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HomeMy WebLinkAbout2021-04-13; City Council; ; Settlement of the Workers’ Compensation Claims of Duncan Sanchez for $60,000 Meeting Date: April 13, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Sarah Reiswig, Management Analyst sarah.reiswig@carlsbadca.gov, 760-500-9335 Judy von Kalinowski, Human Resources Director judy.vonkalinowski@carlsbadca.gov, 760-473-4670 Subject: Settlement of the Workers’ Compensation Claims of Duncan Sanchez for $60,000 District: All Recommended Action Adopt a resolution approving the settlement of the workers’ compensation claims of Duncan Sanchez for $60,000. Executive Summary / Discussion Duncan Sanchez, a former police officer, sustained work-related injuries in the course of his employment. This compromise and release settlement permanently resolves and permanently releases the city of liability for the claimant’s three open claims. This settlement is being brought before the City Council because, under City Council Resolution 2015-086, workers’ compensation settlements exceeding $50,000 require the council’s approval. The terms of the proposed settlement are set forth in the request for settlement authority document, which is on file in the Human Resources Department and has been reviewed by the City Attorney’s Office. The claimant and the city agreed upon the terms which were recommended by AdminSure Inc., the city's workers’ compensation third party administrator. Options Authorizing this settlement through such a compromise and release process permanently closes the three open claims and permanently releases the city from future liability for new or further injury. The settlement provides a lump sum payment for permanent disability and future medical care costs. Declining to settle this claim through a compromise and release would require the city to settle through a stipulation of award, which would entitle Mr. Sanchez to bi-weekly permanent disability payments until the award is paid in full. Additionally, the city will continue paying for April 13, 2021 Item #2 Page 1 of 3 medical care as needed and will remain liable for new and further injury exacerbation, medical and utilization review costs and/or treatment complications. Fiscal Analysis The cost of the settlement is $60,000. Funding for this is included in the adopted fiscal year 2020-21 budget. Next Steps The settlement will be reviewed and approved by the state Workers’ Compensation Appeals Board. Once approved by that board, benefit payments will be issued by AdminSure Inc. Environmental Evaluation (CEQA) This action does not constitute a “project” within the meaning of the California Environmental Quality Act under California Public Resources Code Section 21065 in that it has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Therefore, it does not require environmental review. Public Notification and Outreach Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution April 13, 2021 Item #2 Page 2 of 3 RESOLUTION NO. 2021-077 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING SETTLEMENT OF THE WORKERS' COMPENSATION CLAIMS OF DUNCAN SANCHEZ WHEREAS, AdminSure Inc., the city's third-party administrator, has recommended a settlement of the workers' compensation claims of Duncan Sanchez; and WHEREAS, all parties have agreed to settle these claims before the state Workers' Compensation Appeals Board. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: J.. That the above recitations are true and correct. 2.That the expenditure of $60,000 from the Workers' Compensation Self-Insurance Fund is authorized for the settlement of said claims. 3.That the City Council approves the Request for Settlement Authority on file in the Human Resources Department. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 13th day of April, 2021, by the following vote, to wit: AYES: Hall, Blackburn, Acosta, Bhat-Patel. NAYS: None. ABSENT: Schumacher. MATT HALL, Mayor 4A/c\--11 8 0 P710 BARBARA ENGLESON, City Clerk (SEAL) April 13, 2021 Item #2 Page 3 of 3