The City Charter, Municipal Code and State statutes authorize the City Manager to administer financial matters, countersign warrants, approve claim vouchers, and perform other duties required of the City Manager by the City Council. The resolution authorizing the City Manager to settle claims in an amount up to $50,000 expired on December 31, 2021. This resolution will authorize the City Manager, until such time the Council revises such authority, to resolve claims against or by the City in the amount of $100,000 or less, and to execute all documents necessary to the resolution or settlement of such claims against or by the City. 

The increase in settlement authority from $50,000 to $100,000 would align the City Manager’s current authority to sign contracts with a value of up to $100,000 with his authority to execute settlement agreements, which are a type of contract. Additionally, an increase in settlement authority is a return to the pre-2016 status quo. Dating back to at least 2002, the City Manager’s settlement authority was $100,000, which, adjusted for inflation, is $154,500 in today’s dollars.

For further context, over the last four years two claims have settled for between $50,000 and $100,000.

Should the resolution pass, the City Council would continue to approve all claim settlements exceeding $100,000. Additionally, City Council is apprised on a quarterly basis of all claims settled by the City, regardless of dollar amount, via a quarterly claims report. 

The City of Yakima is self-insured for most property and general liability damage claims.  The Transit Division is in the Washington State Transit Insurance Pool (“WSTIP”) as of September 1, 2005, with a $0 deductible.  The City of Yakima is insured by Safety National for other claims, with deductibles of $500,000 or $750,000, depending upon the source and nature of the claim.