Chapter 4.24

SETTLEMENT OF CLAIMS AND ACTIONS*

Sections:

• 4.24.010 Claims against the city.

• 4.24.015 Workers' compensation claims.

• 4.24.020 City's claims and actions against others.

• 4.24.030 Write-off of uncollectible accounts authorized when.

• 4.24.040 Emergency authority to act on claims and actions.

• 4.24.050 Challenges to elections commission decisions.

• A. Whenever the City Attorney deems it to be in the best interests of the City to do so, the City

*Charter references— For Charter provisions on claims against the city, see Charter § 1218; for statutory provisions on claims against public entities, see Gov. Code § 900 et seq.

Attorney is hereby authorized to compromise and settle claims and actions for damages against the City, and/or against its officers and employees for conduct within the course and scope of their employment with the City where:

1. The case involves claims related to sanitary sewer backup intrusions and the amount to be paid by the City does not exceed twenty-five thousand dollars ($25,000); or

2. All other cases in which the amount to be paid by the City does not exceed twenty thousand dollars ($20,000).

• B. The City Attorney is hereby authorized to enter into agreements on behalf of the City and its officers and employees as necessary to effectuate any authorized compromise and settlement.

• C. The authority to compromise and settle provided by subdivision A. includes the authority of the City Attorney to accept or reject any arbitration award, settlement demand or other offer to compromise which is within the monetary authority provided by subdivision A.

• D. The settlement authority of the City Attorney may be increased by the City Council on a case-by-case basis.

• E. The City Attorney shall report annually to the City Council the claims or actions against the City settled for an amount from one thousand dollars ($1,000) to ten thousand dollars ($10,000).

(Prior code § 296; Ords. 20016, 24234, 27554, 31227.)

• A. The city manager is hereby authorized to execute compromise and release settlements and stipulated awards of workers' compensation claims against the city in any case in which the amount to be paid by the city does not exceed fifty thousand dollars.

• B. The city attorney is hereby authorized to execute compromise and release settlements and stipulated awards of workers' compensation

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§ 4.24.015

claims against the city in any case in which the amount to be paid by the city does not exceed one hundred thousand dollars.

• C. The city manager and the city attorney are each hereby authorized to enter into agreements on behalf of the city as necessary to effectuate any authorized compromise and release or stipulated award.

• D. The city manager and the city attorney shall each file an annual report with the city council, which describes all settlements of workers' compensation claims, which they authorized. The report shall identify the type of disability and the amount of compensation paid without individually identifying the employee.

• (Ords. 24929, 25576, 25995, 26770.)

• A. The City Attorney is hereby authorized to file legal actions to collect any and all claims for damages or other money owed to the City. The City Attorney is further authorized to forego initiation or pursuit of any legal action for damages or money owed to the City whenever the City Attorney determines that:

  1. The City's claim is likely to be ultimately uncollectible; or

  2. Collection would not be reasonably cost effective taking into consideration the probable necessary costs to the City in pursuing collection and the likelihood of collection; or

  3. The City's claim is not a valid, enforceable claim of the City.

• B. The City Attorney is hereby authorized to compromise and settle any claim for damages or other money owed to the City where the amount of the City's claim does not exceed fifty thousand dollars ($50,000), or the City's claim exceeds fifty thousand dollars ($50,000) and the difference between the amount claimed by the City and the settlement amount does not exceed fifty thousand dollars ($50,000),

whenever the City Attorney deems the compromise and settlement to be in the City's best interest.

• C. For purposes of any decision to forego collection of a claim pursuant to subdivision A., or a compromise and settlement pursuant to subdivision B., the City Attorney is authorized to dismiss any legal action that has been filed and to enter into any agreement on behalf of the City of San José which is necessary to effectuate a compromise and settlement. To the extent the full amount owing to the City on any claim is not collected due to a decision to forego or a compromise and settlement pursuant to subdivisions A. and B., respectively, the uncollected amount shall be deemed written off as uncollectible.

• D. The Director of Finance is hereby authorized to bring actions in the Small Claims Court to collect any and all claims for damages or other money owed to the City which are within the jurisdiction of the Small Claims Court.

• E. The Director of Finance is hereby authorized to compromise and settle any and all claims for damages or other money owed to the City where the amount of the City's claim does not exceed five thousand dollars ($5,000), or the City's claim exceeds five thousand dollars ($5,000) and the difference between the amount claimed by the City and the settlement amount does not exceed five thousand dollars ($5,000), whenever the Director of Finance deems the compromise and settlement to be in the City's best interest. For purposes of any compromise and settlement pursuant to this provision, the Director of Finance is authorized to enter into any agreement for or on behalf of the City necessary to effectuate the compromise and settlement. To the extent the full amount owing to the City on any claim is not collected due to a compromise and settlement pursuant to this provision, the uncollected amount shall be deemed written off as uncollectible.

• F. The City Manager is hereby authorized to compromise and settle any and all claims for

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§ 4.24.050

• damages or other money owed to the City where the amount of the City's claim does not exceed five thousand dollars ($5,000), or the City's claim exceeds five thousand dollars ($5,000) and the difference between the amount claimed by the City and the settlement amount does not exceed five thousand dollars ($5,000), whenever the City Manager deems the compromise and settlement to be in the City's best interest. For purposes of any compromise and settlement pursuant to this provision, the City Manager is authorized to enter into any agreement for or on behalf of the City necessary to effectuate the compromise and settlement. To the extent the full amount owing to the City on any claim is not collected due to a compromise and settlement pursuant to this provision, the uncollected amount shall be deemed written off as uncollectible.

(Prior code § 2906.1; Ords. 20016, 24234, 24399, 31227.)

• A. The director of finance is hereby authorized to write off as uncollectible any account or claim not exceeding five thousand dollars in amount, which the city may have against any person when the director of finance determines that the claim is:

  1. Uncollectible;

  2. Possibly collectible but collection would not be reasonably cost effective taking into consideration the probable necessary cost to the city in pursuing collection and the likelihood of collection; or

  3. Not a valid, enforceable claim of the city.

• B. A write-off pursuant to this section and Section 4.24.020 is authorized solely to facilitate the keeping of the books of account of the city, and under no circumstances shall any such write-off be deemed to constitute a relinquishment or abandonment by the city of any such account or claim, and nothing in these sections shall be deemed or construed to pre-

vent the city from collecting or enforcing payment of any such account or claim at any time.

• C. Except as provided in Section 4.24.020, no account or claim of the city exceeding five thousand dollars in amount shall be written off as uncollectible without the express authorization of the city council.

(Prior code § 2906.2; Ords. 20813, 24234.)

The city attorney is hereby authorized to accept or reject any arbitration award, settlement demand or other offer to compromise or to take any other legal action that ordinarily requires council approval with regard to any claim or pending litigation matter, whenever the council is in recess for more than fifteen consecutive days and the city attorney determines that: (1) taking the action during the council's recess is necessary to protect the city's interest; and (2) the action should not be deferred until the next regularly scheduled meeting of the city council.

(Ord. 24234.)

• A. Notwithstanding any other provision of this Code, the elections commission has the sole authority to compromise all lawsuits filed for judicial review of commission decisions.

• B. For purposes of any compromise and settlement pursuant to this provision, the chair of the commission is authorized to enter into any agreement for or on behalf of the city necessary to effectuate the compromise and settlement.

• C. The authority granted to the commission herein does not include the authority to agree to any payment of money by the city or to change any regulation or procedure.

• (Ords. 25525, 26976.)

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