Several owners of Bethlehem towing businesses are finding it difficult to live with the terms of a contract they signed with the town to be included on the rotational list of towing operators that work with the police department.
Matters of contention include a fee operators now have to pay to the town for each vehicle towed and a cap placed on the cost of each tow for a police call. At least one is also upset about having to erect a fence around his lot in order to store vehicles.
Bethlehem police Sgt. Robert Helligrass said the departmenthad been using a towing rotation list since the 1980s in which when a tow is required after an accident or arrest, the department calls upon companies in a rotating order. No contract was in place with the operators, though.
“We thought it was a good idea because it was a liability issue not to have one,” he said. “We had to share the responsibility in case someone tried to sue the town.”
Helligrass said the department used area towing contracts for inspiration and Bethlehem’s agreement closely mirrors City of Albany’s. The contract went into effect Jan. 1 after first being signed by the six towing operators the town works with and reviewed by Town Attorney James Potter.
The contract stipulates the operators must pay the town a fee of $25 for each vehicle that is “redeemed, sold or junked.” The agreement also puts a cap of $175 on all tows and $75 an hour for winching a vehicle. The argument is since car owners might not have a choice when the police call for a tow, towers should not be able to price gouge.
“If they tow outside of us, operators can charge whatever the market could bear,” said Helligrass. “But we’re trying to keep people honest. To a lot of people, their car is their livelihood.”
Some operators argue the fee is unfair and possibly illegal.
Peter Geist, owner of Geist Brothers Towing in Glenmont, said a meeting was held by the police department for all of the tow operators to discuss the contract before it was signed. He said he felt uncomfortable with the fees and some of the contract’s stipulations, but said if he didn’t sign the contract he would be losing out on business.
“Most of us are already taxpayers within the town,” he said. “It’s like being taxed twice and I don’t see how it’s fair.”
Geist said he wished other operators who also seemed leery of the contract had also spoken up, but since most didn’t he figured he would sign the contract and wait until next year.
Helligrass said the department and town are not out to make money on the deal. Helligrass said the department expects the fees to bring in about $12,000 annually, which he feels is insignificant if you look at the department’s entire budget for the year. However tow calls by police are down, and Helligrass said the department is expected to make about half that.
“Not to sound mean, but I don’t really give their complaints much credence because we’re giving them exclusive rights to work with the town,” Helligrass said. “They’re making money off of this deal.”
The contract also stipulates that towing operators can charge vehicle owners a fee of $45 a day for storage of any cars taken in.
Olin Bleau, owner of Bleau’s Towing Service, said he is angered about the new fee, but also because of other requirements in the contract that set operating standards. He received a notice from the town’s Planning Department that said he could no longer store cars on his property, for example.
“I put up the fence and they still won’t let me store the cars there,” Bleau said.
The new contract calls for towing operators working with the town to fence in their lots where vehicles are stored, but Helligrass said because of the cost of the fence and zoning issues they are giving the businesses until the year is up to have the fences installed.
Helligrass said Bleau was issued a notice from the town because his former garage was zoned commercial and for the past few years he has working out of his home. He has also been storing the vehicles on a lot of land that is partially owned by National Grid, he said.
Bleau’s is still in business and still being allowed to work with the police department, but he can no longer store cars on his property. For now, he is storing them at T.A.C.S.
“I’m losing a lot of money by not being able to store the cars myself,” said Bleau. “I don’t know why I can’t just be left alone until I retire. I’m 82, it’s not like it’s going to be that much longer.”
Matt Ungerer, co-owner of T.A.C.S. in Glenmont, said he doesn’t have an issue with the current towing contact because auto specialists don’t do enough towing business to make it affect them. He did add that he planned to expand his towing business within the year and is working on purchasing property and getting it properly zoned.
Bleau said he is not willing to compromise on the contract and that he was on the verge of suing the town to attempt to get rid of it. He too said he originally signed on because he would be missing out on too much business if he didn’t.
Geist said he would like to see the contract renegotiated next year. He said he would like to see the fee changed, and if possible, raise the cap that was placed on towing charges.
“We can re-do it,” said Helligrass. “We just had to start somewhere. I said we could renegotiate after the first year. I could see the fee going up to $200. I don’t think that’s out of line. We just have to be fair for everyone involved.”