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Case #3: Review of Charges from Champlin Towing Police Chief Jim Way reminded the Finance Committee that on April 22, 2003, Council awarded a contract for towing to North Star Towing. On May 1, 2003, the Police Department received a statement from Champlin Towing, who also bid for the contract, asking for payment of tows provided to the City of Ramsey since August, 2000. The amount of the payment requested is $2,991.52. When Champlin Towing started towing vehicles for the City, it was understood that there would be no charge for the towing of any City vehicle because the City was bringing in business to him with the other tows. Mr. Bouten had even stated in his bid letter that he did not charge the City for towing City vehicles. Chief Way stated that when he talked with Mr. Bouten about the charges, Mr. Bouten stated that since the City did not stay with him for four years, he is charging for the tows of City vehicles. Chief Way stated that the City did not have a written contract or a specific agreement with Champlin Towing. Chief Way also pointed out the Mr. Bouten had included in the billing, six of the vehicles that were returned to the registered owners, and staff has documentation showing that Champlin Towing was paid for the charges incurred with these tows. Chief Way suggested the Finance Committee recommend that Council deny payment of the statement fi'om Champlin Towing. City Attorney Goodrich was asked for his opinion. Mr. Goodrich suggested it appears that Mr. B outen will take this issue further. A judge will ask if the City received this service to which the answer would be yes, and the City will need to be strong on why we do not owe this money. Mr. Goodrich inquired if the City has the ability to figure out how many tows were given to Mr. Bouten over this time period. Chief Way replied that would be difficult to figure out, however, Champlin Towing should have record of it. Attorney Goodrich stated that we could subpoena that information. He felt that it is worth it to deny this payment. If Mr. Bouten sues the City, it would be conciliation court and the most it could cost is the amount of the statement plus the $5 filing fee, so we would not be out any extra money. Chairperson Elvig felt that if Mr. Bouten's intent was to bill the City for services, he would have done so immediately. Motion by Councilmember Elvig and seconded by Councilmember Strommen to recommend that Council adopt the resolution denying payment of statement dated 4/30/03 to Champlin Towing. Motion carried. Voting Yes: Councilmembers Elvig, Strommen and Zimmerman. Voting No: None. Finance Committee - May 13, 2003 Page 3 of 7