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Sunnyside staff to appeal $25,095.38 WCIA compliance penalty after audit communication failures
Summary
City staff told the council they received a $25,095.38 penalty from the Washington Cities Insurance Authority for delayed audit responses; council directed staff to submit a written appeal and to create an administrative delegate email and contact list to prevent recurrence.
Sunnyside City leaders discussed a compliance finding from the Washington Cities Insurance Authority (WCIA) that resulted in a one‑time penalty of $25,095.38 after auditors determined the city had been slow or nonresponsive to multiple requests earlier in the year.
City Manager (Mister Mejia) said staff discovered the issue when the WCIA auditor noted some requested materials had not been acknowledged by the city’s listed delegates. Staff explained that the delegates who had been listed previously were no longer with the city or had inactive email addresses; city staff quickly completed the materials after the audit but WCIA concluded the missed communications warranted a penalty.
Councilors asked what safeguards would prevent a recurrence. Staff said they had updated the delegate list (naming Jackie and Monica as current delegates), were creating an administrative distribution email to ensure continuity across staffing changes, and planned to compile a running list of official delegate contacts for external auditors and insurers. Council indicated support for filing an appeal of the penalty; staff said they had drafted an appeal letter and advised that the city would likely pay the penalty while the appeal is processed and seek reimbursement if WCIA reverses the assessment.
Council members emphasized the cost impact during a tight budget year and characterized the penalty as the consequence of staff nonresponse rather than a systemic program failure; they directed staff to submit the appeal and to implement the recommended process changes.
