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HomeMy WebLinkAboutContract 25905 CITY SECRETARY CONTRACT NO. First Amendment to City Secretary Contract No. 21758 Lease Agreement between the City of Fort Worth and Agronomic Management Group, Inc. Earth Plus Products THIS AGREEMENT is entered into by and between the City of Fort Worth, a home rule municipality located in Tarrant and Denton Counties, Texas, hereinafter referred to as "City", acting by and through Mike Groomer, its duly authorized Assistant City Manager, and Agronomic Management Group, Inc., Earth Plus Products, acting herein by and through Steve Bowman, its duly authorized Vice-President, hereinafter referred to as "AMG". WITNESSETH WHEREAS, City and AMG have previously entered into a Lease Agreement, known as City of Fort Worth City Secretary Contract No. 21758, hereinafter referred to as "Agreement", wherein the City leased AMG ninety (90) acres within Block 2 of the Village Creek Plant Addition, an addition in the City of Fort Worth, Tarrant County, Texas; and WHEREAS, AMG desires to lease an additional forty (40) acres within Block 2 of the Village Creek addition; NOW THEREFORE, it is agreed as follows: Section 1 Paragraph 1 is hereby amended by adding an additional 40 acres to the 90 acres that AMG leased under the Agreement so that the total acreage to be leased by AMG will be 130 acres, so that hereafter said paragraph shall read as follows: "City agrees to lease to AMG, and AMG agrees to lease from City approximately one hundred and thirty (130) acres within Block 2, Village Creek Plant Addition, an addition to the City of Fort Worth, as recorded at Vol. 388-213, pp. 49-50, Plat records, Tarrant County, Texas, as generally shown on Exhibit "A" attached hereto, hereinafter referred to as the "Premises". Section 2. Paragraph 2. is hereby amended by adding a provision that states that in the shall event that the agreement between Oscar Renda Contracting, Inc. and the City of Fort Worth for Long-Term Solids Dewatering, Processing and Disposal terminates, this lease agreement shall automatically terminate, so that hereafter said paragraph shall read as follows: "The initial term of this Lease Agreement shall begin on the day of its execution, and end on September 30, 1996. In addition to the ''KOM initial term, AMG shall have the right to renew this Lease for additional one (1) year periods, the total of the Lease Agreement not to exceed ten (10) years, inclusive of the initial term. This Lease Agreement shall automatically renew on the first day of October each year, unless AMG shall give City at least thirty (30) days prior written notice not to renew. However, in the event that the agreement between Oscar Renda Contracting, Inc. and the City of Fort Worth for Long-Term Solids Dewatering, Processing and Disposal terminates, this lease agreement shall automatically terminate." Section 3. Paragraph 3 is hereby amended by increasing the rent for the use and occupancy of the Premises by four hundred dollars ($400.00) so that the total rent due annually for the one hundred and thirty (130) acres is two thousand and two hundred dollars ($2,200.00) and by providing that AMG shall pay City four hundred dollars ($400.00) at the signing of this amendment, so that hereafter said paragraph shall read as follows: "AMG agrees to pay to City as rent for the use and occupancy of the additional forty acres the sum of $400.00, such sum being due and payable upon execution of this amendment to the Agreement. If this Agreement is renewed on October 1,2000, AMG agrees to pay City as rent for the use and occupancy of the Premises the sum of $2,200.00 per annum, such sum shall be due on the first day of the option year and a like sum due for each year the Agreement is renewed. As additional consideration for this Agreement, AMG shall pay to the City ten percent (10%) of the annual gross sales of crops or hay grasses grown on the Premises, which shall be due and payable forty-five (45) calendar days after the end of each term. Further and as additional consideration for this Agreement, AMG agrees to: (a) maintain the entire area contained in the Sludge Only Landfill at no cost to City excluding the levees, fences, wells and pump stations; and (b) maintain at no cost to City the entire 40-acre area from the river to Greenbelt Road including, but not limited to: (1) mowing the acreage for hay when conditions warrant; and (2) mowing the Pipeline strip and the easement along Greenbelt Road once during the months of June, July, August and September. 2 Section 4. The first sentence of paragraph 4 is hereby amended by adding that the Premises can only be used for agricultural purposes and that the City does not guarantee the quality or quantity of any agricultural crops grown, so that hereafter said first sentence of paragraph 4 shall read as follows. "The Premises are to be only used for agricultural purposes, including but not limited to the growing of alfalfa and or a grass turf farm and the City does not guarantee the quality or quantity of any agricultural crops grown." Section 5. Paragraph 9 is amended to be and read as follows: "AMG covenants and agrees to, and hereby indemnify, hold harmless and defend City, its officers, agents, servants and employees from and against any and all claims or suits for property damage or loss and/or personal injury, including death, to any and all persons, of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, this Lease Agreement and the activities conducted thereon by AMG, its officers, agents, employees, contractors or subcontractors, whether or not caused in whole or in part by alleged negligence on the part of the officers, servants, or employees City. AMG does hereby covenant and agree to assume all liability and responsibility of City, its officers, agents, servants and employees for property damage or loss, and/or personal injuries, including death, to any and all persons of whatsoever kind or character, whether real or asserted, arising out of or in connection with, directly or indirectly, this Lease Agreement, whether or not caused, in whole or in part, by alleged negligence of City, its officers, servants, or emplovees. AMG likewise covenants and agrees to, and does hereby, indemnify and hold the City harmless from and against any and all injuries, loss, or damages to property of City during the term of this Lease Agreement and for two (2) years thereafter, whether arising out of or in connection with or resulting from, in whole or in part, any and all alleged acts or omissions of City's officers, servants, or employees." Gz'E«0G?DD 3 F1 'J'ui .'r 6. All other provisions, terms and conditions of City of Fort Worth City Secretary Contract No. 21758 not amended hereby continue in full force and affect. IN WITNESS THEREOF, the parties have executed this agreement in triplicate in Tarrant County, Texas on the day of , 2000. LV City of Fort Worth Agronomic Management roup, Inc., Earth s Produc By: By: Mike Gr omer to Bowman Assistant City Manager ice President Approved as to Form Attest: Assistant Attorney Corporate Secretary Attest: ity Secre ry - l- Old 0 — / �mq Contract Authorization Date 6000 4 c�(ti � � G� RarGMr N Mti o 3AI80 SIAVO o w S m 0 _� a0 z o } Zv> w o �(� LO o _z to o zC7 0 H O z w t~ 9St0a �— w X Li M OVUd 31Vn18d ~ c� z oz W l \•` ~ a ww �W zZ z F— � Ua .�� W ~ JQ� �- Z to > 3 f- ,, z X O + u+.I+u+.ul.0�u,lnn,mur,+uuiu, U W OV08 NO10N1-18V-0803038 a U 00 W O O O o& Q a m 0 Z J � � 00 O 00 a — = OOO 00 O w o W =vnuu,,� 0 0000 V �- O N <O HEl o C _ Q J = \ o N 0 W + rZi gQ Li Q _ W W s\ EXHIBIT A ;', City of Fort Worth, Texas "011jor And Council communicalflon DATE REFERENCE NUMBER LOG NAME PAGE 5/16/00 **C-18007 60GARY 1 of 2 SUBJECT AMENDMENT TO LEASE AGREEMENT WITH OSCAR RENDA CONTRACTING INC./AGRONOMIC MANAGEMENT GROUP, INC., FOR DEVELOPMENT OF SOILS, ESTABLISHMENT OF A GRASS AND HAY FARM AND GENERAL MAINTENANCE ON , 40 ACRES RECOMMENDATION: It is recommended that the City Council authorize the City Manager to amend the current lease agreement (City Secretary Contract No. 21758) and award an initial six month lease agreement with an option to renew subsequent leases each fiscal year, concurrent with the Long-Term Solids Project (City Secretary No. 20283) with Oscar Renda Contracting Inc./Agronomic Management Group, Inc., for the use and maintenance of 40 acres of City property adjacent to the Village Creek Wastewater Treatment Plant. DISCUSSION: The Water Department has a need to maintain 40 acres of City property adjacent to the Village Creek Wastewater Treatment Plant. At no cost to the City and for the term of the lease, the Contractor will establish a grass and hay farming operation and will be responsible for maintaining and mowing the 40-acre property from the river to Green Belt Road. Revenue will be produced from what was formally a non-income producing property. The City will receive revenue generated (10% of gross sales) from the grass and hay farm and the City will receive an additional $400 per year ($2,200 per year, total) for leasing the property. This measure will allow for the beneficial reuse of a portion of the daily Class "A" belt-press biosolids on the property. The biosolids will be applied and monitored according to federal and state rules for beneficial recycling.