Add $175,000 To Sun's Damage

Former city clerk Jane Montgomery has settled her claim against the City of Pacific for $175,000. $25,000 of that was paid by the city and $150,000 paid by the insurance company. That payment included any costs for Montgomery's attorney.

Montgomery expressed sorrow that things ended this way. She felt she had done her job to the best of her ability and only tried to advise Mayor Sun on his legal obligations to the city. She said the insurance company acknowledged they advised Sun not to fire her, but they were ignored.

Although Montgomery could have gone to trial and sued Mayor Sun personally (since he acted on his own against legal advice) - and likely won a much higher settlement - she said this was the best outcome for all involved. She wishes the City of Pacific only good things for the future.

Saved, For Now

As expected, the city council approved new insurance coverage last night. The new coverage provides about half the liability coverage of the last policy for about $100,000 more in cost, all directly due to Mayor Cy Sun's actions.

Now its time to focus on moving the recall forward as quickly as possible. Unlike Mayor Sun, the recall campaign follows the law and limits contributions to $900 per person or entity. Because Sun has appealed the recall to the State Supreme Court, the legal costs have increased significantly. We need your help TODAY. Please donate at the Columbia Bank at 12th & A Street or contact us at recallcy@gmail.com. Thank you!

Vote On New Insurance Scheduled Tonight

The city council will vote on an offer for insurance from a new carrier at a special meeting tonight. News reports quote council president Leanne Guier as stating it is less coverage for more money, but it gives the city breathing room. It also means the recall effort to remove Mayor Cy Sun can move forward.

The regular council meeting begins at 6:30pm tonight. The meeting agenda is available via this link. KING 5 should run at story at 5pm tonight on the issue.

City Saved - For Now

The council and new city clerk announced at the council meeting tonight that the city has found new (but more expensive) insurance for the city. The coverage can begin January 1st and would cover 2013. The News Tribune has more details here...

This means the recall effort can continue, with a hearing scheduled before the State Supreme Court soon. Your donations are very important if we are to continue this fight. Email us at recallcy@gmail.com for more details.

Congressman Reichert Weights In

When the new congressional district boundaries take effect January 1, 2013 Pacific will be located within the district of Congressman Dave Reichert. But the congressman is already busy working on behalf of our citizens.

Reichert sent a letter on Friday to Pacific's insurance carrier (copy here), asking them to grant a 6 month extension on the city's liability insurance. The extension would allow us time to recall Mayor Sun or dis-incorporate or be absorbed by neighboring cities, depending on what the residents and city council decide. If the insurance coverage ends as scheduled in 21 days, city functions will immediately stop - which Reichert correctly describes as disastrous.

Hail Mary Pass Thrown

In what some have dubbed a 'Hail Mary Pass", the Pacific City Council met briefly last night to pass the resolution below.The city is requesting help finding and funding insurance from anyone they can think to ask. Council President Leanne Guier was even authorized to send this request to anyone else she finds that may be able to help.

We need to remember the sole reason we are faced with this crisis is because of the actions of Mayor Cy Sun. He may be sincere, but he is unwilling to learn how to effectively govern. We deeply respect his service to our country as a war veteran, but Pacific is not a battlefield filled with enemies to kill. We are people who want to live in peace and raise our children in security.

Even though the council has agreed to fill three of the seven critical vacancies finally brought forward by the mayor, the crisis is far from over. The mayor has created a harsh,unstable working environment. It is challenging to attract any qualified applicants right now, or for Mayor Sun to agree to hire qualified people. We are nowhere close to ensuring we have satisfied the insurance company and the city will have coverage on January 1, 2013.

In the midst of the crisis, Cy Sun has chosen to spend precious time and energy to fight the recall petition and delay a vote - despite stating he would welcome the voter's decision. His decision to fight the recall rather than focus on governing this city speaks volumes about his true motives. Remember why we are in this crisis and who is responsible. And then help us restore sanity to this city while there is still time. Email us a recallcy@gmail.com if you want to help.

January 1, 2013 In Pacific

Pacific police disbanded, senior and youth services cease to exist, water and sewer assets are surrendered to some unknown entity, municipal court disbanded - this is an outline of the stark reality our city leaders are facing in just 10 short weeks. The Pacific council is doing all they can to save our city. They have been working with the city's insurance company, trying to find solutions. They have explored other insurance companies but not found an answer yet.

In what must be one of the most heart-wrenching tasks imaginable, the council has begun to prepare for the loss insurance on January 1, 2013. This is new territory. The council has asked for help from MRSC, the state resource for municipal governments. Even after weeks of research, no one is completely sure what Pacific will look like with no insurance. This spreadsheet is a work-in-progress, but represents what will happen very soon unless there is a drastic change in course.

The council president will meet with the insurance company, the city attorney and the mayor this Thursday to plead for more time or to find some other solution. Given the impact of insurance loss listed above, we hope some agreement can be reached.

The council will hold a special meeting on October 29th at 6:30pm to discuss dis-incorporation. Please attend if you can. We believe public comment will be allowed.

$9 Million More Claimed

KING 5 is reporting that an additional $9 million in damages have been filed against the city today, bringing the damage total to over $11 million claimed by current or former employees. All damages are directed at Mayor Cy Sun. Former mayor Rich Hildreth has also filed a claim alleging that Sun used city resources to publish false information about him.

The current insurance coverage is capped at $10 million. It is unclear who bears the liability if that coverage is exceeded. Elected officials? City employees? Does Mayor Sun bear the sole liability? And how can the city have any hope of getting an extension on their current policy - or finding a new insurance company willing to insure the city - while Cy Sun is mayor? Mayor Sun should be held accountable for all these issues (and so much more).

You can read the full story here... If you are the praying type, now would be a good time to pray for our city...

Last Night's Council Meeting Highlights

The council meeting on Monday night began with Mayor Sun announcing that he can no longer chair the council meetings as required by law. He claimed he was being discriminated against because of his hearing impairment. Sun had picked Council Member James McMahon to conduct the meetings on his behalf, but council rules require that the mayor pro-tem (already predetermined by the council) take over when the mayor is not available. Sun said he would be in his office if needed and left the meeting. He was seen leaving the building a short time later. Mayor pro-tem Council Member John Jones took over the meeting.

During public comment Gary Van Hee congratulated the council on their courage and for filing the Writ of Mandamus. He hoped the move plays out in a positive way for the city.

Council Member Josh Putnam noted they are finally caught up with the financial statements through July. Jeanne Fancher asked for clarification about a rumor that $10 million in city funds had been lost and then found. Putman explained there was a mistake on how the money was coded in the budget. The state determines the codes and they are always changing them, so it can be hard to stay current.

Lt. Massey reported that the mayor has authorized the replacement of one officer and the recently retired evidence technician, leaving one patrol officer position still vacant. The department started a background check on an applicant for the officer and they have scheduled an oral board review for the evidence technician position.

Council Member Steiger expressed concern that the mayor wants to hire people to fill his proposed new positions, like a city administrator. He felt the mayor should fill the jobs based on current job descriptions, not try to fill proposed jobs. The council considered a motion recommending the mayor only hire for existing openings, not proposed ones. Putnam wanted to change the wording on the motion to a more positive tone. Steigner felt that being nice had not gotten the city anywhere and he felt it was time to stand up and take a strong stand. Guier felt the writ of mandate was a strong stand. The vote on the motion tied.

Council Member Gier was concerned about if/when next year’s budget would be proposed, which is due from the mayor to the council by October 1^st.

Putnam announced that the city’s insurance renewal date was September 1^st. The insurance company had allowed the city to renew the policy only until December 31^st at a higher rate.

Washington Survey and Ratings Bureau (WSRB) had contacted Pacific’s building inspector earlier this year. WSRB rates cities for insurance companies. Their ratings determine the cost for homeowner and other insurance within the city. When the building inspector (who is out on medical/stress leave) did not respond, WSRB sent the inquiry directly to the mayor. When Sun did not respond, WSRB started the process to change Pacific’s rating from a 3 to a 99, which would have made it impossible for anyone to get insurance within the city limits.

The city attorney happened to come across a letter from WSRB, which he handed over to Sound Inspections (who the mayor has been using for building inspections without authorization from the council). Sound Inspections owner Frank Mellas explained how he was able to intervene with WSRB and convince them to not change the rating for Pacific.

The council then debated paying the outstanding bill from Sound Inspections, with concern on one hand about not rewarding the mayor's improper actions and wanting to pay this contractor who had just done such a good thing for the city. The motion to pay the bill passed by a 4-2 vote.

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.

Insurance Canceled (Again)

When Mayor Sun's good friend Howard Erickson was mayor the city's insurance was canceled, sending the council scrambling for a new policy at a higher cost. Sound familiar? Vital insurance coverage is once again scheduled for cancellation. There are only a few insurance carriers with policies to cover cities. Is there even a third carrier available to choose from? More importantly, would they be willing to risk covering the city under the current conditions? If so, at what cost?