Cities Insurance Association of Washington (CIAW) Chairman Wes Crago has released the following statement regarding the denial of the City of Pacific’s request for and extension of their insurance

“The Board of Directors of the Cities Insurance Association of Washington (CIAW) met via teleconference at 2:00 p.m. on Monday, December 10, 2012. Among the items on the agenda was a request from the City of Pacific that the Board consider extending the cancellation date of the City’s insurance. During the meeting, as Board chairman, I asked twice for a motion to extend coverage to Pacific for an additional 60-days. There was no motion made. Therefore, Pacific’s membership in the CIAW will be terminated at midnight December 31, 2012.

“On July 2, 2012, the CIAW provided the City of Pacific a letter canceling their membership in the CIAW effective at the end of 2012, due to the instability of Pacific’s government operations. In that letter, the Board stated that it would reconsider its decision if “swift, concrete, and verifiable deeds” evidenced a more stable and professional environment within the City of Pacific. One indicated example was the Board’s desire to see key staff positions filled by Pacific. However, no personnel were hired until October 28, 2012, and only then following a court order.

“The CIAW Board has not asked for Mayor Sun to resign. We have never asked for such a thing from any member.  That is a matter for the City of Pacific to consider. The Board merely asked to be informed if there were changes in the executive leadership of the City of Pacific. Our desire to be informed has been misconstrued by some as a condition for reconsideration.

“The CIAW Board is responsible for the welfare of 246 members, including cities, fire districts, and special-purpose entities. The Board will gladly welcome the City of Pacific back to our pool if the government operations stabilize and city leadership can work together to appropriately manage and minimize risk.”