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Public Works and Natural Resources Committee

BEL-PWN-2025-10-20 October 20, 2025 Public Works Committee City of Bellingham
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The Public Works and Natural Resources Committee advanced two significant environmental protection initiatives that have been years in the making. The committee unanimously approved an ordinance establishing the framework for operating the Bellingham Mitigation Bank, marking a major milestone in the City's decade-long effort to create an alternative to traditional wetland mitigation. The bank, expected to open for credit sales in early 2027, will generate credits by restoring wetland and stream functions that can then be purchased by developers to offset unavoidable environmental impacts from their projects. The committee also adopted a joint resolution with Whatcom County and Lake Whatcom Water and Sewer District to implement a comprehensive response plan for invasive freshwater mussels in Lake Whatcom. The plan provides a detailed playbook for responding to any detection of quagga, zebra, or golden mussels in the lake, which serves as the drinking water source for over 120,000 people. Both items represent proactive environmental protection measures designed to address anticipated threats before they become crises. The mitigation bank ordinance establishes pricing committees, application review processes, and operating principles that prioritize ecological benefit, bank solvency, city project needs, and city development goals. Staff emphasized that the bank will face unique challenges due to anticipated demand exceeding credit supply, requiring careful prioritization of applications. The invasive mussel response plan establishes incident command protocols and outlines rapid response actions including containment, sampling, and treatment options that could be implemented within days of a detection.

**AB 24695 - Bellingham Mitigation Bank Ordinance** - **Vote:** 3-0 approval - **Action:** Establishes framework for operating the mitigation bank and creates special revenue fund - **Staff Recommendation:** Approve - Council followed recommendation - **Key Details:** Creates finance committee for credit pricing (Public Works Director, Finance Director, Mayor), review committee for applications (Public Works Director, Planning Director, Mayor), and four operating principles for eva…

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**Mitigation Bank Credit Allocation Priorities** The discussion revealed tension between maximizing revenue for the bank versus reserving credits for city projects. Council Member Anderson expressed concern about ensuring adequate credits are set aside for anticipated city infrastructure projects over the next 7-10 years. Staff explained they've conducted analysis but want flexibility to potentially prioritize revenue-generating sales to outside entities over city projects if alternative mitigation options are available for city work. The ordinance includes "city project needs" as one of four operating principles, but doesn't guarantee credit reservation. **Mitigation Bank Pricing Structure** Council explored whether credits sold outside the designated service area should carry premium pricing. While staff acknowledged discussing tiered pricing, they ultimately recommended a single price structure for transpa…
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**City Staff Position:** - Supports both ordinances as representing years of collaborative work - Emphasizes flexibility in mitigation bank operations to balance revenue generation with city needs - Advocates for single pricing structure to maintain market transparency - Confident in mitigation bank timeline and federal approval process despite potential government changes **Council Position:** - Unanimous support for both measures - Concerns about ensuring a…
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**Analiese Burns, on mitigation bank timeline:** "We feel very confident that we're we will be approved. We've had an excellent consulting team and city staff who've been working with very closely with both the Washington State Department of Ecology and the US Army Corps of Engineers to review every single technical document." **Council Member Anderson, on credit availability:** "I would want to make sure that that amount has been set aside until we can see on the horizon another mitigation b…
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**Mitigation Bank Timeline:** - Late 2026/early 2027: Mitigation Banking Instrument comes to Council for signature authorization - Early 2027: Bank opens for credit sales - Ongoing: Staff continues working with federal agencies on final approvals **Invasive Mussel Response Plan:** - Early November: Whatcom County Council consideration - October 28-29: Lake Wh…

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The city now has formal legal frameworks for two major environmental protection initiatives. The mitigation bank ordinance creates the operational structure needed to begin selling wetland and stream credits once federal approvals are complete, representing a shift from traditional permittee-responsible mitigation to a consolidated bank system. The invasive mussel response plan establishes the first site-specific rapid response protocol in Washington State, moving fr…
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# Bellingham's Environmental Guardianship — A Day of Major Decisions for Wetlands and Water On a crisp October afternoon, the City of Bellingham's Public Works and Natural Resources Committee achieved a significant milestone in environmental policy, advancing two major initiatives that will fundamentally change how the city manages its natural resources for decades to come. After nearly a decade of meticulous planning, the committee unanimously approved a groundbreaking mitigation bank ordinance and adopted a comprehensive rapid response plan for invasive freshwater mussels threatening Lake Whatcom. The meeting, chaired by Council Member Hannah Stone and attended by Council Members Lisa Anderson and Jace Cotton, represented the culmination of years of careful preparation. Council Member Dan Hamill joined remotely, demonstrating the importance of these decisions. Both agenda items passed unanimously, signaling strong council support for the city's evolving environmental stewardship approach. ## The Bellingham Mitigation Bank Takes Shape — Nine Years in the Making The star of the afternoon was Agenda Bill 24695, establishing the framework for operating the Bellingham Mitigation Bank — a revolutionary approach to wetland conservation that transforms how development projects handle unavoidable environmental impacts. Analiese Burns, Acting Public Works Assistant Director for Natural Resources, presented the ordinance with barely contained excitement about reaching this milestone. "We are at a very exciting milestone," Burns told the committee. "We've been coming to council pretty regularly over a period of years. Last time we were here was in 2024 about a year ago, and I'm pleased to provide some pretty important updates and we are on schedule." The mitigation bank represents a fundamental shift away from the traditional "permittee-responsible" mitigation approach, which Burns described as plaguing the region with "high rates of site failure, low ecological value, inefficient land use, and development project delays." Instead…
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### Meeting Overview The Bellingham City Council's Public Works and Natural Resources Committee met on October 20, 2025, to consider two major environmental protection ordinances: an ordinance establishing the framework for operating the Bellingham Mitigation Bank and a joint resolution adopting an emergency response plan for invasive freshwater mussels in Lake Whatcom. Both measures passed unanimously. ### Key Terms and Concepts **Mitigation Bank:** A site where wetlands and streams are restored, enhanced, or preserved to generate credits that can offset permitted environmental impacts from development projects, providing an alternative to small-scale, often unsuccessful individual mitigation efforts. **Credit Pricing Committee:** The three-person committee (Public Works Director, Finance Director, and Mayor or their designees) responsible for establishing and updating the prices for mitigation bank credits based on operating costs, market rates, and return on investment. **Service Area:** The designated geographic region (nine watersheds within Water Resource Inventory Area 1) where environmental impacts can be mitigated using credits from the Bellingham Mitigation Bank. **Invasive Freshwater Mussels:** Quagga, zebra, and golden mussels that can contaminate drinking water supplies, clog water infrastructure, outcompete native species, and cause severe ecological and economic damage if they establish in Lake Whatcom. **Incident Command System (ICS):** A standardized emergency response framework that would be activated by the Washington Department of Fish and Wildlife to coordinate multi-agency response efforts if invasive mussels are detected. **Range Delimitation:** The rapid sampling and surveying process to determine the extent and location of an invasive mussel detection within Lake Whatcom to inform response decisions. **Multi-Agency Coordination (MAC) Group:** A policy-level body of elected and appointed officials from over 30 potential entities that would provide strategic guidance and resource allocation for invasive mussel response efforts. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Hannah Stone | Committee Chair, First Ward Council Member | | Lisa Anderson | Committee Member, Fifth Ward Council Member | | Jace Cotton | Committee Member, At-Large Council Member | | Analiese Burns | Acting Public Works Assistant Director for Natural Resources | | Joel Pfundt | Public Works Director | | Mike Olinger | Deputy Public Works Director | | Mike Parelskin | Superintendent of Natural Resources Field Operations | | Mark Cecchini Beaver | Senior Scientist at Four Peaks Environmental Science & Data Solutions | | Matt Stamps | Legal Departmen…
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