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BEL-CON-2024-12-09 December 09, 2024 City Council Regular Meeting City of Bellingham 32 min
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Executive Summary

The Bellingham City Council gathered for their December 9, 2024 regular meeting with housing at the forefront of discussions, marking another significant step in the city's ongoing efforts to address the local housing crisis. With Council President Dan Hammill excused, President Pro Tempore Hollie Huffman presided over a packed agenda that spanned from routine administrative matters to major policy initiatives.

What's Next

**Immediate Actions:** - December 16, 2024: Continued work session on landlord-tenant relations ordinances - December 16, 2024: Draft interim parking minimum elimination ordinance expected for council consideration - December 20, 2024: Closing on $225,000 Lake Whatcom watershed property acquisition - Conservation easement replacement with Otto property to occur "as soon as practicable" **Upcoming Public Engagement:** - January 13, 2025: Public hearing scheduled on interim ordinance eliminating parking minimums - Community feedback collection period on parking regulations to begin - Tyler Schroeder from Port of Bellingham scheduled to address council regarding economic development partnership **Ongoing Initiatives:** - Implementation of Executive Order 2024-02 housing actions across city departments - Development of final parking regulations following interim ordinance - Continued legislative drafting for landlord-tenant fee restrictions - North Haven tiny home village site preparation and development #

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Full Meeting Narrative

# City Council Advances Housing Initiatives Amid Active December Session The Bellingham City Council gathered for their December 9, 2024 regular meeting with housing at the forefront of discussions, marking another significant step in the city's ongoing efforts to address the local housing crisis. With Council President Dan Hammill excused, President Pro Tempore Hollie Huffman presided over a packed agenda that spanned from routine administrative matters to major policy initiatives. ## Housing Takes Center Stage The evening's most significant conversation centered around Mayor Kim Lund's recently issued Executive Order 2024-02, which commits the city to immediate administrative actions to expand housing opportunities. In her mayor's report, Lund outlined the urgency driving the order, painting a stark picture of Bellingham's housing landscape. "We have a critical housing shortage in Bellingham," Lund told the council and community members in attendance. "We have not yet caught up from the deficit of thousands of housing units that resulted from the 2008 to 2012 economic recession, and we aren't adding enough new housing to meet today's demands." The executive order, issued November 21st, directs action in three broad areas: diversifying housing options through priority development review and proposed interim legislative changes; streamlining permitting processes to reduce costs and timelines; and incentivizing partnerships to create harder-to-develop housing types like permanently affordable units and tiny home villages. The order also asks the city council to consider three interim ordinances: removing parking minimums citywide, allowing the infill toolkit citywide, and streamlining design review processes. As Huffman noted from the chair, this was just the beginning of what promises to be an extensive conversation, with more discussion scheduled for the following Monday. "If you are interested in housing issues and parking minimums, definitely check out that video," Huffman advised, referring community members to the afternoon's committee meeting coverage. "We will be having more conversation about parking minimums in particular next Monday." The mayor emphasized that her order represents "achievable smart fixes that we can implement now," positioning these actions ahead of required changes coming from new state laws. The approach reflects what Lund described as joining "with members of this city council and the community who feel an urgency to invest in this work." ## North Haven Tiny Home Village Advances Housing initiatives gained further momentum with council approval of a $434,910 contract award to Summit Construction for the North Haven Tiny House Community Project. The project will prepare the city's recently purchased property at 3300 Northwest Avenue to host a new tiny home village through site improvements and utilities installation. The contract award came in significantly under the engineer's estimate of $821,315, providing welcome cost savings on a project that has generated considerable discussion about value and impact. Council Member Michael Lilliquist performed quick calculations during the meeting, determining that the total project cost—including the $1.2 million property purchase—equates to approximately $60,000 per tiny home unit, depending on the final number of units constructed. "A project definitely well worth doing," Huffman concluded after the unanimous vote to award the contract. ## Economic Development and Downtown Activation The council advanced several initiatives aimed at bolstering economic development and downtown vitality. They approved an interlocal agreement between the city, Whatcom County, and the Port of Bellingham for coordinated countywide economic development funding, continuing a partnership that has been in place since 2011. Council Member Jace Cotton, chairing the Community and Economic Development committee, noted that the port expanded its economic development focus in 2018 to create a dedicated department with additional staff. The agreement continues support for Western Washington University's Small Business Development Center and the port's Economic Development Department. The council also approved lodging tax advisory committee funding recommendations totaling $235,080 for three downtown activation projects. The approved projects include: - Children of the Setting Sun Productions' Coast Salish Interactive Mural ($160,000) - Pickford Film Center & Bellingham Symphony Orchestra's Silent Film with Live Music event ($25,080) - Make.Shift's KZAX Presents: Radio Forever multi-modal installation ($50,000) These projects represent ongoing efforts to activate and beautify downtown Bellingham as part of broader revitalization initiatives. ## Environmental and Infrastructure Commitments Climate action advanced with council approval of an interagency grant agreement with the Washington State Department of Commerce for just under $1 million to expand the city's home electrification pilot program. The funding builds on the city's 2018 Climate Action Plan and represents a partnership with Whatcom County to accelerate electrification efforts. "Electrification is a critical component of meeting the city's climate goals," staff explained during the presentation. Infrastructure maintenance received attention with approval of a four-year, $3.6 million contract with S&S Concrete Construction for on-call Portland cement concrete repairs. The indefinite delivery, indefinite quantity contract will allow the city to scope work on an as-needed basis, with individual projects expected to fall well under the $1 million threshold that would trigger apprenticeship requirements. ## Regulatory Reform and Tenant Protections The council continued work sessions on landlord-tenant relations, addressing unfair or excessive fees in both residential rental agreements and manufactured home leases. These "junk fees" ordinances represent significant tenant protection measures that the council has been developing since October. City Attorney Alan Marriner and Planning Director Blake Lyon presented revised ordinances that staff believe would accomplish the same protective goals while being easier to understand for tenants, landlords, property management companies, and reviewing courts. The council made several amendments and directed staff to continue refining the proposals, with another work session scheduled for December 16th. The council also approved an ordinance repealing obsolete, preempted, or unconstitutional sections of the Bellingham Municipal Code—what staff characterized as necessary housekeeping, though the discussion revealed additional code revisions may be forthcoming. ## Law Enforcement Coordination Public safety received attention through discussion of a memorandum of understanding with the Federal Bureau of Investigation. Police Chief Rebecca Mertzig explained that the agreement would maximize interagency cooperation while maintaining adherence to city policies, particularly regarding immigration violations and the Keep Washington Working Act. The MOU focuses primarily on cellular analysis technology sharing and aims to identify criminal enterprise groups responsible for drug trafficking, money laundering, robbery, violent crimes, and financial fraud. Chief Mertzig cited a Boulevard Park incident where cell phone analysis proved instrumental in solving the case as an example of the technology's value. ## Budget Adjustments and Fiscal Stewardship The council addressed year-end budget matters with the 16th and final budget amendment of 2024, authorizing expenditure increases and an interfund loan of up to $600,000 from the general fund to the workers compensation fund. The ordinance makes adjustments across multiple departments and funds, recognizing increased economic activity, rate increases, and other operational changes. Finance Director Andy Asbjornsen and Budget Manager Eric Johnson walked the council through the complex adjustments, prompting considerable discussion about fund relationships and expenditure tracking. ## Property Acquisitions for Conservation In executive session, the council authorized two property acquisitions for Lake Whatcom watershed protection. The first involves a 1.9-acre property with one potential development unit for $225,000, scheduled to close around December 20th. The second represents a more significant conservation victory: a 101.24-acre property owned by Patricia Otto that will see existing conservation easements replaced with a more protective agreement at no cost to the city. The new easement, granted jointly to the city and Whatcom Land Trust, will reduce potential development from 20 units to just one, preserving the existing homesite while providing enhanced watershed protection. ## Final Ordinances and Routine Business The council completed final consideration of three ordinances: increasing the solid waste utility tax from 11.5% to 17.25%, updating city investment policies, and adopting the 2025 budget. All passed unanimously on roll call votes. The consent agenda, encompassing routine payroll authorizations, interlocal agreements for watershed wildfire risk reduction and snow operations, and police department partnerships, passed without discussion. ## Looking Ahead As the meeting concluded at 7:32 PM, the stage was set for continued housing policy discussions, with parking minimums taking center stage at the next council meeting. Mayor Lund's executive order and the evening's various housing-related actions signal an acceleration of the city's efforts to address what all participants acknowledged as a critical housing shortage. The council's December 16th meeting promises continued work sessions on landlord-tenant protections and potentially the first public viewing of a draft interim ordinance eliminating parking minimums—a proposal that could fundamentally reshape development patterns in Bellingham. With Tyler Schroeder from the Port of Bellingham scheduled to address the council soon regarding economic development partnerships, and various implementation timelines advancing, the city appears positioned for an active winter of policy development and community engagement on some of its most pressing challenges.

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Study Guide

### Meeting Overview The Bellingham City Council held their regular meeting on December 9, 2024, with six council members present (Council President Hammill excused). The meeting focused heavily on housing initiatives, including Mayor Lund's Executive Order 2024-02 expanding housing options, contract awards for infrastructure projects, and work sessions on landlord-tenant relations. ### Key Terms and Concepts **Executive Order 2024-02:** Mayor Lund's directive issued November 21, 2024, committing the city to intermediate steps addressing Bellingham's urgent housing shortage through administrative actions and proposed interim ordinances. **Interim Ordinance:** A temporary law allowing immediate action while staff develops permanent regulations, specifically mentioned for eliminating parking minimums citywide. **IDIQ Contract:** Indefinite Delivery Indefinite Quantity contract allowing work to be performed under individual work orders on an as-needed basis over multiple years. **Conservation Easement:** A legal agreement restricting property development to protect environmental resources, particularly relevant for Lake Whatcom Watershed properties. **Lodging Tax Advisory Committee (LTAC):** A committee that reviews and recommends funding for projects using lodging tax revenue to support tourism and downtown activation. **Interfund Loan:** A financial mechanism allowing the city to loan money from one fund to another, such as the $600,000 loan from the general fund to the workers comp fund. **Junk Fees:** Unfair or excessive fees charged to tenants by landlords, which the council is working to prohibit through new ordinances. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Kim Lund | Mayor | | Hannah Stone | Council Member, First Ward | | Holly Huffman | Council Member, Second Ward (President Pro Tempore) | | Edwin "Skip" Williams | Council Member, Fourth Ward | | Lisa Anderson | Council Member, Fifth Ward | | Michael Lilliquist | Council Member, Sixth Ward | | Jace Cotton | Council Member, At-Large | | Blake Lyon | Planning and Community Development Director | | Alan Marriner | City Attorney | ### Background Context Bellingham faces a critical housing shortage stemming from the 2008-2012 economic recession deficit of thousands of housing units. The city has not caught up to current demand, necessitating urgent action. Mayor Lund's Executive Order represents a proactive approach to address this crisis through three main strategies: diversifying housing options across neighborhoods, streamlining permitting processes, and incentivizing difficult-to-develop housing like permanently affordable units and tiny home villages. The timing is strategic, as new state laws will soon require similar changes, making early action advantageous. The council's extensive work on landlord-tenant relations reflects growing concerns about housing affordability and tenant protection. Rising housing costs have made "junk fees" - excessive charges for services like application processing or pet deposits - increasingly burdensome for renters. ### What Happened — The Short Version The council approved two mayoral appointments and received information on two others. They awarded a $1,279,812 concrete repair contract to S&S Concrete Construction and a $434,910 contract to Summit Construction for the North Haven Tiny House Community Project. Three downtown activation projects received lodging tax funding totaling $235,080. The council approved the 2025 budget and increased the solid waste utility tax from 11.5% to 17.25%. They authorized two Lake Whatcom Watershed property acquisitions totaling $225,000. Work sessions on landlord-tenant relations produced amendments to proposed ordinances addressing excessive fees, with more discussion scheduled for December 16th. ### What to Watch Next - January 13, 2025: Public hearing on interim ordinance eliminating parking minimums citywide - December 16, 2024: Continued work session on landlord-tenant relations ordinances - December 20, 2024: Closing on Lake Whatcom Watershed property acquisition ($225,000) ---

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Flash Cards

**Q:** What is Executive Order 2024-02? **A:** Mayor Lund's directive issued November 21, 2024, committing the city to administrative actions and interim ordinances to address Bellingham's urgent housing shortage. **Q:** How many council members were present at this meeting? **A:** Six council members were present, with Council President Hammill excused. **Q:** What is the contract amount for S&S Concrete Construction? **A:** $1,279,812.10 for Portland cement concrete repairs over a maximum of four years, not to exceed $3.6 million total. **Q:** When is the public hearing on parking minimums elimination scheduled? **A:** January 13, 2025. **Q:** What three areas does the Mayor's Executive Order address? **A:** Diversifying housing options in all neighborhoods, streamlining permitting processes, and incentivizing funding for hard-to-develop housing. **Q:** Who chairs the Public Works and Natural Resources Committee? **A:** Hannah Stone. **Q:** What is the total cost for the North Haven Tiny House Community Project? **A:** $434,910 for site improvements, with total project costs estimated at $1.4 million including the $1.2 million property purchase. **Q:** How much lodging tax funding was allocated for downtown activation projects? **A:** $235,080 total for three projects: Coast Salish Interactive Mural ($160,000), Silent Film with Live Music ($25,080), and Radio Forever installation ($50,000). **Q:** What is the new solid waste utility tax rate? **A:** Increased from 11.5% to 17.25%. **Q:** How much did the city authorize for Lake Whatcom Watershed property acquisition? **A:** $225,000 for a 1.9-acre property with one potential development unit. **Q:** What department does Blake Lyon lead? **A:** Planning and Community Development. **Q:** What is an IDIQ contract? **A:** Indefinite Delivery Indefinite Quantity contract allowing work to be performed under individual work orders on an as-needed basis. **Q:** What are "junk fees" in rental agreements? **A:** Unfair or excessive fees charged to tenants by landlords, which the council is working to prohibit. **Q:** How much money was authorized for interfund loan to workers comp fund? **A:** Up to $600,000 from the general fund. **Q:** What happens to the Otto property conservation easements? **A:** Existing easements will be replaced with new, more protective easements reducing development from 5 to 1 potential unit at no cost to the city. **Q:** When is the next work session on landlord-tenant relations? **A:** December 16, 2024. **Q:** What is the total acreage of the Otto property? **A:** 101.24 acres. **Q:** Who provides Spanish interpretation at council meetings? **A:** The city provides interpretation via headsets for in-person attendees and online language channels for remote viewers. **Q:** What vote count approved the 2025 budget? **A:** 6-0 with Council President Hammill excused. ---

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