Try as parts of City Hall might, it's hard to ignore the pile-up of evidence that the Springfield Towing Alliance, which handles police-ordered tows in the city, has been consistently, and egregiously, out of compliance with its contract.
The latest to join the heap: a 28-page report, released last week by the city auditor, outlining numerous ways in which STA has violated the contract and, in some cases, the law: failing to submit complete paperwork to the city, being repeatedly late with payments, failing to submit criminal background checks on employees, overcharging car owners. It does not have the required number of tow trucks, and has failed to provide the police department with remote access to its tow data and GPS system, as promised. It's also sublet part of its Chandler Street tow yard—which it rents from the city—to another company, in violation of its lease.
According to the report, STA, which is supposed to pay the city a portion of what it makes off tows, appears to owe as much as $128,558 in unpaid fees and in "unauthorized credits" it subtracted from its payments to the city. STA also does not have the $2 million in insurance required by the contract (it has half that coverage) and has yet to submit required insurance certificates for its subcontractors.
In addition, the auditors could not validate the STA's performance bond. According to the report, when the auditors tried to hunt down Fondren International, Inc., the Nevada-based company whose name STA submitted as providing the bond, they found its phone number out of service and its website invalid, and discovered that its president, Carter Green, is in prison. (Green was convicted last year for his role in a scheme embezzling cemetery trust funds.)
The city could fine STA for its violations—a total of $1.4 million, according to the audit.
It could also cancel the contract, the audit noted.
That sounds good to Tim Rooke, chair of the City Council's audit committee, who held a meeting last week to review the report. "The fact that they have had this contract under two mayors for 17 months and they are still not compliant with some of the simplest requests indicate to me that they are not someone you want to have a working relationship with," said Rooke. "The city literally bent over backward to try to make this vendor successful. Through their own ignorance or indignation, they wouldn't cooperate."
STA's president, Bobby Jones, and his attorney, Mickey Harris, haven't returned calls from the Advocate. Jones told the Springfield Republican the report was "95 percent" untrue, and he's insisted the city, in fact, owes him money.
Rooke's two colleagues on the committee, Bill Foley and Kateri Walsh, were not at the meeting. (Walsh, it's worth noting, received $450 in campaign contributions from Jones last year. Rooke also received $100 from Jones. Here's hoping Rooke framed the check, since presumably that's the last one he'll ever get from Jones.) City Council President Bud Williams did show up—after he previously tried to kill the meeting, arguing that Rooke's committee had no authority in the matter.
Missing in action is Mayor Domenic Sarno, who has political connections to STA's president: Jones was a major supporter of former state Rep. Ray Jordan, whose daughter Denise is now Sarno's chief of staff. Jones was also a long-time client of political consultant and admitted tax evader Charlie Kingston, a Sarno friend and campaign supporter. (Sarno won't return calls from the Advocate.)
Rooke said he hasn't heard a word from the mayor on the matter. But if Sarno is looking for guidance, Rooke has some advice. "The only option is for him to terminate the contract," he said. "You can choose to ignore the facts, but that doesn't change the facts. And the facts clearly indicate this is not a responsible vendor, and we are losing money by keeping them."
mturner@valleyadvocate.com
