ORDINANCE AMENDING DIVISION 1, ARTICLE VII, CHAPTER 2 OF THE CODE OF ORDINANCES, HOUSTON, TEXAS, to provide for the City Attorney’s authority to settle contract disputes on behalf of the City without further approval by City Council where the settlement amount to be paid by the City is less than or equal to the maximum dollar amount of an expenditure for which the City is not required to conduct a competitive procurement under State Law (which amount is currently $50,000)

Chapter 2 of the City of Houston Code of Ordinances (the “Code”) explicitly provides authority for the City Attorney to take certain actions on behalf of the City without needing City Council approval, which include to represent the City in actions and proceedings before a judicial or administrative authority (Section 2-258); execute agreements for installment payments for damage to city property from collisions (Section 2-260); accept immediate right of entry agreements in an emergency (Section 2-261); institute lawsuits to recover any debt or damages owed to the City (Section 2-262); and to enter into settlements and compromises (Section 2-262).

The authority of the City Attorney to settle contract disputes up to $50,000 without City Council’s approval is inherent in each adopted ordinance which approves a contract and authorizes the City Attorney to take all action necessary to enforce said contract without needing further authorization from Council.  Amending the Code to directly provide the City Attorney with this authority would streamline the Legal Department’s settlement of disputes involving contracts and add consistency in the Code with other already existing authority.

Ronald C. Lewis, City Attorney