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New insurance policy likely for Pacific

It looks as if the City of Pacific will still be in business come the new year.

City Council members notified residents at a meeting Monday that the City’s insurance broker has indicated that a company is interested in issuing a new policy to the beleaguered city.

Although the price and extent of the coverage is unknown, the council is expected to get details soon and take action when it meets Wednesday.

“I feel pretty hopeful,” Council President Leanne Guier said. “It sounds like we’re going to hang on ... ”

The City’s previous insurance policy through the Cities Insurance Association of Washington (CIAW) will be cancelled, effective Jan. 1.

“On July 2, 2012, the CIAW provided the City of Pacific a letter canceling their membership in the CIAW effective at the end of 2012, due to the instability of Pacific’s government operations,” CIAW Chairman Wes Crago wrote. “In that letter the board stated that it would reconsider its decision if ‘swift, concrete and verifiable deeds’ evidenced a more stable and professional environment with the City of Pacific. One indicated example was the board’s desire to see key staff positions filled by Pacific.”

At the time of the July letter, every department head in the City of Pacific had either resigned or been fired by Mayor Cy Sun.

And although Sun eventually began filling positions at City Hall – including being forced by a civil service commission to reinstate Public Safety Director John Calkins and hiring a city clerk – it was simply too little, too late, according to Crago’s statement.

“No personnel were hired until Oct. 28, 2012, and only then following a court order,” he wrote.

At Monday’s meeting, the council postponed votes on a pair of resolutions – one to put disincorporation of the City before voters, the other to annex into neighboring Auburn until Wednesday.

Although details on the City’s new policy weren’t available yet, Guier said the City was likely to pay more for less coverage.

“What we’re going to get in insurance should be enough to sustain us, just barely,” she said.

Sun was not present at Monday’s meeting, the second consecutive one he has missed. At the Dec. 10 meeting, Sun sent a letter, citing his wife’s nervous breakdown as the reason for his absence.

 

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