According to CNN Headline News, a sign had been posted three days before the incident depicted below saying that the parking space in question "would be turned into a handicap space." But it's not clear whether the sign said when this would happen, or if it was still there when Hila Ben Baruch parked her car. Apparently it didn't or wasn't, because the city has since apologized and admitted this was a case of "incompetence."
To be fair, the city workers seem to be very competent painters, at least, since they managed to turn this into a handicap space while her car was still parked in it.
City officials did not believe Ben Baruch until they saw the video, taken by a security camera across the street. They have since rescinded the fine and the towing charges.