Item 4D
M E M O R A N D U M
July 28, 2008
To:
Shana Yelverton, City Manager
From:
Chris Tribble, Interim Director of Community Services
Subject: Approve the renewal of a lease agreement for grazing on
approximately 25 acres of undeveloped City property
Action
Requested:
Approval to renew a lease agreement with Mr. Roger Hutton
to allow grazing on approximately twenty-five (25) acres of
undeveloped City property located at Dove Road and North
White’s Chapel Blvd.
Background
Information:
The City has been leasing approximately twenty-five acres of
land to Roger Hutton for the grazing of livestock. This land is
part of the 34 acres owned by the City at Dove Road and
North White Chapel Boulevard, commonly referred to as the
DPS North site. Grazing on the undeveloped land provides a
cost effective method of maintaining the property without
utilizing staff time or City supplies and equipment. This
agreement has been positive for both parties involved.
Terms of the agreement requires that the tenant install and
maintain any fencing necessary to keep livestock confined;
obey all laws, ordinances, orders and rules and regulations,
and repair any damage to the premises caused by the
tenant. The tenant must also indemnify, defend, and hold the
landlord harmless from any liability loss, attorney’s fees,
expenses or claims arising out of these premises, whether or
not the claim arises out of the landlord’s act or omission.
The term of this agreement is twenty-four (24) months with a
renewal clause for another twelve months. Either party may
terminate this lease for any reason upon sixty (60) days
written notice to the other party.
Financial
Consideration:
The total revenue from this agreement is $8 per acre per
year. The City also has significant cost avoidance in the
maintenance of the affected acreage due to this agreement.
The City will still be responsible for maintaining the property
to acceptable standards but there are significant cost
savings due to the grazing.
Shana Yelverton, City Manager
City Council Meeting Date – August 5, 2008
Page 2 of 5
Financial
Impact:
The City saves the cost of mowing and maintaining
approximately 25 acres of undeveloped land during the
course of the lease. Savings would be realized in staff time
(2 staff) estimated at one and one-half hours per mowing,
plus drive time, and reduced impact on equipment and
supplies for approximately twelve mowings per year.
Estimated cost savings is approximately $15,000 annually.
Citizen Input/
Board Review:
N/A
Legal Review:
The lease has been reviewed by the City Attorney.
Alternatives:
Alternatives may include:
City Council approval as presented
City Council approval with modifications
City Council non-approval of proposed lease
agreement
Supporting
Documents:
Supporting documents include:
Proposed lease agreement
Staff
Recommendation:
Approval to renew a lease agreement with Mr. Roger Hutton
to allow grazing on approximately twenty-five (25) acres of
undeveloped City property located at Dove Road and North
White’s Chapel Blvd.
Shana Yelverton, City Manager
City Council Meeting Date – August 5, 2008
Page 3 of 5
Shana Yelverton, City Manager
City Council Meeting Date – August 5, 2008
Page 4 of 5
Shana Yelverton, City Manager
City Council Meeting Date – August 5, 2008
Page 5 of 5