Council Retains Central Valley Towing Firm

The Los Angeles City Council voted Wednesday to retain Fox Motors Inc. as the city’s Official Police Garage in the central San Fernando Valley until at least mid-October, which a competing firm complained imperils its bid to obtain Fox’s city-issued towing license.

The council, in executive session, directed the city attorney’s office to postpone removal of Fox Motors in Van Nuys as an Official Police Garage. Earlier this summer, the city Police Commission recommended awarding the OPG license for the area to Mike’s Club Towing of Sun Valley upon the cancellation of Fox’s license last Thursday.

But last week, Superior Court Judge William Huss ordered the city to retain Fox Motors as an OPG at least until Aug. 20. Wednesday’s council action extended for 60 days beyond Aug. 20 the time Fox will remain an OPG.

The executive session’s decision was described by Assistant City Atty. Annette Keller, who said the additional time was needed to review a proposal to change the way the city selects OPG operators.

OPG operators have monopolies within geographical zones on all towing and storage of stolen and impounded vehicles for the city Police Department and Department of Transportation. They tow as many as 350 vehicles a week.

Mark Henninger, owner of Mike’s Club Towing, said the delay harms his ability to become the new OPG license-holder for the central Valley and assists William Fox in his efforts to win the franchise now held by his father, 76-year-old Henry Fox.

The Foxes have filed a lawsuit challenging the Police Commission staff recommendation on behalf of Henninger. They contend that it was arrived at unfairly and allege that an agreement Henry Fox entered into with the commission to drop his license as of last Thursday was illegal.

Henninger said the delay hurts his application because he has leased a two-acre lot for $25,000 a month for auto storage in anticipation of receiving the license.

“Financially, I won’t be able to hang on,” he said. “It’s a David and Goliath situation. I’m the little guy trying to take on the Foxes.”

In their lawsuit against the city, the Foxes said the OPG license is worth $1.5 million a year to their firm.

Additional delays could also occur if the council chooses to revise the OPG selection process. Revisions could negate the steps taken to choose a new OPG for the district, said Cmdr. Frank Piersol, head of the Police Commission staff.

But Keller said there is no guarantee the selection process will be revised at all. “I think the council just wants breathing room to consider changes,” she said.