HomeMy WebLinkAbout2021-05-18; City Council; ; Settlement of the Workers’ Compensation Claims of Arthur Viera for $450,000 Meeting Date: May 18, 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 Arthur Viera for
$450,000
District: All
Recommended Action
Adopt a resolution approving the settlement of the workers’ compensation claims of Arthur
Viera for $450,000
Executive Summary / Discussion
Arthur Viera, a retired police officer, sustained work-related injuries in the course of his
employment. This compromise and release settlement permanently resolves and fully releases
the city of liability for his two 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 and the city’s workers’ compensation defense attorney. The applicant,
applicant attorney, defense attorney, excess insurance carrier 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 open claims and fully releases the city from future liability of new or further injury
claims. 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 stipulated award or findings and award issued by a workers’ compensation appeals
May 18, 2021 Item #5 Page 1 of 3
board judge following a trial. Mr. Viera would be entitled to retroactive permanent disability
benefits and biweekly permanent disability payments moving forward, until the award is paid in
full. Additionally, the city will continue paying for medical care as needed and will remain liable
for new and further injury exacerbation, litigation costs, medical, utilization review costs and/or
treatment complications.
Fiscal Analysis
The cost of the settlement is $450,000. Funding for this is included in the adopted fiscal year
2020-21 budget. CNA, the city’s excess insurance provider at the time of injury, has confirmed it
will reimburse the city $263,000. Additional reimbursement will be requested from the State
Compensation Insurance Fund. Total out of pocket costs for settlement, after reimbursements,
will be $187,000 or potentially substantially less.
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.
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
May 18, 2021 Item #5 Page 2 of 3
RESOLUTION NO. 2021-119
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING SETTLEMENT OF THE WORKERS' COMPENSATION CLAIMS OF ARTHUR
VIERA
WHEREAS, AdminSure Inc., the city's third-party administrator, has recommended a settlement
of the workers' compensation claims of Arthur Viera; 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:
1.That the above recitations are true and correct.
2.That the expenditure of $450,000 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 18th day of May, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
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BARBARA ENGLESON, City Clerk
(SEAL)
May 18, 2021 Item #5 Page 3 of 3