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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. Page 2 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. Page 3 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. Page 4 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.