HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/15/2005 - RESOLUTION 2005-023 AUTHORIZING THE ONE-YEAR EXTEN ITEM NUMBER: 20
AGENDA ITEM SUMMARY DATE: March 15, 2005
FORT COLLINS CITY COUNCIL STAFF: Mike Smith
SUBJECT
Resolution 2005-023 Authorizing the One-Year Extension of a Lease of the City Ditch on City-
owned Property at 2005 North Overland Trail in Latimer County, Colorado to Latimer County
Canal No. 2 Irrigating Company.
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 on the City's old Water Works Property at 2005 North Overland Trail
Road. 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 term, an
extension for 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 2005 irrigation season.
BACKGROUND
Poudre Landmarks Foundation has recently been granted funds by the Colorado Historical Society
for use 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 has been determined that the lease that has provided for use
of the City Ditch by Latimer County Canal No. 2 Irrigating Company since 1906 will expire on
April 13,2005. Included in the terms and conditions of the 1906 lease is a provision that allows the
Ditch Company to extend the lease for an additional 99-year term,at its option. The Ditch Company
has provided to the City its desire to exercise this option. However,the City Council Resolution on
April 5, 1906,authorizing the lease did not authorize the extension beyond the original 99-year term.
Consequently, City staff is proposing to extend the lease for a period of one-year in order to avoid
disruption in the lease term and allow time to arrange for and get proper Council authorization for
a longer-term extension.
RESOLUTION 2005-023
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE ONE-YEAR EXTENSION OF A LEASE OF
THE CITY DITCH ON CITY-OWNED PROPERTY AT
2005 NORTH OVERLAND TRAIL IN LARIMER COUNTY, COLORADO
TO LARIMER COUNTY CANAL NO. 2 IRRIGATING COMPANY
WHEREAS,the City of Fort Collins is the owner ofproperty known asthe Old Water Works
Property located at 2005 North Overland Trail Road,in Latimer County,Colorado(the"Property");
and
WHEREAS, the Property contains a ditch that was originally used to carry water to the
power plant that powered the Old Water Works on the Property (the"City Ditch"); and
WHEREAS, on April 5, 1906, the City Council adopted a resolution which authorized the
lease of the City Ditch to Latimer 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 which
Lease further provided for the renewal of the Lease for an additional like period at the option of the
Ditch Company; and
WHEREAS,the Lease expires on April 13, 2005, and the option to extend the Lease, as set
forth therein, was not previously approved by the Council; 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, further discussions with the Ditch Company may be necessary in order to
prepare and provide for the long-term ongoing use of the City Ditch by the Ditch Company; 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 for a period of one(1)year is in the best interests of the City
of Fort Collins.
Section 2. That the City Manager is hereby authorized to execute an extension agreement
extending the Lease for a period of one (1) year, consistent with the terms of this Resolution,
together with such additional 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 15th day of March,
2005.
Mayor
ATTEST:
City Clerk
EXHIBIT A
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T.'IS P.)ENTURE, ;lade this— day of
April, A. D. 1906, betweon,the City of Fort Collins, hereinafter
designated as the City, party of the first part,, and The
7+arima;,Coua y€Camal TIl AR E Irr at ng o e 4a�}�vrst :mw" ,""". '•" "
p
sa „r Flu U �, r'�
hereinafter designated, as the Compsny, part; cf,.'Me so* AI part,
}".ITNESSETH: 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
covenente,and agreements hereinafter sot forth to be kept and
performed by said Company, its successors and assigns, has
leased and demised and does horeby lease and demise unto said
Company, that certain ditch right of way known as the City
Ditch, said ditch having its headgate on the south bank of the
Cache la Y�1�� 741r fat z. e'p AY :«.. l ;s I
thence,in a soptheas"rly direct�gn to the parer plant 1bi4btging `
to the eyetem of,a►ater,worke of said City: _
'VW!SiAV .AND TO,JOI.H the above desoribed premises,
with the appurtananoea,,.unto said Company, its successors
and aseigns, ,for the period of ninety-nina years from and
after the date of the ensealine of these presents, upon the
i' following conditions.
II First: That paid Company will receive the said
g ditch in the condition It is now in; that it 1411 put It in
first class_ repair, and-maintain it in first class condition
for the uses and purpoaes for which it is to be used, without
charge or exTenee to aald,City.
fI
Second: That said ,C*tyany will. ,without unreasonable .
delay anlarge said ditch to. a capacity sufficient to carry
{ the water decreed to paid Company, togetber.with the amount
;:� :,u•.
Of water necessary to operate said power plant as the same
has been heretofore operated.
Third: The during the term ,of this lease .the dam
I and headgate belonging to said ditch will be maintained and
kept in good repair by said Company at its own expense.
Fourth: That said Company will construct and .
maintain the necessary structures and provige ,all .the
sufficient means for the proper diversion of t%8,W ter's to
which the parties hereto are entitled at said power plant,
so that the power rights now and heretofore enjoyed by._;
said City will not at any time be impaired; and that:-at any
and all times when said City or its grantees may desire to
operate said power plant, for any purpose whatever, said
Company will permit the water 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 said leased premises; and for the purpose of
enlarging and keeping the came in repair as l.ereinxbovs
stipulated said Company shall have the right, to take and
use, m the land belonging to as City cfrom .the ditch
right of way. and upon which said ditoh is situated all.
the dirt necessary, without coat;, provided, however, that
such control and operation Of said promises will at no time
interfere with the full operation of said power plant .by,
said City or its grantees.
Sixth: 'Said CompaYly shall be liable for any and sll
damages which may be caused to persons or to property by .reason
Of its, the Company's, negligence in failing to keep said
premises lif=proper re_rair and safe condition.
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