HomeMy WebLinkAboutItem 6f - Amendment No. 1 to Grant Agreement with Friends of La Loma Adobe Item 6f
Department: Administration
Cost Center: 1005
For Agenda of: 7/15/2025
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official
SUBJECT: AMENDMENT NO. 1 TO GRANT AGREEMENT WITH FRIENDS OF LA
LOMA ADOBE
RECOMMENDATION
Authorize the City Manager to execute Amendment No. 1 to Grant Agreement with the
Friends of La Loma Adobe in a final form satisfactory to the City Attorney. (Attachment A)
POLICY CONTEXT
In 1998, the City Council approved a Community Partnership and Foundation Policy that
provided guidelines by which the City would support the activities of non -profit, public
benefit organizations in the community (Resolution No. 8862 (1998 Series)). The City of
San Luis Obispo currently has numerous community partnerships with organizations
advancing the arts, culture, history, and the environment.
DISCUSSION
Background
La Loma Adobe is a two-story structure located at 1590 Lizzie Street. The exact date of
original construction is unknown. It is particularly rare as a two-story adobe residence in
the City and one of only a few such adobes remaining in the State. Consequently, it has
significant architectural and historical value.
The property was deeded to the City in 1995 by the Bowden family and the City purchased
additional land to the east of the house which preserved the site and grounds associated
with the adobe. The structure has been vacant for over fifty years. The first structural
stabilization efforts were completed in 2011, and basic maintenance and security
continues today, but these approaches are insufficient to preserve the adobe in the long
term.
Through a partnership with the Friends of La Loma Adobe (FLLA) that was approved in
2017, significant efforts have been undertaken to re-establish the historic landscape and
grounds, undertake community awareness and events, gain a keener understanding of
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the adobe and its historicism through a Historic Resources Evaluation (Applied
Earthworks, 2021), and identification of rehabilitation measures for the adobe consistent
with The Secretary of the Interior’s Standards for the Treatment of Historic Properties
(National Park Service, 36 CFR 68, 1995) through a Historic Structures Report
(Architectural Resources Group, 2023).
Previous Council Action
In 2013, the City Council adopted the Reservoir Canyon Natural Reserve Conservation
Plan, which included La Loma Adobe within the boundary of the Reserve due to the
relationship between the structure, a naturally occurring perennial spring water source,
and the surrounding landscape.
In 2017, the City Council approved a Memorandum of Understanding between the City
and FLLA that established a formal relationship and set forth a framework for partnering
to further evaluate the historic significance of the adobe, identify an appropriate
preservation strategy, and engage with the neighborhood and community.
The 2023-25 Financial Plan’s Major City Goal for Economic Resiliency, Cultural Vitality &
Fiscal Sustainability specifically identified funding and support; see Strategic Approach #
1.4f.: “Continue to support preservation of the City’s adobes, including work on the La
Loma Adobe through a phased approach intended to ensure that the structure is ready
for active stabilization efforts by 2025.”
On February 6, 2024, the City Council approved a Grant Agreement with the Friends of
La Loma Adobe that provides for the disbursement of up to $100,000 and details a scope
of work that entails plans and engineering for structural stabilization, as well as plans for
historic feature treatment, visitor access, phasing of project priorities, and cost estimating
(Attachment B).
The 2025-27 Financial Plan’s Major City Goal for Open Space, Climate Action, and
Resilience directs continued effort in furtherance of the overall project; see work plan item
4e.: “In partnership with Friends of La Loma Adobe, complete boundary adjustment,
initiate structural stabilization of the adobe, and complete trailhead connect ion as part of
the Reservoir Canyon Natural Reserve.”
Current Status
The Friends of La Loma Adobe continue to make forward progress. Together with their
recent quarterly report, FLLA has requested a two-year extension of the current Grant
Agreement (Attachment C), noting that with the remaining balance of funds still available,
they will be able to complete the stabilization and seismic improvements planned for the
next phase of the project. During the current term, FLLA has completed plans and
engineering for structural stabilization on a pro bono basis, thereby preserving funding for
physical implementation work proposed to occur over the course of the next two years.
Stabilization of the east wall has already been installed. The City and FLLA, working
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together, are also making positive advancement towards resolving the lot line / boundary
matter, and staff anticipate approaching Council for direction on next steps by the end of
calendar year 2025. An amendment to the existing grant agreement, including an
extension of the term as contemplated herein, requires City Council approval per
paragraph 9.
Public Engagement
The recommendations contained in this report are the result of the extensive community
engagement process completed as part of both the 2023-25 and 2025 -27 Financial
Plans, including the Community Forum, Goal Setting Workshop, and Financial Plan
review City Council hearings, wherein ongoing work at La Loma Adobe has been
identified as a Major City Goal task.
CONCURRENCE
The Community Development Department has provided their concurrence , as well as the
City Attorney’s Office as to the form of the draft Amendment No. 1 to Grant Agreement .
ENVIRONMENTAL REVIEW
The draft Amendment No. 1 to Grant Agreement does not constitute a Project, in and of
itself, under the California Environmental Quality Act (CEQA), Section 15378. However,
the compliance with the Historic Resources Evaluation and Historic Structures Report,
described above, ensure that the physical stabilization and rehabilitation project is
consistent with the City’s Historic Preservation Ordinance, the guidelines set forth by the
State Historic Preservation Office (SHPO), and the Secretary of the Interior’s Standards
for the Treatment of Historic Properties. The stabilization and rehabilitation project is,
therefore, exempt from environmental review under the Class 31 exemption for historical
resource restoration/rehabilitation (CEQA Guidelines §15331.)
FISCAL IMP ACT
Budgeted: Yes Budget Year: 2023-24
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $100,000 - $70,178 N/A
State
Other:
Total $100,000 - $70,178 N/A
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Funding in the amount of $100,000 was identified in the 2023-25 Financial Plan to support
key steps leading towards the rehabilitation of the La Loma Adobe. The City Council
subsequently approved a Grant Agreement with FLLA and a purchase order was issued
in the amount of $85,000, with the remaining $15,000 identified in the Grant Agreement
for the City to hire a land surveyor to assist with the lot line / boundary matter , which has
since occurred. FLLA reports that $70,178 is anticipated to be remaining in their existing
purchase order and available for use during the 2025-27 timeframe for the next phase of
structural stabilization, if the recommended action of this Council Agenda Report is
approved.
ALTERNATIVES
Council may request changes to the draft Amendment No. 1 to Grant Agreement or
decide not to approve the Amendment. A decision not to approve would be
inconsistent with prior Council direction contained in the 2023 -25 and 2025-27 Financial
Plans. Should Council choose this option, staff would rescind the existing purchase order
encumbering the remaining grant funds.
ATTACHMENTS
A - Draft Amendment No. 1 to Grant Agreement
B - Grant Agreement
C - Friends of La Loma Adobe - Quarterly Report and Request for Extension
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GRANT AGREEMENT
FRIENDS OF LA LOMA ADOBE
This agreement dated ___________________________ is between THE FRIENDS OF LA
LOMA ADOBE, a California non-profit public benefit corporation (“FLLA”) and City of San Luis
Obispo, a California Municipal Corporation and Charter City (“City”) (jointly referred to as the
“Parties”) with reference to the following:
WHEREAS, FLLA has requested that City contribute to FLLA’s efforts to rehabilitate the La
Loma Adobe (“Adobe”), located at 1590 Lizzie Street, San Luis Obispo, by providing financial
support towards planning, design, specifications, and engineering for the stabilization and
rehabilitation of the Adobe at this location, and
WHEREAS, the City and FLLA have an established Memorandum of Understanding (2017) that
sets forth the relationship and mutual goals of both parties to rehabilitate the Adobe, thereby
serving both a public and municipal purpose, and
WHEREAS, addressing the long-term protection and stewardship of the Adobe is among the
City’s 2023-25 Major City Goals, and
WHEREAS, City has approved grant funding (the “Grant”) for the FLLA project in its 2023-25
Financial Plan pursuant to FLLA’s proposal, and
WHEREAS, City has determined that, ultimately, the Adobe and its surrounding grounds will
serve a broad spectrum of citizens interested in historic preservation, education, open space
protection, native and culturally appropriate landscape restoration, and passive recreational trail
use, while also serving as a vital community gathering place, and
WHEREAS, FLLA intends to prepare plans and specifications for the Adobe in a manner that is
consistent with the Secretary of the Interior’s Standards for Rehabilitation, State of California
Historic Preservation Office standards, the City’s Historic Preservation Ordinance and Historic
Context Statement, as well as the Historic Resource Evaluation (Applied Earthworks, 2021), the
Historic Structures Report (Architectural Resources Group, 2023) that have been prepared for the
Adobe.
NOW, THEREFORE, CITY and FLLA for and in consideration of the mutual benefits, promises
and agreements set forth herein, do agree as follows:
1. Planning for Rehabilitation of the Adobe
On or before June 30, 2025, FLLA shall complete plans, specifications, and engineering for 1.) the
structural stabilization of the Adobe and, 2.) the rehabilitation of the Adobe in accordance with the
selected period of significance identified in the Historic Resources Evaluation (2021) and the
rehabilitation treatments identified in the Historic Structures Report (2023) and the proposal made
by the firm Architectural Resources Group. The anticipated scope of work is attached herein as
Exhibit A
2. Grant Amount and Allowed Expenses
City agrees to pay to FLLA grant funds in the sum of $100,000, to be used to complete planning
for rehabilitation of the Adobe defined in Section 1. Funds will be allocated in two installments, as
follows:
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a. Installment # 1 will be in the amount of $85,000 to be used for the plans,
specifications, and engineering tasks described in Section 1, above, as well as
associated engineering elements such as mechanical, electrical, plumbing, and any
American Disability Act requirements.
b. Installment # 2 would be generated from a reserve of $15,000 held by the City to be
utilized as necessary to resolve the property line dispute described in Section 6. If
funds from the reserve remain after the dispute is resolved, then the City will grant
the remaining reserve to FLLA for purposes entirely to support further efforts
consistent with the purposes set forth in Section 1. Any such allocation to FLLA
under Installment # 2 is also subject to the conditions stated in Section 10 (Periodic
Reports and Financial Assurance).
Any amounts used by FLLA for purposes other than those stated in (a) and (b) above shall be
reimbursed to the City, subject to the terms of Paragraph 3 below, and any funds not expended by
FLLA by June 30, 2025, or as otherwise extended pursuant to Paragraph 9, shall be returned to the
City.
3. Use at Other Sites
If FLLA determines that rehabilitation of Adobe at the site specified, above, is impractical or
inadvisable for any reason, then FLLA may not use these funds for any other purpose without prior
written approval of City.
4. Fundraising Plan
The City’s payment of grant funds is intended to promote the subsequent implementation of the
physical rehabilitation of the Adobe. FLLA shall prepare, by June 30, 2025, a fundraising and / or
business plan that provides evidence of sufficient capacity-building to manage the rehabilitation and
identifies financial match prospects from donor groups that articulates a “best-guess” path to
completing the rehabilitation of the Adobe.
5. Ownership of Assets
City is the owner of the property and building. FLLA will prepare, or direct the preparation of,
stabilization and rehabilitation documents for the benefit and use of both the City and FLLA.
6. Property Line Dispute
City acknowledges that there currently exists a property line dispute between the City property at
1590 Lizzie Street and the adjacent property at 1580 Lizzie Street. As the property owner of the
Adobe, the City is the only entity with proper legal standing to resolve the dispute. Resolution of
the dispute is critical to the successful stabilization and rehabilitation of the Adobe, and City hereby
commits to use its best efforts to resolve the dispute in a timely manner, at its sole cost and expense.
City and FLLA acknowledge that failure to resolve the dispute in a timely manner may impede
FLLA’s ability to comply with the terms of this agreement, in which case City shall favorably
consider an extension of the timelines set forth herein, pursuant to Section 9. Nothing in this
Agreement shall be construed as an obligation to the City to resolve the dispute by any particular
date.
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7. Permits
FLLA shall apply for and obtain all necessary building and other related permits to construct the
stabilization and rehabilitation phases of the project in conformance with local, state, and federal
laws. City shall waive all City building and other related permit and processing fees applicable to
the project, unless timely building plan review necessitates City using an outside contractor; any
external costs borne by City for building and other related permit processing shall be at FLLA’s
expense. This agreement does not authorize any construction or otherwise alter or impact the
exercise of the City’s independent regulatory and land use authority, to the extent applicable.
8. Funding Source Recognition
FLLA will ensure recognition of the roles of the City in providing funding through this Agreement.
The City shall be identified as a funding source in all applicable publications, press releases, and
other promotional materials. In addition, FLLA will include a reference to the support provided
herein in all publications made possible with funds made available under this Agreement.
9. Amendments
The City and FLLA may amend this Agreement at any time by mutual agreement provided that
such amendments make specific reference to this Agreement, and are executed in writing, signed
by a duly authorized representative of each organization, and approved by the City Council. Such
amendments will not invalidate this Agreement, nor relieve or release the City or FLLA from its
obligations under this Agreement, except as expressly provided in writing in any subsequent
amendments.
10. Periodic Reports and Financial Assurance
The FLLA shall provide quarterly reports on both project progress and on the use of City funds.
These reports shall be due at the end of the first month after the end of the calendar quarter (i.e.,
January, April, July, and September). City reserves the right to request and receive copies of
invoices, account statements, or audits of FLLA’s financial records pertinent to the Adobe.
11. Assignment
The FLLA will not assign or transfer any interest in this Agreement without the prior written
consent of the City.
12. Conflict of Interest
No member of the City’s governing body and no other public official of such locality, who exercises
any functions or responsibilities in connection with the planning or carrying out of the project, will
have any personal financial interest, direct or indirect, in this agreement; and the FLLA will take
appropriate steps to assure compliance.
FLLA agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which includes maintaining
a written code or standards of conduct that will govern the performance of its officers, employees
or agents engaged in the award and administration of contracts supported by Federal funds.
13. Severability
If any provision of this Agreement is held invalid, the remainder of the Agreement will not be
affected thereby and all other parts of this Agreement will nevertheless be in full force and effect.
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14. Entire Agreement
This Agreement constitutes the entire agreement between the City and the FLLA for the use of
funds received under this Agreement and it supersedes all prior communications and proposals,
whether electronic, oral, or written between the City and the FLLA with respect to this Agreement.
15. No Agency or Employment
The FLLA is solely responsible for all activities supported by the Grant. Nothing in this Agreement
creates a partnership, agency, joint venture, employment, or any other type of relationship. The
FLLA shall not represent itself as an agent of the City for any purpose, and has no authority to bind
the City in any manner whatsoever. FLLA and all of its agents, representatives, or participants in
any manner in the performance of its obligations and duties hereunder, shall be employees,
independent contractors, or volunteers solely of FLLA. They shall not for any purpose be considered
employees or agents of the City.
16. Termination
The City Council may terminate this agreement, after a public hearing and upon ten (10) days
written notice to FLLA. Said termination shall be effective thirty (30) days after City mails notice
of termination of agreement to FLLA. Any remaining funds and liabilities in excess of costs actually
incurred as of the date of notice of termination pursuant to Section 3 above shall revert to City upon
said termination.
17. Effect of Prior Agreement
The terms of the Memorandum of Understanding (MOU) executed between the Parties on May 24,
2017, including without limitation the terms of indemnification and insurance requirements, remain
in full force and effect. To any extent the MOU is inconsistent with this Agreement, this Agreement
prevails. A true and correct copy of the MOU is attached hereto as Exhibit B and incorporated herein.
18. Notice
For purposes of notice under this agreement, all notices shall be considered effective upon being
sent by certified mail to the following addresses:
City:
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Manager
FLLA:
The Friends of La Loma Adobe
P.O. Box 13253
San Luis Obispo, CA 93406
Attn: President, Board of Directors
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CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:
Derek Johnson, City Manager
APPROVED AS TO FORM:
By:
J. Christine Dietrick, City Attorney
THE FRIENDS OF LA LOMA ADOBE, A CALIFORNIA NON-PROFIT CORPORATION
By:
Robert Jorgensen, President
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Exhibit A
La Loma Adobe
Scope of Work 2023 – 2025
The Friends of La Loma Adobe (FLLA) operates under a Memorandum of Understanding
(MOU) with the City of San Luis Obispo who is the owner of the adobe and property. This
MOU recognizes the importance of this historic and cultural resource and appreciates that
FLLA has the interest and ability to cooperate on these goals. To further those goals, FLLA
has commissioned an Historic Resource Evaluation, an Historic Structures Report, an
archaeological study using remote-sensing technology and conducted many small repair and
stabilization projects on the building.
As part of their biannual budget process, in 2023, the City Council allocated $100,000 toward
the rehabilitation and adaptive reuse of the adobe. The intent of that allocation was to bring
the adobe project to a “shovel-ready” condition. Presuming the City resolves the standing
property-line dispute, FLLA intends to meet that goal by performing the following, listed in
order of importance:
Structural Stabilization.
Prepare an engineered design, analysis & construction documents for the structural
stabilization and rehabilitation of the adobe. This includes evaluation of the structural systems
in relation to Building Code requirements, basic loads from people and furniture in the
building as well as seismic loads.
Historic Feature Treatment.
Produce design and construction documents for the treatment of the existing historic fabric
and features of the building. This includes evaluation of each surface, interior and exterior
including walls, ceilings, and floors for its ability to tell the story of the adobe and to
accommodate future uses of the building.
Visitor Access.
Articulate the site and building design to provide visitor access.
Project Priorities.
Identify a priority list of elements of the project which responds to a logical sequence of
construction and budget limitations.
Cost Estimate.
Calculate an estimate of the probable construction cost of the various elements or phases of
construction.
During this two-year process, FLLA intends to raise funds through donations and grants for
the construction and it is likely that FLLA will return to the City Council for additional funds
and fee waivers, as may be allowable.
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Exhibit B
La Loma Adobe
Copy of Memorandum of Understanding
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AMENDMENT NO. 1 TO GRANT AGREEMENT
THIS AMENDMENT TO GRANT AGREEMENT is made and entered in the City of San Luis Obispo on
______________________________by and between the CITY OF SAN LUIS OBISPO, a municipal corporation,
herein after referred to as City, and Friends of La Loma Adobe, a non-profit corporation, hereinafter referred to as
FLLA.
WITNESSETH:
WHEREAS, on March 3, 2024, the City entered into a Grant Agreement with FLLA for planning,
engineering, and structural stabilization of the historic La Loma Adobe , among other tasks (“Agreement”); and
WHEREAS, FLLA has responsibly completed tasks pursuant to the approved scope of work associated with
the Agreement, including pro bono efforts, while preserving funding for subsequent tasks that can be completed during
an additional two-year term.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties hereto agree as follows:
1. The Agreement is hereby amended to extend the term until June 30, 2027 to allow FLLA to complete
the tasks set forth in the Agreement using the remaining grant fund ing.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first written above.
CITY OF SAN LUIS OBISPO
By: ____________________________________
Mayor
By:_____________________________________
City Attorney
By:_____________________________________
City Clerk
FRIENDS OF LA LOMA ADOBE
By: _____________________________________
President
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Friends of La Loma Adobe
Quarterly Report on 2023-25 City Grant
January 1--March 31, 2025
And Request for Extension to June 30, 2027
The winter quarter allowed time for our structural engineer to consult with experts on fire
protection, electrical service, and HVAC utilities at a cost of $4,000. We also met with City
Building officials to finalize what would be required for a public-serving building that would not
include a residence. We also received professional construction-cost projections for historic
structures ($2,020 invoice). With that data, we produced comprehensive projections of milestone
stages to complete the entire project. And we examined the title history of the survey error for
the La Loma easement. The Grant balance is shown below.
For Spring 2025 (April through June) we held a retreat April 16 to reach consensus on elements
of our required Business Plan, including financing, landscaping, and user-programming post-
restoration.
We also are managing two physical projects. First, we finally were able to hire an experienced
historic contractor to repair the leaning wall we discovered in the fall. That project to shore up
the east wall of rooms 107-108 was completed April 23 at a cost of $5,316.
Second, our final “shovel ready” project will be launched (but not completed this quarter) to
conduct an archeological excavation below the oldest rooms. While not included in our original
planning, this is a necessary step to ensure we meet City permitting and CEQA requirements
before beginning to restore the building. It will also be the only chance to peer under our floors
for clues about how the Adobe residents lived and to check on the stability of the early rock
foundations of what later became a two-story structure. Planning ahead, we have budgeted this
quarter for the necessary floor access, pending City approval. Carefully removing and storing the
floor boards is estimated at $3,500.
We received three reputable archeological bids at our deadline in early April, and each aligned
work effort and budget and to meet our cap of $25,000. However, the complexities of meeting
approval requirements assure that this project would spill over into the 2025-27 budget cycle,
beyond the Grant period ending June 30, 2025, and contributing to our need to request a Grant
Extension.
Notice of Remaining Balance
The first installment of the 2023-25 grant was finally deposited in our account in June, 2024.
This delay had an upside: With Bob Hill’s approval we used the time available to prepare
construction drawings pro bono for detailed work that we had expected to hire consultants to
complete under the grant. That task is now completed.
During this “quiet phase” we also expanded our Board membership by 50%, adding considerable
talent in fundraising, financial planning landscape design. We have beefed-up construction
oversight and create a seasoned finance committee to produce cost projections, analyze available
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funding, recommend allocations, and monitor invoices and notices of completion. We also
rebuilt our Web page from scratch, adding a button including credit/debit cards for instant
donations, and we have built a social media presence, now posting weekly. The outreach
expansion had led to an increase in volunteers as well.
However, the slow start in being able to access the Grant budget, plus a set of “supply chain”
issues did impede identification and scheduling of contractors knowledgeable about historical
rehabilitation. These various delays meant we have not exhausted the $85,000 Grant award. By
June 30, we project a balance of $70,178.
Request for Grant Extension through the 2025-27 Budget Cycle
With the $70,000+ balance we would be able to complete stabilization and seismic
improvements planned for the next stage. This leads FLLA to request that our current City Grant
be extended through the 2025-27 Budget Cycle to fund the projects shown in Table 1, below,
projected to cost $71,900.
This figure does not include any estimate of project contingency funds; typically costed at 20%
of overall budget for labor and materials. Instead, FLLA will backstop for contingencies from its
own bank account that shows a balance of $37,827.21 as of March 31, 2025.
SLO City Grant Balance
March 31, 2025: $78.994.66
Projected Expenses (April 1—June 30, 2025
$5,316 Shoring Up East Wall
+$3,500 Selective floor removal for archeological excavations
$8,816 Total Spring Projected Expenditures
Projected Balance June 30, 2025:
$70,178.66
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Table 1: Projected Costs to Complete 2025-27 Stabilization/Setup
Commission Archeological study $ 25,000
Commission asbestos & lead paint assessment $ 5,000
Install electrical service $ 9,750
Installation of underground, 200-amp service panel, adobe
wall penetrations. Excavations to be overseen by archaeologists
Install water service $ 17,250
Install meter & underground lines to strategic locations
Install wastewater line $ 9,800
Install underground line to restroom site; no hookup.
Install security systems $ 3,000
Install lights & cameras with WIFI connection
Repair/improve fence around adobe $ 1,500
(With the new security systems, can the fence be removed?)
Construction documents Pro Bono
Plans and specifications for the structural & utility aspects of
the project complete & submit to the Building Department
Total Projected Costs 2025-27 $ 71,300
RSV:REJ 4/24/25
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