The City Council voted Tuesday night to pay $75,000 to settle a sexual harassment lawsuit brought by former city employee Lana Sutton.
She claimed that former city General Services Administrator Paul Page told her to dress in sexy outfits and to "entertain" executives and heads of giant corporations coming into Chattanooga.
She worked as a part-time fitness trainer for the city from 2007 until April 2011, the suit says.
Sutton attorneys said they had planned to call Mr. Page as well as former Mayor Ron Littlefield if the case had gone to trial in Federal Court.
The trial was set for late May.
A settlement was reached in a similar case filed against the city by another female city employee who worked for Mr. Page, city officials said.