Request for Proposals
City of Hot Springs – Livestock Grazing, Storing, Feeding lease
at the Hot Springs Municipal Airport Property
The City of Hot Springs, South Dakota, will accept written proposals for the utilization of areas described as A & B for the purpose of livestock grazing, storing and/or feeding at the Hot Springs Municipal Airport property located at 27858 US Hwy 385. The two areas are identified and defined as follows: (map available upon request)
(A) Area A - North Pasture containing approximately 75 +/- acres
(B) Area B - South Pasture containing approximately 130 +/- acres
These livestock utilization areas are owned by the City of Hot Springs and designated as Municipal Airport property Area A-North Pasture and Area B-South Pasture. Offeror is encouraged to visit the airport pasture properties represented in this RFP to make an independent assessment of the suitability for the planned utilization, before presenting their livestock grazing, storing and/or feeding lease sealed-bid offer.
The Respondent may bid on either pasture portion (A or B, or both pastures A+B). The base term shall begin as soon as agreed by both parties and extend thru 12/31/2020. There will be an option to renew each year for up to four additional years, if agreed to by both parties.
Scope of Lease terms offered: Lessee shall have exclusive right to graze, store and/or feed livestock on approved pasture areas (A or B, or both pastures A+B) of the leased premises. The livestock utilization activities will take place in the areas outside the wildlife fence and herein referred to as Area A - North Pasture (75 +/- acres) or Area B – South Pasture (130 +/- acres). To comply with FAA requirements, no stationary equipment will be allowed to be stored on the leased premises.
Lessee would be responsible for all repairs and maintenance to all fencing within and surrounding the leased property (A or B, or both pastures A+B). The City of Hot Springs will retain ownership of all fencing improvements installed on City of Hot Springs property upon termination, conclusion or non-renewal of lease term. In addition, the City retains the right to remove, move, or adjust the boundaries of said fences pursuant to any future FAA compliance requirement or as may be approved by the City Council.
Lessee shall maintain occurrence based commercial general liability insurance or equivalent form with a limit of not less than $1,000,000 for each occurrence. If such insurance contains a general aggregate limit, it shall apply separately to this Agreement or be no less than two times the occurrence limit. Such insurance shall add the City of Hot Springs and its employees as additional insured. Lessee shall maintain business automobile liability insurance with a limit of not less than $1,000,000 each accident. Such insurance shall include coverage for owned, hired, and non-owned vehicles. Lessee shall procure and maintain workers’ compensation and employers’ liability as required by South Dakota law.
The City may restrict or fully revoke the livestock grazing, storing and/or feeding rights with a sixty (60) day written notice to lessee in the event the PLS surface mining lease agreement becomes effective with BLM concurrence; or for compliance with any FAA requirement; or any purpose deemed necessary and approved by the City Council.
Respondent Requirements: Offeror shall present a fixed rate offer for the airport land lease inclusive of all expenses. The City is seeking an arrangement where the maximum monetary value can be derived from fees for the use of Airport pasture properties (A or B, or both pastures A+B) in accordance with FAA guidelines for the term of the contract, including any renewals.
To submit a proposal you must complete the sections below;
Proposer offers to pay the City of Hot Springs a fixed rate as indicated below (either 1,2 or 3):
1) per animal/ per day basis___________ Area A _______ Area B ______ Area A+B _______ 2) monthly-use basis___________ Area A _______ Area B ______ Area A+B _______ 3) per year/annum basis___________ Area A _______ Area B ______ Area A+B _______
Understanding the base duration of this agreement will be from as soon as possible 2020 thru Dec 31, 2020 and the following years will be for a full 365 days we propose you respond for both the base year and the first renewal option year.
1. Base year (1) Fixed rate offered [$_______________]
Describe any improvements in base year: _____________________________________________________________________________
2. Renewal option-Year two (2) 1/1/21-12/31/21 [$_______________]
Describe any improvements in year 2: _________________________________________________________________________________
The City of Hot Springs reserves the right to exercise each option year under the following conditions. An expectation of performing under the option years should not be assumed.
1. Budget authority for each option year
2. The contractor successfully performing the requirements of the contract
3. City Council approval to exercise the option year
Sealed Bid Proposals will be accepted at the office of the City Administrator until 5:00 p.m., Friday, April 17, 2020 303 N. River Street, Hot Springs, SD 57747. It is the intent of the City to open and review the sealed bids at the regularly scheduled City Council Meeting Monday April 20th, 2020 at 7:15 p.m. held at the Mueller Civic Center 801 S.6th St.
Published once at the total approximate cost of $70.38
Published: March 26, 2020