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Sponsored by: Corbridge
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A
LEASE AND OPERATING AGREEMENT WITH THE CHUGACH
REGIONAL RESOURCES COMMISSION AND TERMINATING THE
OPERATING AGREEMENT WITH THE QUTEKCAKNATIVE TRIBE FOR
OPERATING AND MAINTAINING THE SEWARD MARICULTURE
RESEARCH CENTER AND SHELLFISH HATCHERY ON THE SITE
DESCRIBED AS TRACT lB, WATERFRONT TRACTS SUBDIVISION,
MARICULTURE ADDITION, ACCORDING TO PLAT 97-18, SEWARD
RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF
ALASKA, EXCEPTING THE PEDESTRIAN PATHWAY
WHEREAS, the City is the owner of real property ("Property") located in the City of
Seward, Alaska; and
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WHEREAS, the City, as Lessor, leased the Property to the University of Alaska (the
"University") as Lessee from July 1,1970 through June 30, 2069, under the conditions ofthat Lease
Agreement dated March 7,1991, recorded April 8, 1991, at Book 60, Page 776 in the Records of the
Seward Recording District, State of Alaska, as amended (the "University Lease"); and
WHEREAS, the University uses a portion of the Property for the University of Alaska,
Fairbanks School of Fisheries and Ocean Sciences, Institute of Marine Science, Seward Marine
Center ("Seward Marine Center"); and
WHEREAS, under a certain sublease dated October 2, 1995, the University subleased a
portion ofthe Property (the "Site" as defined in the heading above) to the Alaska Department ofFish
and Game to construct, operate and maintain a Mariculture Production Facility ("MPF") and
Mariculture Technical Center ("MTC"); and
WHEREAS, the purpose of the MPF is to produce seed stocks for Alaska aquatic farms and
the purpose of the MTC is to focus on mariculture research in Seward; and
WHEREAS, the Alaska Department of Fish and Game, the City of Seward, and Qutekcak
Native Tribe ("CRCC") entered into mutual agreements in December 1997 for the operation of the
MPF and to cover maintenance costs at the MTC while producing high quality spat and aquatic plant
seed stock for the Alaska mariculture industry; and
WHEREAS, QNT began operating the Facility in1997; and
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-91
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WHEREAS, in May 2003 the improvements were conveyed to the City, the Alaska
Department ofFish and Game terminated its sublease with the University and its agreement with the
City, and the City entered into a new sublease with the University and agreement with QNT for
operating the facility; and
WHEREAS, in December 2004 QNT, with the consent of the City, assigned its rights to
operate the facility to CRRC on a temporary basis and the parties now desire to release QNT; and
WHEREAS, the City has determined that entering into the Lease and Operating Agreement
with CRRC, in substantially the form presented at this meeting, is in the public interest and will
serve a public purpose by continuing to assist shellfish research and development of the shellfish
farming industry and promoting jobs and economic development locally; and
WHEREAS, the City has determined that the facility complements the adjacent SeaLife
Center and Seward Marine Center by providing additional research and educational opportunities in
Seward; and
WHEREAS, a public hearing meeting the requirements of Seward City Code ~7.05.125 was
held on August 28, 2006.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY ....
OF SEWARD, ALASKA, that:
Section 1. The City Manager is authorized to enter into a lease and operating agreement with
CRRC in substantially the form as presented at this meeting to lease, operate and maintain the
Seward Mariculture Research Center and Shellfish Hatchery, and to concurrently terminate the
operating agreement with QNT.
Section 2. The recitals above are incorporated herein by reference.
Section 3. This resolution shall take effect 30 days after passage and posting.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28th
day of August, 2006.
THE CITY OF SEWARD, ALASKA
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Vanta Shafer, May&r
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CITY OF SEWARD, ALASKA
RESOLUTION 2006-91
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AYES:
NOES:
ABSENT:
ABSTAIN:
Dunham, Valdatta, Lorenz, Schafer, Thomas, Bardarson, Schafer
None
None
None
ATTEST:
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(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: August 28, 2006
Through: Clark Corbridge, City Manager
From: Kirsten Vesel, Assistant City Manager
Agenda Item: Authorizing the City Manager to enter into a
Lease and Operating Agreement with the
Chugach Regional Resources Commission, and
terminating the Operating Agreement with Qutekcak Native Tribe for the
Seward Mariculture Research Center and Shellfish Hatchery.
BACKGROUND & JUSTIFICATION:
The City and Qutekcak Native Tribe, a nonprofit organization, (“QNT”) entered into an agreement in
December 1997 for operation of the Mariculture Production Facility and to cover maintenance costs
at the Mariculture Technical Center while producing high quality spat and aquatic plant seed stocks
for the Alaska Mariculture Industry. The current agreement with QNT has been in place since May
28, 2003, and has been assigned to the Chugach Regional Resources Commission (“CRRC”) since
December 2004. The assignment from QNT to CRRC did not release QNT.
QNT seeks to be released from its obligations. Concurrently, CRRC seeks its own agreement with
the City to lease and operate the facility. The substantial terms and conditions remain the same,
except that the new agreement is in the form of a lease and operating agreement (rather than an
operating agreement) and the amount of the bond or surety to be maintained by CRRC is amended to
$40,000. The administration reviewed the anticipated costs needed to “mothball” the facility for a
period of time, and recommends accepting the new amount.
On the effective date of the agreement with CRRC, the City and QNT would terminate the existing
operating agreement. The latest extension of the assignment between the parties, approved by
council on March 28, 2006, anticipated this arrangement.
CONSISTENCY CHECKLIST:
Where applicable, this resolution is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE:
No financial impacts are anticipated. No rent would be received by the City.
Approved by Finance Department
RECOMMENDATION:
Council approves Resolution 2006- _____ authorizing the City Manager to terminate the Operating
Agreement with QNT and enter into a Lease and Operating Agreement with CRRC for the City’s
shellfish hatchery site.