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2009-026-RES-AWARDING BID & APPROVING PASTURE LEASE @ LAKE GIBBONSRESOLUTION NO. 2009-026 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 FIIVDINGS 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, 135 151 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. PASSED AND APPROVED this 23rd day of March, 2009. sse Jam Freelen, Mayor ATTEST: ~ , nice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McI ya ttorney PASTURE LEASE AGREEMENT STATE OF TEXAS § COUNTY OF LAMAR § KNOW ALL MEN BY THESE PRESENTS: 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, and 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 five (5) 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 15t day of April each year thereafter during the term of this Lease (the "Rental Fee"), the LESSOR does hereby lease, let and rent unto LESSEE 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, as further depicted as the yellow shaded area on the aerial map attached hereto and incorporated herein as Exhibit A(the "Leased Premises") for grazing purposes, for a period of five (5) years, beginning April 1, 2009. LESSOR does hereby further grant LESSEE the right of ingress and egress to and from said Leased Premises at any time during the period of this lease for the purpose of grazing said lands, and for the purpose of inspecting, improving or fertilizing such lands. Pasture Lease Agreement - Page 1 EXHIBIT k IN CONSIDERATION OF THE REIIITAL FEE TO BE PAID AND OTHER GOOD AND VALUABLE CONSIDERATION, it is mutually agreed by and between LESSOR and LESSEE: 1. 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 ("Initial Term"). 2. That LESSEE shall pay to LESSOR, at the City Finance Department, 135 1St St. SE, Paris, Texas 75460 the agreed Rental Fee in advance, promptly and without neglect, default, or delay. 3. That LESSOR owns all fences, gates or other improvements now existing on the Leased Premises, and maintenance of said fences, gates and other improvements shall be the responsibiliry of LESSEE during the term of this Lease or any extension thereof. 4. That any and all improvements made, constructed or installed upon the Leased Premises by LESSEE, including but not limited to: fences, gates or cattle guards, shall at once become the property of LESSOR and shall be surrendered to LESSOR upon the termination or expiration of this Lease Agreement. 5. That LESSEE agrees to pursue good land management practices with regard to the Leased Premises. 6. That LESSEE shall be responsible for purchasing and applying any and all seed, fertilizer, weed killer, and/or other supplies necessary to properly maintain the Leased Premises. 7. That LESSEE agrees to properly shred the Leased Premises at least once every twelve (12) months during the term of this Lease or any extension or renewal thereof, unless LESSOR shall otherwise agree in writing. Pasture Lease Agreement - Page 2 8. 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 his control and will deliver the Leased Premises back to LESSOR at the expiration or termination of this Lease in as good or better condition as when the Lease began, usual wear and tear alone excepted; and LESSEE will, upon the expiration of this Lease, peaceably yield up to LESSOR all and singular the Leased Premises and all improvements, additions, or repairs to or upon same, in good repair. 9. That it shall be lawful for LESSOR or LESSOR'S authorized designee, to enter upon the Leased Premises, and every part thereof, at all times for the purpose of inspecting and examining the condition thereof. 10. That LESSEE agrees to indemnify, save, keep, and hold LESSOR, its elected officials, officers and employees harmless 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 releases therein and agrees to save and hold LESSOR, its elected officials, officers and employees 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 general commercial Pasture Lease Agreement - Page 3 liability insurance, providing coverage of 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 Leased Premises, 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 licensed to write insurance policies in the state of Texas, listing LESSOR, its elected officials, officers and employees 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 Leased Premises, including, but not limited to, loss or injury to any animals pasturing on said Pasture Lease Agreement - Page 4 Leased Premises, and the said LESSEE accepts the Leased Premises AS IS AND WHERE IS WITHOUT WARRANTY OF ANY KIND, and further, LESSEE assumes all risks incident to and connected with the same. 11. Should LESSEE default in, or fail or refuse to keep any of the covenants, conditions, stipulations, and/or provisions herein contained, LESSOR shall give LESSEE written notice thereof, 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 no refund of Rental Fee shall be due or owing. Pursuant to the Lease termination, LESSOR may reenter the Leased Premises, take full possession of the premises and remove all persons, property, and effects therefrom, all and every claim for damages for or by reason of said reentry or removal of persons or property being expressly waived by LESSEE. 12. That the LESSOR may, without penalty and at its sole option, and following thirty (30) days written notice to LESSEE, 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 Leased Premises, or any portion thereof, for any governmental, municipal or recreational purpose. In such event, LESSEE shall receive a pro rata reimbursement of any prepaid Rental Fees based on time remaining and/or property remaining under this Lease. 13. In the event LESSEE shall keep each and every covenant and 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 an additional period of five (5) years from and after the Pasture Lease Agreement - Page 5 expiration of the Initial Term of the Lease, for and in consideration of a mutually agreed upon Rental Fee amount. LESSEE must notify LESSOR in writing of LESSOR's intention to renew said lease on or before the 31st day of January, 2014. 14. Any notice required by this Agreement shall be in writing and may be delivered in person or by certified mail, return receipt requested addressed accordingly: LESSOR City Manager City of Paris P. O. Box 9037 Paris, TX 75461-9037 LESSEE Dustin McFatridge 5660 FM 38 N. Brookston, TX 75421 with a copy to: City Clerk City of Paris P. O. Box 9037 Paris, TX 75461-9037 15. This Lease shall be governed by the laws of the State of Texas. This Lease shall be performed in Lamar County, Texas, therefore, any legal actions arising hereunder shall lie in Lamar County, Texas. 16. LESSEE shall not sublease, assign or otherwise transfer any right, title or interest to any portion of the Leased Premises without first obtaining the prior written consent of the City manager of the City of Paris, Texas. 17. 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 6 EXECUTED on the dates shown in acknowledgements below. By: ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney STATE OF TEXAS § COUNTY OF LAMAR § CITY OF PARIS, TEXAS Kevin Carruth, City Manager LESSEE Dustin McFatridge 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 7 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 8 LAKE GIBBONS PASTU R E& HAY LEAS E