Pacific residents learned Monday that the city won’t get the insurance extension on which its future may hang.
Meanwhile, other entities took steps to offer emergency services to the area as a last resort.
Pacific’s insurance provider said Monday that it would not grant the three- to six-month extension the council requested, but would like to be notified if executive leadership of the city changes.
Sun did not attend the council meeting Monday.
The Pacific City Council postponed until Dec. 17 a vote on whether to proceed with annexation by Auburn as a last resort if the insurance provider makes good on its threat to end coverage by the end of the year.
A letter from the provider to the city in July said coverage would end if the situation in Pacific did not stabilize. Sun was court-ordered in September to replace seven employees he fired or who resigned under his tenure. That included the city clerk, in whose office Sun was arrested while trying to enter in July. Some residents have launched a campaign to recall the mayor.
The council is trying to work with a broker to find other insurance options but hasn’t had any offers yet, Council President Leanne Guier said. It postponed the annexation vote in the hopes of receiving some insurance offers before then, she said.
The city is also looking at the possibility of disincorporation.
Guier has said she hopes neither of those will be necessary, but that the council has to be ready. If city employees continued to work without the insurance, they could be personally liable while on the job, she has said.
If Pacific passes the resolution Dec. 17, the next step toward annexation would be for Auburn’s City Council to vote to proceed.
Auburn officials discussed the issue last week. Mayor Pete Lewis said a big unknown is who would cover the cost of providing services to Pacific. Based on Auburn’s estimates, it would cost $5.5 million annually. Pacific has only $3 million in its general fund.
“I think that everybody agrees that nobody has any money at this time,” Lewis said. “I cannot recommend to my council that Auburn citizens pay for annexation.”
Whatever happens, Pacific shouldn’t be divided, Lewis said. The City of Sumner passed a resolution last week saying it would be willing to take the Pierce County portion of the city.
Much of Pacific’s business is done on the Pierce County side. Fewer than 100 of the city’s residents live there, compared to about 6,500 on the King County side, but Lewis said the section accounts for about 75 percent of Pacific’s sales tax revenue.
“There needs to be an understanding that you don’t cherry-pick an unincorporated city,” Lewis said.
Both Pierce and King counties took steps Monday to offer their assistance should Pacific lose insurance as of Jan. 1.
The Pierce County Council moved forward with an interlocal agreement to provide road and surface water services to the Pierce County portion of the city. The full council is set to vote on the measure today.
By law, the sheriff’s department would be required to provide 911 services and to respond to major crimes.
The King County Council passed an interlocal agreement Monday to provide Pacific’s King County residents 911, major crime investigation, patrol, flooding and emergency road repair services.
Both agreements direct the city to pay for those services, which Guier said would be done with the city’s existing funds.
Resident Katie Garberding said Pacific’s police department would be the biggest loss if the city loses insurance.
“Most of the officers have the respect of the teenagers, and that’s rare in any city,” she said.
Alexis Krell: 253-597-8688
alexis.krell@thenewstribune.com
CORRECTION
An earlier version of this story said Pacific's insurance provider would reconsider coverage if Mayor Cy Sun resigns. The provider specifically told the council that it would like to be notified of any changes to executive leadership of the city.
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