Bellingham City Council

Shall the council:

13. Authorize the city legal department to make an offer to Whitwork Park LLC not to exceed $130,000 in the case of Whitworth Park LLC v. city of Bellingham? This amount will be in addition to costs and reasonable attorneys’ fees incurred by plaintiff as of the date of this offer. Whitworth Park is a development company that has been planning to build a 40 unit housing project in the 1100 block of Yew Street in the Whatcom Falls neighborhood. Whitworth applied for a rezone on 12/2/2005, the city took four years to approve and permit it and by that time the housing market was in recession. If Whitworth Park accepts the offer it will end their $8 million lawsuit against the city. For more details on the case see the 8/9/2010 meeting, vote #153. (Discussed in Executive Session) Approved 7-0

14. Authorize the mayor to enter into a funding agreement with the Port of Bellingham and Whatcom County for the West Bakerview overpass project? The city has initiated this project, which will improve pedestrian safety and reduce congestion by adding a lane and sidewalk and reorganizing traffic at West Bakerview Road and I-5, near the airport. The Port of Bellingham will provide $500,000 and Whatcom County will add another $100,000. The county, under the Economic Development Investment Board (see the next vote for details on the loan/grant), will provide $650,000 to the project. The total cost of the project is estimated at $3,200,000. In addition to the funding sources already mentioned, the city anticipates receiving $1,500,000 from the State of Washington and $100,000 from Fred Meyer Corporation. (AB19456) Approved 7-0

15. Authorize the mayor to accept a $650,000 loan/grant from Whatcom County? The county has awarded the city an Economic Development Investment Board grant and loan for the West Bakerview overpass project (for the County Council vote, see the 12/6/2011 meeting, vote #218). The project will add an additional westbound lane, a drop right turn lane northbound onto I-5, a sidewalk on the north side of the bridge, and modification to traffic signals to provide dual left turn lanes. The county retains ownership of the roads and will be responsible for operating and maintaining them. (AB19458) Approved 7-0

16. Authorize the mayor to enter into an agreement with the Whatcom County Health Department to provide septic system inspection services in the Lake Whatcom Watershed? The agreement was originally to cover a two year period but has been revised to cover only 2012. In 1992 the city and county signed a joint resolution establishing common goals to protect the Lake Whatcom watershed. Regular septic system inspections are necessary to support these goals. All septic system owners in the watershed are required to have their systems evaluated. As of 1/1/2012, 70 percent of the properties in the watershed have been evaluated. Approximately 200 properties are left, and the health department has initiated enforcement actions with the owners. In addition to the inspections the health department makes and distributes educational materials and conducts workshops for septic system property owners in the watershed, maintains a database on all septic systems and issues quarterly reports. (AB19418) Approved 6-1, Jack Weiss opposed.

17. Authorize the mayor to award the low bid of $410.88 per ton to Brenntag Pacific of Santa Fe Springs, CA for soda ash? The city uses soda ash at the water treatment plant for pH adjustment and corrosion control. The city uses about 200 tons annually at an estimated cost of $82,176. The low bid for soda ash in 2009 was $349 per ton and in 2008 it was $278 per ton. The contract can be extended for two additional years. There were 47 solicitations viewed and two bids were received. (AB19463) Approved 7-0

18. Appropriate $1,908,649 for goods and services checks issued from January 13 through January 26, 2012? (AB19464/19465) Approved 7-0

19. Appropriate $2,496,343 for payroll checks issued from January 11 through January 25, 2012? (AB19466) Approved 7-0

20. Accept and spend a $10,000 state grant for an inventory of downtown buildings? The money will be used to hire a preservation consultant to make an historic resource inventory of downtown buildings over 50 years old. The city is required to match this funding and has agreed to spend $11,366 in staff salaries, $3,038 in volunteer time and $500 in materials. The grant runs from 10/1/2011 through 8/31/2012. AB19446 (Ordinance 2012-02-03) Approved 7-0

The Meador/Kansas/Ellis Trail project was awarded a silver certification by The Greenroads Foundation. See the 5/23/2011 meeting, vote #88, for details on the project by Larry Brown Construction. The Greenroads Foundation (www.greenroads.org) is an organization that promotes sustainability in transportation design. The rating system began as a research project at the University of Washington in 2007. The system has 11 project requirements and 37 voluntary credits. The certification levels are: bronze, silver, gold and evergreen.

Shall the council:

21. Authorize the city to enter into a settlement agreement with Whitworth Park LLC? Whitworth Park filed an $8 million lawsuit claiming that the city took four years to approve and permit a rezone and by that time the housing market was in recession. Staff recommended settlement of the lawsuit because of: extensive staff resources needed, attorney fees, expenses and the uncertain outcome of litigation. Under the terms of the settlement the city will pay Whitworth Park, LLC $350,000.00 within 45 days; and the city Council will consider a development agreement within 45 days which vests all permits necessary for the project for seven years from the date of preliminary plat approval and requires the city to review and process all additional permits and approvals for the project as expeditiously as possible under the city’s regulations. (Discussed in Executive Session) Approved 7-0

22. Approve final design and direct staff to proceed with the Northwest/Elm/Dupont bike lane project? At the 5/9/2011 meeting, vote #79, the council directed staff to proceed with designing bicycle lanes on Dupont/Elm/Northwest streets. The final design is for six foot bicycle lanes and the removal of on-street parking on the west side from the Pickett Bridge to McLeod Road, adding pedestrian ramps on Elm and Dupont streets, installing light bases at the intersection of Northwest and Alderwood and curb extensions on the east side of the Connecticut Street intersection. (AB19470) Approved 7-0

23. Expand the mutual use of facilities agreement with the Port of Bellingham to include more properties? The new agreement allows each agency up to three free uses per year of the other’s facilities. The city of Bellingham can use the following port facilities: Bellingham Cruise Terminal, Squalicum Boathouse,. Blaine Boating Center, General Aviation Conference Room, Cornwall Conference Center and Technology Development Center. (AB19476) Approved 7-0

24. Authorize the mayor to award the low bid of $55,097 to ADS Equipment of Mercer Island for lift station pump spare parts? The spare parts will be used to rebuild the Smith & Loveless, Inc. sewerage high-flow lift stations that are located throughout the city; it will also provide a supply of spare parts, reducing the risk of sewage overflow in the event of a pump failure. The bid by ADS Equipment was $144 lower than the bid by Smith & Loveless, Inc. There were 30 solicitations viewed and two bids were received. (AB19477) Approved 7-0

25. Appropriate $3,697,323 for goods and services checks issued from January 27 through February 9, 2012? (AB19478/19479) Approved 7-0

26. Appropriate $2,530,834 for payroll checks issued from January 26 through February 10, 2012? (AB19480) Approved 7-0

27. Honor Joan Hoisington for her service in the city legal department since 1987? Ms Hoisington was hired as an assistant city attorney on 3/11/1987. Thirteen years later, on 7/31/2000, Mayor Mark Asmundson recommended and the city Council approved her appointment as city attorney. She has served the city and its citizens with exemplary leadership as head of the legal department ever since. The annual Holiday luncheon will never be the same without her. AB19468 (Resolution 2012-02) Approved 7-0

28. Set April 11 as the public hearing date on a proposed street vacation for Rimland Drive? Rimland Drive runs between Woburn and Barkley Blvd through property owned by Talbot Services LLC. Talbot has petitioned for the vacation of the Rimland Drive right of way. The hearing will be held before the Bellingham Hearing Examiner whose findings will be sent to the city Council for a final decision. AB19475 (Resolution 2012-03) Approved 7-0

29. Withdraw $250,000 from the loan loss reserve account in Banner Bank and redirect the funds toward Community Energy Challenge activities? The money came from a federal block grant which was awarded to the city in 2010 to support the Community Energy Challenge. The city council at the 5/10/2010 meeting, vote #99, approved the deposited of the funds in Banner Bank to support a loan loss reserve program that ended up with little use. The Community Energy Challenge is up and running, providing energy efficiency services to homes and businesses, creating jobs as well as saving energy. The city will redirect the funds from the loan loss program to fund other activities to keep the CEC going. AB18851 (Ordinance 2012-02-04) Approved

30. Increase from $5 to $12 the surcharge on water rates for the Lake Whatcom Watershed property acquisition and stormwater program? (Public hearing held at 1/23 meeting) The current surcharge would be raised for all flat rate customers. Metered customers will pay an increased rate based on projected usage. Half the increase would be used toward purchasing property or constructing stormwater quality projects in the watershed. A public hearing was held on 1/23/12. A discount will be available to seniors and disabled homeowners. Council was concerned about low income customers who do not fit the above criteria. The ordinance was amended to change the date of the surcharge increase from 1/1/2012 to 5/1/2012 The delay will allow more time for staff to do a rate study and research options for program exemptions. AB19235 (Ordinance 2012-02-05) Amended and approved 5-2, Terry Bornemann and Gene Knutson opposed.

31. Issue up to $3,550,000 worth of water and sewer revenue bonds? The proceeds from the sale of these bonds will be used to buy back outstanding water and sewer bonds issued in 2004, in order to capture savings from lower interest rates, thus refinancing the old bond issue. This new bond issue is expected to reduce the cost of the 2004 bond issue by more than 3 percent, with a true interest rate of 3.3 percent. The finance director will have the authority to establish the final terms of the bonds, which are expected to be sold to the underwriter D.A. Davidson & Co of Seattle. AB19453 (Ordinance 2012-02-06) Approved 7-0

32. Issue up to $15,430,000 in limited tax general obligation bonds? The proceeds from the sale of these bonds will be used to refinance outstanding general obligation bonds issued in 2004, in order to capture savings from lower interest rates. This new bond issue is expected to save more than 3 percent of the amount the city would owe on the 2004 bonds, with a true interest cost not to exceed 3.4 percent. The finance director will have the authority to establish the final terms of the bonds, which are expected to be sold to the underwriter D.A. Davidson & Co of Seattle. AB19454 (Ordinance 2012-02-07) Approved 7-0

33. Accept $500,000 in Port of Bellingham funds and $100,000 in Whatcom County funds for the West Bakerview overpass project? The port and county are funding partners on this project. The port previously committed to certain traffic mitigation and improvement projects near the Bellingham airport, and this intersection is the nearest freeway access to the airport. The port will contribute $250,000 in 2012 and the other $250,000 in 2013. The county share will be paid in 2012. The intersection is located on county property and the county will own all improvements which take place within County right-of-way, unless/until the area is annexed into the city. Both the port and the county will be consulted during the design phase, and the city will report to them concerning other phases of the project. AB19457 (Ordinance 2012-02-08) Approved 7-0

34. Accept $650,000 in grant and loan funds from the Economic Development Investment Board for the West Bakerview overpass project? The intersection of Bakerview and I-5 is currently on county property. For the County Council vote approving the loan/grant see the 12/6/2011 meeting, vote #218), the loan must be repaid within seven years with interest of 1 percent per annum. The county is also contributing an additional $100,000 to the project. AB19459 (Ordinance 2012-02-09) Approved 7-0

35. Accept and spend a $1,500,000 state grant for the West Bakerview overpass project? This project will improve W. Bakerview Rd from Pacific Hwy to Bennett Dr., and includes the I-5 overpass. The state will retain ownership of the overpass and all improvements, and will be responsible for operation and maintenance. AB19460 (Ordinance 2012-02-10) Approved 7-0