HomeMy WebLinkAbout2024-03-14 Airport Commission PacketKENAI AIRPORT COMMISSION
REGULAR MEETING
MARCH 14, 2024 – 6:00 PM
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
*Telephonic/Virtual Information on Page 2*
http://www.kenai.city
A.CALL TO ORDER
1.Pledge of Allegiance
2.Roll Call
3.Agenda Approval
B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per
speaker)
C.UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes
per speaker; thirty (30) minutes aggregated)
D.APPROVAL OF MINUTES
1.January 11, 2024 .......................................................................................... Pg. 3
2.February 8, 2024........................................................................................... Pg. 7
E.UNFINISHED BUSINESS
F.NEW BUSINESS
1.Discussion/Recommendation – Recommendations to Council for Changes to
Kenai Municipal Code Chapter 21.20 Airport Commission, and Chapter 1.90
Standards for Boards, Commissions and Committees. ................................. Pg. 9
2.Discussion/Recommendation – Recommendation to Council to Change the
Location of Airport Commission Regular Meetings to Kenai City Hall Council
Chambers………………………………………………………………………….Pg. 15
3.Discussion/Recommendation – Recommending Council Enactment of Ordinance
No. 3403-2024 - Amending Sections of Kenai Municipal Code Chapters 21.10-
Leasing and Acquisition of Airport Reserve Lands, and 22.05-Disposition of City
Lands, to Extend the Time Allowed for Private Development on City Leased Lots
and Requiring Certain Financial Assurances Prior to Lease Execution………Pg. 16
4.Discussion/Recommendation – Recommending Council Adoption of a
Resolution Authorizing the City Manager to Enter into a Restaurant Concession
Agreement for the Kenai Municipal Airport……………………………………….Pg. 33
5.Discussion/Recommendation – Recommending Council Adoption of a
Resolution Authorizing the City Manager to Enter into a Bar and Lounge
Concession Agreement for the Kenai Municipal Airport………………………..Pg. 34
G.REPORTS
1.Airport Manager .......................................................................................... Pg. 35
2.Commission Chair
3.City Council Liaison .................................................................................... Pg. 36
H.ADDITIONAL PUBLIC COMMENT
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I.NEXT MEETING ATTENDANCE NOTIFICATION – April 11, 2024
J.COMMISSION QUESTIONS AND COMMENTS
K. ADJOURNMENT
L.INFORMATIONAL ITEMS
1.Memorandum of Agreement with Greatland Consulting and Training LLC for Use
of the Alaska Regional Fire Training Facility…………………………………..Pg. 42
2.Repair and Maintenance Services Contract for Security Guard Services at the
Kenai Municipal Airport………………………………………………………….Pg. 46
3.A Special Use Permit to Rebecca Boettcher, DBA: The Fishing Grounds, LLC for
Operation of a Snack/Gift Shop Inside the Kenai Municipal Airport………...Pg. 77
Registration is required to join the meeting remotely through Zoom. Please use the link
below to register: https://us02web.zoom.us/meeting/register/tZMvc--hrDIiHtbeTi1EDuVtl7jiE0oFWUdc
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KENAI AIRPORT COMMISSION – REGULAR MEETING
JANUARY 11, 2024 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR GLENDA FEEKEN, PRESIDING
Airport Commission Meeting Page 1 of 4
January 11, 2024
ACTION MINUTES
A. CALL TO ORDER
A Regular Meeting of the Airport Commission was held on January 11, 2024, in the Kenai City Council
Chambers, Kenai, AK. Chair Feeken called the meeting to order at 6:13 p.m.
1. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Glenda Feeken, Chair Paul Minelga, Vice Chair
James Bielefeld Jacob Caldwell
Joshua Daily James Zirul
A quorum was present.
Absent:
Dan Pitts
Also in attendance were:
Derek Ables, Airport Manager
Sarah Conley, Airport Administrative Assistant
Dave Swarner, Finance Director
Henry Knackstedt, City Council Liaison
3. Election of Chair and Vice Chair
MOTION:
Commissioner Bielefeld MOVED to re-appoint Glenda Feeken as Chair. Commissioner Daily
SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
MOTION:
Commissioner Zirul MOVED to re-appoint Paul Minelga as Vice Chair. Commissioner Daily SECONDED
the motion.
VOTE: There being no objection; SO ORDERED.
4. Agenda Approval
Chair Feeken noted the following additions to the Packet:
Add Item F.4
Discussion/Recommendation – Recommending City Council Enactment
of Ordinance No. 3390-2024 - Increasing Estimated Revenues and
Appropriations in the Airport Fund to Purchase Air Service Development
Professional Services at the Kenai Municipal Airport for Costs in Excess of
Budgeted Amounts.
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Airport Commission Meeting Page 2 of 4
January 11, 2024
MOTION:
Commissioner Caldwell MOVED to approve the agenda with the requested laydown. Commissioner
Daily SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
B. SCHEDULED PUBLIC COMMENTS - None.
C. UNSCHEDULED PUBLIC COMMENTS - None.
D. APPROVAL OF ACTION MINUTES
1. December 14, 2023
MOTION:
Commissioner Daily MOVED to approve the December 14, 2023 Airport Commission action minutes.
Commissioner Zirul SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
E. UNFINISHED BUSINESS – None.
F. NEW BUSINESS
1. Discussion/Recommendation - Recommendations as Discussed During the Commission
Review Work Session Held Immediately Prior.
Commissioner Caldwell stated that during the prior work session, the documents presented in the packet
were reviewed and the Commission was given the opportunity to provide input and discuss concerns; it
was noted that this feedback would be taken into consideration by Administration when drafting changes
to bring back to the Commission at their next meeting for recommendation to Council.
2. Discussion - Schedule a Tour of the Alaska Regional Fire Training Center.
The Alaska Regional Fire Training Center Tour work session was scheduled for Saturday, January 27,
2024 at 12:00 p.m.
3. Discussion/Recommendation - First Amendment to Agreement with Tim’s Janitorial for
Janitorial Services at the Alaska Regional Fire Training Center.
MOTION:
Commissioner Bielefeld MOVED to recommend City Council approval of First Amendment to Agreement
with Tim’s Janitorial for Janitorial Services at the Alaska Regional Fire Training Center. Commissioner
Caldwell SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet, and noted that the
agreement will be month-to-month due to anticipation of using City of Kenai janitorial services in the
future.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
4. Discussion/Recommendation – Recommending City Council Enactment of Ordinance No.
3390-2024 - Increasing Estimated Revenues and Appropriations in the Airport Fund to Purchase
Air Service Development Professional Services at the Kenai Municipal Airport for Costs in Excess
of Budgeted Amounts.
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Airport Commission Meeting Page 3 of 4
January 11, 2024
MOTION:
Commissioner Bielefeld MOVED to recommend City Council enactment of Ordinance No. 3390-2024.
Commissioner Zirul SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the laydown. City Manager Eubank
clarified that this study would better represent Kenai Airport traveler data than the current FAA data.
Discussion ensued. Commissioners Feeken and Zirul spoke in support; Commissioners Bielefeld, Daily
and Caldwell spoke in opposition.
VOTE:
YEA: Feeken, Minelga, Zirul
NAY: Bielefeld, Daily
ABSTAIN: Caldwell
ABSENT: Pitts
MOTION PASSED.
G. REPORTS
1. Airport Manager – Airport Manager Ables reported on the following:
• Turnout at the Airport meet & greet event was good.
• The Airport Security Plan was updated to reflect personnel changes.
• Disadvantaged Business Enterprise goals have been updated.
• Airport Manager and Assistant completed their Airport Security Plan training and were
added to the Transportation Vetting Portal.
• Avis won the 6th annual Christmas tree contest.
2. Finance Director – Finance Director Swarner introduced himself and noted he was available for
questions.
3. Commission Chair – No report.
4. City Council Liaison – Council Member Knackstedt reported on the actions of the December 20,
2023 and January 3, 2024 City Council Meetings.
H. ADDITIONAL PUBLIC COMMENTS – None.
I. NEXT MEETING ATTENDANCE NOTIFICATION – February 8, 2024
Jacob Caldwell noted he would be absent.
J. COMMISSION QUESTIONS AND COMMENTS
K. ADJOURNMENT
L. INFORMATIONAL ITEMS
1. Admin Assistant Report: Vehicle Parking Revenue, Air Traffic Control Tower Counts, Air Carrier
Enplanements
There being no further business before the Airport Commission, the meeting was adjourned at 7:09 p.m.
I certify the above represents accurate minutes of the Airport Commission meeting of January 11, 2024.
___________________________________
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Airport Commission Meeting Page 4 of 4
January 11, 2024
Meghan Thibodeau, Deputy City Clerk
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KENAI AIRPORT COMMISSION – REGULAR MEETING
FEBRUARY 8, 2024 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR GLENDA FEEKEN, PRESIDING
Airport Commission Meeting Page 1 of 2
February 8, 2024
ACTION MINUTES
A. CALL TO ORDER
A Regular Meeting of the Airport Commission was held on February 8, 2024, in the Kenai City Council
Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:10 p.m.
1. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Glenda Feeken, Chair Paul Minelga, Vice Chair
Joshua Daily
A quorum was not present.
Absent:
James Zirul James Bielefeld
Jacob Caldwell Dan Pitts
Also in attendance were:
Derek Ables, Airport Manager
Sarah Conley, Airport Administrative Assistant
Henry Knackstedt, City Council Liaison
Terry Eubank, City Manager
Shellie Saner, City Clerk
3. Agenda Approval
B. SCHEDULED PUBLIC COMMENTS - None.
C. UNSCHEDULED PUBLIC COMMENTS
D. APPROVAL OF MINUTES
1. January 11, 2024
E. UNFINISHED BUSINESS – None.
F. NEW BUSINESS
1. Discussion/Recommendation - Recommendations to Council for Changes to Kenai Municipal
Code Chapter 21.20 Airport Commission, and Chapter 1.90 Standards for Boards, Commissions
and Committees.
2. Discussion/Recommendation – Recommendation to Council to Change the Location of Airport
Commission Regular Meetings to Kenai City Hall Council Chambers.
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Airport Commission Meeting Page 2 of 2
February 8, 2024
3. Discussion/Recommendation – Recommending Council Authorization of a Memorandum of
Agreement with Greatland Consulting and Training LLC for Use of the Alaska Regional Fire
Training Facility.
4. Discussion/Recommendation – Recommending Council Award a Repair and Maintenance
Services Contract for Security Guard Services at the Kenai Municipal Airport.
5. Discussion/Recommendation – Recommending Council Award a Special Use Permit to
Rebecca Boettcher, DBA: The Fishing Grounds, LLC for Operation of a Snack/Gift Shop Inside
the Kenai Municipal Airport.
6. Discussion – Airport Budget Goals
G. REPORTS
1. Airport Manager
2. Commission Chair
3. City Council Liaison
H. ADDITIONAL PUBLIC COMMENTS
I. NEXT MEETING ATTENDANCE NOTIFICATION – March 14, 2024
J. COMMISSION QUESTIONS AND COMMENTS
K. ADJOURNMENT
L. INFORMATIONAL ITEMS
1. Administrative Assistant Report: Terminal Vehicle Parking Revenues, Tower Airport
Operations Counts, Air Carrier Enplanements
2. Current Airport Agreements
Due to lack of a quorum, the meeting was adjourned at approximately 6:12 p.m.
I certify the above represents accurate minutes of the Airport Commission meeting of February 8, 2024.
___________________________________
Meghan Thibodeau
Deputy City Clerk
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MEMORANDUM
TO: Airport Commission
FROM: Scott Bloom, City Attorney
DATE: January 31, 2024
SUBJECT: Proposed Amendments to KMC Chapter 21.20 and KMC Chapter 1.90
On January, 11, 2024 Terry Eubank, City Manager, Shellie Saner, City Clerk, and I met with your
Commission in a work session to discuss possible code changes to KMC Chapter 21.20- Airport
Commission and KMC Chapter 1.90- Standard Procedures for Board, Commissions and
Committees, as well as other procedures (such as an annual work plan) with the goal of improving
the efficiency of your commission and making sure your valuable time as a commissioner is used
wisely.
Attached to this Memorandum in Attachment A are the code changes we discussed. The changes
are shown in legislative format. Underlined words are new suggestions while words in all caps
are suggested for removal. In addition, comments regarding each change are provided in red.
These comments are for discussion purposes only for this Commission.
If the Commission wishes to recommend Council approve the proposed amendments to code, a
motion will be needed. For example, “I move to recommend that the City Council adopt the
proposed amendments to KMC Chapter 21.20 and Chapter 1.90 as provided in attachment A”.
After the main motion has been made and seconded the subject will be before the commission
for discussion and additional amendments. If additional amendments are proposed they must be
made in the form of a motion, be seconded and voted on. Once discussion is complete and no
additional amendments are proposed, the main motion will be voted on. All proposed
amendment(s) that are approved by a majority of the Commission will be forwarded by the
Administration to the Council in the form of an Ordinance, the Ordinance will also likely include
recommended changes from other City Commissions that are relevant to their code sections.
The Administration may also recommend moving code provisions pertaining to the Airport
Commission into a different section of code, from KMC 21.20 into KMC 1.90, for organizational
purposes only, but a final recommendation on this change is still in the works. It would not have
any material effect on the Commission.
Thank you for your consideration.
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KMC Chapter 21.20, Airport Commission Page 1 of 5
The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023.
Chapter 21.20
AIRPORT COMMISSION
Sections:
21.20.005 Purpose
21.20.010 Duties and powers.
21.20.020 Qualifications.
21.20.030 Membership.
21.20.005 Purpose
The purpose of the Airport Commission is to advise the Council and administration on
issues involving the Airport and lands held for the benefit of the Airport. This proposed
new section of code is intended just to clearly state the purpose of the commission.
21.20.010 Duties and powers.
The Commission shall:
(a) [DEVELOP, ADOPT, ALTER OR REVISE, SUBJECT TO APPROVAL BY THE
CITY COUNCIL, A] Review and provide recommendations on the master plan for
the airport development . This may include: As discussed previously, these changes
reflect that the commission itself is not independently responsible for any master
plans, but that the Commission’s role to provide recommendations on such plans as
they are developed.
(1) Development of type, location and sequence of all airport terminal facilities;
(2) Development and use of all airport [AERONAUTICAL] lands. This change
reflects current practice as discussed.
[(B) OBSERVE, OVERSEE AND GUIDE IN AN ADVISORY CAPACITY, ANY
MATTERS RELATING TO USE OF AIRPORT RUNWAYS, AIRPORT TERMINAL,
AND AIRPORT AERONAUTICAL LANDS.] This change would delete this
paragraph and the new language in the paragraph below is expanded as a catchall.
([c] b) Act in an advisory capacity to the Council and the [AIRPORT MANAGER]
Administration on matters affecting the airport. This new language expands this
section a little as a catchall.
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KMC Chapter 21.20, Airport Commission Page 2 of 5
The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023.
([d] c) Make recommendations to the City Manager on the airport budget.
([e] d) Submit annually to the City Manager and Council, not less than ninety
days prior to the beginning of the budget year, a list of recommended capital
improvements, which in the opinion of the Commission, are necessary or desirable
to be constructed during the forthcoming five-year period. Such list shall be
arranged in order of preference, with recommendations as to which projects are
recommended for construction in which year. This new section reflects input on a
capital plan similar to other commissions.
21.20.020 Qualifications.
Members of the Airport Commission will conform to the requirements of the City of
Kenai Boards, Commissions, and Committees Standard Procedures as established by
KMC 1.90, except that members of the Airport Commission need not be residents of the
City of Kenai.
21.20.030 Membership.
The Commission shall comprise of seven (7) members who shall be chosen so as to
represent broadly the following areas:
(a) One member, fixed base operator (FBO).
(b) One member, lessee of airport aeronautical lands or terminal facility.
(c) One member, with expertise in Federal Aviation Administration functions.
(d) One member, representing the Civil Air Patrol.
(e) Three members, at-large, representing the business and professional
community.
(f) One non-voting member, representing ad hoc member of the Kenai City
Council.
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KMC Chapter 21.20, Airport Commission Page 3 of 5
The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023.
Chapter 1.90
STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES
Sections:
1.90.010 Creation.
1.90.020 Duties.
1.90.030 Qualifications.
1.90.040 Terms.
1.90.050 Proceedings.
1.90.060 Specific requirements of boards, commissions and committees.
1.90.010 Creation.
All boards, commissions and committees created by the Council of the City of Kenai,
[SHALL] unless otherwise specified, will consist of seven [(7)] members who shall be
nominated by the Mayor and confirmed by the City Council from applications submitted
to the City Clerk. A chair and vice-chair shall be selected annually and shall be elected
from and by the appointed members. At the organizational meeting of Council, or as
soon thereafter as practicable, the Mayor, after consultation with Council, shall
nominate Council Members as a council liaison to any board, commission or committee.
After confirmation by Council, the council liaison may attend all meetings of the board,
commission or committee. A council liaison is not a member of, and shall have no voting
power or any other rights of membership on, the board, commission or committee. The
Mayor and other Council Members may attend meetings of boards, commissions or
committees when serving as an alternate for the Council liaison, or in their capacity as
elected officials. City administrative staff shall attend and supply staff support to all
meetings of boards, commissions and committees. This change is just to reflect that the
Council on Aging can have a different number of members.
1.90.020 Duties.
(a) Members of boards, commissions and committees shall be required to
establish policies relating to their respective organization. They shall act in an
advisory capacity to City Council and administration unless otherwise specified in
the City Code. This change reflects that commission advise administration and not
just the City Council.
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KMC Chapter 21.20, Airport Commission Page 4 of 5
The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023.
(b) If the board, commission or committee has income stated within the City of
Kenai annual budget, said board, commission or committee shall work with the City
Manager to establish expenses projected for the year for approval by the City
Council.
1.90.030 Qualifications.
(a) A member of a board, commission or committee must be a resident of the City
of Kenai, unless the board, commission or committee is specifically exempted by
Council from this requirement. The member cannot be an officer or employee of the
City of Kenai. If any member should move his or her residence from the corporate
limits of the City of Kenai (if applicable), is an officer or employee of the City of
Kenai, or shall be elected or appointed as an officer or employee of the City of
Kenai, the service of such member shall terminate immediately. He or she should
be aware that he or she will serve without salary, but will be reimbursed for all
reasonable expenses incurred in connection with this service, only after approval by
Council.
(b) The Beautification Committee, and Harbor, Library, and Parks and Recreation
Commissions may at the discretion of the Council have up to two (2) non-resident
members each.
(c) The Planning and Zoning Commission may have up to one member that is not
a resident of the City if they have a controlling ownership interest in a business
physically located in the City. This provision specifically does not create a
designated seat for a non-resident.
1.90.040 Terms.
(a) A member of a board, commission or committee shall serve for a term of three
(3) years, unless the board, commission or committee is specifically exempted by
Council from this requirement. At renewal date, the Mayor, with consent of the
Council, can reappoint the member or recommend a replacement.
(b) The terms of the initial board, commission or committee member shall be
staggered so that three (3) members will be appointed for one (1) year; two (2)
members will be appointed for two (2) years; and two (2) members will be appointed
for three (3) years. Terms shall commence on January 1st of each year.
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KMC Chapter 21.20, Airport Commission Page 5 of 5
The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023.
1.90.050 Proceedings.
(a) All boards, commissions and committees will have regularly scheduled
meetings which shall be open to the public. Exceptions to the meeting requirements
shall be established by Council. Permanent records or minutes shall be kept of all
proceedings and such minutes shall record the vote of each member upon every
question. Every decision or finding shall immediately be filed in the office of the City
Clerk and shall be a public record open to inspection by any person. All acts of
boards, commissions and committees are subject to the paramount authority of the
City Council.
(b) If the commission, committee or board member shall be absent, without the
body excusing the absence for good cause, from more than one-half of all the
meetings of his or her committee, commission or board, regular and special, held
within any period of three (3) consecutive calendar months, he or she shall
thereupon cease to hold the seat. A commission, committee or board member may
not have more than three (3) excused absences during a twelve (12) month
calendar year.
(c) In all matters of parliamentary procedure, the most current edition of Robert’s
Rules of Order Newly Revised shall be applicable and govern all meetings, unless
as specified in KMC 1.15.060, motions; KMC 1.15.100, speaking; and KMC
1.15.110, voting.
(d) The responsibility of insuring that all members of boards, commissions and
committees receive a copy of the Standard Procedures of Boards, Commissions
and Committees lies with the City Clerk.
1.90.060 Specific requirements of boards, commissions and committees.
Requirements of boards, commissions and committees as set forth in KMC 1.90 are
general requirements and shall be followed to the extent that they do not conflict with
specific requirements found in code sections specifically pertaining to individual boards,
commissions and committees.
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MEMORANDUM
TO: Chair Feeken and Airport Commission Members
FROM: Derek Ables, Airport Manager
DATE: January 31, 2024
SUBJECT: Airport Commission Regular Meeting Location Change to City Hall
At the March 9, 2023 Airport Commission meeting, your commission recommended changes to
the City Council Policy 20.020 Commissions, Committees and Council on Aging Procedures. One
of the recommended changes was moving the location of Airport Commission regular meetings
from City Hall Council Chambers to the Airport Terminal Conference Room, as requested by the
Airport Manager at that time.
With the change of Airport management, the technical capabilities of the Airport Terminal
Conference Room have been reassessed and we have found City Hall Council Chambers to be
better suited for holding our commission meetings. The Airport Commission has been meeting
regularly in Council Chambers since July of 2023, so staff is recommending that the policy be
updated to reflect the commission’s current practices.
The following motion is requested:
Motion
Thank you for your consideration.
I move to recommend that the City Council amend Policy 20.020 to change the
location of Airport Commission regular meetings to Kenai City Hall Council
Chambers.
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www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
From: Derek Ables - Airport Manager
Date: March 3, 2024
Subject: - AMENDING SECTIONS OF KENAI MUNICIPAL CODE CHAPTERS
21.10- LEASING AND ACQUISITION OF AIRPORT RESERVE LANDS, AND 22.05-
DISPOSITION OF CITY LANDS, TO EXTEND THE TIME ALLOWED FOR PRIVATE
DEVELOPMENT ON CITY LEASED LOTS AND REQUIRING CERTAIN FINANCIAL
ASSURANCES PRIOR TO LEASE EXECUTION.
The City Council adopted Ordinance 2998-2018 and 3072-2019 which simplified the
application process and encouraged growth. Since then there has been an increase in lease
applications and news leases of Airport Reserve lands. Along with this there have been
more requests for extensions for completing construction.
The Airport and City are proposing amendments to the leasing policy that extends the initial
term for development from two years to three years. There would also be options for two-
one year extensions provided the applicants can show progress such as a building permit,
invoices for materials, or construction contracts. Lessees would also be required to show
financial capability to complete projects. This amendment has been discussed with existing
leaseholders who have received an extension.
Does Commission recommend Council approve Ordinance 3403-2024?
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MEMORANDUM
TO: Mayor Gabriel and Council Members
FROM: Scott Bloom
DATE: February 29, 2024
SUBJECT: Airport Lands Sectional Analysis
This memo provides a sectional analysis for the code changes in Ordinance 3403-2024.
Section 1. The changes to 21.10.040, which lays out what information is required in lease
applications for airport reserve lands, include a change to subsection (b)(3) indicating construction
of improvements on leased property ordinarily must be completed in 3 years or lease, instead of
2 years or less. Additionally, a new subsection (b) (5) is added to require that evidence of the
lessee’s financial ability to complete the project must be provided to administration as part of the
lease application package, and that this financial information will be kept confidential as allowed
by relevant law.
Section 2. This section amends 21.10.060, which describes the process for reviewing lease
applications for lands on the airport reserve, subsection (b), to describe the process for reviewing
the financial capability of the proposed lessee to complete the proposed projects. The amendment
also provides that this financial information will not be shared publicly. The changes provide that
the financial resources of the lessee will be checked administratively by the City Manager, and
will not be a part of the decision-making process of applicable advisory bodies or the City Council,
in order to protect the lessee’s financial information. Essentially in order for an application to be
deemed complete by administration and forwarded to the advisory bodies and Council, the City
Manager will need to determine that financial information provided is sufficient.
Section 3. This section amends 21.10.070(a) (c) and (d), applying the same financial resources
check, and improvement construction timeline of 3 years, instead of 2 years, to lease extensions
and renewals on airport reserve lands, similar to new lease applications.
Section 4. This section amends 21.20.080(g)(1) and (5) to again state that construction must
ordinarily be completed in 3 years (36 months) but that two, one-year extensions can be granted
by the Council, for a total of five years to complete construction on airport reserve lands. The first
one-year extension requires the lessee to show good cause and progress, such as a building
permit, proof of purchase of materials, or construction contracts with a third party, and evidence
that they still have the financial capability to complete the project. The second one-year extension
can be granted by Council if the same criteria of the first extension are met, and the lessee
provides a financial guarantee to complete the project.
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Page 2 of 2
Section 5. This section amends 22.05.025(b), making the same amendments to the initial lease
application requirements for lands outside the airport reserve, as within the airport reserve,
regarding financial resources of the lessee to complete the project and changing the timeline to
complete construction from 2 years to 3.
Section 6. This section amends 22.05.040(b) regarding lands outside the airport in the same
respects as lands on the reserve for the lease review process by administration, advisory bodies
and Council.
Section 7. This section amends 22.05.045, which guides the process for lease extensions and
renewals outside the airport reserve, to include similar language regarding financial resources of
the lessee to complete the project and describing that new improvements must be ordinarily
completed in 3 years.
Section 8. This section amends 22.05.055(f) to again change the ordinary timeline for completion
of construction of improvements on a leased lot outside the airport reserve from 2 to 3 years, and
provide the same opportunity for two, one-year extensions as described above for leases on the
airport reserve as in Section 4.
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Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
ORDINANCE NO. 3403-2024
AN ORDINANCE AMENDING SECTIONS OF KENAI MUNICIPAL CODE CHAPTERS 21.10- LEASING
AND ACQUISITION OF AIRPORT RESERVE LANDS, AND 22.05-DISPOSITION OF CITY LANDS, TO
EXTEND THE TIME ALLOWED FOR PRIVATE DEVELOPMENT ON CITY LEASED LOTS AND
REQUIRING CERTAIN FINANCIAL ASSURANCES PRIOR TO LEASE EXECUTION.
WHEREAS, Ordinance 2998-2018, and 3072-2019(Substitute) respectively amended the City’s land
leasing program for Airport Reserve and Non-Airport Reserve lands owned by the City; and,
WHEREAS, since these two ordinances became effective the local and national economies have
undergone significant change; and,
WHEREAS, additionally the City’s leasing policies expressed in these Ordinances have been tested by
the market; and,
WHEREAS, due to economic changes and the City’s recent experience with developments on leased
parcels it is in the best interest of the City to extend the initial term for development of improvements from
2 years to 3 years with the opportunity for two additional one-year extensions if certain conditions are
met; and,
WHEREAS, similarly it is in the best interest of the City to require prospective lessee’s provide reasonable
evidence to the City that they have the financial capabilities to complete the improvements proposed on
respective lease lots; and,
WHEREAS, at its regular meeting on March 14, 2024 the Airport Commission recommended the City
Council _______________ this Ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS
FOLLOWS:
Section 1. Amendment of Section 21.10.040 of Kenai Municipal Code: That Kenai Municipal Code,
Section 21.10.040-Initial lease application, is hereby amended as follows:
21.10.040 Initial lease application.
(a) All applications for lease of lands must be submitted to the City on an approved application form
provided by the City. Applications will be dated on receipt and payment of the nonrefundable
application fee as set forth in the City’s schedule of fees adopted by the City Council.
(b) The application form must include the following information:
(1) The purpose of the proposed lease;
(2) The use, nature, type and estimated cost of improvements to be constructed;
(3) The dates construction is estimated to commence and be completed (ordinarily a maximum
of [TWO (2)] three years); and
(4) A comprehensive description of the proposed business or activity intended.
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(5) Evidence showing the applicant has reasonable financial resources to complete the
proposed improvement, such as a liquidity verification letter or other document from a
financial institution. This information may be provided separately from other application
material and will be kept confidentially by City administration as allowed by law.
(c) Applications which propose a subdivision shall require the applicant to be responsible for all costs
associated with the subdivision, including but not limited to any new appraisal, engineering services,
surveying and consulting costs, unless in the sole discretion of the City Council, the City Council
determines that the subdivision serves other airport purposes. If the Council determines that other
airport purposes are served by the subdivision, the City Council may choose in its sole discretion
that the City will share in the subdivision costs with the applicant in whatever amount the City
Council determines is reasonable given the benefit to the airport.
(d) Anytime during the processing of a lease application, the City may request, and the applicant must
supply, any clarification or additional information that the City reasonably determines is necessary
for the City to make a final decision on the application.
Section 2. Amendment of Section 21.10.060 of Kenai Municipal Code: That Kenai Municipal Code,
Section 21.10.060-Lease Application review, is hereby amended as follows:
21.10.060 Lease application review.
(a) Applications shall be reviewed by City staff for:
(1) Application completeness;
(2) Conformance with municipal ordinances;
(3) Conformance with the airport layout plan, airport master plan, Federal Aviation Administration
regulations applicable to the airport, airport improvement projects, airport sponsor grant
assurances to the Federal Aviation Administration, and airport regulations and operations;
and
(4) Conformance with the comprehensive plan.
(b) Based on the initial review and staff recommendation for action, if the City Manager determines the
application is complete and the applicant has reasonable financial means to complete the proposed
improvements, the application shall be referred to the Airport Commission and the Planning and
Zoning Commission for review and comment, together with the City Manager’s recommendation for
approval or rejection. For protection of private financial information, documentation showing the
applicant has reasonable financial resources to complete the proposed improvement will be
redacted or withheld from the application when published and provided to the Airport, Planning
Commission and City Council.
(c) Notice of applications for new leases, renewals or extensions must be published in a newspaper of
general circulation within the City. The notice must contain the name of the applicant, a brief
description of the land and the date upon which any competing applications must be submitted
(thirty (30) days from the date of publication).
(d) The recommendations of the City Manager, Airport Commission and Planning and Zoning
Commission shall be brought to the City Council. The decision whether or not to lease land or
authorize a lease extension or renewal rests in the sole discretion of the City Council.
(e) The City Council may waive provisions of this chapter to lease property or interests in real property
with the United States, the state of Alaska or an Alaska political subdivision when in the judgment
of the City Council it is advantageous to the City to do so.
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(f) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the
City or the applicant is in default of a requirement of any lease or contract with the City a lease shall
not be entered into until the deficiencies are cured.
Section 3. Amendment of Section 21.10.070 of Kenai Municipal Code: That Kenai Municipal Code,
Section 21.10.070-Application for lease amendment, extension or renewal, is hereby amended as
follows:
21.10.070 Application for lease amendment, extension or renewal.
(a) A request from an existing lessee for a lease amendment, extension or renewal of the lease must
be submitted to the City on an application form provided by the City. Applications must be complete
and dated on receipt and payment of the nonrefundable application fee as set forth in the City’s
schedule of fees adopted by the City Council. All applications proposing new improvements must
include evidence showing the applicant has reasonable financial resources to complete the
proposed improvement, such as a liquidity verification letter or other document from a financial
institution. This inf ormation may be provided separately from other application material and will be
kept confidentially by City administration as allowed by law.
(b) An application for an amendment must include the following information:
(1) The purpose of the proposed amendment;
(2) The proposed change in use or activity; and
(3) A comprehensive description of the proposed business, if applicable.
(c) An application for a lease extension must include the following information:
(1) The use, nature, type and estimated cost of additional improvements to be constructed;
(2) The dates new construction is estimated to commence and be completed (ordinarily a
maximum of [TWO (2)] three years).
(d) An application for a lease renewal must include the following information:
(1) For a lease renewal of an existing lease:
(i) The use, nature, type and estimated cost of additional improvements to be
constructed;
(ii) The dates new construction is estimated to commence and be completed (ordinarily a
maximum of [TWO (2)] three years).
(2) For a lease renewal of an expiring lease:
(i) A professional estimate of the remaining useful life of the principal improvement on
the property, paid for by the applicant; or
(ii) A market value appraisal of the principal improvement on the property, paid for by the
applicant; or
(iii) The purchase price of improvements, as certified by the current lessee and the
proposed purchaser, to be in the bill of sale, to be executed at closing of the
transaction; and
(iv) The use, nature, type and estimated cost of additional improvements to be
constructed, if applicable.
(v) The dates new construction is estimated to commence and be completed (ordinarily a
maximum of [TWO (2)] three years) if applicable.
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(e) Applications for amendment, extension or renewal shall be processed in accordance with the lease
application review provisions of this chapter. The City has no obligation to amend, renew or extend
a lease and may decline to do so upon making specific findings as to why a lease renewal,
extension, or amendment is not in the best interest of the City.
Section 4. Amendment of Section 21.10.070 of Kenai Municipal Code: That Kenai Municipal Code,
Section 21.10.070-Application for lease amendment, extension or renewal, is hereby amended as
follows:
21.10.080 Length of lease term.
(a) The length of term for an initial lease shall be based on the amount of investment the applicant
proposes to make in the construction of new permanent improvements on the premises as provided
in the application. The City Council may offer a shorter lease term, if the City Council makes specific
findings that a shorter lease term is in the best interest of the City.
(b) The maximum term of an initial lease shall be determined according to the following term table:
Term Table
Applicant’s
Investment/Value
Maximum Term of
Years
$7,500 5
15,000 6
22,500 7
30,000 8
37,500 9
45,000 10
52,500 11
60,000 12
67,500 13
75,000 14
82,500 15
90,000 16
97,500 17
105,000 18
112,500 19
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Applicant’s
Investment/Value
Maximum Term of
Years
120,000 20
127,500 21
135,000 22
142,500 23
150,000 24
157,500 25
165,000 26
172,500 27
180,000 28
187,500 29
195,000 30
202,500 31
210,000 32
217,500 33
225,000 34
232,500 35
240,000 36
247,500 37
255,000 38
262,500 39
270,000 40
277,500 41
285,000 42
292,000 43
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Applicant’s
Investment/Value
Maximum Term of
Years
300,000 44
307,500 45
(c) The length of term for a lease extension shall be determined according to the term table and based
on the total amount of the investment provided in the initial lease application and the estimated cost
of additional permanent improvements as provided in the application for lease extension and
provided no extension shall extend a lease term past forty-five (45) years.
(d) The length of term for a lease renewal of an existing lease shall be determined according to the
term table and based on the total amount of the investment provided in the initial lease application
and the estimated cost of additional permanent improvements as provided in the application. The
renewal term of an existing lease pursuant to a transaction between the current lessee and a new
buyer and prospective lessee will be determined by the purchase price of permanent improvements,
as certified by the current lessee and the proposed purchaser, to be in the bill of sale, to be executed
at closing of the transaction, and the proposed additional permanent improvements, if any. The term
for renewal of an existing lease cannot exceed forty-five (45) years.
(e) The length of term for a lease renewal of an expiring lease shall be determined according to a
professional estimate of the remaining useful life of the principal improvement on the property, paid
for by the applicant or the term table and based on the following:
(1) The purchase price of real property improvements, as certified by the current lessee and the
proposed purchaser, to be in the bill of sale, to be executed at closing of the transaction; or
(2) A market value appraisal of the principal improvement on the property, paid for by the
applicant; and
(3) The estimated cost of any additional investment the applicant proposes to make in the
construction of permanent improvements on the premises as provided in the application.
(4) The term for renewal of an expiring lease cannot exceed forty-five (45) years.
(f) Before the City approves or extends the term of a lease, permit, concession, or other interest for
any use of a premises that the City has determined in writing will be needed for airport development
in the future, the City will first estimate when the premises will likely be needed for airport
development. A term or a term extension for use of those premises may not run beyond the time
that the City estimates the premises will become needed for airport development and is subject to
further extension only to the extent that need does not arise or is otherwise satisfied or deferred by
the City.
(g) If the initial lease, term extension, or lease renewal granted to the applicant requires construction
of permanent improvements, the lease or term extension shall be subject to the following conditions:
(1) The lessee to complete the proposed permanent improvements within a reasonable period
of time set by the City, considering the cost and nature of the improvements; provided,
however, that the time allowed shall not [ORDINARILY] exceed [TWENTY-FOUR (24)] 36
months after the effective date of the lease, renewal, or extension unless additional time is
approved as provided in subsection 5 below.
(2) The lessee to provide a performance bond, deposit, personal guarantee, or other security if
the City Council determines security is necessary or prudent to ensure the applicant’s
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completion of the permanent improvements required in the lease, renewal, or extension. The
City Council shall determine the form and amount of the security according to the best interest
of the City, after a recommendation by the City Manager considering the nature and scope
of the proposed improvements and the financial responsibility of the applicant.
(3) At no expense to the City, the lessee must obtain and keep in force during the term of the
lease, insurance of the type and limits required by the City for the activities on the premises.
(4) Within thirty (30) days after completion of the permanent improvements, the lessee shall
submit to the City written documentation that the improvements have been completed as
required. The City Manager shall make a report to the City Council of completion as soon as
reasonably practical.
(5) If the [APPLICANT] lessee shows good cause to the City Council, and evidence of progress
towards completion of the proposed improvements, including but not limited to a building
permit, invoices for site specific building materials, or third party contracts for construction,
as well as updated financial information as required in KMC 21.20.040(B)(5) and the City
Council determines the action is in the best interest of the City, the City Council may grant
an extension of the time [ALLOWED] initially not to exceed 12 months to complete permanent
improvements by resolution that is sufficient to allow for the completion of the permanent
improvements or for submission of documentation that the permanent improvements have
been completed. A final twelve month extension may be granted by separate resolution of
Council if the lessee meets the same criteria for the first twelve month extension and provides
a performance bond, deposit, personal guarantee or other security interest sufficient to cover
the remained of the unfinished work on the proposed improvements and Council determines
the final extension is in the best interest of the City, [NO EXTENSION OR COMBINATION
OF EXTENSIONS GRANTED SHALL EXCEED TWELVE (12) MONTHS OR CAUSE THE
TOTAL TIME ALLOWED TO COMPLETE PERMANENT IMPROVEMENTS TO EXCEED
THIRTY-SIX (36) MONTHS.]
(6) If, within the time required, the applicant fails to complete the required permanent
improvements, the City shall:
(i) If the application is for a new lease or lease renewal, execute the forfeiture of the
performance bond, deposit, personal guarantee, or other security posted by the
applicant under subsection (g)(2) of this section to the extent necessary to reimburse
the City for all costs and damages, including administrative and legal costs, arising
from the applicant’s failure to complete the required improvements, and initiate
cancellation of the lease or reduce the term of the lease to a period consistent with the
portion of the improvements substantially completed in a timely manner according to
the best interests of the City.
(ii) If the application is for a lease extension, the City shall terminate the amendment
extending the term of the lease or reduce the term of the extension at the City’s sole
discretion.
Section 5. Amendment of Section 22.05.025 of Kenai Municipal Code: That Kenai Municipal Code,
Section 22.05.025-Initial lease application, is hereby amended as follows:
22.05.025 Initial lease application.
(a) All applications for lease of lands must be submitted to the City Manager or designee on an
application form provided by the City. Applications will be dated on receipt and must include
payment of the nonrefundable application fee as set forth in the City’s schedule of fees approved
by the City Council.
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(b) The application form must include the following information:
(1) The purpose of the proposed lease;
(2) The use, nature, type, and estimated cost of improvements to be constructed;
(3) The dates construction is estimated to commence and be completed. Construction must be
completed within [TWO (2)] 3 years except in special circumstances that require a longer
period of time and which must be approved by the City Council;
(4) Evidence showing the applicant has reasonable financial resources to complete the
proposed improvement, such as a liquidity verification letter or other document from a
financial institution. This information may be provided separately from other application
material and will be kept confidentially by City administration as allowed by law.
([4]5) A comprehensive description of the proposed business or activity intended;
([5]6) Whether the applicant requests a lease with an option to purchase; and
([6]7) How the proposed lease meets the intent of this chapter.
(c) Applications which propose a subdivision shall require the applicant to be responsible for all costs
associated with the subdivision, including but not limited to any new appraisal, engineering services,
surveying and consulting costs unless, in the sole discretion of the City Council, it is determined
that the subdivision serves other City purposes.
(1) If the Council determines that other City purposes are served by the subdivision, the City
Council may choose in its sole discretion to share in the subdivision costs with the applicant
in an amount the City Council determines is reasonable given the benefit to the City.
(2) If the Council does not make a determination that other City purposes are served by the
subdivision, the applicant must submit a deposit to cover the estimated costs associated with
the subdivision.
(3) If the City enters into a lease with the applicant, any unused balance of the deposit made to
cover costs associated with subdivision will apply to the rent payable under the lease.
(4) If the City’s costs exceed the amount of any deposit made to cover costs associated with
subdivision, the applicant must pay the shortage to the City as a condition of the lease.
(5) If the application is rejected or if the applicant withdraws the application or fails to sign a lease
offered to the applicant, the City will return any unused deposit balance to the applicant.
(d) Applications for lands which have not been appraised within one (1) year of the requested starting
date of the lease require the applicant to be responsible for all costs associated with appraisal. The
cost of the appraisal shall be credited or refunded to the lessee once development is completed as
required by the lease, extension or renewal.
(e) Applications which result in a lease agreement with the City require the lessee to be responsible for
all recording costs and any other fees associated with execution of the lease including a preliminary
commitment for title insurance and fifty percent (50%) of the required costs associated with a sale
of leased land in which the lease contains an option to purchase once the minimum development
requirements have been met.
(f) Anytime during the processing of a lease application, the City may request, and the applicant must
supply, any clarification or additional information that the City reasonably determines is necessary
for the City to make a final decision on the application.
Section 6. Amendment of Section 22.05.040 of Kenai Municipal Code: That Kenai Municipal Code,
Section 22.05.040-Lease application review, is hereby amended as follows:
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22.05.040 Lease application review.
(a) Applications shall be reviewed by City staff for application completeness and conformance with City
ordinances.
(b) Based on the initial review, if the City Manager determines the application is complete and the
applicant has reasonable financial means to complete the proposed improvements, the application
shall be referred to the Planning and Zoning Commission and any other applicable commissions
for review and comment, together with the City Manager’s recommendation for approval or
rejection. The recommendation may include a recommendation for a subdivision to reduce or
enlarge a parcel to meet the intended development or use. For protection of private financial
information, documentation showing the applicant has reasonable financial resources to complete
the proposed improvement will be redacted or withheld from the application when published and
provided to the Planning Commission, other applicable commission and City Council.
(c) Notice of complete applications for new leases, renewals or extensions shall be published in a
newspaper of general circulation within the City and posted on the property. The notice must contain
the name of the applicant, a brief description of the land, whether the applicant requests a lease
with an option to purchase, and the date upon which any competing applications must be submitted
(thirty (30) days from the date of publication).
(d) The recommendations of the City Manager, Planning and Zoning Commission, and any other
applicable commissions shall be provided to the City Council. The City Council shall determine
whether the lease, renewal, amendment or extension is consistent with the intent of this chapter
and in the best interest of the City. The decision whether or not to lease land or authorize a lease
extension, renewal, amendment or assignment rests in the sole discretion of the City Council.
(e) If the applicant is in default of any charges, fees, rents, taxes, or other sums due and payable to the
City or the applicant is in default of a requirement of any lease or contract with the City a lease shall
not be entered into until the deficiencies are remedied.
Section 7. Amendment of Section 22.05.045 of Kenai Municipal Code: That Kenai Municipal Code,
Section 22.05.045-Application for lease amendment, assignment, extension or renewal, is hereby
amended as follows:
22.05.045 Application for lease amendment, assignment, extension or renewal.
(a) A request from an existing lessee for a lease amendment, assignment, extension or renewal of the
lease must be submitted to the City Manager or designee on an application form provided by the
City. Applications must be complete and dated on receipt and include payment of the nonrefundable
application fee and applicable deposit as set forth in the City’s schedule of fees adopted by the City
Council. All applications proposing new improvements must include evidence showing the
applicant has reasonable financial resources to complete the proposed improvement, such as a
liquidity verification letter or other document from a financial institution. This information may be
provided separately from other application material and will be kept confidentially by City
administration as allowed by law. Construction must be completed within 3 years except in special
circumstances that require a longer period of time and which must be approved by the City Council;
(b) An application for an amendment must include the following information:
(1) The purpose of the proposed amendment;
(2) The proposed change in use or activity, if any;
(3) A comprehensive description of the proposed business or activity, if applicable; and
(4) How the proposed amendment meets the intent of this chapter.
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(c) An application for a lease assignment must include the following:
(1) The name of the individual or legal entity to which the lessee requests to assign the lease.
(d) An application for a lease extension must include the following information:
(1) The use, nature, type and estimated cost of additional improvements to be constructed;
(2) The dates new construction is estimated to commence and be completed; and
(3) How the proposed lease extension meets the intent of this chapter.
(e) An application for a lease renewal must include the following information:
(1) For a lease renewal of an existing lease:
(i) The use, nature, type and estimated cost of additional investment in the construction
of new permanent improvements;
(ii) The dates new construction is estimated to commence and be completed;
(iii) If the renewal is pursuant to a transaction between the current lessee and a new buyer
and prospective lessee, the estimated purchase price of real property improvements
on the premises as certified by the current lessee and proposed purchaser in a bill of
sale or purchase agreement dated within one (1) year of the requested starting date
of the renewal; and
(iv) How the proposed lease renewal meets the intent of this chapter.
(2) For a lease renewal of an expiring lease:
(i) A fair market value appraisal of the existing principal improvement on the property,
paid for by the applicant, and the estimated cost of any additional investment in the
construction of permanent improvements on the premises, if applicable;
(ii) If the renewal is pursuant to a transaction between the current lessee and a new buyer
and prospective lessee, the estimated purchase price of existing real property
improvements, as certified by the current lessee and the proposed purchaser in a bill
of sale or purchase agreement dated within one (1) year of the requested starting date
of the renewal, and the estimated cost of any additional investment in the construction
of permanent improvements on the premises, if applicable;
(iii) If the renewal is based on a professional estimate of the remaining useful life of the
real property improvements on the premises, the estimated value dated within one (1)
year of the requested starting date of the renewal and how it was determined;
(iv) The use, nature, type and estimated cost of any additional improvements to be
constructed, if applicable;
(v) The dates any new construction is estimated to commence and be completed; and
(vi) How the proposed lease meets the intent of this chapter.
(f) Applications for amendment, assignment, extension or renewal shall be processed in accordance
with the lease application review provisions of this chapter, except that applications for assignment
shall not be referred to the Planning and Zoning Commission. The City has no obligation to amend,
assign, renew or extend a lease and may decline to do so upon making specific findings as to why
a lease amendment, assignment, renewal, or extension is not in the best interest of the City.
Section 8. Amendment of Section 22.05.055 of Kenai Municipal Code: That Kenai Municipal Code,
Section 22.05.055-Length of lease term, is hereby amended as follows:
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22.05.055 Length of lease term.
(a) The length of term for an initial lease shall be based on the amount of investment the applicant
proposes to make in the construction of new permanent improvements on the premises as provided
in the application. The City Council may offer a shorter lease term, if the City Council makes specific
findings that a shorter lease term is in the best interest of the City.
(b) The maximum term of a lease shall be determined according to the following term table and cannot
exceed forty-five (45) years:
Term Table
APPLICANT’S
INVESTMENT/VALUE
MAXIMUM TERM
OF YEARS
$7,500 5
15,000 6
22,500 7
30,000 8
37,500 9
45,000 10
52,500 11
60,000 12
67,500 13
75,000 14
82,500 15
90,000 16
97,500 17
105,000 18
112,500 19
120,000 20
127,500 21
135,000 22
142,500 23
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APPLICANT’S
INVESTMENT/VALUE
MAXIMUM TERM
OF YEARS
150,000 24
157,500 25
165,000 26
172,500 27
180,000 28
187,500 29
195,000 30
202,500 31
210,000 32
217,500 33
225,000 34
232,500 35
240,000 36
247,500 37
255,000 38
262,500 39
270,000 40
277,500 41
285,000 42
292,500 43
300,000 44
307,500 45
(c) Lease Extension. The length of term for a lease extension shall be determined based on the
remaining term of the initial lease and the estimated cost of new investment the applicant proposes
to make in the construction of new permanent improvements on the premises according to the term
table and provided no extension shall extend a lease term past forty-five (45) years.
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(d) Lease Renewal for an Existing Lease. A renewal for an existing lease requires the construction of
new permanent improvements, and the length of term for a lease renewal for an existing lease shall
be determined as follows:
(1) Based on the remaining term of the initial lease according to the term table and the estimated
cost of new investment the applicant proposes to make in the construction of new permanent
improvements on the premises according to the term table; or
(2) Pursuant to a transaction between the current lessee and a new buyer and prospective
lessee and based on the purchase price of existing real property improvements on the
premises, as certified by the current lessee and the proposed purchaser in the bill of sale or
purchase agreement, to be executed at closing of the transaction and the estimated cost of
new investment in the construction of new permanent improvements on the premises
according to the term table.
(3) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(e) Lease Renewal for an Expiring Lease. The length of term for a lease renewal of an expiring lease
shall be determined as follows:
(1) The purchase price of existing real property improvements on the premises, as certified by
the current lessee and the proposed purchaser in the bill of sale or purchase agreement, to
be executed at closing of the transaction and the estimated cost of any new investment in
the construction of new permanent improvements on the premises according to the term
table; or
(2) A professional estimate of the remaining useful life of the real property improvements on the
premises, paid for by the applicant, and the estimated cost of any new investment in the
construction of new permanent improvements on the premises according to the term table;
or
(3) A fair market value appraisal of the existing real property improvements on the premises,
paid for by the applicant, and the estimated cost of any new investment in the construction
of new permanent improvements on the premises according to the term table.
(4) The term for renewal of an existing lease cannot exceed forty-five (45) years.
(f) If the initial lease, term extension, or lease renewal granted to the applicant requires construction
of new permanent improvements, the lease or term extension shall be subject to the following
conditions:
(1) The lessee to complete the proposed permanent improvements within [TWO (2)] 3 years
except in special circumstances that require a longer period of time and which must be
approved by the City Council[,] in the initial lease or unless additional time is approved after
the lease is executed as provided in subsection 5 below.
(2) The lessee to provide a performance bond, deposit, personal guarantee, or other security if
the City Council determines security is necessary or prudent to ensure the applicant’s
completion of the permanent improvements required in the lease, renewal, or extension. The
City Council shall determine the form and amount of the security according to the best interest
of the City, after a recommendation by the City Manager considering the nature and scope
of the proposed improvements and the financial responsibility of the applicant.
(3) At no expense to the City, the lessee must obtain and keep in force, during the term of the
lease, insurance of the type and limits required by the City for the activities on the premises.
(4) Within thirty (30) days after completion of the permanent improvements, the lessee shall
submit to the City written documentation that the improvements have been completed as
required. The City Manager shall make a report to the City Council of completion as soon as
reasonably practical.
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(5) If the [APPLICANT] lessee shows good cause and evidence of progress towards completion
of the proposed improvements, including but not limited to building permits, invoices for site
specific building materials, or third party contracts for construction, as well as updated
financial information as required in KMC 22.05.25(b)(4) and the City Council determines the
action is in the best interest of the City, the City Council may grant an extension of the time
initially not to exceed 12 months [ALLOWED] to complete permanent improvements by
resolution that is sufficient to allow for the completion of the permanent improvements or for
submission of documentation that the permanent improvements have been completed. A
final twelve-month extension may be granted by separate resolution of Council if the lessee
meets the same criteria for the first twelve-month extension and provides a performance
bond, deposit, personal guarantee or other security interest sufficient to cover the remained
of the unfinished work on the proposed improvements and Council determines the final
extension is in the best interest of the City.
(6) If, within the time required, the applicant fails to complete the required permanent
improvements, the City shall:
(i) If the application is for a new lease or lease renewal, execute the forfeiture of the
performance bond, deposit, personal guarantee, or other security posted by the
applicant under subsection (f)(2) of this section to the extent necessary to reimburse
the City for all costs and damages, including administrative and legal costs, arising
from the applicant’s failure to complete the required improvements, and/or initiate
cancellation of the lease or reduce the term of the lease to a period consistent with the
portion of the improvements substantially completed in a timely manner according to
the best interest of the City.
(ii) If the application is for a lease extension, the City shall terminate the amendment
extending the term of the lease or reduce the term of the extension at the City’s sole
discretion.
Section 9. Severability: That if any part or provision of this ordinance or application thereof to any
person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall
be confined in its operation to the part, provision, or application directly involved in all controversy in
which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder
of this title or application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part, provision, or
application.
Section 10. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days
after enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 20TH DAY OF MARCH, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
Introduced: March 6, 2024
Enacted: March 20, 2024
Effective: April 19, 2024
32
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
From: Derek Ables - Airport Manager
Date: March 7, 2024
Subject: - Lease for Restaurant Concession at the Kenai Municipal Airport.
Proposals for Restaurant were due on March 1, 2024. The proposals will be reviewed and
evaluated. A laydown memo with a recommendation will be provided at the commission
meeting on March 14, 2024.
33
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
From: Derek Ables - Airport Manager
Date: March 7, 2024
Subject: - Lease for Bar/Lounge Concession at the Kenai Municipal Airport.
Proposals for the bar/lounge were due on March 1, 2024. The proposals will be reviewed
and evaluated. A laydown memo with a recommendation will be provided at the commission
meeting on March 14th, 2024.
34
MEMORANDUM
TO: Airport Commission
FROM: Derek Ables, Airport Manager
DATE: March 5, 2024
SUBJECT: Airport Mid-month Report February 2024
Alaska Regional Fire Training Facility – The Airport Operations and Management met
with Alpine Metal Tech to inspect the props at the facility. The safety issues were
corrected and it is available for training. Public works also came out and assisted with
their steam truck to open up drains. The Airport is getting a quote on maintaining and
inspecting the props annually.
Airport Leakage Study- The Airport met with Volaire to finalize plans for the leakage study.
Volaire has been very responsive and we are moving forward with the study. The overall
response from people that visit the airport office has been excitement.
In-house Activities
• The RFP process took place throughout February for the Restaurant and Bar. A
meeting was held for potential lessees, and Airport staff reached out to local
businesses to propose.
• Airport Operations began working with the Airport tenants to schedule ramp
driver training. This will increase the safety on the airport, reiterate the rules, and
hopefully prevent accidents from occurring.
• The Airport, Public works, HDL, and Finance met the FAA at our monthly
meeting to discuss deadlines for grants and environmental documents for
$54,000,000 in projects scheduled through 2027.
35
Kenai City Council - Regular Meeting Page 1 of 4
February 21, 2024
Kenai City Council - Regular Meeting
February 21, 2024 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
**Telephonic/Virtual Information on Page 3**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the council
and will be approved by one motion. There will be no separate discussion of these items unless a
council member so requests, in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
1. John Williams, CIRCAC Reappointment
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. ENACTED AS AMENDED UNANIMOUSLY. Ordinance No. 3391-2024 - Amending the
Imagine Kenai 2030 Comprehensive Plan Land Use Plan Map for Certain Parcels from
Industrial to Mixed-Use. (Knackstedt)
2. POSTPONED TO MARCH 20, 2024. Ordinance No. 3392-2024 - Amending the Kenai Zoning
Code to Add a New Zoning District, Working Waterfront (WW) and Amending the Official Zoning
Map for Certain Parcels from Heavy Industrial (IH) to Working Waterfront (WW) or Conservation
(C) Zoning District. (Knackstedt)
3. ENACTED UNANIMOUSLY. Ordinance No. 3393-2024 - Accepting and Appropriating
Donations to the Kenai Animal Shelter for the Care of Animals. (Administration)
4. ENACTED UNANIMOUSLY. Ordinance No. 3394-2024 - Increasing Estimated Revenues and
Appropriations in the General Fund to Provide Supplemental Funding to the Street Lights Repair
and Maintenance Operational Budget. (Administration)
5. FAILED TO ENACT. Ordinance No. 3395-2024 - Increasing Estimated Revenues and
Appropriations in the General Fund for Radio Advertising and Approving Council Policy 20.030-
Radio Advertising for Public Meetings and Elections. (Douthit)
36
Kenai City Council - Regular Meeting Page 2 of 4
February 21, 2024
6. ENACTED UNANIMOUSLY. Ordinance No. 3396-2024 - Amending Kenai Municipal Code
4.31.015 - Local Amendments to the 2009 International Fuel Gas Code for Housekeeping
Purposes. (Administration)
7. ENACTED UNANIMOUSLY. Ordinance No. 3397-2024 - Increasing Estimated Revenues and
Appropriations in the Water Sewer Capital Project Fund for the Cemetery Creek Culvert
Replacement Project and Accepting a Donation from the Kenai Foundation in Support of the
Project. (Administration)
8. ENACTED AS AMENDED UNANIMOUSLY. Ordinance No. 3398-2024 - Amending Kenai
Municipal Code Title 6 - Elections, to Enhance Consistency, Promote Efficiencies and Make
Housekeeping Changes. (City Clerk)
9. ENACTED UNANIMOUSLY. Ordinance No. 3399-2024 - Awarding a Service Contract for
Airport Security Guard Services at The Kenai Municipal Airport and Increasing Estimated
Revenues and Appropriations in the Airport Fund for Costs in Excess of Budgeted Amounts.
(Administration) [KMC 1.15.070(d)]
1. Motion for Introduction
2. Motion for Second Reading (Requires a Unanimous Vote)
3. Motion for Enactment (Requires Five Affirmative Votes)
F. MINUTES
1. *Regular Meeting of February 7, 2024. (City Clerk)
G. UNFINISHED BUSINESS
1. POSTPONED TO MARCH 6, 2024. Resolution No. 2024-05 - Amending the Employee
Classification Plan by Reclassifying the Public Works Building Official/Manager to a Building
Official and Adjusting the Range for this Class. (Administration) [At the 02/07/24 Council
Meeting, this item was postponed to 02/21/24]
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Authorizing a Memorandum of Agreement with Greatland Consulting and
Training LLC. for Use of the Alaska Regional Fire Training Facility. (Administration)
3. *Action/Approval - Special Use Permit to Rebecca Boettcher, DBA: The Fishing Grounds, LLC
for Operation of a Snack/Gift Shop Inside the Kenai Municipal Airport. (Administration)
4. *Action/Approval - Confirmation of Mayoral Nomination of John Williams for Appointment as
City of Kenai Representative to the Cook Inlet Regional Citizens Advisory Council Board.
(Mayor Gabriel)
5. *Action/Approval - Non-Objection to the Renewal of a Limited Marijuana Cultivation Facility
License for Grateful Bud LLC, DBA Grateful Bud LLC - License No. 16474. (City Clerk)
6. *Ordinance No. 3400-2024 - Increasing Estimated Revenues and Appropriations in the Airport
Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to the City’s
Airport Fund. (Administration)
7. *Ordinance No. 3401-2024 - Increasing Estimated Revenues and Appropriations in the
General Land Sale Permanent Fund to Transfer Earnings in Excess of Budgeted Amounts to
the City’s General Fund. (Administration)
37
Kenai City Council - Regular Meeting Page 3 of 4
February 21, 2024
8. APPROVED UNANIMOUSLY. Action/Approval - Special Use Permit to Nilchil Solutions, LLC
for an Off-Premise Sign on City-Owned Property Described as Tract B, Gusty Subdivision
Addition No. 2 Located at 11631 Kenai Spur Highway. (Administration)
9. SCHEDULED FOR APRIL 3, 2024 @ 4:30 P.M. Discussion/Action - Scheduling a Work
Session for the Purpose of Discussing the Emergency Services Facility Improvements as
Presented in the CIP Plan. (Administration)
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
J. REPORT OF THE MAYOR
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
38
Kenai City Council - Regular Meeting Page 4 of 4
February 21, 2024
Registration is required to join the meeting remotely through Zoom. Please use the link below to
register:
https://us02web.zoom.us/meeting/register/tZcpdeuuqD4tH9wl8B9r7lU7fz6tyI1FS9Bl
39
Kenai City Council - Regular Meeting Page 1 of 2
March 06, 2024
Kenai City Council - Regular Meeting
March 06, 2024 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
**Telephonic/Virtual Information on Page 2**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the council
and will be approved by one motion. There will be no separate discussion of these items unless a
council member so requests, in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
1. ENACTED WITHOUT OBJECTION. Ordinance No. 3400-2024 - Increasing Estimated
Revenues and Appropriations in the Airport Land Sale Permanent Fund to Transfer Earnings in
Excess of Budgeted Amounts to the City’s Airport Fund. (Administration)
2. ENACTED WITHOUT OBJECTION. Ordinance No. 3401-2024 - Increasing Estimated
Revenues and Appropriations in the General Land Sale Permanent Fund to Transfer Earnings
in Excess of Budgeted Amounts to the City’s General Fund. (Administration)
F. MINUTES
1. *Regular Meeting of February 21, 2024. (City Clerk)
G. UNFINISHED BUSINESS
1. ADOPTED WITHOUT OBJECTION. Resolution No. 2024-05 - Amending the Employee
Classification Plan by Reclassifying the Public Works Building Official/Manager to a Building
Official and Adjusting the Range for this Class. (Administration) [On 02/07/24 Postponed to
02/21/24; On 02/21/24 Postponed to 03/06/24]
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
40
Kenai City Council - Regular Meeting Page 2 of 2
March 06, 2024
2. *Ordinance No. 3402-2024 - Accepting and Appropriating a Donation to the Kenai Community
Library for Library Materials, Programming, Furniture and Shelving. (Administration)
3. *Ordinance No. 3403-2024 - Amending Sections of Kenai Municipal Code Chapters 21.10 -
Leasing and Acquisition of Airport Reserve Lands, and 22.05 - Disposition of City Lands, to
Extend the Time Allowed for Private Development on City Leased Lots and Requiring Certain
Financial Assurances Prior to Lease Execution. (Administration)
I. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
J. REPORT OF THE MAYOR
1. Mayor Recognition - Thanking Bob Peters for 30-Years of Service to the City of Kenai.
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
N. PENDING ITEMS
1. Ordinance No. 3392-2024 - Amending the Kenai Zoning Code to Add a New Zoning District,
Working Waterfront (WW) and Amending the Official Zoning Map for Certain Parcels from
Heavy Industrial (IH) to Working Waterfront (WW) or Conservation (C) Zoning District.
(Knackstedt) [On 02/21/24 this item was postponed to 03/20/24.]
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City’s website at www.kenai.city. Copies of
resolutions and ordinances are available at the City Clerk’s Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk’s Office at 907-283-8231.
Registration is required to join the meeting remotely through Zoom. Please use the link below to
register:
https://us02web.zoom.us/meeting/register/tZwtd-2orD8oEta33knLcI2JxQATeGQyaNn7
41
Memorandum of Agreement
between
The City of Kenai
And
Greatland Consulting and Training LLC
1461 Northview Dr. Unit 1-7
Anchorage, Alaska 99504
This Memorandum of Agreement between the City of Kenai (hereinafter referred to as the
"Airport"), and Greatland Consulting and Training LLC (hereinafter referred to as "GCT').
PURPOSE
The purpose of this agreement is to allow the Airport, and GCT to work cooperatively to ensure
the Alaska Regional Aircraft Fire Training Center (Fire Training Center) remains viable to meet
required Federal Aviation Regulations for Aircraft Rescue Firefighting at certificated airports in
Alaska. The Airport is the owner of the Fire Training Center and is responsible for the operation
and maintenance in accordance with FAA grant assurances.
OBJECTIVES
• Ensure certificated airports in Alaska are able to complete initial and annual recurrent
ARFF training.
• Operate and maintain the Fire Training Center in accordance with FAA grant assurances.
• Formalize policies and procedures surrounding the use of the Fire Training Center.
• Establish rates and fees to ensure the operation of Fire Training Center is sustainable.
• Encourage other stakeholders to utilize the Fire Training Center in conjunction with GCT.
WITNESSETH:
WHEREAS, it is the purpose of the Alaska Regional Aircraft Fire Training Center to provide the
facilities required for certificated airports in Alaska to meet initial and annual recurrent training
requirements under applicable Federal Aviation Regulations; and,
WHEREAS, GCT has been awarded a contract by the State of Alaska, Statewide Aviation Division
to provide Aircraft Rescue Firefighting training for the employees of State operated airports;
and,
WHEREAS, it is mutually beneficial for the Airport and GCT to enter into a cooperative
agreement that facilitates Aircraft Rescue Firefighting training at the Fire Training Center.
NOW THEREFORE. In consideration of the mutual benefits which will accrue to the Airport and
GCT, the parties agree as follows:
42
I. AUTHORIZATION: The Airport, and GCT agree to work cooperatively in operation of
the Fire Training Center to facilitate ARFF training requirements set forth by Federal
Regulations for certificated airports for the Calendar year 2024.
11. AIRPORT, AND GCT RESPONSIBILITIES: For the periods set forth above, the
a. Airport will:
A. When no preexisting scheduling conflicts exist, provide GCT use of the
Alaska Fire Training Center training room(s), ARFF training props, ARFF
vehicles, ARFF training prop controls, and breathing air containment fill
station.
B. Maintain the facility, including props in good working order. Airport is
not responsible for any training delays or lost profits due to prop or
other facility equipment breakdowns. GCT and Airport understand and
acknowledge that prop repairs often require service from out-of-state
personnel with limited availability.
C. Establish rates & fees for use of the Alaska Fire Training Center that
ensure operation and maintenance of the Fire Training Center is
sustainable.
b. GCTwill:
A. Schedule use of the Fire Training Center with Airport Administration.
B. Provide for, or contract with qualified instructors approved by the
Airport for ARFF training.
C. Provide prompt notice to the Airport of needed maintenance to the
Alaska Fire Training Center facility, ARFF training props and controls,
ARFF vehicles, and breathing air containment fill station.
D. Ensure all trainees are equipped with all necessary Personal Protection
Equipment.
E. Assume responsibility for any damage to Fire Training Center property
(real and personal), caused by its officers, employees, contractors,
customers or agents, and that occurs during the course of training
activities and notify the Airport of any damage as soon as practicably
feasible.
F. Provide certified activity reports of all training activities on a form
provided by the Airport with the payment of all rates and fees.
G. Pay established rates & fees for use of the Alaska Fire Training Center
that ensure operation and maintenance of the Fire Training Center is
sustainable no later than 30 days upon the completion of the training.
H. Pay for actual costs of all ARFF training consumables, to include but not
limited to: propane, nitrogen, training smoke oil, vehicle fuel, etc.
MOA between The City of Kenai and Greatland Consulting and Training LLC Page 2 of 4
43
Season Course Min.# of Students Rate per Studenf
' Amual Live Fl'e1Refresher 8 400.00 .a
E Ill .,
Q, 40 hour BaSIC ARFF 8 600.00 Ill
C/1 .
>,
40 hour Mvar..:ed ARFF 8 60000 • :&
.:
Cl.
Annual Live Fire/Refresher 12 40000
~
I .. 40 hour Bas ic ARFF 12 600.00 II .a
0
1S 40 hour Advanced ARFF 12 60000 0
Rate tndudes use of training dassroom. AP.Cf trammg props. a11d ARFF veh,ctes. Rate exdudes Ille
cost of luels ana ancdlar, consumables require~ 10 operate 1tamm9 props am! equipment (Propane.
Nitrogen Tramin9 Smoke 0,1. Fuel. etc l
Ill. PERIOD OF PERFORMANCE
The period of performance for this agreement is for the Calendar Year 2024. While
the Airport and GCT reserve the right to terminate this Agreement, at any time upon
thirty days written notice without the necessity of any legal process, the Airport and
GCT agree to hold a meeting prior to termination discussing the reasons for
termination.
IV. CONTACTS
A. For the Airport: Derek Ables, Airport Manager, Kenai Municipal Airport, 305 N.
Willow Street, Suite 200, Kenai, AK 99611, dables @kenai.city, 907.283.8282.
B. For GCT: Bob Lee, Owner/Operator, Greatland Consulting and Training LLC, 1461
Northview Dr. Unit 1-7, Anchorage, Alaska 99504,
bobleeakconsulting@g maiI.com, 907 .297 .9141.
V. SPECIAL PROVISIONS
A. The scope and other terms of the agreement may be modified at any time by
mutual consent of the signatory parties.
B. Subject to Section 11.(b)(E) above, the parties to this agreement agree to be
responsible for damages to their own property and injuries to their own
employees/volunteers, except for damages/injuries caused by the other party,
their agents, contractors, or officers.
C. This MOA may be modified or amended as necessary upon written consent of all
parties or may be terminated by either party with a 30-day written notice to all
other parties.
VI. INSURANCE
GCT, independently or through its contractors shall obtain and maintain insurance,
in amounts not less than those listed below, by insurance companies with
acceptable industry ratings, so long as such company is not barred from insuring City
assets. All policies or endorsements shall, where possible, name the City as an
MOA between The City of Kenai and Greatland Consulting and Training LLC Page 3 of 4
44
AGREEMENT FOR AIRPORT SECURITY GUARD SERVICES
THIS AGREEMENT is made this_ day of __ 2024, by and between the CITY
OF KENAI (Owner or City), 210 Fidalgo Avenue, Kenai, AK 99611-7794, and Guardian
Security Systems, Inc. (Contractor), ADDRESS 2600 Seward highway, Anchorage, Alaska,
99503.
WHEREAS , Owner desires to contra~t for security guard service;;:s for the Kenai
Municipal Airport (Facilities); and,
WHEREAS, Owner and Contractor agree to the t~rms and conditions under which
Contractor shall provide such services and both Owner and Contractor desire to contract for
the provision of s~ch services by Contractor.
NOW, THEREFORE, the parties hereto agree as follows:
1. Term. The term of this Agreement shall begin on February 29, 2024, and end
on February 28, 2025.
2. Extension. This Agreement may be extended for four successive one-year
terms by mutual written consent of Owner and Contractor.
3. Facility and Services.
A. Contractor shall provide the services described in Sections 2 and 3 included in
the Instruction to Proposers attached hereto as Exhibit A and incorporated herein by
reference. Contractor shall provide and perform for Owner the services described in this
Agreement seven days per week.
Draft Agreement for Security Guard Services
Page 1 of 17
49
4. Payment. In exchange for performance of security guard services provided
hereunder, Owner shall pay Contractor for services rendered at the rate of $46.00 per hour.
Owner guarantees a minimum payment of that rate for 35 hours per week, provided
Contractor actually provides those services. Contractor is expected to perform all security
services as set forth above in those 35 hours per week. If Owner adds patrolled service areas,
Owner shall authorize an adjustment in the number of hours in writing, subject to the
minimum guarantee.
Invoices for services performed by Contractor must be received by Owner no later
than five working days following the end of the month during which Contractor performed
the services. Invoices must be sent to: Airport Administrative Office, 305 N. Willow St. Ste.
200, Kenai, AK 99611. Payment will be due from Owner to Contractor within thirty days
after Contractor has submitted Contractor's invoice for services to Owner.
5. Administrator; Designated Representative. The Airport Manager will act
as Contract Administrator (Administrator) to act on the City's behalf. Contractor is
responsible for prompt attention to any defective work pointed out by the Administrator. At
the request of the Administrator, Contractor shall meet with the Administrator at least twice
each calendar month to conduct an inspection of the Facility and to discuss performance.
Contractor must supply Owner with the contact name and telephone number of
Contractor's designated representative in writing on or before February 29, 2024. Contractor
is responsible for the performance of the services required under this Agreement, and for the
direct supervision of Contractor's personnel, through its designated representative. Such
representative shall, in tum, be available at all reasonable times to report and confer with the
Draft Agreement for Security Guard Services
Page2of17
50
Owner with respect to the services. Contractor must provide Owner with a telephone and/or
an answering service number through which Owner can contact the designated representative
24 hours per day. Should the designated representative be away from the City of Kenai or be
otherwise unable to respond to Owner, Contractor shall designate a new or temporary
representative who shall be empowered to act for Contractor and provide Owner with this
contact information.
6. Independent Contractor; No Agency. Contractor's relationship with Owner
is that of an independent contractor with the authority to control and direct the performance .. '
of details of the services that are tl?.e subject of this Agreement. Nothing contained in this
Agreement may be construed to create an agency, partnersh~p, joint venture, or employee-
• '
employer relationship between Owner and Contra~tor. Contractof is not the agent of Owner
and Contractor is not authorized to make any representation, ·contract, or commitment on
behalf of Owner.
7. Contractor's Personnel Payment and Supervision.
A. All personnel furnished by Contractor must be employees of Contractor.
Contractor must pay al\ taxes, salaries, and expenses of each employee, including but not
limited to payment of all federal social security taxes, federal and state unemployment taxes,
and any payroll taxes relating to such employees.
B. The manner in which the services contracted for hereunder are to be
performed are determined by the Contractor. Contractor agrees that the services provided
under this Agreement must only be performed by qualified, careful, and efficient employees
in strict conformity with the best practices and highest applicable standards.
Draft Agreement for Security Guard Services
Page3 of 17
51
,-
1
C. It is the Contractor's duty to train its employees in order to provide the
services required. Contractor will furnish the Administrator a list of the names, addresses
and telephone numbers of Contractor's employees working under this Agreement and shall
provide Owner with updates of this list as information changes.
D. Owner may require removal from the Facility those employees of Contractor
whose presence is deemed incompetent, insubordinate or otherwise objectionable, or whose
continued employment and presence at the Facility is contrary to the public interest or
inconsistent with the best interest of Owner.
8. Insurance.
A. Throughout the term of this Agreement Contractor shall, at its own expense,
secure and keep in force insurance as stated below.
i. Comprehensive general liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual coverage with a per
occurrence limit of not less than ONE MILLION DOLLARS ($1,000,000) combined single
limit.
ii. Worker's Compensation insurance with coverage for all employees engaged
in work under this Agreement as required by AS 23.30.045.
111. Comprehensive automobile liability insurance covering all owned, hired, and
non-owned vehicles with coverage limits not less than $250,000 combined single limit per
occurrence.
Where specific limits are stated, the limits are the mmrmum acceptable limits. If
Contractor's insurance policy contains higher limits, Owner is entitled to coverage to the
extent of the higher limits.
B. All insurance required by this paragraph 8 shall meet the following requirements:
1. for comprehensive general liability and automobile liability msurance,
name the City of Kenai as an additional insured; and,
Draft Agreement for Security Guard Services
Page4 of17
52
11. for worker's compensation insurance, general liability and automobile
liability insurance include a waiver of subrogation so that the insurer
waives all rights of subrogation against the City of Kenai for payments
made under the policy; and,
111. provide Owner with at least 30 days' _notice before any termination,
cancellation, or material change in insurarice coverage is effective; and,
iv. be issued by a company/corporati~n currently rated "A-"or better by A.M.
Best.
C. Contractor must submit to Owner proof of insurance coverage in the form of
insurance policies, certificates, endorsements, oi: a combination thereof, arid signed by a
person authorized by the insurer to bind coverage mi' its behalf. The effective date of the
insurance will be no later than the effective date of this Agr~ement.
D. The indemnification and insurance coverage requiren_ients stated in this
paragraph 8 and in p~ragraph 9, below, do no,t relieve Contractor of any other obligation
under this Agreement.
E. Owner m~y increase the amount or revise the type of required insurance on
written demand without requiring amendments to this Agreement. Owner will base any
increase or revision on reasonable and justifiable grounds. Within two weeks of the written
demand, Contractor shall submit to Owner evidence of insurance coverage that meets the
requirements of Owner.
9. Indemnification. The contractor shall indemnify, defend, and hold harmless
the contracting agency from and against any claim of, or liability for, negligent acts, errors,
and omissions of the Contractor under this agreement. The contractor is not required to
indemnify, defend, or hold harmless the contracting agency for a claim of, or liability for, the
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10. Complaints; Charges. If the Administrator provides complaints regarding
security guard services to Contractor's designated representative, Contractor shall act on the
complaint within twenty-four hours, or if urgent, on the same day the complaint is delivered
to Contractor. If the deficiencies are not corrected in the Agreement for Services allotted
time, Owner will arrange to have the work done and all charges will be deducted from
Contractor's monthly payment.
11. Termination.
A. Termination for Cause. The obligation to provide further services under this
Agreement may be terminated for cause by either party upon fifteen days' written notice in
the event of substantial failure by the other party to perform in accordance with the term
thereof through no fault of the terminating party. The nonperforming party shall be given a
fifteen calendar day cure period to show progress (satisfactory to the terminating party) after
the written notice of intent to terminate.
In the event of any termination, Contractor will be paid for all services properly
rendered up to the date of termination. Upon any termination, Contractor must promptly
discontinue all services affected (unless a termination notice from Owner directs otherwise).
In the event of termination for cause by Owner, Owner has the right of set-off from any
payment due Contractor, of all expenses, costs, and damages, including professional and
legal expenses necessary to provide the services.
B. Termination Without Cause. Owner retains the exclusive right to cancel, stop,
or re-schedule any or all services associated with this Agreement upon thirty (30) days'
written notice to Contractor. Owner reserves the right to terminate this Agreement for
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reasons of convenience or if the services are no longer needed with the same termination
conditions stated in subsection (A) immediately above except the fifteen (15) day cure period
stated above.
Contractor may terminate this Agreement at any time upon thirty (30) days' written
notice to Owner. Termination of this Agreement by Contractor without cause shall cause
Contractor to be liable to Owner for any increased costs of procuring replacement services as
well as for any other damages provided by law.
12. Costs on Default. In the event that either party defaults in the performance of
any of its obligations under this Agreement and an action is brought for the enforcement
thereof, the defaulting party must pay the other all the costs and expenses incurred therefore,
including actual, reasonable attorney's fees. No right or remedy herein conferred upon or
reserved to Owner is intended to be exclusive of any other right or remedy, and each and
every right and remedy shall be cumulative and in addition to any other right or remedy
given hereunder, or now or hereafter existing at law or in equity or by statute.
13. Licensing. Contractor must obtain and maintain 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. Said licensing
includes, but is not limited to, obtaining state and borough business licenses and tax
certificates, and, where applicable to Contractor, paying all taxes and filing all documents
necessary to maintain Contractor's status as a corporate entity in good standing in the State
of Alaska.
14. Visitors. Contractor may not permit there to be children, friends, or other
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unauthorized persons at the Facility while the services are being performed by Contractor.
15. Assignment and Subcontract. Contractor may not assign or transfer this
Agreement without the prior written approval of the Owner. Further, Contractor may not
subcontract and/or transfer any part of the services or work to be performed without prior
written approval of the Owner. Any such assignment or transfer or subcontracting of
services without the consent of Owner constitutes. default on the part of Contractor.
16. No Discrimination. The Contractor will undertake a nondiscrimination program
required by 14 CFR, Part 152, Subpart E, to insure that no person will be excluded from
participating in any employment activity covered by14 CFR, Part 152, Subpart E, on the
grounds of race, creed, color, national origin, or sex. The Contractor may not exclude any
person on these grounds from participating in or receiving the services or benefits of any
program or activity covered by the Subpart. The Contractor further understands that it will
require its covered sub organizations to provide assurances to the City that they will also
undertake nondiscrimination programs and require assurances from their sub organizations,
as required by 14 CFR, Part 152, Subpart E.
CIVIL RIGHTS -TITLE VI ASSURANCE
Compliance with Nondiscrimination Req uirements:
During the performance of this contract, the Contractor, for itself, its assignees, and
successors in interest (hereinafter referred to as the "Contractor"), agrees as follows:
1. Compliance with Re gulations: The Contractor (hereinafter includes consultants)
will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities,
as they may be amended from time to time, which are herein Incorporated by reference
and made a part of this contract.
2. Nondiscrimination: The Contractor, with regard to the work performed by it
during the contract, will not discriminate on the grounds of race, color, or national
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origin in the selection and retention of sub-contractors, including procurements of
materials and leases of equipment. The Contractor will not participate directly or
indirectly in the discrimination prohibited by the Nondiscrimination Acts and
Authorities, including employment practices when the contract covers any activity,
project, or program set forth in Appendix B of 49 CFR part 21.
3. Solicitations for Subcontracts. including Procurements of Materials and
Equipment: In all solicitations, either by competitive bidding or negotiation made by
the Contractor for work to be performed under a subcontract, including procurements
of materials, or leases of equipment, each potential sub-contractor or supplier will be
notified by the Contractor of the contractor's obligations under this contract and the
Nondiscrimination Acts and Authorities on the grounds of race, color, or national
ongm.
4. Information and Re ports: The Contractor will provide all information and reports
required by the Acts, the Regulations, and directives issued pursuant thereto and will
permit access to its books, records, accounts, other sources of information, and its
facilities as may be determined by the sponsor or the Federal Aviation Administration
to be pertinent to ascertain compliance with such Nondiscrimination Acts and
authorities and instructions. Where any information required of a contractor is in the
exclusive possession of another who fails or refuses to furnish the information, the
Contractor will so certify to the sponsor or the Federal Aviation Administration, as
appropriate, and will set forth what efforts it has made to obtain the information.
5. Sanctions for Noncompliance: In the event of a Contractor's noncompliance with
the non-discrimination provisions of this contract, the sponsor will impose such
contract sanctions as it or the Federal Aviation Administration may determine to be
appropriate, including, but not limited to:
a. Withholding payments to the Contractor under the contract until the
Contractor complies; and/or
b. Cancelling, terminating, or suspending a contract, in whole or in part.
6. Inco rp oration of Provisions: The Contractor will include the provisions of
paragraphs one through six in every subcontract, including procurements of materials
and leases of equipment, unless exempt by the Acts, the Regulations, and directives
issued pursuant thereto. The Contractor will take action with respect to any
subcontract or procurement as the sponsor or the Federal Aviation Administration
may direct as a means of enforcing such provisions including sanctions for
noncompliance. Provided, that if the Contractor becomes involved in, or is
threatened with litigation by a sub-contractor, or supplier because of such direction,
the Contractor may request the sponsor to enter into any litigation to protect the
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interests of the sponsor. In addition, the Contractor may request the United States to
enter into the litigation to protect the interests of the United States.
CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY
ACQUIRED UNDER THE ACTIVITY, FACILITY OR PROGRAM
The following clauses will be included in deeds, licenses, permits, or similar
instruments/agreements entered into by Kenai Municipal Airport pursuant to the provisions
of the Airport Improvement Program grant assurances.
A. The (grantee, licensee, permittee, etc., as appropriate) for himself/herself, his/her
heirs, personal representatives, successors in interest, and assigns, as a part of the
consideration hereof, does hereby covenant and agree (in the case of deeds and leases
add, "as a covenant running with the land") that (1) no person on the ground of race,
color, or national origin, will be excluded from participation in, denied the benefits
of, or be otherwise subjected to discriminati.on in the use of said facilities, (2) that in
the construction of any improvements on, over, or under such land, and the furnishing
of services thereon, no person on the ground ofrnce, color, or national origin, will be
excluded from participation in, denied the benefits of, or otherwise be subjected to
discrimination, (3) that the (grantee, licensee, lessee; p~rmittee, etc.) will use the
premises in compliance with all other requirements imposed by or pursuant to the List
of discrimination Acts And Authorities.
B. With respect to (licenses, leases, permits, etc.), in the event of breach of any of the
above nondiscrimination covenants, Kenai Municipal Airport will have the right to
terminate the (license, permit, etc., as appropriate) and to enter or re-enter and
repossess said land and the facilities thereon, and hold the same as if said (license,
permit, etc., as appropriate) had never been made or issued. *
C. With respect to deeds, in the event of breach of any of the above
nondiscrimination covenants, Kenai Municipal Airport will there upon revert to and
vest in and become the absolute property of Kenai Municipal Airport and its assigns.
*
(*Reverter clause and related language to be used only when it is determined that
such a clause is necessary to make clear the purpose of Title VI.)
Title VI List of Pertinent Nondiscrimination Acts and Authorities
During the performance of this contract, the Contractor, for itself, its assignees, and
successors in interest (hereinafter referred to as the "Contractor") agrees to comply with the
following non-discrimination statutes and authorities; including but not limited to:
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• Title VI of the Civil Rights Act of 1964 (42 USC §2000d et seq., 78 stat.252)
(prohibits discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the
Department of Transportation -Effectuation of Title VI of the Civil Rights Act of
1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of
1970, (42 USC §4601) (prohibits unfair treatment of persons displaced or whose
property has been acquired because ofFedenil or Federal-aid programs and
projects);
• Section 504 of the Rehabilitation Act of 1973 (29 USC§ 794 et seq.), as amended
(prohibits discrimination on the basis of disability); and 49 CFR part 27;
• The Age Discrimination Act of 1975, as amended (42 USC§ 6101 et seq.)
(prohibits discrimination on the basis of age);
• Airport and Airway Improvement Act of 1982 (49 USC§ 471, Section 47123), as
amended (prohibits discrimination based on race, creed, color, national origin, or
sex);
• The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the scope,
coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age
Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by
expanding the definition of the terms "programs or activities" to include all of the
programs or activities of the Federal-aid recipients, sub-recipients and
concessionaires, whether such programs or activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act of 1990, which prohibit
discrimination on the basis of disability in the operation of public entities, public
and private transportation systems, places of public accommodation, and certain
testing entities (42 USC §§12131 -12189) as implemented by U.S. Department
of Transportation regulations at 49 CFR parts 37 and 38;
• The Federal Aviation Administration's Nondiscrimination statute (49 USC§
47123) (prohibits discrimination on the basis of race, color, national origin, and
sex);
• Executive Order 12898, Federal Actions to Address Environmental Justice in
Minority Populations and Low-Income Populations, which ensures
nondiscrimination against minority populations by discouraging programs,
policies, and activities with disproportionately high and adverse human health or
environmental effects on minority and low-income populations;
• Executive Order 13166, Improving Access to Services for Persons with Limited
English Proficiency, and resulting agency guidance, national origin discrimination
includes discrimination because of limited English proficiency (LEP). To ensure
compliance with Title VI, you must take reasonable steps to ensure that LEP
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persons have meaningful access to your programs (70 Fed. Reg. at 74087 to
74100);
• Title IX of the Education Amendments of 1972, as amended, which prohibits you
from discriminating because of sex in education programs or activities (20 USC
1681 et seq).
A. Affirmative Action: The Contractor will undertake any affirmative action
program 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. Contractor 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. Contractor assures that I 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 suborganizations as required by 14
CFR Part 152, subpart E or the American Disabilities Act of 1990, to the same effect.
Contract 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. Contractor shall use state or local affirmative actions plans in lieu of any
affirmative action plan or steps required by 14 CFR 152.409. Contractor shall obtain a
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61
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 CFR Part 152, subpart E, and the American Disabilities Act of 1990 are available
from the City.
17. Assumption of Risk. Contractor must provide all proper safeguards and
assume all risks incurred in performing its services hereunder.
18. No Waiver. If Owner does not insist in any one or more instances on the
strict performance by Contractor 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.
An Owner 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 Owner.
19. Integration and Modification. This Agreement contains the entire
agreement of the parties. All negotiations, statements, representations, warranties, and
assurances, whether oral or written, which are in any way related to the subject matter of this
Agreement or the performance of either party hereto, are merged and integrated into the
terms of this Agreement. This Agreement may not be modified or amended except by a
writing signed by both parties hereto.
20. Applicable LawNenue. 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 may only
bring the lawsuit before the courts of the State of Alaska in the Third Judicial District at
Kenai.
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21. Rules of Interpretation. Headings of paragraphs herein are solely for
convenience of reference and shall not affect meaning, construction, or effect of this
Agreement. Unless the context otherwise indicates, words expressed in the singular shall
include the plural and vice versa. Unless the context otherwise indicates, the use of the
neuter, masculine, or feminine gender shall include the others as well.
22. Notices. Any and all notices required or permitted under this Agreement,
unless specified otherwise, shall be in writing and hand-delivered or mailed by certified mail,
return receipt requested, to the following addres~es:
Owner: Kenai Municipal Airport
305 N. Willow St. Ste. 200
Kenai, AK 99611
Contractor: Guardian Security Systems, Inc.
2600 Seward Highway
Anchorage, AK 99503
Either party may change its address for notice by giving notice as provided herein to the
other party. Notice is effective upon hand delivery or deposit, postage prepaid, in the United
States mail.
23. Authority. By signing this Agreement Contractor represents that it has read
this Agreement and it agrees to be bound by the terms and conditions herein and that the
person signing this Agreement is duly authorized by the organization to bind the organization
hereunder.
24. Effective Date. This Agreement is not effective until signed by the City
Manager of City of Kenai and the Contractor.
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IN WITNESS WHEREOF, the parties hereto have executed this agreement for
Services the day and year set forth below.
Draft Agreement for Security Guard Services
CITY OF KENAI
By:
Terry Eubank
City Manager
GUARDIAN SECURITY SYSTEMS, INC.
By:
Michael Heath
Vice President
Page 16 of 17
64
STATE OF ALASKA )
)ss
THIRD mDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this __ day of __ _
--~ 2024, by Terry Eubank, City Manager of the City of Kenai, an Alaska municipal
corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: __ _
CORPORATION CONTRACTOR NOTARY:
STATE OF ALASKA ).
)ss
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this __ day of __ _,
2024, by Michael Heath, Vice President of Guardian Security Systems, Inc., an Alaskan
Corporation, on behalf of the corporation.
Approved as to form:
Scott Bloom
City Attorney
Draft Agreement for Security Guard Services
Notary Public for Alaska
My Commission Expires: ____ _
Page 17 of 17
65
m. Check short-term parking lot -take an inventory of vehicles and note
license plate number, make and model of vehicle on guard log.
1v. Patrol airport perimeter, closing and/or reporting any open gates on the
guard log.
v. Return to terminal and inventory short-term parking lot on guard log.
Place payment reminders for vehicles in 2 hr. parking and document
vehicle color/ make/ model/ license plate in guard log to be turned Airport
Manager's office. If the parking lot is empty, note that on guard log.
v1. Monday through Friday, at 3:30 am., sweep terminal for unauthorized
activity or personnel, unlock terminal and provide security for arriving
employees and passengers. Time is subject to change on weekends based
on flight operations.
v11. Provide information and assistance to employees and traveling public as
appropriate.
The Airport Manager may adjust the time schedule of security or require additional
security guard service. The Contractor should expect some variance in patrol
requirements due to seasonal variations of air carrier schedules and holidays.
B. The Contractor shall identify a single point of contact and an alternate point of
contact through which all information concerning security service is channeled to and
communicated to the Airport Manager.
C. Provide a 24-hour contact phone number and an email address.
D. The Contractor shall ensure that all Security Guards and/or Security Supervisors are
familiar with Kenai Municipal Code (KMC) Airport Regulations and Airport rules
and procedures before they are allowed to staff a shift at the Airport. If the City,
Airport Manager or FAA mandates any significant changes in rules, regulations and
procedures, the Airport will provide the Contractor and its' employees with
educational updates.
E. The Contractor shall ensure that Security Guards and/or Security Supervisors submit
a written shift report in a form acceptable to the Airport Manager for every shift
worked at the end of each shift to the Airport Manager's office. The written report
should be left at the Administrative Office each day at shift' s end.
F. The Contractor agrees to be readily available to address complaints about
Contractor's personnel or concerns of the Airport Manager regarding the services
provided in the Agreement in an appropriate and expedient manner. Security Guards
and Supervisors working at the airport will be required to deal with tenants and the
traveling public in a professional and courteous manner.
G. The Contractor's vehicles shall be marked with the Contractor's name on both sides
of the vehicles.
Instructions to Proposers Page 12
67
H. The Contractor shall provide complete uniforms that its employees must wear while
providing services under the Agreement.
I. The Airport Manager retains the right to conduct periodic testing or observation of
personnel to ensure conduct is professional and training requirements are met.
J. All Airport assigned Security Guards and/or Security Supervisors must meet or
satisfy the following minimum requirements:
1. Be properly licensed under guidelines set forth by the State of Alaska and carry
such license at all times while providing service under the Agreement;
2. Possess good communication skills, in English, both written and oral;
3. Possess a high school diploma or equivalent;
4. Be 18 years of age or older;
5. Be a United States citizen;
6. Pass an NCIC FBI background check.
7. Be properly uniformed, badged, and equipped while providing services; and
8. Pass an initial chemical test and analysis for the illegal use or abuse of drugs,
alcohol, contraband substances and marijuana.
Documentation of compliance with the above minimum requirements for each Airport assigned
Security Guard and Security Supervisor must be included in the personnel records of each
employee and are to be kept and maintained on file at the Contractor's office.
4. PROPOSER QUALIFICATIONS
All Proposers must prepare a Statement of Qualifications that describes, in detail, the organization
of the Proposer's firm or business and pertinent security guard services experience (see Section 3,
entitled "Scope of Work"). Each Proposer shall submit a listing of clients for which the Proposer
provides comparable services. The listing shall provide names, contact people, addresses, and
telephone numbers of those clients. Proposers must also address the following in its Statement of
Qualifications:
1. Documentation of knowledge and capabilities in regard to Airport security guard
services.
2. Resumes of key personnel and relevant experience.
3. Knowledge of airport security practices and regulations, including experience working
on an airport.
4. Any additional information the Proposer believes is relevant in assessing the
qualifications, experience, and ability of the Proposer.
A Proposer's representations concerning their qualifications will be construed as a covenant under
the Agreement. Should it appear that the Proposer has made a material misrepresentation, the City
shall have the right to terminate the Agreement for the Contractor's breach, and the City may then
Instructions to Proposers Page 13
68
pursue such remedies as provided in the Agreement documents or as provided by state statute, City
code, or as appropriate.
Any final determination that a Proposer is non-responsible will be made by the City Manager.
Such determination will be made in writing to the Proposer setting forth the reasons for such
determination.
5. CONDITIONS AFFECTING THE WORK
The Proposer shall examine carefully the site(s) of the proposed work and the proposal documents
before submitting a proposal. The submission of a proposal shall be an admission that the Proposer
has made such examination and is satisfied as to the conditions to be encountered in performing
the work and as to the requirements and accuracy of the proposal documents.
The City assumes no responsibility for any understanding or representations concerning conditions
made by any of its officers, agents, or employees prior to the execution of this Agreement, unless
such understanding or representations are expressly stated in the proposal documents or Addenda.
The Proposer shall include in their proposal, sufficient sums to cover all items required by the
Agreement and the conditions of the site(s), and shall rely entirely upon their own examination in
making their proposal. The submission of a proposal shall be taken as prima facie evidence of
compliance with this paragraph.
If information or documentation required for submitting an accurate and complete proposal is
absent from these documents, the Proposer is required to notify Airport Administration by
facsimile (907) 283-3737, or by e-mail to sconley@kenai.city.
6. LICENSING
Alaska State Statutes requires that all businesses wishing to engage in business in Alaska obtain
license(s). All Proposers are required to furnish with their proposal, the applicable, current licenses
required to perform the work. Applicable licenses may include the following: Contractor's
License, Specialty Contractor License, and Alaska Business License. Failure to submit license(s)
with the proposal may result in rejection of the Contractor's proposal.
7. TAX COMPLIANCE CERTIFICATE
No agreement will be awarded to any individual or entity that is in violation of the tax laws of the
City of Kenai or the Kenai Peninsula Borough unless the violation is cured within ten business
days of notice. The Tax Compliance Certificate must be signed by the Proposer only and submitted
with the proposal. The City will obtain verification of tax compliance from the Kenai Peninsula
Borough for the successful proposer. Proposals submitted without a completed Tax Compliance
Certificate may be considered non-responsive.
8. INTERPRETATION OR CORRECTIONS OF PROPOSAL DOCUMENTS
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69
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Proposers shall notify the Airport Administration promptly of any error, omission, or inconsistency
that may be discovered during examination of the proposal documents and the proposed work
site(s). Requests from Proposers for interpretation or clarification of the proposal documents shall
be made in writing to Airport Administration and shall arrive no later than the time and date
specified in Section 1 of these Instructions to Proposers. Questions may be faxed to (907) 283-
3737 or emailed to sconley@kenai.city. The subject line of the email or fax must include the name
of the project.
Oral questions may be presented at a pre-proposal meeting if one is provided for in Section 1 of
these Instructions to Proposers. Interpretations, corrections, or changes, if any, to the proposal
documents shall be made by Addendum. Proposers shall not rely upon interpretations, corrections,
and changes made in any other manner, including orally, at the pre-proposal meeting.
Interpretations, corrections, and changes shall not be binding unless included in an Addendum.
All Addenda issued during the time of proposal shall become part of the Agreement Documents.
Questions or requests for clarifications shall be directed to Airport Administration. Only written
interpretations or corrections by Addendum shall be binding, and no other forms of interpretation
or correction will be binding on the City of Kenai.
It is the Proposer's sole responsibility to ascertain that they have received all Addenda issued by
the City of Kenai. Addenda will be issued electronically and/or by facsimile. All Addenda must
be acknowledged in the space provided on the Proposal Form. If no Addenda have been issued,
write or type "zero" or "NIA" on the Proposal Form in the space provided.
9. PREPARATION AND SUBMISSION OF PROPOSALS
• Proposals must be received at the Airport Administrative Office prior to the time and date
specified in Section 1 of these Instructions to Proposers.
• Proposals must be submitted on the Proposal Form furnished and should be sealed in a
separate envelope clearly marked with the proposer's and RFP name. Proposals must be
completed in ink or by typewriter, and must be manually signed by an authorized person.
If erasures or other changes appear on the forms, the person signing the proposal must
initial each erasure or change in ink.
• Proposals shall specify a unit or lump sum price, typed or written in ink in figures. In case
of error in the extension of prices, the unit price will govern. Proposals may be rejected if
they show any omissions, alteration of the forms, additions not called for, conditional or
alternate proposals not called for, qualified proposal, or irregularities of any kind.
• It is expressly agreed that the quantities shown in the Proposal Form, whether for a "Unit
Price Proposal" or in connection with a "Lump Sum Proposal" on the Proposal Form are
approximate only for use as a basis for comparison of proposals and are not to be taken to
be either representations or warranties. The City does not expressly, nor by implication,
agree that the actual amount of work will correspond therewith.
• The Proposal Form invites proposals on definite plans and specifications. Only the
amounts and information asked for on the Proposal Form will be considered as the
Instructions to Proposers Page I 5
70
proposal. Each Proposer shall propose upon the work exactly as specified and as requested
on the Proposal Form, and Proposers shall propose upon all alternates as indicated.
• One (1) complete proposal package shall be completely sealed in an envelope clearly
marked with the Proposer's company name, and the "Project Name" and "Proposal Due
Date" specified in Section 1 of these Instructions to Proposers. A complete proposal
package shall include the following documents:
o Statement of Qualification
o Proposal Form (sealed in separate envelope)
o Tax Compliance Certificate
o Applicable Licenses
o Non-Collusion Affidavit
• Proposals received without all the required documents may be considered non-responsive.
• Proposals received after the proposal due date and time will be considered non-responsive
and will not be accepted.
• No responsibility shall be attached to the City for the premature opening of, or the failure
to open a proposal not properly addressed and identified.
• Please note that overnight delivery from the Lower 48 States is generally not available.
Prospective Proposers should anticipate a minimum of two to three days delivery time for
express, priority or expedited delivery services.
10. MODIFICATION OF PROPOSALS
Proposal modifications will be accepted by the City at sconley@kenai.city and binding upon the
Proposer where the modification:
• is received at the Airport Administrative Office prior to the time and date specified in
Section 1 of these Instructions to Proposers.
• is signed by the same individual who signed the original proposal.
Should there be more than one proposal modification from a Proposer, only the last modification
received prior to the deadline shall be applied to the proposal. All earlier modifications shall be
disregarded.
Any modification which fails to meet any requirement of this section shall be rejected, and the
proposal shall be considered as if no modification had been attempted.
It is the Proposer's responsibility to confirm the City's receipt of any proposal modification.
11. WITHDRAW AL OF PROPOSAL
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71
(a) Any party submitting a proposal for a contract with the City and who believes that they are
adversely affected by the City's relevant ordinances, regulations, procurement process, or by any
acts of the City in connection with the award of a City contract, may file a protest appeal with the
City Clerk. All protest appeals must be to the City within five (5) calendar days of the issuance of
the City's notice of its intent to award the contract. The appeal must be hand delivered, delivered
by mail, or by facsimile and must comply with all requirements of this section. If the fifth day is a
City-recognized holiday or a weekend, the deadline for appeal shall be the next work day. It is up
to the protester to choose a method of delivery to assure timely receipt by the City.
(b) Rejection of Appeal. The Clerk shall reject an untimely or incomplete appeal. Such rejection
shall be final and may be appealed to the Superior Court pursuant to the Court Rules of Appellate
Procedure.
( c) The protest appeal must be in writing and shall include the following information:
(1) The name, address, e-mail, and telephone (and facsimile if available) numbers of the protester;
(2) The signature of the protester or the protester's representative;
(3) Identification of the contracting agency and the solicitation or contract at issue;
( 4) A statement of the legal and factual grounds of the protest, including copies of relevant
documents; and
( 5) The form of relief requested.
( d) Stay of Award. If a timely and complete protest appeal is filed, the award of the contract shall
be stayed until all administrative remedies have been exhausted, unless the City Manager
determines in writing that award of the contract pending resolution of the appeal is in the best
interests of the City.
(e) Notice and Response. Notice of the stay and protest appeal shall be delivered to any party
who may be adversely affected by the City Manager's decision by facsimile, first class mail or in
person within three (3) business days of receipt of a properly filed appeal.
(f) City Manager Decision. The City Manager shall issue a written decision to the appellant
within ten (10) business days of the date the appeal is filed. If multiple appeals have been filed,
they may be consolidated for purposes of the decision. Copies of the appeal and decision shall be
provided to any interested party requesting one. The decision may include any lawful action,
including without limitation an amendment of all or any part of the recommended award. For good
cause shown, the City Manager may extend the date for the decision for such additional period as
may be necessary.
(g) If the City Manager sustains a protest in whole or in part, the City Manager shall implement
an appropriate remedy. In determining an appropriate remedy, the City Manager shall consider the
circumstances surrounding the solicitation or procurement including the seriousness of the
procurement deficiencies, the degree of prejudice to other interested parties or to the integrity of
the procurement system, the good faith of the parties, the extent the procurement has been
accomplished, costs to the agency and other impacts on the agency of a proposed remedy, and the
urgency of the procurement to the welfare of the City.
(h) Notwithstanding subsections (a) and (b) immediately above, if the City Manager sustains a
proposal protest appeal in whole or part, the protester's damages shall not exceed the reasonable
proposal preparation costs.
(i) Appeal to Superior Court. Appeals may be taken from the written decision of the City
Manager within thirty (30) days of the date of the decision pursuant to Part VI of the Alaska Rules
of Appellate Procedure.
(Ord. 2852-2015)
Instructions to Proposers Page 18
73
17. AWARDPROCEDURES
The award of this contract will be based on certain objective and subjective considerations listed
below:
1. Responsiveness to Request for Proposal -Adequacy, completeness, and quality of
response to the RFP.
Maximum points available are 33
2. Proposer's experience & capability -As outlined in the Statement of Qualifications.
Maximum points available are 33
3. Contract Cost -Standard Guard price per hour
Lowest Price
Proposal Price
x34=
Maximum points available are 34
Total points available are 100
Evaluation of proposals will be conducted by an evaluation committee of qualified City Staff, or
other persons selected by the City. The committee will evaluate all responsive proposals based
upon the information and references contained in the proposals submitted. The committee will
score and rank all responsive proposals.
Instructions to Proposers Page 110
75
SECURITY SERVICES RFP EVALUATION FORM
Proposer _____________________________ _
Criteria Score Justification
Responsiveness to Request
for Proposal -
Understanding the scope of
services to be provided,
completeness and compliance
with all other requirements
including instructions,
provisions, terms and
conditions of this solicitation.
Possible 33 Points
Proposer's experience,
capability & references -
Experience, qualifications,
and past performance of the
proposer including their
ability to meet requirements
of the RFP which includes
previous/current contracts of
similar size, duties, and
r
scope, background in airport
security; Stability of Proposer
to include local/national,
length of time in security
business; Abilities,
qualifications and experience
of persons assigned to the
performance of the contract;
Methods of training,
employment screening, and
security guard qualification
requirements
Possible 33 Points
Standard Guard Price Per
Hour -The lowest offered
price per hour will receive 34
points.
Total Score
Selection Committee Member:
Date:
Instructions to Proposers Page 111
76
Special Use Permit - (Office Space Suite 120) Page 1 of 7
SPECIAL USE PERMIT 2024
The CITY OF KENAI (City) grants to Rebecca Boettcher with The Fishing Grounds, LLC
(Permittee), whose address is 48585 Wendy Ln, Soldotna, AK 99669 a Special Use Permit
(Permit) for a snack/gift shop inside the Kenai Municipal Airport terminal building subject
to the requirements and the conditions set forth below.
1. Premises. Permittee shall have the exclusive right to use suite 120, the area described
in the attached diagram (Exhibit A) for the uses identified in this Permit.
2. Term. The term of this Permit shall be for twelve months commencing on May 1,
2024 and ending on April 30, 2025. Regardless of the date of signature, this Permit shall be
effective as of May 1, 2024.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit: In-terminal Concession Certified Activity Report attached.
(Exhibit B)
Permittee shall pay fifteen (15) percent of gross sales, plus applicable sales tax.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. Failure to timely
make the payment is grounds for termination of this Permit.
4. Use. City authorizes Permittee’s exclusive use of the Premises for the following
purpose(s):
Office space, Suite 120, consisting of approximately 341 square feet, located on the
first floor, terminal building, Kenai Municipal Airport, and as more particularly set
forth on Exhibit A to this Permit (the Premises).
Permittee is authorized to use the Premises for the following purposes only:
Snack/gift shop
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
77
Special Use Permit - (Office Space Suite 120) Page 2 of 7
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, their
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Insurance. 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.
A. 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. The policy must
include an endorsement under which the insurer extends coverage to Permittee’s
fuel handling activities. The policy must name the City as an additional insured.
B. Worker’s compensation insurance with coverage for all employees engaged
in work under this Permit or at the Premises as required by AS 23.30.045. Permittee
is further responsible to provide worker’s compensation insurance for any
78
Special Use Permit - (Office Space Suite 120) Page 3 of 7
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. 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.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated “A-” or
better by A.M. Best.
ii. 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.
iii. 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.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by May 1,
2024. The effective date of the insurance shall be no later than May
1, 2024.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
9. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
79
Special Use Permit - (Office Space Suite 120) Page 4 of 7
10. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City’s staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
“Liabilities”), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee’s activities on or use of
the Premises, Permittee’s access to the Kenai Municipal Airport, and/or Permittee’s
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
11. No Discrimination. Permittee shall not discriminate against any person because of
the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
12. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
13. Compliance with Law/Grant Assurances. This Permit, and Permittee’s activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport’s eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City’s grant assurances and federal
obligations.
14. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
15. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
80
Special Use Permit - (Office Space Suite 120) Page 5 of 7
16. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
17. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
18. Personal Property. Permittee shall remove any and all personal property,
including all vehicles, from the Premises at the termination of this Permit (or any renewal
thereof). Personal property placed or used upon the Premises will be removed and/or
impounded by the City, if not removed upon termination of this Permit and when so
removed and/or impounded, such property may be redeemed by the owner thereof only
upon the payment to the City of the costs of removal plus storage charges of $25 per day.
The City is not responsible for any damage to or theft of any personalty of Permittee or of
its customers.
19. Termination; Default. This Permit may be terminated by either party hereto by
giving fourteen (14) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than fourteen (14) days, to protect public health
and safety or due to a failure of Permittee to comply with conditions or terms of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
20. Definitions. As used in this Permit, “Permittee” means Rebecca Boettcher with
The Fishing Grounds, LLC, and where the context reasonably indicates, its officers, agents,
and employees. “Airport” means the Kenai Municipal Airport.
18. Janitorial and Cleaning Services. Permittee will provide, at its own expense, the
day-to-day janitorial cleaning services and supplies necessary to maintain the premises in
a clean, neat, and sanitary condition.
19. Security. Permittee will adhere to all applicable responsibilities of the federal
airport security program set out in Federal Aviation Regulations Part 107 and the Airport
Master Security Program. Permittee will procure any required identification badges should
it be necessary to access the premises or Permittee’s operations authorized under this
Permit.
20. Smoking. Neither the Permittee employees, nor customers may smoke in or around
the terminal except in designated smoking areas.
81
Special Use Permit - (Office Space Suite 120) Page 6 of 7
21. Employee Parking. Employees may use non-exclusive employee vehicle parking
spaces at no charge. All employees must register their vehicle(s) in the Airport Manager’s
office to receive a vehicle-parking permit to park while on the job. Permittee shall be held
accountable for Permittee’s employees’ use of designated vehicle parking facilities and
assure that employees comply with all Airport directives.
22. Signs. Permittee may, after consent by the Airport Manager, install signs at its
premises identifying its business. Permittee will request the Airport Manager’s advance
written approval before installation of any signage.
CITY OF KENAI
By:
Terry Eubank Date
REBECCA BOETTCHER, THE
FISHING GROUNDS, LLC
By:
Rebecca Boettcher Date
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing
instrument was acknowledged before me by Terry Eubank, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
________________________________
Notary Public for Alaska
My Commission Expires: ____________
STATE OF ALASKA )
) ss.
82
Special Use Permit - (Office Space Suite 120) Page 7 of 7
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of ______________, 2024, the foregoing
instrument was acknowledged before me by Rebecca Boettcher, Owner, The Fishing
Grounds, LLC.
________________________________
Notary Public for Alaska
My Commission Expires: ____________
Approved as to form:
___________________
Scott Bloom
City Attorney
83
KENAI, ALASKA
KENAI MUNICIPAL AIRPORTWINCE-CORTHELL-BRYSON
JOB NO: REVISED:
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THIS DRAWING IS NOT TO SCALE
Plotted: 11/06/19
Suite 120
Exhibit A
84
Rev. 20230614 Exhibit B
Kenai Municipal Airport
THE FISHING GROUNDS, LLC
Certified Activity Report
For the Month of ____________, 20__ Date prepared _______________
Monthly Sales: $______________
The Concessionaire will pay the City of Kenai the percentage fee (15%):
Monthly Gross Sales: $___________ x 15% = $___________ $_______________
Subtotal: $_______________
Sales Tax: (6% or $30 whichever is less) $_______________
Total Amount Due: (Must be paid by the 15th of the month) $_______________
Remit to: Kenai Municipal Airport Suite 200 305 North Willow Street
Kenai, AK 99611
Other Information:
Gross Sales Attributed to a DBE: $_______________
Certification:
I hereby certify that the above is a true statement from the records of the following
business:
Business: The Fishing Grounds LLC
Address: 48585 Wendy Lane, Soldotna, Alaska 99669
Name: ___________________________________
Signature: ___________________________________ Date: __________________
85
MARCH 14, 2024
AIRPORT COMMISSION MEETING
ADDITIONAL MATERIAL/REVISIONS
REQUESTED ADDITIONS TO THE PACKET:
ACTION ITEM REQUESTED BY
Add to Item F.5 Discussion/Recommendation – Recommending
Council Adoption of a Resolution Authorizing the City
Manager to Enter into a Bar and Lounge Concession
Agreement for the Kenai Municipal Airport
•Memo
•Upper Deck Agreement & Attachments
•Draft Resolution No. 2024-12
Airport Manager
1
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
From: Derek Ables - Airport Manager
Date: March 13, 2024
Subject: - Recommending Council Adoption of a Resolution Authorizing the City
Manager to Enter into a Bar and Lounge Concession Agreement for the Kenai Municipal
Airport.
On January 31st, 2024 the airport released an RFP for the bar/lounge concession. The goal
of the RFP is to provide service that is available to the most users of the airport terminal as
well as the public that want to stop in for a drink.
On March 1, 2024 there was one responsive proposal turned in by The Upper Deck. They
are proposing to pay a base rent of $1666.67 base rent plus tax or 8% of gross sales yearly,
whichever is greater.
Does Commission recommend Council approve a bar/lounge concession agreement
with The Upper Deck?
Attachments- Agreement
2
Bar/Lounge Concession Agreement City _____
Page 1 of 27 Concessionaire_____
Concessionaire _____
CITY OF KENAI
KENAI MUNICIPAL AIRPORT
BAR/LOUNGE CONCESSION AGREEMENT
Rod Peterkin, President (Concessionaire), The Upper Deck LLC P.O. Box 11 Kenai Alaska
99611, and the CITY OF KENAI, a municipal corporation, organized and existing under the
laws of the State of Alaska (City), 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611, hereby
enter into this contract for bar/lounge concession services at the Kenai Airport, the term of which
is May 1st, 2024 through April 30th, 2027.
INTRODUCTION
A. The City owns and operates the Kenai Municipal Airport, located in Kenai, Alaska.
B. In connection with the Airport, the City owns the Terminal.
C. The City has determined that offering a Bar/Lounge Concession Agreement by the
competitive bid process is in the best interest of the City and the traveling public.
D. The Concessionaire desires to operate the Bar/Lounge Concession in the Terminal.
E. The City solicited proposals for the Bar/Lounge Concession, and the Concessionaire was
the successful proposer.
ARTICLE I: DEFINITIONS
The following definitions apply for this Agreement:
A. Agreement: This Agreement, together with:
1. Certified Activity Report form (CAR) (Exhibit A)
2. Drawing of Airport Terminal Layout (Exhibit B);
3
Bar/Lounge Concession Agreement City _____
Page 2 of 27 Concessionaire_____
Concessionaire _____
3. List of city-owned equipment in the bar (Exhibit C);
4. All future amendments or supplements executed by the parties to this
Agreement.
B. Airport: The real property and facilities of the Kenai Municipal Airport, 305 N. Willow,
Kenai, Alaska, as they exist on the execution date of this Agreement, together with any
future additions or expansions.
C. Airport Manager: The City's designated manager at Kenai Municipal Airport acting
directly or through a duly authorized representative.
D. Certified Activity Report: A report that lists the Gross Sales generated by the Bar/Lounge
Concession during the month for which payments are made. The format of the Certified
Activity Report is specified in Exhibit A.
E. Concessionaire: The successful bidder for this Bar/Lounge Concession Agreement, who
enters into this Agreement, or any other subsequent Concessionaire as provided under
Article XXI (Assignment or Subletting) of this Agreement.
F. Disadvantaged Business Enterprise (DBE): A business certified by the State of Alaska, as a
disadvantaged business enterprise as defined in 49 CFR, Part 23.
G. Entertainment Device: A mechanical or electronic device, video game, or similar item used
for personal entertainment in a public place.
H. Manager: That person described in Article VII and having authority to act for the
Concessionaire.
I. Premises: The floor space available to the Concessionaire for the uses authorized under
this Agreement is as shown below (also see Exhibit B- Room 204):
The premises known as the bar/lounge area on the 2nd floor of the Kenai Municipal
Airport Terminal within the NW ¼, SE ¼, Section 32, T6N, R11W, Seward
Meridian, in the Kenai Recording District, Third Judicial District, State of Alaska.
J. Term: The period of time specified under Article II of this Agreement.
K. Terminal: The City of Kenai passenger terminal building at the Airport.
L. Vending Machine: A coin-operated device for selling nonalcoholic beverages or food
items.
4
Bar/Lounge Concession Agreement City _____
Page 3 of 27 Concessionaire_____
Concessionaire _____
ARTICLE II: TERM
A. Term: This Agreement is effective on the date it is signed on behalf of the City. The City
grants the Concessionaire the rights listed in Article III beginning at 12:01 a.m., May 1,
2024, and ending at 12:00 midnight April 30, 2027, with an opportunity to extend for two
successive one-year terms by mutual written consent of Owner and Concessionaire.
B. Holding Over: If the Concessionaire holds over without a written renewal of this
Agreement after it expires, the holding over does not operate as a renewal or extension of
the rights granted under this Agreement, but only creates a month-to-month tenancy,
regardless of any payment the City accepts. The Concessionaire's obligations to perform
under this Agreement will continue until the City terminates the month-to-month tenancy.
The City may terminate the holdover tenancy at any time by giving the Concessionaire at
least 10 days' written notice. The monthly payment for any holdover period is the proposed
percentage of gross receipts.
ARTICLE III: RIGHTS GRANTED, RESERVATIONS, AND PROHIBITIONS
Subject to the rights and obligations under this Agreement, the City grants the 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 a bar and lounge area at the
Airport, which Concessionaire may operate on and upon the Premises, for the sale and
consumption of alcoholic and non-alcoholic beverages and sundry snacks such as
chips, nuts, and other previously-prepared snack food of like kind, as is customarily
served in similar establishments. Concessionaire shall engage in no other business
activity on or at the Airport.
2. 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
bar/lounge concession and shall pay all related fees for said permits and licenses.
3. Subject to more specific instruction in Article X, 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.
5
Bar/Lounge Concession Agreement City _____
Page 4 of 27 Concessionaire_____
Concessionaire _____
A. General Rights: The City grants the Concessionaire the following general rights:
1. To ingress, egress, and occupy the premises by the Concessionaire, its officers,
contractors, suppliers, service personnel, guests, patrons, and invitees, subject to the
security rules of the Airport.
2. To construct and install fixtures, equipment, and other improvements necessary to
operate the concession, subject to the prior written approval of the City (Article X of
this Agreement).
B. Reservations: The City reserves the following rights:
1. To grant others any right or privilege not specifically and exclusively granted to the
Concessionaire.
2. The City shall have the right to inspect the Premises and to impose reasonable
regulations to ensure proper care, maintenance, and upkeep of the Premises.
3. The rights and privileges granted the Concessionaire under this Agreement is the only
rights and privileges granted the Concessionaire. The Concessionaire has no
easements, rights, or privileges, expressed or implied, other than those specifically
granted under this Agreement.
C. Prohibitions: This Agreement prohibits the Concessionaire from the following:
1. To provide any service or product not described in this Agreement without the prior
written consent 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 concerning the dispute. The City will deliver a written
decision to the Concessionaire, and the decision of the City is final.
2. To sell any item or service for which the City has granted exclusive concession rights
to others.
3. To divert any business or cause or allow by its own actions any business to be
diverted from the Airport.
D. Emergency Closures: The City recognizes that emergencies may occur that are beyond the
control of the concessionaire. If an emergency arises that requires an unexpected closure
then the Concessionaire will notify the Airport Manager of the circumstances in writing. If
excessive closures occur, the City shall have the option of terminating this contract.
6
Bar/Lounge Concession Agreement City _____
Page 5 of 27 Concessionaire_____
Concessionaire _____
E. Closure for Repairs: The parties recognize that major repairs of the building may occur
during the life of this contract. The City reserves the right to cause interruptions to the
utilities and other amenities as necessary to conduct normal repairs. If such interruptions
are minimal and notification of such work is provided the concessionaire then the City is
not held liable for lost revenue.
ARTICLE IV: PREMISES
The City will deliver the premises to the Concessionaire at 12:01 a.m. on May 1, 2024. The
Concessionaire accepts the premises in its then-present condition and as is. The Concessionaire
acknowledges that the City's obligation is limited to making the premises available to the
Concessionaire for its use.
ARTICLE V: FEES AND PAYMENTS
A. Base Rent: For the rights and privileges granted under this Agreement, the Concessionaire
will pay the City a minimum base rent of $1,666.67 per month, plus applicable sales tax.
An additional payment may be due if the Concessionaires gross sales exceed $250,000 in
each twelve-month period of the contract term beginning May 1, 2024. If the
Concessionaire’s gross sales exceed $250,000 during the relevant twelve-month period, the
City shall be entitled to 8% of the Concessionaires gross sales, and the Concessionaire must
make a payment to the City by May 10th of each Calendar year of the agreement beginning
in 2025, making up the difference between $1,666.67 per month and 8% of gross sales in
excess of $250,000.
Concessionaire shall provide a Certified Activity Report (CAR) for each month of the
preceding month for the City’s audit purposes to determine compliance with this
requirement. The Concessionaire shall submit each CAR in the format shown in Exhibit
A. The CAR shall be submitted to the Airport Administrative Office at the Airport.
Percentage payment 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.
1. Gross sales numbers are confidential to the extent allowed by law.
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2. Payments must be submitted to City of Kenai, Finance Department, 210 Fidalgo, Kenai,
AK 99611.
3. The Concessionaire will make its payments free from any claim, demand, setoff, or
counterclaim of any kind against the City, and will make its payments in cash or by
check, bank draft, or money order payable to the City of Kenai.
B. Utilities:City shall pay for garbage removal and electrical utilities including heat and
normal air conditioning during the operating hours of the terminal. All other utilities and
services including telephone communication, internet, cable and other utilities and services
incident to the Concessionaire’s business, shall be operated and maintained at the
Concessionaire’s sole expense.
C. Waiver of Monthly Percentage:
1. The City will waive the monthly percentage payment if any of the following events
occur:
a. Any event, not the fault of the Concessionaire that so damages the Terminal and
prevents the normal operation of the Concessionaire's business for more than
30 consecutive days. If the normal operation of the Concessionaire's business is
prevented for more than 30 consecutive days, this waiver is effective from the
first day following the period of 30 consecutive days and will continue until
normal operations can resume.
b. Complete closure of the Airport to the commercial air transport of passengers
for more than 30 consecutive days. If complete closure of the Airport exceeds
30 consecutive days, this waiver will be effective from the first day following
the period of 30 consecutive days and will continue until the Airport is reopened
to the commercial air transport of passengers.
D. Fees Vest in the City: Whether for cash or credit, the fees due the City for the services the
Concessionaire is authorized to provide under this Agreement immediately vest in and
become the property of the City. The Concessionaire is responsible for those fees until
delivered to the City.
E. Unpaid Fees: Any rent, charge, fee, or other consideration due but unpaid at the expiration
or voluntary or involuntary termination or cancellation of this Agreement is a charge
against the Concessionaire and its property, real or personal, and the City has any lien rights
allowed by law. Either the City or its authorized agent may provide enforcement.
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F. Security Deposit: The successful proposer will be required to provide a security deposit or
bond for the same in the amount of $1,000.00. This deposit or bond will be used by the City
to remedy any late payments, property damage, or other costs incurred due to the failure of
the proposer to comply with the contract terms and otherwise will be held until and if the
premises is vacated by the successful proposer in full compliance with all agreement terms.
The security deposit or bond must be provided to the City prior to the execution of the
Bar/Lounge Concession Agreement.
G. Closure Fees: The Concessionaire will be open a minimum of 60 hours per week and 7 days
per week. The City may require the Concessionaire to pay a penalty of $100 per week for
any week the Concessionaire is not open unless the City authorizes in writing a reduction of
hours for that week. This penalty will be in addition to normal fees due the City under this
concession agreement.
ARTICLE VI: DISADVANTAGED BUSINESS ENTERPRISE PARTICIPATION
DISADVANTAGED BUSINESS ENTERPRISES (DBE’S): The City of Kenai’s policy is to
ensure that DBE’s have the maximum opportunity to participate in the performance of Airport
concession contracts.
(a) Concessionaire’s obligation: The Concessionaire will ensure that DBE’s have
the maximum opportunity to participate in the performance of this agreement.
This agreement is subject to the requirements of the United State Department of Transportation’s
regulations, 49 CFR, Part 23, Subpart F. The Concessionaire Agrees to comply with pertinent
statutes, Executive Orders and such rules as are promulgated to ensure that no person shall, on the
grounds of race, creed, color, national origin, sex, age, or disability be excluded from participating
in any activity conducted with or benefiting from Federal assistance. If the concessionaire
transfers its obligation to another, the transferee is obligated in the same manner as the
concessionaire. The Concessionaire agrees that throughout the Term of this Agreement,
Concessionaire shall at all times be and shall remain in full and complete compliance with all
applicable Federal, State and local laws, statues, regulations, rules, rulings, orders, ordinances and
directives of any kind or nature without limitation, as now or hereafter amended, including, but
not limited to FAA Advisory Circulars and Airport Rules and Regulations.
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ARTICLE VII: PERSONNEL
The Concessionaire will maintain an adequate staff with the experience necessary to meet the
provisions of this Agreement.
A. Manager: The Concessionaire will select and properly train a Manager responsible for the
general day-to-day operations under this Agreement. The Manager must reside in the
Kenai area and be ordinarily available during regular business hours. At all times during
the Manager's absence, a responsible subordinate must be in charge and available.
B. Other Personnel: The Concessionaire's personnel will meet the standards set forth in this
Agreement and will conduct the Concessionaire's operations in accordance with the
standards set forth in Article IX of this Agreement.
ARTICLE VIII: OWNERSHIP OF EQUIPMENT AND IMPROVEMENTS
A. City-owned Equipment: The City holds title to certain bar/lounge equipment that is located
on the premises and is listed on Exhibit C.
B. Concessionaire-owned Equipment
1. Title to all Concessionaire-owned personal property, trade fixtures, equipment,
furniture, vending machines, and entertainment devices remains vested in the
Concessionaire.
2. Entertainment Devices: The City will approve the locations, maximum number, and
kinds of entertainment devices it will allow on the premises. The Concessionaire will
relocate or remove any Entertainment Device at its sole expense when requested to do
so by the City.
C. Ownership of Permanent Improvements
On expiration, cancellation, or termination of this Agreement, title to any structural or
other improvements that the Concessionaire cannot, in the City's determination, remove
without damage to the premise’s vests in the City. These improvements include interior
walls, ceilings, carpeting, finished flooring, electrical wiring, air-conditioning ducts and
equipment, and all interior decorations and finishing erected or installed by the
Concessionaire.
ARTICLE IX: SERVICE AND OPERATION
The Concessionaire's operation under this Agreement is a service to the traveling public and
other users of the Airport. The Concessionaire will operate its Concession in accordance with
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the highest standards and practices of the beverage industry. The Concessionaire will take all
reasonable measures to maintain, develop, and increase its business within the Terminal.
Accordingly, the Concessionaire will provide service in a first-class, businesslike, efficient,
courteous, accommodating manner and will comply with the following:
A. Service Quality: The Concessionaire will provide the traveling public and other users of the
Airport with high-quality service and products.
B. Orderly Operation: The Concessionaire will conduct all business in a quiet, orderly, and
courteous manner, so as not to annoy, disturb, or offend customers, patrons, or tenants of
the Airport.
C. Health Standards and Facilities' Cleanliness
1. The Concessionaire will comply with all established health standards as monitored by
the local governmental health department.
2. Within five (5) days of any health standards inspection, the Concessionaire will
provide the City with a copy of the inspection report.
3. The Concessionaire will have an ongoing cleaning program for both the public and
non-public areas within the premises. The program will include cleaning of floors,
equipment, trade fixtures, furniture, entertainment devices, vents, and service areas.
D. Standard of Conduct for Employees: The Concessionaire will maintain a standard of
conduct for its employees that include the following:
1. Employees must be well groomed and maintain a pleasant attitude toward the public.
2. Employees may not display their grievances in public, use improper language or
conduct, or drink any alcoholic beverage while on duty or in uniform.
E. Janitorial and Cleaning Services: The Concessionaire will provide, at its own expense, the
day-to-day janitorial and cleaning services and supplies necessary to maintain the premises
except for those services provided by the City under Article XI of this Agreement. The
Concessionaire will maintain the premises in a clean, neat, and sanitary condition.
F. Trash, Garbage, and Refuse: The Concessionaire will provide for the adequate sanitary
handling and removal of all trash, garbage, and other refuse caused as a result of the
Concessionaire's operations. The Concessionaire will coordinate a schedule and procedure
of trash removal with the City. The Concessionaire will provide and use suitably covered
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or sealed receptacles for all garbage, trash, and other refuse from its operations inside the
Terminal.
G. Security: The Concessionaire will adhere to all applicable responsibilities of the federal
airport security program set out in Federal Aviation Regulations Part 107 and the Airport
Master Security Program. The 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 lessees, vendors, guests,
customers, or employees, whether on or off the premises, that is found by the Federal
Aviation 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 Federal
Aviation 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.
H. Smoking: Neither the Concessionaire, employees, or customers may smoke inside or
outside the Terminal except in designated smoking areas.
I. Complaints, Questions, or Concerns: The City will forward to the Concessionaire for
response any complaints, questions, or concerns regarding the Concessionaire's operations.
The City reserves the right to address and resolve any problems arising out of the
Concessionaire's operations.
J. Signs: The Concessionaire may, after consent by the Airport Manager, install signs at its
premises identifying its business. The Concessionaire will request the City’s advance
written approval through the City’s building permit process (Article X, Section B of this
Agreement) before installation of any signage. The City will approve or disapprove the
names selected for the restaurant.
ARTICLE X: MAINTENANCE AND CONSTRUCTION ON THE PREMISES
A. Maintenance
1. The Concessionaire will, at its sole expense:
a. Maintain the premises, furniture, trade fixtures, equipment, and entertainment
devices in good repair and appearance and in a safe condition at all times.
b. Do or cause to be done without delay all those things which in the
determination of the City are necessary or desirable in the interest of safety or
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to maintain the premises, furniture, trade fixtures, equipment, and
entertainment devises in good repair and appearance.
c. Pay for damage to the facilities of any other Airport tenant or the City caused by
the Concessionaire's lack of adequate maintenance of any equipment, fixture,
or system installed by the Concessionaire.
2. The City may require the Concessionaire to perform necessary repairs to the premises,
furniture, trade fixtures, equipment, and vending machines, and entertainment devises
at the Concessionaire's own expense.
3. If, after 30 days following notice, or in shorter periods if an emergency exists, the
Concessionaire fails or refuses to perform any action required by this Agreement, the
City has the right, but not the obligation, to perform any or all actions required by this
Agreement at the sole expense of the Concessionaire. The City will not take action if
the Concessionaire begins and continues expeditious action to perform any action
required by this Agreement that cannot be reasonably completed within 30 days. If the
City performs any action required of the Concessionaire, the Concessionaire will
reimburse the City within 30 days from the date of billing.
B. Terminal Building Permit Process:
1. The Concessionaire may not make repairs or alter the premises without first obtaining
the City's prior written consent through the building permit process. The
Concessionaire will complete a Terminal Building Permit Application form obtained
from the City. Repairing and altering the premises include the following:
a. Installation, maintenance, repair, or removal of trade fixtures, equipment,
entertainment devices, locks, antennae, counters, shelving, signs, posters,
telephone lines, data circuits, floor coverings, wall coverings, painting,
electrical, plumbing, and refrigeration work; and
b. Any other repair or alteration that the City deems necessary to be approved
through the building permit process.
2. The City may withhold its approval if the Concessionaire is in violation of any
requirement under this Agreement.
3. The Concessionaire will make all repairs and alterations to the premises at its own
expense. The City has the right to approve the final repair or alteration.
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C. General Construction Requirements
1. Any alteration, repair, construction, or improvement performed by the
Concessionaire will be neat, presentable, and compatible with the architecture of the
Terminal, as determined by the City, and performed at no cost to the City.
2. The Concessionaire will deliver detailed as-built drawings to the City within 30 days
after completion of any permanent improvement. The as-built drawings must show
the location and dimensions of any permanent improvement made by the
Concessionaire.
ARTICLE XI: CITY SERVICES
A. City Services
1. The City will perform the following services:
a. Maintain the structure of the Terminal, the roof, and exterior walls.
b. Agrees to pay for electricity consumed on the Premises.
c. Wash the outside of all exterior Terminal windows as well as clean and
maintain the public areas in the Terminal.
d. Maintain the Terminal’s existing and future utility systems in good condition
and repair. Utility systems include systems to supply heat, electricity, water,
sewage disposal, fire alarm, fire protection, sprinkler, air conditioning, and
telecommunications services. The City has the right to maintain lines, pipes,
mains, wire, conduits, and equipment connected with or appurtenant to any
system. However, the City may refuse to maintain any system installed by the
Concessionaire and may charge the Concessionaire for any repair necessary
due to negligence by the Concessionaire during any such installation or as the
result of any such installation.
2. The City will invoice the Concessionaire and the Concessionaire will pay for any
extraordinary lighting, power, utility bills, or cleaning services used by the
Concessionaire that, in the determination of the City, are beyond the scope of normal
services provided by the City.
B. Hold Harmless: The Concessionaire will waive any claim and hold the City harmless for
damages from any failure or interruption of utility or other service furnished by the City,
including failure or interruption of electrical energy, space heating or cooling, or any public
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or passenger convenience. In addition, the City may make any repair or alteration
necessary for the proper functioning of the Terminal without liability to the Concessionaire
for any damages.
ARTICLE XII: CITY’S RIGHTS OF INSPECTION AND ACCESS
A. Inspection: The City, by its officers, employees, agents, representatives, and contractors,
may at any reasonable time enter the premises to inspect or observe the Concessionaire’s
performance of its obligations under this Agreement, or to take any action that the City is
obligated to take under this Agreement or otherwise. The Concessionaire will neither
claim nor does the City allow an abatement of fees if the City exercises this right. Except
in an emergency, the City will coordinate all inspections with the Concessionaire to
minimize interference with the Concessionaire’s activity on the premises.
B. Access:
1. The Concessionaire will assure the City of emergency access to the premises by
providing emergency telephone numbers by which the Concessionaire or the
Concessionaire's Manager may be reached on a 24-hour basis.
2. Without limiting the generality of the foregoing, the City, by its officers, employees,
agents, representatives, and contractors, has the right to maintain the existing and
future utility systems or portions of them on the premises as listed in Article XIII of
this Agreement. The City has the right to enter the premises at any reasonable time
to make repairs, alterations, or replacements that are, in the determination of the City,
necessary or advisable, and, from time to time, to construct or install over, in, or
through the premise’s new lines, pipes, mains, wires, conduits, and equipment. Any
repair, alteration, replacement, or construction will not unreasonably interfere with
the use of the premises by the Concessionaire, and nothing in this Article may be
construed to relieve the Concessionaire of any obligation to maintain the premises
and improvements.
3. At any time during ordinary business hours within the 12 months preceding expiration
of this Agreement, the City has the right to enter the premises to measure,
photograph, show, and view all parts of the premises.
ARTICLE XIII: ADDITION OR REDUCTION IN SPACE
If the Concessionaire requests additional terminal space and the City determines that suitable
space is available and needed, the City may lease the additional space subject to the requirements
of law concerning leasing of Airport Terminal space.
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ARTICLE XIV: CITY-DIRECTED RELOCATION
The Concessionaire acknowledges that the City may require the relocation of the premises, in
whole or in part, if the City determines that relocation is necessary to meet the needs of the
traveling public or the City. If the City requires relocation of the premises, the following applies:
A. City's Responsibilities: The City, at its sole expense, will provide the new space with
interior permanent improvements including floors, ceiling, carpeting, lighting, electricity,
wall finishes, heating and cooling, ventilation, and permanent fixtures similar to those in
the premises.
B. Concessionaire's Responsibilities
1. The Concessionaire, at its sole expense, will relocate all nonpermanent fixtures,
furnishings, and equipment from the premises; provide any additional fixtures,
furnishings, and equipment that the Concessionaire finds necessary or desirable to
fully use the new lease space; and vacate and surrender the former lease space to the
City when the new space is completed. Concessionaire will continue to be liable for
any fees and payments as provided in Article V.
2. The City and the Concessionaire will perform their respective obligations in an
expeditious manner, excluding any delay that is beyond the control of either party.
The new lease space will have a floor area similar in size to the area being vacated
by the Concessionaire. The City will make every reasonable effort to ensure that the
new lease space will provide access and exposure to passenger traffic similar to that
of the former lease space. However, the City will not be responsible for any
financial losses that the Concessionaire may incur due to relocation under this
Article unless the losses are the result of a breach by the City of its obligations under
this Article.
ARTICLE XV: LAWS AND TAXES
This Agreement is subject to all City of Kenai laws and regulations, including those relating to
leasing facilities and granting privileges at city airports.
A. Laws
1. At no expense to the City, the Concessionaire will comply with all federal, City, 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, or to
the use, care, operation, maintenance, and protection of the Airport, including
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matters of health, safety, sanitation, and pollution. The City is neither liable to the
Concessionaire for any diminution or deprivation of the Concessionaire's rights due
to the exercise of any authority, nor is the Concessionaire entitled to terminate the
whole or any portion of this Agreement by reason of the City's exercise of any
authority.
2. The Concessionaire will comply with all City and federal regulations governing
hazardous substances, including hazardous wastes, and will comply with all
instructions of the City with regard to environmental concerns and requirements,
regardless of whether based on specific law, regulation, or order of any governmental
authority. In addition, the Concessionaire assumes responsibility for any spill of oil,
oil-based substance, or hazardous substance attributable to its operation under this
Agreement. With respect to any such occurrence, the Concessionaire will indemnify,
defend, save, and hold the City and its employees harmless from any loss, claim, suit,
or judgment.
3. The Concessionaire will properly handle its spills of hazardous substances. The
Concessionaire will immediately notify the City of any spill that occurs on the
Airport, as well as the action taken, while performing under this Agreement. The
Concessionaire will forward copies of any written spill reports and reports regarding
action taken to the City as soon as they are available.
B. Taxes: The Concessionaire will obtain all necessary licenses, permits, pay all taxes and
special assessments 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
and any lawsuit must be brought before the courts of the State of Alaska.
D. Claims: Concessionaire will notify the City of any claim, demand, or lawsuit arising out of
the rights granted to the Concessionaire under this Agreement. At the City's request, the
Concessionaire will cooperate and assist in the investigation and litigation of any claim,
demand, or lawsuit that affects the rights granted the Concessionaire under this Agreement.
ARTICLE XVI: DEFENSE OR ENFORCEMENT OF AGREEMENT
The Concessionaire will pay all reasonable actual expenses, costs, and attorney fees the City may
incur, with or without formal action, to enforce, defend, or protect this Agreement or the City's
rights under this Agreement, including any expense incurred with respect to environmental
compliance, bankruptcy or any proceeding that involves the Concessionaire, the Agreement, the
premises, improvements, or property on the premises. The Concessionaire will make payment
within 30 days of the date of each notice from the City of any amounts payable under this Article.
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Any amount not timely paid under this Article will constitute a default of the Agreement and will
accrue interest from the date of the notice as provided in Article V of this Agreement.
ARTICLE XVII: INDEMNIFICATION AND INSURANCE
A. Indemnification
1. The Concessionaire will indemnify, defend, and hold the City, its agents, officers,
and employees harmless from any liability, action, claim, suit, or loss for property
damage or personal injury of whatever kind resulting from or arising out of any act or
omission by the Concessionaire or the Concessionaire's agents, employees, or clients
or arising from or connected with the Concessionaire's rights and privileges granted
under this Agreement.
2. In any litigation brought by a third party against the City or the Concessionaire that
specifically challenges the rights granted in Article III, the Concessionaire would
assume the responsibility to defend the City and the Concessionaire unless the City
elects to defend itself. The City will assist in the defense of the rights granted. The
City is not required to indemnify the Concessionaire for any attorney fees the
Concessionaire incurs to defend the City.
B. Insurance
1. The Concessionaire will, throughout the term of this Agreement and at its own
expense, secure and keep in force adequate insurance, as stated below, to protect the
City and the Concessionaire. Where specific limits are stated they are the minimum
acceptable limits. If the Concessionaire's insurance policy contains higher limits, the
City is entitled to coverage to the extent of the higher limits.
a. Comprehensive general liability insurance with coverage limits not less than
ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence
where generally applicable, including in-Terminal operations, independent
contractors, products, and completed operations, broad-form property damage,
blanket contractual, and personal injury endorsements.
b. Worker's Compensation insurance with coverage for all employees engaged in
work under this Agreement as required by AS 23.30.045. The Concessionaire
is responsible for Worker's Compensation insurance for any subcontractor who
directly or indirectly provides services under this Agreement.
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c. Comprehensive automobile liability insurance covering all owned, hired, and
non-owned vehicles with coverage limits not less than $250,000 combined
single limit per occurrence.
2. All insurance required by this Article must meet the following requirements:
a. For comprehensive general liability insurance, name the City additionally
insured.
b. For worker's compensation insurance, general liability and automobile liability
insurance include a waiver of subrogation so that the insurer waives all rights
of subrogation against the City for payments made under the policy.
c. Provide the City notification at least 20 days before any termination,
cancellation, or material change in insurance coverage.
d. All policies will be by a company/corporation currently rated “A-“or better by
A.M. Best.
C. Evidence of Insurance Coverage
1. The Concessionaire will 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.
2. Evidence of insurance coverage must be submitted to the City by May 1, 2024. The
effective date of the insurance will be no later than May 1, 2024.
D. Obligation: The indemnification and insurance-coverage requirements stated in Sections A
and B above do not relieve the Concessionaire of any other obligation under this
Agreement.
E. Increase or Revision: The City may increase the amount or revise the type of required
insurance on written demand without requiring amendment to this Agreement. The City
will base any increase or revision on reasonable and justifiable grounds. Within two weeks
of the written demand, the Concessionaire will submit to the City evidence of insurance
coverage that meets the requirements of the City.
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ARTICLE XVIII: CANCELLATION BY CITY
A. Breach of Agreement
1. The City may cancel this Agreement and recover possession of the premises by giving
the Concessionaire 30 days' advance written notice from the postmark date of the
written notice if any of the following events occur and the breach is not cured within
the above-specified 30 days:
a. The Concessionaire fails to pay when due any rent, fee, penalty, or other charge
specified under this Agreement.
b. A check for any payment to the City is returned for insufficient funds.
c. The Concessionaire uses the premises for purposes not authorized under this
Agreement.
d. A petition in bankruptcy is filed by or against the Concessionaire.
e. A court enters a judgment of insolvency against the Concessionaire.
f. A trustee or receiver is appointed for the Concessionaire's assets in a
proceeding brought by or against the Concessionaire.
g. A lien is filed 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.
h. The Concessionaire fails to operate the business authorized under this
Agreement for a period of more than seven consecutive calendar days without
the City's prior written approval.
i. The cessation or deterioration of any service for any period, which, in the
determination of the City, materially and adversely affects the service the
Concessionaire, is required to perform under this Agreement.
j. The Concessionaire fails to perform any provision or covenant under this
Agreement.
2. In the case of a breach, which is not reasonably curable within 30 days, a cancellation
notice under this Article may be stayed by the City if the Concessionaire begins and
continues expeditious action to cure the breach within the 30-day notice period. The
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determination of "expeditious action" and "not reasonably curable" is at the City's
sole discretion.
B. City's Right of Reentry: As an additional remedy, on giving written notice of cancellation
or termination, the City may reenter any part of the premises on the effective date of
cancellation or termination without further notice of any kind, remove any persons or
property, and regain and resume possession with or without the institution of summary or
legal proceedings or otherwise. Any reentry, however, will not in any manner affect, alter,
or diminish any obligation of the Concessionaire under this Agreement.
C. Additional Rights of the City
1. On termination or cancellation of this Agreement or on reentry, 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. Others may occupy
any part of the premises or the entire premises or a part of the premises together with
other space for the time remaining under this Agreement, and on terms and
conditions the same as or different than those set forth under this Agreement.
2. The City also has the right to repair or to make any structural or other change in the
premises that is necessary, in the City's sole judgment, to maintain the suitability of
the premises for the uses and purposes similar to those granted under this Agreement
without affecting, altering, or diminishing the obligations of the Concessionaire
under this Agreement. The City will charge, and the Concessionaire will pay to the
City within 30 days of billing, the cost of these repairs.
D. Survival of Concessionaire's Obligations:
1. 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 term 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.
2. The amount of damages for the time subsequent to termination or cancellation will
be the sum of the following:
a. Title to all improvements as provided in Article IX, Section C of this
Agreement.
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b. The total monthly financial obligation that would have been paid by the
Concessionaire during the balance of the Term of this Agreement if no
termination or cancellation had occurred. However, the amount will be offset
by any fees or charges received by the City from a succeeding concessionaire.
E. Waiver of Redemption and Damages
1. The Concessionaire waives any right of redemption granted by or under any present
or future law or statute if the Concessionaire is dispossessed for any cause, or if the
City obtains or retains possession of the premises in any lawful manner.
2. The Concessionaire acknowledges that if it is necessary for the City to gain
possession of the premises, the total amount of damages to which the Concessionaire
is entitled is the sum of ONE DOLLAR ($1.00). The Concessionaire also
acknowledges that this provision may be filed in any action as its stipulation fixing
the amount of damages to which it is entitled.
F. Surrender of Possession
1. 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.
2. The Concessionaire will be allowed a maximum of three calendar days after the
effective date of the expiration of this Agreement to remove all of its personal
property, equipment, furniture, trade fixtures, and Entertainment Devices from the
premises and from the Terminal subject to the provisions of Article VIII, Section C
of this Agreement. The Concessionaire and the City agree, as part of the
consideration for this Agreement, that all property remaining on the premises after
these three 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. The Concessionaire will reimburse the City for any cost the City incurs in
removing and disposing of the property.
ARTICLE XIX: CANCELLATION BY CONCESSIONAIRE
The Concessionaire may cancel this Agreement by mutual agreement of the City or giving the
City advance written notice of ten (10) days if any of the following events occur:
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Bar/Lounge Concession Agreement City _____
Page 21 of 27 Concessionaire_____
Concessionaire _____
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.
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.
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 XX: CANCELLATION BY CONCESSIONAIRE
Subsequent Agreement Award: The Concessionaire acknowledges that on the expiration,
cancellation, or termination of this Agreement, the City may award any subsequent concession
agreement by any legal means then available to the City.
ARTICLE XXI: ASSIGNMENT OR SUBLETTING
A, City's Consent: The Concessionaire will not assign this Agreement or any interest, and
will not sublet the premises or any part thereof, or any right or privilege appurtenant
thereto, or suffer any other person, agents and employees of the Concessionaire excepted,
to occupy or use the premises or any portion thereof without first obtaining the written
consent from the City. A consent by the City to one assignment, subletting, occupancy, or
use by another party will not be deemed to be a consent to any subsequent assignment,
subletting, occupancy, or use by another person or entity. Any such assignment,
subletting, occupancy, or use by another person or entity without such consent by the City
will be void and will, at the option of the City, terminate this Agreement. This Agreement
will not, nor will any interest, be assignable as to the interest of the Concessionaire by
operation of law without the written consent of the City. The City agrees that it will not
unreasonably withhold its consent required hereunder.
B. Approval Process: The Concessionaire will submit to the City copies of any proposed
assignment, encumbrance, or sublease bearing the original notarized signatures of all
parties. All covenants and provisions in this Agreement extend to and bind the legal
representatives, successors, and assigns of the parties.
C. Merger, Consolidation, or Reorganization:
1. The City will not unreasonably withhold its consent to an assignment of this
Agreement by the Concessionaire to a corporation that results from a merger,
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Bar/Lounge Concession Agreement City _____
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Concessionaire _____
consolidation, or reorganization of the Concessionaire to a corporation that purchases
all or substantially all of the assets of the Concessionaire or to any corporation that
controls or is controlled by or is under common control with the Concessionaire.
2. For purposes of this Section, "control" of any corporation is deemed vested in the
person or persons owning more than 50 percent of the voting power for electing the
board of directors of the corporation.
ARTICLE XXII: GENERAL COVENANTS
A. Execution by City: This Agreement is not effective until signed by the City Manager.
B. Approval by City: The City may not unreasonably withhold any approval required under
this Agreement.
C. Notices: Any notice required under this Agreement must be hand delivered, sent by
certified mail or by electronic transmission in such a way as to confirm receipt to the
appropriate party, 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
mailed.
D. Modification: The Concessionaire acknowledges that the City may make any modification
to this Agreement necessary to meet the revised requirements of federal or City grants, to
operate the Airport, or to conform to the requirements of any revenue bond covenant to
which the City of Kenai is a party and may do so without formal amendment. However, a
modification may neither reduce the rights or privileges granted the Concessionaire under
this Agreement nor cause the Concessionaire financial loss.
E. Interrelationship of Provisions: All provisions of this Agreement and the associated
proposal documents are essential parts of this Agreement and are intended to be
cooperative, to provide for the use of the Airport, and to describe the respective rights and
obligations of the parties to this Agreement. In the event of any irreconcilable conflict
between the Agreement and the incorporated proposal of the Concessionaire, the
provisions of Agreement will prevail. Each party will fully perform all provisions of this
Agreement and the associated proposal documents.
F. Validity of Parts: If any part of this Agreement is declared invalid by a court of competent
jurisdiction, the remaining parts continue in full force.
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Bar/Lounge Concession Agreement City _____
Page 23 of 27 Concessionaire_____
Concessionaire _____
G. Radio Interference: At the City's request, the Concessionaire will discontinue the use of
any machine or device that interferes with any government-operated transmitter, receiver,
or navigation aid until the cause of the interference is eliminated.
H. Discrimination: The Concessionaire may not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or
City law. The Concessionaire recognizes the right of the City to take any action necessary
to enforce this covenant, including actions required by any federal or City law.
I. Nondiscrimination: The Concessionaire will undertake a nondiscrimination program
required by 14 CFR, Part 152, Subpart E, to ensure that no person will be excluded from
participating in any employment activity covered by 14 CFR, Part 152, Subpart E, on the
grounds of race, creed, color, national origin, or sex. The Concessionaire may not exclude
any person on these grounds from participating in or receiving the services or benefits of
any program or activity covered by the Subpart. The Concessionaire further understands
that it will require its covered sub organizations to provide assurances to the City that they
will also undertake nondiscrimination programs and require assurances from their sub
organizations, as required by 14 CFR, Part 152, Subpart E.
K. Vacation: At the expiration, cancellation, or termination of this Agreement, the
Concessionaire must promptly, peaceably, and quietly vacate the premises, remove all
personal property, and return possession to the City. The premises must be left in a clean,
neat, and presentable condition, except for reasonable wear and tear, to the satisfaction of
the City.
L. No Waiver: The City's failure to insist in any one or more instances on the strict
performance by the Concessionaire of any provision in this Agreement is not a waiver nor
relinquishment for the future, but the provision will continue in full force. A City waiver
of any provision in this Agreement cannot be enforced nor relied on unless the waiver is in
writing and signed on behalf of the City.
M. Disasters: If, in the determination of the City, a fire, flood, earthquake, or other disaster
damages the Airport so extensively as to render it untenantable, either party may elect to
terminate this Agreement on 30 days' written notice to the other party. If this Agreement is
terminated because of a disaster, the City will prorate the fees payable under this
Agreement up to the time the Airport becomes untenantable.
N. Condemnation: If the Airport is condemned by any proper authority, this Agreement ends
on the date the Concessionaire is required to leave the Airport. 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 Airport by
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Bar/Lounge Concession Agreement City _____
Page 24 of 27 Concessionaire_____
Concessionaire _____
the Concessionaire, according to the provisions of the then-current Alaska Administrative
Code.
O. Liens: The Concessionaire will keep the premises free of all liens, pay all costs for labor
and materials arising out of any construction or improvements by the Concessionaire on the
premises, and hold the City harmless from liability for any liens, including costs and
attorney fees. By this provision, the City does not recognize that it is in any way liable for
any liens on the premises.
P. Quiet Enjoyment: The City covenants that it has full, unencumbered title to the 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.
Q. Captions: The captions of the Articles and Sections of this Agreement are for convenience
only and do not necessarily define, limit, describe, or construe the contents of any Article
or Section. The use of the singular or plural form of words is intended to include the
singular and plural, as appropriate.
R. Proposal Documents: The Request for Proposals, the Notice Inviting Proposals, the
General Instructions to Proposers, the Proposal Submittal Form, including the Specific
Proposal Requirements, the Concessionaire's proposal, any addenda, and the required
proposal deposit are parts of this Agreement, and each party will fully perform its
obligations under all provisions of these documents.
S. Entire Agreement: This Agreement, including any amendments and all items listed under
Section R of this Article, 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 Stated in section D. above.
T. Force Majeure: Except for the payment of fees, neither the City nor the Concessionaire is
in violation of this Agreement if it is prevented from performance by reason of strike,
boycott, labor dispute, embargo, shortage of energy or materials, act of God, act of public
enemy, act of superior governmental authority, weather condition, riot, rebellion, sabotage,
or any other circumstance for which it is not responsible and which is beyond its control.
U. Time: Time is of the essence in the performance of all rights and obligations of the parties
to this Agreement.
V. Employee Parking: Restaurant employees may use non-exclusive employee vehicle
parking facilities at no charge. All employees must register their vehicle(s) at the Airport
Manager’s office to receive a vehicle-parking permit to park while on the job.
Concessionaire shall be held accountable for Concessionaire’s employees’ use of
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Bar/Lounge Concession Agreement City _____
Page 25 of 27 Concessionaire_____
Concessionaire _____
designated vehicle parking facilities and shall assure that employees comply with all
applicable Airport Directives.
W. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not
limited to, recording costs shall be paid by Concessionaire.
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Bar/Lounge Concession Agreement City _____
Page 26 of 27 Concessionaire_____
Concessionaire _____
IN WITNESS WHEREOF, the parties have set their hands the day and year stated in the
acknowledgment below.
(If the Concessionaire is a partnership or joint venture, all general partners or members of the
joint venture must sign; if the Concessionaire is a corporation, the signature of one authorized
representative is sufficient unless the corporation requires two or more signatures.)
LESSOR:
CITY OF KENAI
_________________________
Terry Eubank, City Manager
CONCESSIONAIRE:
The Upper Deck LLC
__________________________________
Rod Peterkin – President
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of __________________, 2024, Rod Peterkin
President, The Upper Deck LLC, 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
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Bar/Lounge Concession Agreement City _____
Page 27 of 27 Concessionaire_____
Concessionaire _____
THIRD JUDICAL DISTRICT )
THIS IS TO CERTIFY that on this _____ day of __________________, 2024, personally
appeared before me, Terry Eubank, known to me and to me known to be the City Manager of
the City of Kenai, Alaska, and who acknowledged before me that the foregoing instrument was
freely and voluntarily executed on behalf of the City of Kenai, for the uses and purposes set forth
and with full authority of the City of Kenai to do so.
________________________________
Notary Public in and for Alaska
My Commission expires: ________
Approved by Kenai City Council on ________________
Approved as to lease form by City Attorney __________
Approved by Finance Director __________
Approved by City Manager __________
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Certified Activity Report
Bar/Lounge Concession Sales
Certified Activity Report
Concession Gross Receipts
Concessionaire: ____________________ Month ________, ________Year
AMOUNT
Total receipts for the month $ ____________________________________________
(CAR due on the 10th day of the calendar month succeeding the month for which the rental
installment is applicable.)
Remit to: City of Kenai
210 Fidalgo Ave.
Kenai, AK 99611
Certification:
I hereby certify that the figures presented are true and correct.
Business: ___________________________________________
Address: ___________________________________________
___________________________________________
Signature: ___________________________________________
Phone No.: ___________________________________________
Copy of this report must also be submitted to the Airport Manager’s office.
Exhibit A
30
W
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REF. N2FIRST FLOOR PLAN - EXHIBIT
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1 SECOND FLOOR PLAN - EXHIBIT
ENTRY
ELEC.MECH.CONFERENCE RM.
JAN.
VENDING TENANT 1
DEPARTURE
SEATING BAGGAGE
CLAIM
BAGGAGE
AREA
DEPARTURE
WAITING
MENS WOMENS
ARRIVAL
ENTRY
WAITING
RC. 1
KITCHEN
COR.
ARRIVAL
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RESTAURANT
STOR.
RC. 2 RC. 3
LOBBY
TICKETING
QUEUING
DEPARTURE
ENTRY
MENS WOMENS
AIR. TEN.1 AIR. TEN.2 AIR. TEN.3
WORK
ROOM
AIR. A.
MANG.
AIRPORT
MANAGER
BOARDING
AREA
BAGGAGE
MAKE-UP AREA
DEPARTURE
GATES
LOUNGE
STORAGE
ELEVATOR
COR.
STAIRS 2
COMM.
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M W
REF. N
STOR.
KENAI MUNICIPAL AIRPORT
designstudios
ARCHITECTURE + PLANNINGTERMINAL FLOOR PLAN - KENAI, ALASKA
%
31
Exhibit C
KENAI MUNICIPAL AIRPORT TERMINAL BAR
CITY OWNED EQUIPMENT LIST
1.Cocktail Service Station, No. 1 1 each
2.Bar Top Extension Drain board with Hand Sink 1 each
3.Three Compartment Sink, 24 inches deep 1 each
4.Metal Spacer 1 each
5.5 Door Refrigerated Beer Cooler 1 each
6.Wire Shelving:
1 20” x 36” x 86”, 2 tier (over fridge)
1 18” x 42” x 86”, 4 tier with 8 each “S” clips
2 18” x 36” x 86”, 8 tier
7.Walk-In Cooler 1 each
32
Sponsored by: Administration
New Text Underlined; [DELETED TEXT BRACKETED]
CITY OF KENAI
RESOLUTION NO. 2024-12
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A BAR AND LOUNGE
CONCESSION AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT.
WHEREAS, on January 31, 2024, the City requested proposals to lease the airport terminal bar and
lounge for an initial period of three years beginning on May 1, 2024 through April 30, 2027; with an option
of two successive one-year terms by mutual written consent of the Owner and Concessionaire; and,
WHEREAS, one responsive proposal was received on March 1, 2024, and evaluated based on
experience, qualifications, management and operations plan, DBE certification, and proposed monthly
percentage of gross receipts; and,
WHEREAS, the summary of proposal points received from the four evaluators are as follows:
Name Score
The Upper Deck 191
; and,
WHEREAS, the Upper Deck submitted a responsible proposal for a bar and lounge concession at the
Kenai Municipal Airport receiving the greatest number of points; and,
WHEREAS, City Administration has determined that this proposal meets all requirements; and,
WHEREAS, the Airport Commission at its regularly scheduled meeting of March 14, 2024 recommended
__________.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the City Manager is authorized to enter into a bar and lounge concession agreement
with The Upper Deck for the Kenai Municipal Airport for the period May 1, 2024 through April 30, 2027.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 20TH DAY OF MARCH, 2024.
___________________________________
Brian Gabriel Sr., Mayor
ATTEST:
___________________________________
Michelle M. Saner, MMC, City Clerk
33