[Abaronos]

getting a .gov agency to admit they were wrong is damn near impossible

Actually they admit fault quite frequently. When they go silent they agree. You just complete administrative procedure on them (aka giving them due process) and send them a bill. A lot of people don't know the rules and just get upset.

Government IS the legal owner of the vehicle. I expect it had state tags on it. What makes you think you can dispute anything they want to do with it? Why do you suppose your car might be legally parked and still get towed?