Bellingham City Council

Action Taken at the March 12, 2012 Meeting

Shall the council:

36. Authorize settlement in the case of Janke v. City of Bellingham? This matter involves the city’s denial of residential water service to a property located along Chuckanut Drive, outside the city limits and in a former water service zone. The city will agree to settlement under the following terms: The city will provide one ¾ inch water tap to the property as ordered by the Skagit County Superior Court pursuant to a 1961 easement agreement; plaintiffs will pay approximately $2,350 for all construction costs associated with installing the water tap; per the court’s order, the city will not collect system development charges, permit fees or transportation impact fees. (Discussed in Executive Session) Approved 7-0

37. Approve the appointment of Peter Ruffatto as interim city attorney? The Bellingham City Charter authorizes the mayor to appoint the city attorney subject to council approval. Mayor Kelli Linville selected Peter Ruffatto as the interim city attorney until further notice. (AB19485) Approved 6-0, Cathy Lehman was out of the room.

38. Authorize the mayor to apply for a $500,000 state grant for phase three of the Squalicum Creek Park project? At the 7/14/2004 meeting, vote #120, the council authorized the mayor to apply for a $300,000 state grant for phase one of the project. At the 2/7/2005 meeting, votes #24 and 25, the council approved the park name and the park master plan. At the 3/26/2007 meeting, vote #60, the council approved a $1,481,856 contract with Boss Construction for phase one. At the 3/15/2010, vote #52, the council approved a $254,758 contract with Strider Construction for phase two, salmon enhancement. Phase three includes building a playground, picnic shelter, fenced dog off-leash area, basketball court, new lighted ball field, restrooms, skatedot (for 5-12 year old skateboarders), loop trail, expanded parking, landscaping, utilities and irrigation. If the city does not receive the grant these plans will be modified. AB19490 (Resolution 2012-04) Approved 7-0

39. Purchase 47.55 acres of land in the Lake Whatcom Watershed? The price of the property is $2,200,000 and the seller is Patrick Uy. The property is located between Northshore Drive and Donald Avenue with the northern edge joining the Agate Ridge Preserve. The city will use an interfund loan from the Fleet Fund to pay for the property. The loan will be repaid within three years with principal and interest payment from watershed revenue. Closing date for the purchase is 4/16/2012. (AB19492) Approved 7-0

40. Direct staff to enter into a contract for retail sewer service at 1151 Mt. Baker Highway? The speech therapy clinic and single-family residence at this address is currently served by city water. The Whatcom County Health Department had determined that the septic system for the residence has failed. The owners are requesting sewer service from the city of Bellingham. This is allowed under city code. (AB19494) Approved 7-0

41. Direct staff to enter into a contract for retail sewer service at 1165 Mt. Baker Highway? A residence at this address is served by city water has been informed by the Whatcom County Health Department that their septic system has failed. The owners are requesting sewer service from the city of Bellingham. It is permitted by city code. (AB19495) Approved 7-0

42. Set April 11 as the public hearing date for a proposal to vacate a portion of Clinton Street within Maritime Heritage Park? The vacation would close Clinton Street between C Street and Division in Maritime Heritage Park. The Bellingham Technical College operates fisheries studies in two existing buildings at the park. The college plans on demolishing the two structures and constructing one building. The Washington State Legislature allocated two million dollars to replace the sixty-four year old buildings. The college is required to raise matching funds and as of 12/6/2011 had raised $1.7 million. The hearing will be held before the Bellingham Hearing Examiner whose finding will be sent to the Bellingham City Council for a final decision. AB19497 (Resolution 2012-05)

43. Appropriate $2,199,799 for goods and services checks issued from February 10 through March 1, 2012? (AB19499/19500/19501) Approved 7-0

44. Appropriate $2,463,408 for payroll checks issued from February 10 through February 24, 2012? (AB19502) Approved 7-0

45. Receive and spend a $6,550 state grant for Bellingham Police Department for data collection equipment? The funds are from the Washington Association of Sheriffs and Police Chiefs and will be spent on equipment for the Statewide Electronic Collision/Ticket Online Records system. The automated data-collection system provides law enforcement officers with the ability to create and submit tickets and collision reports electronically from their patrol car. Ten scanners ($2,550) and ten printers ($4,000) will be purchased for use in the traffic safety program. AB19474 (Ordinance 2012-03-011) Approved 7-0

Action Taken at March 26, 2012 Meeting

Shall the council:

46. Spend $407,500 to purchase 12 acres on Marine Drive? This property is located on the west side of Marine Drive, just north of the intersection with McAlpine Road. The acquisition will create a publicly owned beach, almost two-thirds of a mile in length, a public overlook with access from Marine Drive and provide an explicit right to an at-grade or above-grade railroad crossing. The property is appraised at $380,000 and assessed at $483,284. (Discussed in Executive Session) Approved 7-0

47. Ratify the AFSCME, Local 114 labor contract for 2012 – 2014? The following terms are specified for the three-year agreement. Wage increase will be zero for 2012, 1 percent in 2013 and 1.75 percent in 2014. Benefits: Employees must buy-up to more expensive medical plan. Deferred Comp: City provides a 1.5 percent match of employee’s base salary. Medical Change Incentive: city pays each active regular full-time employee $500, and regular part-time employee $250. (Discussed in Executive Session) Approved 5-0, Seth Fleetwood and Cathy Lehman were out of the room.

48. Authorize the mayor to sign an amended contract with American Traffic Solutions (ATS) related to a traffic safety camera system? At the 12/6/2010 meeting, vote #233, the City Council voted to regulate the use of traffic cameras. This amendment stipulates that the traffic safety camera system will not be implemented unless the city and ATS mutually agree to implementation in the next five years. The city is granted control over whether the system will ever be implemented. The contract automatically expires in five years. If the system is implemented in the next five years, ATS will be the vendor. The city agrees to not take any action that impairs the terms of the contract. The city will pay ATS, $100,000.00 prior to 6/1/2012. (Discussed in Executive Session) Approved 6-1, Terry Bornemann opposed.

49. Send a letter to the new owners of KVOS TV, with a copy to the FCC, requesting that they keep a presence in the community? KVOS has been a part of the Bellingham community for 60 years, but apparently the new owners plan on moving it from the area and the KVOS building is for sale. The station’s FCC license contains a commitment to local broadcasting. (Old/New Business) Approved 7-0

50. Approve the mayor’s appointment of David Jefferson to the Lake Whatcom Watershed Advisory Board? The board advises the city on the purchasing, management, maintenance and use of properties within the Lake Whatcom watershed. Mr. Jefferson is a research associate who holds a masters degree in administration from the University of Washington. He has lived in Bellingham for 13 years and currently resides in the Alabama Hill Neighborhood. This is his first term and it will expire on 2/27/2015. (AB19481) Approved 5-0, Seth Fleetwood and Cathy Lehman were out of the room.

51. Appropriate $4,195,859 for goods and services checks issued from March 2 through March 16, 2012? (AB19520/19521) Approved 5-0, Seth Fleetwood and Cathy Lehman were out of the room.

52. Appropriate $2,542,862.23 for payroll checks issued from February 25 through March 9, 2012? (AB19522) Approved 5-0, Seth Fleetwood and Cathy Lehman were out of the room.

53. Authorize the mayor to enter into a development agreement with Whitworth Park, LLC? (Public hearing held) In 2005, Whitworth Park, LLC filed applications for a rezone, preliminary plat and wetland stream permit for a 41-lot subdivision in the 1100 block of Yew Street in the Whatcom Falls neighborhood. The city approved the rezone in 2007 and the wetland/stream permit in 2009. The Bellingham Hearing Examiner approved the preliminary plat in 2009 and the city modified it and issued final approval in 2010. Whitworth Park filed an $8 million lawsuit against the city over the long delay and the city decided it would be cheaper to settle the case than to go to trial. The city must consider this development agreement under the terms of the settlement. The agreement ensures that all the permits are good through 2017 and that the city will process all of the project’s additional permit applications promptly. See the 2/27/2012 meeting, vote 21, for additional information about the settlement. AB19506 (Resolution 2012-06) Approved 7-0

54. Authorize the mayor to apply for a $150,000 state grant for restoration work at Bloedel Donovan Park? The estimated cost to rebuild a failing concrete retaining wall, create a shoreline beach area and replace lawn with native vegetation on Lake Whatcom is $300,000. The state grant would reimbursed the city for half the expenses. AB19511 (Resolution 2012-07) Approved 7-0

55. Amend the 2012 action plan of the 2008–2012 consolidated plan? (Public hearing held) The action plan designates city use of federal funds for low- and moderate-income households. The action plan is the city’s application for federal funds and it will guide the federal grant allocations. The 2012 action plan was approved by the City Council at the 10/24/2011 meeting, vote #219. Since then changes have occurred in levels of funding. The actual funds received are $98,069 less than expected. At the same time, the funds the city receives from the payback of low income housing loans is $21,787 higher than estimated in 2011 and 2012 and is available to be applied to low income housing activities in 2012. Under the revised plan, funding levels for most programs are being modified, homeless assistance is to be prioritized and a youth shelter is to be funded. The action plan may be viewed at the city library reference desk or at www.cob.org. AB19515 (Resolution 2012-08) Approved 7-0

56. Endorse staffing reorganization in the Executive Department? The mayor has asked for the following changes in the Executive Department: eliminate the full-time positions of Chief Administrative Officer and Neighborhood Services Coordinator; transfer the Communications Coordinator position from the Executive Department to the Information Technology Services Department; stop sharing the Administrative Assistant in the Executive Department with the Human Resources Department and increase the position from half-time to full-time; add the positions of Executive Coordinator, Community Outreach Specialist and City Hall Receptionist. These changes are expected to save the city $55,144 a year. AB19486 (Ordinance 2012-03-012) Approved 7-0

57. Appropriate $220,000 for an audit by Tax Recovery Services of Tacoma? On 2/13/ 2007, Tax Recovery Services signed a contract with the city to provide auditing and investigation services to determine compliance with the payment of business/occupation and utility taxes. Tax Recovery Services determined that Puget Sound Energy and Encogen Northwest owed back taxes. Both companies paid the assessment and filed a complaint for refund of taxes with Whatcom County Superior Court. The city of Bellingham prevailed in Whatcom County Superior Court and the Court of Appeals. The Whatcom State Supreme Court denied review. This appropriation is 25 percent of the $919,662 in back taxes (minus legal fees) owed from 2003 to 2008. Tax Recovery Services performed and presented the audit that established the city’s claim. AB19487 (Ordinance 2012-03-013) Approved 7-0

58. Create a Federal Building Fund? At the 3/15/2004 meeting, vote #51, the council approved the purchase of the Federal Building on the northwest corner of Cornwall and Magnolia for $1 and at the 6/12/2004 meeting, vote #147, the council accepted a $2,600,000 federal grant for renovations and improvements. At this point the project is partially complete. The account holding renovation and improvement funds was closed at the 12/12/2011 meeting, vote #268, because it was a multi-purpose account that didn’t conform to new federal standards. This new account will establish a single purpose building restoration fund for the remaining $1,000,000 in grant money. AB19488 (Ordinance 2012-03-0?14) Approved 7-0

59. Appropriate $450,000 for a settlement, legal fees and court costs in the case of Whitworth Park LLC v City of Bellingham? At the 2/27/2012 meeting, vote #21, the council voted to pay $350,000 to settle a $8 million lawsuit and, at this point, owes $94,300 in legal fees and court costs. Staff recommended that the city settle rather than incur more costs. Under the terms of the settlement the city also agrees to review and process all additional permits and approvals for the project as expeditiously as possible. This appropriation with leave the claims and litigation reserve fund with $4,629,970. AB19489 (Ordinance 2012-03-015) Approved 7-0

60. Authorize a $2,200,000 interfund loan to purchase 47.55 acres of land in the Lake Whatcom Watershed? The council at the 3/12/2012 meeting, vote #39, approved the property purchase from Whatcom Lands, Inc., Springland Company LLC, and the Uy Family Limited Partnership. The purchase will be paid by a loan from the Fleet Fund to the Water Fund Land Acquisition Department. The loan will be paid back with interest in three-five years through monthly payments from the Lake Whatcom land acquisition surcharge. In the remainder of 2012, the water fund will pay $500,000 including interest on the loan. Until paid in full, the property is the collateral on the loan. AB19493 (Ordinance 2012-03-016) Approved 7-0

61. Appropriate $64,000 for special legal services in 2012? This money will help pay for outside counsel, related professional litigation services and Squalicum Ridge Road appeals. The amount budgeted for special legal services was $20,600. AB19498 (Ordinance 2012-03-017) Approved 7-0