Othello to pay more for insurance

Council seeks explanation

OTHELLO — The insurance payment for the City of Othello was higher than council expected.

Councilmember Marc Spohr acknowledged he was unhappy with the increase in the payment to Washington Cities Insurance Authority. The $141,668 payment due by Jan. 3 increased by about $18,000, he said.

"To me this has not gone as planned," he said.

City Administrator Ehman Sheldon explained the annual payment went up because the assessed value of the city inventory went from $11 million to $16 million. It increased to cover other liabilities unforeseen by the previous insurance carrier, such as additional coverage for a city water well and accidents caused by city stoplight failures.

"We were underinsured previously," he said. "I feel confident we are covered where we need to be covered."

The council voted to determine if they would pay the insurance sum on time to continue service with the carrier or to hold off to find out specific reasons for the increase. The city faced a late fee of about $9,000 if they did not comply with the deadline.

With a 5-1 vote the council approved to pay the sum on time. Spohr voted against making the payment opting, to pay the late fee.

"There's all these things they could have seen to give a more accurate quote," he said.

Councilmember Kathy Carlton said if she had a personal insurance carrier who increased the rates after the quote, she would look for a new carrier.

Mayor Shannon McKay said the insurance payment would have gone up with any other carrier because there is more liability to cover.

Council agreed to request a representative to come to the next council meeting to discuss where the increase came from and see how the payment could be reduced.