STAFF REPORT
Meeting Date:
April 14, 2026
CONSENT
8 SUBJECT: SERVICE PROVIDER AGREEMENT FOR DOWNTOWN TREE LIGHTING
PROGRAM
RECOMMENDATION: It is recommended that the City Council:
1. Authorize the City Manager to into a Professional Services Agreement with the Chamber of Commerce for the Downtown Holiday Tree Lighting Program for Fiscal Year 2026-27; and
2. Find this action is not a project subject to California Environmental Quality Act pursuant to CEQA Guidelines Section 15378.
SUMMARY OF THE MATTER
The City of Laguna Beach (“City”) has historically contracted with the Laguna Beach Chamber of Commerce (“Chamber”) to assist with holiday lighting in the downtown area. The last contract between the City and Chamber to assist with holiday lighting in the downtown area expired last year.
In anticipation of the 2026 holiday season, City staff is seeking authorization from the City Council to enter into a new, one-year professional services agreement with the Chamber for event management to assist with holiday lighting in the downtown area. The proposed professional services agreement with the Chamber requires the Chamber to go through a certain procurement process, consistent with the City’s procurement ordinance, for contractors to install lighting, and also provides for a $20,000 management fee to Chamber.
City staff and Chamber will use the City’s last year's plan for tree lighting to serve as the basis of the request for proposals for a contractor to install tree lighting, which cost the City $100,000 last year. The scope of work for the tree lighting program is included in Attachment 1, Exhibit A. Accordingly, the not-to-exceed amount of the professional services agreement with the Chamber will be $120,000 and could be less based on the selected contractor. City staff has included a 10% contingency to allow the City Manager to increase the total not to exceed amount to $130,000 in the event the proposals for tree lighting slightly exceed $100,000.
City staff recommends that the City Council authorize the City Manager to execute the professional services agreement, in a form approved by the City Attorney, in an amount not to exceed $120,000, with a 10% contingency to accommodate tree lighting in the downtown area during the holiday season in 2026.
DISCUSSION
A Reminder about Procurement Processes
Goods and Services. Under the City’s procurement ordinance (Chapter 2.30), purchases of goods and services with an estimated cost greater than $10,000 must be made following the solicitation of at least three
SERVICE PROVIDER AGREEMENT FOR DOWNTOWN TREE LIGHTING PROGRAM April 14, 2026
written price quotes or proposals, which may be solicited using any means reasonably calculated to obtain a combination of the lowest price and highest quality of goods or services available, in the reasonable discretion of the City Manager. (LBMC Section 2.30.040(c).) The person initiating the purchase must keep a record of all such solicitations and the price proposals submitted in response thereto. (Id.) If the person is unable to obtain three proposals after diligent efforts to do so, the purchase may be made without obtaining three proposals, provided that the efforts made to obtain three proposals are documented in the contract file for the purchase. (Id.)
Professional Services (Event Management). Contracts for professional services shall be awarded on the basis of demonstrated competence and the professional qualifications necessary for the satisfactory performance of the services, offered at a fair and reasonable price as determined by the city.
Non-Professional Services (Tree Lighting). Contracts for non-professional services may be awarded to the responsible bidder submitting the lowest responsive bid, provided, however, in the event the City Manager determines that it is in the best interest of the City, contracts for services subject to this section can be awarded pursuant to the same rules for professional services (above).
Sole Source Exemption to Bidding Requirements. When the City Council or City Manager determines that there is only one source that provides the needed services or materials, supplies, and equipment, or to ensure compatibility with other city products and equipment, the city shall work to procure these items in the best interest of the city. Instances of when a sole source procurement may be necessary:
1. The good or service is available from only one vendor.
2. In order to match other products in use to ensure compatibility.
3. In order that a field test or experiment may be made to determine a product's suitability for future use.
4. Competition is deemed inadequate after soliciting a number of sources.
5. Vendor holds a unique set of skills or expertise that makes it impossible/unlikely anyone else can do the work or the same quality of work.
About this Agreement
For the professional services agreement with the Chamber, the City is relying upon the sole source exemption to the bidding requirements. Here, the City does not have access to electricity in the public right of way, and the Chamber has relationships with the businesses in the downtown area. Therefore, City staff finds that the services for event management of the tree lighting is available from only one vendor.
The Chamber will be able to work with the selected contractor for tree lighting services to come up with a plan and communicate with businesses regarding power to the tree lighting. The Chamber will report to the City on a monthly basis on the services performed under the agreement. Based on the way that the professional services agreement is currently drafted, the City will pay to the Chamber, for the event management, $10,000 on July 17, 2026, $5,000 on October 30, 2026, and $5,000 on January 8, 2027.
For the tree lighting services, the City is requiring that the Chamber go through the City’s procurement process required for non-professional services. These requirements are reflected in the proposed
SERVICE PROVIDER AGREEMENT FOR DOWNTOWN TREE LIGHTING PROGRAM April 14, 2026
professional services agreement. (Attachment 1, Exhibit A.) This will ensure that the City is getting the most competitive price for tree lighting services.
The Chamber will be required to award the contract for tree lighting services to the responsible bidder submitting the lowest responsive bid unless, upon consultation with the City Manager, the City Manager determines that it is in the best interest of the City to award it to a different bidder based upon demonstrated competence and the qualifications necessary for the satisfactory performance of the services, offered at a fair and reasonable price. Based on the way that the professional services agreement is currently drafted, the City will pay the Chamber for the tree lighting services upon the Chamber’s presentation of an invoice by the selected tree lighting contractor, following the procurement in accordance with the agreement.
City staff recommends that the City Council authorize the City Manager to execute the professional services agreement, in a form approved by the City Attorney, in an amount not to exceed $120,000 with a 10% contingency to accommodate tree lighting in the downtown area during the holiday season in 2026.
Future Years
With the Promenade open starting this Summer, the City may wish to change the way we celebrate the holidays via lighting (or it may not). Either way, we believe that a one-year term for this agreement makes the best sense, as we’ll all want to see how the Promenade changes opportunities (with direct City electricity) to provide holiday lighting.
FINANCIAL ANALYSIS
Sufficient funding for this program will be included in the Transit and Community Services Department proposed Fiscal Year 2026-27 budget. This contract is typically funded by the City’s General Fund (#110).
ENVIRONMENTAL ANALYSIS
The recommended action is exempt under the California Environmental Quality Act under CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. Here, the recommended action meets the exemption because it authorizes event management and tree lighting installation during the 2026 holiday season. Upon taking the recommended action, City staff will cause to be filed within five calendar days a notice of statutory exemption with the County and State Clearinghouse.
ATTACHMENTS
1. Professional Services Agreement with the Chamber of Commerce (Pgs. 4-24)
SERVICE PROVIDER AGREEMENT FOR DOWNTOWN TREE LIGHTING PROGRAM April 14, 2026
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Alexis Braun, Acting Director of Transit and
Community Services
Jane Abzug, Assistant City Attorney