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Subcommittee 3 examines city manager settlement authority and public‑works contracting; Pasadena example cited
Summary
Subcommittee 3 reviewed how other California charter cities assign settlement authority and contract delivery methods. The group recommended allowing council to set settlement authority and contracting methods by ordinance (as Pasadena did), rather than fixing dollar amounts in the charter.
Subcommittee 3 presented a review of charter language and ordinances used by California cities to set settlement authority and alternative methods for public‑works contracting at the June 30 meeting, and described a likely approach for Sunnyvale: allow the council to set the person and dollar threshold by ordinance rather than hard‑coding a dollar limit in the charter.
The subcommittee reported that state law sets a default settlement threshold of $50,000 for cities that do not have a charter provision; a change to a higher limit generally requires a charter amendment. The subcommittee found three charter cities that address settlement authority through charter language and implementing ordinances; Pasadena’s 2024 charter amendment was highlighted as a close parallel to Sunnyvale. Pasadena placed a package of administrative changes on a recent ballot that (as Pasadena presented it to voters) allowed council to set the authorized official and dollar thresholds by ordinance; both Pasadena measures on the ballot carried by wide margins.
Subcommittee members noted that many charter cities use ordinance language to designate which officer is authorized to settle (for example, the city attorney) and to set the administration’s settlement ceiling; that approach allows the council to adjust thresholds by ordinance as costs and legal practices change rather than requiring repeated charter amendments. The subcommittee reported that Pasadena voters approved similar language in 2024 and provided the committee with Pasadena’s fact sheet as an example of how the city explained the amendment to voters.
Committee members discussed who in Sunnyvale currently has authority to settle (the city manager in the charter text) and whether the city attorney, the city manager, or a two‑tiered model (city attorney for lower amounts, city attorney plus city manager for higher amounts) would be preferred. The subcommittee said it leans toward giving the council flexibility to set both the authorized official and any higher ceiling by ordinance, which staff said would be easier to update through the council process and more transparent for voters.
Public comment supported clarifying the rules and noted concerns about leaving settlement limits only in an ordinance. Steve S., speaking in person, said he was “a little torn” but favored improvements and cautioned that ordinances can be more easily changed than charter language.
Ending: The subcommittee will continue to survey comparable cities and prepare draft language for the committee to consider; staff and the subcommittee noted Pasadena’s recent approach as a practical template for a charter amendment paired with an implementing ordinance.
