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  8.C.       
Meeting Date: 12/01/2020  
From: Mark Richardson, Operations Manager

TITLE:
Consideration and Approval: Red Gap Ranch Grazing Lease with Bar T Bar Ranch
STAFF RECOMMENDED ACTION:
Approve the Grazing Lease with Bar T Bar (-T-) Ranch and authorize the City Manager to execute the contract.
Executive Summary:
The City of Flagstaff advertised the grazing opportunity at Red Gap Ranch. Four initial bidders were interested one being the prior leaseholder. Final bid submissions were by three bidders with Bar T Bar Ranch being the highest responsible bidder. Bar T Bar Ranch included an acceptable grazing management plan that better utilizes the ranch than prior grazing and provides for rangeland stewardship, environmental stewardship, and sustainability. Bar T Bar Ranch is also one of the founding members of the Diablo Trust.

The proposed lease agreement is proactive in ensuring that the City can pursue alternate uses on the property under the agreement, and the recommended Lessee understands and has confirmed its commitment to support the City in those endeavors.
Financial Impact:
The grazing lease provides an annual fee/revenue to Water Services to offset any maintenance costs associated with the Red Gap Ranch. There are no negative financial impacts with the grazing lease.
Policy Impact:
Red Gap Ranch Grazing Lease with Bar T Bar Ranch furthers the city's commitment to environmental stewardship and sustainability.
Connection to PBB Key Community Priorities/Objectives & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Sustainable, Innovative Infrastructure: Utilize existing long range plans that identify the community's future infrastructure needs and all cost associated - Red Gap Ranch is part of the 100-year water supply for the City of Flagstaff.
Environmental Stewardship: Actively manage and protect all environmental and natural resources; Increase the private sector's participation in environmental stewardship efforts - Bar T Bar ranch is a part of the Diablo Trust which supports environmental stewardship rangeland stewardship and sustainability.

Regional Plan
Red Gap Ranch grazing is an Integral part of protecting and maintaining the watershed at Red Gap Ranch.
Has There Been Previous Council Decision on This:
October 13, 2020, Staff presented the scope of work for the IFB and received direction from Council on Red Gap Ranch Grazing lease.
Options and Alternatives:
Reject all bids and re-advertise for a grazing operator.
Background/History:

The City's Purchasing Section conducted an Invitation for Bids (IFB) solicitation for a Red Gap Ranch Grazing Lease. Purchasing posted the solicitation on the City's PlanetBids website on October 19, 2020, and it was advertised in the Arizona Daily Sun on October 23, 2020, and October 30, 2020. On November 10, 2020, Purchasing received a total of three (3) responses. Purchasing and staff reviewed all bids received and found Bar T Bar Ranch, Inc. the highest responsive responsible bidder. 

Expanded Financial Considerations:
The annual grazing lease will cover the costs associated with the annual maintenance of Red Gap Ranch and all associated costs of holding the grazing lease for Arizona State Lands within the ranch boundary.
Attachments
Red Gap Ranch Location
RGR Roads, fence and tanks
Grazing Lease Agreement
Agreement Attachment A - IFB
Agreement Attachment B - Submitted Bid
Agreement Exhibit A - Legal Description
Agreement Exhibit B - ASLD Lease


    

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