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HomeMy WebLinkAbout20220206.tiffRECEIVED DEC 302021 �Ctty of Thornton Thornton Infrastructure Maintenance Center 12450 Washington Street Thornton, CO 80241 www.ThomtonCO.gov December 29, 2021 Ms. Karla Ford, Office Manager Office of Board of County of Commissioners Weld County 1150O Street P.O. Box 758 Greeley, CO 80631 RE: City of Thornton Agricultural Stewardship Program Report Dear Karla: WELD COUNTY COMMISSIONERS 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 2021 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 2022 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 Emilv.HuntO-thorntonco.aov. Sincerely, Emily Hunt Deputy Infrastructure Director EH/ cc: Brett Henry, Executive Director — Infrastructure Ed Lanyon, Senior Water Resources Administrator MLCR cc. pd(ER/cr+), PL( -w), HL (8F/cs)i 2022-0206 CoMMun:ca f;onScACu-),FZ(D'�ao),AcT(c?kD) of/r7/2.. I /13 /2-2 City of Thornton 2021 Agricultural Stewardship Program Report Prepared for the Weld County Board of County Commissioners December 31, 2021 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 $16 million to the local Weld County economies through its Agricultural Stewardship operations, including Voluntary Payments in Lieu of Taxes to Weld 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 2021, there were 6,941 acres included in Thornton's Revegetation Program in Weld County, the same as 2018, 2019, & 2020. To date, 6,033 acres have been approved as established self-sustaining dryland grasses by the Natural Resources Conservation Service. Thornton's 2021 Revegetation Program successfully maintained these self-sustaining dryland grasses with weed management, mechanical mowing, cutting, and baling. In 2021, Thornton experienced an infestation of Army Worms on a majority of the revegetated farms. Roughly 400 acres were affected in Larimer County and 1,600 acres in Weld County. The worms ate through all living vegetation on the farms. Thornton addressed the Army Worms through spraying and mowed the farms when weeds became present. Thornton has observed that the natural grasses are slowly starting to grow again. Thornton will continue to monitor the farms to see if there are any areas that need to be reseeded. • 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 2021. To date, 20 houses have been sold. Thornton is not currently marketing any additional houses, but may do so in the future. • 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. • Thornton continues to perform improvements to the outbuildings and barn at the Agricultural Stewardship Office site. Improvements have included new windows, 2 doors, garage doors, paint, structural roof work, structural wall repair, and new roofs. In 2021, for the third 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 fencing project around Farm 60-5 in preparation of a pilot program for cattle grazing on the farm. Efforts in 2021 included research and development of the grazing lease template to be utilized for this project and any future grazing projects. This research involved reviewing leases and grazing programs from other entities such as the State of Colorado, Bureau of Land Management and various other private grazing associations. Thornton advertised a Request for Proposals (RFP) from cattle grazers in the fall of 2021 and received four proposals. Thornton selected the proposal deemed most responsive to the RFP and will be working with a local cattle grazing operation starting in January of 2022. The local cattle grazing operator will graze approximately 40 AU's (Animal Units) on the farm. • In 2021, Thornton continued to make progress on the development of the Northern Properties Stewardship Plan (NPSP) that will help inform and identify the long- term uses of the farm properties. Much of the work in 2021 was dedicated towards the successful effort of securing grant funding for the NPSP. Thornton is now moving forward with a public outreach effort to identify approximately 20 individuals who have an interest in serving on a Steering Committee during 2022 for the development of the NPSP. 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. 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 2021 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 3 -year anniversary of working out of the newly constructed office in the Town of Ault. The office is located on 313 acres of land that Thornton recently annexed into the Town of Ault. 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 $16 million on its Agricultural Stewardship operations, which include activities ranging from tree trimming, to structural fixes, to reroofs, to plumbing/heating and electrical repairs, to culvert replacements. In addition, since 1987, Thornton has made voluntary payments in lieu of taxes to taxing authorities in Weld County. Since 2010, Thornton has adjusted its voluntary payments to the counties to reflect changes in property values and the local tax schedule. The 2021 voluntary payment to Weld County taxing authorities was $228,400. Since 1987, approximately $6,247,286 has been paid to Weld County taxing authorities. 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 for Highland High School's FFA program. Since 2003, Thornton has leased approximately 78,935 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. 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 4 template. Recently, a Request for Proposals was advertised and a local grazing operator was selected to begin grazing operations on the farm in January of 2022. Thornton looks forward to its continued contribution to and cooperation with the Weld County community. Thornton's 2021 Agricultural Stewardship Operations Reveaetation 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 $3,500,000 with these local vendors on its revegetation project. Attached is a current map of the Thornton properties located in Weld County. There is currently one grazing lease in place on the city's revegetated farms in Weld County. This tenant works with Thornton to manage his cattle appropriately to maintain the health of the pasture grass on the farm. Thornton does not allow horse grazing on its properties because this activity has led to erosion issues in the past. The pasture grass on the other farms that have been revegetated is 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 pasture grass. Lack of moisture in 2020 and the infestation of Army Worms in 2021 led to a severely depleted supply of pasture grass for cutting and baling. Thornton was still able to cut and bale some of our farms though. Approximately 2,500 acres were cut and baled for a total of 600 bales. 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. 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 production. Each farm is unique, and the revegetation process is highly dependent on 5 natural moisture. Thornton evaluates and adjusts its revegetation methods on a yearly and farm -by -farm basis. 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 of the remaining water is rented to other farmers throughout the WSSC system on a first come, first serve basis. In 2021, there was a small reduction in the number of shares rented out to non -Thornton farmers because the city retained a small number of shares for its own use of the transmountain water associated with the shares. 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 replicates 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 are a part of the Revegetation Program as well as a map of the revegetation program. 6 NY ••{' FTl A�.��ki..�. `A y —>-'-t-tim.yWa Y\ a•kM �vLtl a t m)���9g,1�A. �• a �"i-�Y}.. ^i..aia..a .. ..i..... •d %.. ..... Mar'Y^.�..A1SF.1N{.`NN..d".i Farm #109E —Located between CR 23 & CR 25, between CR 82 & CR 84 E'3 Farm #30 —Located between CR 15 & CR 17, between CR 78 & CR 80 9 2021 Thornton Agricultural Stewardship Office Active Revegetation Passive Revegetation Sold - Revegetation Map - Weld County NRCS Established Other Irrigated Acres NORTH Ni vny, 80-S uJ I l\, C — i J it w J —sI 0 I Lamer County Canal �� Sun of the Plerca Lateral Last updated 12/10/2021 81... "UI— tarlmer County I Canal lcont'dl VHanm%i W. \ N Stan or the N.M,•, Collins Lateral 7 01 Pie e 68 45 16 90 110 g vy96 E 25 6-2E -4 118- 60-1 93 23 40-5 6 2W 2933 80-2 0-140/53 53-6 73 0-2 E 118-11 W 67 22 5 61-8 98 1-9�1-10 76 111 115 6 16112 61-15 80 1 9 75 13 5858E 4 .... 49 N 1 80-22 95 35 85 2 47 L 49S 113 \ m 0 0.5 1 Miles 2 3 4 92-34 92-3 Acreage Status for Weld County Farms as of December 2021 Weld County NRCS Established Acreage: 6,033 Weld County Total Acreage in Revegetation Program: 6,941 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 2021: Crop Percent Shell Corn (used for dairy/cattle feed) 20% Silage Corn (used for dairy/cattle feed) 30% Wheat (used for flour) 5% Alfalfa (used for dairy/cattle feed) 35% Sugar Beets (used for sugar) 5% Onions (used for human consumption) 5% Thornton's Residential Houses In 2021, of the 56 farm 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 Weld County Thornton currently has two leases with DJ Resources, eight leases with Petroleum Development Corporation, fourteen leases with Bayswater Petroleum, seven Leases with Extraction Oil and Gas, one lease with Great Western Operating Company, one lease with Nickel Road Operating, and two leases with Enerplus Resources. Operators with active wells include Great Western Operating Company, Petroleum Development Corporation, Extraction Oil and Gas, and Bayswater Petroleum; with a total of 118 active producing wells. 11 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. 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 2021, the city continued working on developing the Thornton Northern Properties Stewardship Plan. 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. Much of the effort in 2021 was dedicated towards securing grant funding for the NPSP. Thornton was successful with obtaining grant funding for the full NPSP as currently envisioned. The grant funding was secured from the following: Colorado Water Conservation Board o South Platte Basin Roundtable - $25,000 o Metro Basin Roundtable - $25,000 o Statewide Roundtable - $50,000 o Water Planning Grant - $100,000 The Bureau of Reclamation - $275,000 Department of Local Affairs o Energy Impact Administrative Grant - $25,000 In addition, through the end of 2021, the city of Thornton has already spent and/or committed $275,000 towards the NPSP. Other efforts in 2021 included gathering data and information from existing comprehensive plans and land use plans for the affected areas in Larimer and Weld Counties along with the municipalities near Thornton's properties. An initial analysis of 12 the land use data was conducted to understand how each County and municipality are envisioning land use within the project study area. Both similar and differing land use patterns were identified. This land use data will be used with the Steering Committee in 2022 as a starting point to see if a regional land use vision can be developed that can help guide the potential future land use concepts for Thornton's properties. In October 2021, an economic analysis study was initiated to look at the highest and best uses of the properties owned by Thornton. The economic analysis study will be completed in early 2022 and will become a component of the overall Regional Land Use Assessment that will identify potential future land uses on Thornton properties. In December 2021, the Steering Committee held their first meeting. The final count on the number of Steering Committee participants is still being sorted out as of the time of writing this report. Thornton is expecting 15 to 21 Steering Committee participants made up of local Larimer and Weld County stakeholders who will help inform and guide the development of the NPSP. Efforts planned for 2022 include monthly Steering Committee meetings to focus on informing and guiding the development of the Regional Land Use Assessment. This assessment will identify potential land uses on Thornton properties by exploring local land use context. This entails reviewing local land use plans; engaging community members in discussions pertaining to the future needs of cities, towns, and residents; and determining prospective optimal land uses in areas where Thornton acquired its farms. Additionally, a Water Optimization Study will be 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 intent is to examine, at micro- and macro -scales, methods to retain a resilient base of prime irrigated lands, advance a more strategic approach to restoration and reclamation, and thoughtfully transition irrigated lands to non -irrigated agricultural or environmental purposes. Thornton looks forward to making progress on these efforts and reporting the results in next year's report to the County Commissioners. 13 Hello