Question: Did the city terminate its contract with All Island Wreckers as threatened? I believe the deadline was Thursday. When will refunds be issued?
Answer: No, after a “good meeting” with company officials Wednesday, the deadline for action was extended until July 31, said Harold Nedd, spokesperson for Honolulu’s Department of Customer Services. Nedd said CSD Director Kimberly Hashiro and key staff members met with Kanoelani and Paul Perry, co-owners of All Island Automotive Towing, which also does business as All Island Wreckers Inc.
“We are hopeful for continued productive and collaborative discussions to resolve this dispute for the benefit of those affected by the improper charges,” Nedd said in an email.
Earlier that day the Perrys had a separate meeting with Honolulu Mayor Rick Blangiardi, at their request, according to mayoral spokesperson Scott Humber. Asked what specific resolution the mayor seeks in the dispute, Humber replied by email that “the mayor is committed to ensuring a fair and equitable resolution to the towing contract dispute that prioritizes the needs of the community. A deadline has been extended by CSD to allow the city and the towing company more time to resolve this issue.”
The mayor “is hopeful that the continued discussions between both sides result in a decision by the end of the month,” Humber said.
The Perrys did not respond to Kokua Line’s questions Thursday, except to email us a link to a Hawaii News Now report that aired Wednesday evening, in which co-owner Paul Perry defended his company, insisting that it followed its approved city contract, including on higher fees for difficult tows. He also expressed a desire for good relations with the city, saying, “I want to resolve this.”
On July 1, Honolulu’s Department of Budget and Fiscal Services issued All Island Wreckers Inc. a notice of default and demand for cure, saying the tow company had breached its contract and owes refunds to hundreds of vehicle owners because it “misapplied and/or overcharged” a “Non-Statutory Difficult Hook Up” fee allowed under the contract. On July 2, CSD began notifying affected vehicle owners in letters that say, “CSD is attempting to work with All Island to ensure that you are issued a refund for this improper charge.”
Under the contract, the NSDHU fee can be $900 per 15 minutes, after an initial 15 minutes of hook-up work. The city says All Island applied this fee too broadly, but in the HNN interview Paul Perry said it was properly applied, such as for towing wrecked vehicles that had gone off cliffs or into the ocean.
The default notice (808ne.ws/4cWus77 Opens in a new tab) gave All Island 10 calendar days, or until Thursday, to correct the default, including funding and figuring out a process to provide refunds, or face termination of the contract. That deadline has been extended until July 31. More information about refunds should be available then.
The city still wants to hear from registered vehicle owners or insurance companies that paid an invoice for a $900 towing fee between January and June 2023. They can contact CSD by sending an email to csd@honolulu.gov or by calling 808-768-4381. Provide your name, phone number, email address and the license plate number of the towed vehicle.
As of Thursday, CSD had heard back from 88 of 782 vehicle owners it contacted by mail, Nedd said.
The city has a web page devoted to this situation, 808ne.ws/3VZhNta Opens in a new tab, which contains a statement on the contract dispute, links to the city’s notifications to All Island and an FAQ for affected vehicle owners, along with other information.
Write to Kokua Line at Honolulu Star-Advertiser, 500 Ala Moana Blvd., Suite 7-500, Honolulu, HI 96813; call 808-529-4773; or email kokualine@staradvertiser.com.
