City of Bellingham Parks and Recreation Committee

**Council Member Stone, on cost-sharing clarification:** "So it seemed like for the project that cost split, it was 75% PSE and then 25% city of Bellingham and of our 25% then ecology would to reimburse up to 50%, but of our 25%." **Acting Director Potter, on project timeline:** "We're currently at 60% design on the project moving along so this grant will allow us to continue the work that we've been doing with the goal of construction in 2027 or 2028." **Council Member Williams, on meeting efficiency:** "I hope to keep you riveted all afternoon." **Council Member Cotton, making the motion:** "I'll move to approve entry into the remedial action grant agreement with Washington State Department of Quality." #

# City Council Parks and Recreation Committee: South State Street Cleanup Grant Authorization ## Meeting Overview The Bellingham City Council's Parks and Recreation Committee convened for a brief but important meeting on November 17, 2025, at 3:55 PM to consider a single agenda item. Committee Chair Edwin "Skip" Williams presided over the meeting, joined by Council Members Hannah Stone and Jace Cotton. The sole item before the committee was authorization to enter into a grant agreement with the Washington State Department of Ecology for partial funding of environmental remediation work at the South State Street Manufactured Gas Plant site, located at the north end of Boulevard Park. This was a routine procedural meeting to advance a significant environmental cleanup project that has been years in the making. The meeting demonstrated the often administrative nature of local government work, where major environmental and public health initiatives sometimes move forward through brief, technical discussions rather than dramatic debate. ## The South State Street Manufactured Gas Plant Cleanup Grant The heart of the meeting focused on Agenda Bill 24754, which would authorize the city to enter into a remedial action grant agreement with the Washington State Department of Ecology. As Chair Williams explained at the outset, "The city owns portions of a model toxic control act, MTCA, a cleanup site known as the South State Street Manufactured Gas Plant, which is a site located at the north end of Boulevard Park, making it a potentially liable party pursuant to the MTCA." The contamination stems from operations of a manufactured gas plant that operated from the 1890s to the 1950s, producing gas from coal to supply fuel for homes and businesses in Bellingham. The environmental legacy of this industrial past has affected soil, groundwater, and marine sediments within the site boundaries, encompassing approximately six acres of upland property and an estimated six acres of adjacent marine area within Bellingham Bay. Acting Director of Parks and Recreation Laine Potter provided the staff presentation, accompanied by project engineer Gina Austin. Potter offered a concise update on the project's status: "We're currently at 60% design on the project moving along so this grant will allow us to continue the work that we've been doing with the goal of construction in 2027 or 2028." The current phase of work involves detailed review and planning. As Potter explained, "We're currently reviewing all the 60% plans and submittals looking at tree planting locations and species selection for both the upland and marine areas looking at building reconstruction and relocation and then doing internal reviews with our operations folks." The financial structure of this cleanup effort reflects the complex liability arrangements typical of contaminated site remediation. The preliminary estimated construction cost stands at approximately $11.57 million. Under the cost-sharing agreement, Puget Sound Energy (PSE), as a successor owner of the gas plant, bears 75% of the costs while the City of Bellingham is responsible for 25%. However, the state Department of Ecology provides grants that reimburse up to 50% of the city's eligible costs, effectively reducing the city's net contribution to about 12.5% of the total project cost. This particular grant agreement covers $1 million in total eligible costs, with Ecology providing $500,000 and the city matching with $500,000 from its environmental remediation fund. Potter noted that "this grant will just carry us through the design process pending any major changes or amendments to the current scope will complete preparation and submission of 100% construction plans and specs." ## Council Discussion and Procedural Action The committee's discussion was brief but revealed the care with which council members approach complex financial arrangements. Council Member Stone sought clarification on the cost-sharing formula, asking, "So it seemed like for the project that cost split, it was 75% PSE and then 25% city of Bellingham and of our 25% then ecology would to reimburse up to 50%, but of our 25%." Potter confirmed this understanding was correct. This exchange, while technical, illustrates how local elected officials work to fully understand the financial implications of major projects before voting. The layered funding structure—with PSE covering three-quarters of costs, the city responsible for one-quarter, and the state reimbursing half of the city's share—represents the kind of complex public-private partnership arrangements that often emerge in environmental cleanup cases where multiple parties bear responsibility for contamination. With questions answered, Council Member Cotton moved the committee toward action: "I'll move to approve entry into the remedial action grant agreement with Washington State Department of Quality." Chair Williams, following proper procedure, called for any additional discussion before proceeding to a vote. Seeing no further discussion, Williams called for the vote: "All in favor of approving the motions, say aye." The response was unanimous: "Aye." With no opposition, the motion carried, and Williams noted, "Motion carries and I will report that at tonight's meeting." ## Closing & What's Ahead The meeting concluded as efficiently as it began, with Chair Williams stating simply, "And based on that, that is the end of our meeting." The entire proceeding lasted just over four minutes, demonstrating how local government can efficiently handle significant business when the groundwork has been properly laid through staff preparation and prior coordination. The committee's approval sends the grant agreement to the full City Council for final authorization, likely at that evening's regular meeting. The project represents a significant step forward in addressing decades-old environmental contamination at one of Bellingham's most prominent public spaces. With design work at 60% completion and construction planned for 2027 or 2028, the Boulevard Park cleanup exemplifies the long-term nature of environmental remediation work and the persistence required to address the legacy of past industrial activity. This brief meeting also showcased the often routine nature of environmental stewardship in local government—major cleanup efforts advancing through careful procedural steps rather than dramatic debate, with elected officials ensuring they understand complex funding arrangements before committing public resources to essential environmental protection work.

### Meeting Overview The Bellingham City Council Parks and Recreation Committee met on November 17, 2025 to consider a single agenda item: authorizing a grant agreement with the Washington State Department of Ecology to fund cleanup of contamination at the South State Street Manufactured Gas Plant site located at the north end of Boulevard Park. ### Key Terms and Concepts **MTCA (Model Toxics Control Act):** Washington State's primary environmental cleanup law that requires investigation and cleanup of contaminated sites. The South State Street site is being cleaned up under MTCA requirements. **Potentially Liable Party (PLP):** An entity that may be legally responsible for cleanup costs at a contaminated site. The City of Bellingham is a PLP because it owns portions of the contaminated property. **Remedial Action Grant (RAG):** A state funding program that helps pay for environmental cleanup activities. Ecology provides grants covering 50% of eligible cleanup costs to qualifying recipients. **Manufactured Gas Plant (MGP):** A facility that produced gas from coal to supply fuel for heating and lighting. The Bellingham facility operated from the 1890s to the 1950s and left soil, groundwater, and marine sediment contamination. **Agreed Order:** A legal agreement between potentially liable parties and the Department of Ecology that establishes requirements and timelines for environmental cleanup activities. **Environmental Remediation Fund:** The City's dedicated funding source used to pay for environmental cleanup projects, including the City's match portion for grants. **100% Construction Plans and Specifications:** Final detailed engineering drawings and technical specifications needed to begin construction of the cleanup remedy. **Boulevard Park:** The Bellingham city park where the contaminated manufactured gas plant site is located, making cleanup essential to protect public health and maintain recreational use. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Edwin H. "Skip" Williams | Committee Chair, City Council Member | | Hannah Stone | Committee Member, City Council Member | | Jace Cotton | Committee Member, City Council Member | | Laine Potter | Acting Director of Parks and Recreation | | Gina Austin | Project Engineer, City of Bellingham | ### Background Context The South State Street Manufactured Gas Plant operated from the 1890s through the 1950s, producing gas from coal to heat and light homes and businesses in Bellingham. Like many former industrial sites, decades of operations left behind contamination in soil, groundwater, and marine sediments. The contaminated area encompasses about six acres of upland property and six acres of adjacent marine area within Bellingham Bay. The City of Bellingham acquired most of the gas plant property around 1975 for use as Boulevard Park, not knowing about the contamination at the time. Under Washington's Model Toxics Control Act, property owners can be held liable for cleanup costs even if they didn't cause the contamination. The City entered into an Agreed Order in 2010 with Puget Sound Energy (another liable party as successor to the gas plant operator) and the Department of Ecology to investigate the contamination and develop a cleanup plan. The cleanup is expensive—with preliminary construction costs estimated at $11.57 million. However, a cost-sharing agreement allocates 75% of costs to PSE and 25% to the City. Additionally, the state's Remedial Action Grant program reimburses 50% of the City's eligible costs, significantly reducing the local taxpayer burden while ensuring this popular park can be safely used by the public. ### What Happened — The Short Version This was a brief, focused committee meeting that lasted just over four minutes. Committee Chair Skip Williams opened the meeting and introduced the single agenda item—approving a grant agreement with the state Department of Ecology for cleanup funding. Acting Parks Director Laine Potter explained that the City needs approval to enter into a $500,000 grant agreement. This grant will fund 50% of $1 million in eligible cleanup design costs, with the City paying the other $500,000 from its environmental remediation fund. The project is currently at 60% design completion and moving toward construction in 2027 or 2028. Council Member Stone asked a clarifying question about the cost-sharing arrangement, confirming that PSE pays 75% of total project costs while the City pays 25%, and then Ecology reimburses half of the City's share through grants. Council Member Cotton made a motion to approve the grant agreement. With no further discussion, the committee voted unanimously to approve, and Chair Williams noted he would report this recommendation to the full City Council at that evening's meeting. ### What to Watch Next • Full City Council consideration of this grant agreement recommendation at their regular meeting • Completion of final design documents (100% construction plans and specifications) over the next year • Permit applications to federal agencies for marine work • Potential construction start in 2027 or 2028, which will likely take two years to complete ---

**Q:** What is the total estimated construction cost for the South State Street cleanup? **A:** Approximately $11.57 million for the preliminary estimated construction cost of the cleanup remediation. **Q:** How long did this Parks and Recreation Committee meeting last? **A:** The meeting lasted 4 minutes and 4 seconds, focusing on a single agenda item. **Q:** Who are the three committee members present at this meeting? **A:** Chair Edwin H. "Skip" Williams, Hannah Stone, and Jace Cotton. **Q:** What percentage of cleanup costs does PSE pay versus the City of Bellingham? **A:** PSE pays 75% of total costs, while the City of Bellingham pays 25% under their cost-sharing agreement. **Q:** How much grant funding is the City requesting from Ecology? **A:** The City is requesting $500,000 in grant funding, which represents 50% of $1 million in eligible costs. **Q:** When did the manufactured gas plant operate at this site? **A:** The plant operated from the 1890s to the 1950s, producing gas from coal for local homes and businesses. **Q:** What is the current status of the cleanup design? **A:** The project is currently at 60% design completion and moving toward finalizing construction plans and specifications. **Q:** When is construction tentatively planned to begin? **A:** Construction is tentatively planned for 2027 or 2028, pending permit approvals from federal agencies. **Q:** What law requires this environmental cleanup? **A:** The Model Toxics Control Act (MTCA), Washington State's primary environmental cleanup law. **Q:** Where exactly is this contaminated site located? **A:** At the north end of Boulevard Park in Bellingham, encompassing about six acres of upland and six acres of marine area. **Q:** What makes the City a potentially liable party for this cleanup? **A:** The City owns portions of the contaminated property, making it potentially liable under MTCA even though it didn't cause the contamination. **Q:** What types of contamination are found at this site? **A:** Contamination affects soil, groundwater, and marine sediments, including lead, selenium, benzene, naphthalene, cyanide, and carcinogenic compounds. **Q:** When did the City acquire this property for park use? **A:** The City acquired most of the gas plant property around 1975 for use as a park. **Q:** What fund will the City use for its matching contribution? **A:** The City will use its environmental remediation fund for the $500,000 match to the grant. **Q:** Who is the project engineer for this cleanup? **A:** Gina Austin serves as the City's project engineer for the South State Street cleanup project. **Q:** What deliverable must be completed under this grant agreement? **A:** 100% Construction Plans and Specifications that provide sufficient detail for cleanup construction. **Q:** How long is construction expected to take once it begins? **A:** Construction will likely take two years to complete according to city staff. **Q:** What was the committee's final action on this agenda item? **A:** The committee voted unanimously to approve entering into the grant agreement with the Department of Ecology. **Q:** What happens next after this committee approval? **A:** Chair Williams will report the committee's recommendation to the full City Council at their evening meeting for final approval. **Q:** What other entity besides PSE and the City has ownership interests in this site? **A:** Burlington Northern Santa Fe Railway (BNSF) and the State Department of Natural Resources also control portions of the site. ---