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Council reports $1.8 million settlement in federal case; authorizes litigation for two receivership matters
Summary
After closed session the city attorney reported the council approved a $1.8 million settlement in Daniel Felix v. Andrew Sibini, et al., U.S. District Court case No. 5:24‑CV‑01494 by a 5–1 vote. The council also unanimously authorized counsel to initiate two receivership lawsuits.
Following a closed‑session review, the City Attorney reported two formal, reportable actions. First, the council approved a settlement in federal litigation Daniel Felix v. Andrew Sibini, et al., United States District Court case No. 5:24‑CV‑01494 in the amount of $1,800,000. The settlement motion was moved and seconded in closed session and carried by a 5–1 recorded vote, with Councilmember Ortiz voting no.
Second, the council unanimously granted authority to the city’s legal counsel to initiate litigation in two receivership cases. That motion passed 6–0. The City Attorney told the council the details of those receivership cases will be made public when the cases are filed.
Why it matters: The settlement creates a near‑term fiscal obligation recorded in the closed session report and will be reflected in future accounting and reporting. The receivership authorizations enable the city to pursue legal remedies in two matters identified by counsel.
Formal report from closed session City Attorney (reporting out): “The first is related to the closed session agenda item A, romanette 1, related to Daniel Felix versus Andrew Sibini, et al. United States District Court case number 5 24 CV01494. The council decided to settle that case in an amount of $1,800,000. There was a motion by Councilmember Sanchez, seconded by Councilmember Charette. And it was approved by a vote of 5 to 1 with Councilmember Ortiz voting no. That’s the first reportable action.”
“The second is related to item B, Conference of legal counsel for anticipated litigation. The counsel unanimously granted authority to initiate litigation for 2 cases. They are both receivership cases. There was a motion by Council member Charette second by Council member Sanchez and that passed 6 0. The details of those cases will be available to the public when the cases are filed.”
Next steps and transparency The City Attorney indicated the settlement and the litigation authorities will be reflected in the minutes and any necessary public filings; the receiver cases’ details will be disclosed when suits are filed.
Ending: The council’s closed‑session report summarized the two actions and the votes; staff said any further documents related to the receivership filings will be released when the filings occur.
