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ITOW > Towing News > Archives > 2003 > October 2003 Archive
Towing News Headlines
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Oct 31, 2003
Oct 28, 2003
Oct 24, 2003
Oct 20, 2003
Oct 17, 2003
Oct 15, 2003
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Oct 6, 2003
Oct 4, 2003
Oct 1, 2003


Towing Companies Seek to Improve Efficiency
Oct 31, 2003
 

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
 

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
 

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
 

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
 

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

 

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
 

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
 

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
 

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

 

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
 

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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