Mayor's inner circle yanks proposed settlement with company that charged for nonexistent tows

Winnipeg Mayor Scott Gillingham's inner circle has quasheda proposal to reach a settlement with a towing company that billed the city for $1.1 million worth of nonexistent work.

City council's executive policy committee voted 5-1 onMonday afternoon to reject a proposal to allow Tartan Towing to pay the city $446,000 over time, instead of going to court to obtain every dollar the city says it was billed improperly.

Gillingham said Monday he has heard from several Winnipeggers about the proposed settlement and prefers to see the city pursue legal action against Tartan instead.

"It's one of the matters that seems to have struck a nerve," the mayor told reporters.

In 2021, the city reviewed fiveyears worth ofinvoices from Tartan Towing, the companyit had contracted to conduct "courtesy tows" of vehicles during residential snow-clearing parking bans.

The review found $1.1 million in invoices were invalid. Officials with Winnipeg's public works department opted not to take Tartan to court, arguing the city needsto preserve its relationship with the company and a lawsuit could result in further charges.

The city insteadnegotiated a settlement with Tartan to pay back $446,000 over the next two years.

When a recommendation to adopt that settlement came forward to city council, Waverley West Coun. Janice Lukes denounced the plan. Several of her colleagues followed suit.

Lukes asked Winnipeg chief administrative officer Michael Jack why the city would want to maintain a relationship with Tartan.

Jack said in some cases, Tartan is the only company that bids on city services.

"Apart from how we handle any perceived wrongdoing, apart from how we handle any litigation, we have operations to run," Jack said, adding it would cause "operational chaos" to have no towing contractor in place during a residential parking ban.

North Kildonan Coun. Jeff Browaty asked Jack whether any information about this file was shared with the Winnipeg Police Service.

"There's nothing indicated in this report that has occurred," said Jack.

Gillingham said he, too, wants to know why the police were not consulted.

Tartanhas yet to comment on this story.

Coun. Sherri Rollins (Fort Rouge-East Fort Garry) was the sole proponent of the proposed settlement, whichcomes before council as a whole on March 23.