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Towing Companies Seek to Improve Efficiency
Oct 31, 2003 |
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TEXAS
-- Austin towing companies want to improve efficiency when responding to
car accidents, and they met with Austin police on Tuesday. For the past
two years towing companies have worked with the Austin Police Department
to clear wrecks in an efficient manner.
Tow companies want
their trucks placed by major thoroughfares 24-hours-a-day, 7-days-a-week
instead of only during rush hour.
They believe the move
will enable them to quickly clear major wrecks before the morning and
afternoon rush hours begin.
"So that traffic
can be cleared a lot quicker and anybody that's broke down on the
roadway or any collision will be moved out of the way, so we can get
traffic moving in Austin," Bobby New, with Austin Towing
Association, said.
The Austin Towing
Association hopes to improve its response time to 20 minutes with this
new system. Throughout the city tow trucks have a response time of about
45 minutes. (News 8)
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City Approves Small Towing Fee Increase
Oct 31, 2003 |
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FLORIDA -- A $7
increase in roam towing rates was approved by the Gainesville towing
advisory board Tuesday pushing the fee to $80. The board also voted to
eliminate additional fees such as storage for the first 24 hours after a
tow.
The City Commission
which meets again Nov. 18, must approve the board’s recommendation
before rates change.
Some companies would
like to lobby for a higher rate, but the fee cannot exceed $80 because
of some very questionable rules which set a Sept 30th deadline for rate
increases. If the Commission does not approve the rate increase, those
same questionable rules would keep the rate unchanged until at least
2005.
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City Council Tables Vote on Expensive Towing
Ordinance
Oct 28, 2003 |
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TEXAS
-- Willis City Attorney Larry Foerester requested that a vote on a new
towing ordinance be tabled until he can evaluate it's compliance with
state and federal law.
Faced with the possibility
that the ordinance may be illegal, two Willis council members still
voted against tabling an ordinance vote.
Councilmen Richard
Matheson and John F. Lovelady voted in favor of tabling the vote, while
Bill Van Alstyne and Josey Billnoske voted against it. Mayor Leonard
Reed voted to break the tie, and the ordinance was tabled by a vote of
3-2. W.L. "Blackie" Bilnoski did not attend.
Foerester reluctantly
requested to table the vote after Rena Wright, owner of Kuz's Towing and
Recovery in Conroe, presented him with what she believes to be problems
with the city's proposed towing ordinance.
Wright brought the
ordinance to her attorney, and together they pointed out several areas
of suspected noncompliance. Wright said that according to Texas House
Bill 1681, a "political subdivision," which she believes
Willis to be, may not charge more than $15 for a tow truck license or
permit. As the ordinance currently stands, the city of Willis would
charge $250 to any wrecker company wanting to pick up nonconsent tows in
Willis, with an additional $100 fee per truck on the permit.
Wright is also
concerned about the city's regulations regarding storage lots. If the
towing ordinance is approved, any wrecker service pulling nonconsent
tows would be required to store the vehicle in a storage lot within two
miles of Willis's extraterritorial jurisdiction. Wright's lot is in
Conroe across the street from the jail, and this ordinance would
prohibit her from storing a nonconsent tow at her lot.
In order for Wright to
pick up nonconsent tows, she would have to make arrangements with one of
the two wrecker services in Willis, either Adamick's Towing or
McCulloch's Towing and Recovery, to store her tows in their lots,
relinquishing the storage fees she would normally collect to them.
Van Alstyne requested
a special meeting be called to vote on the towing ordinance, but no date
was set. (Thanks Rick)
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Asurion Adds T-Mobile to Customer Roster
Oct 24, 2003 |
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Asurion
has added T-Mobile to its customer list for roadside assistance and will
be the sole provider of handset insurance for the wireless phone
carrier.
Nashville-based
Asurion's roadside assistance services include help with towing, lockout
assistance and tire changes. The Asurion handset insurance program
covers loss, theft or damage to the subscriber's wireless devices.
Through its worldwide
operations, Asurion offers customer contact, distribution, risk
management, marketing, repair, reverse logistics and field support
in-house.
The company has 1,200
employees in Nashville and La Vergne; Dallas and Houston in Texas; San
Mateo, Calif.; New Brunswick, Canada; and Singapore.
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City Limits Distance
Impound Vehicles Can be Towed
Oct 24, 2003 |
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IDAHO
-- If tow truck operators who do business outside of Blackfoot want to
be on the police department's rotating list for calls when a car needs
to be towed, they'll have to find a place close to the city to store it.
The Blackfoot City
Council passed a resolution Tuesday night that says unless the person
being towed specifies otherwise, tow truck operators can't tow a vehicle
more than five miles.
City attorney Dan
Acevedo said the request for the resolution came from Blackfoot Police
Chief Dave Moore, who said the department gets too many complaints from
people who have been charged exorbitant prices when their vehicles are
towed at the request of the police department.
Acevedo said some cars
are towed to Fort Hall and other places outside the city limits, causing
unnecessary expense to the owner.
BPD Capt. Kurt Asmus
said the department doesn't play favorites among the tow truck
operators. He said county dispatch has a rotating list and puts anyone
who requests it on the list. When a tow is needed, dispatch goes down
the list and calls the operator whose name comes up next.
That operator takes
the vehicle back to his place of business, wherever that happens to be,
Asmus said.
Asmus said the number
of cars towed varies, depending on the time of year. It's higher during
the Eastern Idaho State Fair and in the winter when snow is being
removed from the downtown streets.
He said cars are not
arbitrarily turned over to a towing company. If it happens that the
driver is being charged with driving under the influence, he or she is
allowed to call a licensed driver to retrieve the vehicle so there is no
tow charge.
The driver is also
given the option of choosing a towing company.
Acevedo said the
resolution is needed because any tow truck operator could have their
name put on the rotating list. The resolution is effective immediately.
The council approved a
permit for The Hitchin' Post bar to cater the Ducks Unlimited banquet at
the Eastern Idaho State Fairgrounds Friday night. Councilwoman Cherie
Clawson noted that the police, fire and building departments had all
signed off on the application as the council had requested for catering
permits at the fairgrounds.
Also approved was a
permit for the operation of a second hand store, Jammer Bos, by James
Hundley on the second floor at Krehbiel Auctions.
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Tow Companies Express Concern Over Stringent Towing
Ordinance
Oct 24, 2003 |
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IOWA -- A little
parking lot on Historic Fourth Street is causing some big concerns for
Siouxland towing companies.
Owners and employees
of Siouxland towing companies met Tuesday night in South Sioux City to
discuss a letter they received about a possible ordinance regulating
towing companies that operate within the Sioux City's limits.
The letter was sent by
Sioux City Police Department Lt. Melvin Williams and informed towing
companies the city is in the process of drafting an ordinance to
regulate the way the companies do business. Attached to the letter was a
10-page draft of the ordinance and a request for owner's comments.
The majority of the
approximately 20 people sitting on metal folding chairs in the garage of
South Sioux Towing wondered why the city would now want to create such
an ordinance.
"I don't think
all of this is because of the towing on Fourth Street," said Kelly
Lyman, co-owner of Lyman's Towing, who holds the contract to tow cars
from the Call Terminal Building's private lot at 1106 Fourth St. "I
do think the majority of it is though."
The city's draft calls
for regulation of most aspects of the business, much like the way taxi
companies are city regulated, including screening new hires, company
licensing with the city, imposing a maximum of 12 hours worked per day,
maintenance and inspection of vehicles and approving color schemes of
the trucks to ensure the "company identity can be readily
ascertained by the police department."
"I think they
will back down on most of this stuff," Sam Schram, owner C & H
Heavy Duty Specialists said. "They are coming at us with a lot of
stuff. What I see happening is they will focus on the regulation of
private property tows."
Schram, and others,
said many of the areas affected by the proposed ordinance were already
covered by either federal or state law. They said Department of
Transportation inspections should be sufficient. They also questioned
how the city intends to pay to enforce a new ordinance when governments
are already strapped for cash.
"There needs to
be a procedure that everybody has to follow, but when it comes to
regulating drivers, driving records and the color of your trucks, that
is stuff the federal DOT doesn't get involved in. The city shouldn't try
to regulate it and enforce it besides that," Schram said.
Schram did say he is
for some city guidelines about predatory towing practices and making
private parking lots readily identifiable with proper signage.
Predatory towing
practices "means any towing service that removes unauthorized
vehicles from private property within 24 hours of the vehicle being left
on the property and such property is not readily identifiable as private
parking, and or pays a fee to the property owner for the right to tow
vehicles and or charges an excessive fee for services rendered,"
according to the draft.
The Sioux City Council
has heard complaints in the past about predatory towing practices on
Fourth Street and at least one owner questioned Lyman's practices while
working in the entertainment district.
"Do your drivers
get out of bed and go to Fourth Street and circle the parking lot like a
shark with his fin up?" asked George Quint, owner of South Sioux
Towing and host of the meeting.
"I would say nine
out of 10 cars we tow from Fourth Street are called in by a resident of
the apartments or a maintenance man," Kelly Lyman responded.
Lyman said she is
concerned that city is trying to make the lack of parking space on
Fourth Street a towing issue rather than the zoning issue it is. She has
also hired an attorney to fight the proposed ordinance that could go
into effect sometime next year.
"The city created
this problem and want to fix it by regulating the towing
companies," Lyman said. "I didn't put a five-story apartment
building in the middle of a bar district."
Lyman said the owners
of the Call Terminal Building, Call Terminal L.P. (Limited Partnership),
which includes Community Housing Initiatives of Spencer, Iowa, and
partner ILPB, LLC, a limited liability company comprising local real
estate investors, believe the best way to regulate the parking in the
lot is to immediately tow any car that doesn't display one of two
parking passes.
Lyman said her towing
company has held many meetings with the city and downtown business
owners trying to solve the parking problems, but haven't found a
solution. Chuck Day of Meier Towing agreed towing of cars in the
historic district has irritated many people.
"The council will
pass something. It is up to us to tailor it so that it is something we
are all comfortable with," Day said.
Public concerns
regarding the proposed ordinance can be voiced during 1:30 p.m. meeting
Nov. 12 in the City Council Chambers at City Hall. (Jesse Claeys - Sioux
City Journal)
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Tow Truck Driver Arrested on Drug Charges After Chase
Oct 20, 2003 |
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CALIFORNIA
-- An alleged drug-dealing tow-truck driver was arrested after trying to
flee from officers in Capitola, flinging drugs out the truck window as
she barreled down a busy street.
Shellie A. Chaney, 36,
had sold methamphetamine to undercover officers during a six-week
investigation into such sales, said Richard Westphal, commander of the
county Narcotic Enforcement Team.
When officers
approached Chaney about 6 p.m. Thursday in a McDonald’s parking lot,
she "basically gave it the gas," he said, shooting onto 41st
Avenue, down Clares Street and onto 43rd Avenue, where she was caught,
he said.
Trailed by several
marked and unmarked police cars, Chaney allegedly flung about 2 ounces
of methamphetamine, worth about $2,200, out the driver’s window of the
Coast Counties Towing truck. The drugs were recovered.
Chaney, also known as
Shellie Moore and Shellie Slatter, is "at least a mid-level
dealer," Westphal said.
She was arrested on
suspicion of drug possession and sales, child endangerment and probation
violation. The child-endangerment charge stems from an alleged drug sale
to an undercover officer during which she was accompanied by her
14-year-old daughter.
Chaney, with Santa
Cruz and Aptos addresses, has been arrested 17 times since 1987, court
records show. She was convicted of possessing drugs for sale and being
under the influence of drugs in May and sentenced to 180 days in County
Jail, drug treatment and 5 years probation.
She faces a mandatory
prison term if convicted twice of possessing methamphetamine for sale.
Santa Cruz police Sgt.
Jack McPhillips said Coast Counties is prohibited under an agreement
with the city from hiring drivers who have been convicted of certain
crimes, including auto theft, and convictions within the past year of
being under the influence.
The company could not
be reached to comment. (Cathy Redfern - Santa-cruz.com)
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Tow Companies Could Get Bonuses for Quickly Clearing
Turnpike
Oct 20, 2003 |
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FLORIDA
-- State officials want to reward tow operators with bonuses for moving
wrecked vehicles off Florida’s Turnpike within 90 minutes in a plan
geared to help ease traffic tie-ups caused by major accidents.
The program, which
could start in late December or January, will give the bonus if vehicles
— mostly 18-wheel tractor-trailers — are moved within 90 minutes of
the towing company receiving permission from police, which comes after
hazardous materials are cleared and victims are transported to
hospitals.
If the wreck isn’t
cleared within those 90 minutes, the company has another 90 minutes to
finish, but doesn’t get a bonus. After that, the company pays the
state a penalty of $10 a minute.
The issue arose after
a six-month spate of wrecks on the turnpike in 2002.
“We had them one
after another, big, major pileups,” said Chris Warren, deputy director
and chief operating officer of Florida’s Turnpike Enterprise, the
state agency that runs the turnpike.
The problem is that,
currently, wrecking crews sometimes get to a crash scene with
insufficient muscle to get a big truck off the road, Warren said.
Another problem is that crews — which are paid by the owners of trucks
or cars involved — sometimes put salvaging cargo ahead of opening the
highway.
The new system does
not mean the highway will reopen within 90 minutes of any crash, but
within 90 minutes of police or other authorities finishing their work
first.
The state is selecting
tow companies and setting a date to begin the service. So far, five
firms from Miami to northern Orlando have the equipment, Warren said.
Once the 90-minute
system is in place, the Florida Highway Patrol will only call companies
that have the necessary equipment to guarantee compliance with the new
deadline.
Tow services will
respond to an accident with two heavy-duty wreckers, including one
capable of lifting an entire trailer or truck. A truck loaded with
signs, traffic cones and cleanup equipment also will be dispatched.
And, if there is
spilled cargo, the wrecker service will also dispatch a small end-loader
and a mechanical street sweeper.
The program could help
shorten delays which can be expensive for drivers and the state, Warren
said.
For example, a major
peak-period incident that blocks traffic in only one direction near
Pompano Beach in Broward County could cost $12,000 in lost tolls over a
period of hours and potentially $300,000 in costs to motorists,
especially commercial truckers who are on tight delivery schedules,
Warren said.
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Tow Truck Driver Accused of Running Over Victim
Oct 20, 2003 |
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NORTH
CAROLINA -- A tow truck driver is accused of running over a Raleigh man
several times with his truck after a dispute between the two men
escalated.
Officers said Shawn
Deandrey Graham, 28, and Hamilton Nathaniel Palmer, 21, pulled over to
the side of the road to argue in what the officers said was a case of
road rage.
According to the
warrant, Graham is accused of running over Palmer with a rollback tow
truck, which hauls vehicles by lifting them onto a flatbed deck behind
the cab. Graham is the president of a towing company.
James Palmer,
Hamilton's brother who was in the car at the time of the incident, said
the truck went forward, backward, then forward again, running over
Hamilton Parker each time it moved.
"He was just
tumbling up under the truck," said James Palmer. "All I could
hear was women screaming, `Oh my God.' I was almost hysterical."
Hamilton Palmer was in
WakeMed's surgical intensive care unit Monday morning, listed in serious
condition. His mother Katie Palmer said both of his legs, both shoulders
and shoulder blades are broken.
Graham was charged
with one felony count of assault with a deadly weapon with intent to
kill inflicting serious injury. (Thanks Karen)
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Council Overrides Defiant Mayors Veto of Towing
Resolution
Oct 17, 2003 |
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ALABAMA
-- In follow-up to a <<previous
story>>, the Scottsboro City Council voted unanimously to over
ride Mayor Ron Bailey’s veto of the resolution concerning the rules
and regulations of wrecker and towing services in the city of
Scottsboro.
The rules and
regulations will make the city clerk responsible for taking applications
of new towing companies and will give the council the last word on those
who are issued a permit to be placed on the rotation list. Bailey had
vetoed the resolution last week.
In a municipality of
more than 12,000 inhabitants, the mayor is not a member of the council.
He has, however, the ability to veto any permanent action taken by the
council. The council then has the authority to override the veto by a
two-thirds vote. While the override only took four of the five
councilmen’s votes, the council voted unanimously.
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Sorensen Pleads Guilty in Death of Tow Operator
Oct 17, 2003 |
|
WASHINGTON
-- Ryan Neil Sorensen has pleaded guilty to all charges in the murder of
his former father-in-law, popular Port Hadlock towing business operator
Frank M. "Skip" Smith Jr.
"It was a total
surprise," Jefferson County Prosecutor Juelie Dalzell said Tuesday
morning. "He's been saying from the beginning he's going to plead
guilty, but it never happened."
Sorensen, 31,
requested a change-of-plea hearing on Monday afternoon and entered the
plea yesterday morning, Oct. 14. Sorensen's voice sounded calm and
unemotional as he answered questions from Jefferson County Superior
Court Judge Thomas J. Majhan during the 30-minute proceeding.
Sorensen authorized
his attorney, public defender Richard Davies, to release this statement:
"Mr. Sorensen decided to take responsibility for what he did by
pleading guilty to all of the crimes charged against him. He deeply
regrets taking Mr. Smith's life and wants to apologize to the Smith
family and everyone who knew Mr. Smith for the grief that he has caused.
Mr. Sorensen knows that he now must pay the price."
Smith's widow,
Judy-Kay Smith, said she is "very relieved" that Sorensen pled
guilty.
The charges that
Sorensen has pled guilty to are: first-degree premeditated murder and,
in the alternative, felony murder, with two firearm enhancements;
kidnapping in the first degree with two firearm enhancements; and two
counts of assault in the second degree with two firearm enhancements.
The matter was set to
go to trial Oct. 27. Dalzell said the prosecution had a very solid case,
but as recently as last week, the prosecution and defense were arguing
on the admissibility of key evidence such as witness accounts by
deputies and jailers.
Judge Majhan has set
sentencing for Nov. 20. Dalzell said that she and Davies have a
difference of opinion as to how state sentencing guidelines should be
applied. She believes Sorensen could receive more than 74 years in state
prison, but Davies notes that the defense can ask for an exceptional
sentence below the standard range.
"The standard
range sentence, however it's computed, amounts to life in prison,"
Davies said.
Skip Smith, 62, was
shot 25 times on the afternoon of April 29, 2003, at his business, Smith
Services. Despite the brutality of the crime, it did not meet the
criteria for "aggravated murder" under state law, Dalzell
said. Accordingly, the case was not eligible for the death penalty.
It was Jefferson
County Health Department employee Linda Atkins who made the first 911
call that day. She had been on the phone with Smith on a routine matter
when Sorensen arrived after driving all the way from Spanish Fork, Utah.
Atkins told a 911 dispatcher that Smith asked her to call for law
enforcement.
According to
investigators, Sorensen also called his ex-wife, Shawna-Kay Smith of
Port Townsend, after showing up at the towing business. She immediately
called 911, but Smith had already been shot. Shawna-Kay Smith was
married to Sorensen from 1996 to 2002; they had two daughters.
The first deputy to
arrive at the scene was Hyram Godsey, who recently received a "Red
Cross Local Hero" award for his actions. According to Godsey's
report, Sorensen was talking on a cell phone while holding two 9 mm
semiautomatic pistols when the deputy arrived.
"It's OK. He's
down, he's down," Godsey recalled Sorensen saying to him when they
made eye contact. Godsey's report also indicates that Sorensen said,
"I shot him; he's dead."
Two of Smith's
employees, Randy Herb and Mark Sydnor, were forced to tie themselves up
with duct tape. "Do you want to live?" Sorensen allegedly said
to them. They were still taped together when Godsey arrived, but they
were not physically harmed.
Hundreds of people
attended Smith's funeral service, where countless stories of the kindly
and humorous towing ace were shared. One man recalled how the day after
Smith towed his broken-down car, Smith showed up unannounced at his
home, knowing that he had no other way to work. Others told of Smith
accepting fudge, cookies, and even a peanut butter and jelly sandwich
from customers who couldn't pay.
Smith's funeral
procession included a stream of fire, law enforcement and towing
business vehicles and stretched for more than a mile.
To this day, Smith's
trademark cowboy hat is depicted on the sign in front of the Rhody Drive
business with the familiar yellow tow trucks. (Barney Burke - Port
Townsend Leader)
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Tow Truck Struck in Bizarre Accident
Oct 17, 2003 |
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TEXAS
-- Around 3am Thursday, two Houston police squad cars were on Cullen
near Leeland in southeast Houston, where there was a wrecker on the
scene towing a possible stolen vehicle.
As the car was getting
hooked up, a speeding pickup truck came barreling past the two officers
and the tow truck.
Officers say the
driver of the pickup was driving erratically at high speeds and could
have been under the influence, so a pursuit ensued.
As one of the officers
got into his vehicle to chase that pickup down, the clipboard that was
sitting on his dash slid off into the steering wheel, where it locked
the officer's control of the car.
The officer smashed
into vehicle that was getting towed. The impact squashed the squad car
door closed on the sergeant who was standing next to his car. That
officer managed to pull his hand out of the slammed door only to have
the car being towed by the wrecker roll over his foot.
The injuries to the
sergeant are not said to be serious. Unfortunately, the driver that came
speeding through the scene got away. (James Irby - ABC13 Eyewitness
News)
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Towing Company Begins Cell Based Service
Oct 17, 2003 |
|
WISCONSIN
-- Schmidt's Auto Inc. has launched a new cellular-based towing service.
By dialing #TOW on their cell phones, Dane County drivers can access a
tow truck 24 hours a day, 7 days a week. The service connects callers
directly to a towing dispatcher.
Three dedicated yellow
#TOW trucks are now on the road in Dane County to meet demand. Dane
County averages 10,220 accidents per year, according to the state
Department of Transportation.
Schmidt's auto is a
family-owned and operated business with locations in Stoughton,
Middleton and Madison. (The Capitol Times)
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Diesel Prices
Continue to Serge Upwards
Oct 15, 2003 |
|
Tow
operators paid nearly four cents more per gallon of diesel for the week
ending Oct. 13 than they did in the previous week as the national retail
average rose from $1.445 to $1.483 a gallon.
Government concern
over the supply of heating oil and fears about global oil production
sparked the rise, government oil analysts said. Supplies of home heating
oil, which comes from the same stock as diesel, are at historical
averages, but analysts fear that regional shortages of heating oil could
wreak havoc on fuel markets if winter is as bad or worse as last year.
Still, the biggest
price swings occurred along the Gulf Coast and in the Midwest, where
towers saw swings as big as five cents. Analysts said reduced global oil
production, as promised by the Organization of Petroleum Exporting
Countries, low crude oil inventories and the prospects of a stronger
economy have also pressured prices higher.
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DOT Road Ranger Hits and Kills Tow Truck Driver
Oct 15, 2003 |
|
FLORIDA
-- A 38-year-old tow truck driver was killed early Sunday when an
Interstate 95 "Road Ranger" slammed into a disabled vehicle on
the shoulder of the highway in Lake Worth.
Dispatched by AAA,
Michael L. Grisham was preparing to tow Richard Summers' 1992 Ford from
the northbound shoulder of I-95 at Sixth Avenue South at about 4:35
a.m., according to a Florida Highway Patrol report.
Summers said the
Grisham was thrown into the rear windshield of the tow-truck cab,
splattering Summers with shattered glass and blood. Grisham, of Palm
Springs, was declared dead at the scene, the FHP said.
The Road Ranger
driver, 35-year-old James Smith Jr. of West Palm Beach, suffered serious
injuries when his truck flipped and skidded to a halt in the middle of
I-95. He was taken to Delray Medical Center.
"I felt nothing
but an incredible impact," said Summers, who was treated for minor
injuries at JFK Medical Center.
Summers, 40, of Port
St. Lucie, said he owes his life to Grisham. "I got out of my truck
and gave him my keys," Summers said. "And at that point, the
gentleman saved my life by instructing me to get into the cab of his tow
truck."
Road Rangers are
private drivers hired by the Florida Department of Transportation to
roam I-95 and rescue broken-down motorists at no charge.
Unable to interview
Smith, accident investigators don't know why his truck turned partially
onto the highway's shoulder, slamming into Summers' truck, FHP Lt. T.
Compton said.
Summers said he
believes had talked to Smith some time before the accident. Summers was
heading home when his pickup broke down. With no cellular phone, he said
he walked for several hours before finding a pay phone to call AAA.
After returning to his truck, a Road Ranger truck pulled up.
Summers said he told
the driver that AAA was on the way. Troopers later told him that the
Road Ranger was Smith, Summers said.
Summers used the Road
Ranger's cellular phone to call AAA again. The driver left about 30
minutes later before an AAA-dispatched tow truck from D&D Automotive
and Towing of Lantana finally arrived.
The accident occurred
as Grisham was connecting a set of chains to Summers' truck. All three
northbound lanes of I-95 between Sixth Avenue South and Lantana Road
were shut down from 5:10 to 7:52 a.m., Compton said.
The Road Ranger
drivers work for Lyons Towing of Lake Park, which has a state contract.
Reached at home, Lyons Towing President Allan Gold declined comment
Sunday. (William M. Hartnett - Palm Beach Post)
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Insurance Costs Sting Towing Businesses
Oct 15, 2003 |
|
CANADA
-- It wasn't the economic fallout from the rising Canadian dollar, the
mad cow crisis or SARS that forced Calgary Towmasters Ltd. to lay off a
driver and take one of its seven trucks off the road this year.
Insurance premiums
that have leaped to $63,000 from $11,000 annually are the culprit behind
the local towing company's dire finances.
"(Insurance) has
taken everything we make a year," says Deborah Sawatzky, co-owner
of Calgary Towmasters Ltd. "My husband and I started our company
six years ago and we've worked 24-7 over six years and the insurance
company has pretty much wiped us out."
A CIBC small business
poll, released Tuesday, suggests the Towmasters story is far from
unique.
High insurance
premiums are the biggest challenge facing small businesses on the
Prairies, even above domestic crisises such as mad cow and international
events like the war in Iraq, according to the poll.
The study found
insurance costs hurt about 54 per cent of entrepreneurs on the Prairies,
while 42 per cent reported an impact from domestic challenges like SARS.
About 27 per cent of
small business owners said international issues hurt their revenues.
Only 12 per cent
reported negative impacts from the rising Canadian dollar.
"Small businesses
have seen massive increases in insurance costs probably for the last two
years," said Dan Kelly of the Canadian Federation of Independent
Business (CFIB).
"We have had
examples of members with 100 per cent increases in their premiums.
Sometimes the increases are greater than the overall revenue of their
business line."
About half of Alberta
entrepreneurs reported increases of more than 20 per cent for property
and small business insurance, according to a CFIB study conducted this
year.
The CFIB also found
rising insurance costs slightly or significantly harmed 80 per cent of
Alberta small businesses.
Nationally, the CIBC
poll, which surveyed 1,351 small business owners around the country this
September, found rising insurance costs hurt about 55 per cent of
Canadian entrepreneurs.
The poll found about
nine per cent more businesses on the Prairies felt the impact of
domestic issues compared with the national results. Rob Paterson, senior
vice-president of small business banking for CIBC, said the poll
suggests the mad cow crisis had a big impact on small companies in
Alberta, Saskatchewan and Manitoba, where the bulk of the country's
cattle industry is located.
But, both nationally
and regionally, insurance still topped the concerns of small businesses
in the poll.
Insurance Bureau of
Canada representatives acknowledge insurance premiums have increased in
recent years.
Jim Rivait,
vice-president for the association's Prairie region office, said
insurance premiums began to rise following Sept. 11, 2001. The insurance
losses associated with the terrorist attacks were compounded by weak
financial markets, which reduced the investment income many insurance
companies rely on to balance out their claims costs.
Rivait said rates have
recently stabilized and he doesn't expect to see any significant
increases for commercial insurance in the near future.
But the federal
financial services watchdog isn't so sure.
"Although the
first half of 2003 has shown a noticeable improvement . . . this should
be viewed with caution, as it is too soon to conclude that a trend to
improved financial conditions in the industry has been firmly
established," said a report by the office of the superintendent of
financial institutions, released Tuesday.
At Calgary Towmasters,
where the future of the business hangs on next year's premiums, any
improvement in insurance rates would help the towing company on its road
to recovery.
"We won't know
what will happen (to our business) until February when our insurance is
renewed," said Sawatzky. (Michelle Lang - Calgary Herald)
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Cat C-15 Engine Honored by J.D. Power and Associates
Oct 11, 2003 |
|
J.D.
Power and Associates has awarded Caterpillar's C-15 diesel engine its
highest levels of customer satisfaction, marking the fourth consecutive
year a Cat on-highway engine won the honor.
The C-15 engine won the award in the
vocational category, which includes construction, refuse hauling, and
utility trucks.
"Caterpillar is a perennial
strong performer that continues to lead the rest of the industry by a
large margin," the marketing firm said.
The study was based on interviews with
nearly 2,700 customers who own two-year old Class 8 trucks, and measures
customer satisfaction in three areas of engine performance: engine
quality and warranty; engine performance; and engine noise and
vibration. (Thanks Kevin)
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Tow Operator Acquires and Consolidates Multiple
Companies
Oct 11, 2003 |
|
OHIO
-- Four years after announcing a bold plan to consolidate the local
towing industry, Kurt Blum is back where he started.
His first roll-up
attempt, Tow Pros Towing & Recovery LLC, ended after Blum couldn't
get along with his merger partners. Now, he has a new company that's
close to pulling off its third acquisition.
"You've got to
learn to bounce back, be tough," said Blum, owner of A-1 Classic
Towing & Recovery Service in Lockland.
"The vision is no
less valid today than it was then," added Tom Hagerty, a company
consultant. "The goal is to grow through acquisitions and turn a
muddy-boot industry into one that's more professionally run."
That was precisely the
vision in the summer of 1999, when Blum merged his 22-year-old towing
company with three Northern Kentucky competitors. Their limited
liability company invested $70,000 in a computer-aided dispatching
system, with the goal of landing corporate clients that use extensive
towing services. The companies had combined sales of $1.6 million at the
time of the 1999 merger. The goal was to land $400,000 in new contracts
by the end of that year.
But Tow Pros quickly
got bogged down by bickering among its partners, each of whom controlled
25 percent of the company. Blum said the partners fought about
everything, from the color of the company's trucks to its ability to
service new contracts. He saw them as resistant to change.
"We can't tow
blue things on alternating Tuesdays," is how he sums up their
approach to the new venture.
Ten months after
forming Tow Pros, its three Northern Kentucky partners voted to fire
Hagerty, who was then the company's president, and Blum, then its vice
president of sales. Four months later, the owners parted ways, splitting
up the company's bank debt and assets. Blum's former partners declined
to elaborate on the fallout.
"I wish it had
worked. I wish him well," said Ken Kallmeyer, who went back to
operating his old towing company in Crescent Springs.
One expert said
partnerships often falter because of divergent viewpoints.
"You've got to
have shared vision," said Frederick "Fritz" Russ, dean of
the Carl H. Lindner College of Business Administration at the University
of Cincinnati. "You've got to have a clear understanding of how
everybody will get rewarded. If you don't have those two, it's really
hard to develop a basis for going forward."
Consolidation efforts
in the towing industry have had mixed results at best. One of the
nation's biggest acquirers, Albany, N.Y.-based United Road Services
Inc., is struggling to re-invent itself after buying 50 towing companies
nationwide in the late 1990s.
Blum said United Road
shows a national roll-up in the towing industry is unlikely, but he
thinks it's still possible on a regional level. But Blum's consolidation
strategy is slightly different this time around. Instead of merging with
competitors, Blum is buying only customer lists and selected assets. He
doesn't want to lose control of the venture as he did with Tow Pros.
"It is working
this time, because it is my vision and I'm working the plan," he
said.
The corporate divorce
left Blum with eight trucks and no customers in September 2000. But he
still owned the Wayne Avenue garage where he'd started his towing
business with a single truck in 1977. During his first week in business
following the breakup, his first seven customers paid cash, enabling him
to put fuel in his trucks. By the end of his first year, Blum had
reached $263,000 in sales and was pursuing acquisitions again.
During the next two
years, Blum grew revenue by more than 85 percent. For the fiscal year
ended Sept. 30, A-1 Classic posted sales of $871,000. He's projecting
sales will reach $2.75 million within five years.
The new approach has
won at least one key convert. Fifth Third Bank, which rejected Tow Pros
in 1999, recently extended a $50,000 credit line to A-1 Classic and
refinanced the mortgage on Blum's Lockland garage, giving him an
additional $40,000 in available cash.
"The thing that
impressed me about the plan was that he wasn't operating it like a
mom-and-pop," said Peter Weickgenannt, a vice president in the
business development group at Fifth Third. "The guys in the old
group, they were all anti-computer and wanted to run it out of a
shoebox."
Blum's path hasn't
been obstacle-free this time around. One of his customers, Goodwill
Industries, said this week it will stop referring calls to Blum's
company, citing service issues. And a West Chester man, whose towing
company Blum acquired in 2002, sued Blum in August, alleging he failed
to make payments on a $65,000 promissory note. Blum said the dispute was
settled a few weeks ago. (Dan Monk - Cincinnati Business Courier)
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Diesel Prices Begin to Rise Again
Oct 9, 2003 |
|
The
average price at the pump for a gallon of diesel fuel rose 1.6 cents
this week to $1.445, erasing a 1.5-cent drop from a week earlier,
according to the Dept. of Energy.
According to the
department's Energy Information Administration, the average price rose
in eight of the nine regions. West Coast towers saw the price slip 0.7
cents to $1.551.
Drivers in New England
saw a slight increase to $1.558, which is just a half a penny increase
over the past two weeks. The price in the Midwest region jumped 2.4
cents.
Fuel prices tend to
drop at the end of the summer driving season because consumer demand
falls off. However, analysts say they tend to increase in the fall as
demand for home heating fuels rise.
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Mayor Defies Council and Vetoes Towing Resolution
Oct 9, 2003 |
|
ALABAMA
-- Scottsboro Mayor Ron Bailey took a stand against a recently approved
wrecker and towing resolution by vetoing it.
The resolution
approved by the Scottsboro City Council last month calls for
applications to be placed on the wrecker rotation list to be turned in
to the Scottsboro City Clerk. Once the City Council is satisfied that
the wrecker business is qualified, they will issue an authorization
permit.
Until the adoption of
the resolution, Police Chief Keith Smith made decisions of placement on
the rotation list.
Bailey vetoed the
resolution to adopt the new rules and regulations for five specific
reasons.
“Policies, rules and
procedures must be administered without the attachment of names, faces
and personalities,” wrote Bailey in his veto. “For over 33 years,
Scottsboro Police Chiefs Barney Hardin, Ed Cotton and Keith Smith have
administered the fair and proper application of a wrecker and towing
service without controversy. Only until a local wrecker service
attempted to gain an unfair advantage over others listed on the rotation
list did this issue arise. Because of the close and immediate nature of
cleanup and removal at the scene of a traffic accident, the Scottsboro
Police Department must be able to make decisions on policy and
enforcement without the assistance of the Scottsboro City Clerk on
weekends and outside business hours. The police department works 24
hours a day seven days a week. The City Clerk office operates a fraction
of that time.”
Bailey continued by
saying, “Reasons for the change in policy seem to be born more in
local politics than sound business management. This action directed at
the Scottsboro Police Chief by Councilman Hollice Kendrick and supported
unanimously by the Scottsboro City Council seems a continuation of the
30 days of suspension without pay passed by the city council during the
summer. Politics also seems to play a part in this decision by the
Scottsboro City Council as another opportunity to transfer authority and
responsibility from the Executive branch of local government to the
Legislative branch. It appears this City Council wants to micromanage as
many day-to-day decisions within our departments that are clearly the
responsibility of the Executive and Administrative branches.”
Councilman Hollice
Kendrick responded to the veto by saying, “In response to the Mayor’s
remarks about Chief Smith’s 30-day suspension without pay, Mr. Smith
came to a public meeting in the presence of his wife, minister and the
press, apologized and admitted he was wrong in what he said and did. I
see no reason why Mayor Bailey cannot accept the fact that Chief Smith
was wrong instead of putting up smoke screens on Chief Smith’s behalf,
trying to protect him.”
“In response to the
wrecker rotation,” Councilman Kendrick said, “Mayor Bailey has never
asked me why we adopted the City of Scottsboro Rules and Regulations
concerning Wrecker Rotations. I feel the public has a right to know.”
“Chief Smith is a
personal friend of one owner of a towing service. And, by his own
admission, doesn’t like the owner of another tow service,” Kendrick
said. “There is nothing wrong with that. I, as a city councilman,
believe it would be very difficult in that situation to make unbiased
decisions concerning the wrecker rotations. I believe that five people
(the council) can make better judgement calls that one person. It is a
good possibility that we may avoid additional lawsuits against the city.”
“Chief Smith stated
that the wrecker rotation is the biggest headache that he had at the
police department. It is my intent to relieve him of that headache and
let him get back to the business of protecting the citizens of
Scottsboro,” Kendrick said. “I respectfully request that Mayor
Bailey cut through the smoke screens, be true to himself and to his
constituents and tell us the real reason he vetoed the resolution.”
The council is
expected to take action on the veto during Monday night’s regular
council meeting. The council has the authority to override the veto. (Mazie
Aldrich - The Daily Sentinel)
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Tow Truck Driver
Victim of Deadly Street-Racing Crash
Oct 6, 2003 |
|
WASHINGTON
-- Tow truck driver Marlin "Duke" French died Friday at
Harborview Medical Center of injuries he suffered last week after a
21-year-old Everett man, whom police say was street racing, slammed
head-on into French's pickup truck.
For Jessica French,
25, her father's death was the tragic result of what happens when
drivers turn to the streets for a thrill.
"It's a tragic,
tragic thing," she said. "I hope it will help open people's
eyes to know that speed is not the answer."
French, 60, of
Everett, a tow-truck driver since 1970 and a familiar face to local
medics, police and firefighters, was on his way home from work at about
1:30 a.m. Sept. 26 when a Honda Civic driven by Nolan Donnelly, 21,
skidded broadside across the median and hit the Ford Ranger he was
driving.
Donnelly, the driver
of the Honda, died Monday of his injuries.
French, the father of
seven, was airlifted to Harborview in Seattle with internal injuries.
Friday morning, Steve French, 37, called Harborview and learned that his
father had died.
"They told me his
heart burst," he said. "A blood clot traveled to his
lungs."
Snohomish County
sheriff's deputies at the accident scene said it appeared that Donnelly
was street racing before the crash, which occurred near the intersection
of Cathcart Way and Highway 9.
It is unclear how fast
Donnelly was driving when he hit French's pickup. Deputies are
investigating the crash, spokeswoman Jan Jorgensen said.
News of French's death
spread Friday through a network of local towing companies.
French got the
nickname "Duke" when he was stationed aboard the USS
Enterprise in the 1960s. "He was in charge of the flight deck. They
called him 'The Duke,'" Steve French said.
French served four
tours in Vietnam, his son said. When he came home, French joined a
league of Snohomish County tow-truck drivers.
"Duke was a
lifetime tower," said Alicia Whiteside, who owns Whiteside Towing
in Snohomish with her husband, Glen.
"He started out
with Ron May Towing in Everett in the early 1970s, and then he worked
for Dick's Towing. He came to work for us last year," said
Whiteside, who has known French since 1978.
"Duke was just
finishing his shift here and was heading home in his little Ford
Ranger."
Whiteside went on to
describe French as a man of integrity. "He would never say a bad
word about anybody."
Kevin and Carolyn
Donnelly, Nolan Donnelly's parents, said Friday they were horrified by
the news. Their son, Nolan, died Monday after his parents asked doctors
to remove him from life support.
"This just
doubles our sorrow," Carolyn Donnelly said. "I was shopping
for a dress to wear to my son's funeral when I heard Mr. French had
died."
"Nolan was not
the kind of young man who would intentionally try to harm anyone, and
would have been horrified if he could have foreseen the results of his
actions," Carolyn Donnelly said.
"Young people --
just get off the accelerator," Kevin Donnelly advised.
"I realize their
son was in the wrong," said Jessica French of the Donnellys'
response. "I hold no ill feelings toward them. He (Nolan) wasn't a
minor. He was an adult. He just made the wrong choice."
French's seven
children began gathering at the family home in Everett Friday afternoon.
Steve French flew in from Oakland, Calif., and Sharon French, Marlin
French's wife, waited for her youngest daughter, Chandra, 22, to arrive
from Wichita, Kan.
A memorial service for
Marlin French is planned for 11a.m. Wednesday at Everett's Church of
Jesus Christ of Latter-day Saints, 9509 19th Ave SE.
Whiteside said local
towers plan a 10 am. tow-truck procession to Wednesday's service from
their business at 17728 Highway 9 in Snohomish.
"We heard that
one of the medics at the scene told him his face was familiar,"
Whiteside said. "Duke has been at the scene of accidents all his
life."
Local tow-truck
drivers have established a memorial fund for the French family at Wells
Fargo Bank, Whiteside said. (Janice Podsada - The Daily Herald)
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Tow Truck Driver Wins Award for Helping Police
Officer
Oct 4, 2003 |
|
ILLINOIS
-- Tow-truck driver Rick Blumstein's smile still bears the scars of a
December night when he helped a Bloomington policeman who was fighting
with two men.
Blumstein lost two
teeth and suffered a concussion in the fray.
But his efforts didn't
go unnoticed: On Thursday, the Illinois FBI National Academy Associates
honored Blumstein with its Medal of Distinction, which followed an
earlier award for bravery from the Bloomington Police Department.
"The actions of
Mr. Blumstein were nothing short of courageous," Bloomington Police
Chief Roger Aiken wrote in a letter nominating Blumstein for the
national award.
"Many citizens
are reluctant to come forward and assist police officers for various
reasons. Some do not want to get involved. Others are afraid of the
criminal element. But Rick Blumstein did not hesitate and jumped
in," Aiken wrote.
Blumstein, 40, of
Bloomington, said he was just helping a friend when he came to the aid
of patrolman Scott Mathewson. He said he has come to know and respect
many police officers during his years working for Brown's Wrecker
Service in Bloomington.
"If I had it to
do over again, I'd do the same thing, not just for Scott Mathewson but
for every police officer," Blumstein said. "I hate to think
what could have happened if I weren't there. It could have turned
ugly."
What happened the
night of Dec. 21 was ugly enough, police said. According to Bloomington
police media relations specialist Duane Moss and Blumstein, the incident
went like this:
Mathewson was
patrolling at Todd and Gettysburg drives when he noticed a parked car
with an expired license plate. After checking the vehicle identification
number, he learned it had been reported stolen two months earlier.
Mathewson phoned for a tow truck. Blumstein arrived a few minutes later.
When Mathewson briefly
left Blumstein with the car for another call, two men approached
Blumstein and warned him not to tow their car.
After they unhooked
the vehicle, one man drove it behind nearby apartment buildings.
Mathewson had returned and followed the car. The second man and
Blumstein walked to the spot where Mathewson was handcuffing the driver.
That's when the second
man become unruly, shoved Mathewson and ran. His path took him within
arm's reach of Blumstein, who grabbed him. Mathewson helped Blumstein
and all three men fell to the ground.
Still handcuffed, the
first man began kicking Blumstein in the head. Mathewson ended the fight
when he pulled out his chemical spray and used it. That stopped the
fighting, and Mathewson was able to handcuff the second man as other
police officers arrived.
"I had a Nike
swoosh (logo) on my face for three days," said Blumstein, who was
treated at a hospital and released.
"We don't expect
everybody who finds themselves in this situation to act this way,"
Moss said. "That's what makes this unusual and worthy of these
awards."
Juan Miramontes, 21,
of Normal was sentenced to 364 days in jail for battery for kicking
Blumstein, according to the McLean County circuit clerk's office.
An obstruction charge
filed against the other man, James Johnson, 25, of Bloomington, was
dropped in a plea agreement on other, unrelated traffic and misdemeanor
counts, the clerk's office said. (Scott Richardson - pantagraph.com)
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Court Finds Seizure of Cars Illegal as Curb to
Prostitution, Drugs
Oct 4, 2003 |
|
FLORIDA
-- An appeals court has struck down an ordinance that allowed the city
of Hollywood to seize cars used by people accused in misdemeanor
prostitution offenses.
The decision handed
down Wednesday by the Fourth District Court of Appeal calls into
question similar ordinances in West Palm Beach, Dania Beach, Hallandale
Beach and Miami.
Hollywood and other
cities passed the ordinances to combat prostitution, mainly along
Federal Highway. When motorists are arrested for soliciting prostitutes,
their cars are seized and fees charged for the return of the vehicles.
In its decision, the
court pointed out that state statues, which supercede city ordinances,
limit forfeitures to felonies. "Improperly used forfeiture could
become more like a roulette wheel employed to raise revenue," the
ruling said.
At $500 per seizure,
Hollywood has collected hundreds of thousands in fees since passing the
ordinance in 1999. Hallandale Beach and Dania Beach also charge accused
offenders $500. Miami charges $1,000.
Wednesday's ruling
"is a huge victory," said Miami attorney Ronald Guralnick, who
filed the lawsuit in February 2000.
Guralnick represents
Colon Bernard Mulligan, 51, who was arrested in November 1999 by
Hollywood police on misdemeanor charges of soliciting a prostitute.
Mulligan, a retired
house painter who lives in Davie, said he was driving home when a friend
riding with him asked him to pull over so he could talk to a woman.
Mulligan said he didn't realize his friend didn't know the woman until
he heard police hollering at them through the car window.
Before long, his car
was towed, and he was sitting in a jail cell. It took him weeks to come
up with the $500 fee and additional charges from the towing company. He
pleaded no contest to the charges and received no marks on his record.
Upon learning of
Wednesday's ruling, he said he wasn't surprised. "Something right
came out of something [wrong]," Mulligan said.
Dan Abbott, Hollywood
city attorney, said he would meet with his staff today to determine how
they will proceed. "We have continued appellate options," he
said.
Guralnick said the
next step is to seek damages. He said he plans to get a list of names
and addresses of all people affected by Hollywood's ordinance.
"They are the
members of the class action and are entitled to damages," he said,
noting that impoundment and fees pose a hardship on individuals.
Nova Southeastern
University law professor Mark Dobson said that while forfeiture laws are
common around the country for a number of crimes, impounding cars for
misdemeanors could result in illegal seizures and is "taking it too
far."
Such a law is
effective only if police publicize it to the people who would be
affected, he said.
"Forfeiture's ...
design is both as a deterrence and it has the incidental benefit to the
city of making a little money," Dobson said.
Lt. Mark Anderson, an
acting West Palm Beach police spokesman, didn't know how many cars were
impounded by the city each year. He said the City Attorney's Office
would determine whether police continue to apply the ordinance. (Kai T.
Hill & Vicky Agnew - Sun Sentinel)
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New Law to Implement Towing Rules
Oct 4, 2003 |
|
GEORGIA
-- New rules will soon be in place for companies that can tow cars from
a private road or parking lot.
Under the new state
law, there will soon be limits on how much a towing company can charge.
The law will enforce uniform standards and prices to prevent con
artists.
“I've had a lot of
customers, you know, call and ask me if a $300 or $400 tow charge is the
norm, and of course it's not,” said Rudy Massey of McCullough Towing.
”Generally, [it’s] about $100 to $150."
M. Maria Dorough of
the Georgia Department of Motor Vehicle Safety (DMVS) said, “It was
just open. You could do whatever in the industry.”
Impound wreckers must
now be licensed by the DMVS.
With the new rules,
motorists who are towed must pay the towing fee, but there is no storage
charge for the first 24 hours.
Property owners must
also post clear signs about where to retrieve the vehicle and how much
the motorist will have to pay.
Additionally, if the
motorist shows up with the keys before the tow truck leaves with the
vehicle, there is no charge except for a small operator’s fee.
There's one other rule
in the new law. Towing companies have to wait for a call from a property
owner before they tow. They cannot snoop out their own business. Those
that do will face a $2,500 fine from the state. (Denis O'Hayer - News 11
Atlanta)
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Diesel Prices Fall For The Fifth Week
Oct 1, 2003 |
|
Diesel
prices fell for the fifth consecutive week to a national average price
of nearly $1.43 per gallon, almost 2 cents lower than last week.
On Sept. 29, the U.S.
Department of Energy reported that the national price of diesel is
nearly a penny less than a year ago.
The highest prices are
in California, where tow operators pay nearly $1.60 per gallon to fuel
up, followed by the West Coast, where diesel is almost $1.56 per gallon.
The lowest prices are in the Gulf Coast, where diesel is $1.37 per
gallon.
Since last week, the
biggest price change by region is in the Rocky Mountains, where diesel
dropped 3 cents per gallon. The biggest regional change in price during
the last year is in New England, where diesel is nearly 9 cents higher
than it was a year ago.
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Price Complaints Prompt City to Establish Towing
Rules
Oct 1, 2003 |
|
NORTH
CAROLINA -- After complaints of alleged overcharging from owners of
impounded cars, Dunn Police Chief Tim Benware met with towing companies
on the Dunn rotation to establish guidelines and rules.
The new, and rather
vague policy states: “Fees charged for wrecker services must be
reasonable and in line with other wreckers on the rotation wrecker list.
Any complaints about unreasonable fees will be investigated by the
police chief or designee.”
Companies must also
submit a fee schedule to Chief Benware.
The policy also
requires tow trucks to arrive at the scene within 20 minutes of
receiving a call. After 30 minutes, the next company is contacted and
the first company is cancelled.
Under the new policy,
towing companies will removed from rotation for repeatedly refusing
calls.
Failure to comply with
any of the requirements results in a 30-day suspension from the rotation
for the first offense and a 90-day suspension for the second.
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County Hauling Junk That Tow Operators Don't Want
Oct 1, 2003 |
|
WASHINGTON
-- The next time you see an abandoned car on the side of the road,
consider what's going to happen to that car. The answer might surprise
you. Once upon a time, tow truck operators were more willing to hook up
junk cars and impound them.
If the car's last
registered owner failed to respond within a certain amount of time, the
tow companies could make money selling the parts and scrap metal. And if
they were lucky, their collection agency might track down the owners and
get them to cough up the impound fees.
But since 1997, after
scrap metal prices plunged from more than $50 a ton to as low as $5 a
ton, some tow owners started refusing to haul the junkiest cars. They
couldn't make money except on the 1-in-10 chance their collection agency
could find a car owner capable of paying.
Law enforcement
agencies were alarmed. How were they going to keep the shoulders of the
roads clear?
Snohomish County took
an unusual approach, converting a road maintenance flatbed into a tow
truck to pick up hulks that the private companies wouldn't take.
The low-profile
program is hailed by the Sheriff's Office as a successful way to free up
deputies for more pressing crimes, instead of having them spend time
handling abandoned vehicle calls.
The response from the
tow and scrap industry is mixed. Some tow drivers welcome the help,
while others wonder if that money being spent should instead be used to
subsidize private tow trucks to haul the junkiest cars.
Either way, unless the
price of scrap metal drastically increases, the problem of junk cars is
not likely to be crushed anytime soon. In 2001, 14,212 cars statewide
were reported crushed for scrap, according to state records in the
Department of Licensing. In 2002, that number increased to 19,765.
Scott Zachry, owner of
Sky Valley Towing, one of the county's largest tow companies, said a big
obstacle is the public's idea of what cars are worth.
"In this country,
you always could get something for a car," Zachry said. "Now,
you've got to pay for it. That's a hard mindset to change."
Statewide problem
Quantifying the scope
of the junk car problem is tricky. But everyone interviewed for this
story said the problem is big all over the state.
The state Department
of Licensing issued more than 105,000 abandoned vehicle reports each
year in 2001 and 2002, said Brad Benfield, an agency spokesman.
But that number
includes many functioning cars that were impounded for traffic
violations and whose owners paid the tow company before the cars ever
made it to public auction.
The junker numbers are
still high, though, said Rob Herrington of Topco Financial Services,
Inc., in Everett.
Topco is a collection
agency that works exclusively for tow companies. When a junk car's last
registered owner fails to claim the car within 15 days of being
notified, state law allows tow companies to sell the hulk at a public
auction. They also frequently hire a collection agency to try to get
that owner to pay the impound and storage fees, which can end up being
$1,000 or more depending how long it was impounded.
Herrington said Topco
probably represents 70 percent of all the tow companies in the state,
including very busy counties such as Snohomish and Pierce, he said.
"We process about
2,000 cars a month," statewide, Herrington said.
That's roughly 24,000
cars Topco tries to collect on every year. Throw in the cars other
collection agencies handle, and the statewide total for junkers could be
more than 34,000 cars annually.
But probably fewer
than 4,000 of those cars ever produce significant money for the tow
companies, based on Topco's recovery rates. Topco only collects on 8 to
10 percent of all the cars it processes, and Herrington said Topco
probably does better than other collection agencies that don't
specialize in towing.
Those figures show why
some tow truck owners started refusing calls from deputies to pick up
junkers. Recognizing the market pressures against the tow companies,
Snohomish County officials decided to try something different.
New approach
Three years ago, the
county's Solid Waste Management division started picking up junk cars as
part of its illegal dumping program.
During that time, the
program has hauled 460 vehicles, which, when combined with appliances
and other junk, amounted to 639 tons of metal, said Matt Zybas of Solid
Waste Management.
The program has also
cleaned up 498 tons of garbage at 838 illegal dumpsites.
But this new approach
comes with a price tag. The program's annual budget is roughly $200,000.
Whether that money is well spent depends on whom you talk to.
"That has been
one of the most successful things I've seen done," said Snohomish
County Deputy Al Baker, who handles tow truck issues for the Sheriff's
Office. "It's running well, because I gauge it on the amount of
complaints I get."
What was once an
everyday headache for Baker, who had to referee roadside squabbles
between deputies and tow drivers, is now much less frequent. And
paperwork has been streamlined.
Not everyone agrees
with the county's solution.
Ron Hansen owns
Hansen's Towing in Everett and Harry's Towing in Marysville and is one
of the county's larger tow operators.
"I don't
understand what the hell the county is doing in the damn disposer
business," Hansen said. The county should spend its budget paying
tow operators instead of county employees, he said.
Baker said his
deputies are instructed to only use the county truck if no private
haulers are willing to do it.
Hansen added that
handling junkers can be worthwhile if tow companies schedule them during
idle periods between better paying jobs.
Zachry, of Sky Valley
Towing, doesn't believe that, especially as insurance rates have spiked
for tow operators, increasing costs. "There's not enough money in
junkers right now," Zachry said.
Solutions?
Revisions in state
laws in recent years were designed to give police a new tool to crack
down on repeat offenders. The last registered owner of an abandoned
vehicle can be cited with a $250 fine, and that fine cannot even be paid
until the towing bills are paid.
The car owners'
driver's licenses also get a lien attached to them -- until they pay,
they cannot renew their license.
But Herrington and
Zachry each said many local police and prosecutors do not fully enforce
the law. Herrington said some prosecutors do not see the issue as a high
priority compared to the many other crimes they deal with. Zachry said
awareness and enforcement of the laws varies among different local
police forces.
"The laws have
teeth if you can get them to write the ticket," Zachry said, adding
that he had seen improvement.
Herrington
acknowledged that going after the worst repeat offenders has its limits.
"It's not pretty.
Sometimes it's like that in collections. But this is worse, because
you're dealing with people that just don't care," Herrington said.
(Scott Morris - heraldnet.com)
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