City of Bellingham Public Works and Natural Resources Committee

The Bellingham Public Works and Natural Resources Committee held a brief but productive 16-minute meeting Sunday afternoon, unanimously approving four significant infrastructure and service items totaling over $8.9 million in contracts and grants. The session's marquee item was awarding a $5.98 million contract to Earthwork Solutions LLC for the Old Town Redevelopment Project, which represents the largest single infrastructure investment discussed. The committee also approved a telecommunications franchise agreement with NFC Northwest LLC, a subsidiary arrangement involving Ziply Fiber that will expand broadband services to local businesses and residents. Two substantial state grants totaling nearly $3 million for the Bellingham Central Library's interior renovation project rounded out the agenda, providing crucial funding for youth spaces and safety improvements. All four items moved forward with unanimous 3-0 votes and positive recommendations to the full City Council for consideration at the evening session. The meeting demonstrated efficient committee work, with staff providing clear technical explanations and committee members asking focused questions about project timelines, funding sources, and implementation details. The Old Town project represents a significant public-private partnership milestone, combining city infrastructure investment with developer commitments to create a more pedestrian-friendly district. The library grants, secured through competitive state processes and legislative advocacy, will enable long-awaited facility improvements that have been in the city's capital budget planning for years.

**AB 24807 - Old Town Redevelopment Contract Award:** - Vote: 3-0 approval - Contract amount: $5,982,839.23 to Earthwork Solutions LLC - Staff recommendation: Award contract (aligned with Council action) - Project scope: Street improvements on C, D, E Streets from Holly to Bancroft, and Astor Street from C to F Street - Funding: ~$3M county grant/loan, remainder from local real estate tax and transportation fund - Timeline: 5-month project beginning end of February, completion in July 2026 **AB 24808 - NFC Northwest Fiber Franchise:** - Vote: 3-0 approval - Staff recommendation: Approve franchise (aligned with Council action) - Terms: 10-year franchise agreement, $100,000 bond requirement - Service: Fiber optic broadband network components in city rights-of-way **AB 24815 - Library Grant Contract #26-96647-028:** - Vote: 3-0 approval - Grant amount: $999,100 (after administrative costs from original $1,030,000 appropriation) - Staff recommendation: Accept grant (aligned with Council action) - Source: Washington State Department of Commerce, 2025-2027 State Capital Budget **AB 24816 - Library Grant Contract #26-96647-001:** - Vote: 3-0 approval - Grant amount: $1,950,000 (after administrative costs from original $2,000,000 appropriation) - Staff recommendation: Accept grant (aligned with Council action) - Source: Washington State Department of Commerce, 2025-2027 State Capital Budget

**Craig Mueller, on Old Town project design:** "The intersections on Aster Street will be curbless. They will be raised intersections. So it will look similar to say Holly or Magnolia Champion by the federal building." **Michael Lilliquist, on franchise authority constraints:** "We really are bound by the municipal code and I really would appreciate us looking at that because I think that we could have some stronger language on undergrounding when it's feasible." **Lisa Anderson, on practical communication:** "I think having proper contact is really important, especially if something's not going right." **Rebecca Judd, acknowledging legislative support:** "That was championed by Rep. Timmons and so really wanted to give a shout out in this very difficult budget year... to Rep. Timmons and everyone in the 40th and 42nd who really went to bat for those funds for our community." **Craig Mueller, on project coordination:** "This was heavily coordinated with the developer so that we can make the Oldtown sub area plan vision a reality." **Michael Lilliquist, on project significance:** "I note that again the grant and loan funding from the county is approximately half of the budget around 3 million."

## Meeting Overview The Bellingham City Council's Public Works and Natural Resources Committee met on January 26, 2026, for a brisk 16-minute session that moved through four items with remarkable efficiency. Committee Chair Michael Lilliquist presided over the meeting, joined by committee members Lisa Anderson and Jace Cotton. The agenda included a significant contract award for the Old Town Redevelopment project, a routine telecommunications franchise agreement, and two state grant acceptances totaling nearly $3 million for the Central Library renovation project. This was a meeting characterized by technical presentations, minimal debate, and unanimous approval of all items. The most substantial discussion centered on the Old Town project's unique design features and the corporate structure behind a new fiber optic franchise. The library grants provided a welcome note of celebration in what has been described as difficult budget years for state funding. ## Old Town Redevelopment: $5.9 Million Street Transformation The committee's most complex agenda item was the contract award for the Old Town Redevelopment Project, a $5.98 million undertaking that represents years of public-private partnership negotiations coming to fruition. Project Engineer Craig Mueller explained that the work would focus on "back of curb to back of curb improvements on C Street, D Street and E Street from Holly Street to Bankroft and from Aster Street from C Street to F Street." The unusual "back of curb to back of curb" description prompted clarification from Chair Lilliquist, who noted this approach "leaves out just the sidewalk." Mueller confirmed that developers would handle most sidewalk construction as individual projects come online, though the city would complete "a couple of blocks of sidewalks um one block on sea street and then the block of aster from D to E." The project emerged from multiple agreements layered over several years: a 2020 development agreement with Barbbury, Inc., a 2023 agreement with Oldtown LLC, and a 2024 economic development improvement grant and loan agreement with Whatcom County. Mueller emphasized that the design "was heavily coordinated uh with the developer uh so that we can make the the Oldtown sub area plan uh vision a reality." A key design feature will be the creation of raised, curbless intersections on Aster Street. Mueller described these as similar to "Holly or Magnolian Champion uh by the federal building" and explained they would create "more of a pedestrian feel" in what "will probably be primarily a residential uh residential walking field." The bidding process attracted eight contractors, with Earthwork Solutions LLC submitting the lowest responsive bid of approximately $5.9 million, coming in about 15% below the engineer's estimate of $6.8 million. The project includes apprenticeship hour requirements due to its size and scope. Work is scheduled to begin "towards the end of February" and complete by July, a five-month timeline that Mueller noted "would then give time for occupancy of the first building that the developer will have, uh, coming online for additional housing." Funding sources reflect the multi-party nature of the redevelopment effort. Chair Lilliquist noted that "the grant and loan funding from the county is approximately half of the budget around 3 million and the other two sources of funding are their local real estate tax and the transportation fund itself." Anderson moved for approval without discussion, and the committee unanimously recommended the contract award. ## Fiber Franchise: Corporate Complexity Simplified The second agenda item involved granting a franchise to NFC Northwest LLC for fiber optic broadband network components in city rights-of-way. Chair Lilliquist noted the corporate complexity, observing that "this LLC is owned by somebody else who's owned by somebody else who's owned by somebody else. It's it appears to be a major telecom concern." Mike Wilson, assistant director of public works, confirmed this was "really just representing some business transactions to where the new player in town is Northwest or NFC Northwest." He explained the relationship with existing provider Ziply Fiber: "Zipley will own one of the main trunk lines that gets the internet service into town and then, uh, NFC Northwest will have the distribution network out to the the homes." Adding another layer of complexity, Wilson noted that "Ziply will continue to be the presence in terms of operating and maintaining and having the customer relationship. So, it's this corporate structure, these corporate agreements that uh are bringing us here with the new the new franchise B franchisee being NFC Northwest." The franchise follows standard city practices: a 10-year term (rather than the maximum 25 years allowed) and a $100,000 bond requirement. Wilson emphasized that the city's authority is limited, explaining they "really don't have the right to refuse. We just have the right to bind them to the local rules." Anderson raised a practical concern about outdated contact information, noting that Ziply's October 29th letter "was addressed to an employee who has been gone for three years." She requested the company update their records, observing that "having proper contact is really important, especially if something's not going right." Chair Lilliquist used the opportunity to advocate for municipal code updates, stating: "I really would appreciate us looking at that because I think that we could have some stronger language on undergrounding when it's feasible. Um, but we can't do that retroactively. So, I'd like to do that proactively as soon as uh that rises to the top of the priority work list." The committee unanimously approved the franchise agreement. ## Library Renovation: $3 Million State Investment The final two agenda items brought welcome news in the form of nearly $3 million in state grants for the Bellingham Central Library Interior Renovation Project. The grants, processed as separate contracts due to different funding streams, totaled $2,949,100 after administrative fees. Carol Rofkar, assistant director of public works over internal services, explained that the renovation would encompass "the ground floor um and renovations of the children's space and some modifications on the mezzanine level which is the administrative space and with any luck maybe some a touching of of some area on the the main floor for security for the help desk." The project timeline extends into next year, with Library Director Rebecca Judd outlining the phases: "we're going to go into uh design development and we'll be reaching in construction documents probably this summer. Uh going out to bid in fall." She anticipated "the work starting in probably January or very late uh 2026," meaning "library closures for patrons" would begin around that time. When asked about full funding, Judd confirmed the project appeared to be fully funded with the state grants. Chair Lilliquist took the opportunity to recognize the political effort behind the funding, particularly highlighting the $2 million Local and Community Project Grant: "that was um championed by uh Rep. Timmons and so really wanted to give a a shout out in in this very difficult budget year uh these past budget years in Olympia to Rep. Timmons and everyone at the in the 40th and 42nd who really went to bat for those funds for our community." Anderson moved to approve both grants simultaneously, and the committee unanimously recommended acceptance. ## Consent Agenda & Routine Business All four agenda items were approved with motions from Committee Member Anderson and unanimous support from the three-member committee. There were no items pulled from consideration, and no routine business was discussed beyond the scheduled agenda. ## Closing & What's Ahead The meeting concluded efficiently at 1:16 p.m., with Chair Lilliquist noting that all items would be brought forward to the full council meeting that evening with positive recommendations. Council President Stone indicated a break until the next committee meeting, with Parks and Recreation scheduled to begin at 1:45 p.m. The meeting exemplified the technical nature of much municipal work, with complex infrastructure projects and regulatory frameworks handled through straightforward procedural approvals. The combination of major development partnerships, state grant success, and routine franchise management reflected the diverse portfolio of the Public Works and Natural Resources Committee's oversight responsibilities.

## MODULE S1: STUDY GUIDE **Meeting ID:** BEL-CON-PWN-2026-01-26 ### Meeting Overview The Bellingham City Council's Public Works and Natural Resources Committee met on January 26, 2026, to review four agenda items. The committee approved a major street improvement contract for Old Town redevelopment, a telecommunications franchise agreement, and accepted nearly $3 million in state grants for library renovations. ### Key Terms and Concepts **Back of curb to back of curb:** Street improvements that include the roadway, utilities, and curbing, but not sidewalks or other streetscape features. In this Old Town project, developers will handle sidewalks as individual properties are developed. **Franchise agreement:** A legal contract allowing a private company to use public rights-of-way (like under streets) to install and operate infrastructure like fiber optic cables. The city cannot refuse qualified applicants but can set terms and conditions. **Curbless intersections:** Raised intersections where the street level is the same as the sidewalk level, creating a more pedestrian-friendly environment. Similar to existing intersections at Holly/Magnolia and Champion Streets. **Public-private partnership:** A development arrangement where the city and private developers share costs and responsibilities. In Old Town, the city handles street infrastructure while developers handle individual building improvements. **Rights-of-way:** Public spaces, typically under streets, where the city allows utilities to install infrastructure like pipes, cables, and fiber optic networks. **State capital budget:** Washington State's budget for major construction and infrastructure projects, which included grants for Bellingham's library renovation. **Local and Community Project Grant:** A competitive state grant program, with a maximum award of $2 million for local infrastructure projects. **Development agreement:** A legal contract between the city and developers outlining responsibilities, timelines, and standards for a redevelopment project. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Michael Lilliquist | Committee Chair, Sixth Ward City Councilmember | | Lisa Anderson | Committee Member, Fifth Ward City Councilmember | | Jace Cotton | Committee Member, At-Large City Councilmember | | Craig Mueller | Public Works Project Engineer | | Mike Wilson | Assistant Director of Public Works - Engineering | | Matt Stamps | Senior Assistant City Attorney | | Carol Rofkar | Assistant Director of Public Works - Internal Services | | Rebecca Judd | Library Director | | Stone | City Council President (presiding) | ### Background Context The Old Town area has been targeted for redevelopment for several years, with the city entering into agreements with developers Barbbury Inc. (2020) and Old Town LLC (2023). This $5.9 million street improvement project represents the city's part of a larger redevelopment vision outlined in the Old Town sub-area plan, aimed at creating more pedestrian-friendly streets and enabling new housing construction. The telecommunications franchise reflects ongoing changes in the industry, where companies reorganize ownership structures while maintaining service. NFC Northwest LLC is connected to Ziply Fiber, with Ziply continuing to provide customer service while NFC Northwest owns distribution infrastructure. The library renovation project addresses long-deferred maintenance and space needs, particularly for children's services and staff workspace. The nearly $3 million in state grants represents significant support during challenging state budget years, thanks to advocacy from local legislators. ### What Happened — The Short Version The committee unanimously approved all four items. They awarded a $5.9 million contract to Earthwork Solutions LLC for Old Town street improvements, which will include raised intersections and underground utilities. Work begins in February and finishes in July 2026, timed for the first new housing building. They approved a 10-year franchise agreement for NFC Northwest LLC to install fiber optic cables in city streets, with standard terms including a $100,000 bond. Committee members noted the need to update municipal code to strengthen undergrounding requirements for future franchises. The committee accepted two state grants totaling nearly $3 million for library interior renovations focusing on children's spaces and staff areas. Construction bidding will occur in fall 2026, with work beginning in early 2027 and requiring temporary library closures. ### What to Watch Next - Old Town construction progress from February through July 2026 - Full City Council consideration of all four items at the January 26 evening meeting - Library renovation design development through summer 2026 and fall bidding process - Potential municipal code updates to strengthen telecommunications undergrounding requirements ---

## MODULE S2: FLASH CARDS **Meeting ID:** BEL-CON-PWN-2026-01-26 **Q:** How much was the winning bid for Old Town street improvements? **A:** $5.9 million from Earthwork Solutions LLC, about 15% below the engineer's estimate of $6.8 million. **Q:** Which streets are included in the Old Town redevelopment project? **A:** C Street, D Street, and E Street from Holly to Bancroft, plus Astor Street from C to F Street. **Q:** When will Old Town construction begin and end? **A:** Construction starts in late February 2026 and will be completed in July 2026, taking approximately five months. **Q:** What makes the Astor Street intersections special in this project? **A:** They will be curbless, raised intersections similar to Holly/Magnolia and Champion Streets, creating a more pedestrian-friendly environment. **Q:** Who is NFC Northwest LLC and why do they need a franchise? **A:** A telecommunications company connected to Ziply Fiber that needs city permission to install fiber optic cables in public rights-of-way. **Q:** What are the terms of the telecommunications franchise agreement? **A:** 10-year term with a $100,000 bond, consistent with the city's recent franchise practices. **Q:** How much grant money did the library receive from Washington State? **A:** Nearly $3 million total: $999,100 from one contract and $1.95 million from another, both for interior renovations. **Q:** What will the library grants be used for? **A:** Youth and staff space improvements, safety and security updates, focusing on the ground floor children's area and mezzanine administrative space. **Q:** When will library construction begin? **A:** Construction is expected to start in January or very late 2026, after design development and fall 2026 bidding. **Q:** How is Old Town project funding divided? **A:** Approximately half ($3 million) from Whatcom County grant/loan, with remaining funding from local real estate tax and transportation fund. **Q:** What does "back of curb to back of curb" mean? **A:** Street improvements that include roadway and utilities but not sidewalks, which developers will add as they build individual projects. **Q:** Why can't the city refuse franchise applications? **A:** Municipal code and city charter limit the city's authority - they can set terms and conditions but cannot deny qualified applicants. **Q:** Who championed the library's $2 million Local and Community Project Grant? **A:** State Representative Timmons, working with legislators from the 40th and 42nd districts during difficult budget years. **Q:** What contacted issue did Councilmember Anderson notice with the Ziply letter? **A:** The letter was addressed to Chad Schalhouser, a former employee who left the city about three years ago. **Q:** How many bids were received for the Old Town project? **A:** Eight bids were opened on December 17, 2025, with Earthwork Solutions submitting the lowest responsive bid. **Q:** What special requirement applies to the Old Town project due to its size? **A:** An apprenticeship hour requirement, reflecting the project's substantial scope and budget. **Q:** What utility lines will NOT be undergrounded in Old Town? **A:** Transmission lines that run on C Street will remain overhead while other utility lines go underground. **Q:** When will the first Old Town building be ready for occupancy? **A:** After July 2026 when street improvements are complete, allowing the developer's first housing building to come online. **Q:** What committee change does Chair Lilliquist want to see for future franchise agreements? **A:** Updates to municipal code language requiring stronger undergrounding provisions when feasible. **Q:** How long is the library renovation timeline from now? **A:** Design development through summer 2026, bidding in fall 2026, contract approval process, then construction starting early 2027. ---