City Council - Regular Meeting

CITY OF LYNDEN CITY COUNCIL MINUTES OF REGULAR MEETING July 7, 2025 1. CALL TO ORDER Mayor Scott Korthuis called to order the July 7, 2025 regular session of the Lynden City Council at 7:00 p.m. in the city council chambers. PLEDGE OF ALLEGIENCE ROLL CALL Members present: Councilors Gary Bode, Lee Beld, Gary Vis, Brent Lenssen, Nick Laninga, Kyle Strengholt, and Mark Wohlrab. Absences: None. Staff present: Finance Director Laura Scholl, Asst. Fire Chief Kristie Watson, Police Chief Steve Taylor, Public Works Director Jon Hutchings, City Clerk Pam Brown, and City Administrator John Williams, City Attorney, Luke Phiferand City Attorney Bob Carmichael. OATH OF OFFICE - None. SUMMARY REPORTS AND PRESENTATIONS - None. APPROVAL OF MINUTES Councilor Vis moved and Councilor Beld seconded, to approve the June 16, 2025 regular council minutes. Motion approved on 7-0 vote. CITIZEN COMMENT Cynthia Ripke-Kutsagoitz, Lynden • Patriotic Sumas event. • Texas flooding and Nooksack flood. • ICE support. • Necessity for jail facility. 2. CONSENT Selection of New Bond Counsel Lynden's current Bond Counsel, K&L Gates, has advised that they will no longer be providing municipal bond services. Lynden uses bond counsel for a variety of debt-related functions, including the Line of Credit, documentation for state loans, ordinances for private debt, and 300 4th Street, Lynden, WA 98264 www.lyndenwa.org Page 1 of 5 CITY OF LYNDEN CITY COUNCIL MINUTES OF REGULAR MEETING actual bond debt and advice. Finance staff interviewed two municipal bond firms and recommends Pacifica Law Group as the City's new Bond Counsel. Information regarding the firm and a draft engagement letter from the firm are in the council packet. There are no upfront costs; costs are incurred when services are used. The City anticipates requiring use of bond services rather quickly for support and documentation related to funding opportunities for the Wastewater Treatment Plant upgrade as well as debt disclosure requirements. This package was reviewed at Finance Committee on June 30, 2025. RES-25-1124 Interlocal Agreement Surplus and Sale of 1997 Pierce Pump Enqine The 1997 Pierce Pump Engine has reached the end of its useful life for City purposes as it has exceeded the National Fire Protection Association standards. Although fire engines are costly to purchase, their fair market value once the useful life is exceeded is limited, due to NFPA standards. The joint Finance and Fire Department recommendation is to sell the fire truck to the Mount Vernon School District for use in its Fire Sciences program, which is operating out of Meridian High School and provides access to students throughout Whatcom County who are interested in firefighting. Councilor Bode moved and Councilor Beld seconded, to approve the Consent Agenda. Motion approved on 7-0 vote. 3. PUBLIC HEARING Guide Meridian Sewer Latecomer Agreement- Continued The City constructed approximately 900 linear feet of 8-inch sewer main along Front Street west of Guide Meridian, extending north along Guide Meridian to the AM/PM gas station, then crossing to the east side of the Guide. RCW 35.91.060 and LMC 13.28.130, authorize the City to establish an assessment reimbursement area, finance the costs associated with a utility system improvement, and become the sole beneficiary of reimbursements. The total reimbursable costs associated with the Sewer Improvements financed by the City are $1,094,898.08. The preliminary assessment boundaries determined by the Public Works Director included all properties which would, in the City's determination, require construction or improvement of sewer facilities upon development or redevelopment. Preliminary assessment amounts were allocated to each property based on the ratio of the Parcel's square footage to the total square footage of the Assessment Reimbursement Area. Property 300 4th Street, Lynden, WA 98264 www.lyndenwa.org Page 2 of 5  CITY OF LYNDEN CITY COUNCIL MINUTES OF REGULAR MEETING owners were notified of the Preliminary Determination of Assessment by letter mailed February 18, 2025. Property owners have the right to make a written request for a public hearing before the Lynden City Council within 20 days of notification. The City received a written request on March 3, 2025, from Duane Scholten, and on March 10, 2025, from Serj Gosal, to hold a public hearing. The first Public Hearing was held on April 7, 2025, and was continued on April 21st, May 5th, May 19th and July 7, 2025. A motion was made on May 19, 2025, to remand the matter back to the Public Works Director to run additional cost scenarios, one of which will reflect at least 30% of allocated costs to the city, and to answer the question about whether the property owner can use his own service line to his buildings on his property. At this meeting the Council may approve the latecomer assessments as written, reject, modify, or send back for further review to the PW Director. Mayor Korthuis opened the public hearing at 7:43 pm. Public Works Director Jon Hutchins outlined the most current formula/options which were requested by members of Council. Duane Scholten, Lynden, spoke in opposition to the Guide Meridian Sewer Latecomer Agreement. After some discussion Mayor Korthuis closed the public hearing at 8:15 pm. No action taken, staff directed to bring back scenarios based on the comments received by council and property owner provided this evening. Resolution 25-1123, Adoptinci a Six Year Transportation Improvement Program (STIP) 2026-2031 The City annually adopts a Six-Year Transportation Improvement Program (STIP) that includes a list of proposed transportation improvement projects. This list of projects, once approved by Council, are submitted to the Whatcom Council of Governments (WCOG) and the Washington State Department of Transportation (WSDOT) and become eligible for consideration of funding through state programs. The Public Works Committee reviewed the STIP projects for 2026-2031 at their meeting on June 11, 2025, and recommended that City Council proceed to set a public hearing for July 7, 2025, at 7:00 p.m. 300 4th Street, Lynden, WA 98264 www.lyndenwa.org Page 3 of 5  CITY OF LYNDEN CITY COUNCIL MINUTES OF REGULAR MEETING Mayor Korthuis opened the public hearing at 8:17 pm. Fran Protzellor spoke in favor of the STIP. Mayor Korthuis closed the public hearing at 8:24 pm. Councilor Bode moved and Councilor Vis seconded, to approve Resolution 25-1123 adopting the Six Year Transportation Improvement Program for 2026-2031 and authorizing the Mayor to sign. Motion approved on 7-0 vote. 4. UNFINISHED BUSINESS Pine Street Bridqe Chanae Orders Public Works has executed a change order to extend the Pepin Creek channel north by approximately 265 feet. Public Works seeks approval for the Mayor to execute future contract Change Orders related to construction of the Pine Street Bridge. The cumulative amount of future Change Orders may not exceed existing 2025 budget authority granted by the Council to expend the Public Works Trust Fund project loan. The remaining unallocated loan amount available for future change orders is $553,293. Councilor Bode moved and Councilor Vis seconded, to approve Resolution 25-1123 adopting the Six Year Transportation Improvement Program for 2026-2031 and authorizing the Mayor to sign. Councilor Lenssen amended the motion to add the requirement that the Mayor present Council with all change orders above this amount. Motion approved on 7-0 vote. 5. NEW BUSINESS Discussion on Utility Tax for High Volume Users The Lynden Municipal Code (LMC) 3.28.060 establishes a limit on Utility Tax for high volume customers. For all utilities, the tax is only charged at full rate of 10% for customers up to $5,000 in sales. Above this limit, the rate drops to 1%. There is an additional reduction for natural gas utilities. This limit was established in 1985 and has not been adjusted since. Staff are seeking Council guidance on the direction to take with this rate. Increasing the limit or the rate above the limit will generate additional revenues for the General Fund. The attached analysis provides further details as well as the fiscal impacts of several scenarios. It is important to note that while the City of Lynden currently chooses to itemize the Utility Tax on city-owned utility bills, it is actually a type of Business & Occupation tax and is based on revenues generated by the Utility. The tax is a tax on the Utility, not on the individual customer. 300 4th Street, Lynden, WA 98264 www.lyndenwa.org Page 4 of 5  CITY OF LYNDEN CITY COUNCIL MINUTES OF REGULAR MEETING The City also has the option to consider it a type of operating expense and build it into the rates, which effectively spread the impact of tax adjustments across all customers. No action taken. Council directed staff to bring back an ordinance based on council discussion. RES-25-1125 Declaring an Emergency and Ratify the Mayor's Immediate Action On June 23, 2025, the Mayor declared an emergency of substantial fire risk and authorized the City departments to take immediate action to mitigate the risk. LMC 2.10.060 requires the City Council to confirm the Mayor's actions at the earliest practicable time. Councilor Bode moved and Councilor Vis seconded, to approve Resolution 25-1125 Declaring an Emergency, and ratifying the Mayor's Immediate Action and authorizing the Mayor to sign the resolution. Motion approved on 7-0 vote. 6. REPORTS Payroll Certificates (May 4, 2025 through May 31, 2025) Payroll Certificate (June 1, 2025 through June 14, 2025) Claims Listing (May 15, 2025 through June 25, 2025) CounciIorVis reviewed portion of the June 16, 2025 Parks Committee Minutes. Councilor Bode reviewed portion of the July 7, 2025 Public Works Committee Minutes. Councilor Strengholt reviewed portion of the June 11, 2025 Finance Committee Minutes. 7. EXECUTIVE SESSION Council did not hold an executive session. July 7, 2025 regular session of the Lynden city council adjourned at 8:58 pm. (^(JL^ /C^C^^— Scott Korthuis, Mayor l>.%voj0n Pamela Brown, City Clerk 300 4th Street, Lynden, WA 98264 www.lyndenwa.org Page 5 of 5