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Supplemental Memorandum, 1/9/26

San Jose City Council
January 13, 2026

Document
Supplemental Memorandum, 1/9/26
Meeting
January 13, 2026
Body
San Jose City Council
Pages
3
Original file
169 KB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

TO: HONORABLE MAYOR

AND CITY COUNCIL

FROM: Jim Shannon

SUBJECT: Green v. City of San José
et. al. – Settlement
DATE: January 8, 2026

Approved

Date:
1/8/26

COUNCIL DISTRICT: Citywide

REASON FOR SUPPLEMENTAL MEMORANDUM

This memorandum recommends budget actions to reallocate existing funding to provide sufficient budgetary capacity for the City to settle the lawsuit brought by Plaintiff K’aun Green in the amount of $8,000,000.

RECOMMENDATION

(a) Approve a settlement in the case of Green v. City of San José, et al, in the amount of $8,000,000, and authorize the City Attorney to execute a Settlement Agreement.

(b) Adopt the following 2025-2026 Appropriation Ordinance amendments in the General Fund:
(1) Increase the General Liability Claims City-Wide Expenses appropriation to the City Attorney’s Office by $8,000,000; and
(2) Decrease the Budget Stabilization Reserve by $8,000,000.

ANALYSIS

The City Attorney is recommending approval of a settlement in the case of Green v. City of San José, et. al., U.S. Dist. Ct., N.D. Cal., case no 5:22-cv-02174-NC, in the amount of $8 million and to authorize the City Attorney to execute a Settlement Agreement.

The payment of claims arising from litigation are typically paid from the General Liability City-Wide Expenses appropriation, which receives an annual allocation of $6.0 million, and any remaining balance is carried forward into the following fiscal year as part of the annual budget process. The 2025-2026 Modified Budget for this appropriation is $8.6 COUNCIL AGENDA: 01/13/26
FILE: 26-035
ITEM: 3.3

HONORABLE MAYOR AND CITY COUNCIL
January 8, 2026
Subject: Green v. City of San José et. al. – Settlement

Page 2 ends

million, which includes the ongoing allocation of $6.0 million and the rebudget of $2.6 million from prior fiscal year savings. However, the estimated remaining balance at the end of December is approximately $5.9 million. Budget adjustments are necessary to ensure that sufficient funding is available to both pay the recommended settlement amount of $8.0 million and for other settlements or litigation costs that may be incurred throughout the remainder of the fiscal year.

COST SUMMARY/IMPLICATIONS

The recommended action reallocates $8.0 million from the Budget Stabilization Reserve, reducing this reserve from $20.5 million to $12.5 million, to the General Liability Claims City-Wide Expenses appropriation. Should any savings remain in the General Liability Claims City-Wide Expenses appropriation at the end of the fiscal year, the City Manager’s Office will coordinate with the City Attorney’s Office to determine if the remaining funding should be returned to the Budget Stabilization Reserve or rebudgeted into 2026-2027 to address future claims. It is important to note that the Workers Compensation/General Liability Catastrophic Reserve Claims Reserve of $15.0 million remains available should the City face a future significant and unexpected claim.

BUDGET REFERENCE

The following table identifies the fund and appropriation adjustments necessary to fund the recommended settlement.

Fund
#
Appn.
#
Appropriation
Name
Total
Appropriation

Rec. Budget
Action
Amt for
Settlement
2025-2026
Adopted
Operating
Budget
Page
Last Budget
Action (Date,
Ord. No)
001 0018 General Liability
Claims $8,563,000 $8,000,000 $8,000,000 909 10/21/2025
31252
001 8399
Budget
Stabilization
Reserve
$20,500,000 ($8,000,000) N/A 935 10/21/2025
31252

COORDINATION

This memorandum was coordinated with the City Attorney’s Office.

HONORABLE MAYOR AND CITY COUNCIL
January 8, 2026
Subject: Green v. City of San José et. al. – Settlement

Page 3 ends

PUBLIC OUTREACH

This memorandum will be posted on the City’s Council Agenda website for the January 13, 2026 City Council meeting.

COMMISSION RECOMMENDATION AND INPUT

No commission recommendation or input is associated with this action.

JIM SHANNON
Budget Director

For questions, please contact Jim Shannon, Budget Director, City Manager’s Office, at [email protected].

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