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Home My WebLink AboutAM 2022-009 CRRC Joint Agmt for Grant ApplicationsCity of Seward Action Memorandum 2022-009 Meeting Date: October 24, 2022 To: City Council From: Janette Bower, City Manager Agenda Item: Action Memorandum 2022-009: Authorizing the City Manager to Sign a Joint Agreement Between the City of Seward and Chugach Regional Resources Commission to Apply for EDA Grant Applications at the Mari -Culture Technical Center Background and justification: The Alutiiq Pride Shellfish Hatchery has operated at its current location for many years. The land and facility is leased from the City of Seward. In 2006, Chugach Regional Resource Commission (CRRC) took over operation of the facility and entered into a five-year lease with the City of Seward. Resolution 2021-012 approved a revised, 5-year lease agreement. The City of Seward desires to see the CRRC operation expand as shellfish hatcheries provide valuable economic development and CRRC has a number of current and pending projects which will continue to contribute to commerce, research, and a number of community engagement opportunities. Chugach Regional Resources Commission (CRRC) is applying to the EDA Public Works and Economic Adjustment Assistance Program. CRRC serves seven communities. (Eyck (Cordova), Qutekcak (Seward), Valdez, Port Graham, Chenega, Nanwalek (English Bay) and Tatitlek) and value the work they do to protect subsistence lifestyle and resources in the Chugach region. CRRC has operated the Alutiiq Pride Marine Institute (APMI) in Seward, Alaska since 1992. APMI has been providing seed stock to the Tribes, promoting the cultivation of indigenous food sources, mariculture habitat preservation, educating Alaska Natives in shellfish farming and the Alaska mariculture industry, all of which have been undeniably beneficial. All this work has been accomplished despite what have been increasingly inadequate and inefficient facilities. The EDA grant application is in support of CRRC's Alutiiq Pride Marine Institute Patrick (Ratii) Norman Facilities Expansion which will provide for additional capacity to serve research and provide Tribal services and is key to APMI's strategy to continue serving as a significant contributor to the resilience and recovery of the region. The project will help build a skilled workforce and further solidify Seward's role as a regional nexus for marine -based industries. The expansion is projected to create over 100 new jobs in the local area, and perhaps more. In the first year of operations, CRRC expects to add 10 new positions for APMI activities. In 9 years, this will lead to 102 jobs (using the Alaska Dept. of Labor's projected growth rate (Martz), and the updated multipliers for indirect/induced jobs (Bivens)). In recent years, APMI has doubled its contract revenue from third parties for shellfish and crab cultivation (to an average of $105,000), but there is no more capacity to increase those services. With the expansion, APMI will be able to accept more contracts, which will lead to more jobs. CRRC's grant funding has increased by 250% over the last 5 years, and the expansion will allow CRRC to leverage new funding sources to create more jobs at APMI and in the Tribal communities. Comprehensive and Strategic Plan Consistency Information This legislation is consistent with (citation listed): Comprehensive Plan: 3.1 Economic Development Strategic Plan: Other: Certification of Funds Total amount of funds listed in this legislation: $ 0 This legislation (✓): Creates revenue in the amount of: Creates expenditure in amount of: Creates a savings in the amount of x Has no fiscal impact Funds are (✓): Budgeted Line item(s): Not budgeted x Not applicable Unassigned Fund Balance and Available Unrestricted Cash Balance Information Fund (✓): General SMIC Boat Harbor Parking Motor Pool Other Unassigned Fund Balance*: Available Unrestricted Cash Balance*: Electric Wastewater Water F1 Healthcare Finance Director Signature: Attorney Review e✓ Yes Attorney Signature: CQ Not applicable Comments: Administration Recommendation e✓ Adopt Action Memorandum Other: DISPOSITION Approved by City Council on October 24, 2022. *unaudited numbers JOINT AGREEMENT BETWEEN THE CITY OF SEWARD AND CHUGACH REGIONAL RESOURCES COMMISSION TO APPLY FOR EDA GRANT APPLICATIONS AT THE MARICULTURE TECHINCAL CENTER This AGREEMENT (the Agreement) is made and entered into by and between the Chugach Regional Resources Commission ("CRRC"), a federally recognized Tribal Consortia and registered non-profit, with a registered office located at PO Box 111686, Anchorage, Alaska, 99511-1686, and the City of Seward ("City"), a home rule city with a registered office located at 410 Adams Street City Hall Building, Seward, AK 99664 (herein sometimes referred to together as the "Parties" and individually as a "Party"). WHEREAS, the Chugach Regional Resources Commission is in the business of operating the City of Seward's Mariculture Technical Center (dba Alutiiq Pride Marine Institute); and WHEREAS, the City of Seward desires to provide economic opportunity to residents and businesses of Seward, Alaska; and WHEREAS, the Parties desire to establish a joint agreement between them, in order to collaborate on grant writing opportunities including securing federal, state, and private funding sources to meet the goals and objectives of Chugach Regional Resources Commission's operation; and WHEREAS, EDA regulations require that the project partners protect the federal interest in the Facility during the estimated useful life of the project, which the EDA has determined to be twenty years; and WHEREAS, the Parties agree and understand that they will be bound by the EDA grant application forms and award documents that they execute and the applicable statutes and regulations, and that all the Parties agree to jointly submit the EDA required application materials; and WHEREAS, the Parties shall submit this Agreement to EDA; and WHEREAS, the Parties shall promptly notify EDA of any changes to this Agreement. WHEREAS, the signatories below are hereby authorized to initiate all action necessary to apply for, the EDA grant and to sign all documents necessary to finalize the grant application and acceptance process. NOW THEREFORE, the Parties agree as follows: Ownership The land (Parcel ID: 14920016 1 Tract 1-B, Waterfront Tracts — Mariculture Addition, Plat No. 97-18) and improvements (Mariculture Technical Center) (collectively, the "Property") are owned by the City of Seward. CRRC leases the Property from the City ("the Lease") on a gratis basis, and operates the Property as, Alutiiq Pride Marine Institute, a shellfish hatchery and facility to study marine life. The Lease expires on June 30, 2069. II. Responsibilities of the Parties CRRC shall be solely responsible for (1) receiving and distributing grant funds; (2) filing EDA project reports and financial reports (3) procurement processes in compliance with federal regulations including bidding, award, and management of the construction contracts; (4) any EDA match requirement; (5) insurance and maintenance of the facility; (6) submitting this Agreement to EDA; and (7) ensuring that the Federal Government is fully compensated for the Federal Share of Project Property as required by 13 C.F.R. § 314.2. The City of Seward is responsible for holding title to the land required for implementation of the EDA grant for the useful life of the EDA project; provided that, if the Facility is sold or transferred, City's obligations under this Agreement shall terminate and transfer to the new owner. City shall ensure that any transfer during the term of this Agreement shall conform with 13 C.F.R. § 314.3(d). Both Parties are responsible for compliance with all terms of the Lease, and agree that they will be bound by the EDA grant application forms and award documents that they execute and the applicable statutes and regulations. The Parties agree that they will submit the EDA required application materials and will promptly notify EDA of any changes to this Agreement. III. Term This agreement shall commence on the latest dated signature below and remain in full force and effect for an initial period of twenty (20 years). At the end of the initial term, this agreement will automatically renew in one year increments (each, a "Renewal Term"), unless and until this Agreement is terminated in accordance with the section hereinafter. IV. Termination Subject to approval from the EDA, either Party shall have the right to terminate this Agreement with six (6) months notice to the other party. Such termination shall be effective upon the date stated in the notice, or upon the date written approval is received from the EDA, whichever is later. V. Indemnification CRRC shall indemnify, defend and hold harmless the City of Seward from any claim arising from or related to CRRC's acceptance, administration and management of the EDA grant. VI. No Modification of Lease This Agreement does not amend or modify the Lease. VII. Amendment This Agreement may only be modified in writing by mutual agreement of the Parties. Any such amendment shall conform to the requirements of 13 C.F.R. 314.2-314.3. CERTIFICATION In witness whereof, CRRC and City have executed this Agreement as of the last written date below (the "Effective Date"). For Chugach Regional Resources Commission For City of Seward Willow Hetrick Executive Director Date: 10/10/2022 Janette Bower City Manager Date: