Naperville doubles claim settlement limit for city manager

Naperville's city manager now can settle claims and form separation agreements up to $50,000 without the city council's approval, despite two council members' concerns about transparency.

Council members Robert Fieseler and Doug Krause voted against a policy update that increases City Manager Doug Krieger's authority to settle legal claims from the previous amount of $25,000 set in 1999.

"Big mistake," Fieseler said. "This is going to be seen as concealment."

The seven council members who supported the change said it adjusts for inflation and increasing medical costs to allow the city manager to efficiently handle workers' compensation, litigation and severance packages.

"This is a black and white policy. It's not tying the hands of our city manager," council member Paul Hinterlong said. "It's updating policy so we can conduct business."

Council members almost delayed action on the settlement authority, but a motion failed to have the matter addressed once a new council is seated in May.

Council member Judith Brodhead, who proposed the later vote, said it would give time to research how high of a limit for settling claims other municipalities impose on their city managers and how often a claim between the original limit of $25,000 and the new amount of $50,000 might come up.

City Attorney Jill Pelka-Wilger said two claims in that range - both for workers' compensation - have come up during the past two years. She said other municipalities she surveyed have settlement limits between $12,000 and $60,000 for their top administrators.

Increasing the settlement authority could keep information about severance packages for longtime employees further from easy public view, Fieseler said. In light of the controversy over the severance package approved for College of DuPage President Robert Breuder, Fieseler said such a move away from transparency would not be good government.

"There is a potential to keep the approved amount in a form that doesn't allow for public comment, public discourse or even discourse on the council here," Fieseler said. "I think it's a bad move to do this."

Krause agreed, saying it's important for residents to know where their tax money is going.

Council member Steve Chirico, however, said the higher settlement limit will help Krieger manage a workforce of more than 900 employees.

"I don't see that this is bad policy. I'm not a micromanager. I trust his judgment," Chirico said about Krieger. "He's been very frugal."

Krieger said his office is happy to provide monthly reports to the council and the city's website about future claims or severance packages settled between $25,000 and $50,000.