City Council - Regular Meeting

City of Bellingham City Council Regular Meeting Minutes 05/19/2014, 7:00 PM Mayor Kelli Linville Contact: (360) 778-8200, ccmail@cob.org Council Members Jack Weiss, Gene Knutson, Cathy www.cob.org/council Lehman, Pinky Vargas, Terry Bornemann, Michael Lilliquist All meetings are held in the City Hall Council Chambers at and Roxanne Murphy 210 Lottie Street, Bellingham, WA unless otherwise noted. Call to Order Announcements & Upcoming Meetings: Bellingham City Council meets all requirements of the State of Washington Open Meetings Act. Pledge of Allegiance Led by Council President Lehman Roll Call All present (Council Member Knutson left meeting after AB 20382). 15-Minute Public Comment Period The following citizens support the rental safety ordinance. Many of them shared their experiences as renters. [AB 20382]: Kaylee Galloway Luke Kosbob Graham Marmion Josie Ellison Matt Bobbink Nic Doherty Jazzé Smith Caylyn Rolph-Tate Wendy Harris Joseph Levy exhibited a petition with approximately 1,160 signatures in support of the rental safety ordinance [AB 20382]. He said he will come back with more signatures. City of Bellingham Regular City Council Meeting Page 1 of 13 5/19/2014  Lew Stevenson discussed the rental safety ordinance [AB 20382] and submitted questions to the council regarding the proposed ordinance and discussed constitutional amendments and civil rights. Cal Leenstra spoke in opposition to the rental safety ordinance [AB 20382]. He believes this is nothing more than a tax on tenants, a regressive tax and ill-conceived legislation. Wendy Harris expressed concerns about Dioxin on the waterfront and asked, "why are we entering into a Consent Decree when we don't know what the final cleanup plan is" for the Cornwall Landfill? Also, she said, the Consent Decree is leaving out an important property owner, the Lummi's. Their rights are being ignored and they are objecting to almost everything that is planned for the waterfront. Get them involved now. Tim Cornwell spoke in opposition to landlord licensing [rental safety ordinance AB 20382] and in favor of enforcement of the complaints. He said, Washington State Landlord Tenant law does not allow a code enforcement official to enter a premises without a search warrant and referenced RCW 59.18.150, and he expressed unease about potential law suits. He would prefer that the city allocate more resources for enforcement. Claudia DeWees addressed access issues for the new Costco directly across from Fred Meyer's [Bakerview] west entrance. She reiterated that the petition, submitted previously to the City Council, asked that the city change the planned access point to the new Costco. Public Hearing 20388 1. Public Hearing on proposed ordinance repealing the B&O tax exemption for nonprofit religious healthcare providers and adopting healthcare-specific deductions and exemptions contained in the Washington State B&O tax code The following citizens addressed the Council with regard to a possible compromise tax proposal between the City of Bellingham and PeaceHealth St. Joseph's Medical Center (PHSJ). Barbara Lupo, PHSJ Board Member, spoke in support of a compromise tax proposal. Ron Bucinski, Lighthouse Mission, spoke in support of a compromise tax proposal. Roland Trenouth said a B&O tax will compromise health care in the community. City of Bellingham Regular City Council Meeting Page 2 of 13 5/19/2014  Bree Johnston, Director, PHSJ Palliative Care, spoke in support of a compromise tax proposal. Scarlett Strengholt, RN, PHSJ, spoke in support of a compromise tax proposal. Gary Wynja shared his personal story of PHSJ working with him on a large medical bill that allowed him to pay them back at a pace that was possible for him. Curtis Smith, representing the Dental Society, spoke in support of a compromise tax proposal. Nancy Tieman, Executive Team at PHSJ spoke on behalf of Nancy Steiger, Chief Executive Office and Chief Mission Officer. She described the mission, the values of their not for profit hospital and their networks of care where PHSJ has networked with United General in Sedro Woolley, Peace Island in Friday Harbor and Ketchikan Medical Center in Alaska. Their aim is to provide routine services close to home. PHSJ is a very sophisticated and state of the art hospital and part of what sustains these services is their successful network grow strategy. That also means growth for many business in Bellingham. Organizing into networks of care is just one way they are preparing for the future of health care. They are in relationship with the community, and have been in collaboration with the City of Bellingham for decades. She asked that the City not abandon this vital partnership. Jennie Crews, Oncology, PHSJ spoke in support of a compromise tax proposal. Rachel Lucy, Director of Learning and Development, PHSJ, cited the many nonprofit organizations that use the Education Center. They are able to meet there for free; an example of how PHSJ supports the larger network of nonprofits in the community. She is concerned that a vote for the tax will, by necessity, force PHSJ to step back and question how things like the free use of the Education Center can be sustained. Scott Dorough, Resource Conservation Manager, PHSJ, asked that the city consider the possible unintended consequences that may occur to non-clinical, non-mandatory voluntary programs like energy conservation and recycling in order to offset any financial losses if new taxes are imposed. PHSJ has invested hundreds of thousands of dollars in conservation projects over the last 7 years. Due to their conservation efforts they were recently awarded the EPA's Energy Star Certification. Recycling also carries favorable environmental impacts but unlike energy conservation recycling has no return on the investment. Adjustments to these programs would also have a secondary impact to local jobs. Lars Crabo, Radiologist/Physician, spoke in support of a compromise tax proposal. City of Bellingham Regular City Council Meeting Page 3 of 13 5/19/2014  Maryanne Scott , Vice President, Peace Health Medical Group responded to two questions that have been posed by members of the council: 1) Why does Peach Health, which operates as a not for profit organization need to have a margin? A capital reserve allows PHSJ to support changes in medical and computer technology - both absolutely crucial. 2) Why does Peace Health need to acquire medical practices? Ms. Scott read a statement from Jim Boxler a practicing pediatrician from Peace Health Medical Group: "I was the President of Madrona Medical Group when the decision was made to join Peace Health. It was Madrona's leadership that approached Peace Health about joining together. This was due to changes that we saw occurring in the financial sector at that time (2007) and this made it difficult for us to get capital for needed investments, specifically an electronic medical record [system]. We felt that joining Peace Health would minimize the disruptions and the departures that would eventually have occurred if we had asked our physicians to take this pay cut for the investment." Physicians voted unanimously to join Peace Health in July, 2008. Peace Health's mission is to promote individual and community health. If it weren't for Peace Health's willingness to purchase Madrona Medical Group, Bellingham would have lost the services of many of dedicated and high-quality physicians and medical specialists. Bob Diehl, spoke in support of a compromise tax proposal. Judy Ziels said tax breaks allow this organization to provide charity care; while other benefits from PHSJ are redirected revenues that goes to a variety of well-known nonprofits here in Bellingham. Continuing to provide some form of tax break to PHSJ, will allow the organization to continue to contribute in a very unique way to the health of our community. Brian Griffin, spoke in support of a compromise tax proposal. Dale Zender, Chief Administrative Officer, PHSJ and Chief Financial Officer, Northwest Network, explained that their 8% operating margin allows them to reinvest in their organization, which includes reinvesting in modern capital equipment critical to providing high quality care. He supports a compromise tax proposal. Theresa Meurs leads a street outreach at Hope House and shared stories of homeless people who do not have any medical coverage but are treated with care and dignity at City of Bellingham Regular City Council Meeting Page 4 of 13 5/19/2014  PHSJ. She said, please don't make it more difficult for PHSJ to operate here in Bellingham; they carry a lot of the burden of this community and we need them. Find another way to pay for another park for our homeless to sleep in. Cathy Boyd representing NAMI (National Alliance on Mental Illness) and advocating for people who suffer from mental illness. She said, we need the mental health resources in this community and to have this tax would be horrible. The city needs to be conscious of what the needs are of the people in the community. Hopefully, the city can find another way to have funds come in. Carole Jacobson discussed the proposal at length. She noted that profits are to be reinvested to the good of the community and feels that St. Joseph and Peach Health are incompatible partners. Peace Health frets over profit margins while with expanded Medicaid, the Affordable Care Act and baby boomers applying for Medicare, the poor and the sick are administered to. She does not believe the nuns received a salary but stated that administrators have received six figure salaries and bonuses and board members receive a generous annual honorarium; an unheard of perk in local nonprofits. She said, let's apply the 0.44% tax to all nonprofit health care providers. Abe Jacobson is pleased that the City appears to be backing off from a religious criterion for tax abatement. Such a distinction is operationally vague and illegal under the first amendment establishment clause. He feels a fair and completely legal way to proceed is to apply a straight 0.44% B&O tax to all nonprofit healthcare providers equally and use state defined exemptions for all government funded programs such as Medicare, Medicaid and other government funded programs. Peter Theisen, CEO, United Way of Whatcom County, spoke in support of a compromise tax proposal. BREAK Council President Lehman called the meeting back to order at 8:49 p.m. Stephen Washchke, spoke in support of a compromise tax proposal. Gary Smith, Psychiatrist said that most of the patients that come into the Behavioral Health Unit at St. Joseph's are covered by Medicaid. He gave an example of a patient whose care was 'managed' by Medicaid and payment is still in litigation. Anna Williams spoke in support of a compromise tax proposal. Larry Thompson, Executive Director, WAHA (Washington Alliance for Healthcare Advancement) spoke in support of a compromise tax proposal. Bonnie Trenouth, spoke in support of a compromise tax proposal. City of Bellingham Regular City Council Meeting Page 5 of 13 5/19/2014  Jeff Corsentino, Pharmacy Director at PHSJ, described how PHSJ has a significant investment in the proper disposal of medications, which takes a significant amount of money, manpower and time. Additionally when patients are discharged who are not able to afford their medications, the hospital helps to subsidize the medications that they need. PHSJ is the safety net for the community, he said. Diana Kurth, Physical Therapist, encouraged a continued relationship between the city and the hospital and prefers no tax. Randy Frank, Psychiatrist, spoke in support of a compromise tax proposal. John Asmundson opposes the compromise and noted that many communities are taxing themselves and their surrounding citizens in order to provide money to their nonprofit hospitals. The taxes are then used by the hospital, while a B&O tax would be used for non-medical purposes. Byron Manering, Executive Director, Brigid Collins Family Support Center spoke in support of a compromise tax proposal. Shawn Higbee, Occupational Therapist, PHSJ spoke in support of a compromise tax proposal. Don Ernest spoke highly of PHSJ and asked the city to examine other means of raising revenue and avoid undermining the work of PHSJ in the community. Fr. Scott Connolly, Assumption Church, spoke in support of a compromise tax proposal. Dave Nichols, Board Member, PHSJ, spoke in support of a compromise tax proposal. Crystal Wright shared her experience with working in health care where she did not have good health care coverage until she started working at PHSJ. She is thankful that PHSJ is providing great insurance to its employees and said it is a wonderful testament to how they are run and how they treat their employees. Terri Christie, Trauma Program Manager, said PHSJ has a commitment to a high level of care for trauma patients and disaster preparedness. She does not support any tax. Christy Jensen, Assistant Unit Manager, PHSJ provides a benefit to all of the community. Jack Weiss/Terry Bornemann moved to direct staff to schedule a follow up worksession with the Committee of the Whole on June 9th. MOTION CARRIED 7-0. City of Bellingham Regular City Council Meeting Page 6 of 13 5/19/2014  BREAK Council President Lehman called the meeting back to order at 9:39 p.m. Planning 20382 1. A work session on a draft ordinance to establish a rental registration program Direction was provided to staff to incorporate items from the motion made by Council Member Knutson during committee and items that Legal staff are currently working on and then bring back to council. Council Member Knutson's motion included: free audit inspections; registration but no annual fee of owner-occupied duplex and ADU properties, government owned/managed housing; display of registration, sunset provisions, and changing the name to Residential Safety Program. The Planning Committee will review the amendments on June 9 and provide a final recommendation to the Council shortly thereafter. Council Member Knutson left the meeting. Public Works / Public Safety 20418 1. Bid Award for 25th Street Bike and Pedestrian Improvements (ES- 0479), Bid Number 25B-2014 Terry Bornemann / Michael Lilliquist moved to award Bid No. 25B-2014 for 25th Street Bike and Pedestrian Improvements to Faber Construction of Lynden, Washington as the lowest responsive, responsible bidder and to authorize the Mayor to enter into a contract with them for the amount of their bid, which is $1,235,413.76, and which includes any applicable WSST. MOTION CARRIED 6-0. 20419 2. Proposed Ordinance Amending Bellingham Municipal Code 15.12 to Adopt Requirements for Mandatory Sewer Service Connections "AN ORDINANCE OF THE CITY OF BELLINGHAM, WASHINGTON AMENDING BELLINGHAM MUNICIPAL CODE 15.12 TO ADOPT REQUIREMENTS FOR MANDATORY SEWER SERVICE CONNECTIONS." Terry Bornemann / Jack Weiss moved to approve for first and second reading. MOTION CARRIED 6-0. City of Bellingham Regular City Council Meeting Page 7 of 13 5/19/2014  Finance and Personnel 20420 1. Amend the 2014 Information Technology budget by reclassifying one position "AN ORDINANCE ADDING A NEW CLASSIFICATION TO THE E TEAM SALARY PLAN AND AMENDING THE 2014 BUDGET BY RECLASSIFYING ONE POSITION IN THE INFORMATION TECHNOLOGY SERVICES DEPARTMENT, GENERAL FUND, WHERE NO APPROPRIATION OR REALLOCATION OF FUNDS IS REQUESTED TO PROVIDE FOR THE ADDITIONAL COST." Michael Lilliquist / Roxanne Murphy moved to approve for first and second reading. MOTION CARRIED 6-0. 20421 2. 2014 First Quarter Financial Report Information only. 20422 3. Ordinance and Resolution authorizing City's acquisition of six ambulances "AN ORDINANCE OF THE CITY OF BELLINGHAM AUTHORIZING THE ACQUISITION OF SIX (6) AMBULANCES AND EXECUTION OF A FINANCE CONTRACT AND RELATED DOCUMENTATION RELATING TO THE ACQUISITION OF SAID AMBULANCES." Michael Lilliquist / Terry Bornemann moved to approve for first and second reading. MOTION CARRIED 5-1. Opposed: Jack Weiss "A RESOLUTION IN SUPPORT OF THE CITY OF BELLINGHAM'S APPLICATION TO PURCHASE SIX (6) AMBULANCES THROUGH THE WASHINGTON STATE TREASURER'S OFFICE LOCAL OPTION CAPITAL ASSET LENDING (LOCAL) PROGRAM." Michael Lilliquist / Terry Bornemann moved final approval of Resolution #2014-19. MOTION CARRIED 6-0. City of Bellingham Regular City Council Meeting Page 8 of 13 5/19/2014  Committee Of The Whole 20424 1. A joint Resolution of the Bellingham City Council and Whatcom County Council recognizing the 40th year anniversary of Whatcom Medic One "A JOINT RESOLUTION OF BELLINGHAM CITY COUNCIL AND WHATCOM COUNTY COUNCIL RECOGNIZING WHATCOM MEDIC ONE FOR 40 YEARS OF PROVIDING ADVANCED LIFE SUPPORT SERVICE THROUGHOUT THE CITY OF BELLINGHAM AND WHATCOM COUNTY." Cathy Lehman / Terry Bornemann moved final approval of Resolution #2014-20. MOTION CARRIED 6-0. 20425 2. Estimated Costs of Environmental Liabilities Information only. 20426 3. Consideration of the Consent Decree for the Cornwall Avenue Landfill Cathy Lehman / Terry Bornemann moved to authorize the Mayor to enter into the Consent Decree for the Cornwall Avenue Landfill Site. MOTION CARRIED 6-0. 20427 4. An Ordinance amending Bellingham Municipal Code 17.10 to adopt by reference the 2014 National Electric Code and to make other minor code amendments "AN ORDINANCE AMENDING BELLINGHAM MUNICIPAL CODE (BMC) CHAPTER 17.10 TO ADOPT BY REFERENCE THE 2014 EDITION OF THE NATIONAL ELECTRICAL CODE AND TO MAKE OTHER MINOR AMENDMENTS TO BMC CHAPTER 17.10." Cathy Lehman / Jack Weiss moved to approve for first and second reading. MOTION CARRIED 6-0. 20428 5. Resolution specifying the line of succession for signing documents in the Mayor's absence City of Bellingham Regular City Council Meeting Page 9 of 13 5/19/2014  "A RESOLUTION SPECIFYING THE LINE OF SUCCESSION FOR SIGNING MAYORAL DOCUMENTS." Cathy Lehman / Terry Bornemann moved final approval of Resolution #2014-21. MOTION CARRIED 6-0. 8. Old/New Business [this item occurred out of order]. Terry Bornemann / Pinky Vargas moved to authorize the Council President to sign a letter supporting a nomination for the City of Bellingham staff for the Comprehensive Planning Award from the Planning Association of Washington and the American Planning Association for the Downtown Waterfront District Subarea plan, on behalf of the City Council. MOTION CARRIED 6-0. Terry Bornemann / Michael Lilliquist moved to ask the Mayor to work with the Council President to create the position of Senior Policy Analyst to replace the position of Legislative Policy Analyst. MOTION CARRIED 6-0. Michael Lilliquist asked that a TDR program be discussed with Whatcom County. Jeff Thomas said that staff would set aside time for this discussion during the proposed scope and schedule for the Comprehensive Plan update in June. 20423 6. Policy Priority Discussion Information only. 7. Approval of Minutes Jack Weiss / Terry Bornemann moved to approve the minutes of the April 21, 2014 and May 5, 2014 regular meeting minutes. MOTION CARRIED 6-0 Item 8 moved to follow item 5. Executive Session 1. Potential Litigation: Staff provided information on a potential litigation matter. Information only. No action taken. 2. Potential Property Acquisition: Staff provided information on a potential property acquisition. Information only. No action taken. City of Bellingham Regular City Council Meeting Page 10 of 13 5/19/2014  3. Potential Property Acquisition: Staff provided information on a potential property acquisition. Information only. No action taken. Mayor's Report Mayor Linville noted that the State Transportation Commission will be meeting in Council Chambers on May 20th with testimony provided by staff. Mayor Linville expressed condolences for the family of the child who died at Whatcom Falls. She said that staff is reviewing the incident and thanked the first responders. 20429 1. Mayor's reappointment of Charles Law and Terri Clark to the Mayor's Neighborhood Advisory Commission Information only. 20430 2. Mayor's reappointment of Tim Crandall to the Transportation Commission (Approval) Jack Weiss / Roxanne Murphy moved to approve the Mayor's reappointment of Tim Crandall, term ending May 9, 2017. MOTION CARRIED 6-0. Consent Agenda All matters listed on the Consent Agenda are considered routine and/or non-controversial items and may be approved in a single motion. A member of the Council may ask that an item be removed from the Consent Agenda and considered separately. 20431 1. Management and disposal of incinerator ash - Bid Award #26B-2014 20432 2. Aluminum Sulfate Bid Award #27B-2014 20433 3. Polymer for Water Treatment Plant Bid Award 29B-2014 20434 4. Authorization of Payroll labor cost payments date April 26, 2014 - May 9, 2014 20435 5. Authorization of A/P checks issued April 25, 2014 20436 6. Authorization of A/P checks issued May 2, 2014 City of Bellingham Regular City Council Meeting Page 11 of 13 5/19/2014  20437 7. Authorization of A/P checks issued May 9, 2014 Pinky Vargas / Jack Weiss moved approval of the Consent Agenda in its entirety. MOTION CARRIED 6-0. Final Consideration of Ordinances 20405 1. AN ORDINANCE ADDING A NEW CLASSIFICATION TO THE E-TEAM SALARY PLAN AND AMENDING THE 2014 GENERAL FUND BUDGET BY DELETING ONE POSITION IN THE LIBRARY, CREATING A NEW POSITION AND REALLOCATING EXPENDITURES TO PROVIDE FOR RELATED COSTS. Bornemann / Weiss moved approval for third and final reading. Upon motion, said bill was placed on final passage and approved by the following roll call vote: AYES: BORNEMANN, LEHMAN, LILLIQUIST, MURPHY, VARGAS, WEISS NAYS: EXCUSED: KNUTSON MOTION CARRIED 6-0 and was thereafter named Ordinance #2014-05-025 20406 2. AN ORDINANCE AUTHORIZING REDEMPTION OF QUALIFIED ENERGY CONSERVATION BONDS IN THE AMOUNT OF $380,000.00 USING THE REMAINING BOND PROCEEDS IN THE FACILITIES ADMINISTRATION FUND ESTIMATED ENDING RESERVE BALANCE, AND TRANSFERRING $2,824.36 TO THE 2011 QEC BOND FUND ESTIMATED ENDING RESTRICTED RESERVE. Lilliquist / Murphy moved approval for third and final reading. Upon motion, said bill was placed on final passage and approved by the following roll call vote: AYES: BORNEMANN, LEHMAN, LILLIQUIST, MURPHY, VARGAS, WEISS NAYS: EXCUSED: KNUTSON MOTION CARRIED 6-0 and was thereafter named Ordinance #2014-05-026 City of Bellingham Regular City Council Meeting Page 12 of 13 5/19/2014 Adjournment There being no further business, the meeting adjourned at 10:23 p.m. _______________________________ Cathy Lehman, Council President _______________________________ ATTEST: Linda D. Anderson, City Clerk Representative APPROVED: June 9, 2014 City of Bellingham Regular City Council Meeting Page 13 of 13 5/19/2014