vested in the person or persons owning more than 50 percent of the voting power for the election of the board of directors or management of the entity. ARTICLE XVIII — GENERAL COVENANTS A. Execution by City: This Agreement is not effective until approved by the Kenai City Council and signed by the City Manager of City of Kenai, or a designated representative. B. Approval by City: The City will not unreasonably withhold any approval required under this Agreement. C. Notices: Any notice required under this Agreement must be either hand -delivered or sent by registered or certified mail, or delivered by a reliable overnight delivery service to the appropriate party at the address set forth on page one of this Agreement or to any other address that the parties subsequently designate in writing. All notice periods begin on the date the notice is hand -delivered at the address or mailed. In addition, Concessionaire shall deliver all notices permitted or required to be provided to the City under this Agreement by hand -delivered or sent by registered or certified mail to the Airport Manager, Kenai Municipal Airport, 305 N. Willow, Suite 200, Kenai, AK 99611-7792. D. Modification: The Concessionaire acknowledges that the City may modify this Agreement to meet any requirements of federal or State grants obtained by the City in order to operate and/or maintain the Airport, or in order to conform to the requirements of any revenue bond covenant to which the City of Kenai is bound, and the City may do so Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 19 of 22 without formal amendment of this Agreement. However, a modification may neither reduce the rights or privileges granted the Concessionaire under this Agreement nor cause the Concessionaire financial loss. E. Validity of Parts: The remaining parts continue in full force if a court of competent jurisdiction declares any part of this Agreement invalid. F. Radio Interference: At the City's request, the Concessionaire will discontinue the. use of any device that interferes with any government -operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. G. National Emergency: If the federal government declares a national emergency, the Concessionaire will not hold the City liable for the inability to perform any part of this Agreement resulting from the national emergency. H. No Waiver: If the City does not insist in any one or more instances on the strict performance by the Concessionaire of any provision or article under this Agreement, it is not a waiver or relinquishment for the future, but the provision or article will continue in full force. A City waiver of any provision or article in this Agreement cannot be enforced nor relied on unless the waiver is in writing and signed on behalf of the City. I. Disasters: If, in the determination of the City, fire, flood, earthquake or other casualty damages the Kenai Municipal Airport so extensively as to render the Airport or the Premises untenantable, either party may elect to terminate this Agreement with respect to the damaged facility only on 30 days' written notice to the other party. If this Agreement is terminated because of a disaster, or is reduced due to disaster at one facility, the City will prorate the fees payable under this Agreement up to the time the Airport or the Premises becomes untenantable. J. Condemnation: If any proper authority condemns the Airport, this Agreement ends on the date the Concessionaire is required to leave the Premises. The City is entitled to all condemnation proceeds; however, the City will pay the Concessionaire the portion of proceeds attributable to the fair market value of any improvements placed on the Premises by the Concessionaire, offset by any sums due to the City by Concessionaire. K. (Quiet Enjoyment: The City covenants that it has full, unencumbered title to the Kenai Municipal Airport; that it has the right and lawful authority to execute this Agreement; and that the Concessionaire will have, hold, and enjoy peaceful and uninterrupted use of the Premises. L. Entire Aareement: This Agreement, including any amendment, constitutes the entire agreement between the parties. No modification or amendment of this Agreement is effective unless in writing and signed by both parties, except as stipulated in section D of this article XVI II. M. Time: Time is of the essence in the performance of all rights and obligations of the parties to this Agreement. Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 20 of 22 WITNESS WHEREOF, the parties have set their hands and day and year as stated in the acknowledgments below CITY OF KENAI: By: Terry Eubank Its: City Manager CONCESSIONAIRE: By; Name: Its: Approved as to form: Scott Bloom City Attorney Approved as to form: David Swarner Finance Director Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 21 of 22 STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of , 2023, by Terry Eubank, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. NOTARY PUBLIC for State of Alaska My Commission Expires: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 2023, by _ _ ___ _ ., _ of _ an Alaska corporation, on behalf of the corporation. NOTARY PUBLIC for State of Alaska My Commission Expires: Non -Exclusive On -Airport Automobile Rental Concession CONCESSION AGREEMENT Page 22 of 22 s f IN TERMINAL RENTAL CAR CONCESSION Exhibit l L-geth jai CERTIFIED ACTIVITY REPORT Business Name: For the Month of: .2024 Date prepared: The Concessionaire will pay the City of Kenai the greater of the minimum guarantee or the percentage fee (10%): Minimum Guarantee* (per month): $ OR Monthly Gross Sales: $ x 10%= $ Monthly Concession Due (Enter the greater of the two amounts above): $ Additional Parking Spaces ($20.00 per space per month): No. of Spaces x $20.00 = $ Subtotal: $ Sales Tax (6% or $30, whichever is less): $ Total Amount Due {Must be paid by the 20" of the month): $ Remit to: City of Kenai 210 Fidalgo Ave. Kenai, AK 99611 Additional Information: Gross Sales Attributed to a DBE: $ Certification: I hereby certify that the above is a true statement from the records of the business named above: Name Signature Date Phone Number *When the annual guarantee is reached only the percentage fee applies Form revised January 1, 2024 W J4 U ca — � o Z ti z ca _ z n ly O w ' J J l LL: LL: lj� C6 cn In 1cm c J i I I so.n.a..vuwo wue�m�,+a+�w..w.�w��aeuasr,�nwma3 z 0 } m J W a 0 0 c� z � g