City Council - Regular Meeting

City of Bellingham City Council Regular Meeting Minutes December 9, 2024, 7:00 PM Mayor: Kimberley Lund Contact: (360) 778-8100, mayorsoffice@cob.org Council Members: Hannah Stone, Hollie Huthman, Contact: (360) 778-8200, ccmail@cob.org Daniel Hammill, Edwin H. “Skip” Williams, Lisa Anderson, https://cob.org/council Michael Lilliquist and Jace Cotton Call to Order The meeting was called to order by Council President Pro Tempore Huthman at 7:00pm. Announcements & Upcoming Meetings: Bellingham City Council meets all requirements of the State of Washington Open Public Meetings Act. 1. Land Acknowledgement Statement Before we begin, we acknowledge that we are gathered on the traditional and unceded territory of the Lummi, Nooksack, Samish and Semiahmoo People who have cared for and tended this land since time immemorial. Truth and acknowledgment are critical to building mutual respect and connection across all barriers of heritage and difference. We begin this effort to acknowledge what has been buried by honoring the truth. We pay respect to their elders past and present. Please take a moment to consider the many legacies of violence, displacement, migration, and settlement that bring us together here today. And please join us in uncovering such truths at any and all public events. 2. Language Access The Bellingham City Council provides Spanish interpretation at all regular evening meetings. Interpretation can be accessed by in-person attendees by utilizing the headsets located at the front of the room. Remote viewers can log on to cob.org/cczoom and click on the "Language" icon at the bottom of the screen to listen in Spanish. 3. Upcoming Public Hearing On January 13, 2025, the Council will hold a public hearing on an interim ordinance eliminating parking minimums. The interim ordinance would eliminate the minimum number of spots required and allow property owners and developers to provide parking as necessary. As an interim measure, it would provide immediate relief to some projects, and allow staff time to collect community feedback and prepare final parking regulations. A draft interim ordinance is anticipated to be published for public review and City Council consideration in the December 16, 2024, City Council agenda. More information at cob.org/parking-reforms Roll Call Present: Council Member Hannah Stone, First Ward Council Member Hollie Huthman, Second Ward Council Member Edwin H. "Skip" Williams, Fourth Ward Council Member Lisa Anderson, Fifth Ward City of Bellingham Regular City Council Meeting Page 1 of 9 12/9/2024 Minutes  Council Member Michael Lilliquist, Sixth Ward Council Member Jace Cotton, At-Large Excused Council President Daniel Hammill, Third Ward Mayor's Report Standing time for briefings, updates, and reports to Council by the Mayor. 24347 1. Mayor's Appointment to the Transportation Commission (Approval) p. 7 Mayor Lund appointed Sarah Burch to a partial term on the Transportation Commission, which will expire on March 11, 2027. Lisa Anderson / Edwin H. "Skip" Williams moved to recommend approval of Sarah Burch to a partial term on the Transportation Commission, which will expire on March 11, 2027. MOTION CARRIED 6-0. 24348 2. Mayor's Reappointment to the Civil Service Commission (Approval) p. 16 Mayor Lund reappointed Colin Lowin to his first full term on the Civil Service Commission, which will expire on January 1, 2030. Edwin H. "Skip" Williams / Jace Cotton moved to recommend approval of Colin Lowin to his first full term on the Civil Service Commission, which will expire on January 1, 2030. MOTION CARRIED 6-0. 24349 3. Mayor's Reappointments to the Tourism Commission (Information) p. 19 Mayor Lund reappointed Sara Holliday to her fourth term and Marc Blake to a first full term on the Tourism Commission, which will expire on December 31, 2027. 24350 4. Mayor's Reappointment to the Community Development Advisory Board p. 24 (Information) Mayor Lund reappointed Karin Jones to her first full term on the Community Development Advisory Board, which will expire on October 1, 2027. Mayor Lund highlighted her recent Executive Order # 2024 and encouraged the community to watch the afternoon Committee of the Whole meeting to learn more about ongoing efforts to address the affordable housing crisis. The Executive Order directs action in three broad areas: diversifying and expanding housing options in all neighborhoods through priority development review and proposed, interim legislative changes; streamlining the City’s permitting processes to spur housing development and reduce housing costs; and incentivizing, funding or partnering to City of Bellingham Regular City Council Meeting Page 2 of 9 12/9/2024 Minutes  create more housing opportunities that are harder to develop, such as permanently affordable housing or transitional housing options like tiny home villages. Regular Meeting and Committee Sessions The following are heard in both Committee sessions and Regular Meeting in order below: Council Standing Committee Meetings: Public Works and Natural Resources 10:30 AM Hannah Stone, Chair Lisa Anderson, Michael Lilliquist 24351 1. Contract Award to S&S Concrete Construction for the Portland Cement Concrete p. 29 Repairs, Indefinite Delivery Indefinite Quantity (IDIQ), Bid #55B-2024 Mike Olinger, Interim Public Works Co-Director, and Joel Pfundt, Interim Public Works Co-Director, provided a summary of the Indefinite Delivery Indefinite Quantity (IDIQ) on-call Portland Cement Concrete repair services bid. Work will be scoped and performed under individual work orders on an as-needed basis over a maximum of four years, subject to a not-to-exceed contract amount of $3,600,000. Council Members discussed the contract and asked questions. Hannah Stone / Lisa Anderson moved to award contract No. 55B-2024 for Indefinite Delivery Indefinite Quantity (IDIQ) on-call Portland Cement Concrete repair services to S&S Concrete Construction Corporation as the lowest responsive, responsible bidder and to authorize the Mayor to enter into a contract with them for the amount of their bid, $1,279,812.10, which includes any applicable WSST. MOTION CARRIED 6-0. Community and Economic Development 10:40 AM Jace Cotton, Chair Hannah Stone, Hollie Huthman 24352 1. Consideration of an Interlocal Agreement between the City, Whatcom County and p. 54 Port of Bellingham Regarding a Coordinated Approach to Funding County-Wide Economic Development Tara Sundin, Community and Economic Development Manager, provided a summary of the Interlocal Agreement (ILA) between the City, Whatcom County, and Port of Bellingham regarding a coordinated approach to funding county-wide economic development. Council Members discussed the ILA and Small Business Development Center program and asked questions. Jace Cotton / Hannah Stone moved to recommend approval of the Interlocal Agreement (ILA) between the City, Whatcom County, and Port of Bellingham regarding a coordinated approach to funding county-wide economic development. City of Bellingham Regular City Council Meeting Page 3 of 9 12/9/2024 Minutes  MOTION CARRIED 6-0. 24353 2. Consideration of the Lodging Tax Advisory Committee (LTAC) Funding p. 64 Recommendations for Downtown Activation Proposals Tara Sundin, Community and Economic Development Manager, and Darby Galligan, Senior Planner, presented a summary of the Lodging Tax Advisory Committee (LTAC) funding recommendations for three Downtown Activation Proposals. These projects include Children of the Setting Sun Productions - Coast Salish Interactive Mural ($160,000), Pickford Film Center & Bellingham Symphony Orchestra - Silent Film with Live Music ($25,080), and Make.Shift - KZAX Presents: Radio Forever ($50,000). Council Members discussed the recommended projects and asked questions. Jace Cotton / Hannah Stone moved to recommend the allocation of the LTAC Downtown Activation Funding to Children of the Setting Sun Productions - Coast Salish Interactive Mural ($160,000), Pickford Film Center & Bellingham Symphony Orchestra - Silent Film with Live Music ($25,080), and Make.Shift - KZAX Presents: Radio Forever ($50,000). MOTION CARRIED 6-0. 24354 3. Resolution to Update the Housing Levy Administrative and Financial Plan p. 82 Tara Sundin, Community and Economic Development Manager, and Samya Lutz, Housing and Services Program Manager, presented the draft resolution, which updates the Housing Levy Administrative and Financial Plan to include the current Consolidated Plan Goals, Affordable Housing Sales Tax, updates the budget, increases loan limits, and aligns other programmatic practices. Council Members discussed the resolution and asked questions. Jace Cotton / Michael Lilliquist moved final approval of Resolution #2024-33. MOTION CARRIED 6-0. Public Health, Safety, Justice, and Equity 01:00 PM Hollie Huthman, Chair Hannah Stone, Edwin H. "Skip" Williams 24355 1. Memorandum of Understanding with the Federal Bureau of Investigation p. 186 Police Chief Rebecca Mertzig presented the Memorandum of Understanding (MOU) with the Federal Bureau of Investigation (FBI), which maximizes interagency cooperation and assists with identifying for prosecution criminal enterprises responsible for drug trafficking, money laundering, robbery, crimes of violence such as murder and aggravated assault, and financial crimes such as fraud. Bellingham Police Officers will still be held to the City's policies and laws with regard to Immigration Violations (Policy 417) and the Keep Washington Working Act (State Engrossed Second Substitute Senate Bill 5497). Council Members discussed the MOU and asked questions. City of Bellingham Regular City Council Meeting Page 4 of 9 12/9/2024 Minutes Committee Of The Whole 1:20 PM Daniel Hammill, Chair Hannah Stone, Hollie Huthman, Edwin H. "Skip" Williams, Lisa Anderson, Michael Lilliquist, Jace Cotton 24356 1. Mayor's Executive Order Expanding Housing Options in Bellingham p. 203 Mayor Lund, Forrest Longman, Deputy Administrator, and Blake Lyon, Planning and Community Development Director, presented an overview of Executive Order 2024-02, which was issued on November 21, 2024. The order directs City departments to take administrative actions to increase housing opportunities across the housing spectrum. The order also asks the City Council to consider three interim ordinances to remove parking minimums Citywide, allow the Infill Toolkit Citywide and streamline design review. Council Members discussed the Executive Order and housing challenges and asked questions. 24357 2. Interagency Grant Agreement with Department of Commerce to Fund City-County p. 210 Electrification Program Forrest Longman, Deputy Administrator, and Seth Vidaña, Climate and Energy Manager, presented a summary of the Interagency Grant Agreement with the Department of Commerce for just under $1,000,000 to fund a City-County electrification program. Council Members discussed the grant and asked questions. Hollie Huthman / Edwin H. "Skip" Williams moved to recommend approval of the Washington State Department of Commerce Interagency Grant Agreement to fund state home electrification and appliance rebates program. MOTION CARRIED 6-0. 24358 3. An Ordinance Amending The 2023-2024 Biennial Budget Increasing Expenditures And p. 233 Authorizing An Interfund Loan Of Up To $600,000 From The General Fund To The Workers Comp Fund – Amendment No. 16 Andy Asbjornsen, Finance Director, and Eric Johnson, Budget and Treasury Manager, presented the 2023-2024 Biennial Budget Amendment No. 16. The draft ordinance proposes the following adjustments, • General Fund to the Museum, Library, and Legal Departments which are marginally close to their budget authority; • Cemetery, Golf, and Parking Funds to recognize increased economic activity and related expenses; • Medic One adjustments recognize all contracted revenue with the County and adds budget authority for interfund loan debt payments, retro pay, and increases in overtime; • • Workers Comp Fund, recognizes the 2024 rate increase, authorizes an interfund loan up to $600,000, and increases expenses for claims, payroll, and insurance payments. Hollie Huthman / Edwin H. "Skip" Williams moved for first and second reading. City of Bellingham Regular City Council Meeting Page 5 of 9 12/9/2024 Minutes  MOTION CARRIED 6-0. 24359 4. Contract Award for the North Haven Tiny House Community Project, Bid #54B-2024 p. 237 Mike Olinger, Interim Public Works Co-Director, and Joel Pfundt, Interim Public Works Co-Director, provided a summary of the North Haven Tiny House Community Project. The project includes site improvements and utilities to prepare the City's recently purchased property at 3300 Northwest Avenue to host a new tiny home village. Council Members discussed the contract and asked questions. Hollie Huthman / Edwin H. "Skip" Williams moved to award contract No. 54B-2024 for the North Haven Tiny House Community Project to Summit Construction as the lowest responsive, responsible bidder and to authorize the Mayor to enter into a contract with them for the amount of their bid, $434,910.00, which includes any applicable WSST. MOTION CARRIED 6-0. 24360 5. An Ordinance of the City of Bellingham Repealing Sections of the Bellingham p. 244 Municipal Code that are Obsolete, Pre-Empted, Unconstitutional or Otherwise Unenforceable Mayor Lund and Alan Marriner, City Attorney, presented the draft ordinance, which removes sections of the Bellingham Municipal Code that are obsolete, preempted, unconstitutional, or otherwise unenforceable. Council Members discussed the ordinance and asked questions. Hollie Huthman / Lisa Anderson moved for first and second reading. MOTION CARRIED 6-0. 24253 6. Work Session Regarding Landlord Tenant Relations and Unfair or Excessive Fees in p. 248 Residential Rental Agreements and Leases Alan Marriner, City Attorney, and Blake Lyon, Planning and Community Development Director, returned to discuss the three draft ordinances relating to excessive tenant fees in residential rental agreements and leases. Council Members discussed the ordinances, provided direction and amendments to move forward with the revised staff ordinance, and asked questions. Council will return for another Work Session on December 16th. 24254 7. Work Session Regarding Manufactured/Mobile Home Landlord Tenant Relations and p. 494 Unfair or Excessive Fees in Manufactured/Mobile Home Lease Agreements Alan Marriner, City Attorney, and Blake Lyon, Planning and Community Development Director, returned to discuss the three draft ordinances relating to excessive tenant fees in manufactured/mobile home lease agreements. Council Members discussed the ordinances, City of Bellingham Regular City Council Meeting Page 6 of 9 12/9/2024 Minutes  provided direction and amendments to move forward with the revised staff ordinance, and asked questions. Council will return for another Work Session on December 16th. 8. Old/New Business There were no discussion items for Old/New Business. Executive Session 3:40 PM Closed to the public. Report in the Regular Meeting only: 1. Litigation: Stodola v. Bellingham et al. (Good, approx. 10 min.) Staff provided information on a litigation matter. For information and discussion. No action taken. 2. Potential Property Acquisition (Stamps, approx. 3 min.) Staff provided information on a potential Lake Whatcom Watershed property acquisition totaling 0.19 acres with one potential development unit. Edwin H. "Skip" Williams / Michael Lilliquist moved to authorize the Mayor to close the real estate transaction described in the City’s executed purchase and sale agreement with the property owner, Hien N Dang & Thanh-tan Le & Mehdi & Elise Shafa, with a purchase price of $225,000 and with closing to occur on or around December 20, 2024. MOTION CARRIED 6-0. 3. Potential Property Acquisition (Stamps, approx. 3 min.) Staff provided information on a proposed real estate transaction involving a Lake Whatcom Watershed property totaling 101.24 acres owned by Patricia Otto. The Otto property is zoned R5A with 20 potential development units. The City currently holds two conservation easements over the Property which preclude development of all but 5 of the potential development units. The property owner has offered to replace the existing conservation easements with a new conservation easement that is more protective of the Lake Whatcom Watershed, effectively precluding development of all but 1 of the potential development units (which is preserved for the existing homesite). The new conservation easement will be granted to both the City of Bellingham and the Whatcom Land Trust as co-grantees at no cost. Edwin H. "Skip" Williams / Lisa Anderson moved to authorize the Mayor to close the proposed real estate transaction involving the Otto property, which will result in the replacement of the City’s existing conservation easements with a new conservation easement that is more protective of the Lake Whatcom Watershed at no cost to the City, with closing to occur as soon as practicable. MOTION CARRIED 6-0. City of Bellingham Regular City Council Meeting Page 7 of 9 12/9/2024 Minutes  4. Potential Property Acquisition (Stamps, approx. 5 min.) Staff provided information on a potential property acquisition. For information and discussion. No action taken. 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. 24361 1. Authorization of Payroll Labor Cost Payments Dated November 1, 2024 to November p. 528 15, 2024 24362 2. Authorization of A/P Transactions Issued November 08, 2024 through November 14, p. 529 2024 24363 3. Authorization of A/P Transactions Issued November 15, 2024 through November 21, p. 530 2024 24364 4. Authorization of A/P Transactions Issued November 22, 2024 through November 27, p. 531 2024 24365 5. Interlocal Agreement between the Whatcom Conservation District and the City of p. 532 Bellingham for Support of the Lake Whatcom Watershed Wildfire Risk Reduction Program 24366 6. Interlocal Use Agreement between the City of Bellingham and Whatcom County for p. 539 the Sale of Salt Brine to the County for Snow and Ice Operations 24367 7. 2025 Interlocal Agreement between the Bellingham Housing Authority and the p. 544 Bellingham Police Department 24368 8. Contract Amendment for Crisis Stabilization Center Funding p. 552 24369 9. Approval of the 11/18/2024 City Council Committee and Regular Meeting Minutes p. 562 Michael Lilliquist / Edwin H. "Skip" Williams moved approval of the Consent Agenda in its entirety. MOTION CARRIED 6-0. Final Consideration of Ordinances 24335 1. An Ordinance of the City of Bellingham, Washington Amending Bellingham Municipal p. 580 Code Chapter 4.76 to Increase the Solid Waste Utility Tax from 11.5 Percent to 17.25 Percent City of Bellingham Regular City Council Meeting Page 8 of 9 12/9/2024 Minutes  Lisa Anderson / Jace Cotton 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: Stone, Huthman, Williams, Anderson, Lilliquist, Cotton NAYS: (None) EXCUSED: Hammill MOTION CARRIED 6-0 and was thereafter named Ordinance #2024-12-031. 24336 2. An Ordinance of the City of Bellingham, Washington Regarding Investment of City p. 583 Funds Lisa Anderson / Jace Cotton 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: Stone, Huthman, Williams, Anderson, Lilliquist, Cotton NAYS: (None) EXCUSED: Hammill MOTION CARRIED 6-0 and was thereafter named Ordinance #2024-12-032. 24337 3. An Ordinance of the City of Bellingham, Washington Adopting the 2025 Budget p. 586 Edwin H. "Skip" Williams / Lisa Anderson 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: Stone, Huthman, Williams, Anderson, Lilliquist, Cotton NAYS: (None) EXCUSED: Hammill MOTION CARRIED 6-0 and was thereafter named Ordinance #2024-12-033. Adjournment There being no further business, the meeting adjourned at 7:32pm. Daniel Hammill, Council President ATTEST: Kelley Goetz, Deputy City Clerk APPROVED: 1/13/2025 City of Bellingham Regular City Council Meeting Page 9 of 9 12/9/2024 Minutes