HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 09/21/2010 - SECOND READING OF ORDINANCE NO. 097, 2010, AUTHORI i
DATE: September 21, 2010 AGENDA ITEM SUMMARY
STAFF: Daylan Figgs _
Lindsay Kuntz
T COLLINS CITY COUNCIL
Second Reading of Ordinance No. 097, 2010, Authorizing a Grazing Lease, Sublease and Residence Lease on
Soapstone Prairie Natural Area.
EXECUTIVE SUMMARY
Soapstone Prairie Natural Area is currently leased to the Folsom Grazing Association; the existing lease will expire
in December 2010. Last year City staff initiated a competitive Request for Proposals(RFP) process to solicit tenants
for a 10-year grazing lease beginning in 2011. Through that competitive process,the Folsom Grazing Association was
selected as the grazing tenant. Grazing management will be designed to manage for natural resources of highest
conservation priority as outlined in the Soapstone Prairie Natural Area Management Plan. This Ordinance,
unanimously adopted on First Reading on September 7, 2010, authorizes a one-year lease, with renewals for up to
nine additional years (through 2020).
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.-
ATTACHMENTS
1. Copy of First Reading Agenda Item Summary- September 7, 2010
(w/o attachments)
f
ATTACHMENT 1
DATE: September 7, 2010
STAFF: John Stokes _
Daylan Figgs
SUBJECT
First Reading of Ordinance No. 097, 2010, Authorizing a Grazing Lease, Sublease and Residence Lease on
Soapstone Prairie Natural Area.
EXECUTIVE SUMMARY r--� c-\ r7
Soapstone Prairie Natural Area is curfently leased to the Folsom-Grazing,,,�ciation; the existing lease will expire
in December 2010. Last year City sta%40itiatdd Ycoompe6tive Request for Proposals(RFP) process to solicit tenants
for a 10-year grazing lease beginning in 20. Through•that competitive process,the Folsom Grazing Association was
selected as the grazing tenant. Grazing management will be designed to manage for natural resources of highest
conservation priority as outlined in the Soapstone Prairie Natural Area Management Plan.
BACKGROUND / DISCUSSION
In 2004, the City acquired a large portion of the Soapstone Prairie Natural Area(SPNA)from the Soapstone Grazing
Association. As part of the purchase agreement, the City leased the property back to members of the association for
grazing purposes through the end of 2005�Afte�seefl g,Soapstone,\the,,grazii g association members split into two
grazing associations. Several members retained�the name"Soapstone Grazing Association"and others formed the
"Folsom Grazing Association". In 2005�,City staff�initiated a competitive Request for Proposals(RFP)process to select
a tenant for a 3-year term (2006-2008), which resulted'iA the selection of,the Folsom Grazing Association as the
tenant. City Council subsequently approved Ordinance No. 160, 2005, authorizing the lease of the property.
After the initial purchase in 2004, Natural Areas staff and outside experts conducted natural and cultural resource
inventories to inform the development of the Soapstone Prairie Natural Area Management Plan(adopted 2007). The
management plan identifies"conservation targets,"or natural and cultural resources of highest conservation value.
Many of the conservation targets and associated "nested" targets (species or systems that occur on the landscape
and help provide more measurable goals than the broader conservation targets) are dependent upon or strongly
influenced by continued grazing for their survival and success.
SPNA is dominated by shortgrass prairie__ system evolved with three primary influences or ecological drivers:
grazing, climate and fire. Research demonstrates that�moderate)grazmg provides rangeland health benefits at a
variety of spatial scales;the plant, plant community and landscape level. Grazing increases productivity and diversity
of grasslands,and can provide a mosaic of habitat types with patches of heavily grazed areas with sparse grass cover
and lightly grazed areas with taller grass`.�TFiis di�ersity�of hLabitat types is'essential for species diversity, and many
species use different grass structures for different periods in their life cycle(e.g., nesting,foraging,etc). For example,
some species of grassland birds such as the mountain plover require very short grass or bare ground to nest upon.
Similarly, rare plants such as the Colorado butterfly plant (Gaura neomexicana ssp. coloradensis), a federally
threatened plant present in wetlands on-site, requires grazing to maintain open habitat surrounding plants for seed
establishment. Historically, large ungulates such as bison provided the role of grazing in grassland systems such as
SPNA. However, current ungulate densities are not sufficient to provide the same effects as historic grazers so
domestic livestock are used as a substitute.
As a result of the information gathered and management plan guidance, staff sought to continue grazing the property
but also to significantly change the styll—f-grazing.to-di rectly-manage for success of the conservation targets. This
led to a 2-year (2009 — 2010) extension of'the,grazingNlease with the Folsom Grazing Association (authorized by
Resolution 2008-116),with significant changes, including focusing,cattle on•the shortgrass habitat on the eastern side
of the property, reducing the number�of animals on the p�ope�rty,and reducing the number of separate herds. During
the same period, Natural Areas staff Nl as-_worked with>a sheep produced under a separate Professional Service
Agreement to provide weed control on the western side of SPNA, primarily targeting the invasive species Dalmatian
toadflax.
September 7, 2010 -2- ITEM 12
In the summer of 2009,Natural Areas staff had conversations with the Land Conservation and Stewardship Board(see
Attachment 3) and City Council (see Attachment 1) to discuss the proposed approach to grazing management at
SPNA and staffs intention to advertise a 10-year grazing lease, and solicit feedback. At that time, the Land
Conservation and Stewardship Board and City Council expressed support for staffs intended approach to grazing
management.
In the fall of 2009, Natural Areas and Purchasing staff initiated a competitive Request for Proposals (RFP) process
to solicit grazing tenants. The RFP was widely advertised, and two formal pre-bid meetings were held with
accompanying site visits, with 26 individuals representing 20 firms and organizations attending. Six firms ultimately
submitted proposals. The subsequent selection process resulted in the selection of the Folsom Grazing Association
as the tenants for the property.
The Folsom Grazing Association consists of eight-member-ranchers with ranching and/or livestock experience ranging
from 33 to 70 years. Four members are based in{Larime .County-three are based in Weld County, and one is based
in southeast Wyoming less than two miles from the Colorado border. All conduct the majority of their business in
northern Colorado. Members own or lease.an ac6itionall9,700+acres; leasing SPNA helps these ranchers remain
in business and keep this additional land undeveloped. Natural Areas staff has worked with the Folsom Grazing
Association over the past several years to adapt its grazing style to more effectively manage for the City's conservation
targets on the property. In previous years members have participated in public programs at SPNA and have hosted
volunteer riders to ride-along and help gather and move cattle from pasture to pasture.
Lease terms
A copy of the lease is on file at the City Clerk's office. Key features of the lease include:
• Property: This lease covers aII of-Soapstone-Prairie Natural Area (see7Attachment 2).
• Term: The lease is a one-year lease, with renewals for up to nine additional years (through 2020).
• Rent: Grazing fees will be based on a sliding scale, where Folsom Grazing Association will pay $7.50 per
animal unit month (AUM)for up to swhu ndred animal,units, $9.00 per AUM for 601 to 700 animal units, and
$10.68 per AUM for each additional animal'unit over 700. An AUM is a standardized method for measuring
animals which is used for agricultural purposes, and is equivalent to the amount of forage a cow and her
unweaned calf consume over the course of a month.
• Ranch headquarters house: The Folsom Grazing Association will have a member or employee occupy the
ranch headquarters house. If the Folsom Grazing Association decides not to occupy the house, the Natural
Areas Program may lease it to a third party.
• Grazing plan: Natural Areas staff has developed a basic grazing approach which includes management
strategies tailored to the City's conservation targets for the property. These include shorter grazing duration
and longer rest periods,timing grazing forconservation target benefit,improved control of riparian and wetland
areas, focusing grassland management on creating a habitat mosaic, and focusing foothill shrublands
management on weed control!Nat Ural�Areas,staff[and the1Fosom/Grazing Association will cooperatively
develop a grazing plan on anlannual basis in order to adaptively�manage for current conditions.
• Sublease:The lease specifically requires he Folsom Grazing Association to enter into a sublease with a firm
acceptable to the City for sheep and%or goat_grazinJ in order to provide weed control. Having a sublease
arrangement helps the City consolidate grazing operations. The City will establish the grazing plan for sheep/ -
goats on the property and retain control over these activities.
• Bison: The Natural Areas Program continues to pursue the "conservation bison" idea, a partnership where
the City would work in cooperation with public and private conservation groups aimed at the conservation of
plains bison as a wildlife species, and a portion of SPNA may be used as a location for genetically pure bison
to be located prior to translocation into a larger herd. The Folsom Grazing Association is aware of these
efforts and the potential impacts on their lease. This grazing lease with Folsom Grazing Association will not
preclude the Natural Areas Program from continuing to pursue a bison partnership or actually locating bison
on SPNA if the partnership came to fruition.
FINANCIAL / ECONOMIC IMP rCTS nn [ DV
u u
This lease will generate revenue on an annual basis; grazing fees will be based on a sliding scale, where Folsom
Grazing Association will pay$7.50 per animal unit month (AUM) for up to six hundred animal units, $9.00 per AUM
September 7, 2010 -3- ITEM 12
for 601 to 700 animal units, and $10.68 for each additional animal unit over 700. The annual number of AUMs will
depend on factors such as precipitation, forage conditions, water availability, status of conservation targets, etc.
However, the City can expect to generate somewhere in the range of$20,000 to$40,000 per year. This revenue will
be placed into the Natural Areas Program fund. Grazing lease rates vary depending on the landowner, number of
acres and animal units included in the lease, forage quality and quantity, market demand, etc. Rates range from
$1.35/AUM for federal land rates (Bureau of Land Management and Forest Service 2010 rate), to $10.78/AUM for
Colorado State Land Board leases (2010 rate), and $16.37/AUM for private grazing leases in northeast Colorado
(average 2007 figures).
The economic health of Fort Collins and northern Larimer County will be positively impacted by this lease arrangement.
Folsom Grazing Association members are local ranchers who often conduct business in Fort Collins and circulate
revenue to other agricultural businesses(e-.g:,feed,s ppliers,farms pply�storesrequipment dealers,mechanics,etc).
Providing summer pasture for their cattle at SPN�AA helpss them tomaintain Ivency, stay in business, and conserve
their farms and ranches as working landt s.•�"✓ I �
ENVIRONMENTAL IMPACTS \ LJ
Authorizing this grazing lease will ensure that Natural Areas staff is able to effectively manage for conservation targets
outlined in the Soapstone Prairie Natural Area Management Plan.
STAFF RECOMMENDATION ,
Staff recommends adoption of the Ordinr ance�om Fir R UUdin
BOARD / COMMISSION RECOMMENDATION
At its August 11, 2010, regular meeting, the Land Conservation and Stewardship Board unanimously voted to
recommend adoption of the ordinance. An excerpt of the meeting minutes is included as Attachment 3.
PUBLIC OUTREACH
Prior to adoption of the Soapstone Prairie—Natural Area•NlanagemenhPlan in 2007,which guides grazing management
i
of the property, extensive public outreach wvas� lci onductte�d inci-lun`g tw�o\\openi houses, field trips with visitors who
completed survey forms, and an ontline survey. Prior)'tol advertising the RFP, Natural Areas staff had public
conversations with the Land Conservation andf7StewardsI4ip Board(August Io2,2009 regular meeting)and City Council
to discuss the proposed approach to grazing management at SPNA and staff's intention to advertise a 10-year grazing
lease. The RFP was publicly available on the City's purchasing website and office at 215 North Mason. It was mailed
to parties who had previously expressed interest in grazing leases on Natural Areas properties in the area. It was
widely advertised in outlets such as the North Forty News, the Wellington, the Fence Post, High Country News, and
the National Bison Association newsletter. Copies were posted at visible locations such as the Centennial Sale Barn.
The RFP was also announced at a meeting of the Laramie Foothills Advisory Group. Two pre-bid meetings were held
with interested parties in November 2009.
ATTACHMENTS /7
// U v
1. August 25, 2009 Council work session II
summa
2. Map of leased property
3. Land Conservation and Stew ra dshi-p Board mi utes excerpt, August 12, 2009 and August 11, 2010
ORDINANCE NO. 097, 2010
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING A GRAZING LEASE, SUBLEASE AND RESIDENCE LEASE ON
SOAPSTONE PRAIRIE NATURAL AREA
WHEREAS,the City is the owner of approximately 21,900 acres of land known as Soapstone
Prairie Natural Area (the "City Property") in northern Larimer County, Colorado; and
WHEREAS, in 2005, in order to continue grazing as a habitat management tool while the
management plan for the City Property was being completed,City staff proposed leasing portions
of the City Property to a local grazing association; and
WHEREAS, on December 20, 2005, the City Council approved Ordinance No. 160, 2005,
authorizing a grazing lease with Folsom Grazing Association ("Folsom") on portions of the City
property from January 2006 through December, 2008 (the "2006 Lease"); and
WHEREAS, on December 2, 2008, the City Council approved Resolution 2008-116
extending the 2006 Lease through December,2010 and placing new limits on the number of animals
and the area that could be grazed; and
WHEREAS,in 2009 City staff initiated a competitive process to select a tenant for a new ten-
year grazing lease beginning in 2011, and-through that competitive process Folsom was selected as
the grazing tenant; and
WHEREAS, a copy of a proposed grazing lease agreement, dated September 7, 2010, (the
"Grazing Lease") is on file and available for review in the Office of the City Clerk; and
WHEREAS, the portion of the City Property that would be the subject of the Grazing Lease
is described on Exhibit "A", attached and incorporated herein by this reference (the "Lease
Property"); and
WHEREAS, staff anticipates that the proposed Grazing Lease would generate an annual
revenue in the range of$20,000 to$40,000 depending on how many animals are grazed and for how
long each year; and;
WHEREAS, as a condition of the Grazing Lease, Folsom would be required to enter into a
sublease with a firm acceptable to the City for sheep and/or goat grazing to control weeds; and
WHEREAS, the City Property includes a residence (the "Ranch House") that would be
available to Folsom, at no additional rent, for the purpose of housing an employee and, if Folsom
chooses not to use the Ranch House,City staff would try to find a third party tenant to rent the Ranch
House; and
WHEREAS,pursuant to Section 23-111(a)of the City Code,the City Council is authorized
to sell, convey or otherwise dispose of any and all interests in real property owned in the name of
the City,provided that the City Council first finds,by Ordinance,that such sale or other disposition
is in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS as follows:
Section 1. That the proposed lease of the Lease Property to Folsom Grazing Association
and the lease of the Ranch House are in the best interests of the City.
Section 2. That the City Manager is hereby authorized to enter into a lease agreement
with Folsom Grazing Association in substantially the form of the Grazing Lease that'is on file in the
office of the City Clerk, together with such additional terms and conditions as the City Manager, in
consultation with the City Attorney,determines to be necessary or appropriate to protect the interests
of the City or effectuate the purposes of this Ordinance, including but not limited to any necessary
changes to the legal description of the Lease Property, as long as such changes do not materially
increase the size or change the character of the Lease Property.
Section 3. That as part of the Grazing Lease, Folsom Grazing Association is hereby
authorized to enter into a sublease for sheep and/or goat grazing on portions of the Lease Property
on terms and conditions that are acceptable to the City and using a form of sublease approved by the
City.
Section 4. That if Folsom Grazing Association chooses not to use the Ranch House, the
City Manager is hereby authorized to enter into a separate lease agreement for the Ranch House with
a third party, on such terms and conditions as the City Manager, in consultation with the City
Attorney, determines to be necessary or appropriate to protect the interests of the City or effectuate
the purposes of this Ordinance.
Introduced, considered favorably on first reading, and ordered published this 7th day of
September, A.D. 2010, and to be presented for final passage on the 21st day of September, A.D.
2010.
Mayor
ATTEST:
City Clerk
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Passed and adopted on final reading on the 21st day of September, A.D. 2010.
Mayor
ATTEST:
City Clerk
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