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HomeMy WebLinkAbout2024-04-09; City Council; ; Additional Settlement of the Workers’ Compensation Claim of Daniel SteeleCA Review JRT Meeting Date: April 9, 2024 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Sarah Reiswig, Senior Human Resources Officer sarah.reiswig@carlsbadca.gov, 442-200-4718 Judy von Kalinowski, Human Resources Director judy.vonkalinowski@carlsbadca.gov, 760-473-4670 Subject: Additional Settlement of the Workers’ Compensation Claim of Daniel Steele Districts: All Recommended Action Adopt a resolution approving an additional settlement of the workers’ compensation claim of Daniel Steele in the amount of $22,330. Executive Summary Daniel Steele, a Utility Locator, sustained a work-related injury during the course of his employment. The claimant had a previous injury involving the same body part, which settled in 2022 via stipulated award with a $42,050 permanent disability award and future medical care benefits. Mr. Steele’s attorney filed a new claim reporting that the condition had gotten worse because of the second injury. This increased Mr. Steele’s permanent disability rating1 from 32% to 43%, thereby increasing his permanent disability award by $22,330, bringing the total permanent disability award to $64,380). Settlements exceeding $50,000 require the approval of the City Council in accordance with City Council Resolution 2015-086. Explanation & Analysis 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 Mr. Steele and the city, and have been recommended by AdminSure Inc., the city's workers’ compensation third-party administrator, and both parties’ legal counsel. 1 Permanent disability ratings, an assessment of the severity of a permanent impairment, are used in workers' compensation cases to assess the degree of damage that resulted from a work-related injury. April 9, 2024 Item #1 Page 1 of 3 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 further litigation, so staff recommend timely action. Fiscal Analysis The additional cost of this settlement is $22,330. Funding for this settlement was included in the adopted budget for fiscal year 2023-24. Next Steps With the City Council’s approval, staff will file the appropriate documentation with the Workers’ Compensation Appeals Board for its review and approval. 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. Exhibits 1.City Council resolution April 9, 2024 Item #1 Page 2 of 3 RESOLUTION NO. 2024-067 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING AN ADDITIONAL SETTLEMENT OF THE WORKERS' COMPENSATION CLAIM OF DANIEL STEELE WHEREAS, Daniel Steele sustained a work-related injury and received a Permanent Disability Award in 2022 in the amount of $42,050 along with future medical care benefits; and WHEREAS, Daniel Steele's permanent disability rating was increased after filing a new claim for the same body part; and WHEREAS, AdminSure Inc., the city's third-party administrator, has recommended an additional settlement of the workers' compensation claim of Daniel Steele in the amount of $22,330 (bringing the total permanent disability award to $64,380); 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 $22,330 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 9th day of April, 2024, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA. NONE. NONE. NONE. KEITH BLACKBURN, Mayor 011lr SHERRY FREISINGER, City Clerk (SEAL) Exhibit 1 April 9, 2024 Item #1 Page 3 of 3