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BACKGROUND Resolution 78-207, adopted by the City Council in 1978, authorizes the City Attorney to settle claims in the amount of $5,000 or less. The City's current Purchasing Procedures Manual grants authority to department heads to make purchases in amounts up to $25,000 and to the City Manager for up to $100,000 in certain instances. DISCUSSION The City Attorney is charged with investigating and resolving, when appropriate, government claims before litigation is initiated against the City. The City Attorney's settlement authority has not been formally increased since 1978. Adjusted for inflation, the settlement authority of $5,000 granted in 1978 would now be $17,624. Settlement authority is granted to the City Attorney in order to allow for more expeditious resolution of claims, as quicker adjustment of claims generally leads to settlements at lower amounts and avoids expensive litigation. Government Code section 935.4 authorizes a city council by resolution or ordinance to delegate the authority to resolve government claims in amounts up to $50,000. Staff recommends the City Council authorize the City Attorney to settle government claims in amounts up to $25,000, and the City Attorney, with the advice and consent of the City Manager, to settle government claims in amounts up to $50,000. In addition, consistent with the provisions of Government Code section 949, staff is recommending that with regard to Workers' Compensation claims the City Council authorize: the City Attorney authority to settle amounts up to $50,000, and the City Attorney, with the advice and consent of the City Manager, to settle amounts up to $100,000. As with government claims, the ability to expeditiously resolve Workers' Compensation claims is expected to result in lower settlement amounts and avoid costly litigation. With regard to both types of settlements under the proposed resolution, higher dollar settlements require that the City Attorney obtain the advice and consent of the City Manager before taking action, thereby providing an appropriate accountability safeguard. Submitted by: Fiscal Review: Approve by: Jonathan Lowell Emily Wagner Nelson Fialho City Attorney Finance Director City Manager Attachment: 1. Draft Resolution Regarding Settlement Authority for Government Claims and Workers' Compensation Claims Against the City of Pleasanton Page 2 of 2