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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 d vt'�''•\ Z rtv r � 4 . , IaASE. 4 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. v s 4 y.; s i, gad" t , �1 ,Jt } R .n„A � s a ;^p` " '7,.+ ( N2-{'Y arvl •t`i.� � �, � �"9 tly r, v v,t r l yb 6rK+. t I I '� 5 `M•{ (.p'�A,a f 3,�Gy S 't� .W �M1 A 1a '.V1 I F �Yi }.'.8 C 10 i� ro t AV �'•P i, Y'd dry„! 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