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Item 5LCity of Southlake, Texas M E M O R A N D U M May 9, 2006 TO:Shana Yelverton, City Manager FROM:Steve Polasek, Director of Community Services Authorize renewal of a lease agreement for grazing on undeveloped SUBJECT: property (17.373 acres) in Bicentennial Park Action Requested: City Council authorization to renew a lease agreement to allow grazing on approximately 17.373 acres of undeveloped park land in Bicentennial Park with Mr. and Mrs. Ralph Evans for a period of fourteen (14) months, to expire on July 31, 2007. Background Information: The City of Southlake presently owns approximately 17.373 acres of undeveloped park land along the west side of Bicentennial Park typically referred to as the Evans property. This property is currently leased to Ralph and Linda Evans with the existing agreement scheduled to expire on May 31, 2006. The land is primarily covered in grass and has been utilized in past years for grazing approximately five head of cattle. Following a review of planned City development and use of the property it is anticipated that an extended grazing lease would not interfere with future development while also providing a cost effective method of maintaining the property without utilizing staff time or City equipment. The proposed lease would be for an additional fourteen (14) month period, expiring on July 31, 2007, with the opportunity to terminate at any time with sixty days written notice. The proposed tenants (Mr. and Mrs. Ralph Evans) would be responsible for accepting the property in its present condition, mowing and maintaining the premises in a good, safe condition, and vacating the premises upon termination of the lease. As indicated, Mr. and Mrs. Evans have previously had a grazing lease with the City for this property and have proven to be good caretakers of the land. Financial Consideration: There is no direct financial impact resulting from this request. Financial Impact: The City saves the cost of mowing and maintaining approximately seventeen acres of undeveloped land during the course of the lease. Savings estimated at $3,500 would be realized in staff time based on three to fours hours per mowing and reduced impact on equipment and supplies for approximately twelve mowings per year. Citizen Input/ Shana Yelverton, City Manager May 9, 2006 Page 2 Board Review: The Parks and Recreation Board recommended approval of the proposed renewal (6-0) at their May 8, 2006 meeting, with the addition of wording to allow for sixty day notification of termination to apply to all or a portion of the property. Legal Review: The City Attorney has reviewed the proposed agreement and there are no substantive changes from the previous lease document. Alternatives: Alternatives may include: Council approval Council approval with revisions Council decision not to approve Supporting Documents: Supporting documents include: Proposed lease agreement renewal Staff Recommendation: City Council authorization to renew a lease agreement to allow grazing on approximately 17.373 acres of undeveloped park land in Bicentennial Park by Mr. and Mrs. Ralph Evans for a period of fourteen (14) months, to expire on July 31, 2007. Shana Yelverton, City Manager May 9, 2006 Page 3 LEASE BETWEEN CITY OF SOUTHLAKE AND W. RALPH EVANS AND LINDA S. EVANS I. Terms and Definitions Date: June 1, 2006 Landlord: City of Southlake Landlord’s Address: 1400 Main Street, Suite 270 Southlake, Texas 76092 Tenant: W. Ralph Evans and Linda S. Evans Tenant’s Address: , 315 Shady Oaks Drive Southlake, Texas 76092 Premises: Approximately 17.373 acres and improvements, located in Southlake, Tarrant County, Texas as described in the attached Exhibits “A” and “B”. Rent: $1.00 for term of lease Term (months): Fourteen (14) months. Commencement Date: June 1, 2006. Termination Date: July 31, 2007, or upon sixty days written notice from either party for all or a portion of the property. Use: For agricultural purposes only II. Lease Clauses and Covenants 1. Tenant Agrees to – “as is” a. Accept the premises in their present condition , the premises being currently suitable for Tenant’s intended use. In this regard, Tenant acknowledges that Tenant has inspected the premises, and has found them free from defect or dangerous condition as of the date hereof. b. Obey all laws, ordinances, orders, and rules and regulations applicable to the use, condition, and occupancy of the premises. Shana Yelverton, City Manager May 9, 2006 Page 4 c. Allow Landlord to enter the premises, with reasonable notice. d. Repair and maintain the premises. This shall include mowing and maintaining the premises in a good and safe condition. e. Repair any damage to the premises caused by Tenant. f. Maintain insurance on Tenant’s personal property. g. Deliver certificates of insurance to Landlord on or before the Commencement Date and prior to renewal of policy. Tenant will carry Liability and Property Damage Insurance sufficient to provide adequate protection against damage claims which may arise from operations under this Contract. Tenant hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the Landlord, it being the intention that the insurance policies shall protect all parties to the contract and be primary coverage for all losses covered by the policies. INDEMNIFY, DEFEND, AND HOLD LANDLORD, ITS AGENTS, OFFICIALS h. AND EMPLOYEES HARMLESS FROM ANY LIABILITY LOSS, ATTORNEY’S FEES, EXPENSES, OR CLAIMS ARISING OUT OF USE OF THE PREMISES. NOTHING CONTAINED HEREIN SHALL BE CONSTRUED TO LIMIT OR WAIVE ANY GOVERNMENTAL OR SOVEREIGN IMMUNITY OF LANDLORD OR ANY IMMUNITY APPLICABLE TO ITS OFFICERS, AGENTS, SERVANTS OR EMPLOYEES, NOR SHALL IT BE CONSTRUED TO LIMIT OR WAIVE ANY INSURANCE COVERAGE OR THE LANDLORD’S STATUS AS AN ADDITIONAL NAMED INSURED AS PROVIDED IN AGREEMENT. i. Vacate the premises on termination of this lease. j. Use the premises solely for Tenant’s intended uses, which Tenant represents, acknowledges and agrees is agricultural, specifically, grazing of livestock. Tenant agrees not to – 2. a. Use the premises for any purpose other than that stated in the basic lease terms and definitions. b. Use the premises for any business purpose. c. (i) Create a nuisance, (ii) permit any waste, or (iii) use the premises in any way that is extra hazardous, would increase insurance premiums, or would Shana Yelverton, City Manager May 9, 2006 Page 5 void insurance on the premises. d. Alter the premises, except as agreed to in writing by the City of Southlake. e. Assign this lease or sublease any portion of the premises. Landlord and Tenant agree to the following: 3. Alterations. a. Any physical additions or improvements to the premises made by Tenant will become the property of Landlord. Default. b. Tenant shall be in default by failing to comply within ten days after written notice with any provision of this lease. Landlord’s Remedies. c. Landlord’s remedies for Tenant’s default are to (i) enter and take the premises on behalf of Tenant; (ii) terminate this lease by written notice and sue for damages. Landlord may enter and take possession of the premises by self-help, by picking or changing locks if necessary, and may lock out Tenant or any other person who may be entering the premises without being liable for damages. Default/Waiver/Mitigation. d. It is not a waiver of default if the non-defaulting party fails to declare immediately a default or delays in taking any action. Pursuit of any remedies set forth in this lease does not preclude pursuit of other remedies in this lease or provided by law. Holdover. e. If Tenant does not vacate the premises following termination of this lease, Tenant shall be a tenant at will and shall vacate the premises immediately upon receipt of notice from Landlord. No holding over by Tenant, whether with or without the consent of Landlord, will extend the term for any period of time whatsoever. Notices. f. Any notice required by this lease shall be deemed to be delivered (whether or not actually received) when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to Landlord or Tenant at their addresses. Abandoned Property. g. Landlord may retain, destroy, or dispose of any property left on the premises at the end of the term, and Tenant agrees that Landlord shall have no liability to Tenant regardless of disposition of such property. Shana Yelverton, City Manager May 9, 2006 Page 6 Landlord: _____________________________________ City of Southlake Tenant: _____________________________________ W. Ralph Evans _____________________________________ Linda S. Evans Shana Yelverton, City Manager May 9, 2006 Page 7 Exhibit A – Aerial View of Boundary Shana Yelverton, City Manager May 9, 2006 Page 8 Exhibit B – Legal Description Tracts 2B, 2A2, 3C1A, 3C, and 3D1 out of the L. Hall Survey, Abstract #686, being approximately 17.373 acres, more or less