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services when any special status species is seen -such as when a California Tiger Salamander was observed on the site. Wetlands Research Associates may also use its professional expertise to modify the intensity and timing of grazing to take into account seasonal variations in rainfall, grass propagation, and other factors. The lessee must comply with such direction within 72 hours of being advised of any needed modifications, including reducing the number of cattle below 22, or shortening the time period when grazing is allowed. Because the lessee owns property directly adjacent to the proposed pastures, the cattle do not need to be transported to the site via Happy Valley neighborhood streets, or service roads on the golf course. This adjacency also allows for a faster response to any changes in grazing required by the consulting rangeland manager (for example, if it is determined that fewer than 22 cattle should be on site, the lessee can easily move cattle back to his adjacent property). At this time, the pastures proposed to be leased require capital improvements to upgrade the fence posts and wire on the far eastern side of the property to properly contain cattle. The terms of the proposed lease require the lessee to undertake these improvements at his expense, and maintain all fencing throughout the term of the lease. The proposed lease has a five (5) year term, with no rent charged for the first three (3) years in recognition of both the required capital improvements, as well as the significant grazing restrictions. For the fourth and fifth years of the lease, it is proposed that the lessee be charged one-half of the animal unit month (A.U.M.) rate charged by the San Francisco Public Utilities Commission for its watershed properties leased for grazing in Alameda County. This is expected to generate about $1,000 per year. The proposed A.U.M. rate reflects the many restrictions on the use of the pastures, as well as the uncertainty arising from the ability of the consulting rangeland manager to modify the number of cattle and time period when grazing is allowed. As the pastures are adjacent to active golf course play areas, and crossed by the City's hiking and equestrian trail, the terms of the proposed lease require the lessee to acknowledge impacts to the cattle that might arise from stray golf balls, golf course irrigation and fertilization, hikers, and other public access into the leased area. Additionally, in conjunction with the consulting rangeland manager, the City's Parks Maintenance Superintendent may delay the lessee's ability to start grazing the leased area if a particularly wet winter has left the hiking trail subject to extensive erosion from cattle. Submitted by: James W. Wolfe Director of Parks & Community Services ~ ~~ Michael Roush City Attorney Attachment: 1. Proposed Grazing Lease Fiscal Review: avi P. ulver Finance Director Ap ov d y: Nelson Fi Iho City Manager Page 3 of 3