Bellingham City Council

Action Taken at December 3, 2012 Meeting

Shall the council:

229. Authorize the mayor to award the low bid of $1,127,951 to Interwest Construction of Burlington to replace parts of the sewer system? This project will replace existing sewer piping, manholes and cleanouts at the following locations: Summer Street; a section of Plymouth Drive; East Illinois Street; Sunset Drive; the alley east of St. Paul Street from Texas to East North; Ontario Street from the dead end to Alabama; and Alabama Street from Ontario to St. Clair. Most of the work will be done without digging trenches. The city engineer estimated the project cost at $1,248,110. There were 116 solicitations viewed and eight bids were received. (AB19755) Approved 7-0

230. Approve the mayor’s appointment of Tom Slocum and Pinky Vargas to the Greenway Advisory Committee? The Greenway committee provides citizen recommendations to the City Council and the Parks and Recreation Department about Greenway levy expenditures, parkland acquisitions and parks/trails/open space development projects. Tom Slocum is an environmental engineer with a master’s degree in civil engineering, who is experienced with salmon habitat protection. He has lived in Bellingham for three years. Pinky Vargas is an efficiency outreach manager for Puget Sound Energy, specializing in energy efficiency and conservation. He has lived in Bellingham for four years. Both are being appointed to their first full terms, ending on 12/3/2015. (AB19764) Approved 7-0

231. Authorize the mayor to award the low bid of $166,796 to IMAC of Mt Vernon for piping modifications at Post Point? IMAC will replace the current piping, which tends to clog up, with new piping that will allow the bio-solids to flow better and provide shorter runs with less friction. This repair will also allow solids to be thickened in the primary storage tank. There were 93 solicitations viewed and two bids were received. (AB19768) Approved 7-0

232. Appropriate $5,659,607 for goods and services checks issued from November 4, 2012 through November 21, 2012? (AB19770/19771/19772) Approved 7-0

233. Appropriate $2,532,044 for payroll checks issued from November 10 through November 21, 2012? (AB19773) Approved 7-0

234. Set the time and dates for 2013 regular council meetings? Twenty-five meetings are scheduled for 2013, one more than was scheduled for 2012. Meeting time will be 7:00 p.m. Roberts Rules of Order are to be used unless otherwise provided by Charter. A special rule is adopted allow any council member the right to demand the division of complex or multi-faceted issues that are presented to council for consideration. AB19767 (Resolution 2012-33) Approved 7-0

235. Establish the 2013 property tax levy? (Public hearings held at 9/24 and 11/19 meetings.) Property taxes increases will be as follows: The annual increase will be $139,812 or .71502 percent increase over the 2012 rate. The city is allowed up to a 1 percent increase per year. The low-income and very-low-income housing increases will add 36 cents per $1,000 of assessed property value. The total projected city property tax revenue in 2013, including the tax increases and new construction values, is estimated at $22,740,234. AB19731 (Ordinance 2012-12-050) Approved 7-0

236. Appropriate an additional $200,000 for the police department? The money is from the criminal justice fund reserves, the transfer leaves a reserve fund balance of $483,844. The police department anticipates $50,000 in higher gasoline costs and increased jail costs of $150,000. AB19732 (Ordinance 2012-12-051) Approved 7-0

237. Appropriate an additional $350,000 for water meters? State law requires all water usage to be metered by 2017. The city is in the process of changing over to a metered system and the work is going faster than expected. The city spent $155,311 for water meters and meter reading equipment in 2011, this year the city will spend $783,921. AB19733 (Ordinance 2012-12-052) Approved 7-0

238. Transfer $6,610 to the legislative department to pay retirement credits for a City Council member? All elected officials may opt into the Public Employee Retirement System at any time while in office. One council member has joined the retirement system and paid the employee share of the fees for retirement credits for prior years. This requires the city to pay the Department of Retirement Systems the employer’s share for the prior years plus interest. AB19735 (Ordinance 2012-12-053) Approved 5-0-2,Terry Bornemann and Jack Weiss abstained.

Action Taken at December 10, 2012 Meeting

Shall the council:

239. Spend $575,000 to purchase the property located at 1308 North Shore Drive? The city plans on using this property for a stormwater facility. Located in the Silver Beach neighborhood on Lake Whatcom, this lake front property is a 9,583 square foot lot, with a two bedroom, two bath, 920 square foot house on it. (Discussed in Executive Session) Approved 7-0

240. Authorize the mayor to award the low bid of $857,648 to Ram Construction of Bellingham for 2012 water and storm main replacements? Water mains and storm sewers will be replaced: on Key Street between Myrtle and Chestnut; on Liberty Street between Maple and the dead end; and Sehome Reservoir to Myrtle Street through the Sehome Arboretum. The city engineer estimated the cost of the project at $$1,284,638. There were 106 solicitations viewed and seven bids were received. (AB19774) Approved 7-0

241. Authorize the mayor to sign an agreement with the Bellingham School District for a police officer to be assigned to the school district? Under the terms of the district resource officer program, the Bellingham School district will pay 25 percent ($24,494) of the officer’s salary and the city will pay ($72,882) the rest. In the past the salary has been split 50-50. The district resource officer program is responsible for on-campus law enforcement and protection of lives and property. In addition to: assisting school officials with regulations regarding student conduct; providing security for school functions; responding to major disruptions; investigating and reporting criminal offenses; cooperating with police investigations; and providing traffic control; the program will be an educational resource concerning the law and law enforcement agencies and will counsel students when requested to do so by the parents or school principal. (AB19775) Approved 7-0

242. Authorize the City Council president to sign the scoping comments letter on the Gateway Pacific Terminal project as drafted by Mayor Kelli Linville? Scoping comments for the environmental impact statement on the Gateway coal terminal project are being accepted until 1/21/2013. The five page letter calls for a study of the cumulative impacts, (especially the increased train traffic), of all the coal terminals proposed to be built in Washington and Oregon and contains a comprehensive list of impacts to study, both on and off shore, in Bellingham and surrounding areas. Included are: risks to health and welfare; impacts on existing freight and passenger train traffic; impacts on marine life, air quality, wildlife, vegetation, unstable slopes, local economy, land use, property values, tribal nations, jobs within the city, emergency response times, public safety and public access to parks, public lands and shorelines; wear and tear on railroad infrastructure; and the cost to the city for improvements needed to maintain safety, reduce traffic congestion and retain public access in areas with increased train traffic. (AB19739) Approved 7-0

243. Approve the mayor’s appointment of Phyllis McKee and Ali Taysi, and the reappointment of Kurt Baumgarten, to the Planning and Development Commission? This will be Kurt Baumgarten’s second full term on the commission. Both Ali Taysi and Phyllis McKee are being appointed to their first terms on the commission. Ali Taysi is a land use and development consultant and a 32 year resident of Bellingham. Phyllis McKee has lived in Bellingham since 1995 and is a retired schoolteacher who currently works in income property management. All three terms expire on 1/1/2017. (AB19780) Approved 7-0

244. Authorize the mayor to sign an agreement with the Bellingham Technical College for a Bellingham Public Library “holds pick-up” location? The Bellingham library will install and maintain a self-checkout station at the college in order to increase access to Bellingham library materials for BTC students, staff and community members. BTC will provide space, electricity and adequate shelving for the library station, and will collect and organize book returns for the library. Library patrons will be allowed to use the BTC staff telephone to contact the Bellingham Library with questions. The agreement will go into effect on 1/1/2013 and expires on 12/31/2013. This is an annual agreement to be reviewed and agreed upon at the end of each year and may be terminated earlier given 60 days notice. (AB19787) Approved 7-0

245. Authorize the mayor to sign an agreement with Western Washington University for a Bellingham Public Library “holds pick-up” location? The Bellingham Public Library will install and maintain a self-checkout station in Wilson Library to increase access to city library materials for students, staff and community members. WWU will provide space, electricity and adequate shelving for the BPL station, and will collect and organize book returns for BPL. Public library patrons will be allowed to use the WWU staff telephone to contact BPL with questions. The agreement will go into effect on 1/1/2013 and expires on 12/31/2013. It is an annual agreement to be reviewed and agreed upon at the end of each year and may be terminated earlier given 60 days notice. (AB19788) Approved 7-0

246. Authorize the mayor to sign an agreement with Whatcom Community College for a Bellingham Public Library “holds pick-up” location? The Bellingham Public Library will install and maintain a self-checkout station at WCC for the purpose of increasing access to public library materials for WCC students, staff and community members. WCC will provide space, electricity and adequate shelving for the public library station, and will collect and organize book returns for BPL. Public library patrons will be allowed to use the WCC staff telephone to contact the public library with any questions. This agreement formalizes a program that began in 2007, it will go into effect on 1/1/2013 and expires on 12/31/2013. It is an annual agreement to be reviewed and agreed upon at the end of each year and may be terminated earlier given 60 days notice. (AB19789) Approved 7-0

247. Authorize the mayor to sign an agreement with the with Whatcom County Rural Library District to extend mutual borrowing privileges and services? The agreement is intended to provide unrestricted access to the materials and services at all city and county library facilities for all city and county residents. Since the county residents use city library materials more often than city residents use the county system, the county library will reimburse the city $147,381 for the difference. Fees and fines are set by the location where the materials are checked out. The agreement will go into effect on 1/1/2013 and expires on 12/31/2013 and may be terminated earlier given 60 days notice (AB19790) Approved 7-0

248. Adopt transportation impact fees for 2013? Transportation Impact Fees are charged to new development proposals seeking building permits in order for the city to recover the costs of new transportation infrastructure, (i.e. streets, lighting, signage, maintenance, etc). The base rate is charged per p.m. peak hour vehicle trip, and is calculated by combining the city’s actual expenditures of local transportation funding over the last six years with the anticipated funding needs for transportation during the next six years, and dividing the resulting total by the amount of traffic projected for new development and by the number of p.m. peak hour vehicle trips projected for the entire 12 years. The 2013 base rate of $1,925 is a slight increase over the 2012 rate of $1,912, but Bellingham’s base rate is still the lowest in Whatcom County. More TIF information is available from the permit center and the city website: www.cob.org. AB19776 (Resolution 2012-34) Approved 7-0

249. Grant final plat approval for Creekside Cove? This 3.41 acre development in the Meridian Neighborhood will consist of 19 single-family lots and a 6,500 square foot stormwater tract. It is located at 4048 Deemer and will be accessed from Harmon Way, (a new street off of Deemer). There will also be a conservation and public access easement along the western boundary of the plat beside Deemer Rd. AB19791 (Resolution 2012-35) Approved 7-0

250. Grant final plat approval for Parkway Gardens? The plat will consist of 12 single-family lots (accessed by a private alley), and two open space tracts. The plat is located at 1906 Wilson Avenue, in the Happy Valley neighborhood, between 19 and 20th streets and between Wilson Avenue and Old Fairhaven Parkway. The site contains four wetland areas. The open space tracts along the south edge and the southeast corner of the site will be used by the city for wetlands mitigation and for the future project of daylighting Padden Creek which runs through the southeast corner of the site. Prior to that project there will be a private stormwater facility on the southeast corner. AB19792 (Resolution 2012-36) Approved 7-0

251. Grant final plat approval for division 2, phase 2 of The Highlands? The proposal for phase 2 consisted of 72 single-family lots on approximately 20 acres. Division 2, phase 2 consists of five residential lots and one reserve tract. It is located in the Whatcom Falls neighborhood on Newton Street, west of Yew Street and south of Lopez Street. Final plat approval for division 1, phase 2 consisting of 17 lots was approved at the 6/29/2009 meeting, vote #141. AB19793 (Resolution 2012-37) Approved 7-0

252. Grant final plat approval for division 4 of the Samish Highlands? Division 4 consists of 18 single-family lots on Samish Crest Drive, east of the 40th. Preliminary plat approval was granted at the 12/11/1995 meeting for 57 lots on 77 acres in the Samish Neighborhood: Division 1 of the project was granted final plat approval on 12/14/2000 for 18 lots; Division 2 for 10 lots was granted approval on 2/11/2002; Division 3A was approved on 5/23/2005 for eight lots; Division 3B was approved 8/11/2008 for an open space tract and reserve tracts for future development; Division 4 is the last phase of the subdivision. AB19794 (Resolution 2012-38) Approved 7-0

253. Appropriate $2,506,155 for goods and services checks issued from November 22 through November 30, 2012? (AB19795) Approved 7-0

254. Revise the city’s B&O tax code to match changes in the state tax law? The state requires all Washington cities that have business and occupation tax code to make the mandatory revisions to their laws by 1/1/2013. Most of the required changes concern the sale and delivery of digital products. The B&O tax model law is available on the city’s website at www.cob.org. AB19750 (Ordinance 2012-12-054) Approved 7-0

255. Update the language in the city tax code that refers to the Public Disclosure Act? The state has renamed it the “Public Records Act” and its reference point in the state law has been moved from chapter 42.17 to 42.56. Accordingly, the title and reference point need to be corrected in the city law. AB19751 (Ordinance 2012-12-055) Approved 7-0

256. Approve a $5 million revolving line of credit with Wells Fargo Bank? The line of credit is for three years, (until 12/31/2015), and will be used to finance land purchases in the Lake Whatcom watershed. In order to secure the loan the city will provide a bond anticipation note, for water and sewer revenue bonds, in an amount not to exceed $5 million. The note will be repaid out of utility funds and watershed acquisition fees. AB19753 (Ordinance 2012-12-056) Approved 7-0

257. Appropriate $3.2 million from the water fund to pay for property acquisition and operating costs in the Lake Whatcom watershed? The council voted at the 11/05/2012 meeting, vote #207, to spend $2,630,000 to purchase 320 acres near Lake Whatcom. The deal closed on 12/14/2012. The additional $570,000 will pay for associated, unbudgeted operating costs. At the previous vote the council approved a revolving line of credits with Wells Fargo Bank to replenish the Lake Whatcom watershed property acquisition fund. AB19754 (Ordinance 2012-12-057) Approved 4-3, Seth Fleetwood, Michael Lilliquest and Jack Weiss opposed.

258. Allow the solid waste utility tax to be used for general environmental remediation? The city of Bellingham has an estimated $20.3 million in unfunded environmental cleanup liability. Until now, the utility tax generated from taxing garbage collection and disposal have been used strictly for coordinating and running the solid waste and recycling programs and occasionally for environmental cleanup of former city dump sites. This ordinance would allow the funds to be used to clean up sites contaminated by causes other than landfills sites. AB19756 (Ordinance 2012-12-058) Approved 7-0

259. Reduce utility rates for more low-income seniors and disabled citizens? (Public hearing held at 11/19 meeting) Low-income senior and/or disabled citizens can apply for a reduced rate on city utilities. This ordinance will raise the limit on how much total income a household can have and still qualify for the reduction. Since more households will receive the reduced rates, the regular rates will have to increase in order to avoid lost revenue to the city. This will apply to water, sewer and stormwater utilities. AB19757 (Ordinance 2012-12-059) Approved 7-0

260. Amend water utility policy and adopt a new billing system for water usage? (Public hearing held at 11/19 meeting) New state regulations, economic conditions leading to a decline in new connections and a general drop in revenue are challenging the financial future of the city utility services. The city hired an independent consultant, the FCS Group, to study the problem. The consultant recommend the creation of a new customer class rate structure based on cost of service. Also, because the state requires that the city switch from a flat-rate to a metered water system, rates and policies must be set for metered water usage. The new rate and class system will go into effect on 1/1/2013. AB19758 (Ordinance 2012-12-060) Approved 7-0

261. Amend sewer utility policy and adopt new rates? (Public hearing held at 11/19 meeting) New state and federal laws require that the city upgrade wastewater treatment and sewage facilities, and the city foresees further cuts in funding levels. The FCS Group, contracted to do a cost-of-service analysis has proposed a new customer class/rate schedule based on wastewater strength and volume. The new rates go into effect on 1/1/2013. AB19759 (Ordinance 2012-12-061) Approved 7-0

262. Change storm and surface water utility rates? (Public hearing held at 11/19 meeting) New state and federal regulations require that the city change its operations and policies concerning surface and storm water utilities. In order to meet the costs associated with these changes and future financial challenges, the city engaged the FCS Group to evaluate the situation and propose a new rate schedule. This ordinance also allows for the rates to be adjusted annually according to data provided by the Consumer Price Index on inflation. The new rates go into effect on 1/1/2013. AB19760 (Ordinance 2012-12-062) Approved 5-2, Michael Lilliquist and Stan Snapp opposed.

263. Amend city law concerning marijuana possession? State voters passed Initiative 502 at the November general election. The initiative legalized the possession of up to one ounce of marijuana and set similar limits on marijuana-infused products so the city is required to change the municipal code. To be consistent with the state law, this ordinance updates city law, which previously allowed up to 40 grams of marijuana as a misdemeanor and did not address the issue of infused products, and it also adds a new section which prohibits public consumption and sets penalties for opening or using marijuana in any public location. The Public Work/Public Safety Committee made minor changes to the language of the ordinance. AB19761 (Ordinance 2012-12-063) Amended and approved 7-0

264. Adopt the 2013 annual budget? (Public hearing was held at 11/19 meeting) The preliminary budget was presented at the 10/8 meeting with council and staff work sessions continuing into December. The revised preliminary budget estimate of $245,036,948 in expenditures leaving $99,378,850 in estimated ending reserves was amended to $244,699,029 with ending reserves of $99,816,769. The estimated general fund portion of the expenditures was changed from $68,142,662 with an ending reserve of $13,253,197 to $68,392,662 with an ending reserve of $13,003,197. Out of General Fund expenditures, $2.7 million will be restricted funds for potential legal fees. The complete budget is available through the city website www.cob.org. AB19762 (Ordinance 2012-12-063) Amended and approved, 5-2, Gene Knutson and Cathy Lehman opposed.

261. Adopt the 2012 annual budget? (Public hearings held at the 9/26 and 11/21 meetings.) The preliminary budget was first presented on 10/3/2011 meeting. The year 2012 begins with reserves of $120,273,702, anticipated revenue of $196,655,007, expenditures of $218,720,470 and $98,208,239 in ending reserves. The 2012 budget may be found on line at www.cob.org/government/budget/ AB19342 (Ordinance 2011-12-67) Approved 5-2, Terry Bornemann and Stan Snapp opposed.

265. Adjust the 2012 budget in order to continue funding BTV-10? Channel 10 Public Access Television was left out of the budget, so it now requires a separate ordinance in order to move the money from the general fund into the public, education and government access television fund. The amount to be transferred is $192,352. AB19769 (Ordinance 2012-12-065) Approved 7-0