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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