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(USGovernment-News.Com, August 21, 2012 ) San Francisco, CA -- Baltimore city officials gave the hefty sum of $1.8 million to the city’s most successful towing business on Wednesday. This move meant a complete annulment of a few similar companies that were avoiding the area’s cutthroat bidding process.
The city’s prominent Councilman Robert Curran stated that the agreements signed on Wednesday by the Board of Estimates signify that a small number of towing companies will be losing their market shares and will thus, be charging lower prices. Needless to say, this is a great advantage for the city because they will be subject to lower tax rates.
Mr. Curran further stated that the agreements will lead to a downgrade in the negative actions associated with the towing market in Baltimore.
This agreement covers all towing needed because of any parking discrepancies, car accidents or any other related incidents which call for the local police requesting tows.
Frankford Towing and two related companies also gained $200,000 in agreements. Similar amounts were handed over to Bermans towing and its other two partner companies. Other companies that received similar grants were Universal Towing and Mel’s Towing Center.
The city’s Solicitor George Nilson stated that the city will be interested in adding more towing firms over the upcoming six months. This change will help the city progress towards a system different than the one that has been in place place since 1975.
Previously, the city had granted over $4 million to different towing companies without having any regulation mechanisms in place to overlook that the money was being used efficiently. Moreover, the companies didn’t even charge the city a lower rate for services.
The Baltimore Sun scrutinized this situation in detail just last year, and then Mayor Stephanie Rawlings-Blake, the local commissioner and Councilman called for further investigation into the business of towing companies. Then different plans of action were laid down for these towing companies.
The Budget Director at Baltimore concluded that this procedure could lead to savings of almost $1 million in a year, if they gave towing agreements only to companies that were worthry
The most highly ranked and well known companies became the target of the blame for the Police Department, where some officers even confessed to having taken bribes from towing companies for their covered acts.
According to the regulations imposed the companies will now be charging $130 to $140 per tow.
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