October 13, 2026
Agenda Item No. 4
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
Jason Al-Imam, Administrative Services Director/Treasurer - 949-644-3126, [email protected] PREPARED BY:
Jason Al-Imam, Administrative Services Director/Treasurer TITLE:
Resolution No. 2026-89: Amending City Council Policy F-14 ABSTRACT:
Recently, the City Council amended City Council Policy F-14 to provide for annual adjustments to contracting authority based on the Consumer Price Index (CPI). Staff recommends amending Policy F-14 to reflect the most recent CPI adjustments so that the current authority is contained in the policy and that the City Council authorize future CPI updates without requiring further City Council action. The proposed amendments to the policy also incorporate claims resolution authority approved as part of the Fiscal Year 2026-27 budget, revise the City Manager's authority to resolve workers' compensation matters, and make related administrative and reporting updates.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution No. 2026-89, A Resolution of the City Council of the City of Newport Beach, California, Amending Council Policy F-14, Contract Procurement and Authority to Contract, to Update Provisions Related to Consumer Price Index Adjustments and Claims Resolution.
DISCUSSION:
City Council Policy F-14 establishes the City of Newport Beach's (City) requirements for contract procurement and delegates authority to City officials to enter into and amend contracts. Recent City Council actions have affected several provisions of the policy, and staff recommends updating Policy F-14 so that it accurately reflects those actions and related administrative procedures.
The City Council previously amended Policy F-14 to provide for annual adjustments to applicable contracting thresholds based on changes in the CPI. Consistent with that provision, the proposed amendments update the applicable dollar thresholds to reflect the most recent CPI adjustment. The current adjusted thresholds are $125,000 for the city manager and $78,000 for department directors, with corresponding adjustments made elsewhere in the policy where those thresholds apply.
The proposed amendments also authorize the administrative services director to make future updates to Policy F-14 that are limited to implementing the annual CPI adjustment. This administrative authority will allow the policy to reflect the adjusted contracting thresholds each year without requiring the City Council to formally amend the policy solely for that purpose. Any other changes to the provisions of Policy F-14 would continue to require City Council approval by resolution.
In addition, as part of the FY 2026-27 budget, the City Council authorized the city manager and risk manager to resolve certain claims. The proposed amendments incorporate that authority into Policy F-14. Subject to the availability of funds budgeted or otherwise approved by the City Council, the city manager and risk manager would be authorized to compromise, settle, resolve and execute agreements concerning claims, disputes, litigation and workers' compensation matters. For general claims and litigation, the city manager and risk manager may resolve matters in amounts not exceeding 40 percent and 30 percent respectively, of the City's applicable self-insured retention, or their respective contracting authority under Policy F-14, whichever is greater.
The amendments further revise the city manager's authority to resolve workers' compensation matters. The city manager would be authorized to compromise, settle and resolve workers' compensation matters notwithstanding other monetary limitations in the policy. For a settlement exceeding the city manager's authority for general claims and litigation, the city manager would provide written notice to the City Council at least 10 calendar days before execution. The risk manager's workers' compensation settlement authority would be limited to 30 percent of the applicable self-insured retention or the risk manager's contracting authority, whichever is greater. Projected future medical costs would not be included in calculating the settlement amount for purposes of these limits.
Related amendments clarify delegated contracting authority and update administrative and reporting provisions to conform to these changes.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
ATTACHMENTS:
Attachment A – Resolution
Attachment B – Redline of Council Policy F-14
Resolution No. 2026-89: Amending City Council Policy F-14 October 13, 2026
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