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BEL-CON-2024-12-16 December 16, 2024 City Council Regular Meeting City of Bellingham 12 min
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Executive Summary

The December 16th, 2024 regular meeting of the Bellingham City Council carried the weight of the year's end, marked by Mayor Lund's reflections on her first year in office and the council's detailed deliberations over significant policy matters. Council President Pro Tempore Hollie Huthman presided over the proceedings in City Hall's council chambers, filling in for President Dan Hammill who attended remotely due to technical constraints with hand recognition in the digital format.

What's Next

**January 13, 2025**: Public hearing on parking minimums interim ordinance for potential third and final vote. **January 2025**: Revised landlord-tenant "junk fees" ordinance with staff amendments to be considered. **2025**: Multiple touchpoints on nitrogen reduction evaluation at Post Point plant, with final decisions needed by end of year. **January 6, 2025**: Lake Whatcom watershed property acquisition closing. **2025**: Council reorganization meeting to discuss procedural changes including public hearing timing. **Early 2025**: Construction begins on 12th & Finnegan multimodal safety improvements, completion by summer 2025. **First quarter 2025**: GRACE program presentation to Council from Whatcom County staff. **2025**: National infrastructure bank resolution consideration by Council Member Anderson. #

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Full Meeting Narrative

# A Meeting of Reflections and Deliberations: Bellingham Council's December Gathering The December 16th, 2024 regular meeting of the Bellingham City Council carried the weight of the year's end, marked by Mayor Lund's reflections on her first year in office and the council's detailed deliberations over significant policy matters. Council President Pro Tempore Hollie Huthman presided over the proceedings in City Hall's council chambers, filling in for President Dan Hammill who attended remotely due to technical constraints with hand recognition in the digital format. ## Mayor Lund's First-Year Reflection Mayor Lund used her report to offer a contemplative look back at her inaugural year as Bellingham's chief executive. With evident pride, she spoke of creating "the culture, the system and the tools to do this work where the standard of performance is excellence." The mayor's vision of a "one city approach" had taken shape throughout 2024, she reported, emphasizing how this philosophy "values public service as noble work that belongs to all of us." "There is no greater endeavor we can undertake than work together to do lasting good for both our people and the planet," Lund reflected, her words capturing both the ambition and the collaborative spirit she has tried to foster within city government. The mayor highlighted two particularly meaningful experiences from her first year. She spoke with genuine appreciation about discovering "how many local heroes there are throughout the entire city organization" — employees whose daily work often goes unnoticed but who "go to work and they go home, but they do their work to make a better Bellingham for all of us." Perhaps more personally significant was her invitation to serve as a witness at the Indigenous Peoples Day ceremony at the Lummi Nation. "Part of being a witness is coming back and reporting on what I learned," Lund explained, describing it as "just a tremendous honor." She committed to making the continued development of relationships with tribal partners "a top priority for me in the coming years ahead." ## Infrastructure and Safety Investments The Public Works and Natural Resources Committee, chaired by Council Member Hannah Stone, brought forward a significant infrastructure project that demonstrated the city's commitment to multimodal transportation safety. The 12th and Finnegan Multimodal Safety Improvements project, funded through a Washington State Transportation Improvement Board grant along with local street and transportation funds, represents a $1.31 million investment in Fairhaven's transportation infrastructure. Strider Construction Company emerged as the successful bidder with a price of $1,306,658 — slightly below the engineer's estimate of $1,318,852. The scope includes a new traffic signal at 12th Street and Mill Avenue, rectangular rapid flashing beacons at two additional intersections, and enhanced pedestrian infrastructure including new sidewalks, parallel parking, and street trees along a section of Finnegan Way. Joel Pfundt, interim Public Works co-director, outlined the timeline for the project, with construction expected to begin in early 2025 and completion targeted for summer. Some delays are possible due to material ordering issues related to traffic signals, but staff expressed confidence in delivering this important safety enhancement to the community. ## The Complex Challenge of Nitrogen Reduction The committee also received an introductory presentation on one of the city's most technically challenging environmental obligations: nitrogen reduction at the Post Point Resource Recovery Plant. This issue stems from the Puget Sound Nutrient General Permit issued by the Department of Ecology in 2022, which requires the city to evaluate and potentially implement measures to reduce nitrogen discharge into Bellingham Bay. Mike Olinger, interim Public Works co-director, along with engineering staff and consultants from Carollo Engineers, presented the complex chemistry and engineering challenges involved. Council Member Stone noted that those interested in the technical details would benefit from watching the full committee presentation, suggesting that "you might want to have some refreshers on chemistry prior to watching." The city faces significant constraints in addressing nitrogen reduction, including both cost considerations and the physical limitations of the Post Point facility's footprint. Decisions will need to be made by the end of 2025, with multiple touchpoints planned with both the council and the Water Resources Advisory Board throughout the coming year. ## Parks and Recreation Fee Adjustments Under the leadership of Committee Chair Skip Williams, the Parks and Recreation Committee addressed the practical matter of facility use fee adjustments. Director Nicole Oliver presented a comprehensive review of fees across city recreational facilities, with the overarching goal of streamlining the fee structure while ensuring rates adequately cover maintenance and operational costs. The most significant adjustment involved the Arne Hanna Aquatic Center, with an anticipated revenue increase to the city of approximately $221,000. However, as Williams explained, this represented "making up for keeping the prices level during the pandemic" along with covering increased staff wages and expanded programming including the community shower program. At Lake Padden Golf Course, the department recommended a cumulative increase of 6.84% to address operational costs, wage increases, and inflation. Despite this adjustment, Williams noted with evident satisfaction that "Padden is still the lowest cost golf course out of the other six 18-hole courses in Whatcom County." He also highlighted the course's success, with rounds played increasing from 27,075 in 2013 to 42,785 in 2023. "So whatever they're doing over there at Padden, they're doing it right," Williams observed. "And I play there often, and they are." Other facilities seeing fee adjustments included the Woodstock Farm and Van Wyck Lodge, where new cleaning fees were added to address occasional extensive cleanup needs beyond regular protocols. The Bloedel Community Building rates were adjusted to better serve local youth sports needs, while the Cordata Park Pavilion rental rate was increased to reflect its larger occupancy capacity of 62 people. Through committee discussion, the resolution was amended to clarify that city services are available to "citizens and visitors of Bellingham," acknowledging both the local community and visitors, including neighbors from Canada who frequently use city facilities. Council Member Anderson raised important concerns about the impact of increased fees on neighborhood associations, particularly for groups seeking to rent facilities like the Cordata Pavilion for meetings. The mayor indicated that staff would explore possible increases to grants available to neighborhood associations to help offset these increased costs. ## The Parking Minimums Debate The afternoon's Committee of the Whole session was dominated by an extensive discussion of the proposed interim ordinance eliminating parking minimums citywide — one of the most substantive policy debates of the year. The ordinance, drafted in response to Mayor Lund's Executive Order 2024-02 on expanding housing options, would remove Title 20 regulations requiring minimum parking stalls for developments throughout the city. Blake Lyon, Planning and Community Development Director, outlined how parking minimums can reduce land supply available for housing and often mandate parking in excess of actual demand. The interim ordinance would provide immediate relief to some projects while allowing staff time to collect community feedback and prepare final parking regulations over the coming year. The debate revealed significant philosophical differences among council members about the best approach to housing policy and affordability. Council Member Lisa Anderson expressed strong reservations, explaining her three-year advocacy for inclusionary zoning as a tool to address Bellingham's affordable housing needs. "Over three years ago, I asked the city to look into inclusionary zoning because the reality is, as we go currently to the future, we're going to have to develop about 15,000 units that are affordable at the 80% to 60% AMI," Anderson said. "And the reality of capitalism is that as things get built, it's going to be at market rates." Anderson worried about missed opportunities, particularly citing an Old Town development where parking reduction allowed for 30 additional units. "How nice would it have been if three or four of those could have been affordable for basically our workforce to be able to afford to live there?" she asked. ## The Amendment Debate Council Member Michael Lilliquist proposed a significant amendment that would have limited the parking minimum elimination to specific areas and affordable housing developments. His amendment would have applied the new rules to developments with affordable housing units and to areas within a quarter-mile of high-frequency transit routes, along with commercial, industrial, institutional, and Urban Village zones. "This would basically remove parking mandates in three-quarters of the city, and in all the areas where people say they're worried about excess parking," Lilliquist explained. He argued for a "more strategic and targeted approach" that had been used by thousands of cities across the country. Council Member Anderson supported the amendment, drawing on her Planning Commission experience to advocate for densification in transportation corridors and Urban Villages. "I've been really a stalwart on trying not to create sprawl and to make sure that we have a very livable city," she said, expressing concern about eliminating parking requirements before transportation infrastructure could catch up. However, Council Member Jace Cotton opposed the amendment, arguing that a citywide approach would provide necessary flexibility. "Open option parking, fully flexible parking as a baseline allows for that responsiveness to geography, to access to transit, to the preferences of the people who will be living there," Cotton said, citing support letters from transit advocates, housing advocates, builders, and environmentalists. The amendment ultimately failed on a 2-5 vote, with only Lilliquist and Anderson supporting the more targeted approach. ## Supporting Perspectives and Final Passage Despite his amendment's failure, Council Member Lilliquist ultimately voted for the main ordinance, offering a nuanced perspective on the benefits and limitations of the policy. "Our parking mandates are broken," he stated. "They lead to a misuse of our land. They are holding back the kind of community that we need for social reasons, for environmental reasons." He acknowledged that while the ordinance would increase housing supply generally, it was "not actually designed to deliver affordability" directly. Lilliquist expressed particular concern about what he termed "modest income housing" — a segment that lacks the federal, state, and local funding sources available for the lowest-income populations. "I fear that by removing parking mandates, they're going to be left out as much as they are now," he said, adding personally, "I don't say this as an outsider, I'm talking about myself." Council Member Williams emphasized the interim nature of the ordinance, pushing back against concerns that the policy would become permanent without further review. He noted Bellingham's dramatic decline in housing permits from 1,286 in 2011 to just 516 in 2024, describing this as "an extreme decline" requiring urgent action. "I believe that we have to take the time to figure it out how it applies to us, not to New York, not to Boston, not to Seattle, but to Bellingham," Williams said. The ordinance ultimately passed 6-1, with only Council Member Anderson voting in opposition. A public hearing is scheduled for January 13, 2025. ## Supporting Community Programs The committee also unanimously approved renewal of the interlocal agreement with Whatcom County supporting the GRACE (Ground Level Response and Coordinated Engagement) program. This initiative provides intensive care coordination for individuals who are frequent users of emergency response services, aiming to reduce first responder calls, emergency department visits, and arrests while improving health and stability outcomes. The city commits to paying 40% of program expenses through 2026, with a 3% annual increase built into the agreement. Deputy Administrator Forrest Longman presented the agreement, and council members expressed interest in hearing from Whatcom County's Malora Christensen, who manages the Response Systems Division, early in 2025. ## Ongoing Work on Tenant Protections The council continued its work sessions on landlord-tenant relations and unfair or excessive fees, addressing both conventional rental agreements and manufactured/mobile home lease agreements. These items represented ongoing refinement of draft ordinances aimed at protecting tenants from "junk fees." Council Member Cotton expressed gratitude for staff work on legislation that wasn't originally in the year's work plan, while Council Member Williams emphasized that the current drafts would frame the public outreach process, with potential changes based on community input from tenants, landlords, and property managers. ## Executive Session Actions During the closed executive session, the council authorized Mayor Lund to complete two significant transactions. The first involved acquiring 1.92 acres in the Lake Whatcom Watershed with four potential development units from property owner Ian Henderson for $300,000, with closing scheduled for around January 6, 2025. The second authorized a litigation settlement of $325,000 in the matter of Stodola v. Bellingham. Council Member Lilliquist provided context, explaining that this case involved "a terrible situation where a young man was crossing a street on a bicycle" with multiple contributing factors, including "a malfunctioning crossing signal." While the city had taken steps to mitigate risk, he noted that "a small component of responsibility remained with the city." ## Looking Forward In Old and New Business, council members outlined several initiatives for 2025. Council Member Anderson announced plans to propose a resolution supporting creation of a national infrastructure bank, potentially offering lower-interest funding for major projects like the Post Point improvements. Council Member Stone highlighted several items: appreciation for Dr. Caprice Hollins' microaggressions training for city leaders, acknowledgment of Council Member Cotton's successful resolution opposing the Kroger-Albertsons merger (which was subsequently blocked by a federal judge), and a request for staff to explore "Welcoming Community Certification" from Welcoming America. Stone also reflected on the meeting's procedural innovation of moving the public hearing for the parking ordinance to the third and final vote in January, rather than the traditional first and second reading. "Sometimes the perception has been that [third and final] feels kind of like a rubber stamp," she observed, suggesting this approach might provide "deeper engagement and additional discussion." ## Consent Agenda and Routine Business The council approved routine business items including payroll authorizations, accounts payable transactions, and several intergovernmental agreements. Notably, the consent agenda included a $165,000 grant from the Department of Commerce to evaluate 29 city-owned sites for community solar installations that could benefit low-income residents. The meeting concluded with final passage of two ordinances: a budget amendment authorizing an interfund loan to the Workers Compensation Fund, and a housekeeping ordinance repealing obsolete sections of the municipal code. As the council adjourned at 8:12 PM, the substantial policy discussions of the day reflected both the complexity of municipal governance and the thoughtful deliberation that characterizes Bellingham's approach to significant policy decisions. With major initiatives like parking reform moving toward public hearings in January, the stage was set for continued community engagement in the new year.

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Study Guide

### Meeting Overview The Bellingham City Council met on December 16, 2024, with Council President Pro Tempore Holly Huthman presiding as President Hammill attended remotely. The main focus was on major housing and infrastructure decisions, including a controversial interim ordinance to eliminate parking minimums citywide and various committee reports on ongoing city projects and fee adjustments. ### Key Terms and Concepts **Interim Ordinance:** A temporary law that takes immediate effect while the city collects community feedback and develops permanent regulations, in this case regarding parking requirements. **Parking Minimums:** City regulations requiring developers to provide a specific minimum number of parking spaces for new developments, which can increase housing costs and reduce available land for development. **Inclusionary Zoning:** A planning tool that requires or encourages developers to include affordable housing units within market-rate developments. **AMI (Area Median Income):** A statistical measure used to determine housing affordability levels, with affordable housing typically targeted at 60-80% of AMI. **Nitrogen Reduction:** Environmental process required at the Post Point Resource Recovery Plant to reduce harmful nutrient discharge into Puget Sound per state environmental regulations. **GRACE Program:** Ground Level Response and Coordinated Engagement program providing intensive care coordination for frequent emergency service users. **Land Value Capture:** Economic concept where public policy changes that increase property values are leveraged to fund public benefits like affordable housing. **Post Point Resource Recovery Plant:** Bellingham's wastewater treatment facility that processes sewage before discharging treated water into Bellingham Bay. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Holly Huthman | Council President Pro Tempore, presiding | | Dan Hammill | Council President (attended remotely) | | Kim Lund | Mayor | | Hannah Stone | Council Member, Public Works Committee Chair | | Skip Williams | Council Member, Parks & Recreation Committee Chair | | Lisa Anderson | Council Member | | Michael Lilliquist | Council Member | | Jace Cotton | Council Member | | Blake Lyon | Planning and Community Development Director | | Nicole Oliver | Parks and Recreation Director | ### Background Context This meeting occurred during a critical period for Bellingham's housing crisis, with building permits dropping dramatically from 1,286 in 2011 to just 516 in 2024. The state has mandated cities increase housing production, leading to Mayor Lund's Executive Order 2024-02 directing the elimination of parking minimums to reduce development costs and increase housing supply. Meanwhile, the city faces significant infrastructure challenges, including required nitrogen reduction at its wastewater treatment plant and ongoing efforts to address homelessness through programs like GRACE. The council also dealt with landlord-tenant relations, working on ordinances to eliminate "junk fees" in rental agreements, reflecting broader concerns about housing affordability for both renters and buyers. ### What Happened — The Short Version The council approved several routine appointments and fee adjustments, then tackled the contentious interim ordinance eliminating parking minimums citywide. Council Member Lilliquist proposed an amendment to limit the elimination to only affordable housing developments and transit-oriented areas, but it failed 2-5. The main ordinance passed 6-1, with only Council Member Anderson voting no due to concerns about missing opportunities for inclusionary zoning requirements. The council also approved renewal of the GRACE program with Whatcom County, continued work on landlord-tenant fee regulations, and authorized a $300,000 property acquisition in the Lake Whatcom watershed. ### What to Watch Next - Public hearing on the parking minimums ordinance scheduled for January 13, 2025, with final vote that day - Continued development of landlord-tenant "junk fees" ordinance expected in January 2025 - Upcoming decisions on nitrogen reduction methods at Post Point treatment plant by end of 2025 - Council reorganization meeting in January to discuss procedural changes including public hearing timing ---

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Flash Cards

**Q:** What was the vote count on the interim ordinance eliminating parking minimums? **A:** The ordinance passed 6-1, with only Council Member Lisa Anderson voting no. **Q:** Who presided over the December 16, 2024 meeting and why? **A:** Council President Pro Tempore Holly Huthman presided because President Dan Hammill attended remotely and couldn't see raised hands for managing discussion. **Q:** What was the failed amendment proposed by Council Member Lilliquist? **A:** An amendment to limit parking minimum elimination to only affordable housing developments and areas within a quarter-mile of transit stops, which failed 2-5. **Q:** How much will the city pay for the Lake Whatcom watershed property acquisition? **A:** $300,000 for 1.92 acres with four potential development units, with closing around January 6, 2025. **Q:** What is the GRACE program and how is it funded? **A:** Ground Level Response and Coordinated Engagement program for frequent emergency service users, with Bellingham paying 40% of program expenses up to the total amount. **Q:** How many building permits were issued in Bellingham in 2024 versus the peak year? **A:** 516 permits in 2024 compared to 1,286 in 2011, representing a dramatic decline in housing production. **Q:** What was Mayor Lund's Executive Order 2024-02 about? **A:** Expanding housing options in Bellingham, which led to the interim ordinance eliminating parking minimums citywide. **Q:** When is the public hearing scheduled for the parking minimums ordinance? **A:** January 13, 2025, which will also be the date for third and final vote on the ordinance. **Q:** What is the estimated cost range for nitrogen reduction at Post Point treatment plant? **A:** Potentially around $500 million, making it a significant financial challenge for the city. **Q:** What fee increases were approved for Parks and Recreation facilities? **A:** Various increases including 6.84% cumulative increase for Lake Padden Golf Course and approximately $21,000 increase for Arne Hanna Aquatic Center operations. **Q:** Who was reappointed to the Design Review Board? **A:** Maggie Bates to a second term expiring January 11, 2029. **Q:** What was the settlement amount authorized for the Stodola litigation? **A:** $325,000 to settle claims related to a bicycle accident involving a malfunctioning crossing signal. **Q:** What certification is Council Member Stone requesting staff to research? **A:** "Welcoming Community Certification" from Welcoming America, focusing on immigrant and inclusive community policies. **Q:** What was Council Member Anderson's main concern about the parking ordinance? **A:** Missing the opportunity to use parking reductions as leverage for inclusionary zoning to create affordable housing units. **Q:** How much funding did the city receive for community solar study? **A:** $165,000 from the Department of Commerce to evaluate 29 city-owned sites for potential community solar installations. ---

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