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Agenda 05/24/2022 Item #16D 1 (Caracara Prairie Preserve Cattle Lease Agreement 2021-2022 & 2022-2023)05/24/2022 EXECUTIVE SUMMARY Recommendation to approve and authorize a reduction of $1,968.83, per lease year totaling $3,937.66, over two (2) years for the Caracara Prairie Preserve Cattle Lease Agreement 2021-2022, and 2022-2023, rent payment with Labelle Ranch, Inc., under the Conservation Collier Program. (Caracara Prairie Management Fund 674) OBJECTIVE: To reduce the annual cattle lease rent payment for 2021-2022, and 2022-2023, at Caracara Prairie Preserve in response to a boundary fence replacement project requiring the temporary removal of cattle from the property. CONSIDERATIONS: The Caracara Prairie Preserve Cattle Lease Agreement with Labelle Ranch, Inc. was approved by the Board of County Commissioners (Board) (Agenda Item #16D9) on January 8, 2019. The agreement commenced on March 1, 2019, for a term of five (5) years with an option to renew for two (2) additional terms of one year. In the agreement, the lessee is responsible for paying an annual rent payment of $7,875 for grazing up to thirty-five (35) Animal Units (AU) within the preserve as well as providing an annual mowing service of 205 acres. Cattle grazing on the Caracara Prairie Preserve is a land management tool utilized to maintain habitat conditions for imperiled wildlife species including the Florida panther, Florida gopher tortoise, Florida sandhill crane, and crested caracara. The Caracara Prairie Preserve boundary is demarcated with a barbed wire fence. The western boundary of this fence was constructed by the previous owner of the prope rty more than twenty years prior to the Collier County acquisition in 2007 to contain cattle and provide site security. In the 1980s, the original fence line was constructed using atypical materials including lighter pine stumps, live cabbage palm, slash pine trunks, and recycled wood boards with minimal to no management of the vegetation and frequent patch repairs that added additional strands of barbed wire and atypical supports. Following acquisition, the previous property owner retained the cattle lease on the Conservation Collier Preserve from 2007-2019 and continued the historic maintenance methods to the aged fencing per the maintenance terms of the lease. In 2019, the County entered into a lease with a new cattle lessee. Labelle Ranch, Inc. As a result of age and damage from natural events, the western boundary fence line has deteriorated significantly beyond a maintenance stage for repair, and no longer effectively contains cattle or provides site security despite numerous repair attempts by the current cattle lessee and County staff over the years. Throughout the fence project replacement planning and solicitation process from December 2021 to March 2022, the lessee responded to numerous instances of cattle escaping through the deteriorated boundary fence and provided fence repairs where possible. On February 8, 2022, the lessee was served with an official warning from the Lee County Sheriff’s Office for repeated failure to contain the cattle with fines levied for subsequent violations or reports of un-contained cattle. Upon receiving the official warning and with no way to ensure that the violation would not occur again given the existing fence deterioration, the lessee hired staff to round up all cattle from the preserve, transport cattle to an o ff-site premise, and provide supplemental feeding to sustain the cattle now placed in a temporary location until the boundary fence replacement project could be completed. As it was not the County’s intent to have the lessee be responsible for replacing the fence, only maintaining, and the County and the lessee knew of the condition of the fence prior to entering into the lease, staff solicited bids to remove and replace the fence in 2019 and 2020 to enhance site security and improve safety for preserve wildlife, however quotes received were higher than the allotted budget. In December of 2021 staff implemented a boundary fencing project to solicit additional quotes for the replacement of the western boundary fence. A total of five (5) solicitation attempts produced three (3) 16.D.1 Packet Pg. 1124 05/24/2022 bids, and a selection was made of the lowest bidding vendor in March 2022. The fence replacement project included the removal of the 40-year-old historic fencing materials and patch areas and replaced it with a 5-strand fence of standard specifications and materials with vegetation removal. Maintenance of the new fence will be done by the lessee in accordance with the lease. The fence replacement project at Caracara Prairie Preserve has been recently completed and the property is again capable of containing cattle and providing site security to the preserve and the fence is constructed to the standard specifications that will allow for maintenance and repairs to be successfully completed by the lessee as needed. Article 5 of the lease states that “Lessee must maintain all fencing and gates needed to contain cattle to the Lessor’s specifications. The Lessee has completed regular maintenance inspections and repairs since beginning the lease in 2019. Upon the next renewal of the cattle lease contract for Caracara Prairie Preserve in 2024, staff intend to clarify the language and terms of the maintenance responsibilities versus replacement responsibilities for lessee’s who take part in the bid selection process for future cattle lease opportunities. On February 22, 2022, Collier County staff received an electronic request from the lessee to reduce the annual lease payment in light of the unanticipated cost to Labelle Ranch, Inc., as the leased property was no longer able to contain cattle throughout the duration of the fence replacement project. As a response to the request and additional costs incurred by the lessee for the six (6) months between December 2021 and June 2022, staff is recommending a limited reduction of the annual rent payment for the 2021-2022 lease of $1968.83 and a limited reduction of the annual rent payment for the 2022 -2023 lease period of $1968.83. These values correspond to the per month rental value ($656.23) x six (6) months of impact due to fence condition across two (2) lease periods of March 1, 2021 - February 28, 2022, and March 1, 2022 - February 28, 2023. FISCAL IMPACT: Rent under the current lease agreement generates revenue of $7,875.35 per year for the Conservation Collier Program for at least five (5) yea rs. The agreement also requires the cattle operator to mow 200 acres of improved pasture annually - a land management service currently valued at approximately $3,000. The mowing requirement has been completed for 2021-2022 by the lessee. The proposed adjustment to the cattle lease rent payment for 2021-2022 and 2022-2023 to $5,906.52 will result in a reduction of revenue of $1,968.83 annually or $3,937.66 over two (2) years. LEGAL CONSIDERATIONS: Article 5 of the Lease requires Lessee to maintain all fencing and gates. It does not require Lessee to replace the fencing and gates. This item is approved for form and legality and requires a majority vote for Board approval. -JAB GROWTH MANAGEMENT IMPACT: Management of Conservation Collier lands to support appropriate public access is consistent with and supports Policy 1.1.6 and Objective 1.3 in the Recreation and Open Space Element of the Collier County Growth Management Plan. RECOMMENDATION: To approve a 3-month reduction to the 2021-2022, and 2022-2023, rent payments due by Labelle Ranch, Inc. Prepared By: Molly DuVall, Senior Environmental Specialist, Parks and Recreation Division ATTACHMENT(S) 1. Caracara Prairie Preserve Cattle Lease (PDF) 2. Photos of Fence before and after replacement (PDF) 16.D.1 Packet Pg. 1125 05/24/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.1 Doc ID: 22101 Item Summary: *** This item continued from the April 26, 2022, BCC Meeting. *** Recommendation to approve and authorize a reduction of $1,968.83, per lease year totaling $3,937.66, over two (2) years for the Caracara Prairie Preserve Cattle Lease Agreement 2021 -2022, and 2022-2023, rent payment with Labelle Ranch, Inc., under the Conservation Collier Program. (Caracara Prairie Management Fund 674) Meeting Date: 05/24/2022 Prepared by: Title: Sr. Operations Analyst – County Manager's Office Name: Geoffrey Willig 05/02/2022 9:19 AM Submitted by: Title: Department Head – Public Services Department Name: Tanya Williams 05/02/2022 9:19 AM Approved By: Review: Facilities Management Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Public Services Department Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Parks & Recreation Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Operations & Veteran Services Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Parks & Recreation Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Public Services Department Geoffrey Willig PSD Level 1 Reviewer Skipped 05/02/2022 9:18 AM Public Services Department Tanya Williams PSD Department Head Review Completed 05/02/2022 10:20 AM County Attorney's Office Geoffrey Willig Level 3 County Attorney's Office Review Skipped 05/02/2022 9:18 AM Growth Management Operations Support Geoffrey Willig Additional Reviewer Skipped 05/02/2022 9:18 AM Office of Management and Budget Geoffrey Willig Level 3 OMB Gatekeeper Review Skipped 05/02/2022 9:18 AM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 05/18/2022 10:50 AM Board of County Commissioners Geoffrey Willig Meeting Pending 05/24/2022 9:00 AM 16.D.1 Packet Pg. 1126 16.D.1.aPacket Pg. 1127Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1128Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1129Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1130Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve 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Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1138Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1139Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1140Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1141Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1142Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1143Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1144Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1145Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1146Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1147Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1148Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.aPacket Pg. 1149Attachment: Caracara Prairie Preserve Cattle Lease (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) Caracara Prairie Preserve Fence Condition Prior to Removal and Replacement 16.D.1.b Packet Pg. 1150 Attachment: Photos of Fence before and after replacement (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.b Packet Pg. 1151 Attachment: Photos of Fence before and after replacement (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) Fence Condition After Removal and Replacement 16.D.1.b Packet Pg. 1152 Attachment: Photos of Fence before and after replacement (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction) 16.D.1.b Packet Pg. 1153 Attachment: Photos of Fence before and after replacement (22101 : Caracara Prairie Preserve One-Time Cattle Lease Payment Reduction)