HomeMy WebLinkAbout1818Resolution No. 1818
(Amending or Repealing Resolutions)
CFN = 1318 -Green R1ver Levee Reconstruction (Howard Hanson Dam)
Passed-11/17/09
Resolution of Support for State Joint Underwriting Assoc. Regarding Business Flood
Insurance Availability
RESOLUTION NO. fF/J g
A RESOLUTION of the City Council of the
City of Kent, Washington, urging the Washmgton
State Legislature to qu1ckly enact legislation
establishing a "Joint Underwntmg Association," to
make supplemental flood Insurance available to
Green R1ver Valley Busmesses.
RECITALS
A. The United States Army Corps of Engmeers ("Corps") has
declared that the reservoir capacity and the associated flood control
capabilities of the Howard Hanson Dam have been d1mmished. As a result,
local communities downstream should plan for the increased nsk for
flooding in the Green R1ver Valley during 2009 and subsequent flood
seasons, until the Corps has completed repa1rs to the dam.
B. Although the floor of the Green River Valley could expenence
flooding, some public comments and med1a coverage have led some
residents and busmesses to assume that winter floodmg IS mev1table rather
a potential nsk. Add1t1onally, federal, state, and local elected officials have
urged citizens and busmess owners to take precautionary steps and to
obtam national flood msurance and supplemental msurance, 1f necessary.
However, the insurance market has been inundated with coverage
1 Resolution of Support for State
Jt Underwriting Assoc. Regarding
Business Flood Insurance Availability
requests, but the threat of flooding has caused the market to dry up or
even w1pe out the availability of 1nsurance for those who do in fact need it.
C. The scarcity of any supplemental insurance is a particular
hardship for hundreds 1f not thousands of Green R1ver Valley businesses.
National flood insurance lim1ts of $500,000 for a bu1ldmg and $500,000 for
its contents are grossly inadequate for many commercial, d1stnbut1on, and
warehousing f1rms that depend on the operation of tens or hundreds of
m1ll1ons of dollars' worth of equipment. This leaves many businesses e1ther
unable to msure the1r operat1ons, subject to dramatically mcreased costs,
or both.
D. For all these reasons, anxiety-ridden businesses are
considering whether to stay in the Green R1ver Valley or even to relocate
their operations outs1de the Valley, which trad1t1onally has been a very
busmess-conducive, business-fnendly place to operate. This growmg
insurance crisis IS begmnmg to threaten the economic underpinnings of the
Green R1ver Valley, which hosts the West Coast's second-largest
warehouse distribution center. It is a d1stnbution lifeline for railroads and
the Ports of Seattle and Tacoma. Its estimated payroll exceeds $8 billion,
and it is a critical employment hub for the Central Puget Sound and the
State of Washington. For these reasons, it IS imperative to establish a
market, as soon as possible, where busmesses can get supplemental
insurance, so that fears and anx1et1es regarding the flood insurance market
can be quelled.
E. The Washmgton State Legislature has the ability to establish a
"Joint Underwnting Association" that can assure the creation of a
supplemental Insurance market. This approach has proven to work
elsewhere in prior years when insurance availability cnses occurred. Given
2 Resolution of Support for State
Jt Underwriting Assoc. Regarding
Business Flood Insurance Availability
the lead t1me it takes to establish a Jomt Underwriting Association in order
to make insurance available to Green River Valley area businesses, the
time for action is now. Therefore, the Kent City Council des1res to adopt
this resolution urging the Washington State Legislature to take immediate
action to establish a Joint Underwntmg Association.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT,
WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS:
RESOLUTION
SECTION 1. -Support Establishment of Joint Underwriting
Association. The Kent City Council strongly supports the legislative
enactment of a "Jomt Underwntmg Association" formed to provide
supplemental flood insurance for Green River Valley busmesses.
SECTION 2. -Urge State Legislative Act1on. The Kent City Council
urges the Governor of the State of Washmgton and the Washington State
Legislature to act in the most exped1t1ous manner poss1ble, in Spec1al
Sess1on if that can be ach1eved, to enact Joint Underwriting Association
legislation that prov1des insurance relief for Valley businesses.
SECTION 3. -Severabi!Jtv. If any section, subsect1on, paragraph,
sentence, clause or phrase of th1s resolution is declared unconstitutional or
invalid for any reason, such dec1sion shall not affect the val1d1ty of the
remainmg port1ons of th1s resolution.
SECTION 4. -Ratification. Any act consistent with the authority
and pnor to the effective date of th1s resolut1on 1s hereby ratified and
affirmed.
3 Resolution of Support for State
Jt Underwriting Assoc. Regarding
Business Flood Insurance Availability
SECTION 5. -Effective Date. Th1s resolut1on shall take effect and
be 1n force Immediately upon 1ts passage.
PASSED at a regular open publ1c meeting by the City Council of the
City of Kent, Washington, this 17 day of November, 2009.
CONCURRED in by the Mayor of the City of Kent this /7 day of
November, 2009.
ATTEST:
APPROVED AS TO FORM:
,y~fM\e~
TOfV1 BRUBAKER, CITY ATTORNEY
I hereby certify that this is a true and correct copy of Resolution No.
ffl ~passed by the City Counc1l of the City of Kent, Washington, the
{1 day of November, 2009.
P•\Civii\Resolutlon\Fiood-JtUnderwrttlngAssocReBnessFioodinsurance doc
4 Resolution of Support for State
Jt Underwriting Assoc. Regarding
Business Flood Insurance Availability