WARREN — During a recent city council police and fire committee meeting, city officials reviewed the operations and financial performance of the municipal impound lot, which has generated more than $564,000 in revenue since its inception in October 2021.
The discussion was led by committee chairman Michael J. O’Brien, D at-Large.
Police Chief Eric Merkel and other city representatives spoke about the lot’s role in managing towed vehicles and its impact on city finances. The impound lot, established to handle vehicles towed by the police department, has processed 321 vehicles over the past three years, with an additional 20,126 vehicles towed to a private lot operated by May’s Towing.
Merkel provided a detailed breakdown of revenue, which includes $207,000 from vehicle sales and $357,000 from administrative and storage fees. The total revenue of $564,000 has been directed to the city’s general fund, with initial discussions suggesting the funds could be used for vehicle replacements, particularly for the police department.
Council members raised questions about the process of towing and impounding vehicles, as well as the fees associated with reclaiming vehicles. Merkel explained that vehicles involved in accidents or deemed nonoperational are typically towed to May’s Towing, while those impounded by the police are often linked to criminal activity, such as expired tags or unlicensed drivers.
The city charges an administrative fee and $30 per day for storage, which is lower than the $35 daily fee charged by private lots.
Councilwoman Helen Rucker, D at-Large, expressed concerns about due process for people disputing towing fees, particularly in cases where vehicles were stolen or involved in noncriminal incidents.
She cited examples of residents facing significant financial burdens to reclaim their vehicles and called for an impartial review process outside the police department.
“People deserve to have some sounding board that’s impartial,” Rucker said, suggesting that the city establish a mechanism for residents to address disputes.
Warren Safety Service Director Eddie Colbert said the city has since amended its policies to avoid charging administrative fees in such cases. He also noted that the impound lot’s revenue has exceeded initial projections, with the city originally estimating $120,000 annually but instead averaged $188,000 per year over the past three years.
Councilwoman Tiffany Stanford, D-5th Ward, proposed using a portion of the impound lot revenue to assist low-income residents struggling to pay towing fees.
“These funds are coming from people who are already struggling,” Stanford said. “Can we allocate some of this money back to the community?”
However, Colbert clarified that the revenue is directed to the general fund and not earmarked for specific community programs.
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