City Council - Special Meeting

City of Bellingham City Council Special Meeting Minutes June 2, 2025, 10:00 AM 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 Council President Huthman called the meeting to order at 10:13 a.m. 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 Council Member Lisa Anderson, Fifth Ward Council Member Michael Lilliquist, Sixth Ward Council Member Jace Cotton, At-Large Edwin H. "Skip" Williams / Daniel Hammill moved to change the order of the agenda to consider agenda bill 24502 first. MOTION CARRIED 7-0. 24502 1. Work Session on an Ordinance Related to Manufactured/Mobile Home Landlord p. 14 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 In this work session, Council Members discussed the ordinance in detail among themselves and with staff. Jace Cotton / Michael Lilliquist moved to adopt the "WHEREAS" statements as shown in the working draft. Jace Cotton / Michael Lilliquist moved to amend the motion to add a final statement "WHEREAS, city staff presented summaries of public engagement efforts, including a large public survey and focus groups with landlords, tenants, and service providers, during the Council meeting on March 28, 2025; and" AMENDMENT CARRIED 7-0. City Council Special Meeting Minutes Page 1 June 2, 2025  AMENDED MOTION CARRIED 7-0. Jace Cotton / Michael Lilliquist moved to amend BMC 6.19.010 - Definitions to add: “Fee” means any payment by the tenant that is proffered or imposed by the landlord, but does not include the monthly rent or charges for damages. “Fee” may include charges designated by the landlord as additional rent if those charges are conditionally and differentially imposed on otherwise similar tenancies." MOTION CARRIED 7-0. Jace Cotton / Daniel Hammill moved to mend BMC 6.19.030 - Reasonable Fees Permitted, Section 2 as follows: Move-in fees that do A refundable security deposit that does not exceed the Base Rent for one month" and to amend BMC 6.19.010 - Definitions to add "Move-in fees” means the total sum of any applicant screening fees and any security deposit." MOTION CARRIED 7-0. Jace Cotton / Michael Lilliquist moved to amend BMC 6.19.020 - Disclosure of Fees Required, Section 1 to add "Any utilities included in the monthly rent; and" as item c. MOTION CARRIED 7-0. Lisa Anderson moved to amend BMC 6.19.030 - Reasonable Fees Permitted, Section 1, to add "an application screening fee shall not exceed actual costs for third party services and documentation will be provided if requested by applicant. Actual costs shall be limited to the charges incurred by using a third-party service or the cost for the landlord to for doing their own screening" The motion did not receive a second and did not proceed to a vote. Michael Lilliquist / Daniel Hammill moved to amend 6.19.030 - Reasonable Fes Permitted, Section 1, to strike, "If the landlord declines to rent to the applicant, the landlord shall refund all the screening and application fees paid by the applicant," MOTION CARRIED 5-2. OPPOSED: Lisa Anderson, Jace Cotton Daniel Hammill / Lisa Anderson moved to amend 6.19.030 - Reasonable Fes Permitted, Section 1, to strike "per tenant" and replace with "per application" MOTION FAILED 7-0. Jace Cotton / Lisa Anderson moved to amend BMC 6.19.030 - Reasonable Fees Permitted, Section 1 to add "plus CPI-U for the Seattle/Tacoma/Bellevue region calculated on an annual basis -June over June per application" after "$50.00." MOTION CARRIED 5-2. City Council Special Meeting Minutes Page 2 June 2, 2025  OPPOSED: Hannah Stone, Edwin H. "Skip" Williams Jace Cotton / Lisa Anderson moved to accept BMC 6.19.030 as amended. MOTION CARRIED 7-0. Jace Cotton / Hannah Stone moved to amend BMC 6.19.040, Section 2, to strike item a, "Any additional fee to rent month-to-month rather than a fixed term lease, or vice versa;" MOTION CARRIED 7-0. Daniel Hammill / Hannah Stone moved to amend the "Definitions" section to strike "and also includes a manufactured/mobile homeowner in a manufactured housing community subleasing their manufactured/mobile home lot, leasing their manufactured/mobile home to another tenant under a rental agreement, or both." from the definition of "Landlord." MOTION CARRIED 7-0. Daniel Hammill / Edwin H. "Skip" Williams moved to adopt BMC 6.19.040 - Unfair or Excessive Fees Prohibited as amended. MOTION CARRIED 7-0. Daniel Hammill / Edwin H. "Skip" Williams moved to adopt BMC 6.19.050 - Provisions Prohibited by this Chapter or Null and Void as presented in the packet. MOTION CARRIED 7-0. Jace Cotton / Hannah Stone moved to approve 6.19.060 - Retaliation Prohibited as presented in the packet. MOTION CARRIED 7-0. Jace Cotton / Hannah Stone moved to amend BMC 6.19.070 - Civil Action Remedy, Section 2, Item a, to strike the existing text and replace with "Three times the actual damages suffered by the tenant, or $2,000, whichever is greater; or three times the actual damages suffered by a prospective tenant or $1,000, whichever is greater;" MOTION CARRIED 7-0. Jace Cotton / Lisa Anderson moved to accept BMC 6.19.070 - Civil Action Remedy as amended. MOTION CARRIED 7-0. City Council Special Meeting Minutes Page 3 June 2, 2025  Jace Cotton / Lisa Anderson moved to amend BMC 6.19.080 - Additional Affirmative Defense to an Unlawful Detainer and Other Actions, Section 1, to add "where the cause is non-payment of rent" after "eviction action." MOTION CARRIED 7-0. Michael Lilliquist / Daniel Hammill moved to amend BMC 6.19.080 - Additional Affirmative Defense to an Unlawful Detainer and Other Actions, to add a Section 2 "It is an additional affirmative defense to an unlawful detainer or other eviction action that the action is in retaliation for the tenant asserting their rights under this ordinance.” MOTION CARRIED 7-0. Daniel Hammill / Jace Cotton moved to accept BMC 6.19.080 - Additional Affirmative Defense to an Unlawful Detainer and Other Actions as amended. MOTION CARRIED 7-0. Lisa Anderson / Daniel Hammill moved to accept BMC 6.19.090 - City Enforcement as presented in the packet. MOTION FAILED 3-4. OPPOSED: Hollie Huthman, Daniel Hammill, Edwin H. "Skip" Williams, Lisa Anderson Lisa Anderson / Daniel Hammill moved to strike BMC 6.19.090 - City Enforcement and 6.19.100 - Penalties in their entirety. MOTION CARRIED 4-3. OPPOSED: Hannah Stone, Michael Lilliquist, Jace Cotton Michael Lilliquist / Lisa Anderson moved to strike the effective date from Section 2. Effective Date. MOTION CARRIED 7-0. 24501 2. Work Session on an Ordinance Relating to Landlord Tenant Relations, Adopting a p. 3 New Chapter in Title 6 of the Bellingham Municipal Code Prohibiting Landlords from Charging Tenants Unfair or Excessive Fees in Residential Rental Agreements and Leases This item was not discussed. Adjournment There being no further business, the meeting adjourned at 1:14 p.m. City Council Special Meeting Minutes Page 4 June 2, 2025