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23 Hay Lease Agreement CITY COUNCIL AGENDA ITEM BRIEFING SHEET a Item No.: Submittal Date: Originating Department: Presented By: 72233. 3/18/09 Counc il Date: Legal 3/23/09 RECOMMENDED MOTION: Awarding the bid and authorizing the execution of a Hay a Lease C o A or the ent for lowest approximately 250 acres of Lake Gibbons property in the amount of $3,275.00 per responsible bidder, Drew Crawford dba CK Hay Farms year and authorizing the City Manager to negotiate and execute all necessary documents. POLICY ISSUE(S): BACKGROUND: ears. The This Lake Gibbons property has been lease for because of some discrepancy of the previous lease expired on December 31, 2007 and property ownership the advertising for bids was delayed until the property in the Paris News better identified and new maps prepared. Legal Notice reeved until Tuesday, March on February 22, 2009 and March 1, 2009 and 10, 2009 at 3:00 p.m. at City Hall. BOARD/COMMISSION RECOMMENDATION: N/A EXHIBITS: Draft Resolution and Hay Lease Agreement, bid documents, bid tabulation. BUDGET INFO: ACTION : ❑ Financial Report El 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: EMS/IT ❑ Finance ❑ Fire ® Administration ❑ City Clerk ❑ Community Development ❑ Eng./Public Works [I Utilities ❑ Municipal Court ®Legal ❑ Library ❑ Police El Revised 2/04/08 City of Paris 000100 DRAFT attorney\reswork\current\Lake Gibbons Hay Lease Adv Bids 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 HAY LEASE AGREEMENT FOR APPROXIMATELY 250 ACRES OF LAKE GIBBONS PROPERTY FOR THE HAY CROP; 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 hay lease consisting of approximately 250 acres of Lake Gibbons property for the hay crop 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 hay lease was made by CK Hay Farms, 832 CR 32260, Sumner, TX 75486, in the amount of $3,275.00 per year, and he should be awarded the bid for such lease; and, WHEREAS, the form of Hay Lease Agreement for such lease for the hay crop 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 Drew Crawford, dba CK Hay Farms, for the hay lease, in the amount of $3,275.00 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 Hay 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 Hay Lease Agreement with Drew Crawford, dba CK Hay Farms, 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. 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 HAY LEASE AGREEMENT STATE OF TEXAS ) KNOW ALL MEN BY THESE PRESENTS: COUNTY OF LAMAR ) THIS LEASE AGREEMENT is made this 23`d day of March, 2009, by and between the CITY OF PARIS, TEXAS, a home-rule municipal corporation of the County of Lamar, State of Texas, , acting by and through its City Manager, duly authorized, hereinafter referred to as LESSOR, and Drew Crawford, dba CK Hay Farms, 832 CR 32260, Sumner, Texas, 75486, Lamar County, Texas, hereinafter referred to as LESSEE. WITNESSETH For and in consideration of the sum of Sixteen Thousand Two Hundred Seventy Five and no/100 Dollars ($16,275.00) cash, payable in equal annual installments of $3,275.00 each, the first of which will be due and payable on or before the 1 st day of April, 2009, with a like payment being due and payable on or before the I st day of April of 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 CK Hay Farms all the grasses and hay now standing and growing, and to be grown, and the right to cut and bale the same 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 170 acres of land in hay meadows, roughly depicted by the green shaded area on Exhibit A, attached hereto. Said LESSOR does hereby further grant and sell unto the said LESSEE the right of ingress and egress to and from said property at any time during the period of this lease for the purposes of cutting, mowing, baling, removing, inspecting, improving, or fertilizing such lands. HAY LEASE AGREEMENT - Page 1 EXHIBITA- m The term of this Lease is for five (5) years, beginning on the 1 st day of April, 2009, and ending on the 31 st 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 chemicals or other supplies to be used at the leased premises. 6. That LESSEE agrees to remove baled hay from the leased premises within ten (10) working days after such bailing takes place. 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 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. HAY LEASE AGREEMENT - Page 2 U 0.10 if 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 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 HAY LEASE AGREEMENT - Page 3 (lU(~1( 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. O. 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 hay and grasses grown and to be grown 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 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, HAY LEASE AGREEMENT - Page 4 ~l O 0.10 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 the sum of Sixteen Thousand Two Hundred Fifty and no/100 Dollars ($16,250.00), payable in equal annual installments of $3,275.00 each, the first of which will be due and payable on or before the 1 st day of, April 2014, with a like payment being due and payable on or before the 1 st 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 1 st 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. EXECUTED on the dates shown in acknowledgments below. CITY OF PARIS, LESSOR By: Kevin Carruth, City Manager HAY LEASE AGREEMENT - Page 5 ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney LESSEE Drew Crawford d/b/a CK Hay Farms 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, 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 expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this the day of , 2009. Notary Public, State of Texas STATE OF TEXAS ) COUNTY OF LAMAR ) BEFORE ME, the undersigned authority, on this day personally appeared Drew Crawford d/b/a CK Hay Farms, 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 the day of '2009. Notary Public, State of Texas HAY LEASE AGREEMENT - Page 6 . fl(lU_li.. g BID TABULATION HAY LEASE LAKE GIBBONS PROPERTY NAME ADDRESS BID AMOUNT Per Year 1. CK Hay Farms 832 CR 32260 $ 3,275.00 Sumner, TX. 75486 2. Dustin McFatridge 5660 FM38N $ 1,001.00 Brookston, TX. 75421 3. $ 4. $ BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL K fk J FROM: ~ / r / n1° (Name of person or Company Bidding) (Address) (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Hay Lease consisting of approximately 250 acres on Lake Gibbons property: Hay Lease $ -3 7-5- per year ~ r ft~3 , C; j~f i1C.:~ ye.:r ~ vy (Signature of Pe on Submitting Bid) (Date) OU(ItI10 Q~ ~Q Gf3 , C LLI v v Z b- 0 a C! i .y i ,1 000111 BID FORM TO: HONORABLE MAYOR AND CITY COUNCIL FROM: Du5 + M fq~r,~aP_ (Name of person or Company Bidding) 5Io(.0 2- -s r ri ~rGU S~O... TK 75Y a I (Address) q o 3- a4q -3a7 L (Telephone Number) I/We hereby submit the following bid in accordance with the attached specification for Hay Lease consisting of approximately 250 acres on Lake Gibbons property: Hay Lease $ 00 per year 3/8/0 9 (Signature of Person Submitting Bid) (Date) c LLJ CL- Q 6 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 1st Street S.E., P. 0. Box 9037, Paris, Texas 75461-9037, for the right to lease approximately 250 acres of City of Paris property near Lake Gibbons, FM 2820, Lamar County, Texas for hay production. 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 1st Street S.E., 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 may be obtained at the office of the City Manager, City Hall, 135 1st Street S.E., 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 ~x v 71 1~ T , 4" A At 4x " - i { Y Sh, . Lys , ,yf +J~ 11~~ t4>•~; I \ ~,~i 4L. , 4 ~ 'Ib v 1r +e t . It w- . 'r~r~R7eY~p~J.,lw 4" ~ 1 r ! ~yI-' ,~liC rµ".%Y~j¢.r " } . 1 ..fib a 5 LAKE GIBBONS 4 p' k oN m HAY LEASE m ~ ~ o not