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6.3 Lease Agreement - Alvin Farris CITY OF SALINA REQUEST FOR CITY COMMISSION ACTION DATE 10/15/2007 TIME 4:00 P.M. AGENDA SECTION ORIGINATING DEPARTMENT: APPROVED FOR NO: 6 AGENDA: PUBLIC WORKS DEPARTMENT ITEM NO. 3 BY: Page 1 BY: Michael Fraser ITEM: Resolution No. 07-6438 A resolution authorizing the City Manager to execute a farm lease agreement with Mr. Alvin Farris in the amount of $1 ,996.50. BACKGROUND: As a part of the North Ohio Overpass Project, the City of Salina purchased land on North Marymount Road across from the Wastewater Treatment Plant. This land was to help provide ground where an additional railroad spur could be installed between two sets of tracks that travel under the Overpass. The addition of this railroad track spur helped make possible the reduction in the number of crossing that citizens would have to travel across. Some of the excess land not used for the railroad tracks was to be considered for a possible future City composting site. However, in the meantime without any agricultural activity on this ground, weed began to grow and City crews were dispatch to mow them down. To reduce City maintenance expenses, bids were received in the spring of 2006 and a lease was granted to the highest bidder Mr. Alvin Farris. The term of the lease was from March 1, 2006 to November 1, 2006. The City was to receive $1,331 for rent of tracts 1 &3 (see map). It was thought that by the end of this time, some action might take place on a new composting site. However, no action on a composting site had been taken or was imminent, so Mr. Farris asked for an extension on this lease. A new lease was granted to Mr. Farris for the term of December 1, 2006 to December 1, 2007. The City would was to receive $800 for rent of tracts 1 &3. The reduction in the lease amount was that Mr. Farris did not use that ground until June/July of 2007 when he planted Sedan. Mr. Farris approached the City recently and asked to consider changing the timeframe of the lease from December to July. In addition, the term of the new lease would run from December 2, 2007 to July 15, 2009, subject to the right of the lessee to harvest any crops that are growing on that date. The amount of rent for the future lease is $1,996.50. This future rental amount for an 18 month timeframe is based on the original first year bid for $1,331, plus an additional $665.50 for an extra six months. At the end of this lease in July 2009, the City staff would rebid the lease agreement, if no action has developed concerning a new composting facility. FISCAL NOTE: No fiscal impact. However, the City would receive $1,996.50 for the rent. CONFORMANCE WITH THE STRATEGIC PLAN: Goal 3: The City will provide the highest quality of services, consistent with governing body direction available resources and staff commitment to quality. COMMISSION ACTION: Staff recommends approving Resolution No. 07-6438 authorizing the City Manager to execute a farm lease agreement with Mr. Alvin Farris in the amount of $1 ,996.50.