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Real Briefings

Public Works and Natural Resources Committee

BEL-PWN-2024-09-16 September 16, 2024 Public Works Committee City of Bellingham 28 min
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The Public Works and Natural Resources Committee received a comprehensive update on the City's Bellingham Wetland Mitigation Bank project, an eight-year effort to create an alternative to traditional wetland mitigation. The mitigation bank would allow developers to purchase credits for unavoidable wetland impacts rather than conducting individual mitigation projects, which have historically resulted in high failure rates and ecological inefficiency. The presentation detailed the complex federal and state approval process, which involves submitting 12-15 technical documents sequentially through an Interagency Review Team led by the Washington Department of Ecology and U.S. Army Corps of Engineers. The City is currently at year eight of what is typically a 5-10 year approval process, having recently received a Whatcom County major project permit and EDI grant for construction. Staff indicated they are nearing completion of the technical submittal phase and plan to return to Council in the first quarter of 2025 with a proposed enabling ordinance. This ordinance would establish how the City operates and manages the bank, including credit pricing and allocation decisions. The bank aims to serve both public and private developers within the service area, with the City's projected usage being less than 50% of total credits.

No formal votes were taken as this was an information-only presentation. The committee received the update and discussed the project's status and timeline for future Council action in early 2025 re…

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The mitigation bank represents a significant shift from traditional "permittee-responsible" mitigation, where individual developers complete their own small mitigation projects to compensate for wetland impacts. As Habitat and Restoration Manager Analiese Burns explained, "Traditional mitigation results in high rates of site failure, low ecological value for the watersheds in our community, inefficient land use, and it results in delays of development projects." The bank consolidates mitigation into larger, more meaningful restoration projects while addressing what's called "temporal loss" – the gap between when environmental damage occurs and when mitigation is completed. As Burns noted, "For a bank, you have to build the improvements on the ground and prove that they're working before you can get a credit for sale. So the impact happens after you've already had that ecological lift." Council members explored the rela…
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No public testimony was provided as this was a committee meeting without a public comment period. Staff presented a unified position supporting the mitigation bank as an improvement over current pract…
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**Analiese Burns, on traditional mitigation failures:** "Traditional mitigation results in high rates of site failure, low ecological value for the watersheds in our community, inefficient land use, and it results in delays of development projects." **Analiese Burns, on temporal loss benefits:** "For a bank, you have to build the improvements on the ground and prove that they're working before you can get a credit for sale. So the impact happens after you've already had that ecological lift, …
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First quarter 2025: Staff will return to Council with a draft mitigation bank enabling ordinance covering bank operations, credit pricing, and management decisions. Following enabling ordinance approval: City will submit the basic agreement to complete the Mitigation Banking Instrument (MBI) process. Timeline TBD: Final signi…

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After eight years of technical document preparation, the City has moved from the submittal phase to the final approval phase of creating the wetland mitigation bank. The project received Whatcom County major project permits and an EDI grant in 2024, advancing toward construction capability. Council gained detailed understanding of the bank's operational structure and their upcoming role in establishing the enabling ordinance, which will determi…
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## Meeting Overview On a quiet Monday afternoon in September, Bellingham's Public Works and Natural Resources Committee convened for what would prove to be a detailed technical briefing on one of the city's most complex and long-running environmental initiatives. Committee chair Hannah Stone was joined by fellow committee members Lisa Anderson and Michael Lilliquist, though the full council was present for this important update on the Bellingham Wetland Mitigation Bank — a project eight years in the making that represents the city's ambitious effort to revolutionize how development impacts to wetlands and streams are addressed. The meeting was both a status report and a preparation session, as staff laid the groundwork for significant council action expected in early 2025. What unfolded was a deep dive into the labyrinthine world of environmental regulation, where federal and state bureaucracy meets local innovation, and where a seemingly simple goal — creating a more effective way to protect and restore wetlands — requires navigating a approval process that can stretch nearly a decade. ## The Eight-Year Journey Through Regulatory Complexity Anneliese Burns, the city's habitat and restoration manager, took the lead in explaining where Bellingham stands in its mitigation bank development. Her presentation revealed the staggering complexity of a process that began with council direction in 2016 and has involved property acquisitions totaling millions of dollars, countless technical reports, and a seemingly endless series of regulatory submissions. "We're sitting at year eight," Burns explained to the committee, "and where we're headed toward is signing the MBI and beginning the bank operations and sales." The MBI — Mitigation Banking Instrument — is the formal interagency agreement that will govern how the bank operates, and it represents the culmination of what Burns described as "quite a lot…
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### Meeting Overview The Public Works and Natural Resources Committee met on September 16, 2024, to receive an update on the Bellingham Wetland Mitigation Bank. The meeting focused on the city's eight-year effort to create an alternative mitigation option for developers while improving ecological outcomes and addressing regulatory requirements. ### Key Terms and Concepts **Mitigation Bank:** A physical site where wetlands and streams are restored, enhanced, or preserved, generating credits that can offset permitted impacts from development projects. **Mitigation Banking Instrument (MBI):** The formal interagency agreement between the city, state Department of Ecology, and U.S. Army Corps of Engineers that governs how the bank operates and releases credits. **Permittee-Responsible Mitigation:** Traditional approach where individual developers complete their own small mitigation projects, which has high failure rates and project delays. **Interagency Review Team (IRT):** Federal and state agencies led by Washington Department of Ecology and U.S. Army Corps of Engineers that oversee the bank approval process. **Mitigation Sequencing:** Required regulatory process where developers must first avoid and minimize impacts before mitigating for unavoidable wetland and stream impacts. **Service Area:** Geographic boundary within which developers can purchase credits from the mitigation bank to offset their project impacts. **Temporal Loss:** The ecological function gap that occurs between when an impact happens and when mitigation is established and functioning. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Hannah Stone | Committee Chair | | Lisa Anderson | Committee Member | | Michael Lilliquist | Committee Member | | Joel Pfundt | Interim Public Works Director | | Analiese Burns | Habitat and Restoration Manager | | Rene Lacroix | Assistant Director of Natural Resources | ### Background Con…
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