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HomeMy WebLinkAboutAgricultural Lease with Doug Kurk at the Water Treatment Plant A t C► V At Co Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Debra Arkell, Director of Public Service Chris Kukulski, City Manager SUBJECT: Agricultural Lease with Doug Kurk at the Water Treatment Plant Expansion Lot MEETING DATE: July 14, 2008 Consent Agenda BACKGROUND: Doug Kurk has leased 24 acres at the Water Treatment Plant expansion lot since 1992. The City has renewed his lease every three years since then and his lease is up for renewal this month for a period of three years. His rental rate is 20% of the baled vegetation or a cash amount equal thereto. Mr. Kurk mows and bales the vegetation on the WTP expansion lot. A copy of the lease is attached. RECOMMENDATION: Authorize the City Manager to sign the Doug Kurk lease for a term of three years beginning August 1, 2008 FISCAL EFFECTS: The annual lease payment of 20% of the baled vegetation, or a cash amount equal, will be deposited into the Water Treatment Plant fund. Haying of vegetation done by Mr. Kurk benefits the City by saving money and staff time to perform this function. ALTERNATIVES: As suggested by the City Commission. Respectfully submitted, sk Debra H. Arkell, Director of Public Service Chris A. Kukulski, City Manager Report compiled on July 8, 2008 cc: Rick Moroney, WTP Superintendent Richard Hixson, City Engineer AGREEMENT THIS AGREEMENT, made and entered into this_1st_day of_Aug , 2008, by and between the city of Bozeman, a municipal corporation, P.O. Box 1230, Bozeman, Montana 59771-1230, hereinafter referred to as the City, and DOUG KURK, 550 Canary Lane, Bozeman, Montana, 59715, hereinafter referred to as the Operator. WHEREAS, the City owns certain land that requires mowing and disposal of vegetation growing thereon; and WHEREAS, the Operator wishes to mow such vegetation and remove it from the land. WITNESSETH: 1. Premises: For and in consideration of the consideration to be paid and the covenants to be performed by the Operator as hereinafter set forth, the City does hereby authorize the Operator to mow and bale the vegetation on that certain real property owned by the City of Bozeman, County of Gallatin, State of Montana, and more particularly described as follows, to wit: Water Plant expansion lot - - approximately 24 acres 7020 Sourdough Canyon Road Bozeman, Montana 59715 Operator is hereby notified that construction of a new water plant may impact the land covered in this agreement. City will provide operator a minimum of sixty(60) days written notice if construction will impact all or a portion of the subject land. 2. Term: This agreement shall be in force three (3) years from and after the date first above written, unless sooner terminated as herein provided. 3. Consideration: The Operator shall pay to the City, at the City's sole discretion, either twenty percent (20%) of the baled vegetation or a cash amount equal to twenty percent (20%) of the value of the baled vegetation based on current market prices at the time the vegetation is baled or any combination thereof. All of the crops, whether severed or unsevered, shall at all times be owned and belong to the City until such time as they are harvested and the division thereof shall be made by the parties hereto. If the City opts to receive the actual bales, the Operator further agrees to stack the City's twenty percent (20%) share at the site, free of all expense to the City, as soon as the vegetation is baled. If the City opts to receive the cash, it shall be payable within ten(10) days after the vegetation is sold but in no event later than one year from the date of baling. 4. Repairs and Improvements: The Operator agrees to protect all improvements upon said premises and to keep the same in reasonably good repair and bear all expenses of repairing fences and other improvements. 5. Use of Premises: The Operator further agrees to utilize said premises in a good and husband-like manner and according to the ordinary and accepted methods of husbandry employed in the area and to neither commit nor permit any waste thereon. Operator agrees that he will not use or permit to be used any part of the premises for any purpose other than normal farming without first obtaining consent of the City. The Operator further agrees to comply with all state, county, or city laws and regulations regarding the control of noxious weeds at the sole expense of the Operator and to hold the City harmless from said control of noxious weeds. The Operator may, at his own expense, fertilize the premises. 6. No Assignment: The Operator agrees that he will not assign this agreement, or any part thereof, without first obtaining the written consent of the City. 7. The City's Right to Terminate: The City hereby reserves, and Operator grants to the City, the right to terminate this agreement at any time upon sixty(60) days written notice, provided, however, that if the Operator has fertilized the premises and said sixty(60) days runs prior to any cutting, this agreement shall be extended until the first cutting has been completed. 8. Liability: The Operator agrees to indemnify and save harmless the City, its officers, agents and employees against and from any and all actions, suits, claims, demands or liability of any character whatsoever,brought or asserted for injuries to, or death of any person or persons, or damages to property arising out of, resulting from or occurring in connection with the performance of the work herein specified. The Operator assumes all responsibility and agrees to reimburse the City for any damage to property of the City caused by or occurring in connection with doing any work hereunder. 9. Notice: Notice may be given by either party to the other by mailing, postage prepaid, to the address hereinabove stated. 10. Right to Entry: The City, or its agents, shall have the right to enter the premises at all reasonable times. This right of entry shall not be deemed to impose upon the City any obligation, responsibility, or liability for the care, supervision, repair, operation, or use of the premises, other than as is herein specifically provided. Such re-entry shall not interfere with the use of the Operator. 11. Alterations or Improvements: No alteration, addition, or improvement to the premises shall be made by the Operator without the written consent of the City. Operator will be responsible to work with other owners and lease holders to provide said operators access. LESSE . ' L Doug Kurk STATE OF MONTANA ) ) ss. County of Gallatin ) On this day oft '' , 2008,before me, the undersigned, a Notary Public for the State of Montana, personally appeared DOUG KURK, known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana Nk IkA A V-) () O(k (Printed Name of Notary Public) Residing at�d-) i muy'- My commission expires - ( -Z(j 1 IN WITNESS WHEREOF, the parties hereto have set their hands and seal the day and year first above written. LESSOR: CITY OF BOZEMAN By: Chris A. Kukulski City Manager ATTEST: Stacy Ulmen City Clerk STATE OF MONTANA ) ) ss. County of Gallatin ) On this day of ,2008,before me, the undersigned a Notary Public for the State of Montana,personally appeared CHRIS A. KUKULSKI and STACY ULMEN, known to me to be the City Manager and City Clerk,respectively, of the City of Bozeman and the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same for and on behalf of the City of Bozeman. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first above written. (SEAL) Notary Public for the State of Montana (Printed Name of Notary Public) Residing at My commission expires