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CITY OF SEWARD, ALASKA <br /> RESOLUTION 2009 -137 <br /> ....1 <br /> Center for one year while ADF &G determines whether to exercise its option to enter assume <br /> operation of the SeaLife Center; and <br /> WHEREAS, with the understanding that SAAMS would continue to operate the SeaLife <br /> Center during the one -year period in which ADF &G may exercise its option, and based on <br /> representations by SAAMS that the amount needed to mothball the SeaLife Center for one (1) year <br /> was $700,000 for fiscal year 2006, the City and SAAMS agreed in the SAAMS AGREEMENT that <br /> SAAMS would maintain a Termination Fund in an amount of $700,000 for fiscal year ending <br /> September 30, 2006 and increasing 3% each year; and <br /> WHEREAS, in fall 2008, SAAMS experienced a temporary cash flow shortage and asked <br /> for a temporary reduction in the amount to be held in the Termination Fund; and <br /> WHEREAS, the City supports the mission of SAAMS and was willing to take on, for a <br /> limited period, the responsibility of funding the majority of the Termination Fund; and <br /> WHEREAS, at that time, SAAMS explained the need for the proposed changes and its plan <br /> to eliminate the cash flow shortage and to fully fund the Termination Fund by September 30, 2009; <br /> and <br /> WHEREAS, to assist SAAMS in managing its operating cash flow during the fall and winter <br /> months, a temporary amendment to the SAAMS AGREEMENT was approved in January 2009 by <br /> the City which granted the option to SAAMS to access up to a total of $500,000 from the <br /> Termination Fund from March 1, 2009 until September 30, 2009 and replenish the fund to the <br /> required level on that date; and <br /> WHEREAS, this summer and fall, SAAMS entered in a renegotiation of the SAAMS <br /> AGREEMENT with the City with four principal objectives which have been achieved in the new <br /> SAAMS AGREEMENT: 1) Eliminate the Tidelands lease and the accompanying $9,000 annual <br /> lease payment to the City; 2) Reduce the Termination Fund requirement; and 3) Eliminate the annual <br /> maintenance plan and remove certain language regarding facility maintenance; 4) Shift the burden of <br /> operations and maintenance to the City for the one year period required by the Cooperative <br /> Agreement following a decision to no longer operate the SeaLife Center. The City is obligated to <br /> operate the SeaLife Center to the standard of other well' maintained and well' operated marine <br /> research facilities throughout the United States. The SeaLife Center's obligation is limited to that of <br /> a mothballed facility; and <br /> WHEREAS, the City and SAAMS negotiated the following amendments: 1) Inserted "climate <br /> change and conservation" as use of the Improvements (Section 3.6.1); 2) Modified budget reporting <br /> requirements (Section 3.11); 3) Inserted the Bank Financial Statements requirement included in the <br />