REPORT TO MAYOR AND COUNCIL NO. 99-6 CA

DATE: December 7, 1999

SUBJECT: REVISION TO SUNNYVALE MUNICIPAL CODE SECTION 2.04.030 PERTAINING TO CLAIMS AGAINST THE CITY TO INCREASE CITY MANAGER'S SETTLEMENT AUTHORITY

The City Council has been asked by the Finance Department to increase the authority of the City Manager with regard to a variety of purchase and sales transactions from $35,000 to $50,000. That request is the included in a separate Report to Council appearing on the Council agenda. In the past, the same level of authority granted to the City Manager for purchase and sales transactions has been granted for the settlement of claims and litigation. It is recommended that the authority for settlement be increased, consistent with that for purchase and sales transactions. To increase the authority requires a change to the Municipal Code which is accomplished by ordinance.

When the City adopted a formal risk management program in 1981, the Council established $5,000 as the compromise or settlement amount. In 1984 Council raised the amount to $20,000 to provide greater flexibility and management of the City's self-funded liability program and to be consistent with the award of contracts. In 1990, after the Council increased the City Manager's authority to sign contracts from $20,000 to $35,000, it adopted an ordinance increasing the settlement authority to $35,000 to bring all authority levels into concurrence. Since the Finance Department is recommending that the City Manager's contract authority be increased to $50,000, it is appropriate to increase the authority to settle claims and cases to the same amount. This increase is reflected in the proposed ordinance.

None

Publication of the Agenda.

1. Authorize the increase in settlement authority.

2. Do not authorize the increase in settlement authority.

Alternative 1, authorize the increase in settlement authority by enacting the ordinance making the change.

Valerie J. Armento
City Attorney