Whatcom County Council Finance and Administrative Services Committee

The Whatcom County Finance and Administrative Services Committee held a brief but substantive meeting covering seven consent agenda items totaling over $2.3 million in contracts and agreements, plus discussions on three budget ordinances and one final recommendation. The meeting proceeded efficiently through routine business, with the most significant discussion centered on a $944,084 childcare facility contract that revealed potential for additional funding requests due to construction cost escalation. Committee members approved all seven consent items unanimously, including a $651,108 criminal justice treatment agreement, a $454,000 forestry conservation easement, and the controversial childcare facility contract. Discussion items included establishing project funds for the Sheriff's Office leasehold improvements ($1.5 million from REET funds) and the Birch Bay Beach Park project ($4.2 million total), plus a year-end budget supplemental of $3.565 million. The committee also recommended adoption of an ordinance establishing the Opioid Settlement Fund. The meeting highlighted ongoing challenges with cost escalation in county projects, particularly in construction and specialized services like conflict attorney contracts and hazardous waste disposal.

**UNANIMOUS CONSENT APPROVALS (all 2-0-1 with Buchanan absent):** - **AB2025-737:** General Code LLC contract for legal code publishing services - $16,000 (substitute version) - **AB2025-791:** WSU Whatcom County Extension contract amendment - $282,257 (total $3.8 million) - **AB2025-800:** K2 Towers III contract amendment - $140,133 (total $266,579) - **AB2025-802:** Gitts Autobody vehicle repair contract - $80,000 - **AB2025-804:** Criminal Justice Treatment Account interlocal agreement - $651,108 - **AB2025-817:** Forestry conservation easement on Maple Falls Forest - $454,000 - **AB2025-819:** Opportunity Council childcare facility buildout - $944,084 **RECOMMENDATION TO FULL COUNCIL:** - **AB2025-756:** Ordinance establishing Opioid Settlement Fund - RECOMMENDED 2-0-1 **ITEMS DISCUSSED (no action required):** - AB2025-797: Sheriff's Office Leasehold Improvements Fund ($1.5 million from REET) - AB2025-799: Birch Bay Beach Park Project Fund (initial funding from LTAC and Parks Special Revenue) - AB2025-818: 2025 Budget Amendment #12 ($3.565 million supplemental)

**Todd Donovan, opening the meeting:** "I will move approval and then open up for discussion and if there's any items people want considered separately." **Tyler Byrd, on project funding frustrations:** "It's a little frustrating for me to see it come back and now need more money to finish up what we thought was already being approved." **Eric Chambers, explaining project phases:** "The Bellas project is being conducted in 2 phases. Phase 1 is a primarily affordable housing complex that we funded about a year and a half ago for 2Million dollars." **Council Member Byrd, on budget presentation:** "When these things come forward and they tell us like, hey, you're going to get X, Y, Z in this building, part of the appeal, this as a specific case... am I the only one that looks at a project like that and says, hey, I think we're funding the whole thing?" **Jennifer Hayden, on waste disposal costs:** "For vapes come to mind, a bucket, a five-gallon bucket of vapes is about $700 to get rid of." **Ben Knox, on Birch Bay project goals:** "Real community support for establishing restrooms and parking to facilitate tourism development in the community."

## Meeting Overview On Tuesday morning, November 18, 2025, the Whatcom County Council's Finance and Administrative Services Committee convened for a brisk 34-minute session in the hybrid council chambers. Committee Chair Todd Donovan led the meeting alongside Committee Member Tyler Byrd, while Barry Buchanan was absent on county business. Also present were Council Members Ben Elenbaas, Jon Scanlon, and Mark Stremler. The session was a quintessential example of county government's financial oversight role — seven consent agenda items moving through efficiently, three budget ordinances up for discussion, and one final recommendation. While most items sailed through without controversy, the meeting offered glimpses into the complex world of municipal project financing, from forestry conservation easements to childcare facilities, and the perpetual challenge of managing cost escalations in public projects. ## Consent Agenda Items — Forestry Easements and Childcare Controversies The meeting began with seven consent agenda items worth over $2.4 million in contracts and agreements. Chair Donovan moved approval as a block, then opened the floor for questions before any separate consideration requests. ### Maple Falls Forest Conservation Easement Council Member Stremler's questions about Item 6 — a $454,000 forestry conservation easement on the Maple Falls Forest property — provided insight into how the county balances conservation with recreation. Lauren Templeton from Planning and Development Services explained the easement would protect the property "for long term forestry" and "from development specifically," but recreation remained secondary. "Is this part of the dream of this trail from here to Timbuktu, or whatever this trail?" Stremler asked, referring to the Bay to Baker trail concept. Templeton clarified that while the easement "will allow for recreation, that is not the priority of this easement. The priority is forestry." She noted the landowner on this property was "open to public access," unlike the same owner's Canyon Creek property where "they had requested no public access." ### Bellis Fair Childcare Facility Funding Concerns The most contentious discussion centered on Item 7 — a $944,084 contract with Opportunity Council for childcare facility improvements at the Bellis Fair Family Housing project. Council Member Byrd requested separate consideration, leading to a detailed exchange that exposed the complexities of phased project funding. Eric Chambers from Health and Community Services explained that the Bellis project operates in two phases: "Phase 1 is a primarily affordable housing complex that we funded about a year and a half ago for $2 million." The current request covers "the early learning centre that will be built inside that property," which had been "funded in 2022" but required waiting "until they had the rest of the capital to complete this project." Byrd expressed frustration with what appeared to be incremental funding requests: "It's a little frustrating for me to see it come back and now need more money to finish up what we thought was already being approved." He questioned whether project presentations should include total costs upfront rather than separate housing and childcare components. Deputy Executive Kayla Schott-Bresler provided crucial transparency, warning that "in the next several months, we will bring a contract amendment forward to add additional funds on top of this for this project" due to cost escalation, with Opportunity Council having "applied for our recent Healthy Children's Fund capital RFP as well." Chambers confirmed the original $998,000 budget from 2022 applications now faces significant cost increases: "We've seen lots of cost escalations... the total project cost is about $3.5 million." ## Sheriff's Office Leasehold Improvements The first discussion item addressed creating a project fund for Sheriff's Office tenant improvements. Deputy Executive Aly Pennucci provided a concise overview: it's "the budget action to create the project-based budget to fund the tenant improvements at the new location for the Sheriff's Office. The lease was approved at the last council meeting." The $1.5 million funding comes from Real Estate Excise Tax (REET) funds, establishing the framework for the Sheriff's Office relocation project approved in previous meetings. ## Birch Bay Beach Park — More Than Just Bathrooms Parks Director Bennett Knox presented the Birch Bay Beach Park project, describing it as implementing "the first phase of what was adopted or presented in 2016 for the first phase of the master plan for the park." The $4.2 million project focuses on essential infrastructure: "restrooms, parking, and utilities associated with that." Knox emphasized community support for "establishing restrooms and parking to facilitate tourism development in the community," with the project serving as "shoreline access" supporting the existing protective berm. The facility will include "a shower facility for folks who are coming off the beach as well." Council Member Stremler inquired about sea level rise considerations, with Knox confirming that "vulnerability assessment that's been done, projections in that way" would be incorporated into the design for proper elevation of facilities. ### Container Shop Concept Revival Council Member Byrd raised an intriguing possibility, recalling previous discussions about using the Birch Bay site "for a similar project to what we see downtown with the ports doing with the containers." He described meeting Birch Bay Chamber members during the summer sandcastle competition who showed "very, very interested in that concept." Knox acknowledged the idea's potential but noted the site's sensitivity: "It's a very sensitive site, so anything that we would do... is to ensure that we don't have impact to the site." He expressed willingness to discuss the container concept with chamber partners, stating "it would be something that we would really look for partner organisations to take and run with." ## Year-End Budget Supplemental — Managing Escalating Costs Finance Director Randy Rydel presented the final budget supplemental of 2025, requesting $3,565,060 across nine different funds. He characterized these as "end-of-the-year type items that either needed some sort of administrative type cleanup, or as we got closer to the end of the year, we saw a need for some additional budget expenditure authority." The largest components included $980,000 for jail fund overtime projections and $1.5 million from REET for the Sheriff's Office improvements. Notably, only $100,000 affected the general fund, with Rydel explaining that "about $100,000 of that is to cover some conflict attorneys and experts." ### Rising Waste Disposal Costs Jennifer Hayden from Solid Waste provided a striking example of cost escalation challenges, particularly with electronic waste: "A five-gallon bucket of vapes is about $700 to get rid of." She explained that proper disposal prevents these items from ending up "in the garbage where they can start fires," but noted "we continue to see increases in what we're receiving and the cost to get rid of it." ### Forward-Looking Budget Concerns Council Member Scanlon pressed about whether these supplemental needs would affect future budget planning. Schott-Bresler acknowledged that "cost escalation is something that the departments are always asked to evaluate when they're putting their budget submissions together," but noted the complexity with "lots of moving parts." She announced a structural change for 2026: "The public defender has agreed to be the conduit for the outside contracts rather than that being in our clerk's office." This shift should provide better cost management for conflict attorney services. Scanlon advocated for strategic planning: "If we can look at various things to figure out what's the best way to make sure we're fully staffed... do we need bonuses to help out with filling those jobs? And is that a better way than paying for overtime?" ## Opioid Settlement Fund Authorization The committee's final action was straightforward — recommending establishment of the Opioid Settlement Fund. With no discussion, Council Member Byrd moved approval, and the recommendation passed 2-0-1 with Buchanan absent. ## Closing & What's Ahead The meeting adjourned at 10:29 a.m., five minutes ahead of schedule, with Chair Donovan noting that the Climate and Natural Resources Committee could begin early at 10:35 a.m. The session exemplified efficient committee work while revealing ongoing challenges in project cost management and the need for better upfront financial planning. The consent agenda items proceed to full council consideration, while the three budget ordinances advance for introduction at evening council meetings. The Opioid Settlement Fund receives the committee's recommendation for adoption. These routine approvals collectively represent nearly $6 million in county financial commitments, demonstrating the significant fiscal decisions that flow through seemingly routine committee meetings.

## MODULE S1: STUDY GUIDE **Meeting ID:** WHA-FAS-2025-11-18 ### Meeting Overview The Whatcom County Council Finance and Administrative Services Committee met on November 18, 2025, with committee members Tyler Byrd and Todd Donovan present (Barry Buchanan was away on county business). The committee reviewed seven consent agenda items including contracts and grant agreements, discussed three ordinances establishing project funds, and recommended adoption of an opioid settlement fund ordinance. ### Key Terms and Concepts **Consent Agenda:** A group of routine or non-controversial items that can be voted on together unless a member requests separate consideration. **Forestry Conservation Easement:** A legal agreement that restricts development on forest land while allowing continued forestry practices, protecting the property's forestry use in perpetuity. **Community Priorities Fund:** A county funding source used for various community projects, previously funded through ARPA (American Rescue Plan Act) dollars. **Project-Based Budget:** A dedicated budget account established for specific capital projects, separate from general operating funds. **Real Estate Excise Tax (REET):** A tax on real estate sales that provides revenue for local capital improvements and facilities. **Leasehold Improvements:** Physical improvements made to rented space to make it suitable for the tenant's specific needs. **LTAC Funding:** Lodging Tax Advisory Committee funding, derived from hotel taxes and used for tourism-related projects. **Toxic Waste Disposal:** Specialized handling and disposal of hazardous materials like electronic waste (including vapes) that require expensive processing to prevent environmental harm. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Todd Donovan | Committee Chair, Council Member | | Tyler Byrd | Committee Member, Council Member | | Barry Buchanan | Committee Member (absent on county business) | | Eric Chambers | Health and Community Services | | Kayla Schott-Bresler | Deputy Executive | | Lauren Templeton | Planning and Development Services | | Bennett Knox | Parks and Recreation Director | | Randy Riedel | Finance Director | | Jennifer Hayden | Solid Waste Supervisor | ### Background Context This committee meeting addressed both routine business and significant infrastructure projects. The Bellis Family Housing project represents a complex multi-phase development combining affordable housing with childcare facilities, highlighting the county's integrated approach to community development. The Birch Bay Beach Park project addresses a long-standing community need for basic amenities like restrooms and parking to support tourism. Rising costs across multiple areas—from conflict attorneys to toxic waste disposal—reflect broader inflationary pressures affecting county operations. The establishment of project-based budgets demonstrates the county's systematic approach to capital project management. ### What Happened — The Short Version The committee recommended approval of seven consent agenda items totaling over $2.4 million, including contracts for legal services, WSU extension programs, telecommunications, vehicle repairs, substance abuse treatment, and forest conservation. They discussed three ordinances creating dedicated project funds: $1.5 million for Sheriff's Office improvements, funding for Birch Bay Beach Park development, and $3.6 million in year-end budget adjustments. The committee also recommended establishing an opioid settlement fund. Key discussions focused on the multi-phase Bellis housing project's complexity and potential cost overruns, and the long-awaited Birch Bay restroom facilities that will serve tourists and locals. ### What to Watch Next • Full Council vote on the three discussed ordinances at the evening meeting • Potential contract amendment for additional Bellis project funding in coming months • Cultural resource assessment and design progress for Birch Bay Beach Park • Year-end budget implementation and monitoring of supplemental expenditures ---

## MODULE S2: FLASH CARDS **Meeting ID:** WHA-FAS-2025-11-18 **Q:** Who chaired this Finance Committee meeting? **A:** Todd Donovan served as Committee Chair, with Tyler Byrd present and Barry Buchanan absent on county business. **Q:** How many consent agenda items were approved? **A:** Seven items were recommended for approval by consent, including contracts and grant agreements totaling over $2.4 million. **Q:** What is the purpose of the Maple Falls Forest conservation easement? **A:** To protect the property for long-term forestry practices and prevent development, while potentially allowing some recreational use in the future. **Q:** What makes the Bellis Family Housing project complex? **A:** It has two separate phases on adjacent properties, with Phase 1 combining affordable housing ($2 million) and childcare facilities ($944,084) as legally separate projects within the same building. **Q:** What is the total cost of the Bellis childcare component? **A:** The full project costs about $3.5 million, with the county providing $944,084 and Opportunity Council securing the remaining $2.5+ million from other sources. **Q:** Where will the Sheriff's Office leasehold improvements funding come from? **A:** $1.5 million from Real Estate Excise Tax (REET), established through a new project-based budget. **Q:** What facilities will Birch Bay Beach Park include? **A:** Restrooms with shower facilities, parking, and utilities, centrally located north of the Beach Cat business. **Q:** Why are vapes expensive to dispose of as toxic waste? **A:** A five-gallon bucket of vapes costs about $700 to properly dispose of due to their electronic components and fire hazard potential. **Q:** How much is the year-end budget supplemental request? **A:** $3.565 million total, with only $100,000 from the general fund and the rest from specialized funds like jail operations. **Q:** What change is coming to conflict attorney contracts in 2026? **A:** The public defender's office will manage outside conflict attorney contracts instead of the clerk's office, though county-employed conflict attorneys remain in the clerk's office. **Q:** What sea level rise considerations affect Birch Bay construction? **A:** The restroom facility design will incorporate sea level rise projections and vulnerability assessments to determine appropriate elevation. **Q:** What tourism amenities does Birch Bay currently lack? **A:** Permanent restroom facilities and adequate parking for beach access, currently served by portable toilets managed by the Chamber. **Q:** How will Birch Bay park maintenance be handled? **A:** The county has about two years to work out maintenance arrangements, potentially partnering with the Birch Bay Park and Recreation District. **Q:** What drives increased solid waste disposal costs? **A:** Rising volumes of hazardous waste and increasing costs for disposal, particularly expensive items like electronic vapes. **Q:** What funding sources support the Birch Bay project? **A:** LTAC (Lodging Tax) funding recently approved and Park Special Revenue contributions, with REET allocation planned for 2027. ---