Agenda 03/27/2018 Item #16E203/27/2018
EXECUTIVE SUMMARY
Recommendation to approve and authorize the Chair to execute a Settlement Agreement and
Release of Claim #22-09171706535 filed by Terrance P. Smith and Ginny L. Smith in the amount of
$160,000.
OBJECTIVE: To settle all claims made against Collier County by Terrance P. Smith and Ginny L.
Smith and authorize the Chair to execute the Settlement Agreement and Release.
CONSIDERATIONS: This claim arises out of a sewer backup that occurred on September 17, 2017 at
the home of Terrance P. Smith and Ginny L. Smith located at 2801 Olde Cypress Drive, Naples, Florida
34119. The Smith’s allege that a lift station that serviced their residence failed to work properly. They
further alleged that this resulted in wastewater, which was being transported from other neighborhood lift
stations, to back up into their residence and ultimately leave behind several inches of standing wastewater
throughout their residence.
The County’s independent review from the County’s liability adjusting firm, Johns Eastern, revealed a
substantial back-up occurred into the residence and total damages incurred to the Smith’s real and
personal property, as well as the costs for clean-up, remediation, and temporary living arrangements, are
near the $350,000 range.
Subsequently, an investigation was initiated by the Risk Management Division and the County Attorney’s
Office to determine the possible causes of the loss and the various factors involved. Upon completion of
the investigation, the Risk Management Division and the County Attorney’s Office concurred that a
negotiated settlement is reasonable given the County’s exposure to liability, the significant amount of
actual damages incurred, the cost of defense, and the cost of expert retention.
After extensive negotiations, a tentative settlement in the amount of $160,000 has been reached pending
Board approval. The claimants have executed the Settlement Agreement and Release prepared by the
County’s Attorney’s office and it is presented to the Board for approval and execution by the Chair
pursuant to Resolution 2004-15. Staff recommends approval.
FISCAL IMPACT: Funds are budgeted and available in Fund 516, Property & Casualty Insurance and
the total impact will be $160,000.
GROWTH MANAGEMENT IMPACT: There is no Growth Management Plan impact associated with
this item.
LEGAL CONSIDERATIONS: This item has been approved as to form and legality, and requires
majority vote for approval. - KLN
RECOMMENDATION: To approve the tentative settlement of Claim #22-09171706535 filed by
Terrance P. Smith and Ginny L. Smith in the amount of $160,000 and authorize the Chair to execute the
Settlement Agreement and Release.
Prepared by: Jeffrey A. Walker, CPCU, ARM, Division Director, Risk Management
ATTACHMENT(S)
1. 806689 Executed Smith Release (PDF)
16.E.2
Packet Pg. 1495
03/27/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.E.2
Doc ID: 5050
Item Summary: Recommendation to approve and authorize the Chair to execute a Settlement
Agreement and Release of Claim #22-09171706535 filed by Terrance P. Smith and Ginny L. Smith in the
amount of $160,000.
Meeting Date: 03/27/2018
Prepared by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
03/07/2018 10:04 AM
Submitted by:
Title: Division Director - Risk Management – Risk Management
Name: Jeff Walker
03/07/2018 10:04 AM
Approved By:
Review:
Administrative Services Department Paula Brethauer Level 1 Division Reviewer Completed 03/07/2018 12:48 PM
County Attorney's Office Kevin Noell Level 2 Attorney Review Completed 03/07/2018 1:37 PM
Administrative Services Department Len Price Level 2 Division Administrator Review Completed 03/12/2018 1:04 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/12/2018 2:06 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/12/2018 4:33 PM
Office of Management and Budget Laura Wells Additional Reviewer Completed 03/14/2018 9:02 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 03/19/2018 9:28 AM
Board of County Commissioners MaryJo Brock Meeting Pending 03/27/2018 9:00 AM
16.E.2
Packet Pg. 1496
SETTLEMENT AGREEMENT
This Settlement Agreement (hereinafter referred to as the “Agreement”) is entered into and made
on this _____ day of ______________ 2018, by and between Terrence P. Smith and Ginny L.
Smith, (hereinafter referred to as “Claimants”) and Collier County Board of County
Commissioners (hereinafter referred to as the “County”).
W I T N E S S E T H:
WHEREAS, Claimants placed the County on Notice of Claim on September 29, 2017
(hereinafter referred to as “Notice” and incorporated to and attached to this Agreement as exhibit
“A”) regarding a sewage back-up into their residence at 2801 Olde Cypress Dr., Naples, FL 34119
on September 17, 2017; and the parties hereto have agreed that it is in their respective mutual
interests to resolve the dispute in lieu of incurring the time and cost of expensive and uncertainty
of litigation; and
WHEREAS, Claimants and the County desires to settle any and all disputes and claims
for any type of damages or injuries whatsoever that arise out of, from, or relate to or refer in any
way, whether directly or indirectly, now known or unknown, to the sewage back-up incident that
occurred on or around September 17, 2017 at their residence and the parties wish to walk away
from one another without any further right, duty, or obligation between them,
WHEREAS, Claimants and the County desire to reduce the settlement to writing so that
it shall be binding upon both parties, the parties’ respective owners, principals, elected officials,
officers, employees, ex-employees, agents, attorneys, representatives, insurers, spouses,
successors, assigns, heirs, creditors and affiliates and any other person or entity claiming, under or
through, the parties.
16.E.2.a
Packet Pg. 1497 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)
16.E.2.a
Packet Pg. 1498 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)
16.E.2.a
Packet Pg. 1499 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)
16.E.2.a
Packet Pg. 1500 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)
16.E.2.a
Packet Pg. 1501 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)
16.E.2.a
Packet Pg. 1502 Attachment: 806689 Executed Smith Release (5050 : Approval of a Settlement Agreement and Release of Smith Claim 22-09171706535)