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The City Council took its first step last week toward resolving issues related to City Manager Arthur C. Simonian and could go further at its meeting Tuesday.

Council members are scheduled to consider cutting costs by ending the city’s contract with Interim City Manager Daniel Miller and appointing Public Works Director Roy Stephenson as acting city manager. The council may also vote to try to end its legal battle with Simonian by seeking a settlement. Newly appointed Mayor Ken Ryan said he will be prepared to vote on those matters by Tuesday.

The city is suing Simonian, seeking $300,000 in bonuses he allegedly paid himself without proper authorization. The city manager has denied any wrongdoing and is suing to get his job back.

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