HomeMy WebLinkAboutAdopt Resolution No. 2022-33 Amending the Settlement and Awa 75
2000 Main Street,
_ Huntington Beach,CA
92648
City of Huntington Beach -pp,�ov��
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File #: 22-420 MEETING DATE: 6/21/2022
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Sean Joyce, Interim City Manager
VIA: Brittany Mello, Administrative Services Director
PREPARED BY: Brittany Mello, Administrative Services Director
Subject:
Adopt Resolution No. 2022-33 Amending the Settlement and Award Authority of the Risk
Manager Related to Workers' Compensation Agreements
Statement of Issue:
Since 2003, the Risk Manager has been authorized to settle workers' compensation claims up to
$50,000. However, the existing resolution regarding settlement authority does not distinguish
between types of workers' compensation agreements. Additionally, the cost of providing medical
services to injured workers has steadily increased over the past eighteen years. Staff is seeking City
Council authorization to establish separate settlement and award authority for two types of workers'
compensation agreements: (1) non-discretionary Stipulations with Request for Award, and (2)
discretionary Compromise and Release Agreements. As proposed, the Risk Manager would be able
to authorize all non-discretionary Stipulations with Request for Award up to $150,000, while the
discretionary Compromise and Release Agreements would remain at the existing $50,000 limit.
Workers' compensation agreements above these amounts would continue to be presented to the City
Council for authorization.
Financial Impact:
Not applicable.
Recommended Action:
Adopt Resolution No. 2022-33, "A Resolution of the City Council of the City of Huntington Beach
Establishing Settlement and Award Authority of the Risk Manager and City Attorney."
Alternative Action(s):
Do not approve the resolution and continue with the current policy established in Resolution No. 2003
-92.
Analysis:
The City commonly enters into two types of workers' compensation agreements with injured
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File #: 22-420 MEETING DATE: 6/21/2022
employees to resolve claims. The first type is a Stipulation with Request for Award, which sets a
statutory, non-discretionary amount of permanent disability as rated by the State of California's
Disability Evaluation Unit. The second type is a Compromise and Release Agreement, which is a
final, discretionary settlement of the future medical care of the injured worker related to a claim.
In December 2003, the City Council adopted Resolution No. 2003-92, establishing the settlement
authority of the Risk Manager and the City Attorney related to general liability claims, and the
settlement authority of the Risk Manager related to all workers' compensation claims. Pursuant to
this resolution, the settlement authority for all workers' compensation claims is $50,000. Any
proposed settlements above this amount are brought to the City Council in Closed Session for
approval. Resolution No. 2003-92 does not specifically address Stipulations with Request for Award.
The proposed resolution would distinguish between non-discretionary Stipulations with Request for
Award and discretionary Compromise and Release Agreements, and establish separate settlement
and award authorities accordingly.
For Stipulations with Request for Award, the State of California's Disability Evaluation Unit sets the
amount that the employer must compensate the injured worker based on their evaluation of the
medical reporting. This is not a negotiated amount to determine a settlement, rather, it is the amount
that the employer is obligated to pay based on the State's requirements. Since these amounts are
non-discretionary, the proposed resolution would set a separate award authority to allow
administrative approvals of these awards up to $150,000. While higher award amounts are still
dictated by statute, awards above $150,000 would be brought to the City Council for situational and
budgetary awareness of outlying cases.
An internal survey of comparable cities in our market confirmed that the vast majority do not seek
City Council approval for Stipulations with Request for Award, including Anaheim, Santa Ana, Irvine,
Garden Grove, Orange, Fullerton, and Newport Beach; only Costa Mesa requires City Council
authorization.
For Compromise and Release Agreements, an amount is negotiated to buy out future medical
exposure related to a workers' compensation claim, in addition to the amount of Permanent Disability
that is paid out, as rated by the State's Disability Evaluation Unit. Because these agreements are
negotiated, they are discretionary by nature.
The Risk Manager is authorized to enter into Compromise and Release Agreements up to $50,000.
Staff is not proposing any changes to this existing settlement authority.
Environmental Status:
Not applicable.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2022-33
2. Resolution No. 2003-92 with tracked changes
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File #: 22-420 MEETING DATE: 6/21/2022
3. Resolution No. 2003-92
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RESOLUTION NO. 2022-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING SETTLEMENT AND AWARD AUTHORITY OF THE RISK MANAGER
AND CITY ATTORNEY
WHEREAS,the City of Huntington Beach on January 3, 1997,by Resolution No. 4577
authorized the establishment of a Claims Review Committee and said committee was
established and functioning since 1978; and
The City of Huntington Beach on August 22, 1983, by Resolution No. 5302, authorized
the City Attorney to settle claims valued at $5,000.00 or less; and
Resolution No. 4577 was amended by Resolution No. 5383 on June 4, 1984; and
Resolution No. 5383 was amended by Resolution No. 6080 on November 6, 1989; and
Resolution No. 2003-92 deleted the Claims Review Committee, increased the settlement
authority of the Risk Manager and City Attorney, and repealed Resolution Nos. 4577,
5302, 5383, and 6080 on December 15, 2003; and
The City Council of the City of Huntington Beach wishes to differentiate between
discretionary and non-discretionary settlement and award authority and to increase the
authority of the Risk Manager to enter into workers' compensation agreements by repealing
Resolution No. 2003-92, and replacing it with the following resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:
SECTION 1. When the City of Huntington Beach is a legal claimant or when it is
determined that the City is partially or fully liable by reason of an incident, accident, or any other
cause of action resulting in a claim, potential claim, or suit, excluding workers' compensation,
against the City, the claims may be settled as follows:
(a) The Risk Manager or City Attorney may authorize settlement in an amount not to
exceed Fifteen Thousand Dollars ($15,000.00).
(b) The City Attorney, with the consent of the Risk Manager, may authorize
settlement in an amount not to exceed Fifty Thousand Dollars ($50,000.00) in
accordance with Government Code Section 935.4, and thereupon execute and
endorse all documents and drafts necessary to effect said settlement.
SECTION 2. The City enters into two types of workers' compensation agreements.
The first type is a Stipulation with Request for Award, which sets a statutory, non-discretionary
amount of permanent disability as rated by the State of California's Workers' Compensation
Disability Evaluation Unit. The second type is a Compromise and Release Agreement, which is
a final, discretionary settlement of the future medical care of the injured worker related to a
Res. No. 2022-33
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on June 21, 2022 by the following vote:
AYES: Bolton, Posey, Delgleize, Carr, Moser, Kalmick
NOES: None
ABSENT: Peterson
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
RESOLUTION NO. 2022-33
claim. When the City of Huntington Beach seeks to enter into workers' compensation
agreements, the claims may be settled as follows:
(a) The Risk Manager is authorized to agree to resolve workers' compensation
claims as relates to Stipulations with Request for Award in an amount not to
exceed One Hundred and Fifty Thousand Dollars ($150,000), and thereupon
execute and endorse all documents and drafts necessary to effect said award.
(b) The Risk Manager is authorized to settle workers' compensation claims as relates
to Compromise and Release Agreements in an amount not to exceed Fifty
Thousand ($50,000), and thereupon execute and endorse all documents and drafts
necessary to affect said settlement.
SECTION 3. Upon receipt of a written request from the City Attorney or Risk
Manager, specifying the amount agreed upon to settle a claim, the City Treasurer shall cause a
warrant to be drawn on the City treasury therefore. The City Attorney shall approve as to form
Compromise and Release Agreements prior to payment to a claimant or his or her attorney.
SECTION 4. Resolution No. 2003-92 is hereby repealed.
PASSED AND ADOPTED by the City Council of Huntington Beach at a regular
meeting thereof held on the day of (lu/Lg�l 2022.
s
Mayor
REVIEWED AND APPROVED: APPROVED AS T ORM:
Interim City Manager 7"'ttorney
INITIATED AND APPROVED:
Director of Administrative Services
2
22-11341/285987
83
RESOLUTION NO. 2003-92
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY'OF HUNTINGTON BEACH
ESTABLISHING SETTLEMENT AUTHORITY OF
THE RISK MANAGER AND CITY ATTORNEY,
AND DELETING THE SETTLEMENT COMMITTEE
WHEREAS,the City of Huntington Beach on January 3, 1997,by Resolution No. 4577
authorized the establishment of a Claims Review Committee and said committee was established
and has been functioning since 1978; and
The City of Huntington Beach on August 22, 1983, by Resolution 5302, authorized the City
Attorney to settle claims valued at $5,000,00 or less; and
Resolution No. 4577 was amended by Resolution No. 5383 on June 4, 1984; and
Resolution No. 5383 was amended by Resolution No. 6080 on November 6, 1989; and
The City Council of the City of Huntington Beach wishes to delete the authority of the
Claims Review Committee and increase the authority of the Risk Manager and City Attorney to
enter into settlement agreements by repealing Resolution Nos. 4577, 5302, 5383 and 6080, and
replacing them with the following resolution,
NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:
SECTION 1. There is hereby deleted the Claims Review Committee of the City of
Huntington Beach.
SECTION 2. When the City of Huntington Beach is a legal claimant or when it is
determined that the City is partially or fully liable by reason of an incident, accident or any other
cause of action resulting in a claim,potential claim, or suit, excluding workers' compensation, -
against the City,the claims may be settled as follows:
(a) The Risk Manager or City Attorney may authorize settlement in an amount not to
exceed Fifteen Thousand Dollars($15,000.00).
(b) The City Attorney, with the consent of the Risk Manager, may authorize settlement
in an amount not to exceed Fifty Thousand Dollars ($50,000.00)in accordance with
Government Code Section 935.4,and thereupon execute and endorse all documents
and drafts necessary to effect said settlement.
SECTION 3. The Risk Manager is authorized to settle workers' compensation claims in an
amount not to exceed Fifty Thousand Dollars($50,000.00), and thereupon execute and endorse all
documents and drafts necessary to effect said settlement.
03reso/settlement authority 11/19/03 4
83
84
Res.No. 2003-92
SECTION 4. Upon receipt of a written request from the City Attorney or Risk Manager,
specifying the amount agreed upon to settle a claim,the City Treasurer shall cause a warrant to be
drawn on the City treasury therefore. The City Attorney shall approve as to form agreements of
compromise settlement and release prior to payment to a claimant or his or her attorney.
SECTION 5. Resolution Nos.4577, 5302, 5383, 6080 and all resolutions in conflict
herewith are hereby repealed.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular
meeting thereof held on the 15th day of December 2003.
ATTEST:
City Clerk r
REVIEWED AND APPR��O��VED: INITIATED AND APPROVED AS TO FORM:
cpam J
City A ministrator t<<1q�0 City Attorn
03reso/sctkmem authority 11/19/03 5
84