Huntington Park : Towing Contract Extended; Competitor Shut Out Again

A divided City Council has approved a five-year extension of H. P. Tow Service’s exclusive towing contract with Huntington Park, once again denying a competitor a chance to bid on the multimillion-dollar contract.

The current contract, which does not expire until 1995, was extended to 2000. It is worth an estimated $2.5 million over five years, according to Bravo Khosroabadi, who owns Maywood Club Towing with his brother, Khosro. Last week’s 3-2 vote marked the second time the council has denied a request by Maywood Club Towing to bid on the contract.

Khosroabadi said he was told his April, 1987, request was denied because his company was outside the city limits, in Maywood. The company has moved to Huntington Park and he said it has spent $150,000 on improvements in anticipation of bidding on the contract.

The council decided to postpone action on a contract extension in November, but extended it last week after a heated debate. H. P. Tow Service, which said it spent about $800,000 on improvements, recently moved from East Slauson Avenue in Huntington Park to Roseberry Avenue in unincorporated county territory, one block outside the city limits. H. P. officials declined to comment.

The city is not legally bound to solicit bids on service contracts, according to City Atty. Steven N. Skolnik.

Councilman Luis M. Hernandez said contract extensions are not in the best interest of the city because they limit the control city officials have over services such as towing and waste disposal.

But Councilman Thomas E. Jackson said the extension is justified. “H. P. Towing has had this contract for 25 years and done a great job. We say ‘thank you’ to contracts by renewing their applications.” Councilmen Raul R. Perez and William P. Cunningham also voted for the extension.