Memorandum

City of Lawrence

Utilities Department

TO:	Diane Stoddard, Interim City Manager Casey Toomay, Assistant City Manager
FROM:	Jeanette Klamm, Management Analyst
CC:	Dave Wagner, Utilities Director Mike Lawless, Deputy Director
DATE:	December 15, 2015
RE:	Authorize the Interim City Manager to extend the agreement for the lease of farm ground at the Kaw Wastewater Treatment Plant for

Background

The farm ground located adjacent to the Kaw River Wastewater Treatment Plant has long been leased to local farmers for crop production. The current lease was entered into in 2006 for the term of 5 years and was extended for an additional 5 years in 2011. The current tenants are Roger and Ralph Kitsmiller. The extended lease expires on January 1, 2016. The current agreement allows for an extension of the lease if both parties agree.

Project Description

Roger and Ralph Kitsmiller have requested an additional extension on this lease. The current price is comparable to current market rate for farm ground similar to this.  The City of Lawrence Legal Department has reviewed the original lease and extension and drafted an additional extension agreement for an additional one (1) year term.

Staff Recommendation

Staff recommends that the City Commission authorize the Interim City Manager to enter into the one (1) year extension to the lease agreement for the farm ground at the Kaw River Wastewater Treatment Plant.

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.

Action

Authorize the Interim City Manager to enter into a one (1) year extension of the lease agreement for farm ground at the Kaw River Wastewater Treatment Plant.