REPORT Special Council Committee to Study and Make Recommendations on Disincorporation City Council of the City of Pacific Committee

Members: Councilmember Leanne Guier, Councilmember Joshua Putnam, and Councilmember James McMahan The Special Council Committee to Study and Make Recommendations on Disincorporation (Committee) has, to the extent possible, studied the options available to the City of Pacific pending cancellation of its liability insurance on December 31, 2012. In attempting to identify the most reasonable and responsible solution for the City and its residents, the Committee has attempted to prioritize the possible resolutions of this difficult situation. The Committee has provided below a chart identifying four possible options for the City to select from, and provided the known timelines for action and the Committees recommendation on how preferable each option is, considering the impact to the residents of Pacific. The Committee makes special note that, based on information available to the Committee, operating as a City without proper liability insurance should be an absolute last resort. The Committee has prioritized all other options as more preferable and implores the City to take action to avoid this scenario. OPTION Secure new or extended insurance beyond January 1, 2013 (assume at least three months extension). Consolidate into another City (Sumner, Auburn, Algona, Milton, or Edgewood). Disincorporation TIMELINE Would need to be secured by December 14, 2012 for Council to take action on December 17, 2012 to nullify the disincorporation resolution and/or cease consolidation discussions/action. Would need action taken by Pacific Council on December 17, 2012. Would need action taken by Council on November 13, 2012 to place measure on February 12, 2013 ballot. Council resolution would need to be submitted to King and Pierce elections by December 28, 2012. N/A -ENDRECOMMENDATION #1 Preferred Option

#2- Becomes preferred option only if insurance is not secured, effective January 1, 2013. #3- Last responsible option if insurance is not secured and consolidation is not feasible. Not recommended. Use only if no other options are successful.

Do nothing, continue to operate as a City without insurance as of January 1, 2013.

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