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2. Lease Agreement - Wastewater Plant Sludge Disposal SiteCity of Kalispell Public Works Depaftment Posh Office Box 1997. Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax ( 06)75 -7831 REPORT TO: Mayor and City Council FROM: James C. Hansz, P.E., Director of Public Works SUBJECT: Rental Agreement, Wastewater Plant, 40 Acre Sludge Disposal Site MEETING DATE: 5 May 2003 BACKGROUND: For many years the City has maintained an agreement with Doug Wise to rent the use of the City's 40 acre sludge disposal site on Cemetery Road. Mr. wise has boarded his horses on the property and paid either a rent of $600/year or has provided the City with labor and equipment to spread and cultivate into the land the waste sludge from the treatment plant and other composting materials. This land maintenance work has formed the majority of our interest in maintaining this beneficial arrangement over the years and continues today. The cumulative results of these years of effort have greatly improved the overall visual condition of the City's property and have ensured that the City's primary interest in the site, its long-term use as a wastewater sludge disposal site, has continued without becoming a nuisance. The current agreement is up for renewal and will again run for a two year period. We strongly recommend continuation of this beneficial arrangement. RECOMMENDATION: Authorize City Manager to renew agreement with Doug Wise. ACTION REQUESTED: AT CITY COUNCIL MEETING OF S MAY 2003 — MOTION TO A UTHORIZE RENEWAL OF WWTPPROPER'TYRENTAL AGREEMENT WITHDOUG WISE FISCAL EFFECTS: Annual rent of $600.00, or offset of costs for equipment and labor to maintain property. ALTERNATIVES: As suggested by the City Council C":) P. Chris A. Kukulski Director of Public Works / i Engineer City Manager Report compiled 28 April 2003 Attachments: Rental Agreement, for period 1 May 2003 through 30 April 2005 May 5, 2003 Cemetery Road W WTP Property Rental Agreementdoe LEASE THIS AGREEMENT, made and entered into this day of by and between the City of Kalispell, a municipal corporation, hereinafter LESSOR, and Doug Wise, hereinafter LESSEE: WITNESSETH: LESSOR, hereby leases to LESSEE, certain real property situated in County of Flathead, State of Montana, more particularly described as follows: That portion of the Sl/2NE1/4 of Section 29, Township 28 North, Range 21 West, M.P.M., Flathead County, Montana, described as follows: Commencing at the center quarter corner of said Section 29; thence along the West line of the NE1/4 North 08°08'52" West a distance of 1288.95 feet to the South line of Cemetery Road (a 50 foot country road; thence along the South line of the road South 89°31'38" East a distance of 1352.27 feet; thence South 00°08'52" East a distance of 1288.21 feet; thence North 89033'31" West a distance of 1352.26 feet to the point of beginning. EXCEPTING Public Roads and Rights of Way. to hold said premises, unto LESSEE, from May 1, 2003 until April 30, 2005. In consideration of said Lease, LESSEE agrees with LESSOR as follows: 1) LESSEE agrees to pay annual rent of $600 for the period May 1, 2003 through April 30, 2005. 2) At the option of the City, as its maintenance requirements may require, LESSEE agrees to provide, in lieu of $600 annual rent for the leased premises, labor and equipment to disc into the soil, dry leaves, cover material, and waste sludge delivered to the site as a result of the Lessor's normal wastewater treatment operation and maintenance. 3) LESSEE agrees to utilize said leased premises only for the grazing of livestock owned by LESSEE, and not for any other purpose. 4) LESSEE shall not sublet the leased premises or any part thereof, or assign this Lease, without the written consent of the LESSOR. 5) It is agreed that this Lease may be canceled by either party at any time by sixty (60) days written notice... 6) This lease agreement may be extended by the City Manager for an additional two (2) year period by mutual consent of the LESSOR and LESSEE and subject to satisfactory agreement on the annual rent to be charged. 7) The parties to this Lease agree that the covenants and agreements contained herein shall be binding upon and inure to the benefit of their respective heirs, successors and assigns. DATED THIS DAY OF , 2003. CITY OF KALISPELL Doug Wise Chris A. Kukulski, City Manager