HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 04/04/2006 - RESOLUTION 2006-039 AUTHORIZING EXTENSION OF A LE ITEM NUMBER: 20
AGENDA ITEM SUMMARY DATE: April 4, 2006
FORT COLLINS CITY COUNCIL STAFF: Mike Smith
SUBJECT
Resolution 2006-039 Authorizing 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 Through April 5, 2008.
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, a
short term extension will allow the continued use of the City Ditch for irrigation flows on the same
terms as have been in place during the original lease term, and will avoid disruption of the right to
run those irrigation flows in the City Ditch for the 2006 irrigation season. In March 2005, the
Council authorized extension of the lease for one year, but permanent arrangements have not yet
been developed.
BACKGROUND
In 2005, Poudre Landmarks Foundation was 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 was determined that the lease that has provided for use of the
City Ditch by Larimer County Canal No. 2 Irrigating Company since 1906 was to 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 had
notified the City of 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. In
March 2005,the Council adopted Resolution 2005-023,which authorized extension of the lease for
one year, but permanent arrangements have not yet been developed. Consequently, staff is
proposing to extend the lease for up to two additional years in order to avoid disruption of the
irrigation flows in the Ditch and to allow time to arrange for and get proper Council authorization
for more permanent arrangements. The City is a major shareholder in the Irrigating Company.
RESOLUTION 2006-039
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE 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
THROUGH APRIL 5, 2008
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
(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 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
only a one-year extension of the Lease to the Ditch Company; 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 this Lease extension would allow time for discussions
regarding long-term arrangements between the City and 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 up to two (2) additional years through April
5, 2008, 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 5, 2008, 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, including any necessary corrections to the legal
description of the City Ditch that do not result in a material increase or change in character of the
intended lease area.
Passed and adopted at a regular meeting of the City Council held this 4th day of April, 2006.
Mayor
ATTEST:
City Clerk
.44
EXHIBIT'A
LEASE. ,GN„SN• '"'m"iiary,:*-
T: IS Iv .EMURE, :;ode this_ '- -- —` day of
April, A. D. 1906, between the City of Fort Collins, hereinafter
designated as ti:e City, _arty of the first part, and The
Darimer County Can4 So.rZIrr�4,atingn6opt�y�,�,,,s�C6.r�'at1'o'E','."""._..
hereinafter designated as the Company, part y the ssoead part,
PITHESSETH: That the said City,. for 'and in con-
sideration of the sum of One Dolla;, the receipt of which is
hereby acknowledged, and for the further consideration of the
covenante.and agreements hereinafter. set forth to be kept and
performed by said Company, its successors and assigns, has
leased and demised and does hereby leaae 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
I Cache Is ?Qa", at
thence in a eoutheaster]y direation to the poorer plant 'baI-caging
to the system.of water works of eaid. City. - - -
'1e�3iAV5.AND TO :iOLH the above described premises,
with the appurtenances, unto said Company, its successors
' and assigns, for the period of ninety-nine years from and
after the date of the ensealine of these presents, upon the
cI following conditions.
First: That said Company will receive the said
ditch in the condition it is now in; that It vrlll put It in
" ! first class repair, and maintain it in first class condition
I; for the uses and purposes for which it is to be used, without
t
charge or eApeuse to said.City.
� Second: That said -C4L . ny will without unreasonable
delay enlarge esid ditch to. a capacity sufficient to carry
the water decreed to said Company, together.with the amount
it
of water necessary to operate said power plant as the same
has been heretofore operated.
i
i
Third: That during the term of this lease .the dam
and headeate 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 proviQe all the
sufficient means for the Proper diversion of the seaters 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 rater necessary therefor to be carried
In said ditch and applied to said Power plant without coat.
and without hindranoe 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 :ame in repair as hereinabove,
Stipulated said Company shall have the right. to take and
see 1from the land belonging to said City a*from the ditch
riAw
t of way, and upon which said ditch is situated all
the dirt necessary, without cost; 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 ar its grantees.
Sixth: :Said Company shall be liable for any and all
damages which may be caused to persons or to property by_reason
of its, the Company'a, negligence in failing to keep said
Premi
ses re >nir and safe -oonditio n.
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