HomeMy WebLinkAboutLandfill policy 4.19.16Page 1
Administrative
Policies and Procedures
Title: Financial Policies Resolution No.:
Section: Landfill Billing/Receivable Date of Version: April 2016
SECTION I - POLICIES
A. The City of Iowa City is willing to create Landfill Charge Accounts for certain
landfill customers who demonstrate credit worthiness, as determined by the
City in its sole discretion, in order to facilitate an efficient transaction at the
landfill.
B. The Landfill Charge Account grants the customer the use of City credit for
Iowa City Landfill solid waste disposal charges in accordance with the City’s
terms and limits.
C. The use of a Landfill Charge Account is a privilege, not a right, and thus the
City shall retain the right to suspend or terminate use of the charge account
for any reason, at any time.
D. A Landfill Charge Account is non-transferable and non-assignable.
E. Landfill customers that do not have a Landfill Charge Account must pay for
services in full at the time of utilizing the Iowa City Landfill.
SECTION II - PROCEDURES
A. Landfill Charge Account Application
1. An applicant for a Landfill Charge Account must complete and submit the
Application for Landfill Charge Account, including the Landfill Charge
Account Agreement, and submit it to the designated Customer Service
Representative in the Revenue Division of the Finance Department.
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2. The Application and Agreement documents must be signed by the
responsible individual or legal business representative only.
3. There is no application fee to apply for a Landfill Charge Account.
4. Upon receipt of the Application for Landfill Charge Account, the Customer
Service Representative will review the application and will perform a credit
check using a professional credit rating agency.
5. The Revenue & Risk Manager will use the Application for Landfill Charge
Account, the applicant’s credit history with the City, and the credit agency
report to determine if the application should be approved, the level of
credit authorized, and/or the need for additional security.
a. If the review indicates increased risk of collection, the applicant may be
required to provide additional security in the form of a Letter of Credit
or a security deposit in an amount determined by the Revenue & Risk
Manager.
6. The Revenue & Risk Manager will categorize the applicant as a
Commercial or Non-commercial charge account at the time of the
Application approval which will determine the account’s billing frequency.
7. Following approval of the Application by the Revenue & Risk Manager, the
Application and Agreement will be signed by the Revenue & Risk Manager
or Finance Director and forwarded to the City Attorney’s office for review,
approval, and execution.
8. Upon approval of the Landfill Charge Account Agreement by the City
Attorney’s office, the Customer Service Representative shall:
a. Provide a fully executed copy of the Agreement to the applicant and
maintain the original for the City’s records; and
b. Create the Landfill Charge Account in the applicant’s name by entering
the applicant name and Landfill Charge Account information into the
Compuweigh and Munis systems; and
c. Issue a Landfill Charge Account permit to the applicant that is
necessary for identification at the Landfill.
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B. Landfill Charges
1. The Landfill Charge Account customers will check in at the landfill scale
house to verify their Landfill Charge Account permit and account standing.
2. The Landfill Charge Account customer must present its permit to the Scale
House Operator for inspection. The Landfill Charge Account customer will
not be allowed to charge solid waste disposal fees to its Landfill Charge
Account if the permit is not present.
3. Following the disposal of waste at the Landfill, the solid waste disposal
fees from each visit will be calculated and be charged to the Landfill
Charge Account and stored as ‘tickets’ in the Compuweigh system.
C. Billing and Collections
1. The Customer Service Representative in the Revenue Division will
download all landfill charge ‘tickets’ from the Compuweigh system and
upload them into Munis on a weekly basis.
2. The Customer Service Representative will prepare and issue statements
to the Landfill Charge Account holders using Munis. The date of issue for
a statement is the Statement Date.
3. Commercial customers will be issued statements weekly. Non-
commercial customers will be issued statements monthly.
4. All statement due dates shall be payable fifteen (15) calendar days after
the Statement Date.
D. Delinquent Charge Accounts and Collections
1. Delinquency: If the statement balance is not paid in full when due, the
Landfill Charge Account will be deemed delinquent.
a. A service charge of three-fourths percent (3/4%) will be added to the
outstanding amount with the next billing cycle. This service charge will
be added every additional 30 calendar day period outstanding
thereafter.
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2. Notice to Cure: If payment in full is not received by the City within 60 days
after the Statement Date, the City will give written notice to cure, giving the
Landfill Charge Account customer 30 days to cure the default.
a. The Customer Service Representative shall immediately notify the
Director of Transportation & Resource Management of this notice to
cure the default.
b. The Revenue & Risk Manager may suspend use of the Landfill Charge
Account after consulting with the Director of Transportation &
Resource Management.
c. If payment is received or a payment agreement is executed within the
30 day period, the account may be reinstated and a delinquency
deposit may be required. The delinquency deposit may be returned
after 12 consecutive months of timely payments.
3. Failure to Cure: If the Landfill Charge Account customer fails to cure the
default within 90 days after the Statement Date, the Landfill Charge
Account holder shall be deemed to no longer be in good standing with
regard to its Landfill Charge Account, and the Landfill Charge Account will
be terminated.
a. The Landfill Charge Account customer must reapply for a credit
account following a termination of credit;
b. The Landfill Charge Account customer will not be allowed to reapply
until 12 months after payment in full of the outstanding account
balance is tendered.
4. Accounts Receivable Adjustments and Write-Offs: All account balances
that are 120 days past due or older may be adjusted or written-off from the
City’s accounts receivable ledger. The Revenue & Risk Manager shall
review and approve all adjustments and write-offs under $10,000. The
Finance Director shall review and approve all write-offs equal to or greater
than $10,000. Any necessary adjustments or write-offs will be entered into
Munis by the Customer Service Representative.
5. Collections: The Customer Service Representative or Revenue & Risk
Manager shall generate a report of landfill accounts receivable write-offs
and provide it to the City Manager, the City Attorney, and the Finance
Director prior to submission to a collection agency for review and
approval. Written-off account balances will be submitted to a collection
agency not less than quarterly.