HomeMy WebLinkAboutRES 4026CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4026
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, URGING THE
WASHINGTON STATE LEGISLATURE TO ACT QUICKLY TO ESTABLISH A
JOINT UNDERWRITING ASSOCIATION TO MAKE SUPPLEMENTAL FLOOD
INSURANCE AVAILABLE TO GREEN RIVER VALLEY BUSINESSES.
WHEREAS, the U.S. Army Corps of Engineers, joined by state and local officials, has
recently notified the public that seepage through the right abutment of the Howard Hanson
Dam will reduce the dam's ability to hold back waters in the event of a severe rainstorm or
flood conditions; and
WHEREAS, these structural problems at the Howard Hanson Dam increase the potential
that floods could occur and flood waters could spill over the top of Green River levees; and
WHEREAS, both media coverage and public comments regarding this issue have created
undue panic and the belief that winter flooding is inevitable rather than at an increased risk;
and
WHEREAS, federal, state, and local elected officials have urged citizens and business
owners to take precautionary steps and to obtain flood insurance; and
WHEREAS, the perception of the increased risk has significantly lessened the availability
of insurance for those who need it; and
WHEREAS, the scarcity of adequate insurance coverage is a hardship for many Green
River Valley area businesses, in that the National Flood Insurance Program limits of five
hundred thousand dollars ($500,000) for a building and five hundred thousand dollars
($500,000) for its contents, are grossly inadequate for commercial, distribution, and
RESOLUTION NO. 4026
warehousing firms that depend on the operation of multi millions of dollars worth of
equipment; and
WHEREAS, this leaves many businesses either unable to insure their operations, subject
to dramatically increased costs, or both; and
WHEREAS, the combined effect of growing flooding fears and a diminishing
supplemental insurance market, has businesses reevaluating their location in the Green River
Valley, or electing not to locate their operations in what has traditionally been a very business-
conducive, business-friendly place to operate; and
WHEREAS, this growing insurance crisis is beginning to threaten the economic
underpinnings of the Green River Valley, which, as the west coast's second largest warehouse
distribution complex, has an estimated payroll in excess of $8 billion, is a distribution lifeline for
railroads and the Ports of Seattle and Tacoma, and is a critical employment hub for the Central
Puget Sound and the State of Washington; and
WHEREAS, there is now a tremendous and urgent need to establish a quick market for
businesses in need of supplemental insurance to obtain such insurance, and further, to temper
the anxieties regarding the flood insurance market; and
WHEREAS, the Washington State Legislature has the ability to establish a joint
underwriting association ("JUA") that can assure the creation of a supplemental insurance
market, which has a history of proven success in prior years when insurance availability crises
impacted contractors and midwives; and
RESOLUTION NO. 4026
WHEREAS, given the lead time it would take to establish a JUA, take administrative
steps to form it, and have insurance available to Green River Valley area businesses, the time
for action is immediate;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
RESOLVE AS FOLLOWS:
SECTION I. The above findings are true and correct in all respects.
SECTION II. The City Council strongly supports action by the Washington State
Legislature to enact legislation that establishes a JUA for Green River Valley area businesses to
tap into for supplemental flood insurance.
SECTION III. The City Council urges the Governor of the State of Washington and the
Washington State Legislature to act in the most expeditious manner possible, perhaps even in
Special Session if that can be achieved, to enact JUA legislation that provides relief for
businesses.
PASSED BY THE CITY COUNCIL this Z3rd day of November , 2009.
Bonnie I. Walton, City Clerk
APPROVED BY THE MAYOR this 23rd day of November ^ 2009.
I
Denis Law, Mayor
RESOLUTION NO. 4026
Approved as to form:
Lawrence J. Warren, City Attorney
RES.1431:ll/16/09:scr
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