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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 'JACt-161-Y1DrViii r ,f731 BARBARA ENGLESON, City Clerk (SEAL) May 18, 2021 Item #5 Page 3 of 3