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)
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