CA Review CKM
Meeting Date: April 18, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Sarah Reiswig, Management Analyst
[email protected], 442-200-4718
Judy von Kalinowski, Human Resources Director
[email protected], 760-473-4670
Subject: Settlement of Workers’ Compensation Claim of Alexander Shaner District: All
Recommended Action
Adopt a resolution authorizing settlement of the workers’ compensation claim of Alexander Shaner in the amount of $218,442.
Executive Summary
Alexander Shaner, a former Oceanwater Lifeguard, sustained a work-related injury during the course of his employment. The City Council is being asked to approve a stipulated award that entitles Mr. Shaner to a permanent disability award of $218,442 and future medical care.
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. Shaner and the city, and have been recommended by AdminSure Inc., the city's workers’ compensation administrator, and Safety National, the city’s excess insurance carrier.
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 cost of this settlement is $218,442. Funding for this settlement was included in the adopted budget for fiscal year 2022-23. This claim has pierced the Self-Insured Retention rate.
Therefore, excess insurance, through Safety National, will reimburse future expenses.
April 18, 2023 Item #4 Page 1 of 3
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 18, 2023 Item #4 Page 2 of 3
RESOLUTION NO. 2023-112
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING SETTLEMENT OF THE WORKERS'
COMPENSATION CLAIM OF ALEXANDER SHANER IN THE AMOUNT OF $218,442
WHEREAS, AdminSure Inc., the city's third-party administrator, has recommended a settlement of the Workers' Compensation claim of Alexander Shaner; and WHEREAS, all parties have agreed to settle this claim 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 $218,442 from the Workers' Compensation Self-Insurance Fund is authorized for the settlement of said claim.
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 April, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
KEITH BLACKBURN, Mayor
L SHERRY FREISINGER, City Clerk
1).., (SEAL)
Exhibit 1
April 18, 2023 Item #4 Page 3 of 3