Council Minutes for September 21, 2009 City of Bellingham, WA

RECORD OF PROCEEDING OF CITY COUNCIL

CITY OF BELLINGHAM, WASHINGTON

COUNCIL CHAMBERS, CITY HALL
Monday, September 21, 2009, 07:00 PM
Book: 63, Page: 1

REGULAR MEETING

Called To Order The meeting was called to order by Council President Barry Buchanan with the Pledge of Allegiance led by David Warren.

Roll Call
Present:

Jack Weiss, Council Member, First Ward
Gene Knutson, Council Member, Second Ward
Barry Buchanan, Council Member, Third Ward
Stan Snapp, Council Member, Fourth Ward
Terry Bornemann, Council Member, Fifth Ward
Barbara Ryan, Council Member, Sixth Ward
Louise Bjornson, Council Member, At Large

Excused:

ANNOUNCEMENT(S)

Bellingham City Council meets all requirements of the State of Washington Open Meetings Act.

APPROVAL OF MINUTES

None submitted.

15 - MINUTE PUBLIC COMMENT PERIOD

Stuart Plotnik President, Fairhaven Neighbors & member of the Coalition of Southside Neighborhoods. Mr. Plotnik distributed packets that illustrate the Coalition's concerns with regard to an application for relocation of a sewer line that runs under several parcels. These lots are near the Fairhaven Village Green and proceed toward the Boardwalk. The sewer line is parallel and slightly to the east of the South Bay Trail.

PRESENTATION(S)

AB18585 1. THE BIG READ: WHATCOM READS! 2010 GRANT ANNOUNCEMENT

Pam Kiesner, Library Director and Christine Perkins, Assistant Director of the Bellingham Public Library announced a $15,000 Grant from the National Endowment for the Arts for The Big Read: Whatcom READS! 2010. This year's book is, Old School, by Tobias Wolff, who will visit Bellingham on February 8, 2010. Information only.

AB18586 Resolution #2009-28
2. RESOLUTION OF THE CITY COUNCIL MEMBERS REJECTING A COST OF LIVING ADJUSTMENT FOR 2010

“A RESOLUTION OF THE CITY COUNCIL TO REJECT ITS SCHEDULED COST OF LIVING ADJUSTMENT FOR 2010”

KNUTSON / BORNEMANN moved final approval of Resolution #2009-28. MOTION CARRIED 7-0.

PUBLIC HEARING(S)

AB18587 CB 13554
1. AN ORDINANCE REGARDING EXCEPTIONS TO THE 90,000 SQUARE FOOT LIMIT FOR RETAIL ESTABLISHMENTS

“AN ORDINANCE RELATED TO LAND USE REGULATIONS, PROVIDING EXCEPTIONS TO THE SIZE LIMIT FOR RETAIL ESTABLISHMENTS WITHIN LIMITED AREAS OF THE CITY BY AMENDING BELLINGHAM MUNICIPAL CODE 20.00.080; 20.00,110; 20.10.025; 20.38.050.C AND 20.38.050.D.”

Mayor Pike thanked the council for considering this complex issue that presents a significant challenge for Bellingham which, is how to maintain a diverse retail sector while also leveling the playing field by mitigating certain impacts of retailing on a large scale.

Marilyn Vogel, Senior Planner, briefly reviewed the history of the Retail Size Cap, which includes a 90,000 s.f. size cap on individual retail stores, established in 2007. In 2008 an amendment was passed allowing existing stores to expand by up to 2,000 s.f. There are nine existing stores over the size cap plus the former Home Base store. Six of these and the Home Base building are located in the Meridian, Guide Meridian/Cordata Neighborhoods. Others are also located in the proposed size cap exception area.

John Carter, Finance Director gave a detailed report with regard to tax revenues, year ending 2008. In summary, the nine big box stores accounted for almost 16% of the city's sales tax revenues and 8% of the city's B&O tax revenues. The total, including utility taxes and property taxes, totaled $4.2 million for these nine entities and were direct receipts to the city. The remainder of the sales tax paid by these nine stores was $26.2 million that was divided between the State (primarily to support schools), Whatcom Transit Authority, Whatcom County the EMS system, the mental health system and the Public Facility District. The State of Washington also received $2.7 million in B&O taxes and the estimated total property tax paid to all the governments in Whatcom County was an additional $611,000. Total estimated taxes paid by the big box stores was $33.7 million. The Comprehensive Plan recognizes the area north of Meridian and I-5 as a regional retail center.

Ms. Vogel noted that the size cap would remain in effect in all other areas of the city and the ordinance would require Green Factor landscaping for new or expanded large retail stores in the exception area. She showed several maps illustrating current land use, zoning and green factor options. The proposal would require a Green Factor score of .3 for stores over 90,000 s.f. , which is the same score that Seattle and Fife use for commercial zones.

The Planning Commission recommends approval of the proposal. Additionally, the Planning Commission recommends that Council investigate whether the size of the exception area should be smaller; whether a number of additional items should be required - such as a higher Green Factor, LEED Silver for new development, a re-use plan, de-construction bond, employee alternative transportation programs and additional building-front landscaping. The Commission also encouraged the council to consider a regional tax sharing strategy.

Council Member Weiss asked if the Planning staff has done any analysis with Public Works about the transportation impacts on Meridian and Bakerview.

Ms. Vogel replied that staff has not done a new analysis. The city does have the Transportation Concurrency program that requires any development to determine its traffic generation impacts and whether the existing systems and street can handle the additional traffic.

Mark Gardener, Council Policy Analyst presented a Power Point entitled “Regulating the Impact of Big Box Stores: Context and a Broad Survey of Options” to help determine if the city should amend the size cap for retail stores. He reviewed the evolution of retail from department stores to malls and now club stores (encourage bulk buys and fewer visits) and superstores (encourage frequent visits). He discussed the affects of superstores in the retail market which he feels, has led to the closure of Circuit City and in part to Brown & Coles' store closures and restructuring. He then discussed the wage and employment impact with the following conclusions:

· Age and employment can actually drop after big box superstores enter: retail supply does not create its own demand. Jobs are added in the superstores but more jobs are lost in impacted sectors. Wage levels of chain big boxes/superstores tend to be lower than local - especially in the unionized grocery sector.
· A few studies have shown no or negative revenues to local government: loss of jobs elsewhere, lower average retail prices of goods and high costs for infrastructure and policing, etc. in the big box areas.
· There is no data (one way or the other) that this is true locally.

He explained that there are ways to improve public benefit. They are:

· Green Factor for stormwater and landscaping.
· LEED (Leadership in Energy and Environmental Design) requirements for energy, traffic and related issues.
· Structural design standards to facilitate reuse.
· Provisions in development agreements to prevent continued rental of abandoned store sites.
· Require a reuse/redevelopment plan for the site at time of construction.
· Require a performance bond to pay for demolition/reuse of site if store is abandoned.
· Wage and employment standards.
· Traffic and parking requirements.
· Regional revenue sharing.

Council President Buchanan opened the public hearing.
Janis Barsetti Gray, 409 South Parkwood Drive; owns property at 1348 West Bakerview Road supports the proposed ordinance.

Abe Jacobson, 2314 Samish Way does not support the proposed ordinance.

Betsy Pernotto, 3112 Alderwood does not support the proposed ordinance.

Bob Marshall, 3112 Alderwood does not support the proposed ordinance.

Karen Weil does not support the proposed ordinance.

Aileen Satushek, 693 E. Axton Road does not support the proposed ordinance

Philip Morgan, 4405 College Street supports the proposed ordinance.

Jim Smith, 6724 Fairfield Place, Ferndale owns property in the Guide Meridian/Cordata Neighborhood and supports the proposed ordinance.

Dorothy Loney, 1425 Willeys Lake Road, Ferndale supports the proposed ordinance

Derek Long, Executive Director, Sustainable Connections does not support the proposed ordinance and suggested exploring Regional Revenue Sharing.

Beverly Jacobs, 4567 El Dorado Way Co-president, Guide Meridian/Cordata Neighborhood Association supports the proposed ordinance.

Doug Robertson, 900 Dupont Street supports the proposed ordinance.

Julianna Guy, 4559 El Dorado Way, Board of Directors, Guide Meridian/Cordata Neighborhood Association, supports the proposed ordinance.

C. Wagner, Member, UFCW Local 21; does not support the proposed ordinance.

Michael Rizi does not support the proposed ordinance.

Bill Henshaw, 2653 North Park Drive supports the proposed ordinance.

Alex Kosmides, 416 Hillcrest said he is pleased to hear about the mitigation proposals should the ban be adjusted or lifted. He does not believe the sky will fall if exceptions are made to the big box ordinance.

Steve Williamson, member, UFCW Local 21, does not support the proposed ordinance.

Ken Oplinger, Bellingham Whatcom Chamber of Commerce supports the proposed ordinance

Charles Law does not support the proposed ordinance.

Lori Provence, 2501 West Street does not support the proposed ordinance.

Mary Maute, 2736 Alderwood does not support the proposed ordinance.

Public hearing closed; written record will remain open.

BREAK
Council President Buchanan called the meeting back to order at 9:25 p.m.

KNUTSON / SNAPP moved to postpone to October 25, 2009.
BORNEMANN made a friendly amendment to postpone to January 25, 2010.
KNUTSON accepted the friendly amendment.
MOTION CARRIED 7-0.

REPORTS OF COMMITTEES

COUNCIL STANDING COMMITTEE MEETINGS:

FINANCE & PERSONNEL
MEMBERS: GENE KNUTSON, CHAIR; LOUISE BJORNSON; STAN SNAPP

AB18588 1. A PRESENTATION TO COUNCIL EXPLAINING THE FUND RESERVE POLICY AND SUGGESTED CHANGES

Council Member Knutson reported that John Carter, Finance Director had given a detailed report during committee. Information only.

AB18589 CB 13555
2. AN ORDINANCE RELATING TO THE 2009 BUDGET AUTHORIZING ADDITIONAL EXPENDITURES IN THE AMOUNT OF $93,016.70 FOR UNANTICIPATED COSTS RELATING TO THE CIVIC FIELD IMPROVEMENT PROJECT

“AN ORDINANCE RELATING TO THE 2009 BUDGET AUTHORIZING ADDITIONAL EXPENDITURES IN THE AMOUNT OF $93,016.70 FOR UNANTICIPATED EXPENSES RELATING TO THE CIVIC FIELD IMPROVEMENT PROJECT.”

KNUTSON / BJORNSON moved approval for first and second reading. MOTION CARRIED 7-0.

PLANNING & COMMUNITY DEVELOPMENT
MEMBERS: TERRY BORNEMANN, CHAIR; BARBARA RYAN; JACK WEISS; LOUISE BJORNSON

AB18590 1. ANNUAL REPORT FROM BELLINGHAM WHATCOM COUNTY TOURISM BUREAU

Presentation made during committee. Information only.

AB18591 2. PRESENTATION BY DR. MARK BUSSELL REGARDING WWU INNOVATION PARTNERSHIP ZONE AND REPORT BY COUNCIL ANALYST MARK GARDNER ON LOCAL ECONOMIC DEVELOPMENT PLANNING

Presentations made during committee. Information only.

WATERFRONT DEVELOPMENT COMMITTEE
MEMBERS: JACK WEISS, CHAIR; BARBARA RYAN; TERRY BORNEMANN

AB18524 CB 13543
1. WORK SESSION ON THE DRAFT SHORELINE MASTER PROGRAM REGARDING THE WATERFRONT DISTRICT
Council Member Weiss reported that he and Council Member Bornemann had submitted a memo dated September 17, 2009 to the Council, Mayor Pike and staff with recommendations regarding the Shoreline Management Program. That memo was broken down into five sections: General, Water-oriented Shoreline, Mixed-use Shoreline, Recreational Shoreline and Further Direction. Each item was discussed during committee and direction was provided to staff.

WEISS / BORNEMANN moved to direct staff to make the changes as outlined during committee in the Shoreline Management Program recommendations submitted to Mayor Pike, the City Council and staff, in a memo dated September 17, 2009 and entitled Shoreline Management Program Recommendations. MOTION CARRIED 7-0

COMMITTEE OF THE WHOLE
MEMBERS: BARRY BUCHANAN, CHAIR

1. APPROVAL OF CITY COUNCIL COMMITTEE AND/OR SPECIAL MEETING MINUTES

None submitted at evening meeting.

2. OLD/NEW BUSINESS

Council President Buchanan asked Council if they would like an annexation worksession. Council Member Knutson asked if there are any annexations scheduled for consideration before the end of the year. Planning Director Tim Stewart will report back to council.

Council Member Snapp asked about the status on the building analysis report for the waterfront. Mayor Pike reported that the initial findings are expected in early October.

EXECUTIVE SESSION - Report only.

1. LITIGATION PSE VS City of Bellingham: Staff provided an update on this matter. No action was taken.

2. LITIGATION Pacific Crest Partners vs City of Bellingham: Staff provided an update on this litigation matter.

KNUTSON / WEISS moved to authorize the Mayor to enter into a Settlement Agreement with Pacific Crest Partners in which the city pays Pacific Crest Partners $316,036.00 in exchange for Pacific Crest Partners' dismissal of its lawsuit and release of its damage claims against the city. MOTION CARRIED 7-0.

3. LABOR UPDATE TENTATIVE AGREEMENT RATIFICATIONS: City staff provided an update on labor negotiations.

BJORNSON / SNAPP moved to approve the agreement with AFSCME 114L (Librarians) with the following terms:
Term of Agreement: Modifications to current 2009-2011 agreement
Wages: 0% for 2010
Benefits: No change to health plan
MOTION CARRIED 7-0.

BJORNSON / SNAPP moved to approve the agreement with AFSCME 114F (Fire Dispatch) with the following terms:
Term of Agreement: 2010-2011
Wages: 0% for 2010, wage re-opener for 2011
Benefits: No change to health plan
MOTION CARRIED 7-0.

4. POTENTIAL LITIGATION: Staff provided an update on a potential litigation matter. Direction was provided to staff. No action was taken.

MAYOR'S REPORT

AB18592 1. LABOR UNION AGREEMENT UPDATE

Mayor Pike updated the Council and citizens on the current Labor agreements with the City. Information only.

AB18593 2. WATERFRONT TRANSPORTATION ALTERNATIVES UPDATE

Mayor Pike updated the Council and citizens on waterfront transportation alternatives. The City and the Port of Bellingham are working together to identify and study robust transportation alternatives that can be incorporated into the Waterfront District Master Plan and Development Agreement. The Waterfront Advisory Group has reported that the Port of Bellingham has entered into an Agreed Order with the Department of Ecology to perform a Remedial Investigation Feasibility Study (RIFS). The draft RIFS is expected to be available in late 2010. Consultants are continuing to take soil samples; and architects are performing adaptive reuse potential on the eleven remaining structures on the GP site. Initial findings are expected in early October. Additionally:

· The City and Port have completed the Stage 1 pre-review application for the lead in the Gold Certification of the Waterfront District.
· The Port has filed an appeal of the decision regarding the site for the NOAA program.
· The first construction project in the Innovation Zone will be completed later this month.

The City has put in a request for a Transportation Infrastructure Generating Economic Recovery (TIGER) grant. Additionally, the State Department of Transportation has put in a parallel grant that is duplicative so the city would have two opportunities to participate in the high speed rail program. Mayor Pike explained that the proposal now includes fully funding our waterfront project, including not just the rail relocation but also the Cornwall Bridge rebuild and the Central Avenue improvements necessary to make all of those things happen. He is very optimistic that between these two grant proposals, the city will see some significant funds as early as next year.

Council Member Weiss expressed concern that the policy direction given by council in June [June 29, 2009] is not being fulfilled and there is not very much being reported.

Mayor Pike responded that conversations have been started but the overwhelming majority of the work is yet to come.

Council Member Weiss cautioned that he does not want to hear that there is not much to report and then suddenly have a Master Plan needing approval, dropped on his desk.

Mayor Pike replied that he does not anticipate that happening; there simply is not a lot to report right now. This is a very large, complex project with many different things moving forward at different times. He assured Mr. Weiss and the council that he would report every six weeks.

Information only.

AB18594 3. MAYOR'S REAPPOINTMENT OF JOHN STEWART TO THE DESIGN REVIEW BOARD

SNAPP / BORNEMANN moved to authorize the Mayor to reappoint John Stewart to the Design Review Board, term ending September 25, 2013. MOTION CARRIED 7-0.

AB18595 4. MAYOR'S APPOINTMENT OF MARISA PAPETTI TO THE BELLINGHAM ARTS COMMISSION

WEISS / BARBARA RYAN moved to authorize the mayor to appoint Marisa Papetti to the Bellingham Arts Commission, term ending January 1, 2012. MOTION CARRIED 7-0.

AB18596 5. MAYOR'S REAPPOINTMENT OF SUSAN GRIBBIN AND KATHY KERSHNER TO THE COMMUNITY DEVELOPMENT ADVISORY BOARD

Information only.

CONSENT AGENDA
All matters listed on the Consent Agenda are considered routine and/or non-controversial items and may be approved in a single motion. Committee review has taken place during the afternoon session on most of these items. A member of the Council may ask that an item be removed from the Consent Agenda and considered separately.

AB18597 CB 13556
1. BUDGET AMENDMENT TO ALLOW FOR RECEIPT AND SPENDING OF U.S. DEPARTMENT OF HOMELAND SECURITY GRANT PROGRAM FUNDS TOTALING $22,316.75

“AN ORDINANCE RELATING TO THE 2009 BUDGET RECOGNIZING RECEIPT OF $22,316.75 IN U. S. DEPARTMENT OF HOMELAND SECURITY GRANT DOLLARS INTO THE GENERAL FUND AND APPROPRIATING RELATED EXPENDITURES OF THOSE FUNDS TOTALING $22,316.75.”

AB18598 CB 13557
2. A BUDGET ORDINANCE RELATING TO THE 2009 BUDGET, ELIMINATING ONE POSITION AND RECLASSIFYING FIVE OTHER POSITIONS IN THE GIS SECTION OF PUBLIC WORKS, WHERE NO ADDITIONAL APPROPRIATION OR REALLOCATION OF FUNDS IS REQUIRED

“AN ORDINANCE RELATING TO THE 2009 BUDGET ELIMINATING ONE POSITION AND RECLASSIFYING FIVE OTHER POSITIONS IN THE GIS SECTION OF THE PUBLIC WORKS DEPARTMENT AND PLACING THE ESTIMATED SAVINGS IN ESTIMATED ENDING UNDESIGNATED RESERVE IN THE STREET FUND.”

AB18599 CB 13558
3. AN ORDINANCE RELATING TO THE 2009 BUDGET REDUCING REVENUES AND EXPENDITURES ASSOCIATED WITH THE ANTICIPATED BOND ISSUE FOR THE FAIRHAVEN LIBRARY REMODEL PROJECT

“AN ORDINANCE RELATING TO THE 2009 BUDGET REMOVING RECEIPT OF BOND REVENUES AND SPENDING AUTHORITY FOR REMODELING THE FAIRHAVEN LIBRARY.”

AB18600 4. AUTHORIZATION OF CHECK ISSUE FOR PAYROLL AUGUST 16 TO AUGUST 31, 2009

AB18601 5. AUTHORIZATION OF CHECK ISSUE FOR ACCOUNTS PAYABLE FOR SEPTEMBER 4 TO SEPTEMBER 11, 2009

KNUTSON / SNAPP moved approval of the Consent Agenda in its entirety. MOTION CARRIED 7-0.

FINAL CONSIDERATION OF ORDINANCES

AB18579 1. CB 13553
AN ORDINANCE RELATING TO THE 2009 BUDGET REALLOCATING $12,440.00 IN EXPENDITURES IN THE POLICE DEPARTMENT, GENERAL FUND; AND THE PUBLIC WORKS DEPARTMENT, PARKING SERVICES FUND; TO ACCOMMODATE AN INCREASE IN SALARY AND BENEFIT COSTS RESULTING FROM A RENEGOTIATED WAGE LEVEL FOR PARKING ENFORCEMENT OFFICERS.

BORNEMANN / BJORNSON moved approval for third and final reading. Upon motion, said bill was placed on final passage and approved by the following roll call vote:

AYES: BJORNSON, BORNEMANN, BUCHANAN, KNUTSON, BARBARA RYAN, SNAPP, WEISS
NAYS:
ABSTENTIONS:
EXCUSED:

MOTION CARRIED 7-0 and was thereafter named Ordinance #2009-09-059

AB18576 2. CB 13552
AN ORDINANCE RELATING TO BELLINGHAM MUNICIPAL CODE CHAPTER 2.39 ENTITLED “MUSEUM” AND AMENDING SECTIONS 2.39.010 – 2.39.030 AND SECTION 2.39.050 TO REFLECT THE CURRENT NAME, WHATCOM MUSEUM FOUNDATION, AND TO UPDATE THE CODE TO REFLECT CHANGES PROVIDED IN THE 2009 MUSEUM OPERATING AGREEMENT BETWEEN THE CITY OF BELLINGHAM AND THE WHATCOM MUSEUM FOUNDATION

BARBARA RYAN / BORNEMANN moved approval for third and final reading. Upon motion, said bill was placed on final passage and approved by the following roll call vote:

AYES: BJORNSON, BORNEMANN, BUCHANAN, KNUTSON, BARBARA RYAN, SNAPP, WEISS
NAYS:
ABSTENTIONS:
EXCUSED:

MOTION CARRIED 7-0 and was thereafter named Ordinance #2009-09-060

ADJOURNMENT

There being no further business, the meeting adjourned at 10:19 p.m. Barry Buchanan, Council President

ATTEST: Linda D. Anderson City Clerk Representative
APPROVED: 10/19/2009

This is a digital copy of an original document located at Bellingham's City Hall. The City of Bellingham specifically disclaims any responsibility or liability for the contents of this document. The City of Bellingham does not verify the correctness, accuracy, or validity of the information appearing in this document.