Council Public Works and Health Committee

# WHA-PWH-2025-10-21 | Briefing Summary **Title:** Six-Year Water Resources Improvement Program Update **Date:** Tuesday, October 21, 2025 **Time:** 11:30 AM - 11:43 AM **Duration:** 13m 49s **Committee:** Council Public Works and Health Committee **Location:** Hybrid Meeting - Council Chambers ## Summary The Public Works and Health Committee reviewed revisions to the Six-Year Water Resources Improvement Program (WRIP) for 2026-2031, with Director Elizabeth Kosa explaining funding source changes made after the resolution was withdrawn two weeks earlier to address discrepancies. Key discussions centered on funding strategy for Lake Whatcom stormwater projects and concerns about Blaine's potential urban growth area expansion near Birch Point. --- # MODULE 1: CORE MEETING DATA **Meeting Identification** - - **Title:** Six-Year Water Resources Improvement Program Update - **Jurisdiction:** Whatcom County - **Body:** Council Public Works and Health Committee - **Date:** Tuesday, October 21, 2025 - **Start Time:** 11:30 AM - **End Time:** 11:43 AM - **Duration:** 13m 49s **Attendance** - **Committee Chair:** Jon Scanlon - **Committee Members Present:** Mark Stremler, Ben Elenbaas - **Other Council Members Present:** Barry Buchanan, Tyler Byrd, Todd Donovan, Kaylee Galloway - **Staff Present:** Elizabeth Kosa (Public Works Director), Kraig Olason (Public Works), Aly Pennucci (Executive's Office) **Meeting Format** - **Type:** Hybrid Committee Meeting - **Location:** Council Chambers, County Courthouse - **Access:** In-person, virtual, or phone participation - **Recording Status:** Recorded session --- # MODULE 2: AGENDA OVERVIEW **Official Agenda Structure** **Call to Order & Roll Call** - Committee chair opened meeting at 11:30 AM - Attendance verification of committee and council members - Standard hybrid meeting protocols **Committee Discussion Items** **Primary Item:** - AB2025-677: Discussion of resolution to adopt Six-Year Water Resources Improvement Program (WRIP) for 2026-2031 - Status: Scheduled for Council introduction this evening - Context: Follow-up to discussion from two weeks prior, with requested revisions **Administrative Items** - Announcements (accessibility accommodations notice) - Items Added by Revision (none) - Other Business (planning for remaining 2025 meetings) - Adjournment **Meeting Parameters** - Scheduled time: 11:45 AM - 12:00 PM - Actual duration: 13 minutes, 49 seconds - Hybrid format with multiple participation options --- # MODULE 3: KEY AGENDA ITEMS **Primary Agenda Item: Six-Year Water Resources Improvement Program (WRIP)** **Item Details:** - **Bill Number:** AB2025-677 - **Title:** Resolution to adopt Six-Year Water Resources Improvement Program for 2026-2031 - **Status:** Discussion item, scheduled for Council introduction this evening - **Previous Action:** Withdrawn two weeks ago for revisions **Background & Context:** - Original presentation occurred October 7th at County Council - Staff identified discrepancies in source funding for 2026 - Specific issues with Road Fund and Real Estate Excise Tax (REET) usage - Public Works Department and Executive's Office requested withdrawal for corrections **Meeting Purpose:** - Review revised funding sources and project modifications - Address financial constraints in current climate - Prepare for formal introduction at evening Council session - Committee discussion and questions before full Council consideration **Key Participants:** - Elizabeth Kosa, Public Works Director (primary presenter) - Kraig Olason, Public Works Department (technical support) - Aly Pennucci, Executive's Office (budget coordination) - Committee members and attending Council members --- # MODULE 4: SPEAKERS & TESTIMONY **Staff Presentations** **Elizabeth Kosa, Public Works Director** - **Role:** Primary presenter and department head - **Key Points:** - Explained funding discrepancies from October 7th presentation - Detailed specific project modifications and funding source changes - Addressed fiscal restraints in current financial climate - Coordinated with Executive's Office on corrections **Kraig Olason, Public Works Department** - **Role:** Technical expert on stormwater projects - **Expertise:** Lake Whatcom stormwater systems and development impacts - **Key Contributions:** - Explained on-site detention requirements for new development - Discussed concerns about retention pond sizing for extreme weather events - Addressed infrastructure ownership transfer questions - Provided technical context for Blaine annexation impacts **Aly Pennucci, Executive's Office** - **Role:** Budget and capital projects coordination - **Perspective:** Administrative and financial planning - **Key Points:** - Capital project prioritization challenges - Future funding mix expectations for next biennium - REET availability dependent on other major capital facility resolutions **Public Comment** - No public comment period scheduled for committee meeting - No public testimony recorded during session --- # MODULE 5: ISSUES & DELIBERATION **Primary Issue: Funding Source Modifications** **Original Problems Identified:** - Discrepancies in 2026 source funding allocation - Misalignment between Road Fund and REET usage - Need to address current fiscal constraints - Coordination issues between departments and Executive's Office **Specific Project Changes:** - Eagle Ridge Stormwater: Changed from REIT to Lake Whatcom Stormwater Utility (LWSU) - Austin Court Stormwater: Changed from REIT to LWSU - Strawberry Point Lake Whatcom Boulevard: Spread across three years (2026-2028), funding changed to LWSU - First Drainage Improvement: Reduced 2026 work scope - Sudden Valley Stormwater #2: Deferred to 2027 - Shirelle Terrace Stormwater Outfall: Deferred to 2027 - Semiahmu Drive South Outfall: Spread between 2026-2027 - Lower Lane Drainage: Changed from Road Fund to REET - Pollender Levee Repair: Updated with current cost estimates **Strategic Considerations:** - Protection of Road Fund resources - Optimal use of available REET funding - Lake Whatcom Stormwater Utility capacity and purpose - Future flood control zone fund utilization --- # MODULE 6: COUNCIL DISCUSSION **Councilmember Todd Donovan's Questions** **Funding Source Strategy:** - **Question:** Are Lake Whatcom projects now primarily using utility funds instead of previous flood control funding? - **Concern:** Whether stormwater utility is providing additional capacity or simply replacing previous funding sources - **Director Response:** REET funding returns in outer years (2027-2028); flood control zone funds being evaluated for next biennium **Development Impact Analysis:** - **Question:** How much stormwater management captures runoff from undeveloped areas around Birch Point? - **Context:** Tens of millions in unfunded projects, potential Blaine UGA expansion - **Follow-up:** Who assumes responsibility for downstream projects if development occurs? **Cost and Responsibility Concerns:** - **Observation:** Existing project backlog around $40-50 million - **Worry:** Development will worsen funding shortfall - **Infrastructure Transfer:** If Blaine annexes uphill areas but leaves downhill county areas, creates problems **Chair Jon Scanlon's Questions** **Funding Strategy Rationale:** - **Question:** What was the strategy for changing Lake Whatcom project funding sources? - **Focus:** Whether changes were made to protect Road Fund - **Response:** Decision made in conjunction with Executive's Office to unburden Road Fund **Future Planning Discussion:** - **Topic:** Remaining 2025 committee meetings agenda items - **Request:** Input from committee members on additional topics - **Response:** Councilmember Elenbaas requested time to consider suggestions --- # MODULE 7: DECISIONS & ACTIONS **Committee Action Taken** **Discussion Only:** - No formal votes or motions during committee session - Item designated as discussion-only agenda item - Preparation for evening Council introduction **Next Steps Confirmed:** - Resolution proceeds to full Council for introduction this evening - No additional committee review required before Council consideration - Staff available for Council questions during introduction **Administrative Decisions:** **Meeting Planning:** - Chair requested input on remaining 2025 committee agenda items - Councilmember Elenbaas to provide feedback on future topics - Standard committee planning for year-end meetings **Process Coordination:** - Confirmed resolution ready for Council introduction - Staff coordination between Public Works and Executive's Office completed - Funding discrepancies addressed in revised document **Implicit Decisions:** - Committee satisfied with explanations of funding changes - No objections raised to proposed project modifications - Support for proceeding to full Council introduction --- # MODULE 8: POLICY IMPLICATIONS **Budget & Finance Policy Domain** **Funding Strategy Shifts:** - Movement from REET to Lake Whatcom Stormwater Utility funding - Strategic protection of Road Fund resources - Coordination between multiple funding sources (REET, utility, flood control) **Financial Planning Implications:** - Recognition of current fiscal constraints affecting project timing - Spread of projects across multiple years to manage cash flow - Evaluation of fund utilization for next biennium budget cycle **Environmental Policy Domain** **Lake Whatcom Watershed Protection:** - Continued investment in stormwater infrastructure improvements - Projects targeting specific problem areas (Eagle Ridge, Austin Court, Strawberry Point) - Balancing development pressure with environmental protection needs **Stormwater Management:** - Technical updates reflecting recent extreme weather events exceeding 100-year projections - Adaptive management approach to retention pond sizing requirements - Coordination between jurisdictions for shared watershed impacts **Land Use & Planning Policy Domain** **Interjurisdictional Coordination:** - Potential impacts from Blaine UGA expansion on county infrastructure - Need for interlocal agreements addressing shared development impacts - Cost allocation between jurisdictions for infrastructure responsibilities **Development Impact Management:** - Recognition that current stormwater systems cannot handle increased runoff from cleared land - Requirement for adequate on-site detention for new development - Infrastructure transfer protocols for annexation scenarios --- # MODULE 9: FINANCIAL IMPLICATIONS **Project Funding Analysis** **Six-Year Program Scope:** - Total program covers 2026-2031 period - Multiple funding sources: REET, Lake Whatcom Stormwater Utility, Road Fund, Flood Control Zone - Project modifications reflect available funding constraints **Specific Funding Changes:** - Eagle Ridge Stormwater: $300,000 from REET/utility split - Austin Court Stormwater: $287,000 from REET/utility split - Strawberry Point projects: Spread across three years with utility funding - Lower Lane Drainage: Switched from Road Fund to REET protection **Budget Impact Assessment** **Road Fund Protection:** - Strategic decision to reduce Road Fund burden - Transfer of projects to alternative funding sources - Coordination with Executive's Office budget planning **Lake Whatcom Stormwater Utility:** - Increased utilization for watershed-specific projects - Questions about maintaining additional capacity versus replacement funding - Future evaluation of utility rates and capacity **Unfunded Project Backlog:** - Acknowledged $40-50 million in unfunded stormwater projects - Recognition that development will increase infrastructure needs - No clear funding strategy for addressing full project list **Future Budget Considerations:** - Next biennium will reassess funding mix - Flood control zone fund utilization under review - REET availability dependent on other major capital project resolutions - Prioritization process changes expected for 2027-2028 budget --- # MODULE 10: NEXT STEPS & FOLLOW-UP **Immediate Actions** **Council Introduction:** - Resolution AB2025-677 proceeding to full Council introduction this evening - Staff prepared to answer Council questions during introduction session - No additional committee review required before Council consideration **Document Preparation:** - Revised Six-Year Water Resources Improvement Program ready for Council review - Funding discrepancies corrected from October 7th version - Updated cost estimates incorporated for affected projects **Medium-Term Planning** **Committee Agenda Development:** - Chair requested input from committee members on remaining 2025 meeting topics - Councilmember Elenbaas to provide suggestions for future agenda items - Few meetings remaining in 2025 calendar year **Biennium Budget Planning:** - Funding strategy reassessment planned for next biennium - Evaluation of flood control zone fund utilization options - Capital project prioritization process modifications expected **Interjurisdictional Coordination:** - Monitoring Blaine voter decision on UGA expansion (upcoming election) - Need for interlocal agreement development regarding shared stormwater infrastructure - Cost analysis required if development proceeds in contested areas **Long-term Considerations** **Infrastructure Planning:** - Addressing $40-50 million unfunded project backlog - Adaptation to extreme weather events exceeding current design standards - Coordination between watershed protection and development pressure **Policy Development:** - Review of stormwater management requirements for new development - Infrastructure ownership transfer protocols for annexation scenarios - Regional coordination for shared watershed management responsibilities

### Meeting Overview The Whatcom County Public Works and Health Committee met on October 21, 2025, to discuss revisions to the Six-Year Water Resources Improvement Program (WRIP) for 2026-2031. The committee reviewed funding changes made to address discrepancies and financial constraints, with particular focus on stormwater projects around Lake Whatcom. ### Key Terms and Concepts **WRIP (Water Resources Improvement Program):** A six-year capital improvement plan that identifies and schedules water resource infrastructure projects, including stormwater management systems throughout Whatcom County. **REET (Real Estate Excise Tax):** A county tax on real estate transactions that provides funding for capital projects, particularly infrastructure improvements. **LWSU (Lake Whatcom Stormwater Utility):** A funding mechanism established to generate revenue specifically for stormwater management projects around Lake Whatcom through utility fees. **BB Warm System:** A stormwater drainage system serving the Birch Bay and surrounding areas, which includes multiple projects totaling tens of millions of dollars in needed improvements. **UGA (Urban Growth Area):** Designated areas around cities where future urban development is planned, which can affect infrastructure responsibilities between counties and municipalities. **Road Fund:** County funding source primarily for road maintenance and improvements, which the county is trying to preserve by using alternative funding sources for some projects. **Flood Control Zone Fund:** A funding source that can be used for stormwater projects under state law, though not utilized in this particular plan revision. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Jon Scanlon | Committee Chair | | Mark Stremler | Committee Member | | Ben Elenbaas | Committee Member | | Todd Donovan | Council Member | | Elizabeth Kosa | Public Works Department Director | | Kraig Olason | Public Works Department Staff | | Aly Pennucci | Executive's Office | ### Background Context The county is managing significant stormwater infrastructure needs while facing financial constraints. The Lake Whatcom Stormwater Utility was established to provide additional funding capacity for critical water quality projects, but concerns exist about whether this is truly adding capacity or simply replacing existing funding sources. Meanwhile, potential development in areas like Birch Point could create additional downstream infrastructure burdens that may fall to the county if not properly coordinated with municipal annexation plans. The county faces a substantial backlog of unfunded stormwater projects, with estimates of $40-50 million in needed work beyond what's currently programmed. This challenge is compounded by recent severe storm events that exceeded 100-year design standards, highlighting the inadequacy of existing infrastructure. ### What Happened — The Short Version Public Works Director Elizabeth Kosa presented revisions to the WRIP that addressed funding discrepancies from two weeks prior. Key changes included switching several Lake Whatcom stormwater projects from REET to utility funding, spreading some projects across multiple years, and deferring others to 2027. The committee discussed concerns about funding strategy, particularly whether the utility is providing additional capacity or just replacing existing funding sources. They also addressed potential future challenges from development in areas like Birch Point, where upstream development could worsen downstream flooding problems that the county would have to address. ### What to Watch Next - The resolution will be introduced at the October 21 evening council meeting - Next biennium planning will include reviewing the mix of funding sources, including potential use of flood control zone funds - Development of interlocal agreements with cities regarding shared stormwater infrastructure responsibilities - Ongoing discussions about capital project prioritization processes ---

**Q:** What was the main purpose of this committee meeting? **A:** To discuss revisions to the Six-Year Water Resources Improvement Program (WRIP) for 2026-2031, addressing funding discrepancies and financial constraints. **Q:** Why was the WRIP withdrawn two weeks ago? **A:** There were discrepancies with source funding for 2026, specifically with Road Fund and the use of approved REET funding. **Q:** What does LWSU stand for? **A:** Lake Whatcom Stormwater Utility - a funding mechanism for stormwater projects around Lake Whatcom. **Q:** Which projects had their funding source changed from REET to LWSU? **A:** Eagle Ridge Stormwater Improvements, Austin Court Stormwater Improvements, and Strawberry Point Lake Whatcom Boulevard Stormwater Improvements. **Q:** What project was deferred to 2027? **A:** Sudden Valley Stormwater Improvements #2 and Shirelle Terrace Stormwater Outfall Repair were both deferred to 2027. **Q:** Who is Elizabeth Kosa? **A:** Director of the Public Works Department who presented the WRIP revisions to the committee. **Q:** What is the BB Warm system? **A:** A stormwater drainage system serving Birch Bay area with multiple projects totaling tens of millions in needed improvements. **Q:** How much money does the county need for unfunded stormwater projects? **A:** Approximately $40-50 million for projects not currently funded in the program. **Q:** What concern did Council Member Donovan raise about the utility? **A:** Whether the utility is providing additional capacity or just replacing existing funding sources like flood control zone funds. **Q:** Which city's potential UGA expansion was discussed? **A:** City of Blaine's potential expansion around Birch Point area. **Q:** What project had its funding changed from Road Fund to REET? **A:** Lower Lane Drainage and Tidegate Modifications. **Q:** When will this item be introduced to the full council? **A:** At the October 21, 2025 evening council meeting. **Q:** What recent weather event highlighted infrastructure inadequacy? **A:** Recent storms that exceeded 100-year design events, showing existing systems are insufficient. **Q:** Who chairs the Public Works and Health Committee? **A:** Jon Scanlon serves as committee chair. **Q:** What funding source isn't being used but could be available? **A:** Flood Control Zone Fund, which can be used for stormwater projects under state law. **Q:** What time did the meeting begin and end? **A:** The meeting began at 11:30 a.m. and adjourned at 11:43 a.m. **Q:** What issue was raised about potential Birch Point development? **A:** Concern that upstream development could create additional downstream infrastructure burdens for the county. **Q:** What will be reviewed in the next biennium? **A:** The prioritization process for capital projects and the mix of funding sources including potential flood control zone fund use. ---