CC 2020-07-28_08h License Agreement_PD Firearms Range
MEMORANDUM
TO: CITY COUNCIL
FROM: MICHAEL T. MARTINEZ, CHIEF OF POLICE
BY: ZAK AYALA, POLICE SERGEANT
SUBJECT: CONSIDERATION OF AN AMENDMENT TO LICENSE AGREEMENT
WITH HIOJT RANCHES TO PROVIDE FOR THE USE OF REAL
PROPERTY FOR A POLICE DEPARTMENT FIREARMS RANGE
DATE: JULY 28, 2020
SUMMARY OF ACTION:
Approval of the Amendment to License Agreement between HIOJT Ranches and the
City of Arroyo Grande.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The amendment to license Agreement will provide for the continued use of real
property for a Police Department firearms range beginning July 28, 2020, through June
30, 2025, at a cost of $4,000.00 annually with an increase of 3% each year. Funding for
the proposed use is included in the FY 2020-2021 Budget.
RECOMMENDATION:
It is recommended the City Council approve the Amendment to License Agreement
with HIOJT Ranches for the use of real property for a Police Department firearms range
and authorize the Mayor to execute the Agreement.
BACKGROUND:
In July of 1998, a License Agreement with the Arroyo Ranch Company (the
“Agreement”) was entered into providing for the use of real property 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 has continued to honor the Agreement; however, the last term expired
on June 30, 2020.
ANALYSIS OF ISSUES:
The availability of a firearms range within close proximity of the City limits 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 and the
Item 8.h. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AMENDMENT TO LICENSE AGREEMENT WITH HIOJT
RANCHES TO PROVIDE FOR THE USE OF REAL PROPERTY FOR A POLICE
DEPARTMENT FIREARMS RANGE
JULY 28, 2020
PAGE 2
close proximity reduces the exposure to excessive overtime. Other available facilities
necessitate a long commute (the Sheriff’s Office on Kansas Avenue north of Cal Poly
San Luis Obispo, or the Diablo Canyon facility located deep within the Diablo Canyon
Power Plant grounds), which can result in unnecessary overtime. The location of the
firearms range allows some activities to be completed on-duty without generating
overtime.
The proposed Amendment revives the Agreement and provides for an initial annual rent
increase of approximately $350. Subsequent rent increases will remain at the historical
rate of 3% annually. All other terms of the Agreement will remain the same.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve the Amendment to License Agreement with HIOJT Ranches;
2. Do not approve the Amendment to License Agreement with HIOJT Ranches;
or
3. Provide direction to staff.
ADVANTAGES:
Approval of the Amendment to License Agreement 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:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s webpage in accordance with
Government Code Section 54954.2.
ATTACHMENT:
1. License Agreement dated July 1, 2015
Item 8.h. - Page 2
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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.]
Item 8.h. - Page 3
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WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.
CITY OF ARROYO GRANDE:
By:
Caren Ray Russom, Mayor
HIOJT Ranches:
By:
Todd Talley, General Partner
ATTEST:
Kelly Wetmore, City Clerk
APPROVED AS TO FORM:
Timothy J. Carmel, City Attorney
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ATTACHMENT 1
Item 8.h. - Page 5
~. i. I ,
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
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Item 8.h. - Page 6
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
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Item 8.h. - Page 7
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: "-----/ y-r' -----+-1------------Hill, Mayor
Date: Sr-/o8 /l S
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As -~;~~~ii6~form:
~~ Heaii,e( Whiam,City Attorney
Date: (p .. 2 3 -2.0I 5
3
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