Council orders independent audit of city towing contract after testimony about delayed payments

The Honolulu City Council voted to commission an independent audit of the city’s law-enforcement towing and abandoned-vehicles contract following testimony and member remarks that the program has experienced delayed payments, disputed invoices and inconsistent billing practices.

Council member Tupelo urged a fresh, independent review, saying the city’s payment backlog to the current towing vendor had raised public-confidence concerns. “The city fell more than $3,000,000 behind on payments to the current towing vendor,” Tupelo said on the floor, pressing for accountability and broader stakeholder engagement before any new procurement.

Kimberly Hashiro, director of the Department of Customer Services, told the council the department is prepared to cooperate and provide information to support the audit. Hashiro said staff has been responsive to council inquiries and that the department will work with auditors.

Council member Weier said she supported audits in general but registered reservations about the tone of the discussion and did not want it to read as an assertion of mismanagement by Customer Services staff. The council noted Weier’s reservations on the record.

Resolution 26-58 passed the council with reservations recorded, and members asked for the audit to clarify payment timelines, billing disputes, contract oversight and opportunities for improved stakeholder engagement.

Next steps: The council directed the auditor to review contract administration, payment histories, dispute resolution practices and whether procurement and oversight processes need change. The audit will report back to council committees as required.