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HomeMy WebLinkAbout20210051.tiff+City of Thornton Thornton Infrastructure Maintenance Center 12450 Washington Street Thornton, CO 80241 www.ThorntonCO.gov December 31, 2020 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 2020 Annual Agricultural Stewardship Program Report, which summarizes certain land management activities on Thornton's Weld County properties during 2020. Thornton representatives will be available to meet with the Commissioners in 2021 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.HuntCa thorntonco.gov. Sincerely, Emily Hunt Deputy Infrastructure Director EH/ cc: Brett Henry, Executive Director— Infrastructure Ed Lanyon, Senior Water Resources Administrator MLCR CO M M V n : Go.± ; 'IS CC :pcJ(ER/cH), PL(TP)� 1-ILCBr/b3), CAOL-1-1 FZ(D4So),ACT-03c40), 01/13 /21 O1 /O6/2. I 2021-0051 City of Thornton 2020 Agricultural Stewardship Program Report Prepared for the Weld County Board of County Commissioners December 31, 2020 Executive Summary • Thornton acquired farm land and water rights in Weld and Larimer Counties in 1985 and 1986 as part of a water supply project. Thornton owns 104 farms on approximately 17,161 acres in Weld County. • Since 1986, Thornton has contributed over $16 million to the local Weld and Larimer County economies through its Agricultural Stewardship operations, including Voluntary Payments in Lieu of Taxes to Larimer and Weld County agencies, and the use of local vendors on Thornton's projects and operations. • In 2020, Thornton continued to make progress on the development of the Northern Properties Stewardship Plan that will help inform and identify the long-term uses of the farm properties. • In 2020, Thornton entered into an IGA with the North Weld County Water District to provide the district with a back-up water supply from Thornton's transmountain water while maintenance was performed on the outlet works at Horsetooth Reservoir. • In 2020, for the second year, Thornton utilized the transmountain water associated with a small number of Water Supply and Storage Company shares for its own use. • In 2020, there were 6,941 acres included in Thornton's Revegetation Program in Weld County, the same as 2019. To date, 6,033 acres have been approved as established native grasslands by the Natural Resources Conservation Service. Thornton's 2020 Revegetation Program successfully maintained these native grasses with weed management, mechanical mowing, cutting, and baling. • In 2020, Thornton initiated a fencing project around Farm 60-5 in preparation of a pilot program for cattle grazing on the farm. • 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 native 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 2020. 2 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 and Larimer County communities. This annual report provides a summary of Thornton's 2020 operations and activities in Weld County. Since 1986, Thornton has operated a local Agricultural Stewardship Office (formerly known as the Farm Management Office). 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 native grass vegetation. 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, cooperates with its tenants 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 plumbing and electrical repairs, to 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 2020 voluntary payment to Weld County taxing authorities was $303,564. Since 1987, approximately $6,018,886 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. The city cooperated with the Colorado Department of Transportation for the widening and straightening of Highway 85, north of Ault, to improve traffic safety. Recently, the city has worked with Weld County in identifying access points, irrigation facilities, underground pipelines and other construction obstacles for the improvements of Weld County Road 29 from Hwy 14 north to Weld County Road 90. The city also met with Highland High 3 School's FFA and Agricultural Advisory board to discuss partnering through possible in - kind contributions, donations and/or potential partnerships. Since 2003, Thornton has leased approximately 75,521 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. Colorado Parks and Wildlife (CPW) has approached Thornton about the idea of allowing public hunting on some of Thornton's properties. CPW and Thornton continue to discuss the terms of a 5 -year hunting lease agreement for a pilot program on six Thornton properties. During the course of the pilot program CPW and Thornton would monitor the successes and challenges for allowing public hunting on the properties. At the end of the 5 -year pilot program the parties will determine whether to move forward with the public hunting program and include additional properties in the program. The North Weld County Water District (North Weld) approached Thornton in early 2020 about the need to secure 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 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 2020 Agricultural Stewardship Operations Revegetation Project 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 native 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. 4 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 soil erosion issues in the past. This year 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. Thornton intends to initiate a cattle grazing pilot project on the farm. Additionally, in preparation for the pilot project Thornton is underway with the installation of a fence around the perimeter of the farm, installation of a corral, development of a water supply system for the cattle, and the development of a cattle grazing lease agreement template. The pasture grass on the other farms that have been revegetated is cut and baled by local vendors when natural moisture has been sufficient to produce a harvestable stand of grass. This procedure maintains the health of the pasture grass. Lack of moisture in 2020 affected the growth of the pasture grass, so grass was not cut and baled. Thornton's current plans are to complete revegetation and obtain NRCS approval on a total of 6,941 acres in Weld County by 2025 (6,033 acres are currently approved). 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 native 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 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 2020, 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. 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. 5 Farm #8E Located between CR 43 & CR 45, between CR 90 & CR 92 Farm #60-4 Located between CR 41 & CR 43, between CR 96 & CR 98 6 Farm #60-8 Located between CR 39 & CR 41, between CR 94 & CR 96 Farm #78-8 Located between CR 39 & CR 41, between CR 94 & CR 96 7 Farm #78-15 Located between CR 43 & CR 45, between CR 92 & CR 94 8 2020 Thornton Agricultural Stewardship Office Revegetation Map - Weld County Active Revegetation dr NRCS Established Passive Revegetation Other Sold CIrrigated Acres • NORTH .Atli Lass n Lanmer County Canal Start of the Pierce Lateral 64 09 i �7 114 55, zl.xatl. It<,.r•,tiff 24 p9E 1111 11 Magner Rare Lanmer County Canal (conYd) Severance Start of the Cams Lateral 61-8 7 91 Pie e 68 45 s knifing's lie rx n tett 110 -2 E 118- 60-1 93 2W R99s 80-2114 -140/53 53-6 73 :0-2 E 118-11 W\ 67 22 5 1-9IMIK1-10 1 6 W1 95 4 2 Vast, Wa 75 35 6112 61-15 49 N 80-22 49 S: la r _ 1 13 76 '\ 111 Aet 50 58 r 58 E 90 115 9 4 1 96 E 23 1.11 t.•. t AI. 25 40-5 90 ti.... nubs Ls� 1 42 192-2{Nie S� 92-3a 92-3 Oat , new is R.aarr♦ r., Acreage Status for Weld County Farms as of November 2020 Weld County NRCS Established Acreage: 6,033 Weld County Total Acreage in Revegetation Program: 6,941 Last updated 11/16/2020 0 0.5 1 2 3 4 Miles 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 2020: Crop Shell Corn (used for dairy/cattle feed) Silage Corn (used for dairy/cattle feed) Wheat (used for flour) Alfalfa (used for dairy/cattle feed) Sugar Beets (used for sugar) Onions (used for human consumption) Thornton's Residential Houses Percent 17% 30% 12% 30% 6% 5% In 2020, of the 56 farm houses owned by Thornton, in Weld County, most 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, eight Leases with Extraction Oil and Gas, one lease with Great Western Operating Company, 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 42 active producing wells. In addition, Thornton routinely works with energy companies to grant easements on Thornton's properties for transmission and operations. Agricultural Stewardship Office Thornton's three permanent, full-time Agricultural Stewardship Office employees moved into its newly constructed facility in late November of 2018. There are three other 10 buildings on the property that are currently being restored 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 & garage doors. The garage received structural repairs to the roof and CMU (Concrete Masonry Unit) walls, new windows/doors, and was painted. The barn received windows, door and siding repair. Thornton Northern Properties Stewardship Plan In 2020, the city continued work on its 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. This past year Thornton's foundational work for the effort on the plan included: • Internal planning between Thornton staff and the consultants • Interviews with Larimer and Weld County subject matter experts, meetings with community representatives • Development of preliminary landscape analyses • Internal planning at the city to establish project parameters Next steps for the plan include development of a Regional Land Use Assessment and development of a Water Optimization Study. The Regional Land Use 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. The Water Optimization Study will explore how a "continued irrigation" provision in Thornton's decree could be used to help farmers, conservation groups, and other interested parties restore (with non - Thornton water) irrigation on prime farmlands. In December 2020, Thornton submitted four applications for grants from ,the Colorado Water Conservation Board to help with development of these studies. Thornton also met with area stakeholders to discuss the project and grant efforts, and several provided letters of support for the grant applications. Thornton looks forward to making progress on these efforts and reporting the results in next year's report to the County Commissioners. 11 Hello