TO: NEIGHBORHOOD SERVICES AND FROM: John Ristow
EDUCATION COMMITTEE
SUBJECT: TREE PLANTING COSTS DATE: March 28, 2022
REPORT
Approved Date
4/5/22
RECOMMENDATION
Accept a report on tree planting costs associated with planting street trees along with potential measures to reduce costs.
BACKGROUND
The Mayor’s June Budget Message for Fiscal Year 2021-20221 allocated $210,600 to plant no fewer than 250 trees on the east side of San José. The message also included direction for staff to clarify tree planting and establishment costs to the Neighborhood Services and Education Committee, and what steps if any could be taken to reduce costs and plant more trees with potential savings.
The administration of the City’s various tree programs is divided among several City departments, but planting activities are primarily directed by the Department of Transportation (DOT) and the Department of Park, Recreation and Neighborhood Services (PRNS). DOT manages street trees within the public right of way, which include trees in the medians, parkstrips, special districts, and parcels of open space throughout the city. Property owners in San José are responsible for the maintenance of street trees adjacent to their property per the City’s Municipal Code (Section 13.28.400 of Title 13). There are an estimated 233,000 street trees maintained by property owners in addition to the approximate 37,000 street trees maintained by DOT.
DOT’s street tree program is administrative and regulatory in nature, where no-fee permits are required and issued for tree-related activities. The permits serve as a mechanism to ensure that residents seek guidance from trained arborist staff when pruning or providing and other forms of tree care.
Street tree permits are issued by DOT primarily when the property owner initiates a request for pruning or removal. Removal applications are reviewed by the City Arborist team and approved 1 https://sanjose.legistar.com/View.ashx?M=F&ID=9462559&GUID=B971B27E-38CD-4CD8-B9CE-7A54541BA505 NSE AGENDA: 4/14/2022
ITEM: (d) 2
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
March 28, 2022
Subject: Tree Planting Costs Report
if the criteria for removal are met. Street trees are most often removed because they are in poor condition and pose potential safety risks. This is typically caused by a lack of care or declining health due to a specific condition. In these instances, the cost to remove and replace the tree is paid by the property owner. Trees may also be removed as part of a development project. If new trees cannot be accommodated at the development site, the developer will pay an offsite mitigation fee, so that replacement trees may be planted elsewhere. The Department of Planning, Building, and Code Enforcement (PBCE) collects these fees and since FY 2018-2019, the funds have been transferred to DOT on an annual basis for new tree planting and establishment care.
DOT primarily works with Our City Forest (OCF) for tree planting and establishment activities for newly planted street trees and is given the first opportunity to plant trees for the City through a master fee agreement. PRNS also uses OCF services for tree planting and establishment. On occasion DOT may use another tree contractor to plant and maintain trees if OCF is unable to perform the work. The rates for the OCF master fee agreement are negotiated annually and include costs for tree planting and tree establishment services for the first three years after planting (monitoring, watering, and pruning activities) all of which are critical to the long-term health of a new tree.
ANALYSIS
Tree Costs
There are two components to the costs associated with planting a tree; the procurement and planting of the tree itself, and the establishment services required for that tree. The baseline costs for these services are derived from the OCF - City of San José master fee agreement, which is approved each year and outlines the unit prices for specific services. Table 1 below, shows the pricing over the past five years for tree planting and compares planting rates between OCF, and a contractor that DOT utilizes for some planting services.
Table 1 –Tree Planting Costs, OCF and Contractor
* Denotes OCF proposed rate
The OCF and contractor rates are currently similar for planting, which in 2021 was $200 - $210 per 15-gallon tree, the most common size used for planting. It is also noteworthy that OCF provides most tree establishment services for the City, including for trees planted by others.
OCF Master Fee Agreement – Tree Planting
Description 2018 2019 2020 2021 2022
15-gallon street tree (residential or median) $180 $205 $210 $210 $210* Contractor Price – Planting
Description 2018 2019 2020 2021 2022
15-gallon street tree $175 $175 $184 $200 $210
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
March 28, 2022
Subject: Tree Planting Costs Report
Establishment care consists primarily of tree staking, installation of a water berm with mulch to ensure deep rooting, tree watering over an approximate three-year period, and periodic observations/assessments. Table 2 shows the establishment pricing over the past five years.
Table 2 – OCF Tree Establishment Costs
OCF Master Fee Agreement – Establishment Services
Description 2018 2019 2020 2021 2022
3-year Tree Establishment
Per tree (regardless of location) * - - - - $450*
Per tree (20+ trees) $240 $275 $275 $275 -
Per tree (less than 20 trees) $480 $550 $550 $550 -
Per tree (lane closure required) $720 $825 $825 $825 -
*- Denotes OCF proposed rate
Through 2021, OCF establishment rates depended on the location of the planted tree. For example, planting and establishment of 20+ trees without a lane closure would have cost the City $485 per tree, whereas in situations where a lane closure was required, the price could rise to $1,035 per tree due to the added complexity and safety management activities. DOT has found these rates to be competitive and reasonable. OCF has proposed a new flat rate structure of $450 establishment cost per tree, regardless of location. Whereas previously the cost for tree planting would range from $485-$1035, the newly proposed rate for all trees would be $660. DOT anticipates incorporating this new rate in the current year master fee agreement.
Mitigation Fees – Collection and Planting Activities
Applicants for a private tree removal permit or development permit that includes the removal of trees are subject to a requirement to plant a replacement tree(s), depending on the size and types being removed. When trees cannot be replaced on-site, the applicant is required to pay an “offsite mitigation fee” to PBCE. In FY 2018-2019, this fee was raised to $755 per tree to allow for planting and establishment of a new tree and has since risen to $775 to align with increases to the Consumer Price Index. These fees are distributed annually to DOT.
DOT uses the mitigation funds to plant and perform three years of establishment care on new 15- gallon trees within the community. Since FY 2018-2019, DOT has received a total of $893,940 for mitigation planting. This equates to a requirement to plant a minimum of 1,139 trees. DOT received $377,080 of that total prior to July 1, 2021 and used it to plant 472 of the 493 trees targeted by that date. Staff is developing the planting locations for the 667 trees that will be funded by the fees collected in FY 2020-2021, which are targeted for planting in the fall of FY 2022-2023. Planting activities typically take place during the colder months to ensure the highest chances of survival. OCF is a key partner in these plantings, many of which will be executed via the master fee agreement referenced above.
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
March 28, 2022
Subject: Tree Planting Costs Report
Expansion Opportunities
On February 8, 2022, City Council approved adoption of the Community Forest Management Plan. This plan provided the City with an analysis of the City’s tree programs, the current state of the community forest, and opportunities for improvement. Concurrent with adoption of the plan, DOT was directed to facilitate efforts resulting in the planting and establishment of 2,000- 3,000 trees annually, prioritizing underserved communities. It is anticipated that the City Manager’s proposed budget for FY 2022-2023 will include additional funding to maintain and expand the community forest. Additionally, the City Auditor was directed to determine how the City can most cost-effectively plant more trees, among other items.
A planting and establishment program of the above magnitude will take substantial City resources and require strengthening and building additional partnerships. DOT will seek grant opportunities to further leverage existing funds and supplement tree planting costs. There are also opportunities for the City to collaborate with partners at CalFire, OCF, the Open Space Authority, and others for both programmatic improvements and funds for direct planting activities. Recently, DOT wrote a letter of support for OCF’s application for a CalFire tree equity grant to plant 1,500 trees in disadvantaged census tracts in San José and looks forward to collaborating on that process while further expanding the canopy with additional funds and resources.
If the City is able to realize an overall savings on planting and establishing trees through OCF’s proposed new rates, via the collaboration opportunities described above, or opportunities identified by the City Auditor, additional tree planting and/or maintenance activities could be provided with these potential savings.
CONCLUSION
This memorandum clarifies that planting and establishment activities are distinct yet both essential to the survival of the tree and describes the unit prices for the various line-items.
Although the impacts of an unprecedented tree-planting program on pricing of these services in the City of San José is not yet known, staff and partners will continue to collaborate to deliver the most cost-effective and efficient planting program possible with existing resources, while seeking alternative funding opportunities such as grants, and innovative practices that may potentially reduce costs.
COORDINATION
This report has been coordinated with PRNS, the City Manager's Budget Office, and the City Attorney's Office.
NEIGHBORHOOD SERVICES AND EDUCATION COMMITTEE
March 28, 2022
Subject: Tree Planting Costs Report
/s/
JOHN RISTOW
Director of Transportation
For questions, please contact Eric Hon, Division Manager, (408) 794-1987.