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HomeMy WebLinkAboutRes2020-054 Sponsored by: Council Member Baclaan CITY OF SEWARD, RESOLUTION 2020-054 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING THE APPROPRIATION OF $500,000 FROM ONE OR MORE SOURCES: THE CITY'S COMMERCIAL PASSENGER VESSEL FUND,THE GENERAL FUND UNASSIGNED FUND BALANCE, AND/OR CARES ACT FUNDING TO THE SEWARD ASSOCIATION FOR THE ADVANCEMENT OF MARINE SCIENCE (SAAMS) D/B/A THE ALASKA SEALIFE CENTER (ASLC) FOR EMERGENCY COVID- 19 RELIEF PURPOSES,WITH STIPULATIONS WHEREAS, between March 16, 2020 and May 19, 2020, the Alaska SeaLife Center (ASLC) closed their doors to the public due to the emergence of the COVID-19 pandemic; and WHEREAS, ASLC's current visitation is 25% of normal. This sharp decrease in visitor numbers is due to a major decrease in out-of-state visitors, the cancellation of cruise ships to Alaska, and the delay in Alaska Railroad operations to Seward; and WHEREAS, ASLC is expecting a $3 million revenue shortfall this summer and will therefore not earn enough reserves to carry them through the winter months; and WHEREAS, ASLC has communicated to the City Council and City Administration several times on the devastating impact this closure and the projected lack of summer visitors will have especially on the Center; and WHEREAS, the ASLC is the only public aquarium in Alaska with over 160,000 annual visitors, offers year round education programs for the youth of Seward and beyond, is a uniquely positioned cold water research center, and is Alaska's only marine mammal rehabilitation facility, prepared to respond to natural or manmade disasters and trained in oiled wildlife response; and WHEREAS, if the ASLC were unable to continue operations, these positive contributions to the Seward community and beyond would cease, and the economic impact to the community of losing the anchor tenant in downtown Seward and one of Seward's largest private employers would be substantially detrimental; and WHEREAS, the City of Seward owns the land and building used by the ASLC, forming the City of Seward's largest asset; therefore as partners, a different level of assistance is requested during this COVID-19 pandemic; and WHEREAS, according to the cooperative agreement between the City of Seward and the State of Alaska Department of Fish and Game, the operation and maintenance of the building would revert back to the City of Seward if the ASLC had to cease operations. This agreement CITY OF SEWARD, ALASKA RESOLUTION 2020-054 includes an option for the City to offer the building to the State of Alaska, who has the choice to accept or refuse such an offer. The building and land would then go from an asset to a financial burden to the City of Seward and its taxpayers; and WHEREAS, it is not in the best interest of the Alaska SeaLife Center, the City of Seward, the taxpayers of the City of Seward for the Alaska SeaLife Center to cease operations; and WHEREAS, the ASLC does not want to cease operations, and the City of Seward does not want to assume operation and maintenance of this building; and WHEREAS, on April 23, 2020, the Alaska SeaLife Center received a loan turned grant from the Small Business Administration's Payroll Protection Program of approximately $1 million; and WHEREAS, the ASLC must fill the remaining$2 million revenue gap by September 30, 2020 or will be forced to make the decision to close its doors permanently. At the June 12, 2020 special meeting of the Seward City Council, the ASLC requested assistance from the City in the form of$500,000 to help close this gap; and WHEREAS, for these reasons listed above, the City Council believes it in the best interest in the overall economic health of the town and appropriate to authorize use of City's funds, provided the Center is able to provide matching through other fundraising endeavors. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA that: Section 1. Funding in the amount of$500,000 is hereby appropriated from one or more sources: the City's Commercial Passenger Vessel fund, the General Fund Unassigned Fund Balance, and/or CARES Act funding to the Seward Association for the Advancement of Marine Science dba the Alaska SeaLife Center. This appropriation is contingent upon the availability of funds lawfully permitted to be appropriated for the stated purpose. Section 2. This funding is contingent upon the following stipulation: the Seward Association for the Advancement of Marine Science dba the Alaska SeaLife Center must raise $1,300,000 from other sources in order to receive $500,000 from the City of Seward. Cash donations or grants received between July 1, 2020 and September 30, 2020, will count towards this challenge if they are unrestricted, for general operating expenses, or for animal care expenses. Admission fees and in-kind donations cannot be used to meet the challenge. Section 3.This resolution shall take effect immediately upon adoption. CITY OF SEWARD,ALASKA RESOLUTION 2020-054 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 13th day of July, 2020. T C Y FS ASKA Ch sty Terr , Mayor AYES: Osenga, Seese, McClure, Butts, Baclaan, Terry NOES: None ABSENT: Crites ABSTAIN: None ATTEST: rends J. allo MC City Clerk (City Se*####1.,,,, Of • SEAL = • = E t 841 % an' .,ygrE OFP •••• ............ • Agenda Statement Meeting Date: July 13, 2020 To: City Council From: Council Member Baclaan Agenda Item: Authorizing an appropriation of$500,000 to the Alaska SeaLife Center for emergency COVID-19 relief purposes, with stipulations BACKGROUND &JUSTIFICATION: The temporary closure of and significant reduction in summer visitors to the Alaska SeaLife Center(ASLC) has impacted severely the Center's revenue which is depended on to maintain operations through the slower winter months. ASLC staff has communicated to the City Council and City Administration the severity of this financial situation, and has an estimated $2 million revenue gap to fill by September 30, 2020. If this revenue gap is not met, the Center will be forced to make the decision to close its doors permanently. At the June 12, 2020 Special City Council Meeting, ASLC President and CEO Tara Riemer requested assistance from the City in the form of$500,000 to help close this gap. The City of Seward is the owner of the building and land the ASLC operates on. If the ASLC is forced to permanently close, the building reverts back to the City of Seward for operation and maintenance. If this were to happen, the City's largest asset would then become a burden to the taxpayers of Seward. This is not something the Alaska SeaLife Center wants, nor the City of Seward, nor the taxpayers of the City of Seward. The Alaska SeaLife Center will be putting all efforts into raising funds from other sources. The City Council of the City of Seward believes it is in the best interest of the community to support the Alaska SeaLife Center financially to keep their doors from closing and the financial responsibility back to the City. INTENT: Assist the Alaska SeaLife Center by appropriating funds from one or more sources: the City's Commercial Passenger Vessel fund, the General Fund Unassigned Fund Balance, and/or CARES Act funding in the amount of$500,000. This appropriation would come with the stipulation that the Center must raise $1,300,000 from other sources in the form of cash donations or grants received between July 1, 2020 and September 30, 2020 if they are unrestricted, for general operating expenses, or for animal care expenses. Admission fees and in-kind donations cannot be used to meet this stipulation. 238 CONSISTENCY CHECKLIST: Yes No N/A 1 Comprehensive Plan: • 1.2 Purpose of the Seward Comprehensive Plan: Over the past two decades, the community has experienced.....the opening of the Alaska SeaLife Center (ASLC).....These changes have had significant effects on the land use, economy, and character of the community. • 1.3.1, Economic Development: Strengthen and diversify the economy of Seward by working with the private sector and governmental units. • 2.2.5, Education: Support the efforts of all educational organizations and government agencies, including the Seward Community Library and Museum,Alaska SeaLife Center, National Park Service (NPS), and US Forest Service (USFS), x to provide educational opportunities the incorporate community resources into education programs. • 3.1.1.6, Economic Development, Support existing public institutions in their effort to maintain, expand and develop: Continue to support external funding for the Alaska SeaLife Center(ASLC). • 3.7.1.2 Public Facilities, Support, strengthen and develop diverse educational and research programs at various public and non-profit institutions: Support continued development and dissemination of educational programs and research at the Alaska SeaLife Center. 2 Strategic Plan: • Economic Base: o We are a community that promotes economic diversity, encourages growth of year-round businesses, desires environmentally-responsible industry, and seeks jobs that promote a higher standard of living. (page 5) o Continue to support external funding for the Alaska SeaLife Center (page 6) x • Other Major Elements of Our Vision: o Expand and integrate educational programs. We are a community with quality educational resources and facilities that provide academic and personal growth opportunities for citizens of all ages. Such a vision includes integrating the Seward public schools, University of Alaska, Institute of Marine Science, Alaska Vocational Technical Center, Alaska SeaLife Center, and other facilities, to maximize resources. 239 (page 18) 3 Other: • Cooperative Agreement between the State of Alaska, Alaska Department of Fish and Game and the City of Seward for the Construction, Operation and Maintenance of Research Infrastructure at the Alaska SeaLife Center in Seward, Alaska: o City Ownership. The City shall own, operate, and maintain the Project for the practical life of the x Facility. (section U,page 6) • Third amended and restated agreement for lease of Tract 2A, Waterfront Tracts and the lease, operation and maintenance of the Alaska SeaLife Center between the City of Seward and the Seward Association for the Advancement of Marine Science (current agreement in place). FISCAL NOTE: Upon passage of this resolution and contingent upon the Alaska SeaLife Center meeting the stipulations described in the resolution and agenda statement, $500,000 would be appropriated from one or more sources: the City's Commercial Passenger Vessel fund, the General Fund Unassigned Fund Balance, and/or CARES Act funding to the Seward Association for the Advancement of Marine Science, dba the Alaska SeaLife Center. Approved by Finance Department: ATTORNEY REVIEW: Yes X No RECOMMENDATION: Approve Resolution 2020-054, authorizing an appropriation of $500,000 to the Seward Association for the Advancement of Marine Science, doing business as the Alaska SeaLife Center for emergency COVID-19 relief purposes, with stipulations. 240