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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. by-p/lease.wp by 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. slmtn/dfr#19 -� e-4�� . 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 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 �G � { 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 slmtnagr/dfr#19 � � f 1 ' � � � •K\ J} S � `F • .art. <4. 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