Measure H

City of Sunnyvale City Manager Settlement Authority City Charter Amendment

Measure H would amend the City Charter to authorize the City Council to re-establish the maximum amount the City Manager may approve to settle legal claims against the City, instead of the current $50,000 limit established by state law while retaining City Council approval authority for settlements exceeding the amount set by the ordinance.

This measure requires approval by a majority of voters voting on the measure to pass.

Fiscal Impact: No clear fiscal impacts.

See Endorsements for Measure H

Pro:

Supporters say that the current Charter caps the City Manager's authority to settle routine, clear-cut legal claims at just $50,000-a limit set nearly 40 years ago. Because of decades of inflation, $50,000 in 1989 is worth over $130,000 today. As a result, even minor administrative claims-like a city vehicle clipping a fender-frequently exceed this low threshold. This creates a bureaucratic bottleneck. Your elected City Council is required to repeatedly stop their work to agendize, review, and vote on minor, routine legal settlements. This wastes taxpayer-funded staff hours, delays fair resolutions for residents, and clutters public meetings. Voting yes replaces this rigid, outdated $50,000 cap and empowers the City Council to set realistic limits by ordinance.

A YES vote on this measure means: you support amending the Charter so that the Council can adopt an ordinance setting the amount of the City Manager's settlement authority at a different limit than Government Code Section 935.4.

Con:

No official opposition submitted.

A NO vote on this measure means: you are against amending the Charter as described.

Background

Currently, the City follows Government Code Section 935.4, which requires the City Council to approve all settlements of lawsuits and claims greater than $50,000. The California Legislature set the $50,000 limit in 1989 and has not adjusted it for inflation. Government Code Section 935.4 requires an amendment to the City Charter to change the $50,000 limit.

If a settlement is within the City Manager's authority, it means that the City Manager or their designee, such as the Risk Manager, can approve the settlement without involving the City Council. If a proposed settlement is over the City Manager's authority, staff will present the case to the City Council in a confidential closed session. The Council may approve or disapprove the settlement, or authorize staff to negotiate a settlement up to a certain amount.

Proposal

If approved, this measure would authorize the City Council to set the City Manager's maximum settlement authority by ordinance. The City Council could adjust this amount (up or down) in the future by adopting another ordinance; no further Charter amendment will be necessary.

In August 2026, the City Council adopted an ordinance that will take effect if this measure passes, setting the City Manager's settlement authority at $250,000, the same amount as the City Manager's current authority to approve contracts.

Any settlement above the Council-set limit in the ordinance would require City Council approval, and the closed session procedures for City Council approval of settlements over the amount set by the ordinance would remain the same.

Source: Measure H Impartial Analysis

Santa Clara County Election Resources

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Background

Proposal

2026 Propositions

2026 Local Ballot Measures

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