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Home My WebLink About06-04 Resolution RECORD OF RESOLUTIONS Dayton Legal Blank, Inc., Form No. 30045 .---.--------------- ------- Resolution No. 06-04 Passed .20 - A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGRICULTURAL LEASE FOR CERTAIN CITY OWNED LAND, AND WAIVING FORMAL BIDDING REQUIREMENTS OF CHAPTER 721 OF THE OHIO REVISED CODE WHEREAS, the City of Dublin owns a 100 +/- acre parcel located adjacent to Darree Fields Park which generates income to the City if it is leased for agricultural purposes; and WHEREAS, it is in the best interest of the City to protect the value of this parcel by entering into an agricultural lease; and WHEREAS, staff has conducted a formal competitive bid process for this agricultural lease, and after advertising this bid twice, received five bids, the highest being $126.33 per tillable acre as submitted by Mr. Brent Hostetler, NOW, THEREFORE, BE IT ORDAINED by the Council ofthe City of Dublin, State of Ohio, If of the elected members concurring that: Section 1. That pursuant to Section 8.04 ofthe Revised Dublin Charter, the lease ofa 100 +/- acre parcel adjacent to Darree Fields Park is hereby authorized as bid and with express waiver of the requirements of Chapter 721 of the Ohio Revised Code. Section 2. That the City Manager is authorized to execute an agricultural lease for the subject parcel with Mr. Brent Hostetler at $126.33 per tillable acre, the term ofwhich will extend until December 1, 2004 with a 90-day grace period with an annual option to renew this lease by mutual consent of the parties for two, one-year terms beyond the original lease. Section 3. That this Resolution shall take effect and be in force on the earliest date permitted by law. Passed this / 7ft. day DR,}- f' .h rIA ai/ ,2004 ~C~ U i c. ~ Mayor - P esi ing Officer ATTEST: ~ C2- (!~ Clerk of Council I hereby certify that copIes of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. Department of Service 6555 Shier Rings Road. Dublin, OH 43016-8716 Phone: 614-410-4750. Fax: 614-923-5529 CITY OF DUBLIN Memo TO: Members of the Dublin City Council FROM: Jane S. Brautigam, City Manager LT~ 5. <.::>~ DATE: January 6, 2004 INITIATED BY: Dana L. McDaniel, Deputy City Manager/Director of Service RE: Cosgray Land Rental Bid Process, Resolution #06-04 BACKGROUND Staff has conducted a formal competitive bid process for the rental of City-owned land adjacent to Darree Fields (previously known as "stadium land"). The objective of this project involves the rental of 100 +/- acres of land strictly for agricultural purposes. The City has leased this land for agricultural purposes since 1997. Typically, the leases are issued for one year with two, one- year renewals. At the end of the three-year cycle bids are again sought to assure the City is receiving the maximum rent. The City realizes two primary benefits from renting this land for this purpose. These benefits include keeping this land in an agricultural status and minimizing land maintenance costs. Competitive bids were requested on a price per acre basis and were opened on January 21,2004. As reflected in the attached bid tabulation, the City received five bids ranging from a low of $78.50/acre to a high of $126.33/acre and the crop to be planted would either be com or soybeans. One bidder submitted a bid in the amount of ".99/acre higher than the highest." Staff questioned the ability to award the contract to a bid submitted in this manner and requested legal staff review the bid process. Legal staff completed the review and issued the following opinion: All research conducted regarding competitive bidding reiterates the common theme that each individual bidder should have an equal opportunity to secure a bid. The entire rationale behind requiring sealed bids is to preserve the competitive nature of the process. The competitive nature of the process is destroyed if a bidder submits a bid that is directly tied to the amount of another bid (i.e. $.99 higher than the highest bid). A bid amount must be discernible from its face in order to be valid. This is impossible in the scenario presented. In effect, the winning bidder is predetermined, which defeats the purpose of soliciting sealed bids. Accordingly, we would recommend that the $.99 bid be thrown out as nonresponsive. The specifications governing this project require that the land shall only be used for the purpose of planting, maintaining, and harvesting crops; no material alteration to the land shall be permitted. In addition, the rental period will begin upon execution of the contract and end on December 1, 2004, with a 90-day grace period thereafter in the event weather-related circumstances do not allow harvesting of the crop by December 1. The specifications also allow for an annual renewal option for two, one-year terms beyond the original contract period. This renewal option would be based upon mutual agreement between the parties and would be governed by the same terms and conditions specified in the original contract. Lastly should additional acreage be made available by the City for farming purposes, the successful bidder will be given the right of first refusal for extending his farming operation to such land. Please note that the attached legislation, under "home rule" authority granted by the Revised Dublin Charter, waives the formal advertising and competitive bidding requirements specified in Chapter 721 of the Ohio Revised Code. Section 721.03 of the ORC requires all bid notices for the lease of municipal land to be advertised once a week for five (5) consecutive weeks. Chapter 37 ofthe Dublin Codified Ordinances ("Contracting and Competitive Bidding") requires that bid notices be advertised only once; however, Chapter 37 governs the procurement of goods and services and contains no provision for the sale or lease of land. Staff advertised the bid notice and conducted formal competitive bidding; however, the bid notice was only advertised twice. Given that Chapter 37 of the Dublin Codified Ordinances is silent on the sale or lease of land and, therefore, Section 721.03 of the ORC governs, the attached legislation contains a provision to waive the five (5) week advertising requirement specified in Section 721.03 of the ORC. The Law Director has determined that again, under the "home rule" authority granted by the Dublin Revised Charter, such waiver is defensible. RECOMMENDATION Staff recommends Council pass Resolution 06-04. Please address any questions to Dana McDaniel at 410-4751. JB/DLM/tb T:lword\DANAlMEMOSICOUNCILICosgray Lease 2004.doc f' CITY OF DUBLIN DIVISION OF HUMAN RESOURCES/PROCUREMENT BID TABULATION FORM Bid Project:fAS(; 7<< 11 V UI-rJl!J tEl..m~C.JJ4;serAgency: ll/4:PM.! /0,E,.)i IF ;;V?i)'!tC' Bid Opening Date, Time & Location fA) fJj ( If;,--I ( elf- t: r ~ :~. Yh-1, L<~<< -5J1./1::.7lI2lJ67,f l/J . Bidder Manufacturer, Model Name, Total Bid Price Alternate Bid Bond Statement Non-Coli. Property Deliv. Comments & Model Number of Bid items. Bid Prlce(s) Of Qual. Affidavit Tax Affidavit ~ /fA. f I~.tf III '7.. 1'-1 l UA..L_ fA-rf-- ,I iltJfv',A..-M ~kI-r- .1) e:lJ V I S K.) o8iCfi. 17 t. SU / UJ.AJ-- (v-..--.. / ~t.u..-.<.-/ HII~tJ-r .it J;r!." ~'3 )l,~ (...h.7'-/ .troJ1Vne7v i .,1< .C>. (!l1lf'(~ If I.}-l, ;3) f~" . yJ~~ ~ !xl!./!'--- 1\ . q q I Luv-- ....4\Jxh.J-, _. ttu UI-1 W J ~;...,,-,-'I ~ Ud L_:/.JJ-o..-- .-/1-1.-1--" ~+ fJ H ttf'-'-u/ "1(Io,~i:j.r, J.i.tO p- IA '..dJ.JA f- ;r. _ -, . u.. ID~~," ~ '/0,_;, ,/J! 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