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2010-125 RES RENEWAL LEASE WITH LOYD AND SYBIL BARROW FOR LAND APPLICATION OF SEWAGE SLUDGERESOLUTION 1V0. 2010-125 A RESOLUTIOIV OF THE CITY COUIVCIL OF THE CITY OF PARIS, TEXAS, APPROVING AND AUTHORIZING THE EXECUTION OF A RENEWAL LEASE AGREEMENT WITH LOYD BARROW AND SYBIL BARROW CONSISTING OF APPROXIMATELY 170 ACRES TO BE USED FOR LAND APPLICATION OF SEWAGE SLUDGE; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; A1VD PROVIDING A1V EFFECTIVE DATE. WHEREAS, the City Council did in Resolution No. 86-073, on July 28, 1986, authorize the execution of a lease contract for approximately 170 acres located approximately 7 miles northeast of the City of Paris to be used for land application of sewage sludge, with Loyd Barrow and wife, Sybil Barrow for a term of 10 years; and, WHEREAS, the City Council did in Resolution 96-080, on July 15, 1996, authorize the execution of a Renewal Lease Agreement with Loyd Barrow and wife, Sybil Barrow for another term of 10 years; and, WHEREAS, the term of said Renewal Lease Agreement expired on July 31, 2006, and the Barrows have offered the City of Paris the renewal of this agreement for a term of three (3) years with options at the expiration of the initial term; and, WHEREAS, it is deemed to be in the best interest of the citizens of Paris to accept the offer to renew this lease for a term of three (3) years with renewal options and a renewal Lease Agreement has been negotiated with Loyd Barrow and Wife, Sybil Barrow, upon the terms and conditions and in the form of Exhibit A attached hereto; and, WHEREAS, the form of such Lease Agreement should be approved and the Mayor of the City of Paris should be authorized to sign the same; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PARIS, 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 Lease Agreement with Loyd Barrow and Wife, Sybil Barrow, for approximately 170 acres for sludge application for the Wastewater Treatment Plant, is hereby approved. Section 3. That the Mayor of the City of Paris be, and he is hereby authorized and directed to execute on behalf of the City of Paris the Lease Agreement with Loyd Barrow and Wife, Sybil Barrow, for a sludge application site, upon the terms and conditions and in the form shown in Exhibit A attached hereto. Section 4. That this resolution shall be effective from and after its date of passage. DULY PASSED AND APPROVED this 13th day of December, 2010. Will Biard, Mayor ATTEST: . , nice Ellis, Ciry Clerk APPROVED AS TO FORM: ~ W. Kent McII ar, ity Attorney LEASE AGREEMENT STATE OF TEXAS § § COUNTY OF LAMAR § This Lease Agreement is made and entered into by and between Loyd Barrow and wife, Sybil Barrow, P.O. Box 551, Paris, Texas 75461-0551 (hereinafter collectively "Lessor") and the City of Paris, Texas (hereinafter "City"), a home-rule municipal corporation, acting by and through its Mayor, Will Biard, pursuant to Resolution No. Council of the City of Paris, Texas on hereto as Exhibit A. RECITALS duly passed by the City (date), a copy of which is attached WHEREAS, the City of Paris owns and operates a Wastewater Treatment Plant, located approximately 7 miles North 8 degrees east from the City of Paris, Texas. The Wastewater Treatment Plant generates a sludge product which must be properly disposed of in accordance with the laws of the State of Texas and City's Wastewater Treatment Plant Permit; and, WHEREAS, the City has chosen land application as the method for disposing of said Sludge, which application can best be made upon open hayfields or pasture land; and, WHEREAS, in accordance with prior lease agreements between the City and Lessor, the City has been spreading Sludge from the Wastewater Treatment Plant onto a 170-acre tract of land owned by Lessor for the last twenty-four (24) years (the "Application Site"); and, WHEREAS, Lessor no longer cultivates hay on the 170-acre Application Site and derives no benefit from the City's spraying of the Sludge or Effluent from the Wastewater Treatment Plant onto the Application Site; and, WHEREAS, Lessor acknowledges that his Property has not been harmed or damaged in any way by the City's spraying of Sludge or Effluent on the Application Site during the last 1 EXHIBITA_ twenty-four (24) years and he desires to enter into a new lease agreement with the City for this purpose. NOW, THEREFORE, in consideration of the premises, the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged the City and Lessor agree as follows: 1. DEFINITIONS Sec. 1.1. City. The home-rule municipal corporation and body politic incorporated under the laws of the State of Texas under the name of "City of Paris" or its official agents or legal representatives. Sec. 1.2. Lessor. Loyd Barrow and wife, Sybil Barrow. Sec. 1.3. Property Owner. Loyd Barrow and wife, Sybil Barrow, or their heirs or assigns, who are the owners in fee simple of approximately 530 acres of land in the Pyeatt Survey situated approximately 11,000 feet northeast of the City of Paris' Wastewater Treatment Plant property, and described below as the Property. Sec. 1.4. Property. Approximately 530 acres of land located in the Pyeatt Survey lying adjacent to the East boundary line of a County Road, more particularly described in Exhibit B attached hereto. Sec. 1.5. Application Site. A portion of Property owned by Lessor upon which stabilized sewage sludge is to be applied, said portion of land being approximately 170 acres in area and being more particularly described in Exhibit C attached hereto. Sec. 1.6. Sludge. Stabilized sewage sludge from City Wastewater Treatment Processing Plant. Sec. 1.7. Effluent. Treated wastewater from Wastewater Treatment Plant, approximately 7 miles north, 8 Degrees East of the City. 2 2. LEASE Sec. 2.1. In consideration of the monthly rental payment hereinafter provided in Section 3. l, Lessor does hereby agree to lease demise and let unto the City of Paris, Texas, the 170-acre tract more particularly described in Exhibit C as the Application Site for the purpose of disposing of the Sludge and Effluent generated by the City's Waste Water Treatment Plant. The Lease shall include right of ingress and egress to the Application Site and all necessary easements and rights-of-way for the City to dispose of Sludge and Effluent on the Application Site. 3. LEASE TERM Sec. 3.1 Term. The term of this Lease shall be for a period beginning on January 1, 2011 and ending on December 31, 2013. Within thirty (30) days of the expiration of the initial term of this Lease, City may provide written notice to Lessor of its intent to renew and extend the Lease for three (3) successive one-year terms, ending on December 31, 2016. 4. RENT Sec. 4.1 City agrees to pay Lessor as rent for the land described in this Lease the amount of One Thousand Five Hundred No/Dollars ($1,500.00) per month, with such rent being due and payable by the fifth day of every month, the first rental payment being due on or before January 5, 2011. 5. OTHER TERMS Sec. 5.1. Acceptance of Sludge. Lessor agrees to accept Sludge and Effluent from the Waste Water Treatment Plant delivered to the Application Site by City in such quantities and on such schedule as best suits the needs of the City of Paris. City shall be responsible for transport and delivery of the Sludge and Effluent to the Application Site. City will apply Sludge and Effluent in accordance with the City's Sludge Application Plan and in accordance with the rules and regulations of the Texas Commission on Environmental Quality ("TCEQ"). City will maintain records of the dates that Sludge is applied to the Application Site, and City shall be responsible for 3 all necessary State permits far Sludge application and Effluent irrigation. City shall maintain its equipment in proper working order except that Lessor shall be responsible for the cost of repairing damage or loss to any City equipment or pipelines on the Application Site which are damaged or lost as a result of Lessor's or Lessor's agents or representatives negligence or intentional wrongful act. City shall have right of access to Application Site twenty-four (24) hours a day, seven (7) days per week for the purpose of delivering and applying the Sludge and Effluent to the Application Site, inspecting the Application Site, maintaining, repairing and replacing pipelines or equipment. City shall be permitted to erect a small maintenance storage building on the Application Site if desired. City shall close gates when entering or leaving the Application Site. Sec. 5.2. Indemnification. City hereby releases, indemnifies and holds Lessor harmless from and against any claims, losses or damages brought against Lessor by a third party as a direct result of the City's application of Sludge or Effluent on the Application Site. This indemnification shall apply only to those losses or damages for which Lessor becomes liable pursuant to a final judgment from a court of competent jurisdiction. Sec. 5.3 Ownership ofEquipment. City shall retain ownership of all buildings, equipment and pipelines which City installs on Application Site and may remove the same at any time during the primary, renewed or extended term of this renewal agreement without reducing City's obligation to perform its obligations under this contract. Lessor shall grant City easements 20 feet on each side of buried pipelines and under any City building erected and the same shall be depicted on an easement and recorded in the Deed Recards of Lamar County, Texas, at such time as construction is completed. Upon such time that City no longer has a need for easements upon and across Lessor's property; Lessor may request the City to quitclaim the easement property back to Lessor. Sec.5.4. Crops or Hay Fields. City makes no warranty, express or implied, as to the appropriateness or fitness of the Sludge or Effluent for fertilizing or imgating the land underlying 4 the Application Site. Lessor hereby agrees to release, indemnify and hold the City and its elected officials, officers, agents and employees harmless from and against any claim, loss or damage to land, crops or groundwater underlying the Application Site or Property as a result of the City's application of Sludge or Effluent to the Application Site. Sec. 5.5. Livestock or Horses on Application Site. LESSOR shall be solely responsible for the safety and well-being of any livestock, horses or other animals which are allowed to graze or enter upon the Application Site. LESSOR hereby agrees to release, indemnify and to hold City and its elected officials, officers, agents and employees harmless from and against any loss, injury or damage to any livestock, horses or other animals that LESSOR allows to graze or enter upon the Application Site during the term of this lease or any extensions thereof. Sec. 5.6. Notice. Any written notice required or permitted under the terms of this Renewal Agreement shall be given and be deemed to have been duly served if either (1) delivered in person, or (2) deposited certified mail, return receipt requested, postage prepaid in the united States mail, addressed to the designated representative of the respective parties which are designated as follows: LESSOR: Mr. & Mrs. Loyd Barrow P. O. Box 551 Paris, TX 75461 CITY: City Manager City of Paris P. O. Box 9037 Paris, TX 75461 With a copy to: City Attorney City of Paris P.O. Box 9037 Paris, TX 75461 Sec. 5.6. Sole Agreement. That this Lease constitutes the sole and only agreement of the parties to this Lease and supersedes any prior understandings or written or oral agreements 5 between the parties respecting the subject matter of this Lease. Sec. 5.7. Amendments. That no amendment, modification, or alteration of the terms of this Lease shall be binding unless it is in writing, dated subsequent to the date of this Lease, and duly executed by the parties to this Lease. Sec. 5.8. Non-Waiver. No waiver of the either party's rights under this Lease shall be deemed to have been made unless expressed in writing and signed by an authorized representative of that Party. Sec. 5.9. Governing Law. That this Lease Agreement shall be construed under, and in accordance with, the laws of the State of Texas, and all obligations of the parties created by this Lease Agreement are performable in Lamar County, Texas. Venue for State court actions arising under this Agreement shall be exclusively in the courts of Lamar County, Texas; venue for federal court actions arising under this Agreement shall be exclusively in the Federal courts for the Eastern District of Texas. Sec. 5.10. Successors. This Lease Agreement shall be binding upon the successors and assigns of the parties hereto. EXECUTED on the dates shown in acknowledgments below. CITY OF PARIS, TEXAS By: Will Biard, Mayor ATTEST: Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney 6 LESSOR Loyd Barrow Sybil Barrow ACKNOWLEDGEMENTS STATE OF TEXAS § § COUNTY OF LAMAR § BEFORE ME, the undersigned authority, on this day personally appeared Will Biard, Mayor of the City of Paris, Texas, known to me to be the person whose names is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed. 2010. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of December, Notary Public, State of Texas 7 STATE OF TEXAS § § COUNTY OF LAMAR § BEFORE ME, the undersigned authority, on this day personally appeared Loyd Barrow and Wife, Sybil Barrow known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me t'hat they executed the same for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of December, 2010. Notary Public, State of Texas 8 EXHIBIT A (Resolution to be attached) A-1 ~ EXH1B17 B N . x-- inty Roac 12 13 14 poin_t ' Bearln Dlst+nce , P41nt 1 S 0° 27' 11 1,845.0 ft. 17 I 2 H 90° E 415.5 ft. la 3 S 0° E 960.0 ft. 19 4 N 90° 11 793.0 f t. 20 S S 0° E 1,540.0 ft. 21 ' 6 • H 90" E 207.0 (t. ZZ 7 N 0" E 115.5 ft. 23 8 H 88° 30' E 295.0 ft. 24 9 S 0' E 115.5 ft. 25 10 N 90' E 144.0 ft. 26 11 S 0" E 821.0 ft. 27 • 12 N 80': 70' E 1,467.5 (C. Za 13 ' N 89' E 1,711.0 (t. 29 11 ' N 0° 1! 655.0 (t. 30 IS N 80: 16' E 1,510.7 ft. 31 16 . • H 0° 17' E 1,438.6 (t. 3z R-7 21 ~ 0 eirtn , ln S 89' 4e' E 486.2 ft. H 0' E 462.0 ft. if 90' E 660.0 f t. N 0' E 1,294.0 (t. N 90= u 292,0 ft. N 0" E 210.0 ft. N 90'' N. 1,~56.0 ft: ' N 76" W 134,0 ft. • N 62° U 134.0 ft. N 44° 11 765.0 ft. • N 62° u 136.0 ft. fr 76° ft • 136.0 ft. . S 09° 70' 11 . 1,250.0 ft. N 89° 11 1,416.0 (t.• N 0° E 28.0 ft. H 90° V 1,200,0 ft. County.Road a 32 Situata )out 0.5 miles North 20 Degrees East o, e City of Paris, County of Lamar, and State af 7exas, a part of the Niram W1lbanks Survey N1007, John Cornelison Survey N1a0, and Edward Stephens Survcy A833. DEGINNING at a 30" oak tree for a corner at the Northwest corner of sald Wilbanks Survey 01007, said polnt also being the Northwest corner of a 265.13 acre tract of land conveyed to Martha Crawford Crane by deed recorded in Vol. 281, Page 525, of the Deed Records of satd County and State. TNENCE South 0 Degreas 27 Mlnutas Wast a distance of 1,845 feet to an tron pin for a corncr; , TiIENCE East a distance of 415.5 feet to an iron pin for a corner; Tf{ENCE South a distance of 360 feet to an iron p1n for a corner; T{IENCE West a distance of 393 feet to an iron pin for a corner; TIIENCE South along the East boundary 11nc of a County road a distance of 1,540 feet to an iron pin for a corner; 711ENCE East a distance of 247 feet; T}iENCE North a distance of 115.5 feet to an iron pin for a corner; THENCE North 88 Degrees 30 mtnutcs East a distance of 295 fect to an iron p1n for a corner; 7HENCE South 115.5 feet; 7EIENCE East a distance of 144 feet to an iron p1n for a corner; 711ENCE South a distance of 824 feet to an iron p1n for a corner; 7HENCE North Da Degrces 30 minutes East a distance of 1,467.5 feet; North 89 Degrees East a dtstanco*of 1,341 feet to an iron pin for a corner; 7NENCE North 0 Oegrees 7 mtnutes West a distance of G55 feet to a tree for a corner; 71iENCE North QO Degrees 4G minutes East a distance of 1,510.3 feet to an iron pin for a eorner; • 7HENCE North 0 Degrees 17 minutes East a distance of 1,438.6 feet to an iron pin for a eorner; 7HENCE South 09 Degrces 48 mfnutes East a distance of 406.2 feet to an iron p1n for a corner; 7{IENCE North a distance of 4G2 feet to an lron p1n for a corner; THENCE East a distance of 660 feet to an iron pln for a corner in the West boundary llne of a county road; TIIENCE North a distance of 1,294 feet to an Iron pin for a corner; TfIENCE West a distance of 292 feet to an iron pin for a corner; T}1ENCE North a distance of 270 feot to an lron pin for a corner; 7fIENCE along the South boundary llnc of a county road as follows: West 1,456 fcet; North 76 Dc9rces West 134 foet; North 62 Degrees Hest 134 feet; North AO Degrees Wast 165 Fcot; Nortli 62 Degrces West 17G feet; North 76 De9rees West 136 feet; South 09 Degrees 30 minutes West 1,250 feet; North 09 De9reos West 1,446 fent; to an lron p1n for a corner; TtfENCE North along the Nest boundary linc of said county road a distance of 20 feet to an lron pin for.a corner; TIIENCE West a distance of 1,200 feet to the place of begfnninq and containing 523,7.acres of land more or less, plus 3,6 acres that lie in sald county roads,,makin9 a total af 527.4 acres of land. R-7 EXH1BfT C 1 2 5. unty Road ~ G Po1nt 'Dearlnq Distance 1 S 0° 27' FI 1,045.0 ft. 2 N 900 E 415.5 'ft. ] S 0° E 360.0 ft. 4 tl 90° V 393.0 ft. 5 S 0° E 1540.0 ft. 6 N 90° E 281.0 ft. 7 N 0° E 115.5 (t. 0 11 80° JO' C 295.0 ft. 9 S 00 E 115.5 ft. IO II 900 E 144.0 ft. 11 S 0° E 130.0 tt. A H cDo 30' C 1275.0 ft. 11 N 16° JO' 4! 197010 ft. C S Dl° 30' E 870.0 ft. D N 0° E 2020.0 ft. E N 07° Fl 1010.0 (t. JI N 00 E 20,0 ft. 72 N 90° if 1200.0 ft. .'_1 21- . U~ 12 13 14 EXHIBIT C Located on aforementioned tract of land as described in Exhibit A, beginning at the Northwest corner of said tract, a 30 inch Oak tree. THENCE South 0 Degrees 27 minutes West a distance of 1845 feet to an iron pin for a corner; THENCE East a distance of 415.5 feet to an iron pin for a corner; THENCE South a distance of 360 feet to an iron pin for a corner; THENCE West a distance of 393 feet to an iron pin for a corner; THENCE South along the East Boundary of a County road a distance of 1540 feet to an iron pin for a corner; THENCE East a distance of 287 feet for a corner; THENCE North a distance of 115.5 feet to an iron pin for a corner; THENCE North 88 Degrees 30 minutes East a distance of 295 feet to an iron pin for a corner; THENCE South 115.5 feet for a corner; THENCE East a distance of 144 feet to an iron pin for a corner; THENCE South a distance of 130 feet for a corner; THENCE North 88 Degrees 30 minutes East a distance of 1275 feet for a corner; THENCE North 16 Degrees 30 minutes West a distance of 1930 feet for a corner; THENCE South 81 Degrees 30 Minutes East a distance of 830 feet for a corner; THENCE North a distance of 2028 feet to a point in the South boundary line of a County road for a corner; THENCE North 89 Degrees West a distance of 1070 feet to an iron pin for a corner; THENCE North along the West boundary line of said County road a distance of 28 feet to an iron pin for a corner; THENCE West a distance of 1200 feet to the point of beginning and containing 171.0 acres more or less. 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