LOS ANGELES : Towing Firms to Eventually Compete for City Contracts
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The City Council on Tuesday approved a major overhaul in its program for towing impounded vehicles, ending a controversial system that allowed towing operators to arrange exclusive, long-term deals with the city without competitive bidding.
The nation’s largest towing system came under scrutiny in 1991 when officials discovered that private towing firms were operating as virtual monopolies with lucrative agreements that were in apparent violation of the City Charter.
The 17 “official police garages,” which haul away cars that have been abandoned or wrecked, had never been audited and city officials did not know how much profit they were making. The reforms approved Tuesday would implement a competitive bidding process for the contracts beginning in four to seven years.
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