Item F02BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: November 17, 2010
Bulk Item: Yes X No
Division: Employee Services
Department:, Employee Benefits
Staff Contact Person/Phone #: Maria Fernandez -Gonzalez Ext. 4448
AGENDA ITEM WORDING: Approval of a Workers' Compensation settlement in the amount
of one hundred thirty three thousand dollars, $133,000 (inclusive of attorney fees and costs) for
file #09092800-GH.
ITEM BACKGROUND: A private mediation was held at which time both parties agreed to settle the
case for $133,000 including attorney fees and costs contingent on the Monroe County BOCC approval.
The TPD (temporary partial disability) present value is approximately $20,000. The total indemnity
benefit exposure is approximately $200,000 and the exposure to impairment benefits is valued at
approximately $148,601.25. If the claimant was totally and permanently disabled, the County's
exposure is approximately $811,000. This settlement will resolve the claimant's heart claims and open
knee claim.
PREVIOUS RELEVANT BOCC ACTION: N/A
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval
TOTAL COST: $133,000 INDIRECT COST: BUDGETED: Yes X No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: $133,000 SOURCE OF FUNDS: Primarily Ad Valorem
REVENUE PRODUCING: Yes No X AMOUNT PER MONTH Year
APPROVED BY: County AttAy /Purchasing Risk Management
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DOCUMENTATION: Included Not Required
DISPOSITION:
Revised 7/09
AGENDA ITEM #
C
UNTYSMONROE
KEY WEST FLORIDA 33040
(305)294-4641
Office of the Employee Services Division Director
The Historic Gato Cigar Factory
1100 Simonton Street, Suite 268 r+
Key West, FL 33040 i
(305) 292-4458 — Phone
(305) 292--f.464 -Fax
TO: Board of County Commissioners
FROM: Teresa E. Aguiar,
Employee Services Directo
DATE: October 25, 2010
SUBJ: Workers Compensation Settlement
File #09092800-GH
BOARD OF COUNTY COMMISSIONERS
Mayor Sylvia I Murphy, District 5
Mayor Pro Tem Heather Carruthers, District 3
Kim Wigington, District 1
George Neugent, District 2
Mario Di Gennaro, District 4
This item requests approval for the settlement of a worker's compensation claim on a former MCSO
employee (currently a retiree) for a presumption claim filed from the result of three heart attacks, August
7, 2009; September 20, 2009 and September 28, 2009. This settlement will also resolve the claimant's
knee claim of January 20, 2009.
A private mediation was held on April 29, 2010 which included our Workers' Compensation attorney, the
claims adjuster, Benefits Administrator and a representative from the County Attorney's office. Both
parties agreed to settle the case for a total of $133,000 inclusive of attorney fees and costs contingent on
the Monroe County BOCC approval.
There were many things taken into consideration in this settlement agreement. The first was the potential
exposure of 26 weeks of past TPD (temporary partial disability) benefits valued at approximately $20,000
that would be paid out if the case was to go to trial and the final determination was in favor of the
claimant. The total indemnity benefit exposure is approximately $200,000 and the exposure to impairment
benefits is valued at approximately $148,601.25. If the claimant was eventually permanently and totally
disabled as a result of his current conditions, our exposure is approximately $811,000. Our potential
medical exposure on this claim is also significant, and complicated by the fact that the County must pay
for the medical exposure regardless.
An agreement was reached to resolve the claimant's heart claims for the sum of $130,000. It was also
agreed to resolve the claimants open knee claim for an additional $3,000. The two settlements total
$133,000 and reduces the County's future workers' compensation exposure but at the same time increases
the group health insurance exposure for future medical as the claimant is currently a retiree. It is
recommended that the BOCC approve this settlement in the amount of $133,000. If you have any
questions, please do not hesitate to contact me.