HomeMy WebLinkAbout03/06/1990, C-6 - SAN LUIS MOUNTAIN GRAZING LEASE �ui���hIII�IJP`�� U city of san 1 ,s oBispo ` ' T990
MaGe COUNCIL AGENDA REPORT -
FROM: C/fir%C
David F. Romero, Public Works Director
SUBJECT:
San Luis Mountain Grazing Lease
BACKGROUND:
On the morning of February 20, 1990, the date this item was scheduled
to be considered by the City Council, I received a telephone call from
John Chestnut objecting to our lack of inclusion of protective wording
for the sensitive spring and wetlands which he states are on this
property. I informed him that I had no problem including such wording,
however I asked him to present a draft in order that I might include
his concerns within the lease agreement. We received his report late
in the day--too late to make modifications to the agenda report.
Therefore we asked that the item be pulled from the agenda to be
reconsidered at a later date.
We have since added Section 12 to the lease agreement addressing
concerns regarding the springs and we have added a signature block on
the lease agreement for the Community Development Director.
We did not follow Mr. Chestnut's recommendation for a major policy
change notice and hearings, as we feel they are unnecessary. We simply
have agreed to provide protection of springs in all future lease
agreements where springsmightbe involved.
This week I received word from the Assessor's Office that legislation
now requires the city to notify lease holders of possible tax liability
and have therefore added Condition 13. In all other respects the
agenda report and form of lease agreement are as previously presented.
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il,I�lyo�Inlfn�IAIIN,III f � M DATE:
ul �IIII I (lUl CI•n.�� OS�►•_. �(,lIs OBISPO Marchrch 6, 1990
COUNCIL AGENDA REPORT NUMBER:
FROM: David Romero, Public Works Director
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.
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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 sealed envelope plainly
marked:
SAN LUIS MOUNTAIN GRAZING LEASE
"
FORM OF AGREEMENT
LEASE
THIS AGREEMENT, made and executed this day of
1990, by and between the CITY OF SAN LUIS OBZ8P0, 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.
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
San Luis .Mountain Lease
i
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" .
I
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
the property subleased without the prior written approval of the
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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
1, 000 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.
i
San Luis Mountain Lease
12 . SPRINGS
The leasehold contains one or more perennial springs
that support wetland plants and specialized habitat. These areas
will be identified by the City and shall be fenced by the lessee
to prevent trampling and damage by livestock. The extent of
fencing shall be sufficient to protect areas dominated by wetland
plant species.
13 . POSSESSORY INTEREST
Lessee agrees that he is aware that he may be subject
to property taxes in accordance with Section 107. 6 of the Revenue
and Taxation Code.
IN WITNESS THEREOF, the parties hereto have executed this
lease, in duplicate, on the date first above written.
LESSEE:
Y
CITY OF SAN LUIS OBISPO
0
CITY DMINISTRATIVE OFFICER
C A -- .
FI C DI CTOR
V j
COMMUNI DEVEIAPMEIJT DIRECTOR
DIRECTOR OF PUBLIC WORKS
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