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HomeMy WebLinkAboutbocc.con.089.2017-BOCCtXWTRACT N M-jeI % l,467T) IIO 11111 IN1111111111511 RECEPTION*: 636190, R: $0.00, D: $0.00 DOC CODE: ORDINANCE P9 1 of 13,0211612017 at 09:34:40 AM Janice K. Vas Caudill, Pitkin County, CO AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PFTKIN COUNTY, COLORADO, AUTHORIZING AN AGRICULTURAL LEASE OF THE THOMPSON CREEK OPEN SPACE ORDINANCE NO. DGy—Apiq RECITALS: I. Pursuant to 30-35-301 C.R.S., the Board of County Commissioners ("SOCC") of Home Rule Counties is authorized to make and publish ordinances for carving into effect or discharging the powers and duties conferred upon such counties by law and as seems necessary. 2. Pursuant to Section 2.8.1 of the Home Rule Charter ("HRC"), the BOCC is authorized to take official action by Ordinance forcertain matters where action is prescribed pursuant to the Colorado Revised Statues as amended. 3. The Voters of Pitkin County and the Board Of County Commissioners of Pitkin County (BOCC) established an Open Space and Trails Fund for the purposes of acquiring, preserving, managing, and maintaining open space and trails assets and resources, and established an Open Space and Trails Board of Trustees (OSTB) to guide the expenditure of those funds. 4. The Open Space and Tails Program (OST) is charged with protecting agriculture, open space, habitat, scenic view planes, water rights and river access. 5. An Agricultural Lease Bid Process was adopted by the OSTB on October 7, 2014 to implement the County's Procurement Code and guide OST staff in selecting appropriate tenants to manage and lease OST agricultural properties. 6. The Thompson Creek Open Space is comprised of 87 acres located four miles south of Carbondale, CO, in the Crystal River Valley and was acquired by Pitkin County July 12. 2005, and recorded at reception number 512283. 7. The Procurement Code requires BOCC approval pursuant to an Ordinance for the leasing of any Firkin County property for more than one year. 8. The Thompson Creek Open Space Interim Management Plan was created in 2008 and identifies approximately 50 irrigated acres to be made available for leasing by an agricultural producer. 9. A procurement selection team comprised of Open Space Department staff have determined that a multi-year lease will best encourage wise stewardship of these agricultural lands. RECEPTION# 636190, 0 211 612 01 7 at 09:34:40 AM, PgS 2 of 13, Janice K. Vos Caudill, Pitkin County, CO 10. On December 6, 2016, the OSTB recommmded that the BOCC approve the proposed lessee for the Thompson Crcek Open Space agricultural Iease area. 11. The BOCC finds that adoption of this ordinance is in the best interest of the citizens of Pitkin County. NOW, THEREFORE, BE IT ORDAINED by the Hoard Of County Cant of Pitkin County, Colorado that it hereby Adopts no ordinance of the Board of County Commissioners of Pitkin County, Colorado, authorising an Agricultural {easy oflhe Thompson Creek Open Space In William E.L. Pales And Mmjodc Perry and authorizes the Chair to sign the Ordinance and upon the satisfaction of the Counly Attorney as to form, execute Any other associated d(waa is ncocsmry to complete Ihi$ matter. IN I RODUCED AND FIRSf READ ON 'I HE 21' DAY OF DECLMBER, 2016 AND SET FOR SFCOND READING AND PUBLIC HEARING ON'fHE 2017, I IT It DAY OP JANUARY, NOTICE. OF PUBLIC HEARING AND TITLE AND SHORT SUMMARY OF THF ORDNANCE PUBLISHED IN THE ASPEN TIMES WEEKLY ON THF. 29TH DAY OF DECEMBER 2016, NOTICE OF PUBLIC HEARING AND DIF. FULI, TEXT OF THE ORDINANCE. POSTED ON 11112 OFFICIAL PITKIN COUNTY WFHSITF.(rsu-wn'tk t I DAY OF DFCEMBER, 2016. coin) ON THE 29TH ADOPTED AFTER FINAL READING ANDPUBLIC HEARING ONTHE I I I HDAYOF JANUARY,2017. PUBLISHED BY TITLE AND SHORT SUMMARY, AI'1 FR AIN)PTION. N THF ASPEN TIMES W FFKLY ON THF. 19TH DAY OF JANUARY. 2017. POSTED BY TITLE AND SHORT SUMMARY ON THE OFFICIAL PITKIN COUNTY WFHSITF L&A&oir� ON THF. 13TH DAY OF JANUARY. 2017. RECEPTIONY. 636190, 02/16/2017 at 09:34:40 AM, Pgs 3 of 13, Janice K. Vos Caudill, Pitkin County, CO ATTEST: By� 41cl-tmt—yelerk , APPROVED AS TO FORM - To •ly, Coun omey L Gary Temcn6aum, Director OPc¢ Space and Trails BOARD OF COUNTY COMMISSIONERS By:/ V pv�, George Nem an, C 'r Date:1 1) I MANAGER APPROVAL `70¢ Peacock, ty Ma¢[-YtQ¢ ager RECEPTION#: 636190, 02116/2017 at 09:34:40 AM, P994 of 13, Janice K. Vos Cauoil1, Pitkin County, CO APPROVED AS TO FORM: Jo gCo mey —_ Cery Temwbeum, Director OPm SPS end Trails BOARRDD OF COUNTY COMM6SNJNP.RS ey:/V George Detc IJ MANAGER APPROVAL RECEPTION# 636190, 02 1 61201 7 at 09:34:40 AM, P9s 5 of 13, Janice K. Vos Caudill, Pitkin County, CO GONTRA,Ci e �9- � m AGRICULTURAL D LEASE This lease is entered into thiog�day of U(t P Board of County Commissioners of Pitltur Coun2017 by and between the "County, and Bill Falcs and Ma ' P ty'. Colo o, hereimRer 'Landlord" or "Tenanl". 0 erry; 4239 Highay 133, Carbondale CO, S 1623, hereinafter Now therefore, in consideration of the mutual covenants and pmmisa the parties agree as follows: contained herein, 1. Pumose and I rent. Landlord and Tenant intend that the property, all appurtenances, water rights, easements and improvements be used for active agricultural production Agricultural production shall continue during the entire term of the lease without interruption, consistent with accepted agricultural practices and the agriculture production plan Iforthe properly Proposed by Tenant and accepted by Landlord, in writing, and made part of this 2. Leased Procerty. Landlord in consideration of the terms contained herein lease, to the Tenant, Pormem to the attached Annual O property: Thompson Creek Space, pasting Plan, the following described real t water rights, Consisting of the following: 2.64 cubic feN per secondtogether (cgf s) of water he Low Line Muth, easements and improvements ("Property"), 3.LeaseTerm . Unless earlier terminated by operation of this lease, the lease term shall be in effect as of the dale the lease is entered above , to December 31, 2027. This lease shall not be renewed or extended except through express written amendment to this lease. Tenant is expressly prohibited from holding over beyond the expiralion of the lease term without "Pre,s written permission of Landlord. 4. Rent. Truant agrees m pay Landlord rent at the rate of 5250.00 for each calendar year or any portion ora calendar year that this lease is in effect This amount shall be the amusl rent for the Property. The annul rent shall be due in Hill to the Landlord on April 1 each year or porton of a year that the Lease is in effect this ]case. Failure to Pay rent by this date Constitutes a breach of AGRICULTURAL PROVISIONS 1 Soil Tcsuna. It shall be the responsibility of the Tempt to conduct soil testing of the Property once a Yea if changes to the operation are lane fertilizer aPPliation, cover Cropping,gsignificant changes to the stocking rate ebut tchm�If soil sampling is deemed appropriate the Annual n OPcmting Plan will include details including data, sample size, and ara lys,s (pH, nutrient levels, microbial communities, organic Compounds, etc...). The County may conduct additional soil testing periodically. All results will be shared between the County and Tenant. 2. Weed Control. Tenant is responsible for the removal of all noxious weeds as defined in the Colorado Noxious Weed Act Removal of noxious weeds shall be before individual plants go to seed. The use of any herbicide shall be particularly approved by the RECEPTION# 636190, 02116/4017 at 09:34:40 AM, Pgs 6 of 13, Janice K. Vos Caudill, Pitkin County, CO AGaI[m.'mpAr.I.nb I.FASE PAGES nig County as Pan of the Annual Operating Plan for the Property. Existing areas of infestation, concern, or vectors will be identified in the Annual Operating Plan. 3. Peal Control- Tenant may engage in comm", removal, to a ratification of any Peals or predators only with the express approval of the County. Methods be contained in the Annual Operating plan. for pest control shall 4. Fertilizers. The application of any and all fertilizer agents shall be based upon the tmulta of the soil rests and with the mconsrnendarion of Colorado Slate Universi intent of the application of any fertiliser will be to restore or improve soil wndions. The type contained within tity. The Of fertilizer to be used as well as its aAnpplication schedule and application method shall be cothe Annual Operating Plan for the property- 5. roperty.s Livestock. Livestock may be maintained on the Property consistent with the Annual Operating Plan. Livestock shall be penned or pastured so as not to cause the din be. of pasture gnsscs, soil depressions of swales, of in any way that would negativelaffecl irrigation practices. Watering of livestock shall be conducted in approved areas onoy strut with the Annual Operating Plan. 6. Vehicle and Machinery Stora a 'ILC storage of vehicles or machinery not actively used as part of the agricultural operation is prohibited. The maintenance of vehicles and machinery sued in agricultural operations may be conducted only in designated areas. Any spill or loss of any fluid associated with vehicles or agricultural machinery must be collected and disposed of off the Property consistent with applicable law. T Existing Vegetation. Existing hedgerows and brsuh areas shall not be disturbed except as specifically allowed in writing by the County or as incorporated into the Annual Operating Plan. 8. Emblements. Tenant shall be entitled to all emblements if the termination of the lease is not a result of Tenant's breach and shall retain harvest rights through the end of the growing season. If the lease is terminated or canceled as a result of Tenant's default and failure to cure in accordassce with the terms of this lease, all agricultural products shall be harvested or otherwiu gathered sed sold, if possible and reasonably practical, with the proceeds of such sale going to Landlord to cover its costs and the remainder shared between Landlord and Tempt based on the percentage of she gmwing seamn each was in Possession of the Property. The Landlord will not possess a security interest in the emblements. 9. Fees. Tenant shall be responsible for maintaining all fences and gates in working condition as necessary for the Tenant's proposed use, nomnal wear and tear excepted. Removal of fencing is permitted with Landlord's approval and most be reinstalled upon termination of this lease if Tenant does Out obtain a concurrent lease on the Property. Tenant and Landlord recognize that the westem boundary fence is located on of within the Colorado Department of Transportation (CDOT) Right of Way for Highway 133. CDOT may have additional maintenance and liability regarding the fence. La10. Water Rights. Tenant shall utilize all water rights associated with the Propendlord mrty. ay enter the property to maintain a record of diversion or delivery amounts and the or changes ousts areas of the Property watered Tenant shall not make any improvementsin the RECEPTION# 636190, 02/16/2017 at 09:34:40 AM, P9s 7 of 13, Janice K. Vos Caudill, Pitkin County, CO AOa3CULTUILU- LAND 1E 1 FACE OF irrigation intrastiuctme without written Peamission of the Landlord. All irrigation improvements become the property of the Landlord at the end of the lease.weraTenant shall maintain all ditches, water ,tail runs, pipes, splitter boxes, and all other infrastrucnve associated with the use of water ng the h sours Maintenance shall include but not be limited to burning, cleaning and dredging ditch courses, clearing pipelines, keeping headgates and diversion atnrcmr. in workable order. 11. Erosion Tenant shall not engage M any activity which results in the loss of soil or changes the mPo&aPbY orgrade of the Property. All soil disking and tilling must be appmved in the Annual Operating Plan. Irrigation activity must be temporarily baited if any ditch, lateral, pipeline or other irrigation infrastructure becomes damaged or inoperable. 12. Annual Ooeratioa Plan. An Annual Operating Plan shalt be developed for the rs County by the Open Spaand Trails Department with the Tenant's input, within th terminate tthis lease if Tenant s of two mon the Tenant entering into this lease and will be reviewed and amended, if necessary, at least annually the eArcual Operating Plan") and incorporated into this lease. Landlord may Operating Plan. A11 Arcual Ofails to comply with any of the material provisions of the Annual perating Plans shall include the type of agricultural activity to be conducted on the Property and describe the areas of the Property that will be used for specific agricultural activities. The plan will propose the anticipated water use and whether any changes are needed to the existing irrigation infrastructure. The plan shall address any herbicide redor Pesticide applications to be used on the Property and whether or not there are pests or pators to be removed or eradicated from the Property. The plan shall include the anticipated season dates for the actual agricultural activity as well' the winter cover for the areas of the Property on which agricultural activities were conducted. The plan shall include the types, method of application and timing for the application Of any fertilizer to be used. Amendments to the plan may be executed by the Open Space and Trails Department. GENERAL PROVISIONS 1 Insurance. Tenant shall procure and maintain for the temp of the lease, insurance against claims for injury to persons or damage to Property which may arise from or in connection with occupancy. and use of the Property. The insurance requirements herein are minimum requirements for this lease and in no way Limit the indemnity covenants contained in this lease. Tenant's insurance shall be primary and non-contributory with any insurance or self-insurance purchased by the Landlord. The insurance companies against the County Of issuing the policy or Policies hereunder shall have Pitkin for payment of °O reCO ssets of policy. Any and all deductibles or self-insuredPlums or for n the abov, meats under any, form Policies shall be assumed by and be for the ointeof, Md atuthe sole ap-dec of the Teuribed out Tenant shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverages. Tenant is not relined of any liability or other obligations assumed or pursuant to the lease by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. RECEPTION* 636190, 021612017 at 09:34;40 AM, Pile 6 of 13, Janice K. Vos Caudill, Pitkin County, CO AGRIMT/RAL, N LEASE PAGE r OF, A. coveraec and Limits of Insurance: Tenant shall provide coverage with limits of liability not less than those stated below. An umbrella and/or excess liability policy may be used to meet the minimum liability requirements provided that the coverage is written on a "following form" basis. L Statutory Workers' Compensation: Colorado statutory minimum, a. Polity shall contain a waiver of subrogation against the County. b. This requirement shall not apply when Tenant, contractor or employee is exempt under Colorado Workers' Compensation AcL, AND when such contractor or subcontractor executes the appropriate sole proprietor waiver form. Minimum Limits: Coverage A (Workers' Compwuation) $ Statutory Coverage B (Employers Liabihry) S 500,000 2. Commereial General Liability— ISO ICG 0001 form or equivalent (421h County named addLionul insured) Minimum Limits: Genual Aggregate S 500,000 Producis1COmpleted Operations Aggregate $ 500,000 Each Occurrence Limit S 500,000 PcrsonaVAdvcrtising Injury S 500,000 Five Damage (Any One Fire) Replacement Value of any Structures Medical Payments (Any One Persmt) S 5,000 Coverage to include: • Premises and Operations • Personal I Advertising Injury • Products I Completed Operations • Liability assumed under an Insured Contract (including defense costs assumed under contract) • Independent Contractors • Additional lnsured—Owners, Lessees Or Contractors Endorsement, ISO Form 2010 (2004 Edition or equivalent) • Additional Insured- Ownem' Lessees or Contractors Endorsement, ISO CO 2037 (2004 Edition or equivalent) • The policy shall be endorsed to include the following additional insured language on the Additional Insured Endorsements specified above: "County. its subsidiary, parent, associated and/or affiliated entities, RECEPTION# 636190, 0 211 612 01 7 at 09:34:40 AM, Pgs 9 of 13, Janice K. Vos Caudill, Pitkin County, CO AORICULTt1aALL DL6ASa PAa3OFS successors, or assigns, its elected officials, tnutees, employees agents, and volunteers named as an additional insured with respect to liability and defense of suits arising out of the activities performed by, or on behalf of the Contractor, including completed operations.,, B. Proof of Insurance: 1. Each insurance policy required by the imlrmce provisions of this lease shall pmvide the required coverage and shall not be suspended, voided or canceled except after thirty (30) days prior written notice has been given to the Cuooty, except when cancellation is for non-payment of premium, then D" 00) days prim notice may be given. Such notice shall be sent directly to Pitkin County Open Space and Trails Deparnoent, 530 B. Main Street, 34 Floor, Aspen, Colorado, 81611. If the insurance carrier will not provide due required notice, the Cousultam/Connactor and or its insnance broker shall notify the County of any caoce0ation, or reduction in coverage or limits of MY insurance within seven (7) days of receipt of insurers' notification to that effect. 2. Landlord reserves the right to request and receive a copy of any Policy and any policy endorsement at anytime during the term of this lease. 2. Indemaity. A. Tenant agrees to indemnify, hold hamdess and, not excluding the County's right to participate, defend [be County, its subsidiary, entities, successors, or assigns, its electedc�nS associated platlet' agents, vohmlttrs, and any jurisdiction or agency issuing permits for any employees inthided n hire performance of this lease, hereinaller referred to as indemnitor, from all suits and claims, 'Deluding altorrley�s fees and cost of litigation, ardiom, loss, kd expense, cost or claims of any character or any nature arising out of the work done in fulfillment of the terms of this lease or on account of my act, chum. or amomt arising or recovered under workers' compensation law m arising oro of the fadore of Tenant ro conform to my Statutes, ordinances, regulation, law or court decree. It is agrr d that Tenant will be responsible for primary loss investigation, defense itsdeluec anjdgmn tedeBocart ostsd where Oris contract of indemnity applies. Pitkin County and shall be named as an additional insured with respect to any liability arising Out of the activities performed by, or on behalf of lire Tenants on the Lensed Property. B. Tenant further shall investigate, process, respond to, adjust, provide defense for and defend, pay or settle all claims, demands, or lawsuits related henem at its Sole expense and shall bear all other costs and expenses mlated thereto, even if the fal claim, demand or lawsuit is groundless, Use or fraudulent. RECEPTION# 636190, 0 211 612 01 7 at 09:34:40 AM, Pgs 10 of 13, Janice K. Vos Caudill, Pitkin County, CO AGRINLi1111A11Atnl CaASE PAGEa OF9 3. Assienability. Tenant agrees not to assign or sublease any part of the Property without the written enasemt of the Landlord 4. Biod'm¢ Arbitration. Any disputes arising out of this lease shall be subject to binding arbitration. The parties agree that any disputes concerning the terms and conditions of this lease shall be submitted and finally settled by arbitration. Arbitration shall be conducted pursuant to the rales of the American Arbitration Association and shall be presided over by the Pitkin County Hearing Officer appointed to arbitrate Pitkin County contract disputa. Costs of the arbitration shall be awarded to the substantially prevailing party. 5. Severability. 1n the event that any provision of this lease shall be held to be invalid or unenforceable, the remaining pmvisioas of this lease shall remain valid and binding upon the parties hereto. 6. Integration and Modification. This lease represents the entire and integrated lease between the County and Tenant and supersedes all prior negotiations, representations, or contract, either written or oral. This lease may be amended only by written contract signed by both the County and Tenant 7. Records. Tenant shall maintain comprehensive, complete and accurate books, records, and documents conceming its performance relating to this lease for a period of three (3) years aflu final payment under the lease and the County shall have the right within the three (3) year period to inspect and audit these books, necords and documents, upon demand, in a reasonable manner and at reasonable times, for the purpose of determining, by accepted accounting and auditing standards, compliance with all provisions of the lease and applicable law. S. Lease Made in Colorado. The parties agree that this lease was tirade in accordance with the laws of the State of Colorado and shall be eco construed. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado. 9. Attomev's Fees. N the event that legal action is necessary to enforce any of the provisions of tlus lease beyond the arbitration described in Paragapb 4 above, the substantially prevailing party, whether by final judgment or out of court settlement, shall recover form the other party all costs and expenses of such action or suit including reasonable anomey,s fees. l0. Waivu. Failure of the County to exercise any right or remedy granted under this lease shall not have the effect of waiving or limiting the exercise of the County, or of any other right or remedy or the indication of such right or remedy at any future time. I1. Governmental ]mmuniry. Tenant agrees and understands that Pitkin County is relying on and does not waive, by any provision of this lease, the monetary limitations or terms of any other rights, immunities, aril protections provided by the Colorado GovemmentaI erwise Immunity Act, § 24.10-101, et seq., C.A.S., as from time to time amended, or o available to Pitkin County or any of its officers, agents or employees. Further, nothing thc lease shall be construed or interpreted to require or provide for indcnmification of Tenant in this Ore RECEPTIONM 636190, 02/16/2017 at 09:34:40 AM, Pgs 11 of 13, Janice K. Vos Caudill, Pitkin County, CO PAGE70tnaAL IAYp LFASE PAGEraF9 County for any injury to any person or any property damage whatsoever which is caused by the negligence or other miscondncl of the County or its agent or employees. 12. Notice. Any written notice required by this lease shall be deemed delivered through any of the following; (I) hand delivery to the person at the address below; (2) electronic, interne or facsimile delivery with confirmation of receipt to the e-mail address or fax number below; or (3) within three (3) days of being sent certified first class trail, postage prepaid, remm receipt requealed addressed as follows below. Notice by facsimile, a -mail or intemet delivery ehall be deetned given upon receipt of a confirmation by sender and notice by personal delivery shall be deemed given when received. To: Pitkin County open Space & Trails Atm: Pan] Holsinger 530 E. Main Street, 3^ Floor Aspen, Colorado 81611 Fax: (970) 9205198 E -Mail Address: Paul .Holsing" Pitkincounty.com With Copies To: Pitkin County Attorney's Office 530 E. Main Sbeat, #302 Aspen, Colorado 81611 Fax: (970) 920-5198 E -Mail: John Elv�.cam To: Bill Fales and Marj Petry 4239 Highway 133 Carbondale, Colorado 81623 E -Mail: wrnfales@30l.com 13. Default/Violation of lease Terms, Every clause herein contained is bereby made a condition of this lease. if Tenant fails to comply with any of the material pmvisims of this lease or of any present rules and regulations or any that may be hereafter prescribed by Landlord, or materially fail: to comply with any duties imposed on Tenant by atine within ta indi seven (7) days after delivery of written notice by Landlord specifying the non-compliance and cetiog the intention of Landlord to terminale the lease by reason thereof Landlord may terminate this lease. At the time of default or violation, Landlord may declare all unpaid rent for the remaining term of the lease to be immediately due and payable within thirty (30) days notice to Tenant. Tenant shall be responsible to Landlord for the cost of repairs, legal foes, advertising and any other costs incurred in preparing the Property for re -renting. Tenant agrees not to return to the premises after legal removal. 14. Section Headines. Paragraph or section headings within this lease are inserted solely for convenience of reference, and we not intended to, and shall not govern, limit or aid in the construction of any terms of provisions contained herein. RECEPTION# 636190, 0 211 612 01 7 at 09:34:40 AM, Pgs 12 of 13, Janice K. Vos Caudill, Pitkin County, CO FAGEBOP9 LI.1NDrFASE PAGEe MICELLANEOUS 1. Landlord reserves the right for itself, its agents, and employees to enter the Property al any reasonable time m inspect the Property and to work and make improvements as the Landlord shall deem accessary. Except in exigent or emergency circumstances, landlord shall give Tenant forty-eight (48) hours notice before entering Property. 2. Landlord makes no guarantee of the productivity of the Property and assumes no liability of any condition, visible m not, which may affect agricultural productivity of the Property. Tenant agrees to accept the Property in an As is condition. 3. Tenant shall perform all routine maintenance on the improvements on the Property. Tenant is ON responsible for the acts of third parties not associated authorized to access the Property, but shall be responsible for all third parties, including quests or invitees, authorized by Twang to access the Properly. If a third -party violation occurs, Tenant will report dee violation to the Cowry immediately. 4. Tenant shall not place store or use on the Property substances that are It arardous toxic dangerous or harmful or which are defined as hazardous substances by the Comprehensive Environmental Response Compensation and Liability Act (CEItCLA), 42 USC §9601. 5. Tenant shall not pledge mortgage or cause my lien to be recorded a ainst the Property during the term of this lease. g 6. Tent shall not construct my building or improvement on the Property without Landlord's written consent. 7. Tenant shall not dispose of mash garbage mbbish or refuse on the Property. 8. Tenant shall not permit any commercial activity on the Property apart from those activities described in the agricultural plan. (Signature Page Follows) RECEPTION# 636190, 02/16/2017 at 09:34:40 AM, Pgs 13 of 13, Janice K. Vos Caudill, Pitkin County, CO AGRIM' Lr MLFATE PAGE90F9 IN WITNESS WHEREOF, the Landlord and Tenant have duly executed this lease on the day and year fust above written. TENANT: LANDLORD: Board of County Commissioners Gf Pilldn County William E. L. Fates safe CeorEe Ne rmaa, air ate Marjori _ 7 Perry APPROVED AS TO FORM: jPohn ' Co Attorney 111111INKIN01V011 RECEPTIONit: 939191, R. $0.00. D. $0.00 DOC CODE: LEASE ✓ Pg 1 019, 021912017 at 09:34:41 AM �G C L Janice K. Vos Caudill, Pitkin County, CO y1 AGBICUULTURAL DLEASE This ]use is entered into this't day of Hfife a , 2017 by and between the Board of County Commissioners of Rfkin County, Colors hereinafter "Landlord' or "County", and Bill Fal" and Mari Perry, 4239 Highway 133, Carbondale CO, 81623, hcrcinafler "Tenant". Now therefore, in coasideration of the mutual covenants and promises contained herein, the parties agree as follows: I. Purpose and Intent. Landlord and Tenant intend that the property, all appurtenances, water rights, easements and improvements be used for active agricultural production. Agricultural production shall continue during the entire term of the lease without interruption, consistent with accepted agricultural practices and the agriculture production plan for the property proposed by Tenant and accepted by Landlord, in writing, and made pan of this lease. 2. leased Pronati. Landlord in consideration of the terms contained herein leases to the Tenant, Pursuant to the attached Annual Operating Plan, the following described real property: Thompson Creck Open Space, together with all appurtenant water rights, consisting of the following: 2.64 cubic feet per second (c.f s-) of water in the Low Line Ditch, casements and improvements ("Property"). 3. Lease Term. Unless earlier terminated by operation of this lease, the lease term shall be in effect as of the date the lease is entered above, to December 31, 2027. This lease shall not be renewed or extended except through express written amendment to this lease. Tenant is expressly prohibited from holding over beyond the expiration of the lease term without express written Permission of Landlord. 4. Rent. Tenant agrees to pay Landlord rent at the rate of $250.00 for each calendar year or any portion of a calendar year that this lease is in effect. This amount shall be the annual rent for the Property. The annual rent shall be due in full to the Landlord on April I each year or portion ora yrar that the lease is in effect. Failure to pay rent by this date constitutes a breach of this lease. AGRICULTURAL PROVISIONS L Soil Tenin¢. It shall be the responsibility of the Tenant to conduct soil testing of the Property once a year if changes to the operation are planned, including but not limited to, fertilizer application, cover cropping, significant changes m the stocking rate, etc.._ If Soil sampling is deemed appropriate, the Annual Operating Plan will include details including dates, sample size, and analyses (pH, nutrient levels, microbial communities, organic compounds, etc...). The County may conduct additional soil testing periodically. All results will be shared between the County and Tenant. 2. Weed Control. Tenant is responsible for the removal of all noxious weeds as defined in the Colorado Noxious Weed Act. Removal of noxious weeds shall be before individual plants go to seed. The use of any herbicide shall be particularly approved by the RECEPTION#. 636191, 02116/2017 at 09:34:41 AM, Pigs 2 of 9, Janice K. Vos Caudill, Pitkin County, CO AGRICU1.7i "NDUAX rA kl M9 County as pan of the Annual Operating plan for the Property. Existing areas of infestation, concern, or vectors will be identified in the Annual Operating Plan. 3. Pat Control. Tenant may engage in control, removal, or a ratification of any pests or predators only with the express approval of the County. Methods for pat control shall be contained in the Annual Operating Plan. 4. Fertilizers. The application of any and all fertilizer agents shall be based upon the results of the soil tests and with the recommendation of Colorado State University. The intent of the application of any fertilizer will be to restore or improve soil conditions. The type of fertilizer to be used As well as its application schedule and application method shall be cuntained within the Annual Operating Plan for the Property. 5. L vestock Livestock may be maintained on the Property consistent with the Annual Operating Plan. Livestock shall be penned or pastured so as not to cause the destruction of pasture grasses, soil deprenions or swsles, or in any way that would negatively affect irrigation practices. Watering of livestock shall be conducted in approved areas consistent with the Annual Operating Plan. 6. Vehicle and Machinery Stora . The storage of vehicles or machinery not actively used as part of the agricultural operation is prohibited. The maintenance of vehicles and machinery used in agricultural operations may be conducted only in designated areas. Any spill or loss of any fluid associated with vehicles or agricultural machinery must be collected and disposed of off the Property consistent with applicable law. 7. Existing YcZetalign. Existing hedgerows and bush areas shall not be disturbed except as specifically allowed in writing by the County or as incorporated into the Annual Operating Plan. g. Emblements. Tenant shall be entitled to all emblement9 if the termination of the lease is not a result of Tenant's breach and shall retain harvest rights through the end of the growing season. If the )CM is terminated or canceled as a result of Tenant's default and failure to cure in accordance with the terms of this lease, all agricultural products shall be harvested or otherwise gathered and sold, if possible and reasonably practical, with the proceeds of such sale going to landlord to cover its costs and the remainder shared between Landlord and Tenant based on the Percentage of the growing season each was in Possession of the Property. The Landlord will not Possess a security interest in the embtements. 9. Fences. Tenant shall be responsible for maintaining all fences and gates in working condition as necessary for the Tenant's proposed use, normal wear and tear excepted. Removal of fencing is permitted with Landlord's approval and must be reinstalled upon termimtion of this lease if Tenant does not obtain a concurrent lease on the Property. Tenant and Landlord recognize that the western boundary fence is located on or within the Colorado Department of Transportation WDOT) Right of R'ay, for Highway 133. COOT may have additional mainsenaoce and liability regarding the fence. 10. Water Rights. Tenant shall utilize all water rights associated with the Property. Landlord may enter the property to maintain a record of diversion or delivery amounts and the areas of the Property watered. Tenant shall not make any improvements or changes in the RECEPTION# 636191, 02)16/2017 at 09:34:41 AM, Pgs 3 of 9, Janice K. Vol Caudill, Pitkin County, CO AGa1CUMMU .LAND LEASE PAGE Or irrigation infrastructure without written permission of the Landlord. All irrigation improvements become the property of the Landlord at the ,it of the lease. Tenant shall maintain all ditches, laterals, tail runs, pipes, splitter boxes, and all other infrastructure associated with the use of water on the Property. Maintenance shall include but not be limited to burning, cleaning and dredging ditch courses, clearing pipelines, keeping headgates and diversion structures in workable order. 11. Erosion. Tenant shall not engage in any activity which results in the loss of soil or changes the topography or grade of the Property. All soil disking and tilling must be approved in the Annual Operating Plan. Irrigation activity must be temporarily halted if any ditch, lateral, Pipeline or other irrigation infrastructure becomes damaged or inoperable. 12. Arcual Operating Plan. An Annual Operating Plan shall be developed for the County by the Open Space and Trails Department, with the Tenant's input, within two months of the Tenant entering into this lease and will be reviewed and amended, if necessary, at least annually (the "Annual Operating Plan") and incorporated into this lease. Landlord may terminate this Icasc if Tenant fails to comply with any of the material provisions of the Annual Operating Plan. All Annual Operating Plans shall include the type of agricultural activity to be conducted an the Property and describe the areas of the Property that will be used for specific agricultural activities. The plan will propose the anticipated water use and whether any changes are needed to the existing irrigation infrastructure. The plan shall address any herbicide or pesticide applications to be used on the Property and whether or not there are pests or predators to be removed or eradicated from the Property. The plan shall include the anticipated season dates for the actual agricultural activity as well as the winter cover for the alas of the Property on which agricultural activities were conducted. The plan shall include the types, method of application and liming for the application of any fertilizer to be used. Amendments to the plan may be executed by the Open Space and Trails Department, GENERAL PROVISIONS I. Insurance. Tenant shall procure and maintain for the term of the lease, insurance against claims for injury to persons or damage to Property which may arise from or in connection with occupancy and use of the Properiy. The insurance requirements herein are minimum requirements for this lease and in no way limit the indemnity covenants contained in this lease. Trawl's insurance shall be primary and iron -contributory with any insurance or self-insurance purchased by the Landlord. The insurance companies issuing the policy or policies hereunder shall have no recourse against the County of Pitkin for payment of any premiums or for assessments under any form of policy. Anv and all deductibles or self.msmed retentions in the about-0escribrd insurance policies shall be assumed by and be for the amount of, and at the sole expense of the Tenant. Tenant shall assess its own risks and if it deems appropriate and'or prudent, maintain higher limits and/or broader coverages. Tenant is not relieved of any liability or other obligations assumed or pursuant to the lease by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. RECEPTION#: 636191, 02116/2017 at 09:34:47 AM, P9s 4 of 9, Janice K.VIS Caua i 11, Pitkin County, CO AGa!CG 7UO LANDUEASF PAGEI of A. COVURge and Limits of Insurer : Tenant shall provide coverage with limits of liability not less than those stated below. An umbrella and/or excess liability policy may be used to meet the minimum liability requirements provided that the coverage is written on a "following form" basis. I. Statutory Workers' Compensation: Colorado statutory minimums a. Policy shall contain a waiver of subrogation against the County b. This requiremcat shall not apply when Tenant, contractor or employee is exempt under Colorado Workers' Compensation Act., AND when such contractor or subcontractor executes the appropriate sole proprietor waiver form_ Minimum Limits: Coverage A(Workers* Compensation) S Statutory Coverage B (Employers Liability) $ 500,000 2. Commercial General Liability— ISO ICG 0001 form or equivalent ['{Pith County named additional insured) Minimum Limits: General Aggregate S 500,000 Products/Completed Operations Aggregate S 500,000 Each Occurrence Limit S 500,000 Persond'Advertising Injury S 5W,000 Fire Damage(Any One Fire) Replacement Value of any Structures Medical Payments (Any One Person) $ 5,000 Coverage to include: • Premises and Operations • Personal/ Advertising Injury • Products / Completed Operations Liability assumed under an insured Contract (including defense cost! assumed under contract) Independent Contractors • Additional lnsurcd--Owncrs, Lessees or Contractors Endorsement, ISO Fors 2010 (2004 Edition or equivalent) • Additional Insured-0wrrs, Lessees or Contractors Endorsement, ISO CG 2037 (2004 Edition or equivalent) • The policy shall be endorsed to include the following additional insured language on the Additional Insured Endorsements specified above: "County, its subsidiary, parent, associated and/or affiliated entities, RECEPTION# 636191, 07/1611017 at 09:34:41 AM, Pgs 5 of 9, Janice K. Vos Cauoi l 1, Pitkin County, CO AGWULTCM1AL LAND LEASE. rACL a UEI successors, or assigns, its elected officials, trustees, employees, agents, and volunteers named as an additional insured with respeer to liability and defense of suits arising out of the activities performed by, or on behalf of the Contractor, including completed operations.' B. Proof of Insurance: 1. Each insurance policy required by thenLsurance previsions of this lease shall provide the required coverage and shall not be suspended, voided or canceled except after thirty (30) days prior written notice has been given to the County, except when cancellation is for non-payment of premium, then ten (10) days prior notice may be given. Such notice shall be sent directly to Pitkin County Open Space and Trails Department. 530 E. Main Street, 3" Floor, Aspen, Colorado, 81611. If the insurance carrier will not provide the required notice, the COnsilkam/Contractor and or its insurance broker shall notify the County of any cancellation, or reduction in coverage m limits of any insurance within seven (7) days of receipt of insurers' notification to that effect. 2. Landlord reserves the right to request and receive a copy of any Policy and any policy endorsement at any time during the term of this lease. 2. Indemnity A. Tenant agrees to indenvdfy, hold harmless and, Out excluding the County's right to Participate, defend the County, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, trustees, employees, agents, volunteers, and any jurisdiction or agency issuing permits for any work included in The perfonmttcc of this lease, hereinafter referred to as indemnitee, from all suits and claims, including attu aey's feu and cost of litigation, actions, loss, damage, expense, cost or claims of any character or any nature arising out of the work done in fulfillment of the terms of this lease Or on account of any act, claim or amount arising or recovered under workers compensation law or arising out of the failure of Tenant to conform to any starer,,, ordinances, regulation, law or court decree. It is agreed that Tenant will be responsible for primary loss investigation, defense andjudgmcnt costs where this contract of indcu nity applies. Pitkin County and its elected Board shall be named as an additional insured with respect to any liability arising out of the activities performed by, or on behalf of the Tenants on the Leased Property. B. Tenant further shall investigate, process, respond to, adjust, provide defense for and defend. Pay Of settle all claims, demands, or lawsuits related hereto at its sole expense and shall bear all other costs and expenses related thereto, even if the claim, demand or lawsuit is groundless, false or fraudulent. RECEPTION# 636191, 02/16/2017 at 09:34:41 AM, Pgs 6 of 9, Janice K. Vos Caudill, Pitkin County CO AGa1NLNxAL LAND LEASE PAGE6OF9 3. Assignability. Tenant agrees not to assign or sublease any part of the Property without the written consent of the Landlord. 4. Binding Arbitration. Any disputes arising out of this lease shall be subject to binding arbitration. The partes agree that any disputes concerning the terms and conditions of this lease shall be submitted and finally settled by arbitration. Arbitration shall be conducted pursuant to the rules of the American Arbitration Association and shall be presided over by the Pitkin County Hearing Officer appointed to arbitrate Pitkin County contract disputes. Costs of the arbitration shall be awarded to the substantially prevailing party. 5. Severability. In the event that any provision of this lease shall be held to be invalid or unenforceable, the remaining provisions of this lease shall remain valid and binding upon the parties hereto. 6. Integration and Modification. This lease represents the entire and integrated lease between the County and Tenant and supersedes all prior negotiations, representations, or contract, either written or oral. This lease may be amended only by written contract signed by both the County and Tenant. T Records. Tenant shall maintain comprehensive, complete and accurate books, records, and docuracnts concerning its performance relating to Ibis lease for a period of three (3) years after final payment under the lease and the County shall have the right within the three (3) year period to inspect and audit these books, records and documents, upon demand, in a reasonable manner and at reasonable times, for the purpose of determining, by accepted accounting and auditing standards, compliance with all provisions of the lease and applicable law. g. Lease Made in Colorado. The parties agree that this lease was made in accordance with the laws of the State of Colorado and shall be so construed. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado. 9. Attorney's Fees. In the event that legal action is necessary to enforce any of the provisions of this lease beyond the arbitration described in Paragraph 4 above, the substantially prevailing party, whether by final judgment or out of court settlement, shall recover from the other party all costs and expenses of such action or suit including reasonable attorney's fees. 10. Waiver. Failure of the County to exercise any right tar remedy granted under this lease shall not have the effect of waiving or limiting the exercise of the County, or of any other right or remedy or the indication of such right or remedy at any future time. 11. Governmental Immunity. Tenant agrees and understands that Pitkin County is relying on and does not waive, by any provision of this lease, the monetary limitations or teras or any mhcr rights, immunities, and protections provided by the Colorado Governmental Immunity Act, § 24-10-101, et req., C.R.S., as from lime to time amended, or otherwise available to Pitkin County ce any of its officers, agents or employees. Further, nothing in this lease shall be construed or interpreted to require or provide for indemnification of Tenant by the RECEPTION# 636191, 02/16/2017 at 09:34:41 AM, POs 7 of 9, Janice K. Vos Caudill, Pitkin County, CO Af,Rn TLMAL"Vn LF.ARE PAGE 7Of9 County for any injury to any person or any property, damage whatsoever which is caused by the negligence or other misconduct of the County or its agent or employees. 12. Notice. Any written notice required by this lease shall be deemed delivered through any of dw following: (1) hand delivery to the person at the address below; (2) electronic, internet or facsimile delivery with confmnstion of receipt to the c-roail address or fax number below; or (3) within three (3) days of being sem certified first class mail, postage prepaid, return receipt requested addressed as follows below. Notice by facsimile, e-mail or intemet delivery shall be devoted given upon receipt of a confirmation by sender and notice by personal delivery shall be dccrned given when received. To: Pitkin County Open Space & Trails Attn: Paul Holsinger 530 E. Main Street, 3" Floor Aspen, Colorado 81611 Fax: (970) 920-5198 E -Mail Address: Paull lolsingerCPilkincounly com With Copies To: Pitkin County Attorney's Office 530 E. Main Street, #302 Aspen, Colorado 81611 Fax: (970)920-5198 E -Mail: John ElyC&ilkiucounN.com To: Bill Fates and Mad Perry 4239 Highway 133 Carbondale, Colorado 81623 E -Mail: wmfalesfpyaol.com 13. Def ulifViolation of Lease Terms. Every clatae herein contained is hereby made a condition of this ]case. If Tenant fails to comply with any of the material provisions of this lease, a of any present rules and regulations or any that may be hereafter prescribed by Landlord, or materially fails to comply with any duties imposed on Tenant by statute within seven (7) days after delivery of written notice by landlord specifying the noncompliance and indicating the intention of Landlord to terminate the lease by reason thereof. Landlord may terminate this lease. At the time of default or violation, Landlord may declare all unpaid rent for the remaining term of the lease to be immediately due and payable within thirty (30) days notice to Tenant. Tenant shall be responsible to Landlord for the cost of repairs, legal fees, advertising and any other costs Incurred in preparing the Property for re -renting. Tenant agrees not to return to the premises ata legal removal. 14. Section Headings. Paragraph or section headings within this lease are inserted solely for convenience of reference, and are not intended to, and shall not govem, limit or aid in the construction of any terms or provisions contained herein. RECEPTION# 636191, 0 211 612 01 7 at 09:34:41 AM, Pgs 8 of 9, Janice K. Vos Caudill, Pitkin County, CO AGRICMTLMAL LAND LEASE PAGE A( 9 MICELLANEOUS I. landlord reserves the right for itself, its agents, and employees to enter the Property at any reasonable time to inspect the Property and to work and make improvements as the Landlord shall deem necessary. Except in exigent or emergency circumstances, Landlord shall give Tenant forty-eight (48) hours notice before entering Property. 2. Landlord makes no guarantee of the productivity of the Property and assumes no liability of any condition, visible or suck which may affect agricultural productivity of the Property. Tenant agrees to accept the Property in an as is condition. 3. Tenant shall perform all routine maintenance on the improvements on the Property. Tenant is not responsible for the acts of third parties not associated authorized to access the Property, but shall be responsible for all third parties, including quests or invitees, authorized by Tenant to access the Property. If a third -party violation occurs, Tenant will report the violation to the County immediately. 4. Tenant shall not place store or use on (he Property substances that are hazardous toxic dangerous or harmful or which are defined as hazardous substances by the Comprchery ive Environmental Response Compensation and Liability Act (CERCLA), 42 USC § 9601. 5. Tenant shall not pledge mortgage or cause any hen to be recorded against the Property during the tam of this lease. 6. Tenant shall not construct any building or improvement on the Property without Landlord's written consent. Tenant shall not dispose of trash garbage rubbish or refuse on the Property. R. Tenant shall not permit any commercial activity on the Property apart from those activities described in the agricultural plan. (Signature Page Follows) RECEPTIONK: 636191, 0 211 612 01 7 at 09:34'A1 AM, Pgs 9 of 9, Janice K. Vos Caudill, Pitkin County, CO AORIMWRAIJ.ANn TpAW rAGE90F4 IN WITNESS WHEREOF, the Landlord and Tenant have duly executed this lease on the day and year first above written. TENANT: LANDLORD: Board of County Commissioam of Pitkin County William E. L Files b % George Ne man, Lair bate MarjoriePerry Da[e APPROVED AS TO FORM: John M Pi Co •Attorney AGRICULTURAL LAND LEASE This lease is entered into this 190�-day of (t.(/li 0 c , 2017 by and between the Board of County Commissioners of Pitkin County, Colom o, hereinafter "Landlord" or "County", and Bill Fales and Marj Perry, 4239 Highway 133, Carbondale CO, 91623, hereinafter "Tenant". Now therefore, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: 1. Purpose and Intent. Landlord and Tenant intend that the property, all appurtenances, water rights, easements and improvements be used for active agricultural production. Agricultural production shall continue during the entire term of the lease without interruption consistent with accepted agricultural practices and the agriculture production plan for the property proposed by Tenant and accepted by Landlord, in writing, and made part of this lease. 2. Leased Property. Landlord in consideration of the terms contained herein leases to the Tenant, pursuant to the attached Annual Operating Plan, the following described real property: Thompson Creek Open Space, together with all appurtenant water rights, consisting of the following: 2.64 cubic feet per second (c.f.s.) of water in the Low Line Ditch, easements and improvements ("Property"). 3. Lease Term. Unless earlier terminated by operation of this lease. the lease term shall be in effect as of the date the lease is entered above, to December 3l, 2027. This lease shall cept through express written amendment to this lease. Tenant is not be renewed or extended ex expressly prohibited from holding over beyond the expiration of the lease term without express written permission of Landlord. 4. Rent. Tenant agrees to pay Landlord rent at the rate of $250.00 for each calendar year or any portion of a calendar year that this lease is in effect. This amount shall be the annual rent for the Property. The annual rent shall be due in full to the Landlord on April I each year or portion of a year that the lease is in effect. Failure to pay rent by this date constitutes a breach of this lease. AGRICULTURAL PROVISIONS 1. Soil Testing. It shall be the responsibility of the Tenant to conduct soil testing of the Property once a year if changes to the operation are planned, including but not limited to, fertilizer application, cover cropping, significant changes to the stocking rate, etc... If soil sampling is deemed appropriate, the Annual Operating Plan will include details including dates, sample size, and analyses (pH, nutrient levels, microbial communities, organic compounds, etc...). The County may conduct additional soil testing periodically. All results will be shared between the County and Tenant. 2. Weed Control. Tenant is responsible for the removal of all noxious weeds as defined in the Colorado Noxious Weed Act. Removal of noxious weeds shall be before individual plants go to seed. The use of any herbicide shall be particularly approved by the AGRICULTURAL LAND LFASF PAGE20F9 County as part of the Annual Operating Plan for the Property. Existing areas of infestation, concern, or vectors will be identified in the Annual Operating Plan. 3, Pest Control. Tenant may engage in control, removal, or a ratification of any pests or predators only with the express approval of the County. Methods for pest control shall be contained in the Annual Operating Plan. 4. Fertilizers. The application of any and all fertilizer agents shall be based upon the results of the soil tests and with the recommendation of Colorado State University. The intent of the application of any fertilizer will be to restore or improve soil conditions. The type of fertilizer to be used as well as its application schedule and application method shall be contained within the Annual Operating Plan for the Property. 5. Livestock. Livestock may be maintained on the Property consistent with the Annual Operating Plan. Livestock shall be penned or pastured so as not to cause the destruction of pasture grasses, soil depressions or swales, or in any way that would negatively affect irrigation practices. Watering of livestock shall be conducted in approved areas consistent with the Annual Operating Plan. 6. Vehicle and Machinery Storage. The storage of vehicles or machinery not actively used as part of the agricultural operation is prohibited. The maintenance of vehicles and machinery used in agricultural operations may be conducted only in designated areas. Any spill or loss of any fluid associated with vehicles or agricultural machinery must be collected and disposed of off the Property consistent with applicable law. 7. Existing Vcgetnti ln. Existing hedgerows and brush areas shall not be disturbed except as specifically allowed in writing by the County or as incorporated into the Annual Operating Plan. 8. Emblements. Tenant shall be entitled to all emblements if the termination of the lease is not a result of Tenant's breach and shall retain harvest rights through the end of the growing season. If the lease is terminated or canceled as a result of Tenant's default and failure to cure in accordance with the terms of this lease, all agricultural products shall be harvested or otherwise gathered and sold, if possible and reasonably practical, with the proceeds of such sale going to Landlord to cover its costs and the remainder shared between Landlord and Tenant based on the percentage of the growing season each was in possession of the Property. The Landlord will not possess a security interest in the emblements. 9. Fences. Tenant shall be responsible for maintaining all fences and gates in working condition as necessary for the Tenant's proposed use, normal wear and tear excepted. Removal of fencing is permitted with Landlord's approval and must be reinstalled upon termination of this lease if Tenant does not obtain a concurrent lease on the Property. Tenant and Landlord recognize that the western boundary fence is located on or within the Colorado Department of Transportation (CDOT) Right of Way for Highway 133. CDOT may have additional maintenance and liability regarding the fence. 10. Water Rights. Tenant shall utilize all water rights associated with the Property. Landlord may enter the property to maintain a record of diversion or delivery amounts and the areas of the Property watered. Tenant shall not make any improvements or changes in the AGRICULS'L'RAL IAND LEASE PAGE J CH 9 irrigation infrastructure without written permission of the Landlord. All irrigation improvements become the property of the Landlord at the end of the lease. Tenant shall maintain all ditches, laterals, tail runs, pipes, splitter boxes, and all other infrastructure associated with the use of water on the Property. Maintenance shall include but not be limited to burning, cleaning and dredging ditch courses, clearing pipelines, keeping headgates and diversion structures in workable order. 11. Erosion. Tenant shall not engage in any activity which results in the loss of soil or changes the topography or grade of the Property. All soil disking and tilling must be approved in the Annual Operating Plan. Irrigation activity must be temporarily halted if any ditch, lateral, pipeline or other irrigation infrastructure becomes damaged or inoperable. 12. Annual Operating Plan, An Annual Operating Plan shall be developed for the County by the Open Space and Trails Department, with the Tenant's input, within two months of the Tenant entering into this lease and will be reviewed and amended, if necessary, at least annually (the "Annual Operating Plan') and incorporated into this lease. Landlord may terminate this lease if Tenant fails to comply with any of the material provisions of the Annual Operating Plan. All Annual Operating Plans shall include the type of agricultural activity to be conducted on the Property and describe the areas of the Property that will be used for specific agricultural activities. The plan will propose the anticipated water use and whether any changes are needed to the existing irrigation infrastructure. The plan shall address any herbicide or pesticide applications to be used on the Property and whether or not there are pests or predators to be removed or eradicated from the Property. The plan shall include the anticipated season dates for the actual agricultural activity as well as the winter cover for the areas of the Property on which agricultural activities were conducted. The plan shall include the types, method of application and timing for the application of any fertilizer to be used. Amendments to the plan may be executed by the Open Space and Trails Department. GENERAL PROVISIONS L insurance. Tenant shall procure and maintain for the term of the lease, insurance against claims for injury to persons or damage to Property which may arise from or in connection with occupancy and use of the Properly. The insurance requirements herein are minimum requirements for this lease and in no way limit the indemnity covenants contained in this lease. Tenant's insurance shall be primary and non-contributory with any insurance or self-insurance purchased by the Landlord. The insurance companies issuing the policy or policies hereunder shall have no recourse against the County of Pitkin for payment of any premiums or for assessments under any form of policy. Any and all deductibles or self-insured retentions in the above-described insurance policies shall be assumed by and be for the amount of, and at the sole expense of the Teener Tenant shall assess its own risks and if it deems appropriate and/or prudent, maintain higher limits and/or broader coverages. Tenant is not relieved of any liability or other obligations assumed or pursuant to the lease by reason of its failure to obtain or maintain insurance in sufficient amounts, duration, or types. AGRICULTURAL LAND LFASR PAGE 40F9 A. Coverage and Limits of Insurance: Tenant shall provide coverage with limits of liability not less than those stated below. An umbrella and/or excess liability policy may be used to meet the minimum liability requirements provided that the coverage is written on a' -following form" basis. Statutory Workers' Compensation: Colorado statutory minimums a. Policy shall contain a waiver of subrogation against the County. b. This requirement shall not apply when Tenant, contractor or employee is exempt under Colorado Workers' Compensation Act., AND when such contractor or subcontractor executes the appropriate sole proprietor waiver form. Minimum Limits: Coverage A (Workers' Compensation) $ Statutory Coverage B (Employers Liability) $ 500,000 2. Commercial General Liability — ISO ICG 0001 font, or equivalent (With County named additional insured) Minimum Limits: General Aggregate $ 500,000 Products/Completed Operations Aggregate $ 500,000 Each Occurrence Limit $ 500,000 Pereonal/Advertising Injury $ 500,000 Fire Damage (Any One Fire) Replacement Value of any Structures Medical Payments (Any One Person) S 5,000 Coverage to include: • Premises and Operations • Personal / Advertising Injury • Products / Completed Operations • Liability assumed under an Insured Contract (including defense costs assumed under contract) • Independent Contractors • Additional Insured—Owners, Les sccs or Contractors Endorsement, ISO Font, 2010 (2004 Edition or equivalent) • Additional Insured—Owners, Lessees or Contractors Endorsement, ISO CG 2037 (2004 Edition or equivalent) • The policy shall be endorsed to include the following additional insured language on the Additional Insured Endorsements specified above: "County, its subsidiary, parent, associated and/or affiliated entities, AGRICULTURAL LAND LEASI, PAOF5OF9 successors, or assigns, its elected officials, trustees, employees, agents, and volunteers named as an additional insured with respect to liability and defense of suits arising out of the activities performed by, or on behalf of the Contractor, including completed operations." B. Proof of Insurance: 1. Each insurance policy required by the insurance provisions of this lease shall provide the required coverage and shall not be suspended, voided or canceled except after thirty (30) days prior written notice has been given to the County, except when cancellation is for non-payment of premium, then ten (10) days prior notice may be given. Such notice shall be sent directly to Pitkin County Open Space and Trails Department, 530 E. Main Street, 3" Floor, Aspen, Colorado, 81611. If the insurance carrier will not provide the required notice, the Consultant/Contractor and or its insurance broker shall notify the County of any cancellation, or reduction in coverage or limits of any insurance within seven (7) days of receipt of insurers' notification to that effect. 2. Landlord reserves the right to request and receive a copy of any policy and any policy endorsement at any time during the term of this lease. 2. Indemnity. A. Tenant agrees to indemnify, hold hamtless and, not excluding the County's right to participate, defend the County, its subsidiary, parent, associated and/or affiliated entities, successors, or assigns, its elected officials, tmstees, employees, agents, volunteers, and any jurisdiction or agency issuing permits for any work included in the performance of this lease, hereinafter referred to as indemnitee, from all suits and claims, including attorney's fees and cost of litigation, actions, loss, damage, expense, cost or claims of any character or any nature arising out of the work done in fulfillment of the terms of this lease or on account of any act, claim or amount arising of recovered under workers' compensation law or arising out of the failure of Tenant to conform to any statutes, ordinances, regulation, law or court decree. It is agreed that Tenant will be responsible for primary loss investigation, defense and judgment costs where this contract of indemnity applies. Pitkin County and its elected Board shall be named as an additional insured with respect to any liability arising out of the activities performed by, or on behalf of the Tenants on the Leased Property. B. Tenant further shall investigate, process, respond to, adjust, provide defense for and defend, pay or settle all claims, demands, or lawsuits related hereto at its sole expense and shall bear all other costs and expenses related thereto, even if the claim, demand or lawsuit is groundless, false or fraudulent. AGRILLrTURAL LAND] FRSE PACE 6 OI' 9 3. Assi nability. Tenant agrees not to assign or sublease any part of the Property without the written consent of the Landlord. 4. Binding Arbitration. Any disputes arising out of this lease shall be subject to binding arbitration. The parties agree that any disputes concerning the terms and conditions of this lease shall be submitted and finally settled by arbitration. Arbitration shall be conducted pursuant to the rules of the American Arbitration Association and shall be presided over by the Pitkin County Hearing Officer appointed to arbitrate Pitkin County contract disputes'. Costs of the arbitration shall be awarded to the substantially prevailing party. 5. Severability. In the event that any provision of this lease shall be held to be invalid or unenforceable, the remaining provisions of this lease shall remain valid and binding upon the parties hereto. 6. Integration and Modification. This lease represents the entire and integrated lease between the County and Tenant and supersedes all prior negotiations, representations, or contract, either written or oral. This lease may be amended only by written contract signed by both the County and Tenant. 7. Records. Tenant shall maintain comprehensive, complete and accurate rmance elating to this lease threes(1) years after final payment undercuments the lase and therCounty shall have therright period thin the three (3) year period to inspect and audit these books, records and documents, upon demand, in a reasonable manner and at reasonable times, for the purpose of detemrinnrg, by accepted accounting and auditing standards, compliance with all provisions of the lease and applicable law. g. Lease Made in Colorado. The parties agree that this lease was made in accordance with the laws of the State of Colorado and shall be so construed. Venue is agreed to be exclusively in the courts of Pitkin County, Colorado. 9. Attorney's Fees. In the event that legal action is necessary to enforce any of the provisions of this lease beyond the arbitration described in Paragraph 4 above, the substantially prevailing party, whether by final judgment or out of court settlement, shall recover from the other party all costs and expenses of such action or suit including reasonable attorney's fees. t0. Waiver. Failure of the County to exercise any right or remedy granted under this lease shall not have the effect of waiving or limning the exercise of the County, or of any other right or remedy or the indication of such right or remedy at any future time. 11. Governmental Immunity. Tenant agrees and understands that Pitkin County is relying on and does not waive, by any provision of this lease, the monetary limitations or terms or any other rights, immunities, and protections provided by the Colorado Governmental Immunity Act, § 24-10-101, et seq., C.R.S., as from time to time amended, or otherwise available to Pitkin County or any of its officers, agents or employees. Further, nothing in this lease shall be construed or interpreted to require or provide for indemnification of Tenant by the AGRICULTURAL LAND LEAST PAGE70F9 County for any injury to any person or any property damage whatsoever which is caused by the negligence or other misconduct of the County or its agent or employees. 12. Notice. Any written notice required by this lease shall be deemed delivered through any of the following: (1) hand delivery to the person at the address below; (2) electronic, internet or facsimile delivery with confirmation of receipt to the e-mail address or fax number below; or (3) within three (3) days of being sentcertified first class mail, postage prepaid, return receipt requested addressed as follows below. Notice by facsimile, e-mail or intenet delivery shall be deemed given upon receipt of a confirmation by sender and notice by personal delivery shall be deemed given when received. To: Pitkin County Open Space & Trails Attn: Paul Holsinger 530 E. Main Street, Y Floor Aspen, Colorado 81611 Fax: (970) 920-5198 E -Mail Address: Paul.Holsinger@Pitkincounty.com with Copies To: Pitkin County Attorney's Office 530 E. Main Street, 4302 Aspen, Colorado 81611 Fax: (970) 920-5198 E -Mail: John ElyCaTitkincounty.com To: Bill Fales and Mari Perry 4239 Highway 133 Carbondale, Colorado 81623 E -Mail: wmfales@aol.com 13. Default/Violation of Lease Terms. Every clause herein contained is hereby made a condition of this lease. If Tenant fails to comply with any of the material provisions of this lease, or of any present rules and regulations or any that may be hereafter prescribed by Landlord, or materially fails to comply with any duties imposed on Tenant by statute within seven (7) days after delivery of written notice by Landlord specifying the non-compliance and indicating the intention of Landlord to terminate the lease by reason thereof, Landlord may terminate this lease. At the time of default or violation, Landlord may declare all unpaid rent for the remaining tent of the lease to be immediately due and payable within thirty (30) days notice to Tenant. Tenant shall be responsible to Landlord for the cost of repairs, legal fees, advertising and any other costs incurred in preparing the Property for re -renting. Tenant agrees not to return to the premises after legal removal. 14. Section Headings. Paragraph or section headings within this lease are inserted solely for convenience of reference, and are not intended to, and shall not govern, limit or aid in the construction of any terms or provisions contained herein. AORICULTURAI. LAND LP_ASP PAVE S OF MICELLANEOUS 1. Landlord reserves the right for itself, its agents, and employees to enter the Property at any reasonable time to inspect the Property and to work and make improvements as the Landlord shall deem necessary. Except in exigent or emergency circumstances, Landlord shall give Tenant forty-eight (48) hours notice before entering Property. 2. Landlord makes no guarantee of the productivity of the Property and assumes no liability of any condition, visible or not, which may affect agricultural productivity of the Property. Tenant agrees to accept the Property In an as is condition. 3. Tenant shall perfomt all routine maintenance on the improvements on the Property. Tenant is not responsible for the acts of third parties not associated authorized to access the Property, but shall be responsible for all third parties, including quests or Invitees, authorized by Tenant to access the Property. If a third -party violation occurs, Tenant will report the violation to the County immediately. 4. Tenant shall not place store or use on the Property substances that are hazardous toxic dangerous or harmful or which are defined as hazardous substances by the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), 42 USC § 9601. 5. Tenant shall not pledge mortgage or cause any lien to be recorded against the Property during the term of this lease. 6. Tenant shall not construct any building or improvement on the Property without Landlord's written consent. 7. Tenant shall not dispose of trash garbage rubbish or refuse on the Property. R. Tenant shall not permit any commercial activity on the Property apart from those activities described in the agricultural plan. (Signature Page FOIIOWS) AGRICULTURAL IAND LEAST! PAGE90r9 IN WITNESS WHEREOF, the Landlord and Tenant have duly executed this lease on the day and year first above written. TENANT: LANDLORD: Board of County Commissioners of Pitkin County William E. L. Fates Date George Ne vman, tair ate Mary Perry Date APPROVED AS TO FORM: John M / Pi , Co Attorney