Monday, October 25, 2010
Critics: Licensing fees that can drive smaller wreckers out of business
The industry used to be a relatively unregulated process of hook ‘em up and haul ‘em out. But that began to unravel the night a Northern Virginia lawyer’s car was towed from a private lot with a warning sign obscured by tall bushes.
Angered, he pored through state law to find that nothing covered hidden signs, or much else. So, he fired off a letter of disgust and legal insight to a state senator.
“It turns out ... it’s a hot topic with a lot of people,” former senator Jay O’Brien, of Clifton, said of the furor that followed.
For the two years after he received the letter, O’Brien’s life was a mosaic of research, public meetings and rewording state code.
Now, tow truck operators throughout Virginia must have a license to haul cars from accidents, private lots or breakdowns. Simply put, if the tow operator gets paid for the haul, then he needs to be licensed. Additionally, individual drivers must obtain tow truck driver authorization documents.
The tow truck operator also must put a licensing sticker on every truck.
Those regulations, and the operations of tow companies, are governed by a new state body, the Board of Towing and Recovery Operators. Created in 2006, the board is tasked with dispensing the operator’s licenses, tow driver’s authorizations and truck stickers; testing operators on the laws of the profession, a requirement for all new drivers; rummaging through criminal backgrounds; and fielding customer complaints.
“It’s an innocent thing that turned into something much bigger than I thought,” O’Brien said.
Like it or leave it
Roger Blevins, of Rogers Towing in Marion, needed a minute to think when asked how the new licensing laws have affected his profession. He hemmed and hawed as he weighed the drawbacks against the benefits.
On the negative side, he said, the licenses are pricey enough to bankrupt small companies.
“There was a couple of people … that it could put them under in time,” Blevins said of the licensing requirement, which began July 1, 2009.
That first year, the board authorized 1,474 operator’s licenses, approved 4,548 tow driver’s authorizations, and affixed decals to 4,275 trucks, according to the board’s 2009 annual report.
The operator’s licenses must be bought annually and run from $250 to $500 a company, depending on the number of trucks owned and their weight.
The individual tow driver’s authorizations cost $87 a year. The application comes with a $37 fee for a criminal background check. Additionally, every truck must sport a new licensing decal each year, costing $10 each. An extra $50 is added if the business owns three or more trucks, depending on the vehicle’s weight.
In its first year, the application and decal fees generated $1.12 million in revenue, according to the board’s 2009 annual report.
Before the licensing laws kicked in, wrecker companies only had to register their trucks each year with the Virginia Department of Motor Vehicles.
That’s still necessary, on top of the licensing.
Annual registration fees run from $80 to $1,328 a truck, depending on the weight of the tow truck and the average estimated weight of vehicles towed. There also is an annual $10 a truck bulk carrier fee going to the Virginia Operating Authority, which allows the truck to haul in the state.
Blevins also saw a silver lining in the expense incurred on his company by the new towing board – he had to expand his business to cover the fees.
“If anything, it probably helped my business because it convinced me to get on the state police [emergency dispatch] list and to join motor clubs,” Blevins said.
Not every tow operator could envision a positive spin.
Retired tow operator Dave Thomas, of auto repair company Marion Frame and Alignment, quit the wrecker business two weeks after the licensing law began.
“If you’ve been doing something for 26 years, and have been doing things the same way, would you want someone to come along and say you’ve got to have a license?” he said.
Thomas tried to tow wrecked cars without a license, but the towing board ordered him to stop, and had the sheriff’s department remove his company from the 911 rotation list.
Shock over the licensing requirements also erupted from the industry’s sidelines, where retired tow operators are voicing an opinion.
David Pickle, of David’s Auto Repair in Rural Retreat, misses the new faces he met and adventures he enjoyed during his nearly 20 years as a tow operator before retiring in 2003.
He’d consider jumping back in but, like Thomas, fears it’s a case of an old dog learning new tricks.
“I think it would be too much regulations to comply with,” Pickle said.
Still off the radar
Public safety tows, where vehicles are pulled from wrecks or other incidents involving police, are among the few areas left untouched by both the towing board and state law.
The issue is still left to local laws and police policies.
Smyth County, for example, doles the tow calls to wrecker companies based on a rotation list regulated by sheriff’s department policy.
In nearby Wytheville, the rotation list is controlled by a recently enacted ordinance that offers public safety calls to companies inside the town limits before looking to companies in the surrounding county.
Town officials created the new ordinance as an attempt to provide priority status to its in-town businesses while also whittling away at the time spent waiting for a wrecker.
“To have an officer on the side of the road waiting for 20 minutes was just too long,” Town Manager Wayne Sutherland said.
Initially, O’Brien’s state legislation mandated that the towing board decide which companies could answer 911 requests. Regulations were to be based mainly on the equipment in a company’s inventory.
But tow operators argued that the need for costly equipment could differ according to geography, population or whether the wreck is on a mountain road or in a big city.
“There was a view held by many that this particular regulation would be very onerous ... to the mom-and-pops and the one- and two-truck businesses,” board Executive Director Marc Copeland said.
In 2009, O’Brien’s law was changed to prohibit the board from regulating public safety calls.
O’Brien, who left the Virginia General Assembly in 2007, did not know his provision on the public safety tow had been repealed until told by a reporter.
Still, he said, the connection between tow operators and emergency calls is a strong one.
“People often think of the first responder [as] the police, and the rescue squads,” O’Brien said. “But the tow operator sees it all, and has nightmares from it.”
Mandatory fees
To operate a tow truck business, the state requires:
Tow operator’s business license: $250-$500.
Tow truck driver authorization (each driver): $87.
Criminal background check (each driver): $37.
Authorization stickers (each truck): $10, with an extra $50 for an operator with three or more trucks.
Motor vehicle registration (each truck): $80 to $1,328.
Bulk carrier fee (each truck): $10.
mowens@bristolnews.com
(276) 645-2549
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Sort newest to oldest +0-0CLEARPosted by shuzee on Oct. 25, 2010 - 8:43 a.m.
This whole series of articles is just BHC Trivia because BHC isn't intelligent enough to write about pertinent subjects.
What a waste of space, ink, time,- but, I guess that's what we get from a newspaper (loosely) with little horsepower...
Why don't you build a REAL newspaper?
Just another way for big brother to step in and control something that obviously became profitable for the government.
$250 to $500 -- for Business License is a % of the Profits -- if your not making at least $25,000 a year Towing then your costing the people who are actually in Business money .
Forcing retired people out of the business is a good idea if they are not in business just towing vechiles for a little extra cash on the side .
The industry used to be a relatively unregulated process of hook ‘em up and haul ‘em out. But that began to unravel the night a Northern Virginia lawyer’s car was towed from a private lot with a warning sign obscured by tall bushes.
Angered, he pored through state law to find that nothing covered hidden signs, or much else. So, he fired off a letter of disgust and legal insight to a state senator.
“It turns out ... it’s a hot topic with a lot of people,” former senator Jay O’Brien, of Clifton, said of the furor that followed.
For the two years after he received the letter, O’Brien’s life was a mosaic of research, public meetings and rewording state code.
Now, tow truck operators throughout Virginia must have a license to haul cars from accidents, private lots or breakdowns. Simply put, if the tow operator gets paid for the haul, then he needs to be licensed. Additionally, individual drivers must obtain tow truck driver authorization documents.
The tow truck operator also must put a licensing sticker on every truck.
Those regulations, and the operations of tow companies, are governed by a new state body, the Board of Towing and Recovery Operators. Created in 2006, the board is tasked with dispensing the operator’s licenses, tow driver’s authorizations and truck stickers; testing operators on the laws of the profession, a requirement for all new drivers; rummaging through criminal backgrounds; and fielding customer complaints.
“It’s an innocent thing that turned into something much bigger than I thought,” O’Brien said.
Like it or leave it
Roger Blevins, of Rogers Towing in Marion, needed a minute to think when asked how the new licensing laws have affected his profession. He hemmed and hawed as he weighed the drawbacks against the benefits.
On the negative side, he said, the licenses are pricey enough to bankrupt small companies.
“There was a couple of people … that it could put them under in time,” Blevins said of the licensing requirement, which began July 1, 2009.
That first year, the board authorized 1,474 operator’s licenses, approved 4,548 tow driver’s authorizations, and affixed decals to 4,275 trucks, according to the board’s 2009 annual report.
The operator’s licenses must be bought annually and run from $250 to $500 a company, depending on the number of trucks owned and their weight.
The individual tow driver’s authorizations cost $87 a year. The application comes with a $37 fee for a criminal background check. Additionally, every truck must sport a new licensing decal each year, costing $10 each. An extra $50 is added if the business owns three or more trucks, depending on the vehicle’s weight.
In its first year, the application and decal fees generated $1.12 million in revenue, according to the board’s 2009 annual report.
Before the licensing laws kicked in, wrecker companies only had to register their trucks each year with the Virginia Department of Motor Vehicles.
That’s still necessary, on top of the licensing.
Annual registration fees run from $80 to $1,328 a truck, depending on the weight of the tow truck and the average estimated weight of vehicles towed. There also is an annual $10 a truck bulk carrier fee going to the Virginia Operating Authority, which allows the truck to haul in the state.
Blevins also saw a silver lining in the expense incurred on his company by the new towing board – he had to expand his business to cover the fees.
“If anything, it probably helped my business because it convinced me to get on the state police [emergency dispatch] list and to join motor clubs,” Blevins said.
Not every tow operator could envision a positive spin.
Retired tow operator Dave Thomas, of auto repair company Marion Frame and Alignment, quit the wrecker business two weeks after the licensing law began.
“If you’ve been doing something for 26 years, and have been doing things the same way, would you want someone to come along and say you’ve got to have a license?” he said.
Thomas tried to tow wrecked cars without a license, but the towing board ordered him to stop, and had the sheriff’s department remove his company from the 911 rotation list.
Shock over the licensing requirements also erupted from the industry’s sidelines, where retired tow operators are voicing an opinion.
David Pickle, of David’s Auto Repair in Rural Retreat, misses the new faces he met and adventures he enjoyed during his nearly 20 years as a tow operator before retiring in 2003.
He’d consider jumping back in but, like Thomas, fears it’s a case of an old dog learning new tricks.
“I think it would be too much regulations to comply with,” Pickle said.
Still off the radar
Public safety tows, where vehicles are pulled from wrecks or other incidents involving police, are among the few areas left untouched by both the towing board and state law.
The issue is still left to local laws and police policies.
Smyth County, for example, doles the tow calls to wrecker companies based on a rotation list regulated by sheriff’s department policy.
In nearby Wytheville, the rotation list is controlled by a recently enacted ordinance that offers public safety calls to companies inside the town limits before looking to companies in the surrounding county.
Town officials created the new ordinance as an attempt to provide priority status to its in-town businesses while also whittling away at the time spent waiting for a wrecker.
“To have an officer on the side of the road waiting for 20 minutes was just too long,” Town Manager Wayne Sutherland said.
Initially, O’Brien’s state legislation mandated that the towing board decide which companies could answer 911 requests. Regulations were to be based mainly on the equipment in a company’s inventory.
But tow operators argued that the need for costly equipment could differ according to geography, population or whether the wreck is on a mountain road or in a big city.
“There was a view held by many that this particular regulation would be very onerous ... to the mom-and-pops and the one- and two-truck businesses,” board Executive Director Marc Copeland said.
In 2009, O’Brien’s law was changed to prohibit the board from regulating public safety calls.
O’Brien, who left the Virginia General Assembly in 2007, did not know his provision on the public safety tow had been repealed until told by a reporter.
Still, he said, the connection between tow operators and emergency calls is a strong one.
“People often think of the first responder [as] the police, and the rescue squads,” O’Brien said. “But the tow operator sees it all, and has nightmares from it.”
Mandatory fees
To operate a tow truck business, the state requires:
Tow operator’s business license: $250-$500.
Tow truck driver authorization (each driver): $87.
Criminal background check (each driver): $37.
Authorization stickers (each truck): $10, with an extra $50 for an operator with three or more trucks.
Motor vehicle registration (each truck): $80 to $1,328.
Bulk carrier fee (each truck): $10.
mowens@bristolnews.com
(276) 645-2549
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View More: Board Of Towing And Recovery Operators, Bulk Carrier Fee, Business_Finance, Costly Equipment, Dave Thomas, David Pickle, Director, Driver, Executive, Individual Tow Driver, Marc Copeland, Marion, Marion Frame, Northern Virginia Lawyer, Officer, Recovery Operators, Reporter, Roger Blevins, Rural Retreat, Senator, Sheriff, Smyth County, State Law, State Police, State Senator, Tow Driver, Towing, Town Manager, Tow Operator, Truck Bulk Carrier Fee Going, Truck Driver, Usd, Virginia, Virginia Department Of Motor Vehicles, Virginia General Assembly, Virginia Operating Authority, Wayne Sutherland, Wytheville
Not what you're looking for? Try our quick search:
More from this channel:
Cleanup costs, cataloging fees and distance can affect price of a tow
Creative campaign helps Heaton break 2-party mold
Former colleague: Heaton helped us think outside the box
11 Connects Sportscast: Melissa Hipolit 10/24
11 Connects top weekend headlines: 10/24
Meadowview festival celebrates foundation's work on chestnuts
Bristol volunteers return from trip to Haiti
The Bristol Blotter
Critics: 911 towing referrals being guided by favoritism
Role of firefighters in wrecking service elicits ethics discussion
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Voice your opinion by posting a comment.
Sort newest to oldest +0-0CLEARPosted by shuzee on Oct. 25, 2010 - 8:43 a.m.
This whole series of articles is just BHC Trivia because BHC isn't intelligent enough to write about pertinent subjects.
What a waste of space, ink, time,- but, I guess that's what we get from a newspaper (loosely) with little horsepower...
Why don't you build a REAL newspaper?
Just another way for big brother to step in and control something that obviously became profitable for the government.
$250 to $500 -- for Business License is a % of the Profits -- if your not making at least $25,000 a year Towing then your costing the people who are actually in Business money .
Forcing retired people out of the business is a good idea if they are not in business just towing vechiles for a little extra cash on the side .
Wednesday, October 20, 2010
Towing companies sue Nacogdoches for interfering with business
Towing companies sue Nacogdoches for interfering with business
10/19/2010 11:15 AM By Michelle Massey, East Texas Bureau
LUFKIN-A Nacogdoches business is suing the city for improperly interfering with their business.
Randy Furra, individually and doing business as Randy Wrecker Service, and Roger McBride, individually and doing business as McBride Towing, filed suit against city of Nacogdoches on Oct. 1 in Nacogdoches County. The defendants removed the case to the federal Eastern District of Texas, Lufkin Division on Oct. 14.
According to the lawsuit, the plaintiffs have been adversely affected by the city's new procedures regarding wrecker companies. Furra and McBride state that the city refused to "grandfather" in their companies and has since improperly refused to place them upon rotation with regard to non-consent tows.
The wrecker company owners state that the city has refused to allow them to charge for tows that are privately arranged and/or are on private property within the city limits.
When the city held the hearing on the proposed changes in procedures for towing within the city limits, Furra and McBride state they were not allowed to participate or be heard, in violation of their due process rights.
Further, the plaintiffs accuse argue the Nacogdoches Police Department has unlawfully and improperly harassed them by charging them with frivolous violations.
The plaintiffs are asking the judge to issue a temporary and permanent injunction enjoining the defendants from continuing the alleged improper conduct and for an award of damages for lost income, adverse impact upon businesses, lost business opportunity, attorney's fees, interest and court costs.
Furra and McBride are represented by Houston attorney Benton Musslewhite.
U.S. District Judge Marcia A. Crone is assigned to the case.
10/19/2010 11:15 AM By Michelle Massey, East Texas Bureau
LUFKIN-A Nacogdoches business is suing the city for improperly interfering with their business.
Randy Furra, individually and doing business as Randy Wrecker Service, and Roger McBride, individually and doing business as McBride Towing, filed suit against city of Nacogdoches on Oct. 1 in Nacogdoches County. The defendants removed the case to the federal Eastern District of Texas, Lufkin Division on Oct. 14.
According to the lawsuit, the plaintiffs have been adversely affected by the city's new procedures regarding wrecker companies. Furra and McBride state that the city refused to "grandfather" in their companies and has since improperly refused to place them upon rotation with regard to non-consent tows.
The wrecker company owners state that the city has refused to allow them to charge for tows that are privately arranged and/or are on private property within the city limits.
When the city held the hearing on the proposed changes in procedures for towing within the city limits, Furra and McBride state they were not allowed to participate or be heard, in violation of their due process rights.
Further, the plaintiffs accuse argue the Nacogdoches Police Department has unlawfully and improperly harassed them by charging them with frivolous violations.
The plaintiffs are asking the judge to issue a temporary and permanent injunction enjoining the defendants from continuing the alleged improper conduct and for an award of damages for lost income, adverse impact upon businesses, lost business opportunity, attorney's fees, interest and court costs.
Furra and McBride are represented by Houston attorney Benton Musslewhite.
U.S. District Judge Marcia A. Crone is assigned to the case.
Wednesday, October 13, 2010
Towing service wants county to change to bid system
Towing service wants county to change to bid system
TERRE HAUTE — A Terre Haute company is asking the Vigo County Board of Commissioners to consider bidding out a contract between the county and towing companies.
“Towing companies and municipalities are both moving in the direction to form these relationships and contacts, and it is something we would like commissioners to consider,” Jason Durr of Durr’s Towing & Recovery told commissioners Tuesday.
“The industry is changing in many directions, including environmental and procedural guidelines that must be complied with. There are a variety of compliance issues that only affect those providing service to police agencies, separate from the general towing company issues,” Bob Durr of Durr’s Towing said in a letter given to the board.
“Virtually all police agencies use a contract to protect and benefit not only the towing companies, but also the county and agency itself from liability issues,” Bob Durr wrote.
Durr’s Towing already has a contract with Terre Haute’s Board of Public Works and Safety.
Sheriff Jon Marvel asked commissioners to have the county attorney review the addition of a county fee to such a contract that would be assessed to a driver’s insurance company. The fee would help pay for gasoline and maintenance costs of a deputy responding to an accident, the sheriff said.
Marvel said the fee is already implemented in Marion County and a few other large Indiana counties.
Under state law, the county must bid out a towing contract or have a rotation of towing companies, County Attorney Michael Wright said.
The sheriff currently uses a rotation of two companies — Durr’s and Peffley & Hinshaw — to tow vehicles. Durr’s is used for all vehicles north of Wabash Avenue and Peffley for all vehicles south of Wabash Avenue.
“I have no preference. However, with a contract, a dispatcher would not have to take time to look up where a vehicle is, either north or south … and simply call for a wrecker service,” Marvel said.
“Obviously the County Council is looking at everything, and with less money coming in from the state and federal government, this fee, that would be assessed to insurance companies, would help. I do not want our sheriff take-home vehicle program going away, so we have to find some way to keep that going,” Marvel said.
The sheriff said every driver, under state law, is required to have automobile insurance.
Commissioners took the issue under advisement pending a review from the county attorney
TERRE HAUTE — A Terre Haute company is asking the Vigo County Board of Commissioners to consider bidding out a contract between the county and towing companies.
“Towing companies and municipalities are both moving in the direction to form these relationships and contacts, and it is something we would like commissioners to consider,” Jason Durr of Durr’s Towing & Recovery told commissioners Tuesday.
“The industry is changing in many directions, including environmental and procedural guidelines that must be complied with. There are a variety of compliance issues that only affect those providing service to police agencies, separate from the general towing company issues,” Bob Durr of Durr’s Towing said in a letter given to the board.
“Virtually all police agencies use a contract to protect and benefit not only the towing companies, but also the county and agency itself from liability issues,” Bob Durr wrote.
Durr’s Towing already has a contract with Terre Haute’s Board of Public Works and Safety.
Sheriff Jon Marvel asked commissioners to have the county attorney review the addition of a county fee to such a contract that would be assessed to a driver’s insurance company. The fee would help pay for gasoline and maintenance costs of a deputy responding to an accident, the sheriff said.
Marvel said the fee is already implemented in Marion County and a few other large Indiana counties.
Under state law, the county must bid out a towing contract or have a rotation of towing companies, County Attorney Michael Wright said.
The sheriff currently uses a rotation of two companies — Durr’s and Peffley & Hinshaw — to tow vehicles. Durr’s is used for all vehicles north of Wabash Avenue and Peffley for all vehicles south of Wabash Avenue.
“I have no preference. However, with a contract, a dispatcher would not have to take time to look up where a vehicle is, either north or south … and simply call for a wrecker service,” Marvel said.
“Obviously the County Council is looking at everything, and with less money coming in from the state and federal government, this fee, that would be assessed to insurance companies, would help. I do not want our sheriff take-home vehicle program going away, so we have to find some way to keep that going,” Marvel said.
The sheriff said every driver, under state law, is required to have automobile insurance.
Commissioners took the issue under advisement pending a review from the county attorney
Friday, October 8, 2010
Towers Angry over New Contract
BOYNTON BEACH — City commissioners recently approved a three-year towing franchise agreement with two tow companies, which will bring in an extra $204,575 annually for Boynton Beach.
Beck's Towing & Recovery will pay the city $104,500 annually and Zuccala Wrecker Service will pay $100,075 to tow all of the disabled and illegally parked vehicles within the city limits.
In April, the commission approved moving forward with the bidding. The move seemed to assuage many tow companies, who felt that had been cut out of the city's business by the previous exclusive contract. The previous contract had six tow companies on rotation for calls, which was time-consuming for city staff. Both Beck's and Zuccala are in this rotation.
The city received bids from nine towing companies by the Aug. 3 deadline. A company could submit bids for a single tow-company agreement, a two-company agreement, and a three company agreement.
After reviewing bids, city staff recommended that the commission approve a three-year agreement with the two highest-ranked bidders for the two-vendor scenario. The agreement includes the option for the commission to renew it for two additional one-year periods.
Although the city could have brought in more money with the single-vendor scenario, which would have gone to Beck's Towing for $223,500, Lori LaVerriere, assistant city manager, said that staff decided that having two vendors would be in the best interest of residents.
Towing has been a controversial issue in Boynton Beach for many years. In 2008, Craig Goldstein, owner of Westway Towing, told investigators that former City Commissioner David Katz offered to lobby the commission on his behalf in exchange for $25,000.
Mayor José Rodriguez received campaign contributions from both of the tow companies chosen for the franchise agreement. He also received a contribution from one of the other seven companies that submitted bids - Emerald Transportation Corp., which is in the six-vendor rotation.
Scott Blasie, the city's code compliance administrator and one of the four staff members who reviewed the towing franchise bids, said that the process was fair, but he understands where such complaints are coming from.
"We ran into a lot of politicking and salesmanship during our site visits and inspections," he said.
Boynton Beach is not the first municipality to move forward with a towing franchise agreement. West Palm Beach charges $15,000 a year to each of four towing companies. Boca Raton charges two companies $55,000 each, and Delray Beach charges $160,000 to a single company.
Despite going through an open-bid process, not all of the towing companies were happy .
Attorney Michael Weiner, speaking on behalf of Westway Towing, told the commission last month that the towing companies selected present a liability for the city because they rent and subcontract some of their equipment, and they have multiple storage locations.
Based on the rating system that city staff used, Westway came in third for the two-vendor franchise agreement. The company isn't in the city's current six-vendor rotation.
"That's nice that the company owns all of its equipment outright, but that doesn't necessarily make them a better towing company," Blasie said. "Somebody's going to win and somebody's going to lose. You can't make everybody happy."
Weiner has submitted a bid protest letter on behalf of Westway, which is being reviewed by the city attorney. A recommendation will be sent to the city manager, who will make a decision and respond to the protester.
Westway will have 30 days to appeal the decision, and if the company chooses to do so, the city commission will have final say over the matter.
But until then, the towing franchise agreement is on hold.
"Hopefully it will be resolved soon," LaVerriere said. "It's lost revenue for the city."
Beck's Towing & Recovery will pay the city $104,500 annually and Zuccala Wrecker Service will pay $100,075 to tow all of the disabled and illegally parked vehicles within the city limits.
In April, the commission approved moving forward with the bidding. The move seemed to assuage many tow companies, who felt that had been cut out of the city's business by the previous exclusive contract. The previous contract had six tow companies on rotation for calls, which was time-consuming for city staff. Both Beck's and Zuccala are in this rotation.
The city received bids from nine towing companies by the Aug. 3 deadline. A company could submit bids for a single tow-company agreement, a two-company agreement, and a three company agreement.
After reviewing bids, city staff recommended that the commission approve a three-year agreement with the two highest-ranked bidders for the two-vendor scenario. The agreement includes the option for the commission to renew it for two additional one-year periods.
Although the city could have brought in more money with the single-vendor scenario, which would have gone to Beck's Towing for $223,500, Lori LaVerriere, assistant city manager, said that staff decided that having two vendors would be in the best interest of residents.
Towing has been a controversial issue in Boynton Beach for many years. In 2008, Craig Goldstein, owner of Westway Towing, told investigators that former City Commissioner David Katz offered to lobby the commission on his behalf in exchange for $25,000.
Mayor José Rodriguez received campaign contributions from both of the tow companies chosen for the franchise agreement. He also received a contribution from one of the other seven companies that submitted bids - Emerald Transportation Corp., which is in the six-vendor rotation.
Scott Blasie, the city's code compliance administrator and one of the four staff members who reviewed the towing franchise bids, said that the process was fair, but he understands where such complaints are coming from.
"We ran into a lot of politicking and salesmanship during our site visits and inspections," he said.
Boynton Beach is not the first municipality to move forward with a towing franchise agreement. West Palm Beach charges $15,000 a year to each of four towing companies. Boca Raton charges two companies $55,000 each, and Delray Beach charges $160,000 to a single company.
Despite going through an open-bid process, not all of the towing companies were happy .
Attorney Michael Weiner, speaking on behalf of Westway Towing, told the commission last month that the towing companies selected present a liability for the city because they rent and subcontract some of their equipment, and they have multiple storage locations.
Based on the rating system that city staff used, Westway came in third for the two-vendor franchise agreement. The company isn't in the city's current six-vendor rotation.
"That's nice that the company owns all of its equipment outright, but that doesn't necessarily make them a better towing company," Blasie said. "Somebody's going to win and somebody's going to lose. You can't make everybody happy."
Weiner has submitted a bid protest letter on behalf of Westway, which is being reviewed by the city attorney. A recommendation will be sent to the city manager, who will make a decision and respond to the protester.
Westway will have 30 days to appeal the decision, and if the company chooses to do so, the city commission will have final say over the matter.
But until then, the towing franchise agreement is on hold.
"Hopefully it will be resolved soon," LaVerriere said. "It's lost revenue for the city."
Monday, October 4, 2010
JPD seeking towing firms for rotation
JPD seeking towing firms for rotation
The new agreement sets fees at $75 to tow most vehicles. It goes into effect on Friday. Several companies said they have been charging $125 for years.
The city is continuing its wrecker service enrollment period through Thursday.
The enrollment period will allow wrecker companies not on the city's rotation list to see if they qualify for placement, said Robert West, public safety administrator of the Jackson Police Department License and Permit Unit.
"We want to see if there are businesses out there that do qualify, and if there are, we want to give them the opportunity to get on the list," West said. "There are some who don't know how to get on the rotation."
West said the city has not done this type of reaching out often.
The new wrecker service agreement has angered a number of tow companies who believe they will be underpaid.
Despite the criticism, all of the companies that participated under the old agreement signed up for the new agreement, with the exception of "maybe one," West said. He said the city also has gained several new companies.
About 17 wrecker services are on the rotation. The city has about 3,000 calls to wrecker companies each year.
Trey Ward, owner of Ward's Wrecker Service and an outspoken critic of the city's new agreement, said companies signed up for the new agreement to give themselves an option, but he expects several to drop out.
"They won't be able to afford it," Ward said. "They want us to assume the risk, but don't want to pay us for the risk."
To qualify for the rotation, companies must have a gated salvage yard able to store 20 or more vehicles at one time. The property must be in an Industrial 2 Zone. Companies must also have a city of Jackson privilege license and a certain amount of liability insurance.
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The new agreement sets fees at $75 to tow most vehicles. It goes into effect on Friday. Several companies said they have been charging $125 for years.
The city is continuing its wrecker service enrollment period through Thursday.
The enrollment period will allow wrecker companies not on the city's rotation list to see if they qualify for placement, said Robert West, public safety administrator of the Jackson Police Department License and Permit Unit.
"We want to see if there are businesses out there that do qualify, and if there are, we want to give them the opportunity to get on the list," West said. "There are some who don't know how to get on the rotation."
West said the city has not done this type of reaching out often.
The new wrecker service agreement has angered a number of tow companies who believe they will be underpaid.
Despite the criticism, all of the companies that participated under the old agreement signed up for the new agreement, with the exception of "maybe one," West said. He said the city also has gained several new companies.
About 17 wrecker services are on the rotation. The city has about 3,000 calls to wrecker companies each year.
Trey Ward, owner of Ward's Wrecker Service and an outspoken critic of the city's new agreement, said companies signed up for the new agreement to give themselves an option, but he expects several to drop out.
"They won't be able to afford it," Ward said. "They want us to assume the risk, but don't want to pay us for the risk."
To qualify for the rotation, companies must have a gated salvage yard able to store 20 or more vehicles at one time. The property must be in an Industrial 2 Zone. Companies must also have a city of Jackson privilege license and a certain amount of liability insurance.
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