HomeMy WebLinkAboutCC 2025-04-22 Amendment to the Firearms Range License AgreementItem 9.c.
MEMORANDUM
TO: City Council
FROM: Michael T. Martinez, Chief of Police
BY: Greg Pierce, Police Sergeant
SUBJECT: Second Amendment to the Police Department Firearms Range
License Agreement
DATE: April 22, 2025
RECOMMENDATION:
1) Authorize the City Manager to execute the Second Amendment to the License
Agreement with HIOJT Ranches to provide for the use of real property for a Police
Department Firearms Range, subject to any minor, technical, or non-substantive changes
as approved by the City Manager in consultation with the City Attorney; and
2) Find that entering into the proposed Second Amendment to the License Agreement
(the “Second Amendment”), included as Attachment 1 and incorporated herein, is not a
project subject to CEQA because it has no potential to result in either a direct, or
reasonably foreseeable indirect, physical change in the environment. (State CEQA
Guidelines, §§ 15060 (c)(2) and (3), 15378.) Alternatively, the signing of the proposed
amendment is exempt from CEQA on the basis that it can be seen with certainty that
there is no possibility that the activity in question may have a significant effect on the
environment. (State CEQA Guidelines, § 15061, subd. (b)(3).).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed Second Amendment extends the License Agreement until June 30, 2030,
and provides for an initial annual rent of $5,000, representing an increase of
approximately $497.96 from the current annual rent. Subsequent rent increases will
remain at the historical rate of 3% annually. All other terms of the Agreement will remain
the same. Funding for the proposed use is incorporated into the FY 2025-27 Budget.
BACKGROUND:
In July 1998, the City entered into a License Agreement (the “Agreement”) with Arroyo
Ranch Company for a Police Department firearms range. The Agreement has been
renewed every five years since 1998. On May 7, 2014, the Arroyo Ranch Company sold
the property to HIOJT Ranches, which agreed to assume the Agreement. The current
term will expire on June 30, 2025. The proposed Second Amendment will extend the
Page 37 of 98
Item 9.c.
City Council
Second Amendment to the Police Department Firearms Range License Agreement
April 22, 2025
Page 2
Agreement for an additional five years until June 30, 2030 , and will increase the license
fee by 3% annually.
ANALYSIS OF ISSUES:
The availability of a firearms range within close proximity to the city has been of significant
value to the Police Department. It allows for an efficient and effective training and
qualification program for the use of firearms and other less lethal means, while the close
proximity reduces excessive overtime. Other available facilities necessitate a longer
commute, such as the Sheriff’s Office on Kansas Avenue north of Cal Poly or the Diablo
Canyon facility located deep within the Diablo Canyon Power Plant grounds. These
locations can result in unnecessary overtime and time away from the city. The location of
the firearms range allows some activities to be completed on -duty without generating
overtime.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Authorize the City Manager or designee to execute the Second Amendment
subject to any minor, technical, or non -substantive changes as approved by the
City Manager in consultation with the City Attorney;
2. Do not approve the Second Amendment; or
3. Provide other direction to staff.
ADVANTAGES:
Approval of the Second Amendment will enable the City to provide continuity in the Police
Department’s Firearms Training Program at a reduced overtime cost.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
The signing of this Second Amendment is not a project subject to the California
Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct,
or reasonably foreseeable indirect, physical change in the environment. (State CEQA
Guidelines, §§ 15060 (c)(2) and (3), 15378.) Alternatively, the signing of this amendment
is exempt from CEQA on the basis that it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment.
(State CEQA Guidelines, § 15061, subd. (b)(3).)
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Page 38 of 98
Item 9.c.
City Council
Second Amendment to the Police Department Firearms Range License Agreement
April 22, 2025
Page 3
ATTACHMENTS:
1. Second Amendment to License Agreement dated April 22, 2025.
2. Amendment to License Agreement, dated July 28, 2020, and License Agreement,
dated July 1, 2015.
Page 39 of 98
ATTACHMENT 1
1
SECOND AMENDMENT TO THE LICENSE AGREEMENT
This Second Amendment to the License Agreement is made and entered into this 22nd
day of April 2025, by and between the City of Arroyo Grande, a municipal corporation of
the State of California ("City"), and HIOJT Ranches, ("Owner"). City and Owner are
sometimes referred to herein as a "party," or collectively as the "parties."
RECITALS
WHEREAS, the parties entered into a License Agreement (“Agreement") for the use of a
portion of real property (APN: 048-191-01) belonging to Owner as a Police Department
firearms range on July 1, 2015, and extended the Agreement through an amendment on
July 28th, 2020; and
WHEREAS, the Agreement expires on June 30, 2025; and
WHEREAS the parties wish to extend the Agreement and amend certain terms thereof
as set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter
set forth, the parties hereby agree as follows:
1. The Agreement will be extended for an additional five years and will remai n in effect
until June 30, 2030.
2. In consideration of the use of said real property above described, City agrees to pay
Owner annually as follows:
a. $5,000 due August 1, 2025;
b. $5,150 due July 1, 2026;
c. $5,304.50 due July 1, 2027;
d. $5,463.64 due July 1, 2028;
e. $5,627.55 due July 1, 2029.
3. Except as modified herein, all terms and conditions of the Agreement shall remain
unchanged.
[Signatures on following page.]
WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.
Page 40 of 98
SECOND AMENDMENT TO THE LICENSE AGREEMENT
PAGE 2
CITY OF ARROYO GRANDE: HIOJT Ranches:
By: By:
Matthew Downing, City Manager Todd Talley, Manager
ATTEST:
Jessica Matson, City Clerk
APPROVED AS TO FORM:
Isaac Rosen, City Attorney
Page 41 of 98
AMENDMENT TO LICENSE AGREEMENT
This Amendment to License Agreement is made and entered into this 28th day of July, 2020, by
and between the City of Arroyo Grande, a municipal corporation of the State of California("City"),
and HIOJT Ranches, ("Owner"). City and Owner are sometimes referred to herein as a "party,"
or collectively as the "parties."
RECITALS
WHEREAS, the parties entered into a License Agreement("Agreement")for the use of a portion
of real property (APN: 048-191-01) belonging to Owner as a Police Department firearms range
on July 1, 2015; and
WHEREAS, the Agreement expired on June 30, 2020; and
WHEREAS the parties wish to revive the Agreement and amend certain terms thereof as set
forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set
forth, the parties hereby agree as follows:
1. The Agreement is hereby revived and shall remain in effect until June 30, 2025.
2. In consideration of the use of said real property above described, City agrees to pay
Owner annually as follows:
a. $4,000 due August 1, 2020;
b. $4,120 due July 1, 2021;
c. $4,243.60 due July 1, 2022;
d. $4,370.91 due July 1, 2023;
e. $4,502.04 due July 1, 2024.
3. Except as modified herein, all terms and conditions of the Agreement shall remain
unchanged.
Signatures on following page.]
1
ATTACHMENT 2
Page 42 of 98
WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.
CITY OF ARROYO GRANDE: HIOJT Ranches:
By: By:
Caren Ray Rus gym, Mayor Todd Talley,
ATTEST:
Kelly W- mord, City Clerk
APPRC E STO FORM:
i/
k %-`
Timothy J. Carmel, City Attorney
2
Page 43 of 98
LICENSE AGREEMENT
THIS LICENSE AGREEMENT entered into this 1st day of July 2015 between the City
of Arroyo Grande, California, a municipal corporation, hereinafter termed "CITY" and HIOJT
Ranches, P.O. Box 360, Arroyo Grande, California hereinafter sometimes termed "OWNER."
WHEREAS, City desires to obtain the use of certain hereinafter described real
property belonging to Owner for the use of a firearms range for its authorized Police Officers
and other authorized personnel, and;
WHEREAS, Owner is willing to permit use of said real property for such purpose
subject to certain conditions.
NOW, THEREFORE, it is agreed by and between City and Owner as follows:
1. Owners does herewith give to City a license to use the hereinafter described
real property for the purpose of building, maintaining and operating thereon a firearms range
which shall be used only when and by personnel duly authorized by City. The parties agree
that the license granted herein is irrevocable in nature subject only to termination as set forth
in this agreement.
1. The property upon which said firearms range is to be located is described as
follows:
An area of approximately 140 feet by 400 feet in size for pistol range purposes which
is located in that certain 700 acre portion of Rancho Santa Manuela as shown in the
map being Parcel 1 of Assessor's Parcel #048-191-01 in the County Recorder's Office
of the County of San Luis Obispo. Said_area is located along the south side of the
public road now called 'Huasna Road' approximately 4 miles East of the City of Arroyo
Grande as shown on the attached map. The actual location of said area has been
mutually agreed upon by the parties hereto, and located upon the ground by the
placing of stakes.
2. In consideration of the use of said land above described, City agrees to pay
Owner annually as follows:
a. $3,250.00 due July 1, 2015
b. $3,347.50 due July 1, 2016
c.3,447.93 due July 1, 2017
d. $3,551.36 due July 1, 2018
e. $3,657.90 due July 1, 2019
1
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3. Term
The term of this agreement shall be from July 1, 2015 through June 30, 2020.
4. This agreement may be terminated by either of the parties hereto by the giving
to the other party of one hundred eighty (180) days prior written notice.
Upon termination of this Agreement, City shall remove any improvements which it has
placed upon the property. Any such improvements shall be removed within the 90 day
period. To the fullest extent practicable, City shall further restore the premises to the
condition which existed as of the date prior to July 1, 1998. Additionally, the City shall
remove any contaminants from the firing range site as required by State or Federal law to the
extent such contaminants are the result of City's use of Owner's property as a firing range.
5. City represents that it has examined the property and is familiar with the
condition thereof. This Agreement is made upon the express condition that Owner is to be
free from all liability and claim for damages by reason of any injury to any person or persons,
including City, or property of any kind whatsoever while in, upon or in any way connected with
the said premises, or the access thereto during the term of this agreement or any extension
hereof, or any occupancy hereunder, City hereby covenants and agrees to indemnify and
save harmless Owner from all liability, cost, loss and obligations on account of or arising out
of any such injuries or losses however occurring. The foregoing shall not apply to any
liability, loss, claim, demand, damage or injury either intentionally or negligently caused by
Owner or Owner's guests or invitees. City further agrees to have its policy of public liability
and property damage insurance endorsed to name Owner as an additionally named insured
to protect Owner against any liability to the City or public incident to the use of or result in
from any accident occurring in or about said premises. This policy shall insure the contingent
liability of Owner.
6. No improvements shall be placed upon said premises without prior written
consent of Owner.
7. Access to the said premises is to be by an existing road extending from the
HUASNA Road" approximately 2,640 feet in length. The parties recognize that City may
wish to make some improvements to the roadway for the purpose of better access. Any
substantial improvements shall be made only with the prior written consent of Owner.
8.In order to ensure safety and limit potential misuse and/or damage to the
property, the parties agree that the City shall have exclusive use of the described real
property for public safety training purposes, as set forth in Section 1 of this Agreement. The
2
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parties further agree that the Chief of Police of the City of Arroyo Grande shall have the
authority to approve any use of the police pistol range facility by guests, invitees or any other
persons. Any such permission to use the facility,must be approved in advance, and may only
be authorized by the Chief of Police or his designee. "
There is presently a gate at the entrance to the canyon. The gate is to be kept closed
and locked, excepting only for actual passage through the gate. It is the intent of the parties
that the gate will be kept locked whether or not the range is or is not in actual physical use at
any particular time.
IN WITNESS THEREOF, the parties hereto have signed this Agreement the day and
year first above written.
CITY OF ARROYO GRANDE HIOJT Ranches
BY Bv:
Ji Hill, Mayor Todd Ta
Its: VAe-l''•-9-e-
re
Dat . 4i-23-2o(5
Date: SA s
Attest:
Kelly` et re,lCity Clerk
Date: (D -2 3 2015
As Approved to form:
Heather Whi am, City Attorney
Date: (0- 23 - Z015
3
Page 46 of 98
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