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Warren considers opening city-owned impound lot

By Raymond L. Smith 4 min read

WARREN -- Cars towed in the city may be sent to a city-owned impound lot if council and the administration agree to open one.

Discussions about opening a lot will begin in earnest at 4 p.m. today, during a council-as-a-whole meeting in council's caucus room in the city municipal building.

Supporters of opening a city-owned-and-operated impound lot expect Warren to generate thousands of dollars in impound fees. Proceeds from the lot will be used to help offset costs the city pays for the maintenance of police vehicles and possibly future police equipment.

A proposal done by Warren police Sgt. John Wilson and presented last September shows an increasing number of vehicles have been ordered towed by the police department in each of the last several years. There were 1,004 towed in 2016 and 1,234 vehicles towed in 2018, the report states.

Niles, according to Wilson's report, began operating its own impound lot and towing program in April 2016. In its first year, the city towed 273 vehicles, collecting $42,223 in impound fees and $32,817 in fees earned by auctioning vehicles not picked up, earning the city $75,042 in net revenues.

Niles police Chief Jay Holland on Tuesday said the city towed 414 vehicles in 2019, earning $101,898 in net revenues. Holland called the city's impound lot a success.

"Our largest expense was the setup costs of placing fencing, gates and a camera system," he said. "It does not cost that much. We already owned the property."

The fees generated from proceeds of the tows have allowed to city to purchase more than 10 new police vehicles, Holland said.

"We would not have been able to purchase them without fees collected," Holland said.

Two area companies have contracts to tow vehicles and take them to the Niles city lot.

To retrieve a vehicle, the owner must pay the two companies their costs, as well as paying the city $75 per vehicle in administration costs and $25 per day storage costs.

"Except for initial startup costs, our expenses have not changed significantly because these are vehicles we would have had towed anyway," Holland said. "The difference is we are getting the administration and the storage costs, instead of the tow companies sending them to their own impound lots and keeping those revenues."

Holland said the tow companies receive a share of the money earned by the city when unclaimed vehicles are sold at auction.

"We have been fair with them," he said.

Warren Safety Service Director Eddie Colbert mentioned two possible locations for placement of the impound lot, including city-owned properties behind the city's Operations Department and a second city-owned lot on Summit Street. However, Colbert emphasized the city is at a very early stage of discussion about the possibility for an impound lot.

Wilson's report states the cost analysis for the implementation of the impound lot can vary based on what is needed to start it. He provided costs for fencing, security cameras, shed / garage, a generator, an air compressor, a battery jump box, electrical lighting, and, if necessary, construction costs.

Councilman Larry Larson, D-1st Ward, likes the idea of the city operating its own impound lot.

"We are paying someone else to do it," Larson said. "If we can use profits to maintain and buy new police vehicles and equipment it'll help because we don't have the money in the city's budget to buy new equipment," Larson said.

Larson said part of the reason Warren is considering an impound lot is the fact that Mays Towing -- which takes cars towed by Warren -- has been full or near full on several occasions.

Tim Deutsch, owner of Mays Towing, 255 Chestnut Ave., said he clearly will lose business if the city chooses to open its own impound lot, but he will work with city officials..

"What they are going to do is to take all of the cars towed in connection with criminal activities, such as DUIs," Deutsch said. "It will mean a loss of business, so I'm not really happy about it."'

Deutsch said his impound lot has been full or close to full because of junk cars that no one claims.

"We have to keep the cars for a year to get the proper paperwork, so we can scrap them," Deutsch said.

Scrapping cars is not lucrative at this time because he can only get about $150 per car, he said.

rsmith@tribtoday.com

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