He was shot several times in September 2015 by two officers after police say they got reports he was threatening a woman with a gun.
It turned out to be a spray nozzle for a garden hose.
His family says the 40-year-old was mentally ill and was not a threat to officers.
He died in the hospital 23 days after the incident.
The family's attorney confirmed the city will give a $600,000 settlement to Centeno's daughter for the wrongful death case.