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HomeMy WebLinkAbout20200274.tiffCity of Thornton Infrastructure Maintenance Center 12450 Washington Street Thornton, CO 80241-2405 December 31, 2019 Ms. Karla Ford, Office Manager Office of Board of County of Commissioners Weld County 1150 0 Street P.O. Box 758 Greeley, CO 80631 RE: City of Thornton Agricultural Stewardship Program Report Dear Karla: Infrastructure Department 720-977-6600 FAX 720-977-6202 www.cityofthornton.net Attached for the Weld County Board of County Commissioners' review is the city of Thornton's 2019 Annual Agricultural Stewardship Program Report, which summarizes certain land management activities on Thornton's Weld County properties during 2019. Thornton representatives will be available to meet with the Commissioners in 2020 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 720-977-6504. Emily Hunt Deputy Infrastructure Director EH/ cc: Brett Henry, Executive Director — Infrastructure Mark Koleber, Water Project Director Ed Lanyon, Senior Water Resources Administrator MLCR S:UD\WR1EmIlyWgdcultural Stewardship \Weld County Commisslone,s\2019\Wsld County Cover Letter-doc CotMun : co.1- o»5 ol/27/x.0 2020-0274 tc. City of Thornton 2019 Agricultural Stewardship Program Report Prepared for the Weld County Board of County Commissioners December 31, 2019 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. • Since 1986, Thornton has contributed over $15 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 2019, there were 6,941 acres included in Thornton's Revegetation Program in Weld County, the same as 2018. To date, 6,033 acres have been approved as established native grasslands by the Natural Resources Conservation Service. Thornton's 2019 Revegetation Program successfully maintained these native 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 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 2019. 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. Thornton uses local contractors and vendors for this program. • November 2019 marked the 1 -year anniversary of Thornton's Agricultural Stewardship staff operating out of the newly constructed office located in the Town of Ault. • Thornton and Colorado Parks and Wildlife developed a pilot program that will allow public hunting on a limited number of Thornton properties. A draft intergovernmental agreement to allow the pilot program to begin is currently being reviewed by both parties. • In 2019, Thornton utilized the transmountain water associated with a small number of Water Supply and Storage Company shares for its own use for the first time. 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 2019 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 1 -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 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 and tenants, and responds to issues and concerns when they arise. Since 1986, Thornton has spent over $15 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 2019 voluntary payment to Weld County taxing authorities was $298,853. Since 1987, approximately $5,715,322 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 3 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 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 72,152 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 have developed a pilot program that would allow CPW to lease hunting rights on six properties for 5 -years. During the course of the pilot program CPW and Thornton will 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. A draft intergovernmental agreement for the pilot program is currently being reviewed by CPW and Thornton. Thornton looks forward to its continued contribution to and cooperation with the Weld County community. Thornton's 2019 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 over $3 million 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. 4 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. Heavy rains at the end of spring time in 2019 led to a heavy weed population which required additional weed control resulting in reduced grass production on Thornton's properties. There were approximately 1,100 bales from Thornton's Weld County farms that were sold to local area cattle producers. Thornton's current plans are to complete revegetation and obtain NRCS approval on a total of 6,941 acres in Weld County by 2020. 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 2019, 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 #60-5 Located between C R 39 & CR 41, between C R 96 & C R 98 Farm #107-5 Located between CR 27 & CR 29. between CR 84 & CR 86 1 • w, a �. • �!-, .' t T , yam` 1`� `-• , Via tilaiNf Ir. A {7 .300 "'tint • ,;• 7 Located between CR 29 & CR 31, between CR 84 & CR 86 Located between CR 29 & CR 31, between Highway 14 & CR 84 • 4 1' • 1 a 1 T ••'1.1:� •• t1 .i.t . ' ; �� • ' 1. iR l , ,„ 1• •. • 1, ,• �r1 ,•...�.} ♦ •r. 1r • 4. 1l •• I s. ; ,a". • .. X 4 3 .:* 'w� .-- • .. • •%,„,fi . •.•`_ 1 •w .1 _ �- •••••• %• a. '�A,f•,c.;1• . ... /- , •f•. ,' 6 1 ••` �. teN%�yt .- _♦ - w-. 9 r.r- .. • V. is I,. •I 1 •_'` r' 1•!. '• •17j ' ` , • 01 • ?j 1 •✓ ` �' �`1 _ le":....et •. , -r • " "i• '• r �i lbw" 1 ` `. �� ifs • r 2019 Weld County Thornton Farm Management Revegetation Map Active Revegetatan dr NRCS Estabished rrril 4r1 Passe Revegetatron Other crj] Sold I rngated Acres NORTH Et W 2 J Start of the Pierce Lateral wit Lt Lanmer County Canal 7 '114 119W 55 119E lig Pi C 24 %a'- [Larimer county Canal lconEdl Severance 95 1.� Start of tht Collins Lateral 2 Mat W tip I4.�r•wit 2 r 6G-5 IP is. if ft 111 42 I92 -2a 16 90 ■ ■ 92-34 110 • ; ' •: E 25 -2 E 118- 60-1 93 23 r4Q_5 2W 0-140153 53-6 73 2E 118-11 W 67 22 5 98 1-9'51-10 76 / 111 115 2999 80-2 92-3 16112 61-15 35 .� t 49N 80-4 47 49 S 113 13 9 I. .4 4 .. 58 58E Acreage Status for Weld County Farms as of November 2019 Approximate Acreage of Weld County Thornton Farms: 17,161 Weld County NRCS Established Acreage: 6,033 Last updated 11/15/2019 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 2019: Crop Percent 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 17% 30% 12% 30% 6% 5% In 2019, 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 Thornton currently has two leases with DJ Resources, eight leases with Petroleum Development Corporation, thirteen leases with Bayswater Petroleum, eight Leases with Extraction Oil and Gas, and two leases with Enerplus. Active wells include Great Western Oil and Gas — 3, Petroleum Development Corporation —13, Extraction Oil and Gas —19, and Bayswater Petroleum — 20; for a total of 55 wells. Agricultural Stewardship Office The city of Thornton rented office space from the Highland School District from 2009 to 2014 for its local operations. Early in 2014, Thornton was notified by the district that the building that housed the office space Thornton was renting was part of a large construction project to improve and expand the district's facilities. As a result, Thornton's 11 lease would not be renewed. The city searched the Ault community for a suitable substitute and also investigated the possibility of converting one of its houses into office space. Neither of these options were viable, so the office relocated to rented office space in Eaton. Recently, Thornton annexed 313 acres of its land into Ault to use a portion of it for a permanent Agricultural Stewardship Office location. The annexation is just north of the town limits: 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 will repaired 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. Thornton Northern Properties Stewardship Plan In 2019, the city initiated 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. Thornton selected THK Associates to assist the city with the development of the plan. Thornton began working on the initial stages of the project which involve information sharing with the consultant, tours of the properties in Larimer and Weld Counties, and a project kick-off workshop. The project will involve outreach to the local communities to help achieve the desired outcomes. The project is anticipated to take approximately two years to complete. 12 Hello