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Item D11 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: JULY 19, 2006 Division: EMPLOYEE SERVICES Bulk Item: Yes -X- No Department: BENEFITS OFFICE Staff Contact Person: MARIA Z. FERNANDEZ AGENDA ITEM WORDING: APPROVAL OF A WORKERS' COMPENSATION SETTLEMENT IN THE AMOUNT OF ONE HUNDRED TWENTY FIVE THOUSAND DOLLARS, $125,000.00 (INCLUSIVE OF ATTORNEYS FEES AND COST) FOR FILE #04111000-GH. ITEM BACKGROUND: SEE ATTACHED MEMORANDUM PREVIOUS RELEVANT BOCC ACTION: N/A CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: APPROV AL TOTAL COST: $125,000.00 BUDGETED: Y es ~ No COST TO COUNTY: $125.000.00 SOURCE OF FUNDS: Primarily Ad Valorum REVENUE PRODUCING: Yes T PER MONTH Year APPROVED BY: County Atty DIVISION DIRECTOR APPROVAL: Teresa E, Aguiar Division Director Employee Services DOCUMENTATION: Included X Not Required_ DISPOSITION: AGENDA ITEM Revised 2/05 Employee Services Division Benefits Office 1100 Simonton Street, Room 2-268 Key West, Florida 33040 Phone (305) 292-4448 Facsimile (305) 292-4452 BOARD OF COUNTY COMMISSIONERS MAYOR Charles "Sonny" McCoy, District 3 Mayor Pro-tem Dixie M. Spehar, District 1 Glen Patton, District 5 George Neugent, District 2 David P. Rice, District 4 OKll~r.Y ~o~~~~E (305) 294-4641 MEMORANDUM To: Tom J. Willi, County Administrator Date: Teresa E. Aguiar, Employee Services Division Maria Z. Fernandez-Gonzalez, Sr. Administrator, B~ June 27,2006 Thru: From: Re: Our File #0411l000-GH Approval is being requested for the settlement of a workers' compensation claim on a former MCSO employee, heart injury occurred 09/21/2004. This case involves the Section 112.18 heart disease presumption, The claimant is a protected class member and potentially entitled to the benefit of the presumption. There were three additional elements for application of the presumption to satisfY and these were met by the claimant. Accordingly, the Section 112.18 presumption of compensability applies to the claimant's heart condition and we can only rebut the presumption if we can show by clear and convincing evidence the claimant's heart condition was the result of a non-work related exposure or event. In our settlement analysis it was estimated that our medical exposure could be approximately in the range of $156,000. Due to the claimant's high impairment rating our impairment benefit exposure alone is somewhere between $58,000 and $88,000. The present value ofPTD (permanent total disability) exposure would be somewhere between $330,000 and $370,000. In addition to the aforementioned exposures, we also faced exposure to death benefits. If the claimant were to pass away from a heart condition within five years, we would be exposed to death benefits of approximately $157,500. The claimant's initial demand was $500,000. The claimant has accepted our proposed settlement of$125,000 inclusive of all fees and costs contingent upon the Monroe County Board of County Commissioners' approval. Our workers' compensation attorney, county attorney's office and I feel this settlement is in the best interest of Monroe County and we look forward to receiving the Board's approval on our proposed settlement. Please do not hesitate to contact me with any questions. Thank you.