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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Since We Asked Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Homelife Magazine Joy Magazine Readers Choice 2006 Oregon Golf Info Oregon Wine Info Our Valley Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend July 21, 2006 Gold Hill could lose insurance By SANNE SPECHT Mail Tribune GOLD HILL — Ongoing political and operational conflicts have put the city at risk of losing its insurance and potentially its charter, according to the town's insurance representative. "Gold Hill is a very volatile city with a limited budget," insurance agent Chris Becker said. "If Gold Hill loses its ability to remain insured, the city may have to disincorporate and become part of the county." The continued turmoil has become a giant headache City County Insurance Company, Becker said. If the city does not resolve its liability issues, it could be excluded from its pool of municipalities; the pooling system helps provide relatively affordable insurance to small towns, he said. Confrontations at City Council meetings regularly break out among the mayor, council members, city staff and residents in audience. E-mail messages between city officials often are full of accusations and acrimony. In the spring, Council members Donna Silva, Gus Wolf and Jan Fish successfully fought off a recall attempt supported by Mayor Sherry Young, who has announced her resignation, and Councilwoman Kathleen Price. The battlelines are most often drawn around the police department. Silva, Wolf and Fish say they are demanding accountability from Police Chief Dean Muchow. Young and Price say the trio are determined to bring down Muchow and dissolve the police department. The Department of Public Safety Standards and Training and the Department of Government Standards and Practices are investigating 13 allegations against Muchow — including in relation to theft, perjury and "bugging" city offices. Muchow says the allegations are frivolous and unfounded. The allegations were proffered by Wolf and others. Wolf said he contacted the state agencies because of his own concerns, and after receiving citizen and staff complaints. Muchow, formerly police chief in Union, was found innocent in a jury trial after Union County District Attorney Martin Birnbaum charged him with misdemeanors in 2004. In 2005, Birnbaum again filed theft charges against Muchow, but later withdrew them after failing to get a grand jury indictment. Muchow has lawsuits pending against Birnbaum, as well as former and current members of Union's city council. In a hostile e-mail exchange, Price — who is the council's liaison to the police department — said Wolf is making "bad choices," "stupid comments" and "wrong judgments." Wolf responded, calling Price "rabid" and "obtuse." Price also said Fish has made the city a target of a lawsuit from officer Hank Hobart because she checked to see if a citizen complaint against the officer had been forwarded to Oregon State Police. Fish says she reviewed her actions with City Attorney Steve Rich. "I didn't do anything illegal," Fish says. "I was simply checking to see if the chief had done what he had promised to do." Young resigned unexpectedly Thursday morning, stating she no longer was willing to deal with the turmoil and was moving to Grants Pass. Young and City Recorder Mary Goddard met with CCIS risk-management representative Lisa Jacobson several weeks ago to discuss potential raises of the city's insurance premiums from $1,000 to $10,000. The higher deductible was not adopted into the city's 2006-2007 budget, but the matter is still under discussion, Becker said. "The city's insurance has not been canceled," said Becker. "But the rates are under review and it is currently considered to be an underwriting risk." Goddard sent a memo echoing Becker's comments to the council and Young on Tuesday afternoon. Under its union contract with city employees, the city must provide health insurance or it is in violation of the agreement, she wrote. "The corporate office in City County Insurance Services has labeled the City of Gold Hill a high liability for possible lawsuits. If City County Insurance Services feels the governing body cannot subside on the current negative and hostile events, they will not renew with the city," Goddard wrote. Reach reporter Sanne Specht at 776-4497 or e-mail [email protected] . Advertisement s Mail Tribune Home | Local News | Sports | Business | Obituaries | Life | Opinion AP News | Archives | Site Map | Community | Classified Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems California Casinos Men's Clothing Southern Oregon Loans --> GMAT Prep Fundraisers Send Flowers Entertainment Guide --> Casinos Canada Trunks, Footlocker Online Casino Reviews