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HomeMy WebLinkAbout2022-05-17; City Council; ; Settlement of Workers’ Compensation Claim of Thomas Sugg for $100,000CA Review CKM Meeting Date: May 17, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Sarah Reiswig, Management Analyst sarah.reiswig@carlsbadca.gov, 442-200-4718 Judy von Kalinowski, Human Resources Director judy.vonkalinowski@carlsbadca.gov, 760-473-4670 Subject: Settlement of Workers’ Compensation Claim of Thomas Sugg for $100,000 District: All Recommended Action Adopt a resolution approving settlement of the workers’ compensation claim of Thomas Sugg for $100,000. Executive Summary/Discussion Thomas Sugg, former Public Works Senior Electrician, sustained a work-related injury during the course of his employment. This compromise and release settlement permanently resolves and permanently releases the city of liability for his open workers’ compensation claim. The terms and conditions of the proposed settlement are set forth in the request for settlement authority document, which is on file in the Human Resources Department. The terms and conditions were agreed upon by the Mr. Sugg and the city, and have been recommended by AdminSure Inc., the city's workers’ compensation administrator. This permanent disability payment is required under California Labor Code Section 4650, and “bad faith actions,” or failure to comply with the Workers’ Compensation Appeals Board Rules of Practice and Procedure, may result in penalties and litigation, so staff recommend timely action. Settlements exceeding $50,000 require the approval of the City Council in accordance with City Council Resolution 2015-086. Authorizing this compromise and release settlement permanently closes the open claim, and permanently releases the city from future liability of any new or further injury. The settlement provides a lump sum payment for both permanent disability and future medical care costs. May 17, 2022 Item #1 Page 1 of 3 Declining to settle through the compromise and release process would require the city to settle with a stipulation of award, which would entitle Mr. Sugg to bi-weekly permanent disability payments until the award is paid in full. The city will also have to continue paying for medical care as needed, and will remain liable in case of a new injury or if the injury gets worse, medical and utilization review costs, and treatment complications. Fiscal Analysis The cost of this settlement is $100,000. Funding for this settlement was included in the adopted budget for fiscal year 2021-22. Next Steps With the City Council’s approval, staff will file the appropriate documentation with the Workers’ Compensation Appeals Board for its review. Once the board approves the settlement, AdminSure will administer the payments. Environmental Evaluation This action does not require environmental review because it 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 or a reasonably foreseeable indirect physical change in the environment. Public Notification This item was noticed in keeping with the state's Ralph M. Brown Act and available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution May 17, 2022 Item #1 Page 2 of 3 Exhibit 1 RESOLUTION NO. 2022-109 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING SETTLEMENT OF THE WORKERS' COMPENSATION CLAIM OF THOMAS SUGG WHEREAS, AdminSure Inc., the city's third-party administrator, has recommended a settlement of the Workers' Compensation claim of Thomas Sugg; and WHEREAS, all parties have agreed to settle these claims before the 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 $100,000 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 17th day of May, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. � FAVIOLA MEDINA, City Clerk Services Manager (SEAL) May 17, 2022 Item #1 Page 3 of 3