City of Bingen response to July 7 public comments regarding flooded downtown businesses

On April 15, a contractor working on a city project struck an eight-inch PVC water main, causing significant flooding. The City’s liability insurance provider, the Association of Washington Cities Risk Management Services Agency, commonly known as RMSA, reviewed the incident, determined that coverage was available, and began managing the resulting claims. Affected business and property owners received claim information within two days.

Initial drying and mitigation work was completed on May 5. However, the repair contractor selected by the affected property and business owners did not submit final repair estimates to RMSA until July 6, more than two months later. This delay in submitting the estimates is the primary reason permanent repairs have not yet begun.

RMSA must receive complete repair estimates before it can review the proposed work and authorize eligible payments. When estimates are revised or additional costs are submitted, RMSA must review the new information before repairs can move forward.

Given that the repair contractor was, and must be, selected and hired by the affected businesses, the city has no authority to direct its work, approve the scope of repairs, nor control its schedule.

Following the July 7 city council meeting, city staff coordinated meetings with the affected businesses, property owner, and RMSA to clarify the status of the repairs and claims. Through these meetings it was shared that since April 30, RMSA has issued nearly $170,000 in lost-wage payments to businesses affected by the flooding. These lost-wage payments are separate from money that will be paid to repair flood damage. The city continues to facilitate communication, answer questions, and help ensure that necessary information reaches the appropriate parties.

Residents have asked why the city cannot provide loans, advance repair funds, or directly pay to reopen the businesses. Washington law strictly prohibits cities from using public funds to pay private business losses or private property repair costs. This restriction is commonly known as the gift-of-public-funds prohibition.

Claims related to this incident are being handled through RMSA’s claims process. RMSA works directly with affected business and property owners to evaluate damages, review repair estimates, and determine eligible payments. The city cannot take control of that process, authorize private repair work, direct a privately selected contractor, or use public funds to pay private claims.

The city shares the community’s frustration and wants these businesses repaired and reopened as quickly as possible. We will continue facilitating communication, requesting timely updates, and providing every form of assistance legally available to us.

The city will provide additional information as the remaining claims and repair approvals move forward. Our shared goal is to see these businesses repaired, reopened, and thriving again as soon as possible.