HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 01/02/2001 - SECOND READING OF ORDINANCE NO. 192, 2000, AUTHORI AGENDA ITEM SUMMARY ITEM NUMBER: 14
DATE: January 2, 2001
FORT COLLINS CITY COUNCIL
FROM: Steve Comstock
SUBJECT :
Second 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 Second Reading.
EXECUTIVE SUMMARY:
Ordinance No. 192, 2000, was unanimously adopted on First Reading on December 19, 2000,
and authorizes the City to enter into a Livestock Grazing Lease Agreement with Natural Fort
Grazing Ltd., for Meadow Springs Ranch.
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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.
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RECOMMENDATION:
Staff recommends adoption o CeOrdi oceoPtReadiyng
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FINANCIAL IMPACT:
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The City will receive annual rent in the amount of$85,800 annually for the first five years of the
lease and an additional $89,100 n ally r�the sec0 fivv: year of the lease totaling $874,500
over the term of the lease.
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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-y- le araswarde ha enthasized both economic and
environmental issues. NFG hrough o refu clause in the original purchase
agreement, was awarded the I se fo nimal unit m th. Prior to its expiration in May
1994 the lease was extended through the R4 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.
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 CSU
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.
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