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HomeMy WebLinkAbout02/20/1990, C-6 - SAN LUIS MOUNTAIN GRAZING LEASE MEETING DATE: city of San Luis OBISpo J Februar 20 1990 COUNCIL AGENDA REPORT ITEM NUMBER: FROM: David Romero, Public Works Director n� SUBJECT: San Luis Mountain Grazing Lease CAO RECOMMENDATION: By motion approve form of lease, authorize staff to advertise for bids, and authorize CAO to sign a lease with the presenter of the best bid BACKGROUND: Since 1982, the City has leased approximately 43 acres on the shoulder of San Luis Mountain with access from the southwest end of Hill Street. This property was dedicated as open space as a condition of Tract 939, which extended and developed Hill Street. Although the property is excellent for open space, it is marginal for grazing and the City has realized less than $300 per year on the lease. The primary benefit of the lease is that it places on the lease holder the responsibility to keep the property free of fire hazard, thereby relieving the City of this responsibility and cost. This lease is due to expire July 1, 1990, therefore, it is appropriate for the City to take steps to readvertise for the next 8 year lease increment at this time, so as to have all items of the lease completed prior to the July 1 date. Council may review the terms of the lease, which is substantially the same as the previous lease, make changes as the Council feels are desirable and authorize staff to proceed. FISCAL IMPACT: The previous lease required a significant amount of fencing construction which was balanced against the monthly rental, thus the City received only about $300 per year in lease payment. Staff anticipates that this figure will be more than double under the terms of the new lease. ALTERNATIVES: The City could choose not to lease the property, therefore, foregoing the marginal revenue but requiring the expenditure of manpower and cost on behalf of the City to keep the property clear of debris and safe from fire. RECOMMENDATION: Staff feels that City interests are best served by leasing properties such as this in order to achieve at least some revenue and minimize City maintenance. slmtn/dfr#19 RECEIVED JAN 3 1 1990 CITY CLERK SAN LUIS OBISPO.CA San Luis Mountain Lease IN WITNESS THEREOF, the parties hereto have executed this lease, in duplicate, on the date first above written. LESSEE: CITY OF SAN LUIS OBISPO CITY ADMIN S TIVE F CER w jr✓ T TT FINANCE DIRECTO DIRECTOR OF PUBLIC WORKS ATTACHMENTS : Notice to Bidders Form of Agreement slmtnagr/dfr#19 C'-G -Cpt t CITY OF SAN LUIS OBISPO NOTICE TO BIDDERS NOTICE IS HEREBY_GIVEN that the City Clerk of the City of San Luis Obispo, California, will receive sealed bids at the City Clerk's Office, City Hall, 990 Palm Street on at 3:00 p.m. , at which time they will be publicly opened and read aloud, for leasing 43 acres of pasture on San Luis Mountain off the end of Hill Street. Bids received after said time will not be considered. A copy of the documents may be obtained at the City Clerk's Office. Each bid shall be submitted in a s_ealed, envelope plainly marked: SAN LUIS MOUNTAIN GRAZING LEASE EXHIBIT 'W' FORM OF AGREEMENT LEASE THIS AGREEMENT, made and executed this day of 1990, by and between the CITY OF SAN LUIS OBISPO, a Municipal Corporation, hereinafter called "City" and - - hereinafter called "Lessee". WITNESSETH: The City hereby leases to Lessee and Lessee hereby hires from the City the hereinafter described real property, on the following terms and conditions: 1. TERM The lease shall be for a term of eight (8) years, from July 1, 1990 through June 30, 1998. Approximately 43 acres will be available. 2. RENT The rental shall be per acre per month, payable in advance the first of each month, commencing July 1, 1990, on which date the last month's rent shall also be due and payable in advance. City may withdraw the lease on a thirty (30) days notice in case of non-payment or non-compliance with the provisions of this lease, or from time to time may withdraw all or any portion of the acreage on a prorate basis by giving ninety (90) days notice. �h-h� San Luis Mountain Lease 3 . USE The herein described real property shall be used by Lessee solely for grazing purposes, except that no sheep or rams shall be pastured on the premises. Calf bulls and a limited number of bulls will be permitted. 4. PUBLIC ACCESS Lessee agrees that the public shall at all times have the right for pedestrians to enter upon the real property described herein. City shall have no responsibility to prevent members of the public from damaging Lessee's property, including fences and gates. 5. DESCRIPTION OF PROPERTY The real property which is the subject of this lease is described on that certain map entitled "San Luis Mountain Grazing Lease", showing that the concerned property contains approximately 43 acres. A copy of said map is on file in the Office of the City Clerk and another copy is appended hereto as Exhibit "A" and by such reference incorporated herein and made a part hereof as fully as if set forth below. 6. NON-LIABILITY OF LESSOR Lessee hereby waives all claims against City for damages to either persons or property, including injury to animals, Lessee, his agents, or third persons in or about said premises, from any cause arising at any time, and Lessee further '+/A _� J San Luis Mountain Lease agrees to indemnify and hold City harmless from any damages or -' injuries to any person or property arising from the use of the premises by Lessee. 7. FENCES Lessee agrees to repair and maintain in good condition existing and new fences along the full exterior boundary of said parcel as necessary for grazing purposes. Lessee further agrees to furnish the City with three (3) keys for each lock, for use by the City Police Department, Fire Department and Public Works Department, to provide access to the property through a locked twelve (12) foot wide gate. Lessee further agrees to post the property at intervals approved by the Public Works Department with signs captioned "Animals Grazing - Enter at Own Risk". Lessee shall bear all expense of maintaining fencing and gates in good condition to the satisfaction of the Director of Public Works. OTHER FENCES In the event Lessee desires to erect additional fences, then upon the approval of the. Public Works Department, Lessee, at Lessee's sole expense, may install such approved additional fences and, upon termination of this lease, Lessee agrees to remove such fences if the- City, at its. option, requests Lessee to so remove. 8. ASSIGNMENT OR SUBLETTING Lessee agrees that this lease will not be assigned nor r-. the property subleased without the prior written approval of the San Luis 'Mountain Lease City Council. The City Council may attach any reasonable conditions to any such approval. 9. WEED ABATEMENT CONTROL Lessee is aware that one of the considerations of City in leasing said property is to control growth of vegetation on the property, thereby reducing fire hazard, and Lessee agrees to use good grazing practices and to move his animals to designated portions of the premises if requested to do so by the City. Lessee further agrees to eradicate and control weeds on the land, especially spiny clot burr, thistles, cactus, chickweed, teasel, cudweed or other type of plant that is not appropriate for pasture land. In the event Lessee fails to eradicate said weeds, . then upon ten (10) days written notice by the Director of Public Works, City may eradicate or remove the weeds by contract or with City forces, and Lessee shall pay all costs thereof within ten (10) days after receiving notice of such cost from the City. 10. GRAZING CONTROL In order to prevent overgrazing, the City may from time-to-time impose a limit upon the number of animals which may be upon the premises and Lessee agrees to abide by said. limitation. In order to minimize erosion, a minimum of 11000 lbs. of dry matter per acre shall remain at the start of the rainy season (November 1) . 11. WATER SUPPLY Lessee agrees to maintain at all times an adequate, potable water supply suitable for grazing needs. 8 1' •1 • "" - �! y 4 t y �• -; w y, �f 't!a' � �l: ' �� ..`x.`,�� � vas(::: •�� ttb13 7t rY l ''� t tri ...!�. rQ' r ,•� Lt. In, c �'� � i� ♦ ha V� c(� ����� �p •t�sr^fy- 1� t ,...r u}f 'I - t1�.l�Gr�a`tr 'L- \n` • x � - ' ! l 1 ' ;�w4'•f.Y1®�4� t• tiy.l t"����a.N I � 1 .. J. •• 4 �� jrsi \al. 1�� -1.0 10 1' 1 n . � c / - 'y, r.. 2`, I t[ �a'��l�J'ra y r J • _ i^.'. . <. [. ), .r. �r y � !�e.)ti't> � Y:r t i�Y^5 fit. • ��-��, r e i, t �,.y.•!t a,. !'1Tji ° �a� ♦ f � i r�l.t 'a0.J.:v , � _ 1 a ,• Z .�,I r.sG r`� L}- 4k�i 1. N- At ,rs r•,� 4 f ° �,y".'' Irl MEHINU iTFrn # RECEIVED To: Members of the City Council FES 2 0 1990 CITY CLERW From: John Chesnut ) SAN LUIS OBISPO,CA RE: Item C-6, Consideration of Grazing Lease on San Luis Mountain I have serious reservations regarding commiting the city to a lease of this parcel until concerns regarding the impact to sensitive spring and wetlands are resolved. When I spoke to Dave Romero regarding this lease and an earlier one concluded for land adjacent to Laguna Lake, he professed ignorance of any springs or other sensitive habitat. Ignorance is not basis on whicKto proceed with lease agreements) I I recommend this item be removed from the consent agenda until concerns expressed regarding sensitive natural resources can be addressed by the city's open space planner and the leasehold properly inventoried. ' *Brnotes action by Lead Person Respo by: �I C <A—0 ❑cc �J 0 1 To: Dave Romero From: John Chesnut, Judy Neuhauser RE: Proposed language for modifying lease agreements in order to protect sensitive natural resources. C' We have developed specific language to protect the important spring and wetland habitat for the lease in question. Additionally, we propose some policy admentments for the consideration of all future leases and "renegotiations. WE PROPOSE: In order to protect sesitive wetland habitat, before any lease agreement is completed city staff shall develop a resource protection plan. First, the public works director, the leasee, the open space planner, and any interested citizens will tour the property in order to assess areas needing protection from grazing, trampling and disturbance. Secondly, after areas ate identified and agreed upon, any fencing or watering tanks required.will be installed before any grazing will be permitted. Thirdly, fencing or other improvements will be inspected, biannually, spring and fall, to ensure they remain in functional condition. Fencing and stock tanks will be the responsibility of the city to install. Once installed they become the responsiblity of the leasee to maintain is proper functional order. Negligent maintenance shall be considered cause for lease termination. We would hasten to point out that the CCC or the CMC work crews both have expertise in installing barbed or mesh fencing required to protect the springs on this parcel. Additionally Cal Poly students and faculty in Natural Resource Management are a valuable resource which could be used to inventory needs and design.appropriate protections. We would recommend both springs on this parcel be fenced as a block to include the sedge wetlands and running springs below them. Five strand barbed wire on steel T posts with wooden corner posts and stretcher rails would likely be adequate fencing. The fence should have several wooded stiles and a wire gate to permit access by humans. The numerous deer which use the area should clear a fence of this dimension easily. On the larger issue of'how the issue of sesitive resource protection can be acheived on future leases, we make the following recommendations which we would suggest the City Council adopt as a policy guideline. U I 1 WE PROPOSE: All leases and renewals of leases of city property for grazing purposes shall be reviewed by the city's open space planner in order to ensure sensitive habitats will not be impacted. The city open space planner will develop guidelines for the specific protection of springs, wetlands, and stream courses from trampling and erosion. Treatment methods may include fencing, required annual fallow periods, and other methods developed with the assistance of professional advice. Required mitigation measures will be written into the lease, and compliance with these measures will be monitored by the city. Non-compliance will terminate the lease. All current and recently concluded leases will be reviewed by the open j space planner, and efforts will be made to negotiate steps necessary to mitigate unacceptable trampling and erosion on these properties. This proviso draws special attention to recently concluded (Dec. 1989) lease of the serpentine hillside above Laguna-Lake where unacceptable trampling of a perenially spring and associated wetland is occuring in full view of park visitors. Finally, the city will publicize this policy change by press notice, and letters to local representative of Farm Bureau, Cattlemen's Association, California Native Plant Society, the California State Department of Fish and Game, and the Natural Resources Management Department of Cal Poly.. j We trust you find these recomendations useful, we feel they will go a long way towards preserving the important natural featurwsurrounding our growing city. These measures are no more restrictive than the guidelines currently used by the US Forest Service and other prudent land stewards, public and private. Sincerely u�y jGrau�t� Jo Chesnut Judy Neuhauser CC: City council, Randy Rossi, Steve Tetmeir C i January 25, 1990 Dear Randy, C' This letter is in reference to the springs on the serpentine hill behind Laguna . Lake of which I spoke to you earlier. I found that Dave Romero is ultimately in charge of them. He had no reference to springs being present on'the property in any of his documents. There is also no mention of springs in the lease agreement that was signed with Mr. Madonna late in 1989. This situation brings to mind a problem that the City apparently has in the managing of the open space resources that it presently owns. One wonders if this absence of note of viable springs is just a fluke or whether it represents a more generalized lack of a thorough inventory of sensitive natural resources on City property. It is heartening that you noted the rare and endangered plants are noted and that the management plans were adjusted accordingly, but, as I know you are well aware, there are other sensitive resources that may exist on other City parcels: exceptional specimen trees (especially natives), wetlands of all types (springs, marshes, vernal pools, creeks, ponds), habitat and nesting areas for faunal species noted as sensitive by the Fish and Wildlife Reports, and archaeological sites. Areas that are degraded should have a restoration plan submitted. There is quite a bit of community support for this type of project and I suspect that much of the labor for the implementation could be volunteer or CCC labor with a bit of organizing from the City. Perhaps you find it too early to embark on such projects. I would find it distressing, though, if the City were to enter into any other leasing agreements on any of its other property without adequately addressing all of these resources. Any thoughts as to how to avoid a repeat of the Laguna hill scenario? Sincerely, la'all, )PAJfa 64- Judy Neuhauser cc: Bill Roalman