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WASHINGTON D.C. -- Three dozen D.C. towing operators who met privately at a Northeast hotel yesterday complained that newly proposed regulations would put too many restrictions on them and drive them out of business.

The tow operators are hoping for major changes to the regulations announced by Mayor Anthony A. Williams before they are sent next month for final passage by the D.C. Council.

"The way they have these regulations set up now, we're all going to be going out of business when they take effect," said Terrence Ross, owner R&R Towing and Recovery.

The tow operators, representing 22 of the city's more than 100 towing companies, met at the Ramada Inn on New York Avenue NE, where they held their three-hour meeting. The group plans to meet again next week to discuss a hard-copy version of changes they want made.

"We've got to get organized and get down on paper what we want changed because we've got more power right now than we're ever going to have," said Mr. Ross, who was made president of the unofficial group after an impromptu vote yesterday.

Many of the tow operators at yesterday's meeting said they feel slighted by the mayor's regulations because they weren't included in city-run meetings during the formation of the regulations. "The city never wanted to hear our side of the story," said Beverly Ingraham of ANA Towing.

City officials claim a letter was sent inviting all licensed towing companies in the District to a meeting in May to discuss a new system that will track towed vehicles.

Miss Ingraham said the new regulations would put too much responsibility on tow truck operators — who often work at the request of D.C. police officers — to inform the D.C. Department of Public Works (DPW) about cars that have been towed without being assured the agency will notify the cars' owners.

Other tow operators agreed, many shaking their heads, and compared stories about cars that sat on their impound lots for months after being towed at the request of D.C. police.

Mr. Williams vowed to draft the new towing regulations in August after a report issued by the office of Inspector General Charles C. Maddox uncovered illegal towing schemes involving corrupt police officers.

Additionally the FBI recently concluded a four-year investigation of corruption in the city that resulted in 60 arrests — 29 of which ended in convictions of persons involved in the towing schemes. FBI officials have declined to comment on how many of those convicted were tow-truck drivers.

The regulations do not clearly identify who is responsible for notifying the owners of towed cars — the towing company, the police or DPW workers. Police Chief Charles H. Ramsey on Monday said the his department is recommending the regulations be amended to give the responsibility to police officers who request cars be towed.

Several towing operators said they are tired of taking the blame for problems in the industry that are largely caused by D.C. police officers who request cars to be towed then leave as soon as tow-truck drivers arrive on the scene.

"I was called by police to an alley in Southeast the other night, and as soon as I started hooking the car up to my truck, I turned around and the officer was gone," said Arthur Farhat of Farco Towing. "The next thing I know, the owner of the car comes around the corner and takes the car from me at gunpoint." (Thanks Greg)

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Record cold temperatures -- along with snow and ice -- made driving treacherous for much of the South Wednesday, the Associated Press reported.

In Kentucky, icy pavement was blamed for an 18-vehicle pileup Wednesday on Interstate 65 near Lebanon Junction, in the central part of the state which kept tow trucks busy for many hours. Six people were taken to the hospital following the crash.

Temperatures fell to record lows in parts of Louisiana, Arkansas, Texas, Kansas and Oklahoma, and snow caused many schools to close in Alabama and Tennessee. The Tennessee Highway Patrol said tow trucks were busy because the many accidents on the states roads.

While many tow truck operators claim the icy and snowy weather increases the amount of calls they receive and increases revenue, others claim the foul weather slows response times and stifles productivity causing their business to simply break even. 

A freeze warning was posted for much of Florida for Thursday morning, as far south as Orlando. A record low of 15 is being predicted for Tallahassee, Fla.

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The International Truck and Engine Co. launched the International 4200, a medium-duty truck powered by a 215 horsepower engine, Feb. 25.

The International 4200, part of the company’s line of high performance trucks, delivers improved maneuverability and reduces preventive maintenance costs and overall repair time by as much as 20 percent, the company said. The truck is more maneuverable because of its 50-degree wheel cut and more maintenance-friendly because of its multiplexed electrical system.

The truck is powered by the International VT 365 diesel engine, which features a four-valve, six-liter displacement. The engine includes a new Electro-Hydraulic Generation 2 fuel system that works in tandem with the Electronic Variable Response Turbocharger to improve engine responsiveness and efficiency. The features provide improved low-end torque for faster acceleration, and enable the engine to burn fuel more cleanly and to maximize fuel economy, the company said.

"Business owners can bank on the highest uptime, lowest operating and maintenance costs and the highest resale value," said Steve Keate, president of International’s truck group.

The truck also features the Intuitive Shift controllers, an Allison Transmission feature that integrates the engine and the transmission to change transmission ratios in relation to driver input, vehicle load and driving condition

The 4200 is available for order. Production begins in March.

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WASHINGTON -- A group of Des Moines residents has gone to court to force a newly elected city councilman to resign, charging him with a conflict of interest because his towing company does hundreds of thousands of dollars in business with the city.

The suit is scheduled for trial next year. Already, it has generated hard feelings around City Hall, including a disputed charge that Gary Peterson and fellow council members asked longtime City Manager Bob Olander to resign in retaliation for questioning the towing deal.

So far Peterson has declined to step down himself and, in a recent letter, denied that a conflict exists.

That letter said that his company, Pete's Towing, has served the city for more than 30 years without any contractual arrangement, and that as a councilman he will refrain from voting on any towing or other legislation that would pose a conflict.

His critics say they are forced to sue.

"If this guy's going to thumb his nose at the law, what are you going to do?" said Al Furney, a member of a loosely affiliated citizen group known as Citizens for Des Moines.

The group's suit, filed in King County Superior Court, said Peterson's company provides almost all of the city-directed towing service each year, totaling more than $250,000 in fees.

And the suit said Peterson's new presence on the council creates a conflict with his towing for the city. His company removes vehicles from accidents or restricted-parking areas.

The suit says Peterson's council service violates a state law barring city officials from being "beneficially interested" in a city contract, which the law says can be a written contract, "sale, lease or purchase."

The state Attorney General's Office, in a written opinion requested by the city, agreed.

The city "is involved in a contractual relationship with (Peterson's company) because it actively initiates towing business for that company," according to Assistant Attorney General Brian Buchholz.

The suit asks the court to order Peterson's resignation. The citizens contend that Peterson could influence which towing company is called when a vehicle owner can't be located or expresses no preference for a tow.

But Peterson, in a recent letter to fellow council members, said there is no written contract guaranteeing city towing business to his company and the city is free to choose any company. Without a contract for him to influence on the council, "I don't see how anyone could think there is a conflict of interest," he wrote.

In the letter, he also said he will no longer charge the city for towing city-owned vehicles.

His attorney, Arthur Langlie, called the suit "inappropriate and unmeritorious," but would offer little other comment. Peterson did not return calls.

At City Manager Olander's initiation, city staff members raised the issue after Peterson was elected to the council and before he was sworn in. Olander said he was concerned that the city would receive a critical state audit if it didn't resolve the conflict.

Efforts to get another agency to supervise the city's towing failed. Olander said the city is considering bidding out the business to other firms.

But according to another City Councilmember, Susan White, four of the city's seven council members have asked for Olander's resignation, saying they want a new direction at City Hall with a new manager.

White, who called the resignation request "shameful," suggested it was a retaliatory move because it occurred as Olander and his staff were gathering documents raising Peterson's conflict issue. White identified the four council members as Mayor Don Wasson, Maggie Steenrod, Richard Benjamin and Peterson.

Wasson confirmed that the resignation had been requested in two separate meetings with the four council members. But he said, "I believe the request had nothing whatsoever to do with the claims of conflict of interest."

Steenrod declined to confirm the request. Benjamin did not return a call.

Wasson said he and the three other council members, whose identities he did not confirm, have no specific differences with Olander, "just a feeling we'd like to see a new fresh approach."

Olander, for the moment, remains on the job. Asked about the reported attempt to fire him, he would say only that "discussions are continuing between the City Council and me regarding the possible transition and future administration of the city. I'm hopeful that our discussion will conclude within the next few weeks." (Larry Lange - Seattle PI)

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FLORIDA -- Park a car illegally in West Boca, and you could a 288 towing bill, even if you collect the car within hours.

Do the same across the Broward County line, and you won't pay more than $100, according to Palm Beach County consumer-protection officials.

Saying that Palm Beach County has the highest towing rates in the state, officials are leaning toward lowering them. Over the objections of towing companies, county commissioners tentatively agreed Tuesday to changes that would halve the towing bills in some common scenarios.

A final vote is expected March 12.

The proposed fees would affect only tows ordered by police clearing accident scenes or for stolen vehicles, or by property owners impounding illegally parked cars.

The limits also would not apply in cities with their own towing rates.

Towing bills can vary widely, as they tend to be a menu of fees for different services. But, according to the county's research, the fees charged locally for many services are as high as those allowed in 11 other Florida counties, including Broward and Miami-Dade -- and more often, higher

For example, Palm Beach County allows $120 for the towing alone of a standard-size car, excluding mileage, storage and other potential charges. Broward allows $78 for the same service, Miami-Dade County $88, and New York City $100, according to the Palm Beach County Consumer Affairs Division's research.

"We felt like we absolutely needed to bring that in line," said Consumer Affairs Director Dennis Moore.

In one common scenario -- an illegally parked or accident-damaged car towed 10 miles at 6 p.m. and recovered within six hours -- towing, storage and other services can add up to $288 in Palm Beach County, according to county staffers. Broward would allow only $100, and Miami-Dade up to $123, the staffers found.

Under the terms discussed Tuesday, Palm Beach County tow companies could charge $100 for impounding a car from private property, and $110 -- plus $4 per mile -- for towing a car on police orders.

There would be additional fees for cars claimed after more than 24 hours, or between 10 p.m. and 6 a.m., and for special situations such as underwater work.

Towing representatives advised the county on the fee proposal. But several tow-truck owners pleaded with commissioners Tuesday to crack down on price-gouging instead of lowering all prices.

"It really isn't an issue of price; it's an issue of a few companies doing an illegal practice," said Kenneth Duvall, president of Duvall's Towing Service in Lake Worth. "To cut all our revenue by 30 or 40 percent is going to put a lot of people out of business.

"I guarantee you I don't make 30 percent profits." (Jennifer Peltz - Sun Sentinel)

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For a second consecutive year, J.D. Power and Associates rated the Caterpillar 3406E diesel engine highest in customer satisfaction for both over-the-road and vocational heavy-duty diesel engines.

In addition to the overall satisfaction measurement, the Cat 3406E was ranked highest in five individual engine satisfaction measures.

The awards were given based on the results of J. D. Power's 2001 Heavy-Duty Truck Engine and Transmission Customer Satisfaction Study, an annual survey that measures customer satisfaction with product quality and performance.

The study, which was based on interviews with more than 2,800 Class 8 truck owners, evaluates several performance criteria, including engine performance and quality, warranty, noise and fuel economy.

Engine life, which encompasses durability, reliability and length of warranty, was the most important factor, accounting for more than half of the total impact on overall customer satisfaction.

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Fears of an increase in diesel prices failed to materialize as the national average price for a gallon of diesel fell 0.2 cents to $1.154 for the week ending Feb. 25.

Some analysts feared higher fuel prices when the Bush Administration suggested it might expand its war on terrorism to Iraq. Oil prices rose slightly, but diesel prices have remained in the same range. In fact, this week's numbers mark the third month in a row that the diesel average has stayed below $1.20 and the seventh week in a row the price has stayed below $1.16.

For the week ending Feb. 25, diesel prices closed highest in California, averaging $1.296.

To check the diesel fuel prices in your area, go to www.itow.org/fuel.htm.

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WASHINGTON D.C. -- New towing regulations announced this week by D.C. Mayor Anthony A. Williams do not clearly indicate whose responsibility it is to notify the owner of a vehicle that has been towed.

The current city code says it's the responsibility of the Metropolitan Police Department or the Department of Public Works to notify owners of a towed vehicle. But the newly announced regulations do not indicate whether it's up to police, public works or the towing company to contact the owner.

Notification is the industry's biggest problem, according to one towing company owner, who said the new regulations would do nothing to solve it.

"I've seen the regulations and I've read them through," said Terrence Ross, the owner of R&R Towing and Recovery.

"They're changing the whole system, and the system is not the problem. The problem was that police officers aren't doing their jobs, and owners aren't getting notified when their cars get towed," said Mr. Ross, who added that many of the city's towing operators are troubled by the new regulations.

Mr. Ross' company is one of seven towing businesses that, along with the Metropolitan Police Department, were named last month in a class-action lawsuit accusing corrupt police officers of conspiring with towing companies to illegally confiscate cars.

Title 18 of the D.C. Municipal Code states that "it is the duty of the Police or the Department of Public Works ... to notify the owner of the vehicle as soon as is practical."

The code does not specify how much time the city has to notify the owner.

Officials with the mayor's office admitted that they purposely created the new regulations without indicating whose responsibility it will be in the future to notify the owners of towed cars.

"The new regulations are really aimed at the towing industry," rather than D.C. police, said Erik S. Gaull, the city administrator's director of operational improvements. "We recognize that there are certain policies that we need to change."

Mr. Williams vowed to draft the new regulations to, in his words, "clean up the city's towing industry" after a report issued by the office of Inspector General Charles C. Maddox uncovered illegal towing schemes involving corrupt police officers.

Officials in the inspector general's office yesterday said they were not entirely satisfied with the new regulations.

"One of the major points of our report was to recommend that regulations be put in place to ensure that owners are notified when their cars are towed," said Gloria Johnson, Mr. Maddox's spokeswoman.

He also said "there is a hesitancy to lay the responsibility of notifying owners of towed cars entirely on the Department of Public Works."

"To lock it down that way would make it very difficult for us to go back and change it later if we feel like it's not the best idea," he said. "It's really one of the areas we're looking for public comment on."

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MISSOURI -- Unusually warm winter weather might be great for outdoor weekend fun, but it has been tough on towing businesses that count on weeks of snow, ice and freezing temperature to bring in the money.

As with any wide-ranging change in market conditions, this warm winter with temperatures occasionally hitting the 60s has pinched, not only, towing companies but businesses from hardware stores to snow-removal contractors, from auto-body shops to furnace-repair crews.

And even if the weather turns cold this week as predicted, those companies know that with spring just weeks away, the potential for nasty-weather days has dwindled - along with the money making opportunities.

Many natural gas companies that count on selling more units of gas during cold weather are filing for price increases. But towing businesses can't ask a regulatory agency to approve higher prices to cover their costs.

Mark Hartmann, owner of Hartmann's Auto Center & Towing Inc., believes he can keep his tow-truck and repair crews on the payroll by watching his costs and counting on his company's 36 years in the area to keep the business running.

"I'm hoping for a real hot summer," he said with a laugh. In hot summers, overheated cars and other problems keep tow trucks busy.

Mike Right, a spokesman for AAA Missouri, said the lack of cold spells that last several days or longer has meant fewer calls for tow trucks to jump-start vehicles. He estimated such calls were down 10 percent to 20 percent for January.

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WASHINGTON -- Can a towing and auto repair business co-exist with a residential neighborhood? A number of North Auburn residents say no. They are concerned about noise, pollution and aesthetics.

"We are very upset," said Lisa Suver, who manages the Parkside Retirement Community that has a three-story independent living complex next to the site.

A 24-hour towing operation with an impound lot next door isn't what residents there or prospective residents would want to listen to, she said.

Keith Lewis, owner of Motorplex Corp. of Maple Valley that wants to build the facility, says yes.

Noise would be minimal, even with the 24-hour towing service, he said, adding that the impound lot is small and would average about 20 to 30 cars at any time.

Besides, Lewis noted, the C3 zoning of the property along 30th Street Northeast between Auburn Way North and I Street Northeast allows the facility.

He said fears that there will be a junkyard or wrecking yard there are unfounded. Zoning doesn't allow it.

"All we want to do is comply with regulations and move forward with a professional operation," he said. He encouraged anyone with concerns to visit his Maple Valley Motorplex and Pro-Tow service at 23933 S.E. 264th St.

No permits have been issued for the Motorplex and it is currently undergoing environmental review. The Auburn Planning Department has issued a preliminary finding that the project poses no environmental problems that can't be mitigated and does not require an environmental impact statement. A public comment period ended Feb. 13.

After receiving three letters of concern, the city forwarded them to Lewis for responses and decided to hold off on a final environmental determination.

Lewis said he hasn't received the letters yet.

John Underwood, a partner in the company that owns the Parkside Retirement Community with facilities at 2901 and 2902 I Street Northeast, has urged the city to require a full EIS "to thoroughly analyze whatever arguments are used to justify this outrageous intrusion into a quiet neighborhood."

He called for "common sense" by city officials.

The site, though it nearly borders on Auburn Way South, is a narrow piece of land that stretches from the very commercial Auburn Way Northeast an entire block to I Street Northeast which borders a residential area. There are two retirement/nursing homes near the site. There are no residences on 30th Street Northeast across from the site.

A KinderCare Learning Center is located next to the site along Auburn Way North. Manager Rose Whitley said they are glad the vacant lot is going away but would be concerned about a noisy business next door.

Vern Needham, who lives in Riverpark Estates east of I Street Northeast, said he opposes it because of its potential impact on the neighborhood.

Another area resident, Delia K. Sanders, said the project "is just another slap in the face of homeowners in the area," adding the area is already overrun by car dealerships on Auburn Way North.

She pointed out that I Street Northeast from 30th Street Northeast has become a bypass around Auburn Way North.

"Auto repair, impound lots should be on the back side of town where there are many rundown junky lots which could be improved," she wrote. (Mike Archbold - South County Journal)

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WASHINGTON -- In a sweeping measure that would raise $5.6 billion to ease traffic congestion, the Washington State Legislature is considering a bill that would raise gasoline taxes by 8 cents a gallon and raise the costs commercial trucks, like tow trucks, pay for weight fees by 20 percent.

According to published reports, voters must give final approval of the measure in a referendum, if the bill is ultimately passed by the legislature. Currently, the bill is under review by the Washington House Transportation Committee.

Jim Tutton, vice president for the Washington Trucking Association, said his organization is lobbying against the bill. “We support our fair share of road projects,” he said. The Independent Towers of Washington are also opposed to the bill.

Under the proposed legislation, a gallon of gasoline would cost 4 cents more in October 2002 and go up another 4 cents a year later. Weight fees would go up 10 percent in October and another 10 percent a year later. The bill is House bill 2969.

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NEW YORK -- A law which the city of Buffalo says will protect accident victims in Buffalo from shady tow truck operators has gone unenforced since it was passed 14 months ago.

Officials want to revamp the ordinance, and hope to test the new regulations on a few major routes later this year. The pilot project would involve accidents that occur on the Kensington and Scajaquada expressways and along Route 5 in the city. 

The Common Council's Legislation Committee is trying to revive an effort that started in 2000 after some complained about a "free-for-all" atmosphere at many accident scenes. 

The situation hasn't improved, said John Womer, superintendent of the city impound. Several tow truck operators frequently race to accident scenes, then squabble with competitors over who should do the towing. "There's an atmosphere of intimidation and even violence," he said. "There are shoving matches and sometimes even the threat of weapons being drawn." 

The 14-month-old ordinance includes special licenses and fees for the city's 150 tow truck operators, which has been proven illegal by federal courts, and the creation of new "tow zones" that would determine which companies would be called by police. It also calls for truck owners who want to become authorized operators in a zone to pay an outrageously high $1,000 registration fee every two years.

But the joke is on the city, who has only received 3 applications from the city's 150 towing companies. Tow truck operators are concerned that there wouldn't be enough business generated to justify the cost.

"Lack of interest by the towing industry has made the law impossible to implement" said Licenses Supervisor Patrick Sole Jr. "With that limited level of participation, there isn't enough manpower to (implement) the ordinance. If we don't attract towers, I don't think it's going to fly." 

Salvatore J. Buscarino, who owns two auto repair and collision shops in Buffalo, helped shape the original ordinance two years ago. But he said it has since become evident that some of the provisions must be changed in order to encourage participation. 

"Everyone seems real leery about the $500 a year and whether the city is really going to enforce the zone concept," said Buscarino, whose company is among the operators that have applied. 

Council members are considering a plan that would reduce the two-year registration fee of $1,000 to perhaps as low as $100. 

Lawmakers said they also hope to amend the ordinance to close what they call a "loophole" that gives vehicle owners the option to choose a towing service. What they call a loophole is every motorists right in most citys, but at the vast majority of accident scenes, police officers make calls to tow truck operators, officials said. 

Harold Litwin Jr., chief of operations and criminal investigation in the Police Department, thinks the city should test the ordinance on a more limited scale before trying to implement it citywide. He suggested implementing the law only on the three limited-access routes for the time being.

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WASHINGTON -- A Snoqualmie valley man died from injuries he sustained in a traffic accident involving a tow truck.

Vernon Peter Berg, 81, of North Bend spent the last three weeks of his life unconscious in Harborview Medical Center's intensive care unit. He succumbed to his injuries Wednesday morning with his family at his side.

Berg was injured on the evening of Jan. 31, when his 2000 Toyota Camry crashed into a CenturyTel telephone line maintenance truck on State Route 202 near Meadowbrook Way in Snoqualmie.

According to the man's son, the telephone service truck had gotten stuck in the mud on southbound SR 202, also known as Railroad Avenue Southeast. A tow truck had come to the aid of the stuck 2000 Ford truck.

Just as Berg was driving northbound on Railroad Avenue about 5:30 p.m., the stuck truck was freed from the mud and suddenly crossed the northbound lanes of the road headed south. That's when Berg slammed into it.

A 51-year-old North Bend man driving the truck wasn't injured.

The younger Berg said he believed both the truck driver and his father were cited with minor traffic infractions in the accident, but the State Patrol yesterday wasn't able to confirm any citations. A State Patrol spokesman said it was unlikely that any further charges would be filed following Berg's death.

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Analysts think that gasoline prices could start rising in mid-March, the Associated Press reported Wednesday, as refineries start producing summer-grade fuel.

To produce the cleaner-burning summer gasoline required in some areas, refineries must take equipment apart, clean it and begin producing again. Those shutdowns will eat into the country's gasoline inventories, driving prices higher, the AP said.

Refiners can inject extra winter gasoline with additives for use during the summer, but that too will cause inventories to evaporate.

Analysts are also predicting cyclical price spikes in places like California, the Midwest and the Northeast as buyers purchase gasoline, bidding prices higher over fears of shortages of reformulated gasoline, the AP reported.

Gas prices are important to the towing industry, not only because many tow trucks are gasoline powered, but because high gas prices keep motorists off the road.

California has another problem that will cause fuel prices there to rise even more.

Replacement of an emissions-lowering additive with ethanol will double the price of California gasoline, the Wall Street Journal reported Thursday.

The additive, methyl tertiary-butyl ether, is used to make gasoline comply with California emissions standards. However, it has been indicted in the contamination of groundwater, and California Gov. Gray Davis asked his energy commission to study the impact of phasing out MTBE.

The WSJ said ethanol is the only alternative to MTBE.

However, replacing MTBE with ethanol could lead to shortages of 5 to 10% in gasoline, the Journal said.

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Castrol Heavy Duty Lubricants has introduced a new line of diesel engine oils designed to meet the needs of new Exhaust Gas Recirculation (EGR) engines as well as help improve performance of older diesel engine models.

Castrol's Enduron S, Tection Extra, and Tection S, are part of a major rollout of products designed to meet engine oil specifications developed by the American Petroleum Institute (API) for new low-emission EGR engines due to arrive on the market in October of this year.

Baltimore-based Castrol said its Enduron S and Tection Extra meet API's CI-4, CH-4, CG-4, CF-4, and SL engine oil specifications, as well as Cummins' CES 20078, 20076 and Mack's EO-M requirements. Castrol's Tection S meets current diesel engine oil specifications and API's CI4 requirement.

Enduron S is Castrol's top grade product from its new engine oil line. It's made from a synthetic blend base stock, is designed to produce low levels of ash, has higher detergent properties to neutralize higher acid levels in EGR engines, and will not compromise performance if it's used in older diesel engine models.

Tection Extra has almost the same performance characteristics as Enduron S, except that it does not have the same level of viscosity control that Enduron S has. Tection S represents the low end of Castrol's new engine oil line, providing soot-level control EGR engine compliance and standard capabilities in terms of engine component protection.

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FLORIDA -- City of Hollywood commissioners awarded its lucrative towing contract to the top-ranked contender after a bitter contest for the city's towing business. 

Festa Towing, which recently came under fire for allegedly overbilling customers whose cars were towed at the behest of police, retained the city's towing contract after receiving an endorsement from Hollywood's Police Chief James Scarberry. Scarberry explained that Festa Towing was not overcharging because their contract was outdated, and the city had not noticed.

Despite being cleared of wrong doing, commissioners called for stricter supervision, including phone numbers on tow tickets that tell customers where to call with complaints.

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WASHINGTON D.C. -- FBI announced yesterday that a secret, four-year probe into corruption in the District's towing industry resulted in the arrest of 60 persons.

D.C. Mayor Anthony A. Williams says the problems uncovered during the FBI's investigation — "Operation Towhook," according to authorities — figured largely in new ideas to clean up the towing industry.

In announcing proposed regulations yesterday, Mr. Williams was joined at his weekly news conference by Van A. Harp, assistant director in charge of the FBI's Washington field office.

Mr. Harp said a multiagency task force made up of federal and local authorities from the District and other area police departments facilitated the investigation that identified 26 targets involved in towing conspiracies. Harp failed to specify how many were tow drivers and how many were corrupt police officers which were also involved. 

"Part of the schemes would be for tow-truck drivers to target cars to steal and once they latched onto them, they were actually stealing them and then they would find ways to dispose of them," he said.

The stolen cars were either sold by towing operators to "chop houses," which broke the vehicles down to sell the parts, or were sold or broken down by the towing operators themselves, he added.

During the investigation, the FBI recovered $2 million worth of stolen cars and parts.

Mr. Harp also said federal courts in Maryland, Virginia and the District have ordered more than $850,000 in restitution to victims of towing scams.

In the wake of this investigation, the mayor has finally proposed regulations that, in his words, will clean-up the industry. The towing regulations are the first to be proposed since 1965.

The mayor's regulations which were published on Friday in the D.C. Register, will require all towing operators in the District, contrary to federal deregulation, to get a special license.

The regulations also would establish a maximum fee that towing operators who haul cars at the request of D.C. police could charge. For a standard passenger vehicle, including station wagons and sport utility vehicles, the maximum charge would be $150.

He vowed to draft the regulations in August after the office of D.C. Inspector General Charles C. Maddox uncovered a scheme in which corrupt police officers used towing companies to illegally confiscate cars and charge victims exorbitant storage fees.

The regulations will be available for public comment until March 20.

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DaimlerChrysler AG, the world's largest automaker, said Wednesday that it lost $34 million, or about 3 cents per share, in the fourth quarter, down from net income of $1.2 billion or about $1.24 per share in 2000, Bloomberg reported.

Along with its numerous consumer car and truck offerings, Daimler is also the parent company of Freightliner, the largest truck maker in North America.

For all of 2001, Daimler lost $578.7 million, or about 58 cents per share. In the previous year, the company earned 6.9 billion, or $6.88 a share. Sales fell 5.9% during the year.

The company had charges of $3.8 billion from its Chrysler, Freightliner and Mitsubishi subsidiaries, but offset those losses with the sale of $1.4 billion in assets, Bloomberg said.

Daimler claimed revenue of $25.4 billion on sales of 492,900 trucks. The company said that sales levels did not reach the previous year's level because of a drop off in the North American and Argentinean markets. The commercial truck division saw its profits drop to $45 million, mostly from a sustained loss by Freightliner.

Freightliner launched a comprehensive restructuring plan in October 2001. The company may need to spend even more on restructuring in 2002, Reuters reported.

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If Russia decides not to maintain its production cutbacks, it will be impossible to keep oil prices at current levels, Qatar's oil minister told Bloomberg News Wednesday.

The prices of diesel fuel and gasoline, both used in large quantities by the towing industry, tend to follow the movements of the price of crude oil.

The Organization of the Petroleum Exporting Countries cannot manage the market alone, Abdullah bin Hamad al-Attiyah, said in Doha, Qatar.

Russia, the second-largest oil producer after Saudi Arabia, promised in December to reduce output by 150,000 barrels a day. However, Russian oil companies have complained about lower earnings from exports and analysts expect that Russia will end its export reductions after March, Bloomberg said.

The price of oil on the London and New York markets has fluctuated between $20 and $21 for weeks.

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INDIANA -- A tow truck was called upon to stabilize a wrecked truck while emergency crews freed the driver with the Jaws of Life.

A Loogootee man was injured in the one-vehicle accident Monday. Russell Padgett, 22, was driving west on U.S. 50 at 3:30 p.m. and lost control of his 1993 Chevy pickup going off the north side of the road near Daviess County Metal in Cannelburg.

He struck a tree head-on. Padgett was trapped in the truck until Southwest Medical Services freed him using the Jaws of Life after Craney's tow truck helped to stabilize Padgett's vehicle.

The Air Evac helicopter was called in and landed on U.S. 50. Some traffic was rerouted, while other vehicles waited in line for about a mile on each side of the accident for more than an hour. Padgett was flown to Methodist Hospital, Indianapolis, where he was admitted with hip and leg injuries and multiple bruises.

He was listed in good condition this morning. The state police report indicated charges are pending.

The accident was worked by state police with the help of the Daviess County Sheriff's Department, Air Evac and Southwest Medical Services.

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FLORIDA -- Broward County is claiming that a local tow truck operator is violating the recently amended Broward county towing ordinance which caps non-consensual towing fees.

A federal court ruling issued last year severely limited the extent to which local governments can regulate towing. As a result, counties can no longer impose licensing fees and require background checks on tow-truck drivers. They were ordered to refund millions of dollars to towing companies.

Like a lot of counties and cities, Broward has revised its ordinance to rescind the need for background checks or to regulate other aspects of towing. It has however kept the six year old fee cap.

Despite the ruling, it is generally agreed that counties can still cap the fee for non-consensual towing. The cap in Broward is $78; in Miami-Dade it is $88. Beyond that, there is disagreement.

Some local tow operators believe they have no choice but to impose other fees, such as a yard fee, because the county has not raised the $78 cap in six years.

Martin Ritzer, Owner of All Points Towing in Fort Lauderdale recently told the Miami Herald that his insurance costs three years ago was $44,000 a year, but have now risen to $97,000.

Mona Fandel, director of the Broward County Consumer Affairs Division, which deals with towing complaints, said towing companies found in violation of the county ordinance could be fined $500 a day, if someone would file a formal written complaint.

While the county claims that All Points Towing, with 17, has received more phone-in complaints then any other company, mysteriously, none could be convinced to submit a complaint in writing.

All Points Towing is a high volume, high profile downtown towing company which performs a lot of impounds, therefore 17 complaints is actually a very low number.

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Freightliner Trucks today officially introduced it's answer to the 2002 International, the Business Class M2, the next generation of its medium-duty truck line. Like the current version, it will span Classes 5 through 8 and will eventually be offered in 100-, 106- and 112-in. BBC models.

Representing a $250 million investment, the all-new design offers significant improvements in productivity and operational efficiency compared to the original Business Class, according to Rainer Schmueckle, president & CEO of Freightliner LLC, the North American parent of Freightliner Trucks, Sterling Truck and Western Star trucks.

Starting in June the company’s Mt. Holly, NC, plant will begin limited production of the 106-in. BBC M2 on new highly automated assembly lines. Extended and crew cabs will be available in late 2002, with 100- and 112-in. BBC models joining the lineup in 2003. The company also promises it will eventually offer a wide variety of configurations to fit a broad range of medium- and heavy-duty truck applications. Current Business Class models will be phased out gradually as corresponding M2 versions become commercially available, according to Mark Lampert, senior vp, sales and marketing.

Design highlights for the new truck include an aluminum cab with a 2,500-sq. in. windshield and deeply sloped hood for excellent visibility, according to Michel von Mayenburg, senior vp, engineering and technology. Improved maneuverability is provided by wheel cuts as sharp as 55 degrees, delivering a turning radius of less than 57 ft. with a 20-ft. van body. The cab interior is roomier than the previous model and features an entirely new blend-air HVAC system with electronic controls.

Other features for the M2 include new spring suspensions that provide improved ride while lowering maintenance requirements, a multiplexed wiring system with advanced control and diagnostic functions, and both high and low cab versions designed for easy driver entry and improved crash protection.

The Mercedes-Benz MBE900 4- and 6-cyl. diesel will be the standard engine for the M2, offering ratings ranging from 170 to 280 hp. Caterpillar’s 3126 will also be initially available in rating from 175 to 300 hp. Transmission choices will include an Allison automatic as standard as well as optional Eaton manuals and automated mechanicals, and the Mercedes-Benz MBT synchronized 6-spd.

Although the Business Class M2 will be sold only as a Freightliner truck, many of its advanced chassis components will eventually migrate to sister division Sterling’s Actera, as well as the company’s specialty bus and RV chassis, according to von Mayenburg.

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WASHINGTON D.C. -- Mayor Anthony A. Williams today will deliver the blueprint of his plan to clean up the District's towing industry.

An official in the mayor's office told The Washington Times yesterday that Mr. Williams will announce the specifics of new towing regulations for D.C. police and tow-truck drivers at a briefing this morning. He has also invited officials from the FBI's Washington Field Office to join him in the announcement, the source said.

Mr. Williams vowed to take action last year after the office of D.C. Inspector General Charles C. Maddox uncovered a scheme in which corrupt police officers used towing companies to illegally confiscate cars and charge victims exorbitant storage fees.

The Times first reported on the inspector general's findings in August. Two victims of the scheme have since filed a class-action lawsuit against the Metropolitan Police Department and seven of the city's licensed towing companies.

Phillip Friedman, the lawyer representing victims in the class-action suit, says since it was filed early last month, more than 60 people have sought to join it.

Many of the victims are owners of cars with out-of-state license plates, which apparently have been targeted by corrupt police officers.

The mayor's office says it has taken longer than originally expected to draft the new towing regulations because legal problems with the D.C. Council. But, last month the city admitted that their legal department had discovered the city's power to regulate towing was very limited by federal law.

Under the direction of Council member Carol Schwartz, head of the committee on public works, the council last month voted unanimously to give the mayor first say over the regulations but reserve the right of the council to review them before implementation.

Mrs. Schwartz, at-large Republican, previously told The Times that if the regulations called for "extraordinarily high" standard towing fees, she wanted to have a chance to weigh in.

Mr. Williams plans to devote the bulk of today's weekly press briefing to explaining how the new regulations will put an end to the ongoing problem of illegal towing operations in the District, a source in his office said.

The extent to which the FBI will be involved in the new regulations was not clear yesterday. FBI officials confirmed that they would be involved in the briefing but declined to give further details until later today.

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SOUTH CAROLINA -- A flat-bed tow truck carrying several other vehicles smashed into the front of a Laurens County house on Monday night. The crash occurred on U.S. 25 at Maddox Bridge Road.

Troopers said that when a car pulled out in front of the wrecker, the truck's driver swerved and ran off the road and into the house. No one was home at the time and the driver of the truck was not seriously hurt.

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MINNESOTA -- Superior Mayor, Sharon Kotter on next Tuesday plans to veto recent amendments made to the city's towing ordinance.

The council approved changes to the city's towing ordinance on Feb. 5. During the meeting several tow operators expressed their unhappiness with the amendments and warned the issue would come back to the council.

Despite this councilors approved the ordinance anyway. A few days after the meeting Kotter sent a letter informing councilors of her plan to veto the ordinance.

"I thought there were a lot of questions that night," said the mayor. "I did suggest to the council that maybe they shouldn't pass the ordinance and refer it to the Committee of the Whole, but they passed it. But after the meeting I decided I didn't want to deal with over and over again. It has gotten to be taken care of."

The city has been dealing with problems with towing since 2000. A task force was organized to respond to issues such when a vehicle can be towed, at what cost, what is required of tow operators and vehicle owners and how soon a vehicle can be taken away.

"Rather than have it go through and come back it will get sent back to the towing committee," said Kotter. "I want everyone to be happy with it."

Tow operators are having difficulty getting rid of junk vehicles that they have hauled for the city. Consequently, tow operators' lots are getting crowded since if no one claims the car, it then belongs to the tow operator. But getting rid of the vehicle is cumbersome and costly -- the cars' fluids, batteries, mercury switches and other parts must be removed and the market for scrap metal is very low.

One option that will be considered will be for the city to have its own lot to store abandoned and junk vehicles that tow operators have hauled away for them.

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The average cost of a gallon of diesel changed little, rising 0.3 cents a gallon to $1.156 for the week ending Feb. 18, according to government figures.

For the past two months the price has hovered between $1.14 and $1.16 nationally as diesel supply remains high, despite efforts to lower the overall supply of oil. Those efforts, led by the Organization of Petroleum Exporting Countries, have started to have an effect on the price of crude oil. For the first time in several weeks, crude oil prices rose above $20 a barrel in trading during the past seven days.

Analysts say the price of crude is also up on fears of a U.S. attack on oil-producer Iraq. But that doesn’t seem to be affecting the price consumers and tow operators pay at the pump. While diesel was up slightly for the week, gasoline prices actually fell.

Diesel prices remain low because diesel supplies are at historic highs, the U.S. Department of Energy said in a report Feb. 13. According to the report, however, refiners may be decreasing diesel fuel production to compensate.

Diesel prices rose slightly in every reporting region accept California, where the average cost of a gallon of diesel declined 0.8 cents.

For diesel prices in your area, go to www.itow.org/fuel.htm.

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UTAH -- Authorities closed northbound lanes of I-15 at Beaver Pass for two hours Monday after a tow truck caused a 20-car pileup.

The accident occurred at about noon as vehicles apparently tried to avoid hitting a tow truck parked partially in the outside travel lane, Utah Highway Patrol Sgt. Kevin Olson said. It was snowing heavily over the pass at the time.

There were no serious injuries from the accident, Olson said.

Several local troopers have Olympic assignments, and officers from the Beaver County Sheriff's Office, the Division of Wildlife Resources and the Motor Vehicle division responded to the scene, Olson said.

The Beaver County Attorney's Office will decide if criminal charges will be filed against the driver of the tow truck. Shortly before the accident, a trooper told the tow truck's driver, who was trying to recover a truck that had slid off the road, to leave the scene. The driver apparently didn't listen, Olson said.

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CALIFORNIA -- Oakland politicians are scrambling to curb so-called "sideshow" stunt driving events, following two violent incidents over the weekend.

A 22-year-old woman died early Saturday after her car was hit by another that had been spinning doughnuts. Police arrested the 27-year-old driver. Minutes later, a man was shot five times at another sideshow. He survived, and is in stable condition.

Oakland Mayor Jerry Brown wants to enact emergency laws allowing police to impound any car involved in a sideshow. In addition, Senator Don Perata has drafted a bill giving police the power to tow the car of any driver who has been cited as a speed exhibitionist.

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CONNECTICUT -- Emergency crews needed the help of a tow truck and the Jaws of Life to extract the victim of a one-car rollover that sent a woman to the hospital with serious head injuries Thursday afternoon, police said.

Upon arriving at the accident scene near 480 New Britain Ave. shortly after 1 p.m., police found a white 1998 Toyota Camry lying on its roof in the middle of the road. Rescue crews struggled for more than half an hour to extract the driver, who was the sole occupant, from the car.

According to police, the victim, Patricia Castelhano, 50, of 28 Kelsey St., Newington, was taken by Life Star helicopter to St. Francis Hospital in Hartford, where she was in stable condition Tuesday night.

A tow truck was used to pull the car up on its side while firemen and officers crawled under the vehicle and worked to remove Castelhano from the vehicle.

Castelhano was conscious throughout the entire extraction, Sgt. Len Kulas said.

Preliminary investigations showed that the car had apparently been traveling east on New Britain Avenue at a high rate of speed when it veered off the south shoulder of the road and struck a utility pole, Kulas said.

The car sheared off a telephone pole, flipped, and eventually landed on its roof, trapping the driver in, Kulas said. "We do not know why she went off the road," he said of the cause of the accident, but added that there will be further investigations.

Kulas said police had received reports of an erratic driver shortly before the time of the accident and only a block away from where it occurred. The description of the car matched that of the white Camry.

An officer was actually looking into the report of the erratic driver when he heard of the accident, Kulas said. Police have yet to determine if the accident victim was also the erratic driver.

The Rocky Hill Police Department is actively investigating this incident, and requests that anyone have seen anything related to it to please contact Officer Clyde Tyler at (860) 258-7640.

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TEXAS -- A 66-year-old man was killed in an automobile accident involving a heavy wrecker on the corner of East Blvd. and State Hwy. 225 feeder road in Dear Park.

According to Deer Park police, the man ran a red light in his minivan, which then collided with a wrecker. The wrecker was hauling an 18-wheeler.

"He ran the red light at about 45-miles-per-hour," said Lt. Wade Conner, lieutenant in charge at the scene of the accident. "He was eastbound on the feeder, and hit the front end of the heavy-duty wrecker."

According to Conner, witnesses of the accident said the wrecker was going approximately 20 mph on an incline, when it was struck in the right side by the minivan. The wrecker's driver suffered minor injuries as a result of the accident.

The late model minivan was thrown by the impact into the concrete barricade. Fragments of the minivan laid scattered across the roadway.

The eastbound feeder of Hwy. 225 leading to East Boulevard and the overpass of Hwy. 225 were shut down as police cleared a landing spot for Life Flight. Life Flight, which was en route, was canceled when the man was declared dead on the scene.

The driver's name is being withheld pending notification of next of kin.

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WASHINGTON D.C. -- The driver of a tow truck that went through a security checkpoint near the Pentagon Monday night was released on bond yesterday after spending more than three days in jail. Family members said Imad Abdel-Fattah Hamed, 26, has no connections to terrorism and was held because he is a Jordanian native.

Federal authorities are still investigating why Hamed, of Manassas, drove through a Virginia State Police checkpoint on Route 110 and why he had several forms of conflicting identification, including two Virginia driver's licenses in different names. Officials initially were concerned that Hamed and his passenger might have been checking out the Pentagon with ill intentions, as they were pulled over shortly after a federal alert about potential terrorist attacks.

But a federal magistrate judge ruled yesterday that Hamed is not dangerous, and prosecutors said they were satisfied they had established his true identity. Assistant U.S. Attorney John Morton said that officials have confirmed that Hamed, a copier repairman, is a naturalized citizen who also carries a passport from Jordan.

At a brief hearing yesterday afternoon in U.S. District Court in Alexandria, Magistrate Judge Theresa C. Buchanan ordered Hamed released on $5,000 bond, which his family posted in less than an hour. Hamed is not allowed to leave the region and surrendered two passports to authorities, as the judge ordered.

Morton said in court that he doesn't expect the case to make it to an arraignment, but he did not elaborate.

Hamed has been charged with one count of identification document fraud because of the two Virginia driver's licenses he was carrying -- one of which bears the name Imad Nimer and is registered to an Arlington address. Hamed's attorney, Michael Hadeed, said the license was issued in Hamed's Jordanian name.

"My client has nothing whatsoever to do with 9-11 and happened to be in the wrong place at the wrong time," Hadeed said after the hearing. "He's a family man . . . who loves being an American citizen."

Hamed's passenger also had identification in several names, including a passport from the United Arab Emirates in the name of Sultan Rashed Sultan Jasmon Alzaabi, 22. He has been detained by the Immigration and Naturalization Service, according to court documents.

Hamed's wife, brother and other family members attended yesterday's hearing, some crying quietly when he was brought into the courtroom. Hamed's brother, Basel, runs a towing company out of the family's Manassas home, and Hamed's wife said earlier that Hamed simply got lost Monday night en route to Maryland.

"He was jailed because of the color of his skin, because he is from Jordan," said one member of the family, who asked not to be identified. "We are just happy that he will now be able to go home to his young son and his wife." (Washington Post)

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TEXAS -- El Paso police have launched a program to stop truck drivers from parking their tractor-trailers in residential neighborhoods, in business parking lots and on vacant land.

"The truckers live in the area. They find it's a convenient way to be ready to go, but it's inconvenient for other residents and it tears up the streets. The streets are not made for these heavy trucks," said Sgt. Ignacio Hernandez of the Pebble Hills Regional Command Center.

Police will ask business and property owners for letters authorizing them to tow parked trucks without having to ask the property owner's permission each time. Officers then tag trucks with bright orange stickers notifying drivers that they have 48 hours to move the trucks or face getting towed at the truck owner's expense. Recovering the truck costs $125.56 plus storage fees.

Police said property owners may have trucks towed on their own, but most prefer that police handle it.

It's unlikely that business owners would allow trucks to be parked on their properties unless they have a special permit because they, too, can be fined.

Harvey Development President Will Harvey, who owns shopping centers on Lee Treviño Drive and an empty lot next to the Pebble Hills command center, said he ordered a couple of trucks towed from his property last year so he wouldn't be fined himself. Harvey is one of several property owners who recently complained to police.

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FLORIDA -- Gasoline prices – down 1.2 cents nationwide in the last month to an average $1.12 per gallon – are a welcome bargain for consumers and businesses trying to shake off the effects of a slow economy, AAA said today.

While most towing is performed with diesel-powered trucks, a good portion, especially in large cities, is carried out with gasoline-powered trucks. High gas prices also cause people to drive less and carpool more which can effect a tow business's bottom line.

The nationwide average price of self-serve regular gasoline was $1.132 one month ago and has fluctuated very little since then, AAA's daily, online Fuel Gauge Report shows. One year ago the nationwide average price was $1.477.

AAA said the outlook for continued stable gasoline prices remains strong for the first quarter of 2002, as long as worldwide energy production is uninterrupted by military or political events.

Gas prices in the Southeast and Southwest are the best bargains this month, at $1.074 per gallon and $1.097 per gallon, respectively. Prices in the Southeast are down 1.9 cents and prices in the Southwest are down 1.6 cents from last month.

Prices in the Great Lakes, Midwest and Mid-Atlantic regions also have fallen since last month. In the Great Lakes, prices are down .1 cent to $1.112 per gallon. Midwest prices are down 1.5 cents per gallon to $1.115 per gallon. In the Mid-Atlantic states, prices fell .8 cent for the month to $1.12 per gallon.

The average gasoline price is unchanged in the West at $1.264 and in the New England prices increased 5.5 cents to $1.172 per gallon.

AAA's Fuel Gauge Report is based on data from Oil Price Information Service -- the nation's most comprehensive source of petroleum pricing information.

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MISSOURI -- Attorney General Jay Nixon filed suit Thursday against a south St. Louis County towing company accusing the owners of illegally towing and selling cars, charging exuberant rates and stealing from towed vehicles.

Nixon said he's asking a judge to put Denny's Towing and its operators, William and Wesley Gordon, out of business.

"While illegally parked vehicles certainly may be towed away, there are several laws on the books in Missouri to prevent the types of abuses that are being alleged here," Nixon said.

Nixon also wants the Gordons to pay restitution to any consumers who suffered financial loss because of illegal charges or damage to their property.

The towing company, at 3805 Reavis Barracks Road, became a target of an investigation after the Attorney General's office received numerous complaints from customers in the last few months.

The St. Louis County Police Department also collected complaints and forwarded them to state investigators this month.

William Gordon, 36, the company's president, is facing criminal charges following an incident with the St. Louis County police. Police said William Gordon locked an officer and his patrol car onto the tow lot during a disagreement about a stolen car.

The suit filed Thursday alleges that Denny's Towing violated Missouri law when it:

• Sold vehicles for which it had no title

• Failed to notify vehicle owner that their vehicles had been towed within five working business days

• Charged almost double the posted rates for towing and storage. Commercial truck drivers were paying as much as $1,700 to get their property back

• Routinely towed vehicles from private property without the property owner or manager being present

• Required vehicle owners to sign liability wavers without allowing them to inspect their vehicles for damage.

The attorney general has obtained injunctions against four other towing companies in the last six years for, what they call, predatory business practices. (Heather Ratcliffe - The Post-Dispatch)

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NEW YORK -- The Troy city council passed legislation last week that will add more requirements to tow operators as well as boost fees.

Passing 9-to-0, the legislation approved a contract worked out between the Police Department and Department of Public Works (no tow operators), and will supposedly ensure the public receives the best treatment when vehicles are towed.

The city currently deals with eight separate companies, representatives from each will attend a meeting on Feb. 21 at 10:30 a.m to review the contract which seems to be a done deal whether they like it or not. 

The good news for towers is that the towing fees will increase, putting them in line with other municipalities. The city will also increase ticket fines, and there will be a hefty price tag if you happen to leave your car in the wrong spot.

The city says the reason for increasing the tow fine is primarily for winter concerns. They say that during snow storms, companies are paid more by AAA to tow vehicles than they are by many municipalities. This can cripple a city's ability to remove snow bound cars.

Following a snow storm in Troy, it will cost people $115 if their car is towed, not including the traffic fine. Any other instance will cost $100.

Council President Harry Tutunjian said he is not a fan of the increased fines, but that the legislation was originally passed by the last council and used to balance the budget.

"The increased fines seem a little high," Tutunjian said. "I talked to the mayor about the possibility of changing it, but that was not done."

A lot of the previous items in the contract remain the same. The city is still divided into two zones, North and South. There will be a rotation list, in which each company begins on Sunday at midnight and ends Saturday. Each company is responsible for its zon