I saw this first on the Daily Oklahoman, and my first thought was, "Well, there isn't a grain of salt big enough to take with that sketchy story." A settlement? Sure, it's nice to ponder, but the attribution in that story was rather light.
Now, however, we have some more information. From The Seattle Times:
"It looks like [a settlement], but I'm afraid what little I know is sworn to secrecy until after the mayor's press conference," said [Seattle City Councilmember Jean] Godden.
From the PI:
"A spokesperson for City Attorney Tom Carr said their office was not aware of [the settlement]and was not planning any comment until a scheduled 5 p.m. press conference by Mayor Greg Nickels."
Wait and see.