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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/18/2008 - RESOLUTION 2008-032 AUTHORIZING THE EXTENSION OF A ITEM NUMBER: 22 AGENDA ITEM SUMMARY DATE: March 18, 2008 FORT COLLINS CITY COUNCIL STAFF: Susan Smolnik SUBJECT Resolution 2008-032 Authorizing the Extension of a Lease of the City Ditch to Larimer County Canal No. 2 Irrigating Company through April 12, 2009. RECOMMENDATION Staff recommends adoption of the Resolution. EXECUTIVE SUMMARY This Resolution authorizes the extension of a lease to Larimer County Canal No. 2 Irrigating Company of the City Ditch. Although the original 1906 lease provided for an automatic renewal of the lease for an additional 99-year term at the Ditch Company's option, the Council's authorization at the time only authorized the lease for the initial 99 years. Pending resolution of this matter for the long tern,an extension for an additional one year will allow the continued use of the City Ditch for irrigation flows on the same terms as have been in place for the past 99 years,and will avoid disruption of the right to run those irrigation flows in the City Ditch for the 2008 irrigation season. BACKGROUND Poudre Landmarks Foundation had been granted funds by the Colorado Historical Society to restore a drop structure in the City Ditch on the City's old Water Works property at 2005 North Overland Trail Road that is in need of replacement. In researching ownership of the City Ditch in connection with that grant, it was determined that the lease that had provided for use of the City Ditch by Larimer County Canal No. 2 Irrigating Company since 1906 expired on April 13, 2005. City staff proposed to extend the lease for a period of one year. This was approved by Council on March 15, 2005. A second extension was approved by Council on April 4, 2006 for two years. City staff is proposing to extend the lease for one additional year in order to allow more time to research relevant deeds,documents and easements and allow time to arrange for and get proper Council authorization for a longer-term lease extension or a permanent easement. RESOLUTION 2008-032 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE EXTENSION OF A LEASE OF THE CITY DITCH TO LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY THROUGH APRIL 12, 2009 WHEREAS,the City of Fort Collins(the "City")is the owner of property known as the Old Water Works property located at 2005 North Overland Trail Road, in Larimer County, Colorado; and WHEREAS,water to power the Old Water Works was originally conveyed to and across the Old Water Works property from the Cache La Poudre River through a ditch constructed by the City (the "City Ditch"); and WHEREAS, on April 5, 1906, the City Council adopted a resolution which authorized the lease of the City Ditch to Larimer County Canal No. 2 Irrigating Company(the"Ditch Company") for a period of 99 years,in exchange for construction of certain improvements and maintenance and repair of the City Ditch and related structures; and WHEREAS, on April 13, 1906, the City and the Ditch Company entered into a lease agreement providing for the lease of the City Ditch, in exchange for construction of certain improvements and maintenance and repair of the City Ditch and related structures, a copy of which is attached hereto as Exhibit"A" and incorporated herein by this reference (the "Lease"); and WHEREAS,the Lease states that the Ditch Company may,at its option,renew the Lease for an additional ninety-nine year period, but this option to renew had not been approved by the City Council in the resolution authorizing the Lease; and WHEREAS, the Lease expired on April 13, 2005; and WHEREAS, on March 15, 2005, the Council approved Resolution 2005-023, authorizing a one-year extension of the Lease to the Ditch Company; and WHEREAS, on April 4, 2006, the Council approved Resolution 2006-039, authorizing an additional extension of the Lease to the Ditch Company for two more years; and WHEREAS, the Ditch Company has a continued need to use the City Ditch, particularly during the coming irrigation season, and there is substantial value to the City in avoiding the disruption of irrigation flows that would result if the City Ditch were not available to convey said flows; and WHEREAS,the Ditch Company has expressed an interest in discussing alternative types of arrangements for its use of the City Ditch, and another Lease extension would allow time for discussions regarding long-term arrangements between the City and the Ditch Company and for additional historical research by City staff regarding the historical conveyances related to the City Ditch; and WHEREAS, under Section 23-114 of the Code of the City of Fort Collins, the Council is authorized to approve by resolution the lease any and all interests in real property owned in the name of the City for a period of two years or less, provided that Council first finds that the lease is in the best interests of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That the Council hereby finds that extension of the Lease of the City Ditch to the Ditch Company for irrigation purposes through April 12,2009, is in the best interests of the City of Fort Collins. Section 2. That the City Manager is hereby authorized to execute an agreement extending the Lease through April 12,2009,consistent with the terms of this Resolution,upon such terms and conditions as the City Manager, in consultation with the City Attorney, determines to be necessary and appropriate to protect the interests of the City. Passed and adopted at a regular meeting of the City Council held this 18th day of March, 2008. Mayor ATTEST: City Clerk EXHIBIT"A" SY Y Y} LEASE. •:;.a;.w�+w",.'!^e,,""t s - T: IS Li:..5 URE, :U%Ae V,ie_ day of April, A. D. 1906. between,the City of Fort Collins, hereinafter designated ea MA City, party of the first part, and The Larimer CounCy Canel gge• -E Irr'patipg popgppny s a� ssri;' .i• ..:,s, ref:a._xF. - ecxiu .r2:!'-r.r., ¢S :cal.;•b�:'' a��.�finv. -- _ hereinafter designated as the Company, part? oy.,tho asooad part, WITHESSETB: That the said City.- for 'and in con- sideration of the sum of One Dollar_, the receipt of which is hereby acknowledged, and for the further consideration of the covenants and agreements hereinafter apt forth to be kept and performed by said Company, its successors and assigns, has leased and demised and does hereby lease and damiee unto said Company, that certain ditch right of way known,as the City Ditch, said ditch having its headgateaOn the south bank of the 4 Cache I la ?4}td> SX 'kw+=7 •:�� n� sl�;' j x ! thence.in a soptheasler7y direoSlon to the power plant 'bdianaUg to the system.of.water,.works of said.City. ' V01311AV3.AHD TO JOLH the above described premiesa, with the appurtenances. unto said Company, its successors - and assigns, ,for the period of alnety-nine years from and after the date of the ensoaline of these presents, upon the i following conditions. First: That said Company will receive the said ditch in the condition 1t is now In; that it will put It in first Glass repair, and maintain it in first class condition .f for the uses and Purposes for which it Is to be used, without charge or expense to eaid City. � Seeond: That ,eaid many will without unreasonable •; delay enlarga said ditch 'to capacity sufficient to Derry the water deoreed to said Company, together with the amount � R of water necessary to operate said Power plant Be the same has been heretofore operated. Third: That during the term of this lease -the dam and heade.ate belonging to Said ditch will be maintained and kept in good repair by said Company at Its own expense. Fourth: That Bald Company will construct and maintain the neoeSeary Structures and provi4s a.0 the sufficient means for the Propor diversion of the,*aters to,, : rhich the Parties 'hereto Bre entitled at Said power plant, . so that the power rights now and heretoforeenloyed by ... .. said City will not at any time be impaired; and ttat_at s.ny and all times when Said City or its grantees may desire to operate said power plant, for any purPoee whatever, said Company will permit the rater necessary therefor to be carried In said ditch and applied to said Power plant without„coat,. and without hindrance of any kind. Fifth: Said Company shall have full control and operation of Bald leased premiaea; and for the purpose of enlarging and keeping the Came in repair as hereinabgvo Stipulated said Company shall .have the right. to take and use I#rem the land belonging to said City ofrom the ditch right of way, and upon rhich said ditch is Situated all the dirt necessary, without coat; provided, however, that .. Duch control and operation Of said Premises will at no time interfere with the fall operation of said power plant .by, said City or its grantees. Sixth' 'Said ComPBMY shall be liable for any and ell damages which may be caused to persons or to property by .reaean Of its, the Company's, negligence in failing to keep said nremie" iAfProPer repair and safe condition. it i S(1 7 ,',' 3rrin:ttit 'it the Rxpirition of.the tera .of this . ... lease thefer'•yt•!cay tin Yeaewt&'tux` s. Lf.lta�par ied, av tote .tame.:i tarns, at 'Me.option of aeifl'CQmpex� F . Yt ya further.'.00rrrreplj 4hy-•4:-aII4*us' liozst"d . F -` th• pnrt-f.tlez.her�ta that,-a6 YotS ; ' ag'pa said-Compezp ra Cthfu7„1,} ! : * yr: ` 13•x-taisu" p'Oxa6dlpt'SaOkditi ( JB,a},s,x�''T�iV�^dtjc]S!t}�'Y3c U .,; at�i 4- 4.. - �. .•`Y� 5. ii; J, Y ;X, •' s :yl P*�1 tpra' en4 'efft.3t b¢r in . ,Compagq to. �'aith2liLly perroris 4auiy qr.-.es3;fl•oobattioaa, :then a t.a Ci�j'aatC�,agari tf.iY lau tnir8 'da;e nui<ioe a•c iara tnio lease`.IItill, end"- 4 F+. x e€ fhe ezplra4oA pf t(aid.. dayo aelfl�Conpa gt+,Ys�y atilt �ri7 '�agtY as' kp` e L 'oi ea id nvai titles, �niAj9.tC(sa �-'.4FOa in`.csaa er' tcrPaituze 4t;fte rJghkrr nedir thfa 16ae" it'Vta1 7a�oitte -eaa.d yPidisa�itt EReat riQitirlag aria 01ic.pnrava: . t. entfl' Oitp he.b aeas ..'Stn nama _ ,: to De .YL�ny7�'sa,><1�'�tr9 iPajlb:C , en��'�C`a'a Ypaii�aCe f;ser<l Mt ••`"-••• b iks 'C1tq_dlerk hy.Yirta.a.a?�a�;reaelatiou "opted,b;'its' s- ,.; '�� - Citq OermoLL at'a ae•ting hold au: the'.6th. deg of AprtLi,i. '.➢ 7] cn CEO goV ae.Jn, -4''aalS9� "ve, nd'{4c,j.,i f'e 9O*^9reia �;alpl �n to hareua subsaribed by its preaidstd :dnd .ito.00 rporati' anal ( to.be`L•teunto�,af.fixed.'b� It 0earetar7,•,b1 virtue-of a 14ffviattan ade,-f d,at a dcaatin� at,. . .. - e 1te ate:va.ar. ➢ittotar� ,e j�, nal4 O.a.Yh6." - _da•S o2 D. 1906, the . dey^ enQ, :lrat aboYa-written.� by 4Xty t pr*1'ca]1 rs ^o'4rfla4 t r F f`� 1 r� _Xn FV !t +p�(} 1 Y�iS UMkSq COUY11t r.4ftgl -i '_ .i`- rrda- •y .. jf//. eta.