HomeMy WebLinkAboutMartinson Construction-6/16/2014CITY OF WATERLOO
Council Communication
City Council Meeting: Tune 2, 2014
Prepared: May 28, 2014
Dept. Head Signature: Mike Wilson IOW
# of Attachments:
SUBJECT: Approval of Plans, Specifications, Advertising, and setting date for a public
hearing at the regular City Council meeting on June 16, 2014 and setting date for
bid letting in the First Floor Conference Room at City Hall on June 12, 2014 at
1:00 p.m. for Haying at Waterloo Regional Airport.
Submitted by: Mike Wilson, Airport Director
Recommended City Council Action: Approval of Plans, Specifications, Advertising, and
setting date for a public hearing at the regular City Council meeting on June 16, 2014 and setting
date for bid letting in the First Floor Conference Room at City Hall on June 12, 2014 at 1:00 p.m.
for Haying at Waterloo Regional Airport.
Summary Statement: The Waterloo Regional Airport is soliciting proposals for operators to
hay portions of the airport to reduce our mowing operations and generate additional income.
Expenditure Required: $0
Source of Funds: NA
Policy Issue
Alternative
Background Information: There are approximately 400 acres of grassland which is currently
being mowed by airport staff Approximately 300 acres of this area has been identified by
airport staff as area available for a mowing reduction program. The mowing reduction is
accomplished by escorting haying equipment onto airport property two or three times per year to
cut, rake, bale and remove the bales from the area immediately. This will be bid per bale based
on cubic feet of the bale to take the risk out of the equation for the successful farmer.
CITY OF WATERLOO
Council Communication
City Council Meeting: June 16, 2014
Prepared: June 12, 2014
Dept. Head Signature: Michael Wilson
# of Attachments: 1
SUBJECT: Approve Contract with Martinson Construction, of Waterloo, Iowa in the amount
of $20 per hay bale in conjunction with Haying project at Waterloo Regional Airport; and to
authorize Mayor to execute said documents.
Submitted by: Michael Wilson, Airport Director
Recommended City Council Action: Approve Contract with Martinson Construction, of
Waterloo, Iowa in the amount of $20 per hay bale in conjunction with the Haying project at
Waterloo Regional Airport; and to authorize Mayor to execute said documents.
Summary Statement: The airport will receive $20 from Martinson Construction for each hay bale
removed from airport property.
Expenditure Required: $0
Source of Funds: NA
Policy Issue:
Alternative:
Background Information: Airport maintenance personnel have been mowing approximately 250
acres on the airport which have been identified as areas that will be added to a mowing reduction
program. As part of this program, proposals were solicited for haying on the airport. Bids were
opened and read on June 12, 2014. Martinson Construction was the sole proposer for this
project.
Hay Lease Available — Waterloo Regional Airport
June 12, 2014 Bid Tab
Bid Security Not Required
Bidder
Bid Amount
Martinson Construction
3842 West Airline Hwy.
Waterloo, IA 50703
5'x5' Round Bale @ $20.00/bale
Please return this copy to:
City Clerk & Finance Dept.
715 Mulberry St.
Waterloo, IA 50703
AGRICULTURAL LEASE
This Hay Bale Lease (the "Lease") is entered into this 16th day of June 2014, by and between
Landlord and Tenant, as set forth below:
Tenant:
Name: Martinson Construction
Address: 3842 West Airline Highway
Waterloo, Iowa 50703
Landlord:
Name: City of Waterloo, Iowa, acting by and through the Waterloo Airport Board
Address: 2790 Livingston Lane, Waterloo, Iowa, 50703
In consideration of the mutual promises exchanged herein, the parties agree as follows:
1. DESCRIPTION OF LAND. The Landlord leases to the Tenant for agricultural
purposes the following legally described property (the "Real Estate"):
Certain parcels located in Sections 4, 5, 29, 30, 31, 32 and 33, Black Hawk County,
Iowa, consisting of approximately 250 acres, more or less, within the confines of
the Waterloo Regional Airport, as designated specifically by Landlord. For
purposes of this Lease, the Real Estate does not include parcel no. 9013-32-351-
001.
The Real Estate is subject to all easements now existing or which the Landlord may grant in the
future.
2. TERM OF LEASE. The term of this Lease shall be for the period of two (2) crop
years beginning as of the date of this Lease and ending at 12:01 a.m. on March 1, 2016.
3. USE. The Tenant shall have the right to use the Real Estate for the cutting, raking,
baling, and transportation of grass hay, and for no other purpose whatsoever.
4. CASH RENT. Tenant agrees to pay the Landlord cash rent for the use of part or all
of the Real Estate as follows:
Payment will be due within 30 days of invoice. Invoiced amount will be based on a rate of $20.00
per bale made on airport property.
In the event the cash rent is not paid by the due date(s), interest shall be charged at the rate of 18%
percent per annum, compounded monthly, beginning five (5) days after the due date, until paid. All
cash rent is to be paid to the Landlord at the address shown above or at such other place as the
Landlord may direct in writing.
5. TENANT DUTIES AND CONDITIONS. Tenant agrees to:
a. Not interfere with or adversely affect the use, operation, maintenance or
development of the airport. Not plant any crops or grasses on the property.
b. Harvest hay in a timely fashion as weather permits. In the event Tenant fails
to do so, Landlord reserves the right, personally or through designated agents, to enter upon
the Real Estate and properly care for and harvest all growing crops, charging the cost of the
care and harvest to the Tenant.
c. Farm the land in an efficient and husband -like manner.
d. Comply with all local, state, and federal laws and regulations governing all
activities related to the application of pesticides. Follow label directions in the handling and
application of all chemicals used on the Real Estate, and follow all applicator's licensing
requirements. Comply with local, state, and federal laws and regulations pertaining to
groundwater contamination, manure disposal, and hazardous waste storage or disposal.
e. Not allow any use of the Real Estate by any other person without prior
written consent of the Landlord.
6. RESERVED RIGHTS OF LANDLORD. Because the Real Estate is part of the
Waterloo Airport property, the parties agree that the Real Estate, and Tenant's rights under this Lease,
are subject to the following reserved rights of the Landlord:
a. There is hereby reserved to Landlord, its successors and assigns, for the use
and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in
the airspace above the surface of the Real Estate, together with the right to cause in said
airspace such noise as may be inherent in the operation of aircraft using said airspace or land
at, taking off from, or operating on or about the airport.
b. This Lease shall become subordinate to the provisions of any existing or
future agreement between Landlord and the federal government relative to operation,
development or maintenance of the airport, the execution of which has been or may be
required as a condition precedent to the expenditure of federal funds for the development of
the airport.
c. During time of war or national emergency, Landlord shall have the right to
enter into an agreement with the federal government for use of part or all of the landing area,
publicly owned air navigation facilities, and/or other areas or facilities of the airport by
armed forces. If such an agreement is executed, the provisions of this Lease shall be
suspended to the extent that they are inconsistent with the provisions of the agreement with
the federal government.
d. In connection with any air show or other large-scale event requiring the use of
airport grounds, Landlord may remove certain acres from operation of this Lease for the
then -current crop year. Landlord will consult with Tenant and will seek to minimize the
number of acres affected.
7. ENVIRONMENTAL MATTERS. Tenant shall comply with all applicable
environmental laws concerning application, storage and handling of chemicals (including, without
limitation, herbicides and insecticides) and fertilizers. Tenant shall apply any chemicals used for
weed or insect control at levels not to exceed the manufacturer's recommendation for the soil types
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involved. Farm chemicals may not be stored on the Real Estate. Chemicals used on the Real Estate
shall be stored in clearly marked, tightly closed containers. No chemicals or chemical containers will
be disposed of on the Real Estate. Application of chemicals for agricultural purposes per
manufacturer's recommendation shall not be construed to constitute disposal.
Tenant shall employ all means appropriate to ensure that well or ground water
contamination does not occur, and shall be responsible to follow all applicator's licensing
requirements. Tenant shall install and maintain safety check valves for injection of any chemicals
and/or fertilizers into an irrigation system (injection valve only, not main well check valve). Tenant
shall properly post all fields (when posting is required) whenever chemicals are applied by ground or
air. Tenant shall haul and spread all manure on appropriate fields at times and in quantities
consistent with environmental protection requirements. Tenant shall not dispose of waste oil, tires,
batteries, paint, other chemicals or containers anywhere on the Real Estate. Solid waste may not be
disposed of on the Real Estate. Dead livestock may not be buried on the Real Estate. Tenant shall
not use waste oil as a means to suppress dust on any roads on or near the Real Estate. No
underground storage tanks shall be placed or maintained on the Real Estate.
Tenant shall immediately notify Landlord of any chemical discharge, leak, or spill
which occurs on the Real Estate. Tenant shall assume liability and shall indemnify and hold
Landlord harmless for any claim or violation of standards, which results from Tenant's use of the
Real Estate. Tenant shall assume defense of all claims, except claims resulting from Landlord's
negligence, in which case each party shall be responsible for that party's defense of any claim. After
termination, Tenant shall remain liable for violations, which occurred during the term of this Lease.
S. REAL ESTATE AND PERSONAL PROPERTY TAXES. Landlord agrees to pay
all taxes, assessments, or other public charges levied or assessed by lawful authority against the Real
Estate. Tenant agrees to pay all personal property taxes, assessments, or other public charges levied
or assessed by lawful authority against the Tenant's personal property on the premises, during the
term of the Lease.
9. IMPROVEMENTS. Tenant may not make any improvements to the Real Estate.
10. RIGHT OF ENTRY AND INSPECTION. Landlord may enter the Real Estate at
any reasonable time for the purpose of consulting with Tenant, viewing the property, making repairs
or improvements, or for other reasonable purposes that do not interfere with Tenant's ability to carry
out regular farming operations.
11. ASSIGNMENT AND SUBLETTING. Tenant shall not lease or sublet any part of
the Real Estate nor assign this Lease to any other person without the prior written permission of
Landlord. If Landlord sells or otherwise transfers title to the Real Estate, Landlord will do so subject
to the provisions of this Lease.
12. INSURANCE. Tenant shall, at its own expense, procure and maintain
comprehensive public liability insurance in the amount of not less than $1,000,000 per occurrence
and $2,000,000 annual aggregate. Such insurance shall cover liability arising from the acts or
omissions of Tenant, its employees and agents, and shall protect Landlord against such claims,
damages, costs or expenses on account of injury to any person or persons, or to the property of same,
by reason of such casualty, accident or other occurrence on or about the Real Estate during the term
of this Lease. Certificates or copies of said policies, naming Landlord as an additional insured, and
providing for thirty (30) days' advance notice to Landlord before cancellation, shall be delivered to
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Landlord within no later than commencement of the Lease term. A renewal certificate shall be
provided to Landlord prior to expiration of any policy. Landlord shall provide no such insurance for
the property or activities of Tenant, its agents or employees.
13. INDEMNIFICATION. Tenant shall take possession of the Real Estate subject to
the usual hazards of operating a farm and assumes all of the risks of accidents to the Tenant, its
employees and agents, in pursuance of the farming operation, and in performing repairs or
improvements or other actions pursuant to this Lease. Except as to any negligence of Landlord or its
agents, Tenant will protect, indemnify, and save harmless the Landlord from and against any and all
loss, costs, damage, and expenses, including but not limited to reasonable attorneys' fees and
expenses, occasioned by, or arising out of, any act or omission causing or inflicting injury and/or
damage to any person or property, happening or done in, upon, or about the Real Estate, and due
directly or indirectly to the use or occupancy thereof, or any part thereof, by Tenant or any person
claiming through or under Tenant. The provisions of this section shall survive the termination or
expiration of this Lease for any reason.
14. MINERAL RIGHTS. Landlord reserves all rights to any minerals on or underlying
the Real Estate.
15. YIELDING POSSESSION. Tenant agrees that on termination of the Lease, Tenant
will yield possession of the Real Estate to Landlord without further demand or notice, in as good
order and condition as at the beginning of the Lease term. Loss by fire, tornado or forces beyond
Tenant's control and ordinary wear and tear are excepted.
16. RELATIONSHIP OF PARTIES. Nothing in this Lease shall, or shall be deemed
or construed to, create or constitute any joint venture, partnership, agency, employment, or any other
relationship between Landlord and Tenant nor to create any liability for one party with respect to the
liabilities or obligations of the other party or any other person.
17. DEFAULT; REMEDIES. If Tenant fails to observe any term or condition of this
Lease, including but not limited to the payment of rent, it shall be in default of this Lease, and
Landlord may then exercise any and all legal remedies available under applicable law. In the event
of default Tenant shall be liable for any and all damage or loss suffered or incurred by Landlord,
including but not limited to reasonable attorneys' fees and expenses incurred in connection with the
exercise of any right or remedy by Landlord. Waiver of any default shall not be construed as a
waiver of any other or subsequent default.
18. NOTICES. Any notice under this Lease shall be in writing and shall be delivered in
person, by overnight delivery service, or by United States certified mail, postage prepaid, and
addressed as set forth on first page hereof. Delivery of notice shall be deemed to occur (i) on the date
of delivery when delivered in person, (ii) one (1) business day following deposit for overnight
delivery to an overnight delivery service which guarantees next day delivery, or (iii) three (3)
business days following the date of deposit if mailed by United States certified mail, postage prepaid.
Either party may change its address for the giving of notice by any method provided for in this
paragraph.
19. CAPTIONS. All captions, headings, or titles in the paragraphs or sections of this
Lease are inserted only as a matter of convenience and/or reference, and they shall in no way be
construed as limiting, extending, or describing either the scope or intent of this Lease or of any
provisions hereof.
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20. ENTIRE AGREEMENT; MODIFICATION. This Lease represents the entire
agreement between the parties, superseding all prior or contemporaneous discussions, representations,
promises or agreements between the parties. This Lease may be modified only in a written
instrument signed by both parties.
21. MISCELLANEOUS. Time is of the essence in the observance and performance of
the terms of this Lease. Words or phrases herein, including the acknowledgments below, are to be
construed as in the singular or plural and as the appropriate gender, according to the context.
22. BINDING EFFECT. This Lease is binding on the parties and their respective heirs,
personal representatives, successors and assigns.
APPROVED:
LANDLORD:
City of W erloo, Iowa, acting by and
through Waterloo City ouncil
By: �' J Date: J LL-+.�A. I toy 2..otif
Ernest G. Clark
Mayor
APPROVED:
TENANT:
By:
David Martinson
Tenant
Date: — 14
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