Michigan City Discusses Postponing Towing Contract

May 10th, 2011 | By | Category: National News

Flint, Mich., City Council on Monday postponed voting on a measure that would extend a contract for Complete Towing through Dec. 15, 2015, according to a news report,

The city used to run its own towing operation, and some argue that its privatization has cost the city revenue. Councilman Sheldon Neeley moved to postpone the measure, saying he wanted to explore ways to generate more revenue through the towing of vehicles in the city, the report states.

Councilmen Joshua Freeman and Scott Kincaid argued that with a smaller police force, the number of cars being towed wouldn’t generate enough revenue to justify taking three police officers off the streets to run a city impound lot, according to the report.

Neeley argued that the city impound lot generated over $1 million in the year 2007-2008, but Freeman disputed that number, saying the city had never cleared more than $1 million in one year of profit over expenses, the report states. The two agreed that the city currently makes about $150,000 a year in the current deal with Complete Towing.

Neeley said the current contract with Complete Towing still had 18 months remaining, and a better deal should be negotiated to generate additional revenues.

Mayor Dayne Walling said revenues from the city impound lot had been declining before it was shut down, and that it was taking up needed police manpower and space.