Consideration and Approval of Contract:  Supplemental Agreement for Forest Treatment operations on Section 6 of the Observatory Mesa Natural Area by Perkins Timber Harvesting LLC.

Approval of this Supplemental Agreement will ensure needed initial forest treatments on 540 acres of city owned land within the Observatory Mesa Natural Area (OMNA), located within the Flagstaff Watershed Protection Project (FWPP) area.  In 2015, Perkins Timber Harvesting LLC was awarded the initial 475 acres of work within OMNA (Section 18) and has now satisfactorily completed the required work (Cutting/Decking of wood, Grinding of debris, and Removal of grindings). Perkins initial bid and subsequent  award for the Section 18 work allowed for additional work to be assigned upon satisfactory completion, at the same cost for the same services (cutting and decking, grinding, and removal).   Based upon his performance within Section 18, and his interest in doing the reuqired work in Section 6, the subsequent Supplemental Agreement for the 540 acres within Section 6 is both warranted and to the advantage of the City.

Of the total not-to-exceed award of $414,052.40 (540 acres of forest treatment work), the distribution breakout of City Bond-and-Grant provided funds are as follows:

• City Bond Funds (FY2016 budget of $3,289,325 in account number 407-09-425-3277) - $180,952.40 (match for both AZ State Forestry grants, + remaining 88 acres within parcel)
• AZ State Forestry Western Bark Beetle Initiative grant (WBBI-15-601 and account number 407-09-425-6201) - $98,100 (256 acres)
• AZ State Forestry Wildland Fire Hazardous Fuels grant (WFHF-15-202 and account number 407-09-425-6204) - $135,000 (200 acres)

The availability of the State Forestry provided grant funds will save the City $233,100 in Bond money. 
 

This effort  addresses the following -

COUNCIL GOALS:
3) Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics,
7) Address key issues and processes related to the implementation of the Regional Plan,
11) Ensure that we are as prepared as possible for extreme weather events.
 
REGIONAL PLAN:
Environmental Planning & Conservation – Vision for the Future:  In 2013, the long-term health and viability of our natural resource environment is maintained through strategic planning for resource conservation and protection.
Policy E&C.3.3 – Invest in forest health and watershed protection measures.
Policy E&C.6.1 – Encourage public awareness that the region’s ponderosa pine forest is a fire-dependent ecosystem and strive to restore more natural and sustainable forest composition, structure, and processes.
Policy E&C.6.3 – Promote protection, conservation, and ecological restoration of the region’s diverse ecosystem type and associated animals.
Policy E&C.6.6 – Support collaborative efforts for forest health initiatives or practices, such as the Four Forest Restoration Initiative (4FRI), to support healthy forests and protect our water system.
Policy E&C.10.2 – Protect, conserve, and when possible, enhance and restore wildlife habitat on public land.
 

Yes, Council approved the original contract on 7/21/2015 to Perkins Timber Harvesting Inc. for Observatory Mesa Hazardous Fuels Thinning, the original contract allowed subsequent purchases/contract work for the same terms and conditions as submitted in the bid, for a period of twenty-four (24) months from the date of City Council approval.

In addition, Council has been engaged in the Flagstaff Watershed Protection Program bond issue when it was approved to be presented to the voters (summer 2012), and has approved other grant awards and contracts related to FWPP, and has been kept updated on issues throughout the overall effort.   
 

Options and Alternatives:
Four options exist:

1. Approve the Supplemental Agreement/Scope of Work, permitting the forest treatment work to proceed as planned:  Pro – This allows the work to proceed as planned and permits full-use of the grant funds.


2. Revise the proposed forest treatment work (type, or extent):  Con – Associated cost and delays to proposed work, plus will not meet intent of severe wildfire risk reduction and post-fire flood impacts;


3. Discard the Supplemental Agreement,  and request a new bid process be opened with the intent/goal of achieving more favorable costs:  Pro – costs may decrease (uncertain); Con – risk shortening the operational window and not achieving required acreage deliverable (termination date cannot be extended);


4. Reject the need to conduct forest treatments on Observatory Mesa and/or the need to accept funding to help off-set the cost of the work:  Con – Wildfire and insect risk continues unabated, will actually increase over time, puts forest sustainability in jeopardy, and results in voter direction left unmet.
    

Damage and loss of our forests from destructive wildfire and insect infestations are ever-present threats to our community.  Areas that have undergone proactive forest treatments (ie – thinning, debris disposal, and/or prescribed/managed fire) are not only healthier and more resilient to damaging agents, they also provide a barrier to the spread of these agents once they do become established.  Such treated areas enhance public safety, ensure infrastructure protection, and safe-guard community well-being.   Within our community and immediate area, the Woody Fire (2005), Hardy Fire (2010), and Slide Fire (2014) dramatically demonstrate the value of these treatments: the Schultz Fire (2010) shows what can happen when such treatments are not in-place. 

The OMNA and the forest treatments that are planned, and that have occurred, were presented during the bond campaign leading-up to the election, as part of the overall goal, area, and effort that would occur with passage of the measure.   Regardless of location or casual factor, insect infestations are always difficult to manage.  Wildfires on Observatory Mesa are a challenge due to access, lack of on-site water supply, adjacent neighborhoods, and other factors.  Recovery efforts undertaken following a damaging event are always reactive in-nature, expensive, and never are able to fully restore a natural environment.  Proactive completion of forest treatments have proven highly effective in reducing occurrence and severity of these damaging events, and of ensuring the sustainability of our forested environment. 

We anticipate the total per-acre cost to conduct this operation – from site set-up to final debris disposal following cutting – to be $771/acre.  Combining two grants with city bond funds substantially reduces the cost to city taxpayers by upwards of $335 per acre (46% of total expected cost).  
 

Multiple partners have been engaged in the FWPP effort since its inception, and these partnership efforts have continued throughout planned and completed work on the OMNA.  Working with City Staff, the AZ State Forestry Division was the principle author of the OMNA Forest Stewardship Plan.  AZ Game & Fish Department, US Fish & Wildlife Service, and NAU's Ecological Restoration Institute provided input and review.  The Nature Conservancy, Greater Flagstaff Forests Partnership, US Forest Service, private consultants, and NAU's School of Forestry have all been on the OMNA during-and-following other forest treatments providing feedback.  Completion of the forest treatment work funded by this grant award will protect adjacent neighborhoods, recreational opportunities, and wildlife habitat, while promoting forest resiliency and sustainability.

Inform – Following the 50 campaign events leading up to the bond election (Nov 2012), we have continued to work at keeping the community informed of what we are doing, and why.  The Project website (www.flagstaffwatershedprotection.org) is one way: numerous news stories have also been crafted and/or otherwise reported.  Impromptu and announced field trips have been conducted, most recently during the Festival of Science: OMNA stakeholder members, city staff, and Council members have also been provided tours.  City staff has interacted with numerous individuals hiking, running, or biking through the area, as well as with other community members interested in the work.  The OMNA Stakeholder Group and the Friends of the Rio have been briefed.  Information boards have established, and continue to be maintained, where the Urban Trail crosses the site and where roads enter the parcel. 
 
Consult – We’ve worked with both AZ Game & Fish and US Fish & Wildlife Service to protect habitat, with adjacent neighborhoods regarding access, the US Forest Service regarding transportation routes, Kinder Morgan/El Paso Natural Gas and the Snowbowl regarding pipeline crossings, and AZ State Forestry regarding plan development. 
 
Involve – Following treatment work on other OMNA sites, both the public and the Winter Wood For Warmth program have been engaged in removing firewood for use and distribution to area/regional residents.  A few individuals who have raised issues about the work have been engaged directly by staff from NAU’s Ecological Restoration Institute to provide context and a more complete understanding of the need, and the work, itself.  Other City Staff, including those from Sustainability and Stormwater, have also been engaged.  Community members have also been hired as seasonal Fire Dept crew members and have been engaged in conducting some of the work itself. 
 
Empower – The planned forest treatments are part of a larger effort underway in our area and throughout northern AZ.  We and our many partners have been engaged for nearly two decades in this work, on various jurisdictions and site conditions, and have utilized a variety of prescriptions and approaches to ensure we have a full-suite of treatments across the greater landscape.  The work to be funded by this award is based upon credible and proven science-based forest restoration and hazard fuel management standards and knowledge.  It adheres to guidelines established in the Greater Flagstaff Area Community Wildfire Protection Plan (City & County - 2005), is consistent with forest treatments designed and implemented by the Greater Flagstaff Forests Partnership (1999-present) and the City of Flagstaff Wildland Fire Management program (1998-present), meets the goals of the State of AZ 20-Year Strategy (2007), is consistent with the required actions identified in both the initial and final Observatory Mesa Forest Stewardship Plan (2013 and 2015, respectfully) and both the Four Forests Restoration Initiative's and the Flagstaff Watershed Protection Project's Final Records of Decision (USFS - 2015).  Further, it meets grant requirements for post-treatment conditions.