COM 0521.010 2002-2004 - Laserfiche WebLink

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Other changes being considered are adding a provision, similar to that for the rubbish removal services, to all County contracts so that any vendor having any delinquent account with the County shall have payments due from the County applied to their account until it becomes current. We are also looking at amending the County Code to shorten the delinquency periods so that we don't have to wait until an account is 60 days past due to start charging interest or to deny access to the landfill. When an account becomes past due, the debtor will receive a past due notice. If the account remains delinquent, the debtor will receive a final notice stating that if payment is not received by a specified date, the account will be referred for collections. Accounts over 90 days past due are referred to the Office of Corporation Counsel, if the balance is over $1,000. Corporation Counsel will then determine the best course of action. This may be reaching a payment plan agreement with the debtor, filing for a judgment against the debtor, or possibly writing off the account if they determine that it is uncollectible (such as a deceased debtor with no estate). Corporation Counsel also has a new paralegal assigned to collections, which is an added resource that is really helping to move the collection efforts forward. Delinquent accounts under $1,000 are referred to a collection agency, where one of the contract requirements is that the delinquent balances be reported to the Credit Bureaus. From the time the account becomes past due until it is referred for collections, the SWD staff responsible for billing is pursuing collection on these accounts. This includes phone calls and follow up calls to the debtor, which have had some very positive results. 4. What is the nature (profile) of the debtors (commercial, single residential, size of business, credit reports)? The debtors are generally commercial accounts. The businesses vary in size. 5. What is our procedure for credit checks? We do not currently conduct credit checks. This has been considered as a new policy that could be implemented. However, we do not currently have the resources to conduct the credit checks and there is a greater concern with the potential effect on illegal dumping. 6. Do we continue to allow debtors to dispose? Debtors are denied access when their account becomes 90 days past due. 7. Do we charge interest and penalties? We charge interest at a rate of 18% per annum on accounts over 60 days past due, as specified in the Hawaii County Code. The Code would need to be amended to charge penalties. PAGE General Fund Subsidy versus Tipping Fees