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Settlement Authority Resolution Copyrighted May 1, 2017 City of Dubuque Action Items # 4. ITEM TITLE: Settlement Authority SUMMARY: City Attorney recommending approval of a resolution which will formally grant authority for settlement of certain claims to the City Manager and City Attorney. RESOLUTION Authorizing the City Manager and the City Attorney to settle claims against the City SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s) ATTACHMENTS: Description Type Staff Memo - Updated Staff Memo Resolution - Updated Resolutions HE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi CRENNA M . BRUMWELL , ESQ. CITY ATTORNEY To: Mayor Roy D. Buol and Members of the City Council DATE: April 19, 2017 RE: Settlement Authority for City Manager and City Attorney The purpose of this memorandum is to ask the Mayor and City Council to clarify the authority of the City Manager and the City Attorney to settle claims against the City. Some time ago, the City Council authorized the City Manager to settle claims against the City where the amount of the settlement was $20,000 or less. We are unable to find any written evidence of that authority, and in fact it may not have been in writing. As a result, we are asking the City Council to approve the attached resolution which will formally grant authority for the settlement of certain claims to the City Manager and also to the City Attorney. The resolution authorizes the City Manager to settle claims where the amount of the settlement is $20,000 or less, and all workers' compensation claims. The City's contract with the Iowa Communities Assurance Pool provides that if ICAP recommends settlement of a claim, if the City does not consent to the settlement, the City is liable for any amount recovered by the claimant in excess of the recommended settlement amount. The resolution allows the City Manager to make the decision whether or not to consent to the settlement where the recommended settlement is $20,000 or less. Even where the claim is not covered by the ICAP contract, the City Manager would have the authority to settle such claims. The City Attorney's Office handles relatively minor claims on a daily basis. Settlement of these claims is typically made by ICAP without the need for formal City Council approval. The resolution will formally authorize the City Attorney to approve claims for $10,000 or less. All other claims not within the scope of the resolution would require formal City Council approval of a settlement. 1 Consistent with the Public Records Act, the resolution requires that when the City Manager or the City Attorney reach a final, binding, written settlement agreement, the City Manager or the City Attorney shall, upon request and to the extent allowed under applicable law, prepare a brief summary of the resolution of the dispute indicating the identity of the parties involved, the nature of the dispute, and the terms of the settlement, including any payments made by or on behalf of the government body and any actions to be taken by the government body. The City Manager or the City Attorney are not required to prepare a summary if the settlement agreement includes the information required to be included in the summary. The settlement agreement and any required summary shall be a public record. CMB:tls Attachment cc: Michael C. Van Milligen, City Manager Barry A. Lindahl, Senior Counsel Jenny Larson, Budget Director Alexis Steger, Senior Budget Analyst F:\Users\isteckle\Brumwell\Memos\MayorCou ncil_Auth orizin gCityMn gr&CityAttorneyToSettleClaims_041917Revised.doc 2 Prepared by: Barry A. Lindahl, Esq. 300 Main Street Suite 330, Dubuque IA 52001 563 583-4113 RESOLUTION NO. 167-17 AUTHORIZING THE CITY MANAGER AND THE CITY ATTORNEY TO SETTLE CLAIMS AGAINST THE CITY NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA: Section 1. The City Manager is authorized to settle claims against the City where the amount of the settlement is $20,000 or less, and all workers' compensation claims. Section 2. The City Attorney is authorized to settle claims against the City where the amount of the settlement is $10,000 or less. Section 3. When the City Manager, or the City Attorney reach a final, binding, written settlement agreement, the City Manager or the City Attorney shall, upon request and to the extent allowed under applicable law, prepare a brief summary of the resolution of the dispute indicating the identity of the parties involved, the nature of the dispute, and the terms of the settlement, including any payments made by or on behalf of the government body and any actions to be taken by the government body. The City Manager or the City Attorney are not required to prepare a summary if the settlement agreement includes the information required to be included in the summary. The settlement agreement and any required summary shall be a public record. Passed, approved and adopted this 1st day o May, 2017. Roy D. BuMayor Attest: Kevn S. Firnstahl, pity C erk F:\Users\tsteckle\Lindahl\Resolutions\AuthorizingCityManager&CityAttorneyToSettleClaims_042817.docx