City of Pacific saved by new insurer

PACIFIC, Wash. — A city on the brink of shutting down and possibly disbanding has gotten a major reprieve by finding an insurance carrier that will cover the city.

The city of Pacific’s current insurance is set to expire at the end of the year.  Because of turmoil within the city’s government, the insurer said the town was too much of a risk and would be dropping its coverage.

At the time of the insurer’s decision, every department head in the city had either resigned or been fired by controversial Mayor Cy Sun.

Without insurance to cover possible liabilities, the city was forced to consider several options, including possible annexation by the city of Auburn or disincorporation.

After nearly six months and being turned down by at least six companies, the City Council accepted an offer from a new insurer.

The insurance will cost more and the coverage will not be as good, but the new policy will allow the city to survive for at least another year.

There is still a movement to recall Sun that will likely pick up steam now that the town has been saved.

The vote to recall Sun could happen in April.

KIRO