HomeMy WebLinkAbout2005 05 09 Consent 201, Billing Dispute Settlement Unum Life Insurance Company
CllY OF WrNTER SPRINGS
CITY COMMISSION
REGULAI~ MEETING- MAY 9, 20():'i
CONSENT AGENDA ITEM "201"
PAGE10F2
COMMISSION AGENDA
ITEM 201
Consent X
Informational
Public Hearing
Regular
May 9,2005
Regular Meeting
Mgr.~' Dept.
Authorization
REQUEST: The City Manager requesting the City Commission to approve a billing
dispute settlement between the City and Unum Life Insurance Company.
PURPOSE: This Agenda Item is needed to bring final resolution to a billing dispute between
the City and Unum Life Insurance Company.
CONSIDERATIONS; An error on Unum's part involving the misinterpretation of contract
language resulted in Un1ll11 erroneously refunding the City $5,145.51. Unum has agreed not to
seek repayment of the refund, and donate it to the City.
Unum is requesting, but not demanding, that the funds be utilized in such a way that Unum could
get a tax credit for the donation. For example, the City could accept the donation from Unum to
help fund the July 4th Celebration, the Concert in the Park, or the Veteran's memorial, etc. For
tax credit purposes the Veteran's Memorial project is probably the best alternative.
The Commission has three options:
1. Return the money.
2. Keep the money, and record it as miscellaneous revenue not affording Unum a tax credit.
3. Designating the money for a public purpose for which Unum could get a tax credit.
FUNDING: N/A
CITY OF WINTER SPRrNGS
CITY COMMISSION
REGULAR MEETING - MAY 9, 2005
CONSENT AGF.NnA ITEM "201"
PAGt20F2
RECOMMENDATION;
It is recommended that the City Commission approve the dispute settlement regarding the Unum
under hilling as set out in the May 1, 2005 letter from Unum's Director of Services and
Administration, Angela Williams, attached hereto, and designate the $5,145.51 over payment for
the Veteran's memorial maintaining lhe total commitment from the City at an amount not to
exceed $50,000.
ATTACHMENT;
May 2, 2005 letter from Angela Williams
May 1, 2005 Letter from Angela William
April 26, 2005 email from Angela Williams
COMMISSION ACTION;
UNUMPROVIDE~
~ ~/
May 1,2005
Ronald W. McLemore
City Manager
City of Winter Springs
1126 c. State Road 434
Winter Springs, Florida 32708
Dear Mr. McLemore
At your and your agent's request we have conducted a review of your acoount, and confirmed
your Finance Department's calculations indicating thai Unum under.billed the City In 1he amount
01 $5,145,51 for services providEld from 01/0612004 to 07/01/2004.
Due to the inconvenience that our error has caused you, Unum will nol be requesting a refund of
the $5,145.51 under-billing amount to which we are "ntllled under the contract.
However, If the City should decide to use these funds for some purpose the.t will afford Unum a
tax benefit, we would appreciate documentation of thai use.
Once again, allow me 10 offar my apOlogIes lor lhe inconvenience this matter has caused you.
Sincerely,
C~
"-
Angela Williams
Director of Services &. Administration
4830 W, Kennedy Blvd, Suite 900, n:lmpa, FL 33609
Phone: 813-207"2605 Fax: 813-207-2691
UNUM~
May 2. 2005
Ronard W. McJ..emore
City M.na~r
City of Winter sprln98
'126 Em State R* 434
Winter Springs, Fl 32708
Cear Mr. Mol.mote:
10 r6SpOMe 10 ycur ql.fe&lfon regarding my eme" of April 26, 2005 10 Fkltfy Bellu8, please b.
adYlsed that w. verified lhat the effective d.!!lte that w.. shown an th. Employee Paid Lie
Insurance contract was erroneoue.ht ehown to be 07101/2004. Ae fun".,. dated In the small,
Unum Provident has corr-.cled the contract 10 shaw the proper 0110112004 effectIve datB.
Slnc,,~-:.:::2
~.
Director of Service & Administration
-
4830 W. Kennedy BlVd, Sutte 900. Tamp.A, r:L 33609
Phone: 913.207..:2806 Fax.: a,3-207.2691
.
Page 1 of 1
Subj:
Date:
From:
To:
FW: City of Winter Springs
4/26/20052:10:16 P.M. Eastern Standard Time
AS.w.illiams@UDLJmprQv,icJ~DL<::Q.m
f.t;lelJ.u,$@~.Q.LQQrn
This note is to recap our recent telephone conversation regarding City of Winter Springs Employee Paid
Voluntary Life Insurance on policy # 580528. When we met last week to discuss some outstanding items you
brought to my attention thai our UnumProYident Sales Rep had previously stated in writing that the refund check
was for the Employer Paid Life Insurance however, after review we have determined that was an incorrect
statement and the refund is for the Employee Paid coverage. We also verified that the effective date of this
contract is 7/01/2004. As you and I discussed the correct effective date should be 01/01/2004.
UnumProvident will correct the effective date to reflect 01/01/2004 and issue a new policy.
Since this was an error in UnumProvident's processing we will not be requiring any additional premiums to be
paid by City of Winter Springs and we will not require the refund check we recently issued to City of Winter
Springs to be returned to us.
Please accept my apologies for the problems you have encountered and let me know if there is anything else I
need to do for this group.
Angela Williams
Director of Service & Administration
Tampa & Ft. Lauderdale Sales Office
Phone (813) 207-2605
Fax (813) 207-2691
Cell Phone (813) 728-7661
Tuesday, April 26, 2005 America Online: FBellus
CITY OF WINTER SPRINGS
407 327 4753
P.GU01
407- nf.o?'~
PTO
GROUP: 00 580528 REQUESTER CODZ: 12306 OMA.l
DIVISION, 0001
PAYEE: CITY OF WINTER SPRINGS
TOTAL CHECK AMOUNT IS: $5.1.5.51
REASON paR REPllND: PAYMENT BEYOND TERMINATION
IF YOU HAVE ANY QUESTIONS PLEASE CALL 1-800~421.0344
PORM NO 12.9-03 JODAGOl.230.1
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