Council looks at insurance and its connection to hearing examiner

A representative of the Washington Cities Insurance Authority, an insurance pool that Anacortes is a member of, outlined just what they do and answered questions from the City Council Monday night.

Lisa Roberts, the WCIA Risk Services Manager, told the Council that the WCIS is not requiring the city to move to a hearing examiner system to handle some land use change requests, but she indicated that the city's insurance premium could increase without a hearing examiner. She said the members of the insurance pool are becoming concerned over the increasing cost of defending land use changes.

Roberts described the case of Burien, that had to defend itself from a series of lawsuits when development of a 200-unit condo development stalled after residents near the site raised environmental concerns. A jury decided that Burien officials illegally drag out negotiations with Westmark, who contended that the city just didn't want apartment dwellers in the city. Eventually, $13.9 million was paid to settle claims by the developer, Westmark.

Roberts said, "We prefer the City Council to be out of the picture" when it comes to quasi-judicial duties, such as land use change requests. And, it was the WCIA's recommendation during a 2009 audit of Anacortes that started the ball rolling on moving to a hearing examiner.

She made it clear, though, that "We're not going to refuse to insure you befcuase you don't use a hearing examiner." She said there's been a lot of talk among WCIA's directors over what to do about increasing costs related to land use. She said "We may raise deductibles for cities that go one way, rather than another."

City Planning Director Ryan Larsen invited Roberts to come to Monday's City Council meeting to answer questions Council members had. The issue of moving to a hearing examiner has raised objections by some residents, who say the Planning Commission and Council are better suited to decide land use issues.

The hearing examiner code changes are currently before the Planning Commission, which may continue their discussion at their next meeting on Wednesday, Jan. 26.