ADMINISTRATIVE REPORT
MEETING DATE: May 27, 2026 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Randy McKeegan, Finance Director
DATE: May 13, 2026
SUBJECT: Amendment No. 1 to Agreement No. 2025-095
with Rancho Tree Service (incorporating a contract price increase of five percent (5%), increase compensation by $900,000; revised not to exceed $1,400,000; and extend the term by one year) to continue the supply of tree trimming services.
RECOMMENDATION:
Staff recommends approval of the amendment
BACKGROUND:
On June 11, 2025, the City Council approved the annual contract for the supply of tree trimming services with Rancho Tree Service, in the amount of $500,000; renewable annually thereafter for four consecutive one-year periods. The City may exercise the option to allow price adjustments due to increases in the U.S. Department of Labor Bureau, Labor Statistics Occupational Employment and Wages for classification code 37 -3013 Tree Trimmers and Pruners.
This contract is primarily utilized by the Recreation and Parks Department. The intent of this contract is to provide tree trimming services including pruning, removal, and other related service at various City locations on an on-call as needed basis.
Rancho Tree Services has agreed to extend its bid pricing w ith a five percent (5%) contract price increase, consistent with increases reflected in the U.S. Department of Labor, Bureau of Labor Statistics Occupational Employment and Wage data for classification code 37-3013, Tree Trimmers and Pruners. Staff have previously reviewed and approved the request in full accordance with the terms and conditions of the original bid specifications.
Currently, approximately $15,000 remains available under the contract. If approved, Amendment No. 1 will incorporate a 5% contract price increase, extend the term by one year, and increase compensation by $900,000 to allow the continued provision of tree trimming services to the term date of June 10, 2027.
FISCAL IMPACT:
Funds are budgeted in the Recreation and Parks Department’s General Fund account.
COUNCIL GOAL:
Reliable Infrastructure
ATTACHMENTS:
1. Amendment No. 1 to Agreement No. 2025-095
2. Exhibit A