HONOLULU — The city has issued a notice of default to All Island Wreckers, the company that holds the its exclusive contract for towing services, due to the alleged misuse of a $900 hazardous conditions fee that resulted in overbilling on hundreds of invoices over a six-month period last year. 

What You Need To Know

  • The action is the first step in terminating the contract, according to Department of Customer Services director Kim Hashiro
  • An audit of 782 invoices issued between January 2023 and June 2023 found that the company had improperly applied the $900 fee allowed under the contract for situations in which the company had to deal with especially difficult circumstances like excavating or removing vehicles from off-road locations like rivers and streams
  • All Island has until July 11 to “correct the default,” which must include funding and developing a procedure for administering the refunds, or the city will move forward with terminating the contract
  • The city has sent letters to the affected vehicle owners explaining the situation and what they must do to receive a refund

 

The action is the first step in terminating the contract, according to Department of Customer Services director Kim Hashiro.

An audit of 782 invoices issued between January 2023 and June 2023 found that the company had improperly applied the $900 fee allowed under the contract for situations in which the company had to deal with especially difficult circumstances like excavating or removing vehicles from off-road locations like rivers and streams. In such circumstances, the contract provides for up to $900 for every 15 minutes of hook-up work after an initial 15 minutes has expired.

“The contract clearly states that the director of the Department of Customer Services is the sole authority on determining reasonable amounts that can be charged for removing vehicles from hazardous off-road locations,” Hashiro said in a statement issued on Wednesday. “For that reason, 782 invoices have been disapproved and the registered owners of the vehicles are entitled to a refund for being improperly charged.”

All Island has until July 11 to “correct the default,” which must include funding and developing a procedure for administering the refunds, or the city will move forward with terminating the contract.

The city has sent letters to the affected vehicle owners explaining the situation and what they must do to receive a refund.

Registered vehicle owners who paid a $900 towing fee between January and June 2023 are encouraged to contact the Department of Customer Services at csd@honolulu.gov or 808-768-4381. 

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.