The recent report, “Toledo police look to outsource management of impound lot” (May 13), presents a rosy picture of increased revenue and “freed-up” officers. However, a closer look at the numbers and the operational risks reveals a deal that could leave Toledo taxpayers holding the bill for a private equity firm’s profit margins.
The “national auction” myth: Assistant Chief Braun suggests a “national platform” will increase sale prices. This ignores the fact that Toledo’s current auctioneer, Pamela Rose Auction Co., is a licensed Ohio firm that already uses a national online bidding platform. There is no “technological leap” here. Furthermore, our current contract with U-Pull guarantees a “floor” of $595 for every junk vehicle. Can an out-of-state firm guarantee that a burned-out shell will net $595 at a “national auction” once shipping and management fees are deducted?
The math doesn’t add up: The proposed contract costs $2.47 million annually. Currently, the TPD-run lot transfers a $2 million surplus to the general fund. To simply break even — meaning zero profit for the city — this company would have to generate nearly $4.5 million in revenue just to cover their own fee and maintain our current budget levels. To suggest they can more than double our current revenue through “national exposure” is a massive financial gamble with taxpayer money…