HomeMy WebLinkAboutResolution No. 2025-01r KENAI
CITY OF KENAI
RESOLUTION NO. 2025-01
Sponsored by: Administration
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A RESTAURANT
CONCESSION AGREEMENT FOR THE KENAI MUNICIPAL AIRPORT.
WHEREAS, on October 17, 2024, the City requested proposals to lease the airport terminal restaurant
for an initial period of three years beginning on March 1, 2025 through February 28, 2028; with an option
of two successive one-year terms by mutual written consent of the Owner and Concessionaire; and,
WHEREAS, two responsive proposals were received on December 5, 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
Debbie's Food Services LLC 312
Consolidated Development and 240
MGMT
; and,
WHEREAS, Debbie's Food Services LLC submitted a responsible proposal for a restaurant 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 January 9, 2025 recommended
approval.
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 restaurant concession agreement with
Debbie's Food Services LLC for the Kenai Municipal Airport for the period March 1, 2025 through
February 28, 2028 with two one year extensions that may be authorized by the City Manager without
further Council action.
Section 2. That this Resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15T" DAY OF JANUARY, 2025.
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Brian Gabriel Sr., Mayor
AZT ST:
i e n r, MC, City Clerk
New Text Underlined; [DELETED TEXT BRACKETED]
MEMORANDUM
TO: Mayor Gabriel and Council Members
THROUGH: Terry Eubank, City Manager
FROM: Derek Ables, Airport Manager
DATE: January 4, 2025
SUBJECT: Resolution No. 2025-01 - Authorizing the City Manager to Enter into a
Restaurant Concession Agreement for the Kenai Municipal Airport
On October 17, 2024, the airport released an RFP for the Restaurant Concession. The goal of
the RFP is to provide convenient food service for travelers as well as community members that
want to stop in for a meal.
On December 5, 2025, two responsive proposals were received and scored: Debbie’s Food
Services LLC and Consolidated Development and MGMT. Debbie’s Food Services LLC proposed
to operate between the hours of 8:00 AM – 6:00 PM Monday through Saturday and 11:00 AM-
2:00 PM Sunday.
Debbie’s Food Services is proposing to pay 12% of gross sales per month as well as $1,000 for
the City’s maintenance of equipment.
Your support for a Restaurant Concession with Debbie’s Food Services is respectfully requested.
Attachments- Agreement
Restaurant Concession Agreement 1/10/2025 City _____
Page 1 of 29 Concessionaire_____
Concessionaire _____
CITY OF KENAI
KENAI MUNICIPAL AIRPORT
RESTAURANT CONCESSION AGREEMENT
Debbie Adam, individually (Concessionaire), Debbie’s Food Services, LLC, 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 restaurant concession services at the Kenai Airport, the term
of which is March 1, 2025 through February 28, 2028.
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 Restaurant 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 Restaurant Concession in the
Terminal.
E. The City solicited competitive bids for the Restaurant Concession, and the
Concessionaire was the successful bidder.
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 Restaurant Space 102/103/104/105/106 (Exhibit B);
Restaurant Concession Agreement 1/10/2025 City _____
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Concessionaire _____
3. List of city-owned equipment in the restaurant (Exhibit C);
4. Restaurant Safety & Cleaning List (Exhibit D);
5. Successful Proposal (Exhibit E): and
6. 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
Restaurant Concession during the calendar month for which payment is made.
The format of the Certified Activity Report is specified in Exhibit A.
E. Concessionaire: The successful bidder for this Restaurant 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 City of
Kenai or 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):
The premises known as the restaurant area of the Kenai Municipal Terminal
within the Northwest Quarter (NW ¼) of the Southeast Quarter (SE ¼),
Section 32, Township 6 North, Range 11 West, 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 3 of 29 Concessionaire_____
Concessionaire _____
L. Vending Machine: A coin-operated device for selling nonalcoholic beverages or
food items.
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., March 1, 2025 and ending at 12:00 midnight on February 28, 2028.
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 monthly rental fee.
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 the following rights:
A. Non-Exclusive Rights: The City grants the Concessionaire the following non-
exclusive rights:
1. To prepare, serve, or sell food and beverage items, except vending
machines.
2. To provide in-flight meal service for airline crews and passengers.
3. To provide delayed-flight meal service inside aircraft parked at the Terminal.
4. To prepare, serve, and sell food and nonalcoholic beverages to customers in
the Airport Terminal or off the Airport.
5. To install and operate Entertainment Devices on the premises when
approved in writing by the Airport Manager.
Restaurant Concession Agreement 1/10/2025 City _____
Page 4 of 29 Concessionaire_____
Concessionaire _____
B. 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).
C. Reservations: The City reserves the following rights:
1. To authorize airlines to provide Restaurant service in airline VIP rooms.
2. To grant others any right or privilege not specifically and exclusively granted to
the Concessionaire.
3. To allow airlines to provide complementary coffee and snacks during hours
when food and beverage service provided under this agreement is not
available.
4. 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.
D. 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.
E. Hours/Days of Operation: The Concessionaire will be open for a minimum of 60
hours per week, 7 days per week, with the hours of operations outlined in their
Restaurant Concession Agreement 1/10/2025 City _____
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Concessionaire _____
proposal and attached as exhibit E. The Airport Manager must approve changes to
hours of operation, in writing. If the concessionaire requests to operate for fewer
hours then the City shall have the option of advertising for proposals and
negotiating a new contract and terminating the existing contract if it is in the best
interest of the City.
F. 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.
G. Closure for Repairs: The parties recognize that major repairs of the building and
city owned equipment 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 March 1,
2025. 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. Monthly Percentage of Gross Receipts: For the rights and privileges granted
under this Agreement, the Concessionaire will pay the City a monthly percentage
of gross receipts of 12% plus applicable sales tax.
The percent required to be paid shall be paid for each calendar month during the
term of this Agreement and shall be due and payable on the tenth (10th) day of the
calendar month succeeding the month for which the payment is applicable.
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 Manager’s office at the
Airport.
Restaurant Concession Agreement 1/10/2025 City _____
Page 6 of 29 Concessionaire_____
Concessionaire _____
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.
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. The City
shall pay for water and sewer. All other utilities and services including gas,
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. Catering: Concessionaire may provide catering services to private aircraft as well
as off-premises as part of the restaurant function; however, all catering sales are
also subject to the same fees as described above. Catering service is not
exclusive to the restaurant concession.
D. Waiver of Monthly Rental:
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, or city owned equipment, 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 7 of 29 Concessionaire_____
Concessionaire _____
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.
2. For the purposes of this Section, if the waiver period does not fall on the first or
last day of the month, the minimum rent may be prorated on a daily basis to
determine the Concessionaire's correct monthly fee.
3. At its discretion, the City will either credit any overpayment resulting from a
waiver toward future payments due the City or refund the overpayment to the
Concessionaire.
E. 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.
F. 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.
G. Security Deposit: The successful proposer will be required to provide a security
deposit or bond for the same in the amount of $3,000.00. 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 Restaurant Concession
Agreement.
H. Closure Fees: Concessionaire shall be open a minimum of 60 hours per week, 7
days per week. The City may require the Concessionaire to pay a penalty of $200 per
week for any week the Concessionaire is not open a minimum 60-hours, 7 days per
week 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
I. Maintenance Fee: Concessionaire shall pay a $1,000 monthly maintenance fee to the
city for the maintenance, repair, and replacement of city owned equipment.
Restaurant Concession Agreement 1/10/2025 City _____
Page 8 of 29 Concessionaire_____
Concessionaire _____
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
that it will not discriminate against any business owner because of the owner’s race,
color, national origin, or sex in connection with the award or performance of any
concession agreement covered by 49 CFR, Part 23, Subpart F. The Concessionaire
agrees to include the above statements in any subsequent concession arrangements
that it enters and cause those businesses to similarly include the statements in further
agreements.
The Concessionaire will comply with all applicable laws and regulations regarding the
fair and equitable treatment of DBEs now in effect or which may subsequently take
effect during this Agreement. The Concessionaire will include a provision to this effect in
any subcontract or other arrangement for DBE participation entered into under this
Agreement.
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.
Restaurant Concession Agreement 1/10/2025 City _____
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Concessionaire _____
ARTICLE VIII: OWNERSHIP OF EQUIPMENT AND IMPROVEMENTS
A. City-owned Equipment: The City holds title to certain restaurant 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 premises 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 terminal
employees, the traveling public and other users of the Airport. The Concessionaire will
operate its Concession in accordance with the highest standards and practices of the
food and 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 terminal employees, 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.
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Concessionaire _____
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 carpets, 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 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
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Concessionaire _____
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. Be responsible for all routine care, and cleaning of all City owned
equipment. Pay a $1000 monthly maintenance fee to the city for the
repair, maintenance, and replacement of city owned equipment. Be
responsible for all repairs/replacement costs associated with
Concessionaire owned equipment. A Restaurant Safety & upkeep List,
Exhibit D, will be strictly monitored and enforced by the City.
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 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.
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Concessionaire _____
2. The City may require the Concessionaire to perform necessary repairs to the
premises, furniture, trade fixtures, equipment, and entertainment devices 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.
4. Concessionaire will be responsible to have the hood system, including all fire
protection, professionally cleaned and inspected at the Concessionaire’s
expense, 3 times per year. A report will be provided to the Airport
Administration office.
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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Concessionaire _____
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
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Concessionaire _____
furnished by the City, including failure or interruption of electrical energy, space
heating or cooling, or any public 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 15 of 29 Concessionaire_____
Concessionaire _____
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.
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 rental 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.
3. The Concessionaire is responsible to maintain an account and all costs for
the natural gas utility for the restaurant/café.
Restaurant Concession Agreement 1/10/2025 City _____
Page 16 of 29 Concessionaire_____
Concessionaire _____
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 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 17 of 29 Concessionaire_____
Concessionaire _____
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. 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 18 of 29 Concessionaire_____
Concessionaire _____
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.
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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 19 of 29 Concessionaire_____
Concessionaire _____
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 March 1,
2025. The effective date of the insurance will be no later than March 1,
2025.
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.
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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 20 of 29 Concessionaire_____
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 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 21 of 29 Concessionaire_____
Concessionaire _____
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.
b. The total monthly rental 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 22 of 29 Concessionaire_____
Concessionaire _____
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:
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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 23 of 29 Concessionaire_____
Concessionaire _____
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, 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.
Restaurant Concession Agreement 1/10/2025 City _____
Page 24 of 29 Concessionaire_____
Concessionaire _____
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.
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
Restaurant Concession Agreement 1/10/2025 City _____
Page 25 of 29 Concessionaire_____
Concessionaire _____
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.
J. National Emergency: If the federal government declares a national emergency,
the Concessionaire may not hold the City liable for its inability to perform any part
of this Agreement resulting from the national emergency.
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
Restaurant Concession Agreement 1/10/2025 City _____
Page 26 of 29 Concessionaire_____
Concessionaire _____
improvements placed on the Airport by 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
Restaurant Concession Agreement 1/10/2025 City _____
Page 27 of 29 Concessionaire_____
Concessionaire _____
the job. Concessionaire shall be held accountable for Concessionaire’s
employees’ use of designated vehicle parking facilities and shall assure that
employees comply with all applicable Airport Directives.
W. COSTS AND EXPENSES: Costs and expenses incidental to this lease, including
but not limited to, recording costs shall be paid by Concessionaire.
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Page 28 of 29 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:
Debbie’s Food Services LLC
__________________________________
Debbie Adam, Owner
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of __________________, 2025, Debbie
Adam, Owner/Manager of Debbie’s Food Services 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 )
Restaurant Concession Agreement 1/10/2025 City _____
Page 29 of 29 Concessionaire_____
Concessionaire _____
)ss
THIRD JUDICAL DISTRICT )
THIS IS TO CERTIFY that on this _____ day of __________________, 2025,
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 __________
Certified Activity Report Exhibit A
Restaurant Concession Sales
Certified Activity Report
Concession Gross Receipts
Concessionaire: ____________________ Month ________, ________Year
% RATE AMOUNT
Total receipts for month $ _____________ X ________% = $ __________
Sales tax (the lessor of 6% or $30.00) = $
Total Percentage Rent due: $ __________
(Due and payable 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.
~
Municipal Airport
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REF. N2FIRST FLOOR PLAN - EXHIBIT
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1 SECOND FLOOR PLAN - EXHIBIT
ENTRY
ELEC.MECH.CONFERENCE RM.
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VENDING TENANT 1
DEPARTURE
SEATING BAGGAGE
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DEPARTURE
WAITING
MENS WOMENS
ARRIVAL
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RC. 2 RC. 3
LOBBY
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designstudios
ARCHITECTURE + PLANNINGTERMINAL FLOOR PLAN - KENAI, ALASKA DATE, 10.2 1.2019 ~ K+A
Equipment List Page 1 of 1 EXHIBIT C
KENAI MUNICIPAL
RESTAURANT EQUIPMENT LIST
1. Shelving, 5 tier: 10 each
24" x 60" 2 each
24" x 48" 1 each
24" x 42" 1 each
24" x 36" 2 each
18" x 42" 5 each
Posts, 86" 24 each
"S" Clips 8 each
2. Dish Counter with Hand Sink 1 each
3. Trash Bin with Cover 1 each
4. Soiled Dish Table 1 each
5. Dishwasher 1 each
6. Clean Dish Table 1 each
7. Hot Water Booster 1 each
8. Pot Sink, 3 Compartment, 91" long 1 each
9. Wall mounted shelf, 2 tier 1 each
10. Hood with Ansul Fire Suppression System 1 each
11. Range, Gas 1 each
12. Fryers with Space, Gas 2 each
13. Work Station with Preparation Sink 1 each
14. Salad/Sandwich Station, Refrigerated 1 each
15. Double Over Shelf 1 each
16. Freezer/Cooler Walk-In 1 each
17. Can Opener 1 each
18. Back Counter, Wood Fabrication 1 each
19. Glass Filler/Sink 1 each
20. Coffee and Hot Water Maker 1 each
21. Service Counter, Wood Fabrication 1 each
22. Slicer 1 each
23. Worktable, Mobile 1 each
24. Ticket Holder 1 each
The City estimates the cost of replacing these items to be in access of
$92,000 at the expense to the City.
Signed by: _______________________________________Owner/ Operator Date: _____________________
Exhibit D
RESTAURANT SAFETY & MAINTENANCE LIST
Year ________
GREASE TRAP Cleaning JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
1
Every 1 wks (minimum)
(Initial & Date cleaning)
EXTINGUISHERS
2 Are automatic dry chemical
extinguishing systems over
ranges, grills, & fat fryers
present?
3 Do the automatic extinguishing
systems have current inspections
tags?
4 Are the automatic temperature
shut-offs on the fryer(s)
operational?
5 Are the exhaust filter(s) cleaned
at least once a week?
6 Are exhaust systems(s) cleaned
Tri-annually by a qualified
contractor?
7 Are fire extinguishers properly
wall-mounted?
8 Is there at least 3 feet of
clearance around the portable
fire extinguishers?
SPRINKLER SYSTEMS
9 At least 18 inches of clearance
between the sprinkler heads and
any stored materials?
FIRE SAFETY
10 Are combustibles stored at least
30 ft. from any heat source?
11 Are all exits unlocked during
business hours?
12 Are all exits marked, illuminated,
and clear of obstructions?
13 Are non-exits identified?
14 Are floors free of grease?
1. Experience and Qualifications
a. Food and Beverage Industry Experience
Debbie's Bistro has been operating in Soldotna since April 2024. We started by offering deli-style
sandwiches served on 7 inch waffles cut in half, and have expanded our menu to include waffle pizzas,
salads, and soups. We also serve coffee, espresso drinks, and tea, as well as a selection of baked goods.
We've taken care to design our menu to utilize as many common ingredients as possible to control
costs and reduce waste. Also, as one of the only dedicated gluten-free restaurants in the region, we can
easily accommodate diners (travelers and local residents) who must avoid gluten. We also
accommodate other diet restricted diners with dairy and egg-free options. We also do special orders for
baked goods.
We have established relationships with Boar's Head for high-quality meats and cheeses as well as a
local roaster for our coffee. While we are still fairly new we have received good community response
and have acquired a number of regular local customers which continues to grow.
During the summer we received a large amount of tourist traffic and learned to optimize our operations
to deal with sudden rushes in demand. We are looking for a space that will give us more traffic,
particularly in the winter, as well as a larger and more fully-equipped kitchen so that we can expand our
menu offerings. Most items on our menu can be prepared quickly, which will be highly relevant in an
airport setting.
2. Management and Operations Plan
a. Key Personnel
-Debbie Adam -owner of Debbie's Bistro and also the manager. Debbie has designed the menu,
created recipes for waffles and baked goods, and has worked in every aspect of the business. She is a
current Certified Food Protection Manager (CFPM) and will be directly involved in daily operations.
/
1
:. James Adam -Provides support in administrative and technical areas. He has general management
experience and holds an MBA. Also has been providing additional labor during peak hours. James
plans to get his CFPM certification as well so he can be a suitable backup manager if Debbie is
unavailable for an extended time.
-Staff-If selected, Debbie's Bistro will hire sufficient kitchen and customer service staff. We would
anticipate hiring at least 4 staff initially and scaling as needed. Debbie will be conducting most of the
training for new staff.
b. Days and Hours of operation.
Debbie's Bistro proposes operating from 8:00 AM to 6:00 PM Monday-Saturday and 11:00AM to
2:00PM on Sunday, with reduced staffing during slower hours and full staffing during peak hours.
During reduced hours, coffee, beverages, grab-and-go options and limited menu items will remain
available to ensure continuous service.
Monday-Saturday: 8am-6pm
Sunday: 11am -2pm
These are our initial proposed hours -we would strive to remain flexible by shifting hours based on
airport traffic patterns and/or seasonal demand if appropriate.
c. Proposed Menu
-Coffee & Espresso drinks ($2-$7)
-Waffle Sandwiches ($8-$18)
-Waffle Pizza ($11-$15)
-Salads ($9-$12)
-Soup ($8)
-Baked goods ($3-$6)
-Seasonal items (e.g., holiday-themed baked goods or dishes that incorporate seasonal produce)
The full menu for our current location is attached. We would plan to expand our offerings with access
to a more fully equipped kitchen, and prices may change depending on costs associated with operating
in the airport.
d. Services
Debbie's Bistro will meet the needs of airport customers by offering:
1. On-Premises Dining: Comfortable seating with quick service for patrons who wish to enjoy
their meals onsite. We plan to adopt a counter-service model (rather than table service) to keep
staffing requirements low and make fulfilling orders more efficient.
2. Carry-Out Orders: Efficient processing for takeout orders, including an optional pre-order
system (website) to reduce wait times.
3. Special Orders: Special orders for gluten-free baked goods (cakes, etc).
4. Speed and Convenience: Most of the items on our menu can be prepared quickly. Orders will
be prepared in 5-20 minutes using an optimized kitchen layout and workflow.
5. Customer-Centric Service: Staff will be trained to address dietary restrictions, recommend
menu items, and maintain a clean, inviting environment. We also plan to have guest Wi-Fi
available.
Debbie's Bistro
A dedicated Gluten-Free eatery
W a ff I e S a n d w i c h e s
Breakfast Sausage -$12.99
Sausage, spinach , pepperjack
BST -$12.99
Bacon, spinach, tomato, cheddar
Ultimate Breakfast -$14.99
Sausage , bacon, spinach, pepperjack
BBQ Chicken -$13.99
BBQ Sauce, spinach, provolone
Ham Club -$13.99
Tomato, Spinach, Swiss, Mustard
Greek Turkey -$13.99
Spinach, tomato, cucumber, tzatziki
Turkey Cranberry -$15.99
Cranberry Sauce and spinach on focaccia waffle
Pastrami -$14.99
Provolone, spinach, tomato, hummus
Spicy Roast Beef -$14.99
Spinach, tomato, pepperjack, spicy mayo
Mediterranean Veggie -$10.99
Spinach, tomato, cucumber, hummus
PB & J -$8.99
Peanut Butter and Strawberry Jam
Wa ff I e C he es e m e It -$1 0 . 9 9
A combination of all our cheeses
W a ff I e P i z z a
Pizza Bianca -$10.99
Olive oil, tomato, spinach, cheese, seasoning
BBQ Chicken Pizza -$14.99
Waffle pizza with BBQ Chicken and Bacon
Soup & Salad
House Salad -$8.99
Spinach, cucumber, tomato, and dressing
BBQ Chicken Salad -$12.99
Spinach salad with BBQ Chicken and bacon
Soup of the Day-$7.99
Served with quarter focaccia waffle
W a ff I e Tr e a ts
Just a Waffle -$7.99
Served with maple syrup and whipped cream. Fruit
optional
Chocolate Banana Sandwich-$8.99
Waffle with Dark Chocolate Hummus and banana
Note: Our waffles are Vegan -no dairy, egg , or soy ·contains almonds and coconut
44539 Sterling Hwy Ste 100, Soldotna AK 99669
Phone: 907-252-9183
Debbie's Bistro
A dedicated Gluten-Free eatery
Coffee & Tea 8oz 12oz 16oz
Brewed Coffee $2.75 $3.25 $3.75
America no $2.75 $3.25 $3.75
Latte (available Iced) $3.75 $4.25 $5.00
Cappuccino $3.75 $4.25 $5.00
Mocha & White Mocha (available Iced) $4.25 $4.75 $5.25
Pumpkin Spice Latte (available Iced) $4.25 $4.75 $5.25
Red Eye $3.75 $4.25 $5.75
Tea $2.25 $2.50 $3.00
Chai tea latte (available Iced) $4.00 $4.75 $5.25
Hot chocolate $2.75 $3.50 $4.25
Single Double Triple Quad
Espresso single & double $2.00
Macchiato single & double $2.50
·oat, 1% or almond milk available on request
'Whipped Cream available!
Syrups $0.50
Caramel, cinnamon, chocolate, coconut, hazelnut, trench vanilla, macadamia nut, peppermint, toasted marshmallow
Cold Beverages
Bottled Water $1.00
Pepsi / Diet Pepsi $2.00
Sparkling Apple Juice $2.50
La Croix Sparkling Water $2.25
44539 Sterling Hwy Ste 100, Soldotna AK 99669
Phone: 907-252-9183
$3.00 $4.00
$3.50 $4.50
20oz
$4.25
$4.25
$5.75
$5.75
$6.00
$6.00
$6.25
$3.25
$5.75
$4.75
$5.00
$5.50