City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 18, 2024
Report #:2403-2749
TITLE
Approval of Amendment No. 3 to Contract Number C21180324 with Canopy in the Amount of $376,550 and to Extend Contract Term for One Year for Continued Implementation of Urban Forest Master Plan Programs, and Approval of a Budget Amendment in the General Fund; CEQA Status - Exempt Under CEQA Guidelines Section 15308
RECOMMENDATION
Staff recommends that the City Council:
1. Approve and authorize the City Manager or their designee to execute Amendment No. 3 to Contract Number C21180324 with Canopy, to add to the scope of services for the provision of services to support the implementation of Urban Forest Master Plan programs, extend the contract term for one year through June 30, 2025, and increase the not-to-exceed amount of the contract by $376,550, for a new total not-to-exceed amount of $1,344,270, and
2. Amend the Fiscal Year 2025 Budget Appropriation for the General Fund (2/3 vote needed) by:
a. Increasing the Public Works Department Public Services Division Operating Budget by $148,750; and
b. Increasing the Public Works Department Revenue by $148,750 (use of funds in the Tree Preservation Deposits Account).
BACKGROUND
Canopy was created in 1996 to support Palo Alto’s Urban Forestry Section and engage residents through its tree and tree care education activities. Since becoming an independent 501(c)(3) non-profit corporation in 2002, Canopy has greatly expanded its programs of tree planning and planting, stewardship, hands-on learning, and environmental education. Since the early 2000s,
the City has contracted with Canopy, with a primary focus on assisting the City with projects and outreach to support and expand a healthy and sustainable urban forest.
In 2020, City Council approved a one-year, sole source contract with Canopy1 to support Palo Alto’s urban forestry programs by serving as a comprehensive information source on trees, educating and motivating Palo Alto residents to plant, care for, and celebrate trees, and assisting the City with special projects associated with the Urban Forest Master Plan (UFMP). In 2021, the contract’s term expiration was extended via Amendment No. 1 to June 7, 2022. In 2022, City Council approved Amendment No. 22, extending the contract term to June 30, 2024, as well as adding additional projects to the scope of services.
At the end of the Amendment No. 2 term, staff had anticipated conducting a solicitation to obtain proposals for the next contract for these services. However, new data has become available in recent months related to the Urban Forest in Palo Alto that requires further analysis and possible updates to the long-term planning for the City’s Urban Forestry program.
Specifically, the City obtained updated urban tree canopy coverage numbers for 2020 and 2022.
An initial review of the data shows a decrease in canopy coverage in every Palo Alto neighborhood between 2020 and 2022. Analysis of this data will inform the types of programs and services that will need to be included in the scope of services for the next contract.
Santa Clara County, and potentially the entire Bay Area, will also be facing another major threat to the region's urban forests. The invasive tree borer beetle known as the Invasive Shothole Borer (ISHB) has been confirmed in several locations in San Jose. Staff are participating in regional meetings and coordinated response planning sessions regarding ISHB. Staff have also begun preparations to deal with ISHB when it arrives in the city limits, but until the extent of the current infestation is known it is impossible to determine the specific measures that may be needed. Staff believes that the extent of the infestation will be known when the time comes to prepare the scope of work for the RFP that will replace this contract after the Amendment 3 term expires.
ANALYSIS
Canopy is well-established with the residents of Palo Alto and has the expertise, experience, professional stature, and key personnel to provide these services. Canopy is highly qualified as a non-profit organization to connect projects and programs with cooperating agencies and organizations to leverage funding and increase the effectiveness of projects and outreach. 1 City Council, December 7, 2020; Agenda Item #5; SR#10882, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2020-2/id-10882.pdf
2 City Council, June 21, 2022; Agenda Item #1; SR#14389 https://portal.laserfiche.com/Portal/DocView.aspx?id=59544&repo=r-704298fc&searchid=db641b70-b238-45ca- 8afd-4a970900aa41
While there are other Bay Area environmental nonprofit groups, staff is not aware of any that have Canopy’s combination of deep arboricultural background, robust educational framework, and strong local volunteer base. For these reasons, staff believes there is no adequate substitute or equivalent provider for the services currently required. An exemption to competitive solicitation pursuant to Palo Alto Municipal Code section 2.30.360(d) was approved by the City Manager. Staff proposes to use the Request for Proposal (RFP) process for a new Urban Forestry Education, Outreach and Urban Forest Master Plan Program Implementation contract to begin in Fiscal Year 2026 after the term of this proposed amendment expires.
Fiscal Year 2025 marks the tenth year of the UFMP implementation. Additional project scope and funding are included in this amendment for continued work on the South Palo Alto Tree Initiative. Important new UFMP projects in this amendment include an expanded digital tree health survey for the South Palo Alto Tree Initiative (UFMP programs 5.B.i, 6.D.ii), the creation of a guidance document for Solar Panels and Trees (UFMP programs 3.A.iv, 3.A.v), and the addition of five Community Pruning Workshops (UFMP programs 4.A.iv, 4.A.x). The last new item in this amendment is the creation of educational materials for Planting Oaks and Native Trees, Oak Tree Care, and Invasive Species (UFMP programs 6.J.viii, 2.A.vii, 2.A.v). •Digital Palo Alto Tree Health Survey – Urban Forest Master Plan 6.D.i., 6.D.ii.
Canopy will develop and conduct a south Palo Alto residential tree health survey to better and more quickly respond to tree care needs in Palo Alto. Since the resulting survey data from the pilot program proved useful to staff and Canopy in prioritizing tree care efforts, the survey will be implemented citywide for the next two years, reaching more residents and targeting tree care more effectively. •Guidance Documents for Solar Panels and Trees: Urban Forest Master Plan 3.A.iv, 3.A.v Canopy will create and distribute an informational guide on how to select appropriate tree species when planning to install solar panels. The guide will be provided at tabling and outreach events, as well as be available on Canopy’s website as a resource for residents.
•Educational Materials for Planting Oaks and Native Trees: Urban Forest Master Plan
6.J.viii
Canopy will develop educational materials about planting oaks and other native tree species for distribution to residents who are interested in planting trees and/or are selecting trees to plant in Palo Alto. Materials will include any information on incentives that the City offers for homeowners about planting oaks or other native species. Canopy will distribute these materials to residents, vendors, and tree nurseries, and update Canopy’s website with the latest information.
•Educational Materials for Oak Tree Care: Urban Forest Master Plan 2.A.vii Canopy will develop educational materials on how to care for oaks for distribution to residents who have planted or are interested in planting oak trees in Palo Alto. Canopy will distribute these materials to residents, new homeowners and tree care companies, and update Canopy’s website with the latest information. •Educational Materials for Invasive Species: Urban Forest Master Plan 2.A.v Canopy will develop educational materials on removing invasive tree species for distribution to residents. Materials will include any information on incentives for homeowners that the City of Palo Alto offers for removing invasive tree species. Canopy will distribute these materials to residents and update Canopy’s website with the latest information.
•Community Pruning Workshops: Urban Forest Master Plan 4.A.iv, 4.A.x Canopy will plan and conduct five pruning workshops for community members to provide guidance and hands-on instruction on proper young tree maintenance. Canopy will consult with the City to determine the time and location of each workshop. Canopy will also provide all necessary equipment and train and coordinate with all volunteers for each event.
FISCAL/RESOURCE IMPACT
The one-year amendment increases the cost of the contract by $376,550, revising the not-to- exceed total contract amount to $1,344,270. The amendment is scheduled to commence at the start of Fiscal Year 2025, on July 1, 2024 and end on June 30, 2025.
The table below shows the breakdown of the Canopy program components and the fee schedule for Amendment #3:
Table #1: Contract Totals by Item
Item # Item Description Previous Contract
(12/2020 to 06/2024)
Amendment #3
(07/2024 to 06/2025)
New Contract Total
1 Basic Services $339,420 $103,800 $443,220
2 S.P.A. Tree Planting $357,300 $148,750 $506,050
3 Great Oak Count $117,000 N/A $117,000
4 P&R Species List $40,000 N/A $40,000
5 Outreach $80,000 N/A $80,000
6 Digital Tree Survey $34,000 $34,000 $68,000
7 Oak Tree Planting Edu. N/A $15,000 $15,000
8 Oak Tree Care Edu. N/A $15,000 $15,000
9 Invasive Species N/A $15,000 $15,000
10 Solar Panels & Trees N/A $15,000 $15,000
11 Pruning Workshops N/A $30,000 $30,000
Totals: $967,720 $376,550 $1,344,270
The following details how each amendment item will be funded:
Funding for Item 1 is available in the Public Works, Community Services, and Utilities Departments’ Fiscal Year 2025 Adopted Budgets.
Item 2 will require a budget amendment to increase the FY 2025 appropriation for the Public Works Department Public Services Division by $148,750, and will be fully offset by revenue recognized from the non-refundable Forestry Fund Deposits account (elsewhere called Tree Preservation account). Funding for this account comes from in-lieu payments from development projects in the City that cannot plant all the required trees on site. The funds are to be used for tree planting projects throughout the City. The fund balance as of April 30, 2024 is $207,650.
Items 6 – 11, with a combined cost of $124,000, will be funded through the UFMP Technology and Tree Planting Rebate Programs that are included in the Fiscal Year 2025 Adopted Budget for the Public Works Department.
STAKEHOLDER ENGAGEMENT
Stakeholder engagement is an ongoing component of this contract. Many programs included in this contract (South Palo Alto Tree Planting, Great Oak Count, general Urban Forestry Education and Outreach) have an outreach/engagement component included as part of the implementation process. This allows Canopy and the City to inform stakeholders of projects and programs, incorporate stakeholder feedback into implementation plans, and engage stakeholders directly as volunteers and participants in growing and maintaining the City’s Urban Forest.
ENVIRONMENTAL REVIEW
The recommended action is exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(h) (maintenance of existing landscape).
ATTACHMENTS
Attachment A: Amendment No. 3 to Contract No. C21180324 with Canopy APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer