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HomeMy WebLinkAbout2013 Ordinance No. 037• • • ORDINANCE NO. 122_ SERIES OF 2013 BY AUTHORJTY COUNCIL BILL NO. 34 INTRODUCED BY COUNCIL MEMBER WOODWARD AN ORDINANCE AUTHORIZING AF ARM LEASE AGREEMENT FOR AF ARM IN THE LITTLETON/ENGLEWOOD WASTEWATER TREATMENT PLANT BIOSOLIDS MANAGEMENT PROGRAM. WHEREAS, the Cities of Littleton and Englewood jointly own properties near Byers, Colorado and Bennett, Colorado which are used for the Littleton/Englewood Wastewater Treatment Plant (LIE WWTP) Biosolids Management Program; and WHEREAS, this Program uses dryland farm property for long-term applications of domestic wastewater biosolids generated by the (LIE WWTP); and WHEREAS , the Englewood City Council approved the purchase and 5 year lease back of farmland to Meier in Byers by the passage of Ordinance No. 55 , Series of 2007 ; and WHEREAS, there is an ongoing biosolids application covered by an existing lease on the Meyer farm which runs through 2013; and WHEREAS, the Meier's lease begins on July 6, 2013 for a term of one (1) year, renewable for one (1) additional year. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ENGLEWOOD, COLORADO , AS FOLLOWS: Section 1. The City Council of the City of Englewood hereby authorizes a "Farm Lease " between Gary Meier and Nancy Meier and the cities of Littleton and Englewood commencing on July 6 , 2013 , for a term of one (1) year, and renewable for one (1) year; attached hereto as Exhibit A. Section 2. The Mayor is hereby authorized to sign the Meier Farm Lease Agreement for and on behalf of the City of Englewood . Introduced, read in full, and passed on first reading on the 5th day of August , 2013 . Published by Title as a Bill for an Ordinance in the City's official newspaper on the 9th day of August, 2013 . 1 9 b ii Published as a Bill for an Ordinance on the City's official website beginning on the 7th day of August, 2013 for thirty (30) days. Read by title and passed on final reading on the 19th day of August, 2013. Published by title in the City's official newspaper as Ordinance No. ZJJ Series of 2013, on the 23rd day of August, 2013. Pub lished by title on the City's official website beginning on the 21 st day of August , 2013 for thirty (30) days. I, Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true copy of the Ordinance passed on final reading and published by title as Ordinance No .3?, Series of 2013. 2 • • • • • FARMLEASE THIS LEASE is dated as of Z -6 , 2013, and is made and entered into by and between the Cities of Littleton and Englewood, collectively referred to hereinafter as "Lessor", and Gary and Nancy Meier and Jason Meier, referred to hereinafter as "Lessees'\ On this date, Lessor has leased to the .Lessees the following described premises situated in the Counties of Adams and Arapahoe, State of Colorado, to wit: [See Exhibit A attached hereto and made a part hereof] together with all buildings and improvements on the ,premises (hereinafter referred to as the "Leased Property") in accordance with the following tenns: 1. This lease replaces and supersedes in its entirety, any prior lease agreement between the parties. This lease shall be for the term of one (1) year, renewable annually for one (1) additional year commencing on January 1, 2013, at the rent of $8:00 (Eight dollars) per acre per year on fannable acres on 'the Leased Property (1,252 acres) for a total annual lease payment of $10,016.00. 2. The lease payment is to be made payable to the order of: Littleton/Englewood WWTP and delivered to: Littleton/Englewood WWTP c/oTreatmertt Division Manager -2900 South Platte River Drive Englewood, CO 80110 '•. . ~" byDecerriber 31 (following the harvest) of each year that 'this lease is in effect. 3. Lessees shall thoroughly plow, cultivate and fann in accordance with good fanning practices, .all lands _ comprisi~g the Leased Property that are not in grass, fallowed by mutual agreement of the parties, or otherwise unfarmable. 4. Lessees shall use the Leased Property as a dryland farm and · for no other purpose whatsoever, and especially will not let or permit the Leased Property to be used for any other business or purpose whatsoever. 5. Lessees shall be responsible for all costs and expenses associated with use of the Leased .Property as a dry land farm, except that Lessor, at its own cost and expense, shall be responsible for furnishing, transporting, and applying all fertilizer, in the fonn ofbiosolids, to the Leased Property. 6. -All fertilizer to be used on the Leased Property shall be transported, furnished, and appliec:I by Lessor at such times and at agronomic rates as determined by Lessor. Lessees shall E X H I B I T A not apply a11-y fertilizer on the Leased Property without the prior written consent of Lessor. • Lessor may use a portion of the Leased Property for staging areas for biosolids application. Staging.area>-size and location will beas determined by Lessor. ·:.'/'i-.';t.;','' .• • ' ' . .:; ~ .. . ·'·''/tl.1''•''•'· •· : ' •. ,. • ,,. . 7 .. :~bessees shallnot :assign this 'lease',:stibl~t,,orf;linqui~h the Leased Property, under the;pen 'a]cy iqf,a~f0rfeifure of albthei-ights :of'the Lessees under or:by:viitue .ofthis lease, .at the election of th~ Lessor.' . . . . . ''" . c: <: ,. · ' ' ; ...... -· -·- 8. ·Lessees shall protecUhe 1Leased Property, including buildings, gates, fences, shrubbery, and improvements thereon frommll :damages :andshall :keep the same in the same condition a~~they are now in,·or,may.beat any time placed in by the Lessor, subject to normal wear and ·te~r. Lessees..:shal'l '.do ·rio :act,whereby .any 0insurance i.Oll ,buildings may , be invalidated and shall not remove, or allow :any o.ther .·.personto-remove,.from·the Leased Property al}Y of the buildings, ;gates, .fences, ·shrubbery, and improvements of any kind. • · '. ~;~·-•, ~;t ~ssees !sh~ll ··~~trrun furrows :~~ .~~ ;~·~·~~~~~~ di~ch;~·:'~o w.~h the Leased · Property, u~less ·first:[av ingia writte~ cgn~~llt of:the ~essqr.;L,es~~i~,~1i~m :~l~ai:t :.9µ(1mg )pa,.inta.~~ ~~­ gooo repairi during the .operation ·ofthis:!Dease, all ,dit~p.es,.~~l01,1g~g}?r ~ppertainin,.g to the . Leased Property. . '/ , .: ·, c,. ;.1 • . .: .... .. . · ..... ·'. 10. Lessees shall well rand .seasonablyput.in .and;tend.J9.th~.,cro,p~ ,gr9wn on the Leased Property, shall have all small grain harvested .and threshed by October 1 of each year; and if-not harvested and threshed as stated, the Lessdrtna,y .proceeg ,t9 do •.so ?f.terten (I 0) days notice to the Lessee, and take enough of the Lessee's grain to pay expense of such • harvesting or threshing. · 11. Lessees shall accept the fences upon sai~I::.ease,d P.rgp.erty :as they are now existing. 12. Lessees shall, at the expiration ofthis Lease, or.upon ;a bre~ch by.the Lessees of any of the cov.enants herein contained, withoutfurthei"'notice o(any kind;·quit and surrender , .. 1_,~,f.-:,11-•:•.'t~-:-,· ) -,tl'lfi'l:"•.:• •'·' :·· -' . the possession and occupancy ,of Leased .Property. in as gqod, .condition as careful use and ·natural wear ~9-tear the~eo,:f will.permit. · · · · · · · ' ~.:-..'. /.;i;~·t' ... , ... :·_;!·{'::,:·;}f'.' '.:; .. ~::?F -~-~ ': --,, . I,. .•r·. ;_ ,-! r: ;-(,: Jh ,'~--· .. : .... ~ ',13. A:ll ,go,9d _S,;:~~d ~ha11~1s,prc1ny.t?~her ,prqp;erty p~eE, :a.t:.~,.~Pf,.o~:~e L~ased Property, shall be held for the rent or damages under,.this .Lease, ~h~~Aet ~~e¢pt fro,~ execution or 'not, mea_ning or intending hereby to give the Lessor a valid 'and first'lieilupon 'any and all goods and chattels, cr~ps .. ana'~theq,roperty hel0~giqg ,to tl1~Lessees. '' ':. ' ,, 14. Lessees sh~l c~ltivate ar01lnd aiiy stnictuies,6tfacilities constructed by Lessor and where applicable, .and shall not impair or hinder, but shall co5perat~\vith 'Lessor in the use of ,.domestic wastewater biosolids .. application o.n .the Leased PropeJ1y .. • ' ·• '. ~ ' • ~' ' I '.; ._ .'-:I. ' ' ' -, • -·· l • ~. MI ' ' t • ' -•• _ 1'5 . The Lessor reserv.es the ,rig}:,it to cancel :tne ·lease during its term for any of the following reasons: a) if the Lessees sho 1 uld take 'any acfiori of fiiiHo 'iake ariy action that threatens the Lessor's interest in the Leased Property, including the violation oTany ·:environmental laws, rules, regulations or standards; . b) if the Lessees should .fail to abide by the ·• Lessqr's instructions .c.onceiningresiduaLnitrogen.levels.in the soil and agronomic rates of . . .. ' ,•,,\ . . . , : ·; . . . 2013 Farm Lease Page2 of7 • • • application ofbiosolids; c) if the Lessees are farming in a manner which limits the Lessor's ability to apply biosolids to the Leased Property; d) if the Lessees are not fanning in a manner that constitutes good farming practices; e)'.if.the Lessor determines that it :will no Jonger utilize the Leased Property for the production of crops. 16. Lessor also reserves the right for itself, its agents and its designees, including other government officials, to enter and to have access, at all reasonable times during the term of this lease, to the Leased Property for the purpose of sampling, application, monitoring, testing, screening, mapping, plotting or doing any other procedure, task or function deemed necessary by Lessor in conjunction with its biosolids production and application operation and for any other pUipose including, but not limited to, inspecting the Leased Property and to make such repairs, additions, or improvements as Lessor may deem necessary. 17. It is understood and agreed that the Lessorreserves the right to cancel this lease at its sole discretion. Should Lessor elect to exercise its right of cancellation, it must do so in writing, on or before October I prior to the anniversary date hereof, in which event this lease shall be tenninated effective on the anniversary date and neither party shall be entitled to further payments or damages as the result of said termination except for any payments due and owing at the time of cancellation. 18. All payments from the· Lessee shall become due and payable upon forfeiture of said Lease, or upon abandoning said Leased Property, and if it becomes necessary for the Lessor to bring action at law to recover possession, damage or rent, the Lessees agree to pay a reasonable attorney's fee therefore, and all costs attending the same. 19. Lessees shall indemnify, defend and hold harmless Lessor and its successors, assigns and representatives from and against any and all damages, claims. losses, costs, liabilities, and expenses of any kind whatsoever (including but not limited to reasonable attorney fees) which may be asserted against or suffered by Lessor or the Leased Property or any part thereof, as a result of, on account of or arising from (i) any breach of any covenant, representation; promise, warranty or agreement made by Lessee, or (ii) injuries or damages to person or property resulting or alleged to result from any fault or negligence of Lessee or his agents or employees. or from the possession, use, occupancy, or maintenance of the Leased Property by Lessees, their agents, employees, or affiliates. 20. This Lease shall not be sublet or assigned. Any purported sublease or assignment shall be void, and shall result in immediate termination of this lease. 21. Lessor reserves the right to sell, contract to sell, or grant easements or rights-of-way over, through, under, or on, the Leased Property at any time during the term of this lease, subject to the rights and interests of the Lessees hereunder. 22. All notices, demands, or other documents required or desired to be given, made or sent to either Party under this Agreement shall be made in writing, shall be deemed effective upon receipt and shall be personal1y delivered or mailed postage prepaid, certified mail, return receipt requested, as follows: 2013 Farm Lease Page 3 of7 TO LESSOR: Littletori/Englewo0d WV{TP c/o Treatment Division Manager 2900 ·south Platte Riverbrive ''' ' · ;EngfeWOod;··co sor10 ' -~ ;'. ['1 ~ \ i, l •i.,;.· , , •. • , 1 ~. TO LESSEES: Gary and 'Nan~y Meier 326S ·SCJR ,f85 :, Byers, co sor03 · '' ' ::' '<:i''i ·; ';:,: ' ··:r-· .. :·'·I ·;,·:.·:..:·-tr~\: .. -_:h1·.··-~ •·::'f',,:: ... ;:';,·-r.:_-.·~;= ., ·1 .·,-ri·,r-,. . . ;,. Th;l~diif~~se~:-ior~~ti6~s 'm.ay ·:1,e !cfiaiig~l1 Ebytritfii /nritite-gii~ri ':'f6 thb .other 'Party in the • m~~e(proyided 'above : ' . ,. '. '';;" ·~•:,, ;_: ·,'.", j ,.., :, ,. : .. ;, ', c :, /-: ;;•, ,-i,;,:,,. . , .. : ., ThtS 1iease shalfbe in effect as ofthe cl~te first above 'ivritten;' ·:_::· .. ZO 13 'Fann Lease Page 4 of7 • • • • LESSOR: CITY ENGLEWOOD By: Randy P. Penn, Mayor CITY OF LITTLETON By: Debbie Brinkman, Mayor • • 2013 Fann Lease Page 5 of7 ESSEES: • ·~ • • 2013 Farm Lease Page 6 of7 ., • • • Parcel I: Exhibit A LEGAL DESCRIPTION The East 1/2 of Section 33, Township 3 South, Range 57 West of the 6th P.M., County of Adams, State of Colorado. Parcel II: The West 1/2 of Section 8, Township 4 South, Range 57 West of the 6th P.M ., EXCEPT the West 40 feet for county road purposes as described in Quit Claim Deed recorded September 8, 1948, in Book 618 , at Page 121, County of Arapahoe, State of Colorado. Parcel III: Section 17, Township 4 South, Range 57 West of the 6th P.M ., EXCEPT the West 40 feet and the South 40 feet thereof as described in Quit Claim Deed recorded September 8 , 1948 , in Book 618, Page 128 , County of Arapahoe, State of Colorado . 201 3 Farm Lease Page i of? . ,. . . .: .· • • • • COUNCIL COMMUNICATION Date August 5, 2013 Agenda Item Subject 11 a i Farm Lease Renewal Agreement L/E WWTP Beneficial Use Farms INITIATED BY STAFF SOURCE Littleton/Englewood Wastewater Treatment Plant -Stewart H . Fonda, Director of Utilities Supervisory Committee Jim Tallent, Operations Division Manager COUNCIL GOAL AND PREVIOUS COUNCIL ACTION Various farmers perform farm management services on City owned properties near Byers, CO. The Byers farm is used to apply stabilized domestic wastewater biosolids in a beneficial use program . In 2011 Council approved 5-year lease agreements with these farmers. One property not included in this action was purchased in 2008 which included a farm management lease through the original land purchase -this agreement has expired. RECOMMENDED ACTION The recommended action is to approve, by Ordinance, a new 2-year cash-lease agreement for: 1. Gary and Nancy Meier and Jason Meier • BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED • Based on criteria established by regulatory requirements, the Littleton/Englewood WWTP was granted approval by the Cities of Englewood and Littleton (1995 , 1996 and 2008) to purchase dryland farm property (Byers farm). This property is used for long-term application of domestic wastewater biosolids generated by the facility. While plant staff operates and maintains the biosolids application program, farming services are contracted via cash-lease and provided through local farmers . Gary and Nancy Meier and Jason Meier conduct farm management activities for a portion of the Byers farm. At the May 16, 2013 L/E WWTP Supervisory Committee meeting discussion was held and action recommended and approved to renew the current $8.00/acre cash-lease for two years. This shorter term will bring all farm lease agreements to be renewed at the same time and can be acted upon with one ordinance action. Cash-lease places all direct farming costs with Gary Meier, consistent with our other leases . Not sharing farming cost with the Cities will result in reduced budgetary expenditures for L/E WWTP. A new 2-year lease document, based on existing previously approved $8/acre cash-lease, was prepared by Hill and Robbins . The lease document was reviewed and approved by both Englewood and Littleton City Attorneys. FINANCIAL IMPACT With recommended cash-leas e pricing of $8 .00/acre, firm revenue of $10,016 will be generated each year, regardless of commodity/economy trends . LIST OF ATTACHMENTS Littleton /Englewood WWTP -Gary and Nancy Meier and Jason Meier Cash-Lease Agreement