Cactus Towing seeks Scottsdale fee hikeBy Ryan Gabrielson, Tribune May 5, 2006 Cactus Towing is asking Scottsdale for permission to triple its vehicle storage fees for motorists arrested on suspicion of driving under the influence or without a valid license and registration. The Mesa-based towing firm — under investigation for more than a year by the Maricopa County Sheriff ’s Office over fraud allegations — contends the price increase is the same as approved recently in other cities. Cactus also operates in Chandler and Mesa. The Scottsdale Police Department, which oversees the towing contract, has not signed off on the fee change, which if approved would jump to $15 from $4.50 for each day a vehicle is stored. Todd DeMasseo, Cactus’ general manager, said Mesa and Chandler have already approved the higher fees. Police officials are undecided on whether to grant Cactus’ request, said Cliff Frey, an assistant city attorney. Frey said Scottsdale police officials have deliberated over the request for weeks. A final decision is expected today. The price increase is tied to a new state law requiring that the vehicles driven by motorists charged with certain crimes — like DUI and driving on a suspended license — be impounded for 30 days. The law, which took effect in November, allows tow companies to charge up to $15 a day. Cactus won Scottsdale’s largest towing contract last summer by offering to impound the cars that police need moved at a cost of one penny to the motorist. At the time, Cactus’ competitors alleged that the rate was misleading because the largest expense was simply shifted onto other mandatory services not included in the bid to Scottsdale. Cactus officials have repeatedly denied the charge and have called Sheriff Joe Arpaio’s investigation politically |
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motivated. Lee Watkins, Cactus’ owner, supported Arpaio’s opponent, W. Steven Martin, in the 2004 Republican primary. Arpaio has denied Watkins’ allegation, arguing that whitecollar crime cases take significant time to build. Sheriff’s deputies raided Cactus’ offices in March 2005. The price increase would not provide the firm a financial windfall, DeMasseo said, but is intended to be a deterrent to drunken driving and to cover the increased expense of holding more cars longer. “You have to hire more lot attendants, you have to (secure) more space. I don’t know if you’ve checked property values around here the last couple years,” he said. “There’s a lot more cost involved in processing a vehicle like that.” When approving the contract with Cactus in July, members of the Scottsdale City Council said they would keep a close eye on the firm to ensure motorists are not overcharged. Councilman Wayne Ecton said he is wary of granting Cactus a price increase. “They have to honor their contract unless there’s some overpowering information that I’m not aware of,” Ecton said. “A contract is a contract.” Watkins announced months ago that he sold Cactus to Dan Rush, owner of ACT Towing. However, Arizona Corporation Commission records show that Watkins still heads Cactus. On Thursday, Watkins said the firm remained up for sale. DeMasseo declined comment on that issue. Commentary by Mr. Loss: "Some lawyers are willing to accept payment plans or adjust their fees to accommodate a client's financial need. Others ask for the entire fee up front or in a couple large payments. There are no rules governing this area, and the lawyer is free to offer whatever payment structure he/she deems best. The important thing to remember is this: Good lawyers aren't cheap and cheap lawyers aren't good. A Gunfighter doesn't charge by the bullet." This information is courtesy of http://www.eastvalleytribune.com/ |
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