Memorandum

City of Lawrence

Utilities Department

To:	David Corliss, City Manager Cynthia Wagner, Assistant City Manager Diane Stoddard, Assistant City Manager
From:	Jeanette Klamm, Utilities Programs Manager
CC:	Dave Wagner, Director of Utilities Mike Lawless, Assistant Utilities Director Scott Wagner, Management Analyst
Date:	November 24, 2010
RE:	December 07, 2010 City Commission Agenda – Approval for the City Manager to sign the lease extension for farm ground at the wastewater treatment plant

Please include the following item on the City Commission agenda for consideration at the December 7, 2010 meeting.

Approval for the City Manager to sign the lease extension for farm ground at the wastewater treatment plant.

History:   The farm ground located adjacent to the wastewater treatment plant has long been leased to local farmers for crop production. The current lease was bid 5 years ago and is held by Roger and Ralph Kitsmiller. The lease expires on December 31, 2010. The current lease allows for an extension of the lease if both parties agree. Roger and Ralph Kitsmiller have requested an extension on the lease. The current price is at or above the market rate for farm ground similar to this. The City of Lawrence Legal Department has reviewed the lease and drafted an extension agreement for an additional five years.

Project Funding:  The lease of City property is a revenue source. The current price paid for this property is $76 per acre or $4256 per year of income.

Recommendation Action:  Staff recommends approval for the City Manager to sign the extension to this lease agreement at the wastewater treatment plant.