1 POMONA FRANCHISE
COLLECTIONS PROGRESSION PROCEDURES & WRITE-OFF POLICY
I. STANDARD APPROACH TO COLLECTIONS – COMMERCIAL & TEMP SERVICES II. COMMERCIAL ACCOUNTS TIMELINE
III. STANDARD APPROACH TO COLLECTIONS – RESIDENTIAL & MFD W/CARTS SERVICES IV . RESIDENTIAL ACCOUNTS & MFD W/CARTS SERVICES
V . TIMELINE AND RESPONSIBILITY SCHEDULE
Attachment No. 2
2 Arakelian Enterprises, Inc.
POMONA FRANCHISE | COLLECTIONS PROGRESSION PROCEDURES & WRITE-OFF POLICY I. STANDARD APPROACH TO COLLECTIONS – COMMERCIAL, MFD W/BIN SERVICE & TEMP SERVICES The Arakelian Enterprises, Inc. (“AEI”) Accounts Receivable Department maintains a structured and disciplined approach towards managing
delinquent accounts receivable. The detailed progressive steps to managing delinquent accounts receivable approach for Commercial
accounts are described below:
» Invoice sent
» If invoice is not paid within 30 days, phone call(s) are initiated (manual and/or robocall campaigns) » 72 hour notice
is sent advising account will be placed on Stop Service if not paid. » Late f ees will become applicable on day 60
» Account is placed on Stop Service and delinquent account list is sent to City for Code Enforcement intervention » Final demand letter is sent
» Attorney letters may be applicable at this time
» Account is cancelled and equipment is removed
» After account is cancelled, additional internal collection efforts are maintained » If no success in collecting account or putting it on a payment plan, the account is written off to bad debt » The
bad debt account is sent to an outside third party collection agency II. COMMERCIAL
ACCOUNTS TIMELINE
To help visualize the timeline, we’re assuming we bill the account on July 1st. » 7/1 - Customer is billed monthly in advance.
» 8/1
- Customer billed for next month in advance with a balance forward amount. The s tatement reads, “Your account is delinquent, ple
ase contact our office.” Phone calls can begin.
» 8/21 - “72 Hour Notice” is generated and mailed to the customer . This customer will go on stop service at the end of the month if no payment (or arrangements agreed to by a Collections Agent) is made. » 9/1
- The account is placed on “Stop Service” and a new billing invoice is generated and mailed to the customer with the notice, “
Your account is now on stop service.” Calls are placed to customers (up to three times/we ek). Dispatch is notified to make no pick- ups for these customers. Late fees are now applied.
» 9/10 - “Final Demand L
etter” is generated and mailed. Internal Collections efforts continue. » 10/1
- Account is cancelled and the equipment is scheduled to be removed. Internal Collections efforts continue » 10/15 to 10/20 - attorney letter may be applicable – priority of letters is determined by dollar amount owed. » 11/1 through 11/30 – Internal collection efforts continue. (i.e. manual OB calls, robo-call campaigns) » 12/1
- account is written off to bad debt and transferred to an outside collection agency for further collection efforts. » A colle
ction account is placed on their credit report
III. S
TANDARD APPROACH TO COLLECTIONS – RESIDENTIAL & MFD W/CARTS SERVICES The Arakelian Enterprises, Inc. (“AEI”) Accounts Receivable Department maintains a structured and disciplined approach towards managing
delinquent accounts receivable. The detailed progressive steps to managing delinquent accounts receivable approach for Residential accounts are descri bed below:
» Invoice sent
» If invoice is not paid within 30 days, phone call(s) are initiated (manual and/or robocall campaigns) » Re
minder Letter is sent
» Late f ees will become applicable on day 60
» Internal collection efforts continue (i.e. manual OB calls, Reminde r letters, Robo-Call campaigns) » On or around May 1st of each year or at such other time as City and Athens shall agree upon, notify the City in writing with a list of qualifying delinquent accounts to place and coll
ect on the tax roll.
3 » The City agrees that it shall adopt the necessary ordinance authorizing the collection of eligible delinquent SFD service recipients on the tax roll,
hold all hearings, timely publish all notices, and to timely make all filings required. A “qualifying delinquency” has been established as a SFD se
rvice recipient that is at least sixty (60) days in arrears.
IV. RESIDENTIAL ACCOUNTS & MFD W/CARTS SERVICES
T
o help visualize the timeline, we’re assuming we bill the account on July 1st. » 7/1 - Customer is billed quarterly in advance (Jul-Sept). » 10/1- Customer is billed in advance for next quarter (Oct-Dec) with a balance forward amount. The statement reads, “Your account is del
inquent, please contact our office.” Internal Collection efforts to begin. (i.e. phone calls and reminder letters) » 10/10 – Phone calls can begin.
» 10/21 - “Reminder Letter” is mailed.
» 1/1 - Customer is billed for next quarter in advance with a balance forward amount. The statement reads, “Your account is delinquent, please contact our office.” Internal Collection efforts are maintained. (i.e. phone calls and reminder letters continue) » 5/1 – Athens to provide the City with the list of “qualified delinquent” accounts. » TBD - The city to provide Athens with a yearly agenda outlining the proceedings to place charges on Tax Roll. » ALL delinquent accounts will be reported to the City monthly, in addition to the processes outlined above.
DATE EVENT RESPONSIBLE
PARTIES