The Council or any other officer shall not authorize the expenditure of City funds for legal counsel on behalf of any City officer or employee to resolve a dispute over the application of the provisions of this Charter, City ordinance, or State law unless the dispute is first submitted to the mediation and arbitration procedures recommended by the American Arbitration Association. If such procedures do not resolve the dispute, the Council, in its discretion, may authorize the expenditure of funds for legal counsel. The Council is not prohibited from authorizing the expenditure of funds for legal counsel if the plaintiff in the dispute sues the City or one of its officers.