Bellingham City Council

Shall the council:

96. Authorize the city to appeal to the Whatcom County Hearing Examiner the county’s issuance of a land disturbance permit for the proposed Squalicum Ridge Road? At the beginning of 2009, Whatcom County issued a mitigated determination of non-significance for the proposed Squalicum Ridge Road. The two-mile long road would service 26 homes on 20-acre lots with wells and septic tanks. The City Council voted at the 1/26/09 meeting, vote number 11, to appeal the decision to the Whatcom County Hearing Examiner based on the legal department’s opinion that the road and development should be considered as one project requiring an environmental impact statement. The county revised the mitigated determination decision and the City Council voted to appeal that decision at the 3/23/09 meeting, vote number 47. This vote is the City Council’s third Squalicum Ridge Road appeal to the county hearing examiner. (Discussed in Executive Session) Approved 7-0

99. Authorize the mayor to sign agreement for the energy efficiency loan program and authorize the finance director to open an account at Banner Bank? Bellingham has received a $250,000 federal grant and a $475,000 state grant for the Community Energy Challenge. This vote is an agreement with Banner Bank, Whatcom County and the city of Ferndale as representative for all the smaller cities in the county. It provides for the financing of the Community Energy Challenge program. Federal funds in the amount of $250,000 will be used to set up a loan loss reserve fund and state grant funds in the amount of $475,000 will be used to provide lower interest rates to borrowers participating in the Community Energy Challenge program. (AB18851) Approved 7-0

98. Issue a noise variance to Granite Construction for two street resurfacing projects? Construction work between 10 p.m. and 7 a.m. requires a noise variance. The work is being done at night in order to minimize traffic impacts. During August 2010, eight nights will be needed for repaving in three areas: Kellogg Road between Meridian and Cordata Pkwy.; Meridian Street between Birch and I-5 and Woburn Street between Sunset and Barkley Boulevard. An additional 10 nights in June are requested for the Bakerview-Hannegan project on Bakerview between Deemer and Irongate roads. (AB18854) Approved 7-0

99. Declare the city’s intention to improve the 34th Street sewer, create a local improvement district and set July 12 as the public hearing date? Property owners have requested the installation of a sewer line to serve 34th Street between Donovan and Taylor. An existing sewer line on 34th Street could be extended. The county health department has restricted septic use in this area. The local improvement district would allow the costs of the project to be assessed to the properties that will benefit from the sewer line. AB18608 (Resolution 2010-16) Approved 7-0

100. Authorize the mayor to award the low bid of $3.07 per pound to Huizenga Enterprises of Bellingham for asphalt pavement crack sealing? The bid covers labor, equipment and materials for the installation of the sealant to prevent water from undermining pavement and to help prevent potholes. The two previous bids for the sealant were $2.97 per pound at the 2/25/08 meeting, vote number 37, and $1.96 per pound approved at the 9/11/06 meeting, vote number 216. Twenty-three bids were solicited and four bids were received. (AB18856) Approved 7-0

101. Appropriate $4,888,027 for goods and services checks issued from April 2 through April 30, 2010? (AB18858/18859/18860) Approved 7-0

102. Appropriate $2,389,301 for payroll checks issued from April 1, 2010 to April 15, 2010? (AB18861) Approved 7-0

103. Extend expiration dates on land use approvals due to economic hardship? (Public hearing held on 4/26) Grant a one-time extension to applicants who are unable to begin or complete their projects within the land use approval deadlines because of an inability to secure financing. Applications must be filed by 12/31/11. AB18834 (Ordinance 2010-05-26) Amended and approved1 7-0.

104. Reduce two positions in the planning department from full-time to half-time and add one new full time position? The two positions which will be reduced are a program specialist in planning services division and an accounting technician in the community development division. The new full-time position will be an accounting technician who will work in community development division on grant administration where the workload is expected to increase. This will reduce the city’s labor costs for 2010 by $4,284. AB18836 (Ordinance 2010-05-27) Approved 7-0

105. Accept and spend a $5,000 grant from the Washington Finance Officers Association to pay for an intern position in the city finance department? The new intern will work with the finance director and the task forces on police operations, fire operations and capital facilities, and assist with research and analysis concerning future financing and financial impacts in order to help establish a set of financial guidelines prioritizing funding for operations and projects. The task forces are expecting to complete their work by the end of June 2010. AB18844 (Ordinance 2010-05-28) Approved 7-0

Shall the council:

106. Authorize the mayor to award the low bid of $921,146 to Ram Construction of Bellingham for resurfacing 12th Street between Mill Avenue and Old Fairhaven Parkway? The project also includes placing new concrete pads for the bus pullouts, upgrading the water main and the sewer manholes, adding minor pedestrian improvements and providing for stormwater treatment. The low bid was $124,287 below the engineer’s estimate. Seventy bids were solicited and six bids were received. (AB18864) Approved 7-0

107. Authorize the mayor to sign an agreement with Whatcom County concerning the Bennett/Bakerview/Airport Drive annexation? The city/county annexation agreement expired at the end of 2009. The two parties are working on a new agreement to cover all annexations and pre-annexation development within the city’s UGA. Until that is worked out, the city and county will create an individual agreement for each annexation. The City Council initiated the review process to annex 175-acres in the Bennett/Bakerview/Airport Drive area at the 11/19/07 meeting, vote number 248. No significant issues have come to light during the review process. The proposed annexation is a roughly triangular area located along the west side of I-5 between the city limits and Home Road. The south edge extends from Home Road along Grand Street aka Alder Street to Canterbury Lane and the west edge runs up Canterbury to Airport Way then jogs west another block and continues north up to Bakerview where it jogs west again before extending north near to where I-5 crosses the city limits (AB18868) Approved 7-0

108. Appropriate $4,197,786 for goods and services checks issued from April 30 through May 14, 2010? (AB18871/18872) Approved 7-0

109. Appropriate $2,520,858 for payroll checks and issued from April 16, 2010 through April 30, 2010? (AB18873) Approved 7-0

110. Endorse the financial management guidelines for the city of Bellingham? The guidelines were introduced by the finance director at the 3/15/10 council meeting, reviewed at a special finance committee work session on 3/29/10 and a council meeting on 4/13/10. The guidelines cover all aspects of city finance including: purpose, philosophy, financial management priorities, city management guidelines, general budget policies, revenue guidelines, operating expenditure guidelines, financial planning and forecasting, budget adjustments and amendments, reserve policies, investment and debt policies, capital investment policy, financial reporting, financial benchmarks, reserve fund goals, debt policy and investment policy. AB18785 (Resolution 2010-17) Approved 7-0

111. Make minor text and map amendments to the Multi modal Transportation Concurrency Management? (Public hearing held on 3/29) Some changes were recommended in the 2009 transportation report, including amending the boundaries on the concurrency service area map to include newly annexed areas and urban village plans; adding a specific definition of multi-use trails and amending some of the policy details affecting bicycle, pedestrian and multi-use trails. The Planning Commission and Transportation Commission recommend approval. AB18808 (Ordinance 2010-05-29) Approved 7-0

112. Receive and spend a $500,000 grant from the state of Washington for the Energy Efficiency Credit Enhancement Program? Of the total, $475,000 will be utilized to offer lower interest rates to borrowers who participate in the Whatcom County Community Energy Challenge; $12,500 will be paid to the Opportunity Council for administration of the program and the remaining $12,500 will be used to reimburse the city for expenses associated with the program. The Community Energy Challenge offers energy assessments and plans for improving energy efficiency, plus information and advice concerning contractors, financing and rebates to home and business owners. AB18850 (Ordinance 2010-05-30) Approved 7-0

113. Appropriate $75,000 for the Pickford Film Center? Lodging tax revenue will be used to purchase theater seats, projection equipment and sound systems for the new Pickford Film Center on Bay Street in downtown Bellingham. The Lodging Tax Advisory Committee recommended allocating the funds to Pickford to promote tourism. The film theaters are expected to bring more visitors downtown, also benefiting the arts district and the Whatcom Museum. This funding is added to $175,000 in grant funding from the Murdoch Charitable Trust making it possible to open the theater this year. AB18852 (Ordinance 2010-05-31) Approved 7-0

114. Renew the franchise with Trans Mountain Pipeline to continue operation of a petroleum pipeline that runs under the city of Bellingham? The current franchise agreement expires at the end of May 2010. Under the agreement, Trans Mountain is also required to maintain, repair, replace or remove existing pipeline and equipment, and will pay the city an annual fee of $15,000. At the 4/26/10 meeting, vote number 85, the City Council directed staff to negotiate modifications to the agreement to require regular reporting on substances transported during operation and bonding in case of abandonment or going out of business. AB18814 (Ordinance 2010-05-32) Approved 6-1, Jack Weiss opposed.

115. Appropriate $216,965 to settle a legal dispute with Encogen Northwest? Encogen — a subsidiary of Puget Sound Energy — operates a steam and electricity plant in Bellingham. In 2008, Tax Recovery Services conducted a B&O tax audit for the City of Bellingham. On 12/30/08, the city finance department issued an assessment against Encogen for the period 1/1/04 through 4/30/05 in the amount of $244,340. Puget Sound Energy paid the assessment on 2/23/09 and on the same day filed a complaint in Whatcom County Superior Court and an appeal with the city hearing examiner. Both parties have agreed to compromise as the case is complex and the outcome uncertain. The city will refund $159,625 to Encogen and pay legal costs of $57,340. AB18857 (Ordinance 2010-05-33) Approved 7-0

¹At the first and second readings the ordinance read “...because of adverse market conditions or inability to secure financing.” At third and final reading the words “adverse market conditions or” were removed and the word “an” inserted. The ordinance now reads “...because of an inability to secure financing.”