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TO: Mayor Richard C. Irvin
The Honorable Members of the City Council
FROM: Richard J. Veenstra
Corporation Counsel
DATE: June 6, 2019
SUBJECT:
Settlement authority of the Corporation Counsel
PURPOSE:
To formalize the settlement authority of the Corporation Counsel.
BACKGROUND:
By custom, practice, and necessity, the City Council has afforded the Corporation Counsel some authority to settle claims made against the City without requiring the formal approval of the City Council. In recent years, $25,000 has been the point at which the Council has expected to be consulted before the Corporation Counsel undertakes settlement. This amount is consistent with the general purchasing authority of a department head, but does not appear to have been formalized through motion, resolution or ordinance.
DISCUSSION:
For practical reasons, and to avoid any ambiguity or question of authority, it is preferable to formally define the scope of the Corporation Counsel's authority. The attached outline, which is proposed to be adopted by resolution, establishes reasonable parameters for settlement authority. The Corporation Counsel in consultation with the Mayor may settle claims up to $50,000 and in consultation with the Council may settle claims up to $100,000. All settlements exceeding $100,000 will require formal approval by the Council.
The outline also proposes to require Council consultation before the Corporation Counsel resolves any claim against a City officer or employee alleging conduct that would constitute “unlawful discrimination” within the meaning of the Illinois Human Rights Act.
Finally, all settlement agreements are public records subject to inspection and copying under the Freedom of Information Act. The outline provides that the Corporation Counsel may not settle any claims through agreements that purport to require confidentiality or otherwise exceed any of the other settlement parameters.
IMPACT STATEMENT:
Adoption of this resolution will not significantly change existing practice, but will provide for increased clarity and a record of the Corporation Counsel's settlement authority.
RECOMMENDATIONS:
That the Council approve this resolution.
cc: Rules, Administration, and Procedures Committee
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
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A Resolution defining the settlement authority of the Corporation Counsel with respect to civil actions and claims made against the City and its officers and employees.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the City Code provides that the Corporation Counsel shall defend all civil actions on behalf of the City or any of its officers or employees in their official capacity and further that the Corporation Counsel shall have charge over such matters; and
WHEREAS, from time-to-time the Corporation Counsel's defense of such actions in the best interest of the City may require settlement; and
WHEREAS, the City Council finds it prudent to vest the Corporation Counsel with limited authority to resolve such actions or threatened claims in the best interests of the City;
WHEREAS, the City Council desires to define such limited authority consistent with the provisions of Exhibit A, which is made a part of this resolution as if fully set forth herein.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the settlement authority of the Corporation Counsel with respect to civil actions and claims made against the City, its officers, and employees in their official capacities shall be and hereby is established and defined as set forth in Exhibit A