HomeMy WebLinkAboutItem 6d - Amendment 1 to MOU with Friends of La Loma Adobe Item 6d
Department: Administration
Cost Center: 1005
For Agenda of: 8/18/2026
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 MEMORANDUM OF UNDERSTANDING WITH
FRIENDS OF LA LOMA ADOBE
RECOMMENDATION
Authorize the City Manager to execute Amendment No. 1 to Memorandum of
Understanding 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 th e 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, gai n a keener understanding of
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Item 6d
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 Trea tment 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 Un derstanding between the City
and FLLA (the “2017 MOU”) 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
(Attachment B).
The 2023-25 Financial Plan’s Major City Goal for Economic Resiliency, Cultural Vitality &
Fiscal Sustainability specifically identified funding and support for the La Loma Adobe;
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.
On July 15, 2025, the City Council approved Amendment No. 1 to the Grant Agreement,
which extended the current term of that agreement until June 30, 2027, while noting that
FLLA had completed the scope of work tasks in part through pro bono contributions,
thereby preserving grant funds for future stabilization efforts.
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 connection as part of
the Reservoir Canyon Natural Reserve.”
Current Status
The Friends of La Loma Adobe continue to make forward progress with physical
implementation work proposed to occur in the next year. Stabilization of the east wall has
already been installed. The City and FLLA, working 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 the calendar year.
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Item 6d
Amendment No. 1 to Memorandum of Understanding
Following regular project update conversations with FLLA, staff have determined th at an
amendment to the 2017 MOU is warranted and appropriate at this time in order for
physical stabilization efforts to move forward to the next phase of work. As noted in the
draft Amendment No. 1 to Memorandum of Understanding (“Amendment No. 1”), the
2017 MOU specifically anticipated that the “schedule for restoration, maintenance, and
repair shall be divided into stages. The first shall consist of grounds restoration and a
preliminary evaluation of rehabilitation of the Adobe. Additional stages may include
exterior and interior restoration, but would be subject to subsequent agreements .”
[emphasis added]
Further, the 2017 MOU enumerated work program tasks and milestones under the sub -
section “Stage I Grounds Restoration and Preliminary Evaluation .” Each of these tasks
have been satisfactorily addressed or completed, including: ongoing reporting,
fundraising, and community awareness; the incorporation of the Adobe and Property into
the Reservoir Canyon Natural Reserve; the procurement of a Historic Resource
Evaluation (Applied Earthworks, 2021) and Historic Structures Report (Architectural
Resources Group, 2023); preparation of construction plans, specifications, and
engineering for structural stabilization of the Adobe; and, completion and approval of a
building permit from the City for structural stabilization.
The draft Amendment No. 1, if approved, would allow FLLA to move forward with next
phases of site work, structural stabilization, and rehabilitation in accordance with the
approved building permit and construction plans, consistent with the Historic Struct ures
Report (Architectural Resources Group, 2023). FLLA intends to utilize a general
contractor and other construction specialists with experience working on adobe
structures, as well as construction management service. The draft Amendment No. 1
requires insurance, prevailing wage compliance, and other protective measures. It does
not, however, allow FLLA to move forward with subsequent phases that would activate
the Adobe and grounds as an Interpretive Center or other public uses. That step is
recommended to require an additional amendment to the 2017 MOU or separate lease
agreement, as well as any other applicable permitting or review that may be required .
Public Engagement
The recommendations contained in this report are the result of the extensive comm unity
engagement process completed as part of the 2025 -27 Financial Plan, including the
Community Forum, Goal Setting Workshop, and Financial Plan review City Council
hearings, wherein ongoing work at La Loma Adobe is identified as a Major City Goal task.
Public comment on the item can be provided to the City Council through written
correspondence prior to the meeting or through public testimony at the meeting.
CONCURRENCE
The Community Development Department has provided their concurrence as related to
consistency with the City’s Historic Preservation Ordinance.
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Item 6d
ENVIRONMENTAL REVIEW
The draft Amendment No. 1 to Memorandum of Understanding 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.)
Should draft Amendment No. 1 be approved, a Notice of Exemption will be filed thereafter.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $100,000 - $55,000 N/A
State
Federal
Fees
Other:
Total $100,000 - $55,000 N/A
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. The remaining $15,000 was 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 $55,000 is currently remaining and available for use
during the 2026-27 timeframe for the next phase of work, if the recommended action of
this Council Agenda Report is approved. The remaining City grant funds would be
combined with approximately $32,000 from FLLA, for a tota l $87,000. The total funding
is sufficient to implement Phase One and Phase Two activities, as shown at Exhibit A to
Amendment No. 1. Please note that no “Current Funding Request” is shown in the budget
table, above, because the total of the grant funds to FLLA were previously disbursed in
one lump sum.
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Item 6d
ALTERNATIVES
Council may request changes to the draft Amendment No. 1 to Memorandum of
Understanding or decide not to approve the Amendment. A decision not to approve
would be inconsistent with prior Council direction in the 2023-25 and 2025-27 Financial
Plans. Should Council choose this option, staff would work with FLLA to identify
alternative uses for the remaining grant funds.
ATTACHMENTS
A - Draft Amendment No. 1 to Memorandum of Understanding
B - 2017 Memorandum of Understanding
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AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING
BETWEEN THE CITY OF SAN LUIS OBISPO AND FRIENDS OF LA LOMA ADOBE
REGARDING THE LA LOMA ADOBE AND PROPERTY AT 1590 LIZZIE STREET
THIS AMENDMENT NO. 1 TO MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF
SAN LUIS OBISPO AND FRIENDS OF LA LOMA ADOBE REGARDING THE LA LOMA ADOBE AND
PROPERTY AT 1590 LIZZIE STREET (“Amendment No. 1”) 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 May 16, 2017, the City and FLLA entered into a Memorandum of Understanding (“MOU”)
regarding the La Loma Adobe (the “Adobe”) and surrounding grounds (the “Property”) that recognizes the mutual
benefit of a partnership between the City and FLLA, provides for access and use of the Adobe and Property by FLLA,
outlines the preliminary steps necessary to eventually restoring or rehabilitating the Adobe , including further
assessment of the historical significance of the Adobe in accordance with the Secretary of Interior’s Standards for the
Treatment of Historic Properties; and
WHEREAS, the MOU anticipates that the “schedule for restoration, maintenance, and repair shall be divided
into stages. The first shall consist of grounds restoration and a preliminary evaluation of r ehabilitation of the Adobe.
Additional stages may include exterior and interior restoration, but would be subject to subsequent agreements.” The
MOU specifically enumerates work program tasks and milestones under the sub-section “Stage I Grounds Restoration
and Preliminary Evaluation” and, at this time, each of these tasks have been addressed or completed, including:
ongoing reporting, fundraising, and community awareness; the incorporation of the Adobe and Property into the
Reservoir Canyon Natural Reserve; the procurement of a Historic Resource Evaluation (Applied Earthworks, 2021)
and Historic Structures Report (Architectural Resources Group, 2023); preparation o f construction plans,
specifications, and engineering for structural stabilization of the Ad obe; and, completion and approval of a building
permit from the City for structural stabilization; and
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 outlined in a Scope of
Work, and on July 17, 2025, the City and FLLA entered into Amendment No. 1 to Grant Agreement (collectively the
“Grant Agreement”) to extent the term to June 30, 2027 while acknowledging FLLA responsibly completing the tasks
described in the Scope of Work, including pro bono efforts, thereby preserving available funding for subsequent
implementation of physical structural stabilization tasks; and
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WHEREAS, with the initial “Stage I Ground Restoration and Preliminary Evaluation” and Grant Agreement
Scope of Works tasks now completed or otherwise resolved, both City and FLLA now desire to enter into a subsequent
agreement, as anticipated by the MOU, to set forth the next phase of work to include structural stabilization and
exterior and interior restoration efforts that can begin to be completed directly by FLLA with existing funding on -
hand; and
WHEREAS, the Parties acknowledge and agree that the MOU required, as a condition precedent to use of
the Adobe as an Interpretive Center, that the lot configuration of the property be modified to expressly allow for the
use of the Adobe encroaching onto the adjacent property as an Interpretive Center. The Parties furthe r acknowledge
and agree that, at the time of this Amendment No. 1, this condition has not been satisfied.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties agree that the MOU is hereby amended as follows:
1. Paragraph 4, Use of the Property, shall include a new sub -section, “Stage II Structural Stabilization
and Exterior and Interior Restoration”:
a. FLLA, in accordance with the approved building permit and construction plans, and
consistent with the Historic Structures Report (Architectural Resources Group, 2023), may
commence with implementation of structural stabilization and exterior and interior
restoration tasks.
b. FLLA may utilize a general contractor or other construction specialists with experience
working on adobe structures, as well as construction management services, using FLLA’s
procurement and / or bidding procedures. FLLA shall be responsible for ensuring prevailing
wage compliance. FLLA shall require that the selected contractor(s), specialist(s), or other
provider(s) comply with all City insurance requirements applicable to the services provided.
c. City shall maintain its full discretion as the property owner, as well as its land use, zoning,
and building code authorities.
d. FLLA shall continue to submit annual progress reports to the City Council.
e. FLLA and City staff shall maintain regular communication, including at least quarterly
meetings.
2. The Stage II Scope of Work is shown as Exhibit A. It is anticipated that Stage II will be followed
by subsequent stages subject to future agreements and available funding, including final uses and
operations for the Adobe and Property.
3. Nothing in this Amendment shall be construed as authorizing FLLA to use the property as an
Interpretive Center as described in the MOU, or similar uses, unless and until the conditions
precedent thereto have been satisfied.
4. Nothing in this Amendment shall be construed as providing, obligating, or promising any additional
grant funds, future grant funding, or other financial assistance from the City.
5. All other terms and conditions of the MOU remain in full force and effect.
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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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EXHIBIT A
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