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22 Lake Gibbons Property CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: Originating Department: Presented By: Agenda Item No.: 3/18/09 Council Date: Legal 21, 3/23/09 RECOMMENDED MOTION: Awarding the bid and authorizing the execution of a Pasture Lease Agreement for approximately 165 acres of Lake Gibbons property for the pasture rights to the lowest responsible bidder, Dustin McFatridge in the amount of $3,501.00 per year and authorizing the City Manager to negotiate and execute all necessary documents. POLICY ISSUE(S): BACKGROUND: This Lake Gibbons property has been leased for pasture for many years. The previous lease expired on December 31, 2007 and because of some discrepancy of the property ownership the advertising for bids was delayed until the property lines could be better identified and new maps prepared. Legal Notice was published in the Paris News on February 22, 2009 and March 1, 2009 and bids were received until Tuesday, March 10, 2009 at 3:00 p.m. at City Hall. BOARD/COMMISSION RECOMMENDATION: N/A EXHIBITS: Draft Resolution and Pasture Lease Agreement, bid documents, bid tabulation. ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report ® Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance YTD Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: ® Administration ❑ City Clerk ❑ Community Development ❑ EMSAT ❑ Finance ❑ Fire ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities City of Paris 0 07 Revised 2/04/08 DRAFT attorney\reswork\current\Lake Gibbons Pasture Lease Awd Bid Res 2009 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS, AWARDING THE BID, APPROVING THE FORM OF THE LEASE, AND AUTHORIZING THE EXECUTION OF A PASTURE LEASE AGREEMENT FOR APPROXIMATELY 165 ACRES OF LAKE GIBBONS PROPERTY FOR THE PASTURE RIGHTS; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, by Legal Notice published in the Paris News on February 22, 2009 and March 1, 2009, the City of Paris solicited bids for the pasture lease consisting of approximately 165 acres of Lake Gibbons property for the pasture rights and bids were received until Tuesday, March 10, 2009 at 3:00 p.m. at City Hall, 135 1St Street SE, Paris, Texas; and, WHEREAS, the lowest responsible bid received for the pasture lease was made by Dustin McFatridge, 5660 FM 38 N, Brookston, TX 75421, in the amount of $3,501.00 per year, and he should be awarded the bid for such lease; and, WHEREAS, the form of Pasture Lease Agreement for such lease for the pasture rights attached hereto as Exhibit A, should be approved, and the City manager should be authorized to execute the same. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS: Section 1. That the findings set out in the preamble to this resolution are hereby in all things approved. Section 2. That the bid of Dustin McFatridge for the pasture lease, in the amount of $3,501.00 per year, is hereby accepted and let conditioned upon the lessee meeting all of the terms and specifications included in the bid documents. Section 3. That the form of Pasture Lease Agreement, attached hereto as Exhibit A, is hereby approved, and the City manager be, and he is hereby authorized and directed to execute on behalf of the City of Paris, a Pasture Lease Agreement with Dustin McFatridge, under the terms and conditions and in the form attached hereto as Exhibit A. Section 4. That this resolution shall be effective from and after its date of passage. 0 O0O80 PASSED AND APPROVED this 23rd day of March, 2009. Jesse James Freelen, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney ()ooo81. PASTURE LEASE AGREEMENT STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LAMAR § THIS LEASE AGREEMENT is made this 23rd day of March, 2009, by and between the CITY OF PARIS, TEXAS, a home-rule municipal corporation, of the County of Lamar and State of Texas, acting by and through its City Manager, duly authorized, hereinafter called LESSOR, Dustin McFatridge, 5660 FM 38 N., Brookston, TX 75421, hereinafter called LESSEE. WITNESSETH For and in consideration of the sum of Seventeen Thousand Five Hundred Five and no/100 Dollars ($17,505.00) cash, payable in equal annual installments of $3,501.00 each, the first of which will be due and payable on or before the 1St day of April, 2009, with a like payment being due and payable on or before the 1St day of April each year thereafter during the term of this Lease, the CITY OF PARIS has bargained and sold, and does by these presents bargain and sell unto the said LESSEE, for a period of five (5) years, beginning April 1, 2009, upon all that certain tract of land owned by the City of Paris, situated in Lamar County, Texas, and known as the Lake Gibbons property, consisting of approximately 165 acres of land for grazing purposes depicted as the shaded area on the map attached hereto as Exhibit A. Said LESSOR does hereby further grant and said LESSEE the right of ingress and egress to and from said property at any time during the period of this lease for the Pasture Lease Agreement - Page 1 EXHIBIT A purpose of grazing said lands, and for the purpose of inspecting, improving or fertilizing such lands. The term of this Lease is for five (5) years, beginning on the 1st day of April, 2009, and ending on the 31st day of March, 2014. IN CONSIDERATION HEREOF, it is mutually agreed by and between LESSOR and LESSEE: 1. That LESSEE pay to LESSOR, or order, at the City Hall in the City of Paris the agreed rental in advance, promptly and without neglect, default, and delay. 2. That LESSOR owns all fence now existing on the Lake Gibbons property, and maintenance of said fences shall be the responsibility of LESSEE. 3. That all improvements, including fences, made upon the premises by LESSEE, or at his instance or request, shall at once become the property of LESSOR and shall be surrendered to LESSOR upon the termination or expiration of this Lease. 4. That LESSEE agrees to pursue good land management practices with regard to the leased premises. 5. That LESSEE shall be responsible for supplying any and all needed supplies to be used at the leased premises. 6. That LESSEE agrees to shred the pasture area a minimum of one (1) time annually, unless LESSOR shall otherwise agree in writing. 7. That LESSEE will take good care of the leased premises and be responsible and make good to LESSOR all injuries and damages to the same caused by LESSEE or those under him and will deliver same to LESSOR at the expiration or termination of this Lease in Pasture Lease Agreement - Page 2 00008:3 as good condition as when completed, usual wear and tear alone excepted; and LESSEE will, upon the expiration of this Lease, peaceably yield up to LESSOR all and singular the premises and all future erections, additions, or repairs to or upon same, in good repair. 8. That it shall be lawful for LESSOR's Director of Parks and Recreation, or his designee, to enter upon the leased premises, and every part thereof, at all times for the purpose of inspecting and examining the condition thereof. 9. That LESSEE agrees to indemnify, save, keep, and hold harmless LESSOR from and against any and all demands, debts, liabilities, suits, claims, and causes of action of every kind and character whatsoever for damage or injuries to persons and/or property occurring on the leased premises resulting from LESSEE, his invitees, agents, servants, or employee's use, and LESSOR shall not be liable to LESSEE, his invitees, agents, servants, employees, or visitors due to the improvements located thereon, or hereafter constructed, or any other condition of the premises being improperly constructed, maintained, or being or becoming out of repair; LESSEE hereby waives any defects therein and agrees to hold and save LESSOR harmless from all claims for any such damages or injuries, and LESSEE must, at all times during the term of this Lease, and any extensions hereof, keep and maintain, in full force and effect, a policy or policies of insurance, providing at least $250,000.00 per person and $500,000.00 for any single occurrence for bodily injury or death and $100,000.00 for any single occurrence for injury to or destruction of property, indemnifying all persons for any and all damages, personal injuries, or property damages sustained in or upon the premises of said leased property, or any part thereof, as the result of the negligence of LESSEE, his invitees, agents, servants, or employees, and shall pay all Pasture Lease Agreement - Page 3 premiums due thereon when due. It is expressly provided that such insurance policy or policies shall and must be written and issued by a reputable insurance company or companies, with LESSOR as an additional insured, subject to approval by the City Attorney of the City of Paris, and LESSEE or his insurance carrier or carriers shall deliver a copy of any such policies to the City Clerk of the City of Paris, 150 1st Street S.E., Paris, Texas 75460, or furnish to said City Clerk a current letter or certificate from such company or companies, evidencing the fact that such insurance is in full force and effect at all times during this Lease, and any extension hereof, and specifically noting thereon that LESSOR is an additional insured. All such policies shall be written so that the LESSOR will be notified of cancellation or of any restrictive amendment of the policies at least thirty (30) days prior to the effective date of such cancellation or amendment. Notice shall be by certified mail, return receipt requested, addressed to the LESSOR at the following address: City Clerk, City of Paris, P. 0. Box 9037, Paris, Texas 75461-9037. It is understood, agreed, and provided that LESSOR shall not be liable or responsible to LESSEE for damages or loss of any kind whatsoever concerning the use of the properties leased herein, including, but not limited to, loss of animals pasturing on said premises, but the said LESSEE assumes all risks incident to and connected with the same. 10. Should LESSEE default in, or fail or refuse to keep any of the covenants, conditions, stipulations, and/or provisions herein contained, notice thereof shall be given, in writing, to LESSEE by LESSOR's Director of Parks and Recreation, giving LESSEE thirty (30) days to correct such discrepancy, and, in the event such default, failure, or refusal is not corrected within said thirty (30) day period, then this Lease may be terminated at Pasture Lease Agreement - Page 4 w 0 0 l~V~ ) LESSOR's option, and it shall be lawful for LESSOR to reenter the leased premises and remove all persons, property, and effects therefrom, all and every claim for damages for or by reason of said reentry being expressly waived. 11. That the LESSOR may, without penalty and at its sole option, and following thirty (30) days written notice, terminate this Lease as to the entire tract, or any part thereof, which may be necessary, in the event the LESSOR desires to use the property, or any portion thereof, for necessary municipal functions. LESSEE shall receive a pro rata reimbursement, based on time remaining and/or property remaining under this Lease, of any rentals paid to the date of termination. 12. In the event LESSEE shall keep each and every agreement contained herein and do and perform all the obligations required of him hereunder during the primary term of this Lease, an option is hereby given and granted to LESSEE to renew and extend this Lease for a period of five (5) years from and after the expiration of this agreement, for and in consideration of Seventeen Thousand Five Hundred Five and no/100 Dollars ($17,505.00), payable in equal annual installments of $3,501.00 each, the first of which will be due and payable on or before the 1st day of April, 2014, with a like payment being due and payable on or before the 1st day of April of each year thereafter during the term of said option. Said option may be exercised by Lessee's giving notice in writing of Lessee's intention to renew said lease on or before the 1st day of January, 2014. 13. The terms of this Lease are binding on, and the benefits herein inure to, the heirs, administrators, and executors of LESSEE. This Lease may not be assigned without the express written approval of LESSOR. Pasture Lease Agreement - Page 5 000086, EXECUTED on the dates shown in acknowledgements below. CITY OF PARIS, TEXAS By: Kevin Carruth, City Manager ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney LESSEE Dustin McFatridge STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned authority, on this day personally appeared Kevin Carruth, City Manager of the City of Paris, Paris, Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of , 2009. Notary Public, State of Texas Pasture Lease Agreement - Page 6 w lJt~lJ~~O•% STATE OF TEXAS § COUNTY OF LAMAR § BEFORE ME, the undersigned authority, on this day personally appeared Dustin McFatridge, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this _day of 2009. Notary Public, State of Texas Pasture Lease Agreement - Page 7 r Sw ; w ~ ~r p s "~j r 1 ) _ ~y 4 1 N *11 IV A vo~ till ~T• 0 R 1r 9 ~ t t .404 , rev s 's .fit ~ ~ .__y.~ ♦ Sa~-~- r ~ ~ ~-Y {f~ A w. } 4 ~ _ 11 ~ p a a s 1 T.. r._ t _ N LAKE GIBBONS ° ` oN m Z HAY LEASE 1~4 BID TABULATION PASTURE LEASE LAKE GIBBONS PROPERTY NAME ADDRESS BID AMOUNT Per Year 1. Dustin McFatridge 5660 FM 38 N $ 3,501.00 Brookston, TX. 75421 2. Jeff Reed 267 Co. Rd. 33050 $ 3000.00 3. Allee Farms 3314 FM 137 $ 1,823.00 4. $ 000090 BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: DU s Mc 17oJr. JI e (Name of person or Company Bidding) 5 (o (00 FM 3 t /y 6r0 0 k sfo..~ Tx 7SL a (Address) 90?- aY 9-3974 (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Pasture Lease consisting of approximately 165 acres located near Lake Gibbons, City of Paris, Lamar County, Texas: Pasture Lease $ 35q per year (Signature of Person Submitting Bid) (Date) - 0000 1 ~UL a w z r+ ~~~~Ua)Ju BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: J~ (Name of person or Company Bidding) 3 3o s`o (Address) A03 g /P9 3 (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Pasture Lease consisting of approximately 165 acres located near Lake Gibbons, City of Paris, Lamar County, Texas: Pasture Lease $ 0 per year 2- (Signaiir; f Person Submitting Bid) (Date) V N CC CS-j Ui W ~ ac QQ jr w 000()911 BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL FRROM: ,11 AY7 S (Name of person or Company Bidding) 3 /4/37 (Address) X03 - ~3 (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Pasture Lease consisting of approximately 165 acres located near Lake Gibbons, City of Paris, Lamar County, Texas: Pasture Lease S Z3 0° $1 per year 4p~ature of Person Submitting Bid) (Date) cc, ® ~ c ILJ C.') Q o cc vl J ~ J t'J PUBLISH TWICE Sunday: February 22, 2009 Sunday: March 1, 2009 LEGAL NOTICE The City of Paris will receive sealed bids at the office of the City manager, City of Paris, 135 First Street SE, P. 0. Box 9037, Paris, Texas 75461-9037, for the pasture rights on approximately 165 acres of City of Paris property at Lake Gibbons. Bids will be received until Tuesday at 3:00 p.m., March 10, 2009, at which time all bids will be publicly opened at the City of Paris City Hall building, 135 First Street SE, Paris, Texas, read aloud, tabulated and referred to the City Council for its consideration. Late bids will not be accepted or considered. Information specifications and bid forms related to this pasture lease may be obtained at the office of the City Manager, City Hall, 135 First Street SE, Paris, Texas 75460. The City of Paris reserves the right to reject any or all bids, to waive any informality in bidding, and to award bids as may be advantageous to the City. Time may be a consideration in the awarding of this bid. Bidders are notified of City exemption from otherwise applicable sales and excise taxes. All bids must be submitted on City of Paris bid form. CITY OF PARIS, TEXAS Janice Ellis, City Clerk 000091 BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: (Name of person or Company Bidding) (Address) (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Pasture Lease consisting of approximately 165 acres located near Lake Gibbons, City of Paris, Lamar County, Texas: Pasture Lease $ per year (Signature of Person Submitting Bid) (Date) SPECIFICATIONS PASTURE LEASE The amount bid will be a lump sum per year paid to the City of Paris. The area of the pasture lease is depicted on Exhibit A attached hereto and incorporated herein for all purposes. The area shaded in yellow on the attached Exhibit A is the land available in the pasture lease. The approximate acreage of the pasture area is 165 acres, more or less. Bidder should verify the adequacy of the size of the property and its suitability of use for Bidder's purposes. No warranty of any kind, express or implied, as to suitability of purpose or use, or otherwise, is made with regard to these specifications or the property and its use.. ➢ The fences and gates on the pasture area are owned by the City of Paris. ➢ Fence and gate and cattle guard maintenance shall be the responsibility of the Lessee. ➢ The pasture area shall be shredded a minimum of one time annually. ➢ Lessee agrees to practice good land management practices in regard to the leased premises. ➢ Lessee shall be solely responsible for the livestock placed on the pasture lease and Lessee agrees to release, hold harmless and indemnify the City of Paris, its elected officials, officers and employees from any claims, demands, damage, injury, or loss related to Lessee's operation and use of the pasture land. ➢ The length of the contract for the pasture lease shall be a period of five years with a five year option.