Can a city bring a cause of action for declaratory relief that is based on a contractual dispute?

City of Alhambra v. D'Ausilio (2011) 193 Cal.App.4th 1301 (City of Alhambra) applied City of Cotati to a cause of action for declaratory relief that was based, as is the fourth count here, on a contractual dispute. In City of Alhambra, a city and its former firefighter employee were parties to a settlement agreement under which the former employee agreed to limit his involvement in the firefighters' association for a certain period of time. (Id. at p. 1304.) After the former employee participated in association activities involving a protest against the city, the city brought a claim for declaratory relief seeking a judicial determination of whether the employee's conduct had violated the settlement agreement and whether the agreement was valid. (Id. at pp. 1304-1305.)