Agenda Memo

City of Boulder City Council Agenda Item Meeting Date: January 8, 2026 Agenda Title Consideration of a motion to authorize the city manager to enter into a settlement agreement to resolve a claim asserted by Mary Joy Linfield for payment in the amount of $91,332.00

Staff Contact • • •

Nuria Rivera-Vandermyde, City Manager Teresa Taylor-Tate, City Attorney Luis Toro, Senior Counsel

Draft Motion Language Staff requests council consideration of this matter and action in the form of the following motion: Motion to authorize the city manager to enter into a settlement agreement to resolve a claim asserted by Mary Joy Linfield for payment in the amount of $91,332.00

Executive Summary This claim arises from a main water break that occurred February 8, 2025 and caused damage to Ms. Linfield’s home. The city’s investigation determined that the break was caused by improper installation of a pipe. Because the amount of the settlement exceeds $50,000, City Council approval of the proposed settlement is necessary pursuant to Section 2-2-14(c), “Initiation and Settlement of Claims and Suits,” B.R.C., 1981, to make the settlement legally binding. The city manager and city attorney recommend approval of the proposed settlement.

Council Action Options Option

Outcome

Approve motion language as drafted

If the motion is approved, the proposed settlement will be executed, and the City Attorney’s Office and Risk Management will work together to issue Ms. Linfield a payout

Define and adopt a modified motion

Council would need to define any modifications or amendments to the draft motion language. This will likely require staff to bring back an amended version.

Deny the motion or take no action

If this motion is denied, the proposed settlement will not be executed and litigation may commence

Refer back to staff

If council refers this item back to staff, staff would need more direction from council

Alignment with City Plans and City Council History Sustainability, Equity and Resilience (SER) Framework and Citywide Strategic Plan Alignment SER Framework Goal Area This item connects to the goal area of Responsibly Governed. Recommending this proposed settlement is a way to model stewardship and responsibly manage the city’s assets. Citywide Strategic Plan This item connects to Strategy 12, Implement organizational and financial best practices to continuously improve asset management, customer experience, and project and program performance. This proposed settlement models stewardship and aims to responsibly manage the city’s financial assets by saving the city money from avoiding litigation in this matter. If the proposed settlement was not approved and this matter went to litigation, the city could incur the cost of expert witness fees, staff time, and possibly a judgment in excess of the settlement amount.

Staff Notes Section 2-2-14(e), “Initiation and Settlement of Claims and Suits,” B.R.C. 1981 requires that any settlement over $50,000 requires approval from city council. The resolution of disputes is generally of social benefit and the resolution of this dispute will free up staff time to work on other projects. Payment for the proposed settlement will be made from the city’s Property and Casualty Fund, which was established and funded for the purpose of paying claims and settling cases. This settlement is within the city’s anticipated loss planning parameters.

Alignment with Additional City Plans Settlements are included in the city attorney’s regular work and yearly work plan.

City Council History This particular item does not have a history with this council

Analysis It is not possible to predict the outcome of a trial. Given the projected costs of litigation, the city attorney believes that it is unlikely that the city will be in a significantly better economic position by litigating the case as compared to approving the proposed settlement agreement. The city manager also supports the proposed settlement.

Equity Analysis An equity analysis was not necessary for this item.

Climate, Resilience, and Sustainability Considerations This item has no considerations related to climate, resilience, or sustainability.

Community Engagement This item is purely procedural in nature and doesn’t require community engagement.

Workplan Considerations Settlements require anticipated staff time. However, litigation generally requires more staff time and city resources.

Next Steps for City Council Council has the option of approving or rejecting the proposed settlement. If council rejects the settlement, litigation will commence.

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Attachment Attachment A – Proposed Settlement Release Mary Joy Linfield

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