WILKES-BARRE — On the automatic renewal of his exclusive towing contract, the city on Wednesday did not receive the $50,050 payment from towing contractor Leo A. Glodzik III, who disputed the due date.
The money is owed on the first day of the month, making Glodzik delinquent, said Drew McLaughlin, municipal affairs manager for the city.
“He was invoiced and informed it was May 1,” McLaughlin said.
Glodzik, owner of LAG Towing, will be notified in writing he has 10 days starting today to comply or face termination of the contract.
“We will send that notification,” McLaughlin said.
But Glodzik said he still has time to make the payment.
“It’s due on the seventh,” he said when reached by cellphone.
The dispute arose as Mayor Tom Leighton conducts an investigation into allegations of price gouging and complaints against LAG that could lead to terminating the contract awarded in 2009 and amended in 2010.
Nearly five months after council asked Leighton to begin the due-process for termination, he has yet to provide a time frame for his decision, saying last week he was not running up against the May 1 payment deadline that he expected Glodzik to make.
The amended contract went into effect at 6 a.m. May 1, 2010, for one year, with four, one-year automatic renewals. It specified a termination time and date of 5:59 a.m. May 1, 2015. But it did not specify a date for payment to the city.
It said: “Said payment shall be made annually to the City, with the initial payment made immediately upon execution of this Contract.”
The conditions of non-payment were clear, however.
The contract said: “Failure to meet the financial obligation of this annual payment shall be an automatic default (as further discussed herein) and shall be cause for immediate termination after ten (10) days written notice to the contractor to rectify non-payment.”