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Committee of the Whole

BEL-CTW-2025-03-24 March 24, 2025 Committee of the Whole City of Bellingham
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Mar
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Executive Summary

The Bellingham City Council's Committee of the Whole received critical updates on two major policy fronts during its March 24 session. First, contracted lobbyists Luke Esser and Nick Federici provided an update on the 2025 state legislative session, outlining significant transportation revenue proposals and public safety funding options that could affect the city. The House is proposing a $1 billion transportation revenue package including a nine-cent gas tax increase, while the Senate offers both no-new-revenue and new-revenue alternatives. The majority of the meeting focused on a comprehensive presentation of public engagement findings for proposed rental fee ordinances. Staff presented results from a 546-person survey and three focus groups facilitated by the Whatcom Dispute Resolution Center. The findings revealed near-universal support for fee transparency (97-99% across all groups) but significant division on fee limits and prohibitions, with tenants strongly supporting restrictions while landlords, particularly large ones, opposing them. Council members engaged in substantive discussion about the rental fee findings, with particular focus on the role of property management companies as a "third party" driving fee proliferation. The session concluded with Council Member Lilliquist successfully requesting staff research on building height minimums as a potential housing policy tool. #

Key Decisions & Actions

& Actions **Motion Passed - Height Minimum Research Request:** Council voted 6-0 (with Hammill abstaining) to direct Legislative Policy Analyst Iris Nott to research building height minimums, including what they are, where they've been used, why they've been used, and examples of different approaches. This research aims to address potential under-development issues where developers don't utilize full zoning density or height allowances. **Presentations Received:** Council received informational presentations on AB 24485 (state legislative session update) and AB 24486 (rental fee ordinances public engagement findings). No formal votes were taken on these items, with the rental fee discussion continuing to April 14, 2025. **Executive Session Items:** The meeting concluded with a 12-minute executive session covering potential property acquisition and DeBruin et. al v. COB litigation. #

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Notable Quotes

**Luke Esser, on transportation funding challenges:** "That is largely to keep the state on a roughly break even course. There's some additional money for operations and maintenance there, but it's mostly just catching up with the fact that gas taxes are a declining revenue source both because of more electrical vehicles and also because of the increased fuel efficiency over the years." **Council Member Lilliquist, on property management company dynamics:** "What I'm seeing is that property management companies are having to not only seek to be paid for their work by the landowner, their direct client with whom they have a contractual business relationship, but they also feel they need to then turn the other way to the tenants for more revenue." **Council Member Lilliquist, on fee-to-rent conversion:** "I'm fine with that if the rents are higher to the degree to which the fees no longer exist. I mean, I would consider that actually a good outcome if for the renters it had no impact o

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What's Next

**April 14, 2025:** Council work session on rental fee ordinances, where members may consider revisions to the ordinances, fiscal impacts, and provide direction on how to proceed. Staff will prepare analysis comparing proposed local regulations with pending state legislation to avoid conflicts. **State Legislative Deadlines:** April 2nd for bills to pass jurisdictional committees, April 8th for fiscal committees, April 16th for opposite house passage. Key housing bills (HB 1217, HB 1403, HB 1109, SB 5469) are scheduled for votes this week. **Height Minimum Research:** Legislative Policy Analyst Iris Nott will integrate the approved height minimum research project into her work plan and provide a report back to Council on timing and scope. **Food Security Funding Update:** Nick Federici committed to reviewing House and Senate budget proposals for food security funding impacts and sending Council an update. **Ongoing Executive Session Items:** Two matters remain under discussion - potential property acquisition and DeBruin et. al v. COB litigation. #

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