EPC votes down Tartan Towing settlement

Council’s executive policy committee has rejected a settlement that would have provided less than half the amount the City of Winnipeg alleges it overpaid for towing service.

The proposed settlement calls for Tartan Towing to pay the municipal government $15,000 per month “to start,” and ultimately repay $446,250.40 within two years. The same report alleges the city paid $1,115,626 over six years for “invalid” tows.

Mayor Scott Gillingham said the proposal triggered plenty of feedback from taxpayers urging the city to pursue greater compensation for its claims.

“There’s $1.1 million allegedly, in this report… That’s a lot of money. I’ve heard from many people in the city (who) said, ‘Please don’t settle, pursue the $1.1 million.’ I don’t think Winnipeggers should have to foot the bill for a service they (allegedly) never received,” said Gillingham.

The city report offers minimal detail on the exact nature of the dispute. In a previous statement, a spokesperson said the city has not accused the towing company of deliberately overcharging.

“No claim that Tartan knowingly overcharged the city has been made… Tartan provides the city with ongoing towing services and the public service wishes to maintain a working relationship,” wrote spokesman Adam Campbell.

The report notes Tartan fired some drivers and warned others to carefully report each tow, while it also relies on some subcontractors to provide the service.

Tartan declined an interview request Monday.

If further negotiations can’t secure a larger settlement for the city, the mayor said he supports taking legal action.

Coun. John Orlikow, an EPC member, said he also heard calls from the public to reject the settlement.

“Will we ever get $1 million back is the question… The optics for the taxpayer about getting value back, that’s actually resonating quite loudly,” said Orlikow.

Before the vote, St. Boniface Coun. Matt Allard urged EPC to reject the settlement and pursue its legal options. “I would prefer to see a process where we take this to court and we get to the bottom of what’s happened here.”

All but one EPC member rejected the settlement.

“I believe the proactive settlement is the best advice of the public service and I’ve also been assured (about)… some of what has taken place to ensure that this does not happen again,” said Coun. Sherri Rollins.

The matter still requires a final council vote.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga