STAFF REPORT
20 Meeting Date:
August 12, 2025
SUBJECT: FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to execute a contract with Natures Image, Inc. for Fuel Modification Services through December 31, 2028, in the amount of $8,212,000 for the mechanical treatment option subject to budget approval each fiscal year; and
2. Approve the addendum to the City’s certified Fuel Modification Treatment Protocol.
Appropriation: $0 Fund: N/A
Submitted By: . Approved:
Niko King, Fire Chief Dave Kiff, City Manager
SUMMARY OF THE MATTER
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
This report provides an update on the City’s Fuel Modification Program and recommends continuation of the herbicide-free treatment trial with limited exceptions. In January 2024, the City Council directed staff to temporarily eliminate herbicide use in hand-treated Fuel Modification Zones and rely exclusively on mechanical treatment methods such as mowing and trimming. After 18 months of implementation, staff have determined that the program continues to meet its fire safety objectives, though non-native vegetation has increased in some areas.
In response to public feedback, staff propose a modification to the City’s certified treatment protocol (see Attachment 1). The proposed addendum retains mechanical treatment as the default method but allows herbicide use under very limited and clearly defined circumstances within fuel modification zones.
Specifically, herbicide would be reserved for high-risk, ecologically aggressive plant species listed on the Orange County California Native Plant Society’s Emergent Invasive Plant Species (EIPS) list only after mechanical treatment methods have failed to eradicate the species. These species require early detection and rapid response to prevent establishment and long-term ecological degradation. The addendum is included as Attachment 2.
While herbicide remains authorized under the certified protocol, its use has been suspended during the trial period. The proposed addendum preserves this limitation, subject to strict application standards, defined exclusion zones, public notification requirements, and case-by-case City Council authorization for any exceptions.
To implement this approach, the City issued a Request for Proposals for fuel modification services through 2028. One proposal was received from Natures Image, Inc., the City’s current contractor. Staff recommends awarding the contract based on the mechanical treatment option, which includes limited herbicide use as outlined in the protocol addendum.
The total contract amount is $8,212,000 for the four-year period (2025–2028), with actual annual costs ranging from approximately $760,000 to $3.2 million depending on treatment frequency and acreage expansion. Funding for Fiscal Year 2025–26 services is included in the adopted budget. Appropriations for future years will be included in proposed budgets for City Council consideration as part of the annual budget process. Nature’s Image’s cost proposal is included as Attachment 3.
Staff will continue to monitor program performance and return to the City Council for further direction should fire protection or habitat conditions change.
Clarification on Addendum Purpose
Although the City is proposing to continue its mechanical-only treatment protocol, the addendum establishes clear standards and restrictions for herbicide use should it be reintroduced under specific, limited circumstances. These parameters are not intended to authorize routine use but are instead designed to ensure regulatory and environmental proceudres are in place if herbicide must be considered in the future. The addendum is focused primarily on aggressive invasive species listed on the Orange County California Native Plant Society’s Emergent Invasive Plant Species (EIPS) list and outlines how treatment could proceed in those cases.
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
DISCUSSION
The City maintains approximately 125 acres of hand crew–treated Fuel Modification Zones, with an additional 46 acres scheduled for implementation in 2027. An additional 250 acres are managed through goat grazing, which does not require the same regulatory approvals.
A Coastal Development Permit (CDP) is required for the hand-treated zones. As part of the CDP process, the City must maintain a certified treatment protocol that outlines approved vegetation management methods. This protocol provides the framework for compliance with the California Coastal Act, CEQA, and related regulations. Under the existing protocol, targeted herbicide application is an authorized method for controlling non-native species when conducted in accordance with performance standards, weather restrictions, and oversight by licensed professionals.
At its January 9, 2024 meeting, the City Council directed staff to implement a two-year trial period eliminating herbicide use within Fuel Modification Zones and to rely instead on mechanical methods such as mowing and trimming. After 18 months, staff determined the program continues to meet its fire safety objectives.
Since the January 9 meeting, staff have received ongoing public input indicating a preference for continuing a fuel modification program that does not include herbicide as a treatment method. In hand crew–treated zones, vegetation is addressed through mechanical treatment and hand pulling. Based on this approach, staff
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
estimate an additional cost of approximately $200,000 per year compared to a program that includes herbicide (outline in Part 2).
Regardless of the treatment option selected, staff have identified that the certified protocol can be expanded through an addendum to include specific parameters for herbicide use, including exclusionary zones, weather conditions, and public notification requirements.
To address public feedback, staff met with community members to discuss a revised approach. An addendum to the certified protocol has been prepared to narrow and clarify the conditions under which herbicide may be used. While the proposed addendum may not fully resolve all community concerns, staff recommend allowing herbicide use under limited and defined circumstances as described below.
Part 1 – Proposed Treatment Protocol Addendum
Staff proposes extending the mechanical-only treatment program with a limited exception for herbicide use.
Under the revised approach, all non-native plant species will be treated using mechanical methods and hand-pulling, except for those identified on the Orange County California Native Plant Society’s Emergent Invasive Plant Species (EIPS) list.
Herbicide application will be reserved exclusively for EIPS-listed species, which are classified as ecologically aggressive and capable of significantly disrupting habitat integrity. These species are addressed through early detection and rapid response to prevent establishment and spread. Habitat protection will continue to be monitored throughout the trial period, with a full assessment of program impacts to occur at a later stage.
While staff anticipate that non-native species may increase in some treated areas, this will not prompt changes to the program unless it directly compromises fire safety objectives.
Key Addendum Provisions
1. Habitat Protection and Invasive Species Control
• Remove invasive species listed on the Orange County California Native Plant Society’s Early Invasive Plant Species (EIPS) list.
• Primary methods: manual or mechanical removal.
• Herbicide use allowed only when alternative methods fail to achieve full eradication, and only for EIPS-listed species.
2. Herbicide Use Standards
• Approved methods: targeted foliar spray, cut-stump treatment, wick/dauber application. • Requires written recommendation from a licensed Pest Control Advisor and supervision by a Qualified Applicator.
• All applicators must complete annual pesticide safety training. • Only California-registered products may be used in compliance with EPA labeling and applicable laws.
• Detailed application records must be maintained and reported annually.
3. Herbicide Exclusionary Zones
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
• No herbicide use within specified buffers unless City Council authorizes an exception:
o 30 feet from trails
o 100 feet from schools and childcare facilities
o 50 feet from parks, public streets, and waterways
• Within exclusion zones, only non-chemical treatments are permitted.
4. Exceptions to Exclusion Zones
• Herbicide may be considered for EIPS-listed species in exclusion zones only with City Council approval at a publicly noticed meeting.
5. Private Property Opt-Out
• Owners may request in writing to exclude their property from herbicide application.
6. Weather Restrictions
• No herbicide application during high winds (over 10 mph), rain, forecasted heavy rain, or saturated/runoff conditions.
7. Public Notification
• On-site posting and adjacent property notice at least one week in advance of herbicide application. • Notices must include date/time, herbicide type, purpose, and City contact information.
Distinction Between EIPS-Listed Species and Other Non-Native Invasive Plants Not all non-native or invasive plants carry the same ecological risk. The Emergent Invasive Plant Species (EIPS) list, maintained by the Orange County California Native Plant Society, identifies invasive plants that pose a significant and immediate threat to native habitat integrity due to their aggressive growth characteristics and potential for rapid spread.
EIPS-listed species are typically newly introduced or rapidly expanding, unlike other non-native species that are more widespread and typically managed through routine mechanical methods. The key factor in managing these species is timing. Because EIPS plants can establish and spread quickly, early detection and rapid response (EDRR) is essential. Prompt treatment, before these species become entrenched, is required to preventing large-scale ecological degradation and long-term maintenance burdens.
In practice, the City’s approach begins with manual or mechanical removal as the first-line treatment for EIPS-listed species. Only if these methods fail to achieve complete eradication will herbicide be considered.
Herbicide use is strictly limited to those cases where non-chemical control proves ineffective and is subject to required application protocols.
If an EIPS-listed species is discovered within a designated herbicide exclusionary zone, staff will bring forward a proposed treatment plan to the City Council for consideration at a publicly noticed meeting. If herbicide use is authorized by the Council, it would likely result in a temporary closure of the area during and following application.
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
Under the proposed addendum, herbicide use is limited to EIPS species and is applied only when necessary and in a narrowly targeted manner. All other non native species will continue to be managed through manual or mechanical methods. This approach preserves the integrity of the herbicide-free trial while ensuring the City can respond to serious and time-sensitive ecological threats.
EIPS Species Observed in Laguna Beach Fuel Modification Zones Three species from the EIPS list have been identified within or adjacent to hand crew–treated Fuel Modification Zones in Laguna Beach. These species affect approximately one acre in total, with localized coverage between 5% and 25%. The following table summarizes their current extent and locations:
Species Estimated
Area
Coverage Affected
FMZs
Dipogon lignosus (Okie Bean) 0.91 acres 5–25% FMZs 15, 17, 20 Hypericum canariense (Canary Island St.
John’s Wort) 0.36 acres 1–25% (majority 1–5%) FMZs 23, 24 Elymus ponticus (Tall Wheat Grass) 0.08 acres 5–25% FMZ 24 Although these species affect a small portion of the total treatment area, they represent an ecological risk.
Acting early prevents establishment and spread, reducing the long-term cost and ecological impact of managing these species.
Part 2 – implementation and Contractor Selection
To support continuation of the Fuel Modification Program, the City issued a Request for Proposals in [Insert Month] 2025 seeking a qualified contractor to perform vegetation treatment services through December 31, 2028. The RFP specified that proposals must include pricing for two treatment options:
Option 1. Mechanical Treatment: Limited herbicide use. (Recommended) Option 2. Combined Treatment: Allows herbicide use consistent with the City’s certified treatment protocol.
The RFP was advertised on the City’s online procurement portal. One proposal was received, submitted by Natures Image, Inc., the current service provider. Their submittal was deemed responsive and met all requirements.
Natures Image provided cost proposals for both options. Staff evaluated the cost, compliance, and past performance and recommends awarding a contract based on the mechanical-only option, with limited herbicide use as described in the proposed protocol addendum.
One notable change in this contract is a shift in the compensation model. In prior contracts, services were compensated on a flat per-acre rate, which provided uniform coverage but did not account for varying treatment needs across different zones. The new contract adopts an hourly rate model, which allows the City to target resources toward areas with higher vegetation density or invasive species pressure, increasing flexibility and efficiency.
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
Proposal Analysis
Overview
The following table presents the annual cost range for fuel modification services based on the two proposed treatment methods—mechanical-only (no herbicide) and combined (herbicide allowed). Each option includes a low and high proposal:
• Low Cost: Represents the cost for two treatment passes per year, the minimum required under the program.
• High Cost: Represents the cost if a third treatment pass is needed in a given year due to vegetation regrowth, seasonal conditions, or regulatory inspection findings.
Table 1 - Annual Cost Ranges for Fuel Modification Services (2025–2028) Year No Herbicide (Range) Herbicide (Range) Cost Difference (Range)
%
Difference
(Range)
2025 $759,693 –$1,232,425 $693,987 – $1,101,011 $65,706 – $131,414 9.5% – 11.9% 2026 $1,033,699 – $1,550,548 $903,150 – $1,354,724 $130,549 – $195,824 14.5% 2027* $2,698,574 – $3,227,616 $2,564,973 – $3,027,215 $133,601 – $200,401 5.2% – 6.6% 2028 $1,467,865 – $2,201,798 $1,281,361 – $1,922,041 $186,504 – $279,757 14.6% *2027 includes additional costs associated with the planned implementation of Fuel Modification Zones 16 (Diamond Crestview) and 19 (Hobo Canyon), which add approximately 46 acres to the program and are estimated to increase total cost by $1.6 million.
Annual treatment requirements may vary depending on rainfall, vegetation density, and site-specific fire risk assessments. For budgeting purposes, the high range is recommended to account for potential third passes and expanded treatment areas.
Table 2 - Historical and Projected Per Acre Maintenance Costs (FY 2022–2028) Fiscal Year No Herbicide (Per Acre) Herbicide (Per Acre) 2022–2023 — $1,610
2023–2024 — $1,691
2024–2025 — $1,710
Trial Program (Jan 2024) $4,200 —
New Contract Period
2025 $3,993 $3,438
2026 $4,070 $3,556
2027 $4,166 $3,640
2028 $4,250 $3,710
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
Staff observed a noticable increase in per-acre costs under the proposed contract with Natures Image compared to the previous contract. In response, staff requested clarification from the vendor regarding the basis for the new pricing.
Natures Image provided the following explanation:
“The cost proposal reflects our actual labor production rates observed during the previous contract period. After reviewing our hourly labor records, we found that the time and resources required for FMZ maintenance—including those involving herbicide application—were significantly greater than initially estimated in 2022. This is primarily due to the complexity of fuel modification protocols and the difficulty of terrain.
Additionally, the updated pricing—both for herbicide and non-herbicide options—is based on real production data from the last contract term. Increases in labor costs and ongoing workforce shortages have further contributed to the proposed rate adjustments.” Although the new contract compensates work based on hourly labor rates, staff continues to use per-acre cost estimates as a standard metric to assess program costs at a unit level. This allows for consistent comparison of costs across years and contract types, even when compensation models differ. It also provides a practical way to evaluate pricing trends and measure the efficiency and effectiveness of different treatment approaches.
Following this explanation, staff requested a best and final offer. Natures Image subsequently reduced their proposed pricing. Staff also confirmed with the Laguna Canyon Foundation that the revised unit costs are consistent with rates charged by other qualified vegetation management vendors in the region. Based on this input, staff concluded that pricing under the prior contract was understated relative to the actual cost of delivering the program.
Conclusion
Staff recommends that the City Council select Option 1: Mechanical-Only Treatment with Limited Herbicide Use for EIPS-Listed Species, as outlined in the proposed contract and protocol addendum.
This recommendation supports the continuation of the City’s two-year trial period focused on mechanical treatment. Although an increase in non native species is expected in some areas, this alone will not justify altering the program unless it directly compromises fire safety objectives. Should a trend emerge that indicates declining fire protection performance or significant ecological setbacks, staff will return to the City Council for further direction prior to contract expiration.
Alternative Options
Option 1. Authorize the City Manager to execute a contract with Natures Image, Inc. for Fuel Modification Services through December 31, 2028, in the amount of $7,404,000 for the combined treatment option (includes the use of herbicide).
FUEL MODIFICATION SERVICES CONTRACT AND PROTOCOL ADDENDUM August 12, 2025
Option 2. Direct staff to implement mechanical treatment for 2025, 2026, and 2027, the revisit the treatment option for calendar year 2028. Noting that cost increases after implmentation of FMZs 16 and 19.
FINANCIAL ANALYSIS
The adopted budget includes funding for work scheudle for completion under the proposed contract in Fiscal Year 2025-26.
ENVIRONMENTAL ANALYSIS
This addendum narrows the scope of authorized treatment practices, the City has determined that this amendment does not trigger recertification under CEQA or require a new Coastal Development Permit.
ATTACHMENTS
1. Certified Treatment Protocol
2.Proposed Addendum to Treatment Protocol
3.Natures Image Cost Proposal
Report Prepared By: Coordinated With:
Jeremy Frimond, Assistant City Manager, City
Manager's Office
Robert Montaghami, Fire Marshal