TO:Andrew P. Powers, City Manager
FROM:Ingrid Hardy, Assistant City Manager
DATE:August 26, 2025
SUBJECT: Claims and Litigation Settlement Authority
RECOMMENDATION:
1. Adopt resolution granting the City Attorney, or their designee, authority to evaluate and reject all claims, filed against the City, to settle any claim or litigation and to execute such releases up to the maximum amount of $25,000; and granting the City Manager, or their designee, upon recommendation from the City Attorney, or their designee, authority to settle any claim or civil litigation filed by or against the City, involving sums greater than $25,000, up to $50,000, in a form approved by the City Attorney, or their designee, and rescinding Resolution No. 94-177.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to prepare staff report and resolution is included in the Adopted FY 2025-26 General Fund Budget.
BACKGROUND:
Pursuant to the California Government Claims Act, claims must be filed against public entities prior to initiating litigation against the City in most cases. A written claim shall be properly filed with the City within prescribed timeframes. Claims may be filed with the City using the City’s Claim Form.
Claim and Litigation Settlement Authority
August 26, 2025
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The City receives claims for various matters, including personal injuries and property damage. Once received, City staff, including the City Attorney’s Office and Risk Manager, will evaluate the claim to determine potential liability, evaluate the damage amount, and determine whether to reject or settle the claim. If a claim is rejected, the claimant may, within the period prescribed in the Government Code, pursue legal action against the City. At any time during the claims or litigation process, the parties may desire to settle the matter. At both the claims stage and litigation stage, depending on the amount agreed to, City Council has delegated the authority to settle to either the City Attorney or the City Manager.
Government Code Section 935.4 authorizes a local public entity to delegate to an employee settlement of claims up to $50,000. Government Code section 949 authorizes a local public entity to delegate to an employee settlement of pending litigation without monetary limits.
In January 1987, City Council adopted Resolution No. 87-14 authorizing the City Attorney and City Manager to reject or settle claims and pending litigation against the City with maximum monetary limits of $2,500 and $7,500, respectively (Settlement Authority). This measure aimed to streamline the settlement process, thereby reducing both the time and cost associated with City administration.
In August 1994, City Council adopted Resolution No. 94-177, which increased the Settlement Authority amount to $5,000 for the City Attorney and $15,000 for the City Manager. The City has not reviewed or revised the authorization amounts in more than 20 years. Staff are revisiting the existing practices to modernize the process due to expanded City operations and the effects of inflation. Increasing the authorization amounts will allow for quicker claim and litigation response and potentially more expedited resolution.
DISCUSSION/ANALYSIS:
The revised resolution (Attachment #1) outlines an increase in Settlement Authority granted to the City Attorney and the City Manager. This will improve claim and litigation-related administrative flexibility, potentially reduce the number of actions brought to City Council in closed session and enhance the City’s ability to provide an expedited response.
Staff recommends approval of the resolution to provide settlement authority up to $25,000 for the City Attorney, or their designee, and up to $50,000 for the City Manager, or their designee, to promote efficient and prompt processing of claims and litigation.
Claim and Litigation Settlement Authority
August 26, 2025
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COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Ryan Roman, Assistant to the City Manager
Attachment:
Attachment #1 – Resolution
CMO: 100-90\rr\H:\COMMON\Council Items\2025\08 26 2025\Settlement Authorization