City Council - Public Works and Natural Resources Committee

Mon, August 10, 2026

Agenda PDF Watch Video

Agenda items

Vote records

Discussion summary

Transcript

Meeting summaryAI-generated

City Council Public Works and Natural Resources Committee — August 10, 2026

This was a brief afternoon committee meeting chaired by Council Member Michael Lilliquist, with Council Members Lisa Anderson and Jace Cotton also serving on the committee. The meeting had a single substantive item.

Contract Award: Post Point Wastewater Treatment Plant Emission Control Upgrades (EU199)

The committee considered authorizing the mayor to contract with Walsh Construction Company II LLC to provide pre-construction and construction management services for air pollution control upgrades at the Post Point Wastewater Treatment Plant.

What the project does: The project will upgrade emissions control equipment on both of Post Point's sewage sludge incinerator units, transitioning the plant from a less restrictive federal air quality standard (40 CFR Part 60, Subpart E) to a more stringent one (Subpart LLLL). Staff noted the project is also tied to the city's existing settlement agreement with the Northwest Clean Air Agency. The city is approaching a cost threshold on Incinerator 1 that would legally trigger the upgrade requirement anyway; the city chose to include Incinerator 2 proactively as well.

Why the GCCM process: Rather than a traditional design-bid-build contract, the city used a General Contractor/Construction Manager (GCCM) delivery method, which was previously approved by the full council in March 2025. This approach brings the contractor into the design process early — helping plan how construction will occur without shutting down the treatment plant — and allows cost estimates to be refined collaboratively through 30%, 60%, and 90% design milestones. Walsh was selected through a multi-phase scoring process (written proposals plus interviews evaluating experience with emissions-type work and GCCM projects) and also submitted the lowest contractor's fee proposal among three bidders.

Costs: Pre-construction services are estimated at $900,000; construction is estimated at $40 million. The final binding "Maximum Anticipated Construction Cost" (MAC) will be negotiated in open-book format at the 90% design milestone, expected later in 2026 or early 2027. The project also includes an apprenticeship hour requirement.

Council discussion on cost oversight: Council Member Lilliquist pressed staff on what happens if costs come in significantly above the $40 million estimate and where the council's budgetary oversight ends. Staff explained that cost estimates will be refined at each design milestone, giving the city at least two decision points before the MAC is locked in. If costs exceed the budget, the executive branch (mayor) would evaluate whether to proceed or exercise an "off-ramp" — generally guided by a 25% cost threshold and what has been approved in the sewer budget. Staff acknowledged candidly that given regulatory obligations, available off-ramps are limited. Lilliquist clarified his intent: "I want us to reduce air pollution and I want this project to go forward. I don't want to have to use an off-ramp."

Council Member Anderson asked about the point-based scoring criteria, and staff explained that firms were evaluated on their approach to the project, team qualifications, and relevant experience in both emissions work and GCCM delivery — in addition to the contractor's fee markup.

No public comment was noted in the transcript.

Vote: Moved by Anderson, seconded implicitly by the committee. Passed unanimously (3–0). The item advances to the full City Council with a unanimous recommendation.

Key Takeaways

The committee unanimously recommended authorizing a contract with Walsh Construction for emissions control upgrades at Post Point, estimated at roughly $40 million for construction plus $900,000 in pre-construction services.

The project is legally driven — federal air quality regulations and a settlement with the Northwest Clean Air Agency require the plant to reduce incinerator emissions, and the city is approaching a cost trigger that would mandate the upgrade regardless.

The final contract price isn't set yet. Under the GCCM model, a binding maximum construction cost will be negotiated near the end of the design phase, likely late 2026 or early 2027, with the mayor holding authority to proceed or pull back based on budget.

Council's cost oversight is limited once the contract is awarded — significant budget decisions beyond a 25% threshold would fall to the mayor, though future budget approvals through the sewer fund provide some indirect council influence.

The item goes to the full City Council for a final vote at the evening meeting.

AI-generated summary from voice-to-text transcript. Not the official record. Verify important details with the source documents linked above.

What happened at this meeting

A contract award for the Post Point Wastewater Treatment Plant Emission Control Upgrades Project (EU199), Bid No. 2B-2026

# Post Point Wastewater Treatment Plant Emission Control Upgrades Project Summary

Staff presented a contract award to Walsh Construction Company LLC for the Post Point Wastewater Treatment Plant Emissions Control Upgrades Project (EU 199), selected through a GCCM alternative delivery process for submitting the lowest fee proposal and receiving the highest combined score based on qualifications, experience with emissions projects, and project approach. In response to Council member Anderson's questions, staff clarified that proposals were evaluated on contractors' project approach, emissions work experience, and team interviews—criteria beyond lowest bid alone. The maximum anticipated construction cost will be developed in an open book format and refined through 30%, 60%, and 90% design phases, with a current Class 4 estimate of $40 million. When a committee member raised concerns about cost overruns, staff explained that the mayor would exercise available off-ramps if costs exceed approximately 25% over the budget estimate. Council unanimously approved authorizing the mayor to contract with Walsh Construction Company LLC for pre-construction and construction services to upgrade air pollution control equipment and help the facility comply with more restrictive federal emissions requirements.

Agenda items (1)

Procedural (1)

25013ProceduralA contract award for the Post Point Wastewater Treatment Plant Emission Control Upgrades Project (EU199), Bid No. 2B-2026

The city is awarding a contract to a construction company to upgrade the emission control systems at the Post Point Wastewater Treatment Plant, which will help reduce air pollution from the facility.

What happened

Additional votes recorded in minutes

Approve contract with Walsh Construction Company II LLC for Post Point wastewater treatment plant emission control upgrades (EU 199)

aye 3

Jace Cottonaye

Lisa Andersonaye

Michael Lilliquistaye

Verbatim transcript available

34 transcript segments indexed

Welcome to the afternoon uh committee meetings of the Bellingham City Council. First up we have public works and natural resources and that is chaired by council member Liloquist. >> Thank you very much council president pro Tim Huffman.

Uh public works committee is myself, council members Lisa Anderson and Jace Cotton and the public works and natural committee has one item for us today. It's a contract award for postpoint wastewater treatment plant emissions control upgrades project EU 199 bid number 2B 20226.

The emissions control upgrades project will upgrade air pollution control equipment for both postpoint incinerator units. The city issued requests for proposals for a general contractor construction manager services, otherwise known as GCCM uh GCCM services on March 2026 and publicly open three price proposals on June 16th, 2026, which completed the multi-phase scoring process.

Walsh Construction Company uh two LLC submitted the lowest contractor's fee proposal and received the highest combined score from the review committee following council award. If we approve it, the mayor is authorized to contract with Walsh to provide pre-construction services and to act as a construction manager and general contractor again GCCM during the construction phase.

Pre-construction and construction services are estimated at 900,000 and 4 million 40 million respectively. The project also includes an apprenticeship hour requirement. So, I think it will be helpful for people understand why this is a fee proposal as opposed to an award for uh just a specific amount for a contract.

Um, Mr. Oler, should I start with you? >> Yes. >> Thank you, Chair Lilloquist. Uh, council members, Mayor Lond, uh, we're here today for a a contract award for EU 199, which is an emissions control upgrades project at Post Point.

In all reality, this is an emissions reduction project. This will allow us to reduce our emissions at the plant. Currently, our emissions are are regulated by CFR or 40 CFR part 60 subp part tri and we will be moving to subp part quad L which is a more restrictive set of requirements for incinerators.

So in all reality this project will help us to reduce the amount of miss emissions that are coming out of both incinerators at post point. We currently are approaching that point where we've hit 50% of our costs for incinerator 1, which would trigger us to be required to do this project.

We're still a long ways away from incinerator 2, but we see that there's a value in increasing that emissions for both incinerators at the plant. Um, sorry, decreasing the emissions. Thank you. [clears throat] Um, just a reminder for council that this is part of our settlement agreement with Northwest Clean Air.

And so with that, we would look for your approval to enter into this contract. >> Thank you, committee members. Miss Anderson, >> thank you. Um, and thank you for uh covering kind of a little bit of the steps.

Um, before uh moving approval, I was a little bit curious um because we don't always see this with all of our contracts. A lot of times our contracts are based on uh the most uh well, the lowest responsible bid.

um this has that but it also had a point system assigned to it which then sorted um the different bids. Could you speak a little bit just for educational purposes what some of that criteria was for assigning points?

Not necessarily who got what points but uh what was being uh reviewed in order to make that determination. >> Yes. So, so if you'll remember from March of 2025, we were here and we sought council's approval to enter into the alternative delivery process or to apply to be approved for the alternative delivery process for this project.

So, GCCM is that process. Through the reviewing process, we um ranked their applications. They submitted um proposals to us of how they would approach this project. Then we interviewed each one of the contracting firms and through that they introduced their teams to us, talked about their experience both doing this type of work, emissions type work and doing GCCM projects.

And so through that we had a ranking committee of I believe there was five of us that served on that committee. I served on that committee as well. Um, and so they got combined scores through each one of those processes.

And throughout the process process, Walsh was our highest ranking firm and they also submitted the lowest markup on the project. >> Thank you members. Further discussion? >> Um, I have a a question first.

So um under the GCCM process rather than bidding on a final project price we we select the contractor but at some point we do come to a final price a not to exceed number. When does that occur? >> I'm going to refer to Steve.

So, so we do become come to >> roughly, you know, >> if if I had to guess, it will be later this year or early next year where we come we'll come to a point where we agree to a maximum allowable construction cost at MAC and and Steve can probably speak more to when specifically we get there.

>> Uh that's generally correct. Steve Day, project engineer for the for the emissions control upgrades project. Um, yeah, the GCCM process allows us and and this is part of what was discussed at our previous approval meeting, allows the city to bring the contractor on as a member of the design team to help understand more about the constructibility process, how they're how the project will be constructed.

One of the critical elements here is that uh we don't want the plant to shut down inadvertently. So that planning process for how cuts will occur is all integral to the GCCM process. Through each step of our design and our 30 and our 60 and our 90% milestones, the contractor will develop a cost estimate based on um their knowledge of the project and of market conditions that helps us refine the total costs um a little bit more accurately than we might under a consultant design bid build project.

Um the MAC uh will be developed the I'm sorry maximum anticipated construction contract will be um developed in an openbook format for review by the uh by the city's uh PM and and executive ta staff at at the 90% level and at will know that for certainty the you know by definition the maximum anticipated construction cost for the project at that time.

>> So that's sort of my question. Right now we have an estimated $40 million. Uh presumably if it came in at I'll make it up $20 million all be happy and celebrate. But if it came in at $80 million or 60 we'd have a problem.

Um I'm obviously interested in something a little bit more realistic. Um if we were much off from the 40 million then what? Go ahead. >> Uh I think in in terms we're we're at the same point we are now with this particular approval in that we have a class 4 estimate.

um design by the consultant that gives us an estimate of what it's going to cost. That estimate will be refined and um that you know the budgeting aspect of of the project will continue in our 30 60 and 90% phases as we have as we would under a typical bill uh project.

Um if we are if the project runs significantly over the current anticipated budget, we will know at at least two steps between now and the and uh negotiation of the MAC. um at the time the mat comes in if it's significantly over over process or over overc cost then we'll have to make a decision as from a budgetary standpoint uh what to do with the either where to find the funds or whether to take an off-ramp for the project.

>> So as you say there some offramps um from in terms of the council's perspective we are uh authorizing the mayor to enter into this contract. She will be the one who exercises the offramps. I'm just wondering when does our budgetary oversight end and and what are the tools the mayor will have to take those offramps?

>> Ultimately, it would be the mayor that would exercise that off-ramp. So, generally speaking from from an executive administrative perspective, we look for that 25% threshold. If if projects stay within that 25%, then we tend to move forward with them.

With this, we would also be looking at what has been approved in the budget by council through the sewer budget. Um, and we we would be evaluating all of that as to whether we exercise an off-ramp or not.

And what would that off-ramp look like? We've talked about with this body many times that we've kind of run out of off-ramps. Um, so that would that would be a hard discussion to have at that time. >> Thank you.

To be clear, I want us to reduce air pollution and I want this project to go forward. I don't want to have to use an off-ramp. Thank you for answering that question. Any further discussion from council or committee me or committee members or council members looking for direction or a motion?

Lisa, >> thank you. Um I move to approve the mayor to contract with Walsh Construction Company to LLC for pre-construction and construction services for the postpoint water treatment plant emission control upgrade projects EU 199.

>> Thank you. Do you have a motion before us? Any further discussion? Committee members, all those in favor signify by saying I. I. >> I. All those opposed. I'll bring that forward with a unanimous recommendation tonight for the full council.

That was our only item. Um, end of public works and natural research committee. I uh we are adjourned and I turn the meeting back over to President Proen. >> Thank you, Council Member Liiloquist. Our next committee meeting is planning.