06-04 Resolution
RECORD OF RESOLUTIONS
Dayton Legal Blank, Inc., Form No. 30045
.---.--------------- -------
Resolution No. 06-04 Passed .20
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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
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