HomeMy WebLinkAboutFinance May 26 2026Whatcom County
Council Finance and Administrative Services Committee
COUNTY COURTHOUSE
311 Grand Avenue, Ste #105
Bellingham, WA 98225-4038
(360)778-5010
Committee Minutes - Final
Tuesday, May 26, 2026
11 AM
Hybrid Meeting - Council Chambers
HYBRID MEETING - ADJOURNS BY 12:30 P.M. (PARTICIPATE IN -PERSON, SEE
REMOTE JOIN INSTRUCTIONS AT www.whatcomcounty.us/joinvirtualcouncil, OR
CALL 360.778.5010); AGENDA REVISED 5.22.2026
COUNCILMEMBERS
Elizabeth Boyle
Barry Buchanan
Ben Elenbaas
Kaylee Galloway
Jessica Rienstra
Jon Scanlon
Mark Stremler
CLERK OF THE COUNCIL
Cathy Halka, AICP, CMC
Council Finance and Administrative Committee Minutes - Final May 26, 2026
Services Committee
Call To Order
Roll Call
Committee Chair Jon Scanlon called the meeting to order at 11 a.m. in a
hybrid meeting.
Present: 7 - Elizabeth Boyle, Barry Buchanan, Ben Elenbaas, Kaylee Galloway, Jessica
Rienstra, Jon Scanlon, and Mark Stremler
Announcements
Council "Consent Agenda" Items
Galloway moved to recommend approval of Consent Agenda items one
through 13. The motion was seconded by Boyle.
Galloway flagged items on the Consent Agenda that represent ways the
County is working with others to achieve the priorities of the Justice
Project implementation Plan and broader work around services using
revenues other than the public safety sales tax.
Consent Agenda item number 7 (AB2026-391)
Galloway asked if two actions need to be taken on this item since staff (in
the memo on file) is requesting a separate motion authorizing the Executive
to execute agreements with the property owners that outline the terms of
reimbursement for the elevation of their structures.
Gary Stoyka, Public Works Department, stated he believes it should be two
separate motions and Cathy Halka, Clerk of the Council, concurred. Stoyka
answered what the next steps would be if Council goes forward with that
motion, and stated it allows them to execute the elevations more quickly.
Scanlon stated they could take that motion up under Other Business. He
spoke, in agreement with Galloway's initial comments, about investments
represented on this agenda within our behavioral health systems, criminal
justice systems, public safety, housing, homelessness, flood mitigation, and
our courts. He stated there is a lot of State and Federal money in these
items, as well as partnerships between the County and the cities.
Councilmembers voted on the Consent items (see votes on individual items
below).
1. AB2026-368 Request authorization for the County Executive to enter into a contract between
Whatcom County and EKS Evaluation Consulting to develop a comprehensive
evaluation plan for the five key Response Systems Division programs within Whatcom
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County Health and Community Services, in the amount of $83,150
Galloway moved and Boyle seconded that the Contract be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
2. AB2026-381 Request authorization for the County Executive to enter into an interlocal agreement
between Whatcom County and Bellingham Police Department for a commitment of
funding from the Bellingham Police Department to maintain operations of the
Alternative Response Team Program, in the amount of $688,760
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
3. AB2026-382 Request authorization for the County Executive to enter into an Interlocal agreement
amendment between Whatcom County and Washington State Department of
Commerce to increase funding for the Consolidated Homeless Grant, which supports
the priorities outlined in the Whatcom County Plan to End Homelessness, in the
amount of $1,546,981 for a total amended agreement amount of $20,366,072
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
4. AB2026-385 Request authorization for the County Executive to enter into a contract amendment
between Whatcom County and Washington State Department of Health to provide
funding for various public health programs, in the amount of $57,008 for a total
amended contract amount of $11,286,805
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
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5. AB2026-386 Request authorization for the County Executive to enter into a contract between
Whatcom County and Kulshan Community Land Trust to provide eighteen units of
permanently affordable homeownership units for households earning less than 80%
Area Median Income, in the amount of $394,012.06
Galloway moved and Boyle seconded that the Contract be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
6. AB2026-387 Request authorization for the County Executive to enter into a contract between
Whatcom County and Shea, Carr & Jewell, Inc. dba SCJ Alliance to provide flood
mitigation planning for the City of Sumas, in the amount of $274,981.33 (Council
acting as the Whatcom County Flood Control Zone District Board of Supervisors)
Galloway moved and Boyle seconded that the Contract (FCZDBS) be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
AB2026-391 Request authorization for the County Executive to enter into a grant agreement
between Whatcom County and the Washington State Military Department for the
elevation of sixteen structures in flood -prone areas, in the amount of $4,156,725
(Council acting as the Flood Control Zone District Board of Supervisors)
Galloway moved and Boyle seconded that the Contract (FCZDBS) be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
A SECOND MOTION WAS MADE ON THIS ITEM UNDER OTHER BUSINESS.
8. AB2026-392 Request authorization for the County Executive to enter into a contract amendment
between Whatcom County and Herrera Environmental Consultants to support the
next phase of Lower Nooksack River Floodplain Integrated Planning, in the amount
of $1,250,229 for a total contract amount of $4,248,598 (Council acting as the
Whatcom County Flood Control Zone District Board of Supervisors)
Galloway moved and Boyle seconded that the Contract (FCZDBS) be
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RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
9. AB2026-393 Request authorization for the County Executive to enter into a contract between
Whatcom County and Lake Whatcom Residential Treatment Center to support the
development of 37 units of affordable rentals for adults with behavioral health needs,
including l l units dedicated to Trueblood Class Members, in the amount of
$3,087,940
Galloway moved and Boyle seconded that the Contract be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
10. AB2026-394 Request authorization for the County Executive to enter into an amended agreement
between Whatcom County and the Administrative Office of the Courts for
reimbursement of costs related to water adjudication, in the amended amount of
$2,538,200
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
11. AB2026-397 Request authorization for the County Executive to enter into an interlocal agreement
between Whatcom County and the Washington State Military Department to enhance
security and preparedness for the 2026 International Federation of Association
Football (FIFA) World Cup events, in the amount of $62,963
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
12. AB2026-398 Request authorization for the County Executive to enter into a contract between
Whatcom County and the SeattleFWC26 to enhance security and preparedness for
the 2026 International Federation of Association Football (FIFA) World Cup events,
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in the amount of $97,556
Galloway moved and Boyle seconded that the Contract be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
13. AB2026-401 Request authorization for the County Executive to enter into a contract amendment
between Whatcom County and the City of Bellingham to clarify eligible construction
reimbursement methods for the Bear Creek Corridor Mitigation Bank Project in the
amount of $0, for a total amended contract amount of $1,000,000
Galloway moved and Boyle seconded that the Interlocal be
RECOMMENDED FOR AUTHORIZATION BY CONSENT. The motion
carried by the following vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
Special Presentation
AB2026-399 Presentation from the Western Washington University Small Business Development
Center regarding its services and economic impacts in Whatcom County
CJ Seitz, Western Washington University Small Business Development
Center, presented about projects they are currently working on and what
they do, demographics of the clients they serve, how they measure
economic development when they are reporting to the Federal government,
the broader work that they do in the community, what they do to build
resilience in businesses and the community (such as business recovery after
the 2021 and 2025 floods), and their vision that Whatcom County can be
known nationally as the place to come if you want to innovate and try new
products or expand.
Scanlon thanked the team for everything they do in the community and for
helping people affected by the floods.
Seitz and the following additional Small Business Development Center
team members answered questions:
• Sherri Daymon
• Liliana Deck
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Councilmembers and the speakers discussed how they report on the number
of new clients advised each year, ideas on ways the county can partner with
the center so that the county does not get negative feedback about Whatcom
County not being a good place to do business, how someone thinking of
starting a new business can discover what services the center can provide, at
what stage of starting a business they interact with a client, and how they
might help someone who is not sure of the business type they would like to
start.
This agenda item was PRESENTED.
2. AB2026-400 Presentation by the Executive Office on the Economic Development Investment Fund
and Program
Jake Logan, Executive's Office read from a presentation (on file) on the
Economic Development Investment Program. He stated the EDI program is
under the umbrella of the EDI fund and has an annual allocable amount of
about $4 million in a normal (non -spend -down year). This fund changed to
include housing in 2024-2025 and so affordable housing is now competing
with traditional infrastructure projects and economic development
priorities within the same fund. Last year there was a large fund balance, and
Council and the Administration discussed allocations for infrastructure and
housing, but they were also including Whatcom County's percentage in the
talk of percentages. What was decided was 30 percent going to the County,
30 percent to housing, and 40 percent to other municipalities for
infrastructure or economic development purposes (referred to as
"30/30/40" - See AB2025-303). For 2027, there is $3.9 million after the
County's share and after the amount for recurring obligations and
established programs, and that portion is allocable to the two tracks of
affordable housing and infrastructure. He read from the presentation about
the EDI board's recommendations. The dollar split the EDI Board
recommended was $2.3 million for infrastructure and $1.7 million for
housing. That 57.5 percent and 42.5 percent allocation (as a base of 100)
matches the allocation percentage that was approved last year. He stated the
Executive's Office is planning to continue forward with a 75/25 percent
split, which would mean approximately $3 million each year for
infrastructure and economic development purposes and $1 million for
direct subsidy for affordable housing, though the infrastructure allocation
can be used to support housing.
Councilmembers discussed the presentation with Logan and the following
additional speakers:
• Steve Oliver, County Treasurer
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• Satpal Sidhu, County Executive
• Kayla Schott-Bresler, Executive's Office
Councilmembers and the speakers discussed giving clarity to the allocation
amounts, why the fund balance grew to the size that it did, that a project like
Old Town Urban Village to support housing development would be making
housing possible instead of directly subsidizing it so it could be counted as
part of the 75 percent for infrastructure, that EDI plays a relatively small
roll in the whole housing capital stack and the impact of a higher housing
percentage will cause more harm to the infrastructural side than the help it
would provide, how the $700,000 difference for infrastructure between the
two recommendations will help out our county, that the executive's
proposal could potentially include banking successive years of the
infrastructure side of the fund to be able to make more strategic
investments in major economic development infrastructure projects (such
as the Bell Road overpass in Blaine), that the executive's recommendation
was developed subsequent to the EDI Board's meeting though a 75/25 split
was a motion that was made and not passed, that they could come back to
the discussion in tonight's Council meeting and maybe find a compromise
that would uphold the Council's values toward affordable housing while also
investing in critical infrastructure, and that maybe the board's
recommendation might have been different if they would have seen this
presentation.
This agenda item was PRESENTED.
Committee Discussion
1. AB2026-346 Discussion regarding Council Office budget items for the 2027-2028 Biennial Budget
Scanlon stated the small group they formed worked on this and he asked that
the clerk give an update.
Cathy Halka, Clerk of the Council, stated materials she submitted from the
last meeting on May 12th gave information regarding the 7-10 percent
reduction exercise requested by the Executive's Office. Council appointed
three councilmembers to meet and discuss a proposed list of Additional
Service Requests (ASRs) to identify a percentage and confirm the list.
There is a memo for today with a revised list of ASRs showing which ones
the workgroup landed on for submission. She would like to get final
direction from the Council body on the proposed reduction amount to
submit to the Executive's Office for this exercise and any edits or feedback
on the specific ASRs listed on the second page of the memo.
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Galloway spoke about the sensitive nature of these conversations and that
she sees the reductions as a necessary evil. She spoke about not meeting the
targets without having to significantly impact the wages and benefits section
of the budget, and that they are working on what that might look like, but it
is probably best they reserve any personnel -related decisions until they see
a bigger picture. She spoke about other items on the list and that she wants
to make sure they are understanding the consequences as they make
decisions.
Scanlon moved to request the clerk submit a low 7% and a high 10%
reduction in the council budget for the 2027-2028 biennium.
The motion was seconded by Rienstra.
The motion carried by the following vote:
Aye: 6 - Buchanan, Galloway, Rienstra, Scanlon, Stremler, and Boyle
Nay: 1 - Elenbaas
Scanlon moved to request the clerk submit the ASR list on the "Staff Memo
for 5.26.2026" (on file) for the phase one budget deadline.
The motion was seconded by Rienstra.
Elenbaas stated the dollar amount of our budget has grown substantially but
our staffing levels have not. He spoke about growth in other departments
while the Council Office has just been trying to maintain the status quo to
meet the mandates given to our office. He stated a 7-10 percent cut across
the board in the County is not going to be responsive to the basic function
of what the County needs to accomplish and he would like to push back on
the Executive's Office when it comes to cuts that would pertain to our
ability to serve the needs of the public.
Scanlon stated this is a difficult exercise to go through but he thinks it is
one that they should go through (with their own budget), and then they can
come back in the fall after all the offices and departments have gone
through this process. At that time, they may have updated information
regarding County revenue and expenditures and they can make decisions.
The 7-10 percent exercise sets up that process, and then in the fall, they can
have the discussion about their priorities and how they might approach cuts.
Scanlon amended the motion and moved to maintain the BOE per diem
and to maintain the Sheriff s deputy in the evening (account 6699).
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Halka stated the BOE per diem was not proposed in this memo to be
removed so the motion would be to remove the Sheriff deputy from the
ASR list and include funding for that security at the evening meeting.
Scanlon amended his motion to amend and moved to maintain the Sheriffs
deputy in the evening.
Councilmembers discussed the motion and Halka clarified that the current
ASR list includes eliminating all of the $50,000 for total annual travel for
councilmembers.
The motion carried by the following vote:
Aye: 7 - Elenbaas, Galloway, Rienstra, Scanlon, Stremler, Boyle, and
Buchanan
Nay: 0
Halka stated she will submit the amended ASR list for the May 29th
deadline, then they should hear back on phase 2 of this effort. That phase 2
submittal will then be due in early July.
This agenda item was DISCUSSED AND MOTION(S) APPROVED.
MOTION 1:
Motion approved to request the clerk submit a low 7% and a high 10% reduction in the council budget for the
2027-2028 biennium.
MOTION 2
Motion approved to request the clerk submit the ASR list on the "Staff Memo for 5.26.2026" (on file) for the phase
one budget deadline but to maintain the Sheriff's deputy in the evening (account 6699).
Committee Discussion and Recommendation to Council
1. AB2026-333 Ordinance increasing the Petty Cash Revolving Fund for the Parks and Recreation
Department, in the amount of $500
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
2. AB2026-351 Ordinance amending the project budget for the Austin Court Stormwater
Improvement Project Fund, request no. I
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Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
3. AB2026-353 Ordinance amending the project budget for the North Commercial Street Acquisition,
request no. 1
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
4. AB2026-355 Ordinance amending the project budget for the New Public Health, Safety and Justice
Facility, request no. 11
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
5. AB2026-369 Ordinance amending the 2026 Whatcom County Budget, request no. 8, in the amount
of $8,914,924
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
6. AB2026-373 Resolution amending the 2026 Flood Control Zone District and Subzones Budget,
request no. 3, in the amount of $34,964 (Council acting as the Whatcom County
Flood Control Zone District Board of Supervisors)
Scanlon moved and Galloway seconded that the Resolution (FCZDBS) be
RECOMMENDED FOR APPROVAL. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
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Nay: 0
7. AB2026-374 Ordinance amending the project based budget for the Lummi Nation Ferry Lease
Fund-3901, request no. 1
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
8. AB2026-379 Ordinance amending the project budget for the Central Shop National Pollutant
Discharge Elimination System (NPDES) Stormwater Improvements Project Fund,
request no. 2
Scanlon moved and Galloway seconded that the Ordinance be
RECOMMENDED FOR ADOPTION. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
9. AB2026-402 Resolution appointing the County Treasurer and Finance Director as the county
representatives authorized to designate certain expenditures for reimbursement from
future tax-exempt obligations
Scanlon moved and Galloway seconded that the Resolution be
RECOMMENDED FOR APPROVAL. The motion carried by the following
vote:
Aye: 7 - Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and Stremler
Nay: 0
Items Added by Revision
1. AB2026-418 Request for motion to support modifying the Flood District Fund reserve policy to
allow for levee repairs
Gary Stoyka, Public Works Department, read from the memo (on file). The
Flood Control Zone District Advisory Committee recommended that
Council take the cost share amount from the fund balance in order to stay in
the PL 84-99 program so they are looking for Council direction today to
see if they are in favor of at least proceeding with the repairs and paying for
that out of County funds. They would then do a supplemental budget request
and would present a resolution allowing the fund balance to drop.
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He and councilmembers discussed that the U.S. Army Corps of Engineers is
looking to do the repairs by October, that it makes sense (given that they do
not have decisions yet on the widen -the -corridor project) to be able to
protect people who would be impacted if they do not have the repairs, that
the amount the fund balance would drop below the minimum would only be
$220,000 by the end of the year so they would have slightly less cash to
respond to flood emergencies but not that much less, that they plan on
replenishing the balance in the 2027 budget and the possibility of
permanently amending the 2010 resolution (AB2010-392) that set the
minimum fund balance or just changing it temporarily.
Scanlon moved to support modifying the Flood District Fund reserve
policy to allow for levee repairs.
Jed Holmes, Executive's Office, stated they are just looking for the level of
comfort to give the Army Corps of Engineers the go-ahead so the motion
works to give them confidence to move forward.
The motion was seconded by Rienstra.
Galloway stated she is worried the motion is far too broad and needs to be
limited to these two projects. She also thinks it needs to be clear that this is
a temporary spend -down. She would not be comfortable spending the entire
reserve.
Holmes stated this does not provide budget authority but is signaling the
Council's willingness to use the reserves for this type of work. They would
still have to come back and get the Council's approval.
Scanlon amended his motion and moved to support modifying the Flood
District Fund reserve policy to allow for the Ritter Road and Bylsma Levee
repairs.
Kayla Schott-Bresler, Executive's Office, stated the executive has not
decided yet on the use of banked capacity for the flood fund.
Galloway stated she thinks they need to be thoughtful in the next biennium
about how they are going to get back to the $5 million minimum fund
balance, and she thinks Council needs to seriously consider the use of
banked capacity for the next biennium for this particular budget.
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The motion carried as amended by the following vote:
Aye: 7- Scanlon, Stremler, Boyle, Buchanan, Elenbaas, Galloway, and
Rienstra
Nay: 0
This agenda item was DISCUSSED AND MOTION(S) APPROVED.
Motion approved to support modifying the Flood District Fund reserve policy to allow for the Ritter Road and Bylsma
Levee repairs.
Other Business
(Item from the Consent Agenda)
7. AB2026-391 Request authorization for the County Executive to enter into a grant agreement
between Whatcom County and the Washington State Military Department for the
elevation of sixteen structures in flood -prone areas, in the amount of $4,156,725
(Council acting as the Flood Control Zone District Board of Supervisors)
Councilmembers revisited Consent Agenda item number 7 to make staff s
separate requested motion.
Scanlon moved to authorize the Executive to execute agreements with the
property owners that outline the terms of reimbursement for the elevation
of their structures.
The motion was seconded by Galloway.
The motion carried by the following vote:
Aye: Stremler, Boyle, Buchanan, Elenbaas, Galloway, Rienstra, Scanlon, and
Stremler
Nay: 0
This agenda item was DISCUSSED AND MOTION(S) APPROVED.
Motion approved to authorize the Executive to execute agreements with the property owners that outline the terms of
reimbursement for the elevation of their structures.
Adiournment
The meeting adjourned at 12:34 p.m.
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Jon Scanlon -via email 6/1/2026
Jon Scanlon, Committee Chair
Meeting Minutes Orep ed by Kristi Felbinger
Whatcom County Page 14