HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 12/19/2000 - FIRST READING OF ORDINANCE NO. 192, 2000, AUTHORIZ AGENDA ITEM SUMMARY ITEM NUMBER: 28
FORT COLLINS CITY COUNCIL DATE: December 19, 2000
STAFF: Steve Comstock
SUBJECT:
First Reading of Ordinance No. 192, 2000, Authorizing the City of Fort Collins to Enter into a
Livestock Grazing Lease Agreement for Meadow Springs Ranch with Natural Fort Grazing Ltd.
RECOMMENDATION:
Staff recommends adoption of the Ordinance on First Reading.
FINANCIAL IMPACT:
The City will receive annual rent in the amount of$85,000 annually for the first five years of the
lease and an additional $89,000 annually for the second five years of the lease totaling $874,500
over the term of the lease.
EXECUTIVE SUMMARY:
Meadow Springs Ranch ("MSR") was purchased in late 1990. The grazing lease for the 1991
season was entered into with Natural Fort Grazing Ltd. ("NFG") at a rate of$9 per animal unit
month. In 1992, a two-year lease was awarded that emphasized both economic and
environmental issues. NFG, through its right of first refusal clause in the original purchase
agreement, was awarded the lease for $11 per animal unit month. Prior to its expiration in May
1994 the lease was extended through the 1994 grazing season at the same rate with the intent of
going to bid for the 1995 season. In January 1995, staff issued a request for proposals ("RFP")
for a six-year livestock grazing lease structured similarly to the 1992 lease that would coincide
with the six-year demonstration phase of the MSR biosolids research management plan. This
lease was awarded to Natural Fort Grazing for $12.50 per animal unit month. This lease has
expired.
A
In October 2000, a new RFP was issued for a livestock grazing lease with a ten-year term. Two
lease proposals were reviewed. NFG's proposal was selected at a lease rate of$13 per month for
the first five years and $13.50 per animal unit month for the second five years. The lease
includes a commitment to long-term range management and a proven performance record while
increasing lease revenue to the City by 8%. NFG's proposal went a step further to address multi-
use concepts such as envisioning the Ranch as an outdoor classroom in cooperation with CSLI
DATE: December 19, 2000 2 ITEM NUMBER: 28
and Poudre School District R-1 on managed ecosystems and included ideas on expanding both
the rotational grazing and noxious plant management practices. Their proposal includes the
formation of a technical advisory group made up of City and NFG representatives to create a
ten-year improvement plan to enhance both communications as well as Ranch facilities.
• ORDINANCE NO. 192, 2000
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY OF FORT COLLINS TO ENTER
INTO A LIVESTOCK GRAZING LEASE AGREEMENT FOR
MEADOW SPRINGS RANCH WITH NATURAL FORT GRAZING, LTD.
WHEREAS, in late 1990, the City of Fort Collins (the "City") purchased that certain real
property commonly known as the Meadow Springs Ranch (the "Property"); and
WHEREAS, since purchasing the Property, the City has leased it each year for livestock
grazing purposes; and
WHEREAS,in October,2000,City staff issued a request for proposals to lease the Property
for livestock grazing purposes for a term of approximately ten (10)years, and in response,the City
received two proposals which were reviewed,resulting in the proposal of Natural Fort Grazing,Ltd.
("NFG") being selected; and
WHEREAS,City staff and NFG representatives have negotiated a Grazing Lease Agreement
(the "Lease"), which Lease is on file in the office of the City Clerk; and
WHEREAS, the term of the Lease is for nine years, seven months and sixteen days; and
. WHEREAS,City staff has advised NFG representatives that the City will not enter into the
Lease unless the shareholders of NFG individually guarantee NFG's monetary and performance
obligation under the Lease by entering into a guarantee agreement in a form acceptable to the City
Manager; and
WHEREAS, Sections 23-111 and 23-114 of the Code of the City of Fort Collins authorize
the City Council to lease, for a definite term of more than two years, any and all interest in real
property owned by the City which is part of a City utility system, provided the City Council first
finds,by ordinance,that the lease is in the best interests of the City,that the lease will not materially
impair the viability of the City's affected utility system as a whole, and that the lease will be for the
benefit of the citizens of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the lease of the Property to NFG pursuant to the terms of the Lease is in
the best interests of the City, that the Lease will not materially impair the viability of the City's
Wastewater utility system as a whole, and that the Lease will be for the benefit of the citizens of the
City.
Section 2. That the Lease is hereby approved by the Council, conditioned upon the
shareholders of NFG providing and executing to the City a written guarantee,in a form acceptable
to the City Manager,individually guaranteeing NFG's monetary and performance obligations under
the Lease.
Section 3. Provided that the shareholders of NFG provide to the City the written
guarantee described in Section 2 above, the Mayor is hereby authorized to enter into the Lease on
behalf of the City.
Introduced and considered favorably on first reading and ordered published this 19th day of
December, A.D. 2000, and to be presented for final passage on the 2nd day of January, A.D. 2001.
Mayor
ATTEST:
City Clerk
Passed and adopted on final reading this 2nd day of January, A.D. 2001.
Mayor
ATTEST:
City Clerk