Skew, I'll try to give you my take on the city side of things. I am in no way trying to justify the treatment you have recieved, just the opposite, I am on your side in this case. Mark C. take note, I'm about to wax poetic... I think.
Most tree ordinances are put into place by well meaning people who want to make the community a better place to live and work. A place that will draw people and business/industry so that the community thrives. Something we all want. Unfortuately those ordinances don't administer themselves so staff are needed to to do that. There are usually two departments where the city arborist finds his home, arks and rec or public works. Personally, I prefer to see the arborist in the public works area for several reasons. Any good tree ordinance will undergo periodoc review and updating to keep pace with changing community views and standards. The city I currently work for did this in 2002 and has included to tree ondinance into a Unified Development Ordinance that encompasses all planning, engineering, inspection and codes departments as well as urban forestry. This enables minor tweaking to be easily accomplished with relative ease, although the council still has the final say. The 2002 revamp established the requirement for all new commercial AND residential development to provide a tree protection and replacement plan as a art of the development plan. This plan is to be included with the civil site engineering drawings and is reviewed, commented on and final plans approved before any dirt is turned. It took a bit on PR get get the local developers and grading contractors on board but it has been done. This is the main part of my job along with the enforcement site periodic and final inspections and other duties. As with your city, mine also requires tree service businesses to either have an ISA Certified Arborist on staff or pass a city administered test before they can even obtain a business license. This test is administered by me and was developed directly from the CA study materials using the study and sample questions. I am a sworn enforcement officer and I can issue citations for any violation of the tree ordinance and business license ordinance, or in the case of development projects, shut down all operations until they come into compliance. In eleven years I have shut down only one development project for non-compliance. There are a number of jack leg tree services that are unlicensed that are operating usually on weekends that occasionally I am able to cite. My view is the anyone presenting themselves as a business and operating as such must assume the responsibility of complying with all local requirements for business licensing. When I catch one of these jack legs, they are cited, no mercy, and must appear in court. I will with a first time offender, set a long court date so that they can have at least one opportuntiy to take the city test. For repeat offenders, a short court date is set. Even at that they still may be able to take the test since there are only two day a month for our environmental court.
On the develoment side, my attitude is, these projects do not put any revenue into the city until the businesses are open and turning a profit. Since I don't get paid if the city doesn't have revenue coming in, it behooves me to do all I can to help that contractor get his project finished so that the revenues start coming in. When I do this, everybody wins at least in theory. Usually the council has other ideas for the revenue besides my paycheck.
Regarding your comment about the city arborist doing consulting on private property, my opinion is that it is unprofessional while on the city clock. It may even be illegal, at least in some states. Thats a question for someone else to answer, not me. In my position, I am one of 4 or 5 CA's in the city and the only one with real arboricultural experience. The others just managed to pass the test. As such, I get a lot of calls for consulting type work which I do as a side business which is properly licensed. I also do limited preservation work as well. There are no private companies locally with CA's, not do they do any of the type of work I do so I'm not attempting to be in direct competition with them. When I get these types of calls on my city phone, I stop the conversation and have the caller contact me on my personal phone and wait til I am off the city clock to contact the person. My supervisors and department heads know I do this tye of work and have not had any issue with it.
Bottom line is my job is to serve the citizens as best I can to manage and enforce the ordinances they have determined to be important to the wellbeing of the community and to make my knowledge and experience available to accomplish that goal.
My opinion of the guy you have to deal with is that the guy is on a power trip and needs to retire or be fired. I'm not sure that running for council would be your best move. There are a ton of headaches involved there that you may not like.