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Committee debates financial policy change to allow staff approval of small settlements; council review set
Summary
Finance staff proposed updates to the city’s financial management policy that include adjusting procurement thresholds, harmonizing surplus asset rules and allowing staff to resolve small claims or severance agreements up to $30,000 with mayoral sign‑off.
The Finance & Administration Committee considered a proposed amendment to the city’s financial management policy that would, among other technical changes, delegate authority to resolve small claims and severance/separation agreements (defined as $30,000 or less) to the city administrator with final approval by the mayor.
Finance staff said the changes would harmonize surplus asset procedures with RCW references, update public works and procurement thresholds to reflect recent legislative changes (RCW references were cited in committee discussion), and move petty‑cash and related rules from municipal code into the updated financial policy for administrative clarity.
The most contested item was the proposed delegation for settlement and severance approvals up to $30,000 (including up to one year of COBRA health coverage in severance situations). Council members raised concerns about reducing council oversight of settlement and severance decisions and requested further discussion. One council member explicitly said they would not support removing council involvement for such agreements.
Administration said the delegation would allow timely resolution of small claims and provide flexibility during negotiations but acknowledged council concern and recommended further council‑level discussion; staff indicated executive session could be convened if the discussion touched on specific personnel or litigation instances. The committee agreed to forward the policy amendment to council and staff signaled willingness to refine the severance/settlement language after a council discussion.
