Explanation
The purpose of this legislation is to authorize the Director of Public Utilities to enter into a lease agreement of land owned by the Division of Sewerage and Drainage to be used for agricultural purposes with Jeff Writsel.
The Division of Sewerage and Drainage owns approximately three hundred and thirty-five (335) acres, more or less, of City-owned tillable cropland located approximately 1/2 mile south of State Route 665, between State Route 104 and US Route 23. The 335 acres, more or less consist of 15 fields.
The lease agreement covers the period starting January 1, 2009 to and including December 31, 2013 on a year to year basis. The land will be used for agricultural purposes and the proceeds will be deposited into the Sewerage System Operating Fund. The first year lease agreement is for 11 fields. Commencing in 2010 and continuing until December 31, 2013 all 15 fields will be tillable.
This ordinance authorizes the 2nd year of the lease beginning January 1, 2010 to and including December 31, 2010. The Division of Sewerage and Drainage will process legislation on a year to year basis for the remaining 3 years.
The Division of Sewerage and Drainage, Compost Facility received bids on October 9, 2008 for a per acre cost for each of the 15 fields. Five (5) bids were received and the tabulation of those bids is attached. The highest bidder was JRS Farms, however the company has declined the award of the contract, see letter attached. The next highest bidder was Jeff Writsel, 9220 Scioto Darby Road, Orient OH 43146.
FISCAL IMPACT: No funds are needed for this agreement. Lease payments will be made on semi-annual basis on or before March 15 and October 15 and will be deposited into the Sewerage and Drainage Operating Fund 650. Proceeds for the 2nd year are $55,643.50. The total five (5) year proceeds is $270,410.80
Title
To authorize the Director of Public Utilities to enter into a one year lease agreement for the Division...
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