A Phoenix towing company filed a complaint with the court Friday claiming that the city is collecting illegal fees from drivers through its current towing contract.
DV Towing is requesting a Maricopa County Superior Court judge to halt the city's pending re-bid on police towing contracts.
The company estimates that the city has collected $14 million in fees from 2008 to 2011 through its contracted towing company, Illinois-based United Road Services Southwest, despite a law limiting fees the city can collect.
The city of Phoenix uses towing companies to remove illegally parked cars and cars from crash scenes.
According to the complaint filed by DV Towing, the city began a contract in 2006 to provide public towing services as needed. The contract did not allow for the city to make money from the public or the towing company.
The DV Towing employees believe there is an illegal provision in a 2008 contract amendment allowing the towing company to charge the public.
The city, however, said it only collects enough fees to manage the towing issues for the Phoenix Police Department.
The city has four police towing contracts, and in January it began re-soliciting the contracts. DV Towing submitted its proposal in March. The city received a total of seven proposals from towing companies.
At the end of April, the city announced that it was changing its process to re-solicit towing companies.
DV Towing submitted a protest to court requesting the solicitation process be changed back to the initial plan, however, the city denied this protest.
DV Towing appealed again in June, and the city again denied the appeal.
The company's complaint said that if the city's contract with United Road Services Southwest is extended through 2013, the city could gain an additional $4 million.
Copyright 2012 CBS 5 (Meredith Corporation). All rights reserved.
Tuesday, May 21 2013 9:43 PM EDT2013-05-22 01:43:10 GMT
Saturday night's Powerball drawing
Two $1 million Powerball second-prize winning tickets were sold in Arizona from Saturday night's record-breaking jackpot. The winning tickets, which matched five out of five numbers drawn, not includingMore >
A Phoenix woman has come forward to collect her $1 million Powerball prize and says she's planning to go on a family vacation and invest the rest of her winnings.More >
Tuesday, May 21 2013 11:07 PM EDT2013-05-22 03:07:04 GMT
Kirk Nurmi (Source: CBS 5 News)
Jodi Arias' attorney Kirk Nurmi has asked to withdraw from the case on two occasions. The Maricopa County Board of Supervisor's meeting on Wednesday is expected to include a vote to approve $200,000 beMore >
The Maricopa County Board of Supervisor's meeting on Wednesday is expected to include a vote to approve $200,000 be moved to help pay for defense attorney Kirk Nurmi's salary.More >
Tuesday, May 21 2013 5:20 PM EDT2013-05-21 21:20:54 GMT
Amy's Baking Company
Amy's Baking Company said legal and online threats have forced it to cancel a press conference Tuesday, but that it's grand reopening will take place as planned. Owners of the Scottsdale bakery, Amy andMore >
Owners of the Scottsdale bakery decided to pull the plug on a 1 p.m. news briefing Tuesday after getting a letter from a litigation law firm representing a company that produces the TV show Kitchen Nightmares. More >
An Oregon girl abducted as a baby and missing for 18 years finally emerged in Dallas this week when her mother turned herself in to authorities, according to the Polk County Sheriff's Department. More >
An Oregon girl abducted as a baby and missing for 18 years finally emerged in Dallas this week when her mother turned herself in to authorities, according to the Polk County Sheriff's Department.More >