What Happens If Pacific Loses Insurance

This explanation is making its way around Facebook from Pacific Councilmember Josh Putman about the very serious jeopardy the city faces unless there is a major change of direction very, very soon:

Many people have recently been discussing alternatives for the future of Pacific. If we continue on our current course and the City loses insurance December 31, what do you want to see next?

If if we lose our insurance, chances are good there won’t be a functioning City Council come January – without insurance, elected officials can be personally liable for claims against the City; I’m pretty sure I won’t be the only one to resign rather than put my family at that risk. Until we could find a new Council of people willing to put their homes and retirements on the line, no City checks could issue, no contracts could be approved, no City codes or policies could be changed. The next steps really would be up to Pacific residents, not Council or the Mayor.

Failed City: If we do nothing, the City doesn’t simply disappear. A “failed city” needs to go two full years before the State Auditor can pursue involuntary disincorporation. (RCW 35.07.230) King County could try to appoint the seeds of a new Council if the entire Council resigned, but again, they'd have to find qualified Pacific residents willing to accept personal liability for an uninsured city facing a series of expensive claims.

Disincorporation: This would be the easiest approach for residents to take, but it’s still not quick or easy. Getting it started requires signatures of a majority of registered voters, or a resolution of the City Council authorizing an election on the issue. If the City disincorporates, voters would elect a receiver to pay off the City’s obligations by auctioning off the City’s real estate and other assets.

Annexation: Many people have suggested annexation to Auburn would provide Pacific with stable local government and better local services. Auburns higher property taxes do allow more funding for infrastructure , and a larger voting population makes it harder to have the wild factional swings we’ve seen here in Pacific. But annexation is a longer process, and I don’t know anyone who is prepared to shepherd an annexation through the Boundary Review Board, or run a campaign to get voter approval. It seems extremely unlikely that anyone could start an annexation drive today and have it approved by December 31, so supporters of annexation should consider what short-term alternative they prefer, a failed city or disincorporation.