City of Pacific survives thanks to last minute insurance offer
Dec 26, 2012, 11:01 AM | Updated: Dec 27, 2012, 8:15 am
The financially strapped city of Pacific has secured a new insurance policy at the last minute, seemingly heading off dis-incorporation. (MyNorthwest.com Photo/File)
(MyNorthwest.com Photo/File)
Pacific will stay a city after a last minute offer from an insurance carrier to provide coverage.
The city council voted to approve a new insurance policy at its meeting Wednesday night. The current policy expires at the end of the month and the carrier refused to extend it. The carrier said the 103-year-old city is too much of a risk due to embattled write-in Mayor Cy Sun.
The city council had planned a dis-incorporation vote in February and asked neighboring Auburn to annex it. Both of those plans were put on hold after last night’s vote.
The city has racked up over $11 million in lawsuits, but its current insurance policy has only $10 million in coverage.
Council President Leanne Guier told KIRO Radio the policy is expensive and doesn’t offer great coverage, but it buys the city some time to figure out its future. “I feel like it’s a Christmas miracle that we are going to survive as a city,” Guier said.
For now, it looks like the small town that straddles Pierce and King Counties will stay together, and Guier couldn’t be happier. “We’re going to bring everybody back together, and we’re going to be a community again,” she said.
But what about Mayor Sun? He is happy the city council was able to find new insurance, but he told the gathering he is not going anywhere. “The people voted me to be a mayor and by golly I’m staying-in, and I’m doing exactly what the people voted me in for,” he said.
Mayor Sun is fighting a recall effort in court. If it clears the legal system, a vote would likely happen in April.
