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HomeMy WebLinkAbout08138ORDINANCE NO. 8138 AN ORDINANCE AMENDING SECTION 1 -5 -8 OF CHAPTER 5 OF TITLE I OF THE PUEBLO MUNICIPAL CODE, RELATING TO THE AUTHORITY OF CITY OFFICIALS TO SETTLE CLAIMS, ACTIONS, AND OTHER DISPUTED MATTERS BE IT ORDAINED BY THE CITY COUNCIL OR THE CITY OF PUEBLO, that: (brackets indicate matter being deleted; underscoring indicates new matter being added.) SFrTinN 1 Section 8 of Chapter 5 of Title I of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 1 -5 -8. Settlement of claims. The [City Attorney] following City officials shall have authority [power] to adjust, settle, compromise or submit to arbitration any action, causes of action, accounts, debts, claims, demands, disputes and matters in favor of or against the City or in which the City is concerned as debtor or creditor, now existing or which may hereafter arise, in the amounts as set forth below, provided that funds sufficient to settle same have been appropriated in an account therefor and an unexpended balance exists therein: [not involving or requiring payment to exceed one thousand dollars ($1,000.00), and with the permission of the City Manager may do likewise in matters not involving or requiring payment to exceed five thousand dollars ($5,000.00),] (a) City Attorney: matters where the amount paid by the City in settlement of a claim against the City, or the amount relinquished or forgiven on a claim that the City has against others, does not exceed twenty thousand dollars ($20,000); (b) City Attorney with the approval of the City Manager: matters where the amount paid by the City in settlement of a claim against the City, or the amount relinquished or forgiven on a claim that the City has against others, does not exceed forty thousand dollars ($40,000); (c) A Committee comprised of the City Manager, City Attorney and the Risk Manager: matters where the amount paid by the City in settlement of a claim against the City, or the amount relinquished or forgiven on a claim that the City has against others, does not exceed sixty thousand dollars ($60,000). [provided that the money to settle claims generally has been appropriated and is available therefor.] SECTION 2 This ordinance shall become effective thirty (30) days after final passage and approval. INTRODUCED: January 25, 2010 BY: Vera Ortegon COUNCILPERSON APPROVED: RESIDENT CF CITY CC) UNCIL ATTESTED BY: CrrY CLERK PASSED AND APPROVED: February 8, 2010 rr Background Paper for Proposed Resolution DATE January 25, 2010 DEPARTMENT Law Department TITLE AGENDA ITEM # R -2 AN ORDINANCE AMENDING SECTION 1 -5 -8 OF CHAPTER 5 OF TITLE I OF THE PUEBLO MUNICIPAL CODE, RELATING TO THE AUTHORITY OF CITY OFFICIALS TO SETTLE CLAIMS, ACTIONS, AND OTHER DISPUTED MATTERS. ISSUE Should the City Attorney, City Risk Manager, and City Manager be given certain increased authority to settle claims for and against the City? RECOMMENDATION The proposed ordinance should be approved. BACKGROUND Currently, the City Attorney has authority to settle claims for and against the City in an amount no greater than one thousand dollars without seeking the approval of City Council through a resolution. The City Manager has similar authority up to five thousand dollars. If the claim is greater than that, the matter must be brought to City Council for approval by resolution. This amendment would increase the authority of the City Attorney to settle claims without seeking City Council approval through a resolution. In addition, the City Attorney with approval of the City Manager, and a Committee composed of the City Attorney, the City Risk Manager, and the City Manager, would be given higher settlement authority without seeking City Council approval through a resolution. Any settlement involving payment of a claim against the City, or relinquishment of a claim that the City has against others, exceeding sixty thousand would still require City Council approval. The proposed amendment is consistent with the practice in other cities of comparable size. For example, at the City of Greeley, Colorado, the Risk Manager has authority to settle cases up to five thousand without City Council approval. The City Attorney, in consultation with the Risk Manager has authority to settle cases up to ten thousand without City Council approval, and a committee composed of the City Attorney, Risk Manager, and City Manager has authority to settle cases up to fifty thousand without City Council approval. At the City of Fort Collins, Colorado, the Risk Manager has authority to settle cases up to fifty thousand without City Council approval and the City Manager has authority to settle cases up to one hundred thousand without City Council approval. FINANCIAL IMPACT The amendment should be revenue neutral.