City Council - Public Works and Natural Resources Committee
Mon, January 26, 2026
City Council Public Works and Natural Resources Committee — January 26, 2026
This was a regular committee meeting chaired by Council Member Michael Lilliquist, joined by Council Members Lisa Anderson and Jace Cotton. The committee reviewed four items, all forwarded with unanimous positive recommendations for full council consideration the same evening.
Old Town Redevelopment Street Improvements — Contract Award (Project ES562)
The city received eight bids in December 2025 for street improvements in the Old Town neighborhood, part of a public-private partnership governed by development agreements with Barbbury, Inc. (2020) and Old Town LLC (2023), as well as a 2024 economic development grant and loan agreement with Whatcom County. Project Engineer Craig Mueller explained that the work will cover back-of-curb-to-back-of-curb improvements on C, D, and E Streets from Holly Street to Bancroft, and on Aster Street from C Street to F Street. It will include permanent street lighting (particularly on Aster Street), undergrounding of overhead utility lines (except transmission lines on C Street), and raised, curbless intersections at Aster Street cross-streets — designed to give the area a pedestrian-oriented, residential feel similar to the Holly/Magnolia/Champion corridor near the federal building. Sidewalk installation on most blocks will be left to the developer as individual parcels are developed.
Earthwork Solutions LLC submitted the lowest responsive bid at approximately $5.9 million including sales tax — about 15% below the engineer's estimate of $6.8 million and within the project budget. The project carries an apprenticeship hour requirement. Work is expected to begin in late February 2026 and be completed by July 2026, timed to allow occupancy of the developer's first housing building. Funding comes roughly equally from the Whatcom County grant/loan (~$3 million) and local real estate excise tax and transportation funds.
Vote: Unanimously approved by committee (Anderson moved; all three members in favor).
Fiber Optic Franchise — NFC Northwest, LLC
The committee considered an ordinance granting a telecommunications franchise to NFC Northwest, LLC to install, operate, and maintain fiber optic broadband infrastructure in city rights-of-way. Assistant Director of Public Works Mike Wilson and staff attorney Matt Stamps explained a somewhat complex corporate structure: NFC Northwest is connected through ownership and contractual agreements to Ziply Fiber, which owns the main trunk line bringing internet service into Bellingham. NFC Northwest will manage the distribution network to homes and businesses, while Ziply will continue handling operations, maintenance, and customer relationships. The franchise is required to formalize NFC Northwest's role under this new arrangement.
The 10-year franchise term and $100,000 bond are consistent with the city's recent practice (the city may grant up to 25-year terms). Wilson noted the city has limited negotiating authority under Municipal Code Chapter 13.15 and City Charter Article 11 — staff essentially apply standard conditions and cannot refuse a properly submitted application.
Council Member Anderson flagged a minor but practical issue: Ziply's October 2025 letter to the city was addressed to a public works employee who left three years ago. Staff confirmed they are already working to update the contact information.
Council Member Lilliquist noted, as he had with a previous franchise agreement, that he would like the city to proactively revisit the municipal code to strengthen language around utility undergrounding when feasible — something that cannot be applied retroactively but should be addressed before the next such franchise comes forward.
Vote: Unanimously approved by committee (Anderson moved; all three members in favor).
Central Library Interior Renovation — Acceptance of Two State Commerce Grants
The committee approved acceptance of two grants from the Washington State Department of Commerce for the Bellingham Central Library Interior Renovation Project, totaling just under $3 million combined:
Public Works Assistant Director Carol Rothfgar explained the funds will support renovation of the library's ground-floor children's space, modifications to the mezzanine-level administrative area, and potential security and help-desk updates on the main floor. Library Director Rebecca Jeff confirmed the project is now fully funded.
The design is being finalized, with design development and construction documents expected this summer, bidding in fall 2026, and construction anticipated to begin in late 2026 or early January 2027 — at which point some library closures for patrons will be necessary.
Council Member Lilliquist singled out State Representative Timmons and the 40th and 42nd Legislative District delegations for securing the $2 million Local and Community Projects grant — the maximum award available in that competitive state cycle — calling it a meaningful achievement given recent tight state budget years.
Vote: Unanimously approved by committee (Anderson moved both items together; all three members in favor).
Key Takeaways
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 Old Town Redevelopment, Project ES562, Bid No. 81B-2025
An ordinance granting to NFC Northwest, LLC a franchise to install, operate, and maintain fiber optic broadband network components in City rights-of-way for the provision of telecommunications services to Bellingham businesses and residents
Acceptance of a grant from the Washington State Department of Commerce for the Bellingham Central Library Interior Renovation Project (Contract #26-96647-028)
Staff presented acceptance of two Washington State Department of Commerce grants totaling approximately $3 million for the Bellingham Central Library Interior Renovation Project, with Carol Rothfgar, assistant director of public works, explaining the funds will support ground floor renovations, children's space updates, mezzanine administrative modifications, and potential security enhancements. The grants consist of contract 26-96647-028 for $999,100 and contract 26-96647-001 for $1.95 million, representing the maximum award from a competitive state bid cycle; staff recognized Rep. Timmons and representatives from the 40th and 42nd districts for securing these funds during difficult budget years. A committee member confirmed the project is fully funded and moved approval of both items, noting appreciation for the additional funding toward this needed project. The motion passed unanimously, with design development proceeding and construction documents expected this summer, with construction anticipated to begin in late 2025 or January 2026 and library closures expected at year-end or early next year.
Acceptance of a grant from the Washington State Department of Commerce for the Bellingham Central Library Interior Renovation Project (Contract #26-96647-001)
The committee unanimously approved a grant from the Washington State Department of Commerce for the Bellingham Central Library Interior Renovation Project, voting together with item 24815 as part of the same funding initiative. The combined grants totaled $3 million toward the library project. All committee members voted in favor of approving both grants and related contracts in a single motion.
Agenda items (4)
What happened
Staff presented a contract award for Old Town Redevelopment Project ES562, Bid No. 81B-2025, involving street improvements on C, D, E, and Aster Streets. Earthwork Solutions LLC submitted the lowest responsive bid at $5.9 million (including sales tax), approximately 15% below the engineer's estimate of $6.8 million. Project Engineer Craig Mueller explained the scope includes back-of-curb improvements, interim/permanent lighting on Aster Street, and undergrounding of utility lines, with curbless raised intersections designed to enhance pedestrian experience. Council Member Liiloquist questioned the back-of-curb description and clarification was provided that the developer will handle sidewalks and streetscape on most blocks. The project is expected to begin in late February and complete by July, enabling occupancy of the first residential building. The committee voted unanimously to recommend approval, with funding from county grants/loans (approximately $3 million) and local sources.What happened
Staff presented an ordinance granting NFC Northwest, LLC a franchise to install, operate, and maintain fiber optic broadband network components in city rights of way for commercial telecommunications services. Council Member Liiloquist noted the complex corporate structure with multiple layers of ownership, suggesting involvement of a major telecom concern, while Assistant Director of Public Works Mike Wilson and City Engineer Matt Stamps recommended approval, explaining that the partnership involves Ziply Fiber as one of the partners. The franchise agreement includes a 10-year term (with authority for up to 25 years), a $100,000 bond, and application fees consistent with recent practices. Committee member Lisa raised a concern about outdated contact information in city records, noting that Ziply's October 29th letter was addressed to Chad Scholhouser who left three years ago, and requested the contact be updated in public works. The committee voted unanimously to approve the franchise ordinance, while another member expressed a desire to strengthen undergrounding language in the municipal code for future franchise agreements.What happened
# SummaryStaff presented acceptance of two Washington State Department of Commerce grants totaling approximately $3 million for the Bellingham Central Library Interior Renovation Project, with Carol Rothfgar, assistant director of public works, explaining the funds will support ground floor renovations, children's space updates, mezzanine administrative modifications, and potential security enhancements. The grants consist of contract 26-96647-028 for $999,100 and contract 26-96647-001 for $1.95 million, representing the maximum award from a competitive state bid cycle; staff recognized Rep. Timmons and representatives from the 40th and 42nd districts for securing these funds during difficult budget years. A committee member confirmed the project is fully funded and moved approval of both items, noting appreciation for the additional funding toward this needed project. The motion passed unanimously, with design development proceeding and construction documents expected this summer, with construction anticipated to begin in late 2025 or January 2026 and library closures expected at year-end or early next year.
What happened
# SummaryThe committee unanimously approved a grant from the Washington State Department of Commerce for the Bellingham Central Library Interior Renovation Project, voting together with item 24815 as part of the same funding initiative. The combined grants totaled $3 million toward the library project. All committee members voted in favor of approving both grants and related contracts in a single motion.
Additional votes recorded in minutes
Award contract No. 81B-2025 for Old Town Redevelopment Project
Recommend approval of ordinance granting NFC Northwest, LLC a franchise
Accept grant from WA Dept. of Commerce for Central Library Renovation (Contract #26-96647-028)
Accept grant from WA Dept. of Commerce for Central Library Renovation (Contract #26-96647-001)
Verbatim transcript available
61 transcript segments indexed