PURPOSE

To secure City Council endorsement on a proposed Burbank Water and Power (BWP) program that will provide shade trees for commercial customers and corridors. 

BACKGROUND

In March 2003, BWP began delivering free shade trees to Burbank residents participating in the Made in the Shade program.  From March 2003 through July 2004, BWP has served 1,491 Burbank homeowners, delivering 2,625 free 15-gallon shade trees.  These trees will grow and thrive in Burbank for decades, providing shade that will help to reduce air conditioning use and residents� summer electricity bills.  Trees also provide environmental benefits, including improving air quality and reducing water runoff during the rainy season.  And, of course, the aesthetic benefits of trees are not to be overlooked.  Communities with an abundance of trees boast higher �most livable� ratings as well as higher property values. 

BWP�s residential Made in the Shade program has been a resounding success.  We are meeting the goal of having over 1,000 trees planted annually to help reduce peak energy use and residents have been extremely happy with the service provided by this program.  BWP is now ready to launch a commercial shade tree program. 

Three Facts Discovered

In researching the commercial market relative to its need for shade trees, staff discovered three important facts. 

First, many businesses see trees as a nuisance rather than a benefit.  While trees can do an admirable job of blocking the sun, they can also block the view of the business and possibly reduce its awareness.  The fear for business proprietors is that potential customers driving by may be less likely to find or notice their establishment if trees are prominently located in the entrance area of the business.  Additionally, if trees are sited near walkways there is the potential for disruption to walkways from root growth.  The concern here is that possible trip-and-fall accidents could occur, resulting in injuries and/or litigation.   However, this can be mitigated with proper selection of tree species. 

Second, staff also discovered that a shade tree program similar in design to the current Made in the Shade residential program is appealing to certain businesses, notably those with several buildings located on their property.  Schools are perhaps the best example of this group.  Other campus-like organizations, such as studios and hospitals, also fall into this category. 

The third fact that was discovered is that the City itself is interested in dramatically increasing the number of trees sited on high-traffic business corridors, such as Burbank Boulevard.  One energy benefit of this approach is that heat island effects can be mitigated.  Heat islands result from urban development with an effect of overall summer outdoor temperatures increasing.  As development spreads, increasing amounts of asphalt and concrete soak up the sun's radiation during the day.  This drives the temperature in urban areas up.  According to satellite readings from NASA, average temperatures in cities and urban areas can range five to ten degrees Fahrenheit hotter than surrounding areas.  As temperatures rise, so does the need for additional air conditioning.  The more an air conditioner works to keep the inside cool, the more hot air it dumps outside.  This unfortunate cycle results in both increased temperatures and air conditioning load. 

Proposed Commercial Shade Tree Program

What BWP staff is proposing is a commercial shade tree program that serves the needs of two distinct constituents � businesses that are interested in participating in a shade tree program similar to Made in the Shade and the City itself.  As such, the program will have two separate program designs to meet the needs of each constituent group. 

1.         Business Design

For Burbank businesses interested in receiving free shade trees from BWP, the following program design is recommended. 

• Run the program year-round, offering up to 20 free trees per Burbank business every fiscal year.

• BWP will extend the contract of the Made in the Shade arborist consultant to include business visits.  Interested business customers will call the arborist to schedule an office consultation at the business place.

• During the office visit, the arborist will discuss tree species available through the program and best planting locations for shade.  Together with the arborist, the business customer will select trees and agree to a specific planting site for each tree.  The trees must provide shade to air conditioned structures on the property to qualify.  Given this, north-facing tree plantings are excluded through this program.  Only planting locations with a south, west or east facing will be allowed.  

• BWP�s program will provide about 30 tree species for businesses to select from, the same list as provided to residential customers.  Both deciduous (drops leaves during the wintertime) and evergreen varieties will be available.  All selected species grow well in Burbank, provide shade as mature trees, and are suitable for planting under power lines. 

• Once tree selection and planting site decisions have been made, the arborist will diagram the tree selections and specific sites.  The customer will sign an agreement stating that they understand they must plant the trees where shown on the diagram and what their planting and tree maintenance responsibilities are.  Additionally, the agreement will inform customers that their business may be randomly selected for a verification visit.  Program participants will have to agree to reimburse BWP for the full program value of any tree not planted in the agreed-to location.

• Businesses are responsible for planting the trees they receive through this program. 

• During the site visit, the arborist will give the business customer a copy of a City-produced video on proper tree planting and maintenance guidelines, as well as answer any planting or maintenance question that the customer might have.

• BWP has a contract with Arbor Nursery in Duarte from which we purchase the shade trees.  The arborist will send in orders weekly to Arbor Nursery.  Within two weeks of the arborists� visit, the selected trees will be delivered to the business.  Residential tree deliveries currently take place on Saturday mornings.  Staff anticipates changing the delivery schedule for business customers to coincide with more appropriate business working hours.   

• Stakes, ties and an arbor guard (a device placed at the base of the tree to protect it against injury from a weed whacker) will all be provided free of charge through this program to insure that each tree has the best opportunity to thrive.

• As with the residential program, 15-gallon trees will be provided to Burbank businesses participating in this program. 

Provision for City Street Trees

The design listed above specifies shade trees for private property only.  However, some businesses may be more interested in city trees planted in the public right-of-way.  Park, Recreation and Community Services runs the Tree Stewardship Program.  Tree Stewardship provides 15-gallon commercial street trees for just $55 per tree.  This is a basement bargain price as it covers the cost of the tree, installation of the tree, any concrete work necessary, and the encroachment permit. 

As an element of BWP�s proposed commercial shade tree program, BWP would like to partner with the City�s Forestry division in promoting and sponsoring the Tree Stewardship Program.  To date, the long-standing Tree Stewardship Program has been little used.  About ten trees are planted annually through this program.  Forestry has a Fiscal Year 2004-05 work program goal of planting 50 trees in commercial areas.  In hopes of increasing the visibility and use of this commercial street tree program, BWP will include information on the Tree Stewardship Program as it markets the commercial shade tree program.  Additionally, BWP will pay the $55 per tree cost of Tree Stewardship thereby allowing Forestry to waive the cost to the business.  The program as managed by the City�s Forestry group will continue running as usual in all other respects.  This includes providing trees to existing properties only as new developments are mandated to plant shade trees. 

2.         Tree Plantings in Selected Commercial Corridors Design

Burbank�s Community Development Department (CDD) has been charged with improving specific commercial corridors, in part by planting significant numbers of trees in those corridors.  Funding provided by BWP to assist in this endeavor would allow for the purchase of additional trees, larger trees, or a combination of the two. 

Several corridors would benefit from funding provided by BWP under this proposed shade tree corridor program.  Four streetscape enhancement programs are currently on CDD�s plate: south San Fernando Boulevard, Burbank Boulevard, Ovrom Park, Victory Boulevard.

BWP staff would work with CDD staff annually to determine specific projects that can benefit from additional shade tree plantings and budget accordingly. 

Anticipated Participation Rates and Program Costs for the Business Design

It appears that just two southern California utilities currently offer shade tree programs for businesses: Anaheim Public Utilities and Riverside Public Utilities.  Riverside Public Utilities pays cash rebates of up to $50 per tree for no more than five trees.  Anaheim�s commercial shade tree program is very flexible, providing businesses with as many free 15-gallon trees as can be used for shade, �within reason.�  Anaheim has provided 247 trees to 39 businesses over the past two fiscal years, an average of six trees per participating business. 

In creating any new program, it can be tricky estimating what the participation rate will be and what is therefore reasonable to allocate for program costs.  Applying the 2% FY 2003-04 Made in the Shade success rate (745 Burbank households participated out of the total 45,000 households in Burbank) to the approximately 5,000 businesses located in Burbank results in about 100 businesses that might be expected to participate in a commercial shade tree program.  Staff believes it to be highly unlikely that this many would participate given the assumption that many if not most businesses would find shade trees to be a detriment to their business.  BWP anticipates no more than 20 businesses participating in the shade tree program during Year One. 

With up to twenty free shade trees provided per participating business, as much as $1,000 could be spent per customer.  To fully serve 20 businesses at this level would require a $20,000 allocation.  This amount is inclusive of all customer interaction aspects of the program.  This includes taking customer calls, scheduling and conducting the meeting at the customer�s business location, answering all customer questions on proper tree planting and maintenance, diagramming all tree selections and planting sites, placing the tree order with the nursery, delivery of trees and planting supplies, and providing BWP staff monthly spreadsheets of participant information.  In short, the consultant will serve as an extension of BWP and the City of Burbank and will provide professional expertise and excellent customer service.   

BWP is also proposing to assume the $55 per tree cost of the City Forestry Tree Stewardship Program.  With a goal of 50 commercial street trees planted under this program, the cost to BWP would be as high as $3,000.  

A total of $25,000 is recommended to be allocated to cover all costs of the proposed commercial shade tree program for Fiscal Year 2004-05. 

Program Costs for the Commercial Corridor Design

Projected costs for this element of BWP�s proposed Commercial Shade Tree Program will vary from fiscal year to fiscal year depending on what commercial corridor enhancement projects are underway.  A safe assumption is that whatever funding BWP can provide to CDD for shade trees will be put to good use!

The Fiscal Year 2004-05 approved budget includes $75,000 to fund the proposed Commercial Shade Tree Program.  An additional $25,000 is being redirected to the Commercial Shade Tree Program.  These dollars were originally earmarked for a possible second compact fluorescent light fundraising program for Burbank�s School District.  However, with the School District still selling lights from the first fundraising program, the dollars were available for reprogramming.  With $25,000 earmarked for businesses wishing to participate directly in the program, $75,000 remains for commercial corridor tree plantings.  At BWP�s $36 average per tree cost (inclusive of tree, delivery, stakes, ties and arbor guards), $75,000 would provide for nearly 2,100 15-gallon trees.  However, when funding permits, CDD is more likely to specify larger tree sizes for streetscape enhancement projects as a means of providing maximum visual impact.  Not only do larger-sized plantings offer an instant aesthetic enhancement, but they help provide additional benefit to the pedestrian experience as well as provide greater relief to the �heat island� effect discussed earlier.  Based on cost estimates for the South San Fernando Boulevard Streetscape Project, CDD staff provided the following estimates for larger tree sizes, inclusive of planting costs.  The numbers in parentheses reflect the number of trees that could be purchased with the proposed level of financial support for fiscal year 2004-05:

36� box trees, small median trees                           $  750             (100)

36� box trees, specimen parkway trees                 $  950             (79)

Larger trees are available, including 48� box trees with an installed price tag of $1,600 and 60� box trees that cost $3,000.  In instances where trees cost over $1,000, BWP would match CDD funds so that both departments would share the investment in the largest trees. 

Regardless of the final tree size(s) selected for the various enhancement projects, BWP�s proposed $75,000 financial support for the purchase and installation of trees for streetscape enhancements would go a long way in helping to achieve the City�s goal to plant a significant number of trees along high-traffic corridors. 

Why this Program Makes Sense for BWP

Studies state that the energy savings associated with trees planted around air conditioned structures are 10% to 50% of the air-conditioning bill.  Multiply these annual savings by the long life of a tree and one can see that energy savings will be reaped for many years to come.  Moreover, planting trees along business corridors with higher traffic volumes can do much to limit the negative environmental impact of heat islands. 

Bottom line, the commercial shade tree program as designed is a win for all concerned.  From the business customer�s perspective, free shade trees will reduce their energy bills while providing an aesthetic benefit.  From BWP�s perspective, all costs are incurred during Year 1 of the tree�s life with the utility reaping the benefit of avoided power supply costs during summer peak load periods for thirty years or more thereafter.  From an environmental perspective, any kilowatt of energy that is displaced means improved air quality from reduced emissions.  Given all this, it�s easy to see that tree-planting programs provide effective energy demand-side management.  As such, they qualify as Public Benefits expenditures.  

FISCAL IMPACT STATEMENT

Sufficient funds are available in the Fiscal Year 2004-05 Public Benefits budget to support this program as outlined.   

RECOMMENDATION

Staff requests that the City Council endorse staff�s recommendations for the Commercial Shade Tree Program as outlined in this report. 

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