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HomeMy WebLinkAbout20171056.tiffRESOLUTION RE: APPROVE LEASE AGREEMENT FOR LUPTON BOTTOM DITCH SHARES AND AUTHORIZE CHAIR TO SIGN - RAY DOMENICO FARMS, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with a Lease Agreement for Lupton Bottom Ditch Shares between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and Ray Domenico Farms, Inc., commencing April 17, 2017, with terms and conditions being as stated in said lease agreement, and WHEREAS, after review, the Board deems it advisable to approve said lease agreement, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Lease Agreement for Lupton Bottom Ditch Shares between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Public Works, and Ray Domenico Farms, Inc., be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said lease agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 17th day of April, A.D., 2017. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST:{, $ .x/14; k Weld County Clerk to the Board BY APP ttorney Date of signature: n/ t t ( l d",a Julie Cozad, Chair /''e' e--rt' Steve Moreno, Pro -T Sean P. Conway C) ike Freeman Cc, Poo CPC/ OT) 6-16,-11 rbara Kirkmeyer 2017-1056 BC0050 abfficac+ _O4V 1 1 ro^7 MEMORANDUM TO: Esther Gesick, Clerk to the Board DATE: April 12, 2017 FROM: Devin Traff, Engineer I, Public Works SUBJECT: Lease Agreement for Lupton Bottom Ditch Shares ' / 1 -7 Weld County owns two (2) shares of Lupton Bottom West Lateral water which is leased each year to show continued beneficial use of the water. An advertisement was sent to Lupton Bottom shareholders announcing the acceptance of bids for the lease of the ditch shares. The minimum bid was set at the amount needed to cover the assessments charged by the ditch company. The following bid was received for the 2017 irrigation season: • Ray Domenico Farms, Inc. desires to lease the Lupton Bottom West Lateral water at the rate of $1,500.00 per share for a total of $3,000.00. At the bidder's request, the lease agreement was structured to require payment in two (2) separate installments. The first payment of $1,500.00 was due on April 10th and the second payment of $1,500.00 is due July 25th of this year. Enclosed is the approved pass -around review, a check for $1500.00 from Ray Domenico Farms, and two (2) originals of the signed lease agreement which require the signature of the Board Chair and Deputy Clerk to the Board. Public Works recommends approval of this bid. Once the agreement has been approved and signed, please return a signed original to me so I can send it to Mr. Domenico. Contact me with any questions regarding this agreement. 2017-1056 Page I of I SCoo so BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW/ WORK SESSION REQUEST RE: Lease of Lupton Bottom Ditch shares for 2017 DEPARTMENT: Public Works DATE: April 4, 2017 PERSON REQUESTING: Devin Traff Brief description of the problem/issue: Weld County currently owns two (2) shares of Lupton Bottom West Lateral water for use in future water court cases. Since the ditch shares are not currently allocated to any substitute water supply plan, the water is leased each year to show continued use of the water. Failure to show continued use of the water may injure the County's ability to use the water for future augmentation uses. The use of the ditch shares is limited to agricultural use only. An advertisement was sent to Lupton Bottom West Lateral shareholders announcing the acceptance of bids for the lease of the ditch shares, including the previous bidders. The minimum bid was set at the amount needed to cover the assessments charged by the ditch company ($3,000.00). Historically, we receive one or two bids when we contact the ditch company shareholders. The following bid was received for the 2017 irrigation season: • Ray Domenico Farms, Inc. desires to lease the Lupton Bottom West Lateral water at the rate of $1,500.00 per share for a total of $3,000.00. Ray Domenico Farms, Inc. has agreed to provide us with the type of crops grown, location of the crops grown, and the amount of water used prior to November 30, 2017. Ray Domenico Farms has leased these shares from us for several years and they have provided the required information for each year that they have leased the water. What options exist for the Board? (Include consequences, impacts, costs, etc. of options) 1. Agree to lease the Lupton Bottom Ditch shares to Ray Domenico Farms. 2. Do not lease the Lupton Bottom Ditch shares to Ray Domenico Farms. Recommendation: Public Works recommends approval of this bid. Approve Recommendation Julie A. Cozad, Chair Steve Moreno, Pro-Tem Mike Freeman Sean P. Conway Barbara Kirkmeyer Schedule Work Session Other/Comments: PUBLIC WORKS DEPARTMENT 1111 H STREET, P.O. BOX 758 GREELEY, COLORADO 80632 WEBSITE: WWW.CO.WELD.CO.US PHONE: (970) 356-4000, EXT. 3750 FAX: (970) 304-6497 March 29, 2017 Ray Domenico Farms, Inc. Mr. Gregory Domenico P.O. Box 424 Platteville, CO 80651 RE: Lease of Two Shares of Lupton Bottom West Lateral for the 2017 Irrigation Season Dear Mr. Domenico, It is my understanding that you wish to lease two (2) shares of Lupton Bottom West Lateral from Weld County for the 2017 irrigation season at a rate of $1,500 per share. This lease is for a single year and the lease for this year in no way guarantees you the right to lease those shares in any subsequent year. Based on your bid amount of $1,500 per share, the total cost for the 2 shares is $3,000.00. The lease payment may be paid in two (2) separate installments. The first payment of $1,500.00 is due April 10th and the second payment of $1,500.00 is due July 25th of this year. Ditch shares must be used for irrigation purposes only. Depending on the location of the point of diversion, the ditch company may reduce the amount of water delivered to account for ditch seepage and evaporation. You are responsible for notifying the ditch company that you will be utilizing Weld County Shares. Weld County also requires that you provide records at the conclusion of the irrigation season regarding the amount of water diverted, a legal description of the irrigated acreage, and the crops irrigated with the shares leased from Weld County. You agree to provide that information via letter to Weld County prior to November 30, 2017. Please send irrigation records to: Weld County Public Works Attention: Devin Traff P.O. Box 758 Greeley, CO 80632 If you are agreeable, please sign two copies of this letter and return the originals along with the first payment of $1,500.00 made payable to Weld County at the address above by April 10th of this year. This agreement will become final once it is ratified by the Board of County Commissioners in a regular business meeting. One of the fully executed originals will then be returned to you for your records. If you have any questions, please feel free to contact me at 970-304-6496 x 3773. Sincerely, Devin Traff Water Resources Engineer Weld County Public Works Ray D'orrienico Farms, Inc. ATTEST: die:dm) W. Xo,eik, Weld lerkthe BY: Deputy Cler4 to t e :oard V /A 20/ Date BOARD OF COUNTY COMMISSIONER WELD COUNTY, COLORADO f Julie Cozad, Chair Page 1 of 1 APR 1 7 2017 020/7-/0,ole 6) 1 RAY DOMENICO FARMS, INC. P.O. BOX 424 PLATTEVILLE, CO 80651-0424 (970) 785-6331 TO THE PAY B LCJ.���(. ORDER OF a /� ►�T�j+ r TON HA BRANCH 4 I E 13838 TH AVE.. UNIT 200 <. ()Lug{ Ui? THORNTON. CO 80602 lREDp6RESP E 6800-232.89+8 (24.HOUR ACCOUNT INFORMATION) roR 2 3 tttl 11 67 •8, ) p'.s- Y•2 palyule-A 7- twx.eitte, O D L O O L CO U (2 (0 O o > m CO c a) c O o N- O U o - Q) -OYm a) a" 11-5 O 22 > U M 0 - 1 3,' I OKUXE 51150fl C. . � 'wmen. DATE 1852920 23315/10 $ Male -de DOLLARS RECEIPT DATE '-i/ t3/ t -7 NO. 89241 RECEIVED FROM EQ4 fl0rfl9nco Fcxrnng Tnc ADDRESS P.O. PD n x (-13 1 1 P t a+iev; , ie , CO OCo5 t - OBI D9 Ong. *'ouso•.rd Five -hundred ♦'"/too $ 1 500.00 FOR c' ¢,okg e, (cre nne.n + For Lop -ton (2 o +-lo to Q ; -te.h Shares HOW PAID CASH CHECK 1i SOO 00 MONEY ORDER (e 5Q9 oa Shot rQ S - '(b�Pakdantnl r _ BY CD I WELD COUNTY PURCHASING 1150 O Street Room #107, Greeley CO 80631 E-mail: mwalters(a�co.weld.co.us E-mail: reverettAco.weld.co.us Phone: (970) 400-4222 or 4223 Fax: (970) 336-7226 DATE OF BID: MARCH 21, 2017 REQUEST FOR: WATER IRRIGATION RIGHTS FOR LEASE DEPARTMENT: PUBLIC WORKS DEPT - BID NO: #B1700070 PRESENT DATE: APPROVAL DATE: (DUE TO COST DOES NOT NEED TO BE PRESENTED TO BOCC) VENDORS PETROCCO FARMS INC 14110 Brighton Rd Brighton CO 80601 DOMENICO FARMS 9320 Hwy 66 PO Box 424 Platteville CO 80651 FULTON DITCH (28 SHARES) (Min. bid = $56/share) $56.00/SHARE ($1568.00) LUPTON BOTTOM WEST (2 SHARES) (Min. bid= $1500/share) $1500/SHARE ($3,000) Hello