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HomeMy WebLinkAbout20230254.tiffCity of Thornton Thornton Infrastructure Maintenance Center 12450 Washington Street Thornton, CO 80241 www.ThorntonCO.gov January 5, 2023 Ms. Karla Ford, Office Manager Office of Board of County of Commissioners Weld County 1150 O Street P.O. Box 758 Greeley, CO 80631 RE: City of Thornton Agricultural Stewardship Program Report Dear Karla: Infrastructure Department Water Resources Division PH 720-977-6600 Attached for the Weld County Board of County Commissioners' review is the city of Thornton's 2022 Annual Agricultural Stewardship Program Report, which summarizes certain land management activities on Thornton's Weld County properties during 2021. Thornton representatives will be available to meet with the Commissioners in 2023 during the month of March to address questions from the report, or other issues of interest. I will contact you after the first of the year to set a date for this meeting and to establish an agenda. Thornton has provided this report to Weld County since 2008, and we hope that it serves as a helpful tool for the County. We continue to strive toward open communication with the Commissioners and County staff throughout the year. Please feel free to contact me with any questions or concerns at Emily.Hunt@thorntonco.gov. Sincerely, Emily Hunt Deputy Infrastructure Director EH/ cc: Brett Henry, Executive Director— Infrastructure Ed Lanyon, Senior Water Resources Administrator MLCR CoMMun ; Go•tion 5 of/2S/23 2023-0254 City of Thornton 1T 2022 Agricultural Stewardship Program Report Prepared for the Weld County Board of County Commissioners December 31, 2022 Executive Summary Thornton acquired farm land and water rights in Weld County in 1985 and 1986 as part of a water supply project. Since 1986, Thornton has contributed over $17 million to the local Weld and Larimer County economies through its Agricultural Stewardship operations, including Voluntary Payments in Lieu of Taxes to Weld and Larimer County agencies, and the use of local vendors on Thornton's projects and operations. Thornton owns 104 farms on approximately 17,161 acres in Weld County. In 2022, there were 6,941 acres included in Thornton's Revegetation Program in Weld County. To date, 6,033 acres have been approved as established self- sustaining dryland grasses by the Natural Resources Conservation Service. Thornton's 2022 Revegetation Program successfully maintained these self- sustaining dryland grasses with weed management, mechanical mowing, cutting, and baling. The remainder of the farms in Weld County will stay in irrigated agriculture until the water is needed for municipal use in Thornton. It is currently estimated that additional conversions from irrigated agriculture to self-sustaining dryland grasses will not be needed until approximately 2030. Thornton currently owns 56 farm houses in Weld County, the majority of which were leased to Weld County residents in 2022. Thornton's Farm House Repair Program addresses repair needs on Thornton - owned houses and outbuildings. Thornton uses local contractors and vendors for this program to perform anything from re -roof projects, window replacement, new siding, painting, structural fixes, to septic replacements. In 2022, for the fourth year in a row, Thornton utilized the transmountain water associated with a small number of Water Supply and Storage Company shares for its own use. Transmountain water that Thornton did not utilize was leased back to Water Supply and Storage Company for the benefit of all shareholders. In 2020, Thornton initiated a grazing project on Farm 60-5. Through a public Request for Proposals, a local cattle grazing operator was selected and grazing operations began in January 2022. In 2022, Thornton continued to make progress on the Thornton Northern Properties Stewardship Plan (TNPSP) that will help inform the long-term uses of Thornton's farm properties. In 2022, the TNPSP Steering Committee held four meetings where they provided feedback on a Regional Land Use Assessment. 2 Steering Committee members were provided a regional market/economic analysis, a preliminary landscape analysis, and a tour of the Thornton properties in Larimer and Weld counties for additional context. Additionally, in the fall of 2022 the Water Optimization Study and the Regional Working Groups were initiated to provide the Steering Committee additional feedback on the issues and opportunities surrounding the future land use of Thornton's properties. Thornton continued to partner with the Ault -Pierce Fire Department to allow ice rescue training to take place at the ponds on Thornton farms. Introduction In 1985 and 1986, Thornton purchased over 20,000 acres of farms and associated water rights in Weld and Larimer Counties. Thornton purchased the assets for a water supply project that would be used to meet the demands of the growing city. Since Thornton's acquisitions of farms and water, Thornton has operated under a good neighbor policy of working with farmers, residents, businesses, and governmental entities to effectively manage its properties and provide benefits to the Weld County communities. This annual report provides a summary of Thornton's 2022 operations and activities in Weld County. Since 1986, Thornton has operated a local Agricultural Stewardship Office (formerly known as the Farm Management Office). Thornton's Agricultural Stewardship staff recently marked the 4 -year anniversary of working out of the newly constructed office in the Town of Ault. The office is located on 313 acres of Thornton owned land that was annexed into the Town of Ault in 2017. The function of the Agricultural Stewardship Office is to oversee the operation, leasing, management, and maintenance of Thornton's properties in Weld and Larimer Counties. Thornton cash -leases its farms to local farmers, and several farmers who originally sold farms to Thornton continue to lease these farms from the city. Other Thornton farms have been removed from irrigated agriculture, and Thornton has converted, or is in the process of converting, these farms to self-sustaining dryland grasses. This conversion of farms from irrigated agriculture to a non -irrigated use is required by Thornton's Water Court Decree and must be satisfactorily accomplished before Thornton can deliver water to Thornton customers. The Thornton Agricultural Stewardship Office pro -actively manages Thornton's properties, tenants, vendors, and responds to issues and concerns when they arise. Since 1986, Thornton has spent over $17 million on its Agricultural Stewardship operations, which include activities such as tree trimming, structural repairs, reroofs, plumbing/heating and electrical repairs, and culvert replacements. In addition, since 1987, Thornton has made voluntary payments in lieu of taxes to taxing authorities in Weld and Larimer Counties. Since 2010, Thornton has adjusted its voluntary payments to the counties to reflect changes in property values and the local tax schedule. The 2022 voluntary payment to Weld County taxing authorities was $309,900. Since 1987, approximately $6,557,186 has been paid to Weld County taxing authorities. 3 Over the years, Thornton has partnered with local governmental entities and businesses to enhance their operations. For example, Thornton sold land and the associated mineral rights to the Weld County RE -9 School District for expansion of the school campus in Ault and construction of a new station for the Ault/Pierce Fire District. The city has also worked with local agricultural producers to acquire land to improve their operations. Fagerberg Produce expanded their onion processing facility onto land acquired from Thornton and Longs Peak Dairy has acquired three Thornton farms to improve their operation. In addition, the City was able to contribute to the purchase of a new stock trailer and the annual student labor sale for Highland High School's FFA program. Since 2003, Thornton has leased approximately 82,096 acre-feet of water to the Central Colorado Water Conservancy District (Groundwater Management Sub -district and Well Augmentation Sub -district) for operation of an augmentation plan for irrigation wells in Weld County. The North Weld County Water District (North Weld) approached Thornton in early 2020 about the need to secure additional back-up water supplies while the Soldier. Canyon Outlet at Horsetooth Reservoir was shutdown for repairs. Thornton and North Weld entered into an Intergovernmental Agreement where Thornton would lease up to 800 acre-feet of Thornton's transmountain water to North Weld during the repair project. The repair project was completed ahead of schedule and North Weld ultimately did not need to take delivery of Thornton's water. Thornton looks forward to its continued contribution to and cooperation with the Weld County community. Thornton's 2022 Agricultural Stewardship Operations Reveqetation Proiect Thornton currently owns 104 farms on approximately 17,161 acres in Weld County. To date, a total of 6,941 acres in Weld County have been taken out of irrigated agricultural production and have, been, or are in the process of being, revegetated to self-sustaining dryland grasses. Total approved revegetated acres by the Natural Resources Conservation Service (NRCS) is 6,033 acres. An additional 788 acres of land in Larimer County are currently in Thornton's revegetation program. Thornton implements its revegetation program in Weld and Larimer Counties with contractors and vendors that are selected through a competitive bid process that is advertised locally. Since 2006, all revegetation contractors and vendors have been from the local Weld and Larimer County communities. Since 2006, Thornton has spent approximately $3,900,000 with these local vendors on its revegetation project. Attached is a current map of the Thornton properties located in Weld County. Thornton's revegetation program has resulted in the successful establishment of a self- sustaining, dry -land cover on the farms that have been removed from irrigated agricultural 4 production. Each farm is unique, and the revegetation process is highly dependent on natural moisture. Thornton evaluates and adjusts its revegetation methods on a yearly and farm -by -farm basis. In 2020, Thornton conducted a rangeland health evaluation of Farm 60-5 and developed a cattle grazing plan for the farm. The plan was developed with the assistance of a cattle grazing expert. The plan outlined property upgrades to implement in order to be prepared for cattle grazing. During 2021, the ASO worked to upgrade the perimeter fencing, installed a 1 -acre centralized holding pen to transfer cattle to new paddocks, installed a water supply system for the holding pen, and developed a cattle grazing lease agreement template. A Request for Proposals was advertised and a local grazing operator was selected to begin grazing operations on the farm in January of 2022. The tenant grazes approximately 40 AU's (Animal Units) on the farm. Thornton does not allow horse grazing on its properties because this activity has led to erosion issues in the past. The dryland grasses on the other farms that have been revegetated may be cut and baled by local vendors when natural moisture has been enough to produce a harvestable stand of grass. This procedure maintains the health of the dryland grass. Lack of moisture in 2022 reduced the growth of the dryland grass. Therefore, no dryland grass was harvested in 2022. Thornton's current plans are to complete revegetation and obtain NRCS approval on a total of 6,941 acres in Weld County by 2025. The remainder of the farms in Weld County will stay in irrigated agriculture until the water is needed for municipal use in Thornton. It is currently estimated that additional conversions from irrigated agriculture to self- sustaining dryland grasses will not be needed until after 2030. This timeline is a planning estimate and is subject to change to meet Thornton's water supply needs. A significant portion of the Water Supply and Storage Company (WSSC) water that was used to irrigate Thornton's revegetated farms continues to be used within the WSSC irrigation system on farms that are still in irrigated agriculture. Tenants of Thornton -owned farms have priority in renting this surplus water. After those requests have been fulfilled, most ofthe remaining water is rented to other farmers throughout the WSSC system on a first come, first serve basis. Pursuant to Thornton's Water Court Decree, Thornton has initiated a recharge program to help maintain the ground water levels in the alluvial aquifer around the Ault area for well users. This program develops and implements recharge facilities that replicate historic Thornton farm groundwater return flows that accrued to the alluvial aquifer by utilizing recharge ponds to infiltrate water back to the aquifer. 2021 saw the construction, and successful implementation, of Thornton's first recharge facility located on farm 61- 27. The following are some pictures of certified grass fields that area part of the Revegetation Program as well as a map of the revegetation program. 5 Farm #72 Located at the intersection of CR 94 and CR 39 Located at the intersection of CR 94 and CR 41 Farm #61-27 Located at the intersection of CR 90 and CR 43. Picture shows the recently constructed recharge facility 8 2022 Thornton Agricultural Stewardship Office Revegetation Map - Weld County del Active Revegetation Passive Revegetation Sold NRCS Established C--) Other Irrigated Acres NORTH .nn I .t. 11 at It s Latimer County C anal rstart of the Pierce Lateral f' ,/I t,f ► II Man nit 114 11 55 24 49 N80-22 Latimer Cam, Canal (conts4 Severance 95 tie ftv ti Start of the Collins Lateral 75 118- 2933 80-2 tasMp• tan n df a • • .32' 60-5 .. el T\Nif at42 192-2gie 16 90 an 92-34 110 ,h • . E 25 2E 60-1 93 23 en 40-5 2W 140/53 53-6 73 2E 118-11 W 67 22 5 �1-10 76 111 198 6112 61-15 35 fir 2 47 tat t.r. 49 S M 113 13 50 9 58E 4 85 I test. I .,., 92-3 h... Acreage Status for Weld County Farms as of November 2022 Weld County NRCS Established Acreage: 6,033 Weld County Total Acreage in Revegetation Program: 6,941 Last updated 11/22/2022 0 0.5 1 2 3 Miles 4 Thornton's Irrigated Farms The Thornton farms that remain in irrigated agricultural production in Weld County are leased to local farmers on a cash -lease basis at market rates. Water from ditch company shares or wells is provided with the leases for irrigated land. Thornton generally provides three-year leases to allow farmers to adequately plan their operations. These farms had the following approximate crop distribution in 2022: Crop Shell Corn (used for dairy/cattle feed) Silage Corn (used for dairy/cattle feed) Wheat (used for flour/feed) Alfalfa (used for dairy/cattle feed) Sugar Beets (used for sugar) Onions (used for human consumption) Thornton's Residential Houses Percent 10% 40% 5% 35% 5% 5% In 2022, of the 56 houses owned by Thornton in Weld County, most of them were leased. These houses are leased on an annual basis. Thornton's houses provide affordable housing options for residents in Weld County. Thornton's house tenants take pride in their homes, and generally stay in the houses for over five years. The city has tenants who have been leasing houses from Thornton since 1986, as well as long-term tenants who have moved from one Thornton farm house to another to meet their space needs. Sale of Thornton Houses In 2013, Thornton began the process of selling some of the houses it owns in Weld and Larimer Counties. To date, 20 houses have been sold. Thornton is not currently marketing any additional houses, but may do so in the future. Oil and Gas Leasing In November, 2022 Thornton sold a portion of its mineral rights. 2,840 mineral acres were sold, totaling 16 leases. Thornton retained approximately 4,676 mineral acres, 4,574 of which are in Weld County. In Weld County Thornton currently has five leases with Petroleum Development Corporation, 12 leases with Bayswater Petroleum, five leases with Extraction Oil and Gas, and two leases with Nickel Road Operating. These operators have a total of 90 active wells in Weld County under Thornton leases. Agricultural Stewardship Office Thornton's Agricultural Stewardship Office is located on 313 acres of its land that is annexed into the Town of Ault. The annexed land is on the northern edge of town: south of WCR 84, between WCR 33 and WCR 35. Thornton's three permanent, full-time Agricultural Stewardship employees moved into the new office in late November of 2018. 10 There are three other buildings on the property that are currently being upgraded and used to house the City's pickups as well as other city equipment used to manage the properties in the area. The barn and the garage located on this property were re -roofed in 2019. In 2020, the pole barn received a new roof and garage doors. The garage received structural repairs to the roof and concrete masonry unit walls. The garage had new windows and doors installed and the structure was also painted. Upgrades to the barn included new windows, door and siding repairs. In 2021, the pole barn and garage received updated electrical and garage door operators. The barn received new paint and doors to keep the elements and birds out of the building. Thornton Northern Properties Stewardship Plan In 2022, the city continued working on developing the Thornton Northern Properties Stewardship Plan (TNPSP). The overall goal of this plan is to identify the best long-term uses of over 18,000 acres owned by Thornton in Larimer and Weld Counties. Thornton's goal is to develop a plan that will successfully incorporate a vision that achieves outcomes that are in the best interest of Thornton and the local communities where the properties are located. In December 2021, the Steering Committee held their first meeting. The Steering Committee participants are made up of local Larimer and Weld County stakeholders who will help inform and guide the development of the TNPSP. The Steering Committee is charged with providing input, strategies, pathways, and to develop a set of recommendations on potential future land uses, development, and water use allocation/optimization. These recommendations will guide Thornton to achieve the City's management and divestment goals for these properties. In 2022, the Steering Committee held 4 meetings where the committee members learned about and provided feedback and guidance on the development of the Regional Land Use Assessment through a regional market/economic analysis, a preliminary landscape analysis, and a tour of the Thornton properties in Larimer and Weld counties. Additionally, in the fall of 2022 the Water Optimization Study and the Regional Working Groups were initiated. The Water Optimization Study will explore how a "continued irrigation" provision in Thornton's decree could help farmers, conservation groups, and other interested parties restore (with non -Thornton water) irrigation on Prime Farmlands poised to be dried and acquire that ground. The Regional Working Groups engage a larger number of Larimer and Weld county stakeholders in four distinct study areas to provide the Steering Committee further clarity and depth on the issues and opportunities surrounding the future land use of Thornton's properties. Thornton looks forward to making progress on these efforts and reporting the results in next year's report to the County Commissioners. 11 Ault -Pierce Fire Department Thornton and the Ault -Pierce Fire Department (Fire Department) have partnered for the past several years to allow ice rescue training to take place on the ponds at Farm 75 and Farm 80. Use of the ponds provides valuable training opportunities to the Fire Department that allow first responders to remain skilled in the event of an actual emergency. This training benefits the local communities and Thornton looks forward to continuing this relationship with the Fire Department. 12 Hello