Memorandum
City of
Utilities Department
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TO: |
Dave Corliss, City
Manager |
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FROM: |
Jeanette Klamm, Utilities
Programs Manager |
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CC: |
Cynthia Boecker,
Diane Stoddard, |
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Date: |
March 26, 2007 |
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RE: |
Agenda Item
Request - Approval to |
Please place the following item on the City Commission agenda for consideration at the next available meeting:
Project Description. Lease of approximately 413 acres of farm ground located near the site of the Wakarusa Water Reclamation Facility.
Project Description/History. The City purchased property for the purpose of building the Wakarusa Water Reclamation Facility. The property has previously been used for agricultural purposes. To generate revenue, keep growth of weeds and brush controlled, and maintain wetlands options, the Utility Department intends to lease approximately 413 acres of the property to local farmers for agricultural production purposes on a year to year basis.
Project Status. A sealed bid was conducted to receive bids from interested parties to lease the property as per the City’s lease conditions. The sealed bids were opened publicly on March 25.
Project Details.
The submitted bid prices are as follows:
|
Farm |
$/acre bid |
|
Dailey Angus Farm L.L.P. |
$175.50 |
|
Tom Kelly |
$155.50 |
|
Tony Klamm |
$153.50 |
|
Shuck Implement Company |
$131.00 |
|
Neis Bros. Farm |
$88.00 |
|
Alan Osborne |
$87.77 |
|
Ralph Kitsmiller |
$82.60 |
|
Knabe Farms |
$70.00 |
A copy of the lease agreement has been reviewed and approved by Legal Services.
Project Funding. The lease of the City’s approximately 413 acres will return $72,481.50 to the City this year. This is an increase of $40,000 over choosing to not re-bid the lease this year and accepting last year’s price for an additional year.
Action Request. Staff is recommending that the City Commission authorize the City Manager to enter into a lease agreement with Dailey Angus Farm L.L.P for $175.50/acre/year payable to the City for the lease of City property.