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Council approves insurance renewal amid Kester Block transfer plans; approves gift agreement authorization
Summary
Marysville approved its 2025 insurance renewal with EMC and authorized a Kester House gift agreement with limited administrative latitude for final edits amid ongoing negotiations to transfer parts of the Kester Block to a private party.
The Marysville City Council approved the city's 2025 insurance renewal with EMC and moved forward on a gift agreement for the Kester House (part of the Kester Block) while officials continue negotiations and funding arrangements to transfer portions of the property.
Insurance broker Jen Sologic presented the EMC renewal and noted the city's total insured values rose due to inflation in building-material and labor costs. She told the council that the Kester House was revalued by the carrier from a replacement-cost figure of $11,000,000 to an actual-cash-value figure of $6,000,000, and that the policy had been moved from replacement cost to actual cash value for that building. The change reduced the premium on the Kester Block line.
Council members discussed the difference between replacement cost and actual-cash-value coverage and the risk that an ACV policy would not provide sufficient funds to fully rebuild if the building were destroyed. Staff said the city expects to transfer the Kester House to an outside entity (referred to in the meeting as Tyler and funding via MIH and CDBG sources), at which point the city would seek a prorated premium reduction and remove that building from the city's policy. EMC representatives have said they are moving away from insuring historic buildings; the change reflected a compromise to keep coverage in place while the transfer proceeds.
Separately, the council approved a motion to authorize the Kester House gift agreement and quick-claim deed with the museum foundation, giving the city administrator limited authority to make minor, non-substantive changes requested by the foundation or its counsel. Council members said that if any major changes are required, the item will return to council for approval. The council also approved a sewer easement related to the museum property to preserve the city's existing sanitary infrastructure.
Ending: Staff said they will prorate insurance coverage when the Kester House transfer occurs and will complete final legal reviews on the gift agreement and easement; the council approved the motions and asked staff to return any major contract changes to the council for approval.
