City Council - Regular Meeting

City of Bellingham City Council Regular Meeting Minutes May 19, 2025, 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 City Council Regular meeting was called to order by Council President 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 Special Meetings The City Council has two upcoming Special Meetings. On June 2nd at 10:00 AM, the Council will meet in the Mayor’s Boardroom to discuss two proposed rental fee ordinances. This will be an opportunity for the Council to have an in-depth discussion of the ordinances and make further amendments. On June 4th at 2:00 PM, the Council will meet at the Pacific Street Operations Center for a Special Joint Meeting with the County Council and the Lake Whatcom Water and Sewer District. This will be a follow up to the annual Lake Whatcom Joint Meeting, which was held in April, and will allow for further questions and discussion time. Roll Call Present: Council President Hollie Huthman, Second Ward Council Member Hannah Stone, First Ward Council Member Daniel Hammill, Third Ward Council Member Edwin H. "Skip" Williams, Fourth Ward City of Bellingham Regular City Council Meeting Page 1 of 8 5/19/2025 Minutes  Council Member Lisa Anderson, Fifth Ward Council Member Michael Lilliquist, Sixth Ward Council Member Jace Cotton, At-Large Public Hearing 24540 1. A Public Hearing To Consider An Ordinance Amending BMC 17.82 (Multifamily Tax p. 6 Exemption Program) To Expand The Areas Eligible For the Market Rate (8-Year) And Affordable Housing Exemptions (12-Year), Allow Exemptions For Co-Living Housing, Add A 20-Year Exemption For Permanently Affordable Housing Chris Behee, Long Range Division Manager, Chris Koch, Planner II, and Blake Lyon, Planning & Community Development Director, provided a summary of proposed amendments to BMC 17.82 Multi-Family Tax Exemption Program including, • Allowing the 8-year market rate tax exemption in the Fairhaven Urban Village, Barkley Village Design Review District, and the Waterfront District Urban Village • Expanding the 12-year affordable housing tax exemption to all parcels in all areas where infill housing and residential multi-family housing development is allowed, outside of designated urban villages • Expanding property tax exemption options • Allowing property tax exemptions for co-living, create a 20-year tax exemption for permanently affordable home ownership • Allowing extensions of property tax under certain conditions, • Modifying technical changes consistent with recent amendments to State law (RCW 84.14). Council Members discussed the proposed amendments and asked questions. Council President Huthman opened the public hearing. Six individuals provided testimony. Council President Huthman closed the public hearing. Daniel Hammill / Michael Lilliquist moved for first and second reading. MOTION CARRIED 7-0. Mayor's Report Standing time for briefings, updates, and reports to Council by the Mayor. 24541 1. Mayor's Appointment to the Parks and Recreation Advisory Board (Information) p. 52 Mayor Lund appointed Steve Walker to a second term on the Parks & Recreation Advisory Board, which will expire on May 27, 2028. City of Bellingham Regular City Council Meeting Page 2 of 8 5/19/2025 Minutes 24542 2. Mayor's Appointment to the Transportation Commission (Approval) p. 57 Mayor Lund appointed Aaron Miller to a first term on the Transportation Commission, which will expire on May 19, 2028. Edwin H. "Skip" Williams / Daniel Hammill moved to recommend approval of Aaron Miller to a first term on the Transportation Commission, which will expire on May 19, 2028. MOTION CARRIED 7-0. 24543 3. Mayor's Appointment to the Bellingham Arts Commission (Approval) p. 61 Mayor Lund appointed Blake Hudson to a first term on the Bellingham Arts Commission, which will expire on May 19, 2029. Edwin H. "Skip" Williams / Daniel Hammill moved to recommend approval of Blake Hudson to a first term on the Bellingham Arts Commission, which will expire on May 19, 2029. MOTION CARRIED 7-0. Mayor Lund emphasized recent engagement with the trans and queer community and the City’s commitment to ensuring a safe community for all. Mayor Lund announced that staff will bring the National Safe Place Program to the City of Bellingham by July 1st, 2025. Mayor Lund highlighted upcoming community events, • May 24th Gathering of the Eagles at WayPoint Park • May 24th Memorial Day Parade downtown • May 25th Ski to Sea Race Mayor Lund emphasized work from today’s committee meetings to improve and increase housing opportunities. 24544 4. Mayor's Appointment to the Planning and Development Commission (Approval) p. 66 This item was removed from the agenda. Regular Meeting and Committee Sessions The following are heard in both Committee sessions and Regular Meeting in order below: Council Standing Committee Meetings: Budget and Finance 10:00 AM Lisa Anderson, Chair Daniel Hammill, Michael Lilliquist City of Bellingham Regular City Council Meeting Page 3 of 8 5/19/2025 Minutes 24547 1. Presentation Regarding Water System Plan, Utility-wide Financial Information, Utility p. 72 Rates, and Customer Assistance Program Mike Olinger, Interim Public Works Co-Director, Forrest Longman, Deputy Administrator, and Gordon Wilson, Senior Project Manager at FCS Bowman, provided a summary of long-term water system plan updates and anticipated utility rate increases necessary to meet regulatory requirements and manage the City's infrastructure. The presentation also discussed potential changes to the customer assistance program to support residents through the rate increases. Council Members discussed long-term infrastructure upgrades, rate increases, the customer assistance program, and asked questions. 24558 2. Mayor's 2026 Budget Development Process p. 146 Mayor Lund and Forrest Longman, Deputy Administrator, provided an overview of the 2026 budget process and priorities which include, • Public Safety, including evaluating revenue sources that will maintain our current levels of service; • Programs and policies that support the expansion of housing supply across the continuum of need; and • Continued support for the internal services, systems and people that allow the City to effectively and efficiently deliver services to the public. Council Members discussed the budget priorities and asked questions. Public Works and Natural Resources 1:00 PM Hannah Stone, Chair Lisa Anderson, Jace Cotton 24545 1. Whatcom Transportation Authority (WTA) Rapid Transit Study Update p. 150 Joel Pfundt, Interim Public Works Co-Director, Tim Wilder, Planning Director at WTA, and Hayden Richardson from WTA, provided a summary of the WTA Rapid Transit Study. The study aims to improve rapid transit reliability and accessibility throughout the City. Council Members discussed the study and asked questions. More information on the study is available online. 24557 2. Contract Award for Russell-Irving Watermain Replacement (EW239), Bid #33B-2025 p. 196 Joel Pfundt, Interim Public Works Co-Director, and Tim Hohmann, Engineering Manager, presented the contract award for the Russell-Irving Watermain Replacement Project. The project will replace watermains on Russell Street from Broadway to West Illinois Street, Irving Street from Young Street to C Street, C Street from Irving Street to Dupont Street, and Dupont Street from C Street to D Street and construct Americans with Disabilities Act compliant ramp upgrades throughout, and will overlay Russell Street and Irving Street. Council Members discussed the contract award and asked questions. City of Bellingham Regular City Council Meeting Page 4 of 8 5/19/2025 Minutes  Hannah Stone / Jace Cotton moved to award contract No. 33B-2025 to Colacurcio Brothers, Inc, as the lowest responsive, responsible bidder and authorize the Mayor to enter into a contract with them for the amount of $2,688,577.00, which includes any applicable WSST. MOTION CARRIED 7-0. 24546 3. Contract Award for Padden Creek at 12th and 14th Streets Fish Passage (EN056) Bid p. 201 #34B-2025 Joel Pfundt, Interim Public Works Co-Director, and Analiese Burns, Habitat & Restoration Manager, presented the contract award for the Padden Creek at 12th and 14th Streets Fish Passage Project. The project will remove partial fish passage barriers at two Interurban Trail creek crossings. Council Members discussed the contract award and asked questions. Hannah Stone / Lisa Anderson moved to award contract No. 34B-2025 to Faber Construction Corporation, as the lowest responsive, responsible bidder and authorize the Mayor to enter into a contract with them for the amount of $4,326,715.82, which includes any applicable WSST. MOTION CARRIED 7-0. Committee Of The Whole 2:10 PM Hollie Huthman, Chair Hannah Stone, Daniel Hammill, Edwin H. "Skip" Williams, Lisa Anderson, Michael Lilliquist, Jace Cotton 24549 1. Update on 2025 State Legislative Session and City Lobbying Activities p. 208 Janice Keller, Deputy Administrator, and City lobbyists, Nick Federici, and Luke Esser, provided an update on the recent State Legislative Session. Council Members discussed City priorities and lobbying efforts and asked questions. 24548 2. Consideration of Letter to Canadian Municipalities p. 209 At the April 28, 2025, Committee of the Whole meeting, Council Member Lilliquist proposed sending a letter to nearby Canadian cities to promote goodwill. Council President Huthman shared a draft letter, written by David Brauhn, Assistant Communications & Community Relations Director, for review. Hollie Huthman / Edwin H. "Skip" Williams moved to recommend approval of the letter to Canadian cities including Delta, Richmond, White Rock, Abbotsford, Langley, Vancouver, Surrey, Coquitlam, and Burnaby. MOTION CARRIED 7-0. 24501 3. Work Session on an Ordinance Relating to Landlord Tenant Relations, Adopting a p. 211 New Chapter in Title 6 of the Bellingham Municipal Code Prohibiting Landlords from City of Bellingham Regular City Council Meeting Page 5 of 8 5/19/2025 Minutes  Charging Tenants Unfair or Excessive Fees in Residential Rental Agreements and Leases Alan Marriner, City Attorney, Blake Lyon, Planning & Community Development Director, and Iris Nott, Legislative Policy Analyst, presented budget and legal implications from the proposed rental fee ordinance. Council President Huthman shared there will be a special working session on this ordinance on June 2, 2025 at 10:00am in the Mayor's Boardroom. 24502 4. Work Session on an Ordinance Related to Manufactured/Mobile Home Landlord p. 222 Tenant Relations, Adopting a New Chapter in Title 6 of the Bellingham Municipal Code Prohibiting Landlords from Charging Unfair or Excessive Fees in Manufactured/Mobile Home Lease Agreements Alan Marriner, City Attorney, Blake Lyon, Planning & Community Development Director, and Iris Nott, Legislative Policy Analyst, presented budget and legal implications of the proposed mobile home fee ordinance. During the Committee of the Whole meeting, Council voted to amend ordinance to ensure continuity in language in BMC 6.19.090. Council President Huthman shared there will be a special work session on this ordinance on June 2, 2025 at 10:00am in the Mayor's Boardroom. 24550 5. An Ordinance Relating To Land Use and Zoning, Adopting An Interim Zoning p. 232 Ordinance, Applying BMC 20.28 Infill Housing in All Areas That Are Zoned Predominantly For Residential Use, Except on Property Regulated By BMC Chapter 16.80, Lake Whatcom Reservoir, To Stimulate Middle Housing Construction Blake Lyon, Planning & Community Development Director, presented an amendment to the floor area ratio (FAR) in the land use and zoning ordinance. After a public hearing on March 24, 2025, City Council moved the ordinance for first and second reading. Council Members discussed the amendment and asked questions. City Council voted to approve the third and final reading and approval of this amended ordinance later in the meeting (Agenda Bill #24478). Hollie Huthman / Michael Lilliquist moved to approve the amended ordinance as recommended by the Committee of the Whole. MOTION CARRIED 7-0. 6. Old/New Business Council Member Cotton highlighted Council's support during the Committee of the Whole meeting for a letter in support of Operational Student Employees at WWU. Council Member Stone shared an update on work to reaffirm the values expressed in Resolution #2017-10. A draft will be reviewed at the next Council meeting. Executive Session 4:15 PM Closed to the public. Report in the Regular Meeting only: City of Bellingham Regular City Council Meeting Page 6 of 8 5/19/2025 Minutes  1. Potential Property Acquisition (Stamps, approx. 3 min.) Staff provided information on a potential Lake Whatcom Watershed property acquisition totaling 37.55 acres with seven potential development units. Edwin H. "Skip" Williams / Jace Cotton 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, Faunt Visser, with a purchase price of $860,000. Closing is to occur on or around May 28, 2025. MOTION CARRIED 7-0. 2. Potential Property Acquisition (Stamps, approx. 3 min.) Staff provided information on a potential Lake Whatcom Watershed property acquisition totaling 7.45 acres with one potential development unit. Jace Cotton / Edwin H. "Skip" Williams 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, Gary & Shirley Patterson, with a purchase price of $240,000. Closing is to occur on or around June 2, 2025. MOTION CARRIED 7-0. 3. Potential Property Acquisition (Stamps, approx. 10 min.) Staff provided information on a potential property acquisition. For information and discussion. No action taken. 4. Labor Relations: Discuss Collective Bargaining Strategy (Sullivan, approx. 5 min.) Staff provided information on a labor relations item. 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. 24551 1. Approval of the 4/28/2025 City Council Committee and Regular Meeting Minutes p. 243 24552 2. Approval of the 5/5/2025 City Council Committee and Regular Meeting Minutes p. 260 24553 3. Acceptance of a Technology Tool Grant Award from the Washington State Archives p. 275 Local Records Grant Program 24554 4. Authorization of A/P Transactions Issued April 25, 2025 through May 01, 2025 p. 277 City of Bellingham Regular City Council Meeting Page 7 of 8 5/19/2025 Minutes 24555 5. Authorization of Payroll Labor Cost Payments Dated April 16, 2025 to April 30, 2025 p. 278 24556 6. Authorization of A/P Transactions Issued May 02, 2025 through May 08, 2025 p. 279 Edwin H. "Skip" Williams / Michael Lilliquist moved approval of the Consent Agenda in its entirety. MOTION CARRIED 7-0. Final Consideration of Ordinances 24478 1. An Ordinance of the City of Bellingham, WA, Relating to Land Use and Zoning, p. 280 Adopting an Interim Zoning Ordinance, Applying Bellingham Municipal Code (BMC) 20.28 Infill Housing in All Areas that are Zoned Predominantly for Residential Use, Except on Property Regulated by BMC Chapter 16.80, Lake Whatcom Reservoir, To Stimulate Middle Housing Construction Lisa Anderson / Edwin H. "Skip" Williams 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: Huthman, Stone, Hammill, Williams, Anderson, Lilliquist, Cotton NAYS: (None) EXCUSED: (None) MOTION CARRIED 7-0 and was thereafter named Ordinance #2025-05-008. Public Comment Period City Council heard public comments from 66 individuals. To access the recording visit, Public Comment Period Recordings - City of Bellingham. Adjournment There being no further business, the meeting adjourned at 11:52pm. Hollie Huthman, Council President ATTEST: Kelley Goetz, Deputy City Clerk APPROVED: 6/9/2025 City of Bellingham Regular City Council Meeting Page 8 of 8 5/19/2025 Minutes