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04-037 Fred Chan-Marine Aquarium for Cupertino LibraryG=~ -G 37 e, CITY OF CUPEI~TINO City Hall 10300 Torre Avenue Cupertino, CA 95014-3255 Telephone: (408) 777-3354 FAX: (408) 777-3333 OFFICE OF THE CITY MANAGER April 29, 2004 LETTER AGREEMENT for CUPERTINO LIBRARY AQUARIUM This Letter Agreement formally establishes the points of agreement between Fred Chan, hereinafter referred to as Donor, and the City of Cupertino, hereinafter referred to as City, regarding a marine aquarium for the new Cupertino Library. 1) Donor agrees to donate Three Hundred Twenty-fire Thousand Dollars ($325,000) to the City of Cupertino for the design and construction of a marine aquarium in the Cupertino Library. 2) Donor agrees to make one lump sum payment of Three Hundred Twenty-five Thousand Dollars ($325,000) to the City within 30 calendar days of full execution of this Letter Agreement. 3) City agrees to establish an independent aquarium ~~ccount for Donor's funds and will make aquarium account expenses available for Donor's review. 4) City agrees to return to Donor any unused portion of Donor's funds if the aquarium is not completed. 5) City and Donor agree that City will contract with Bart Fenolio of Dolphin Design, to design the aquarium tank, artificial reef, and life support equipment. 6) City and Donor agree that City shall determine the type, size, and quantity of the marine species in the aquarium. 7) Donor agrees that City shall be free to contract with any business of its choice for maintenance services. 8) The aquarium design will be reviewed, verified, and modified as necessary, by City and City's consultants. 9) The aquarium will contain approximately 4,000 gsillons of water and have a viewing window approximately 6 feet high and 16 feet long. 10) The aquarium will contain a tropical marine environment using an ecologically acceptable artificial reef and typical life support equipment as established ley standards developed and used by the Monterey Bay Aquarium and by Tenji Living Systems Coordination. 11) The aquarium will be designed to support approximately 100 live marine animals at any one time. 12) Donor agrees to pay City a lump sum of Eight-ones Thousand Dollars ($81,000) for the first five (5) years of maintenance beginning on November 1, 2004. Printed on Recycled Paper 13) City agrees to initiate a Maintenance Fund Raisin€; Campaign to fund up to one half of the marine environment maintenance and normal animal repl~rcement costs for years Six through Ten, but in any event the Donor and City agree to equally share the monthly maintenance costs for years Six through Ten. 14) City herein states its intention to provide the aquarium as a benefit to the community. However, should the aquarium be damaged by an "act of God" or other unforeseen event, anytime within the first ten year period, which damage will cost in excess of $25,000 to repair, Donor will be given an opportunity to restore the aquarium to its original operating condition. Should Donor decline to repair the aquarium to its original operating condition, within a reasonable f~eriod of time, City shall have the right to determine whether to repair the aquarium at City expense or to discontinue its operation, and remove, relocate, dispose of, or sell, any part of or all of the aquarium life support equipment and tank. 15) City agrees to be fully responsible for the costs of the maintenance and animal replacement at year Eleven and beyond. However, should the City need to terminate the operation of the aquarium in year Eleven or beyond, for any reason, the City shall have the exclusive right to do so. 16) City agrees to be responsible for animal replacement, if such loss is considered abnormal, is due to loss of power to life support equipment, or for any such other reason beyond the reasonable control of maintenance provider. This Letter Agreement constitutes the full and complete un3erstanding of both the Donor and the City and there are no other provisions than those stated herein CCE TANC and ACKNOW EDGEMENT Date ~ f ~~ '~ David W. Knapp, City Manager City Hall 10300 Torre Avenue Cupertino, Ca. 95014 `~"`i!'rt' ~ Date ~-~ 3 -~ Kimberly Smith, i y erk City Hall 10300 Torre Avenue Cupertino, Ca. 95014 Date/~ Fred Chan, ai ESS Technolog , c. 48401 Fremont Blvd. Fremont, Ca. 94538 Letter Agreement Cupertino Library Aquarium Page 2 of 2