BACKGROUND
By 2012, the Metropolitan Nashville Police Department (MNPD) Vehicle Impound Section (VIS), which oversaw and operated the city’s 21-acre police vehicle impound lot, had incurred a $2.5 million deficit. The VIS receives and stores vehicles involved in police investigations and accidents, vehicles held as evidence or seized assets, abandoned vehicles, and other evidence too great in size for storage at the MNPD property room. With the objective of producing positive cash flow from operations, the city issued a Request for Proposal for the administrative, fiscal and day-to-day operational management of the impound lot.
Vehicle Management Solutions (VMS) was awarded the contract and assumed services in March 2013 and has continuously managed the VIS since then.
SOLUTION
Operation of the VIS consists of three primary daily activities:
- Receiving impounded vehicles
- Lien processing
- Releasing claimed or selling unclaimed vehicles
Given the evidentiary nature of vehicles brought to VIS, VMS maintains clear chain of custody throughout all impound lot processes. The Company deploys technological and software solutions to track vehicles, establish and notify vehicle ownership and provide real-time information feeds to the MNPD.
VMS fiscal responsibilities include daily reconciliation of monies collected to towing and vehicle release activities, maintenance of a distinct bank account for all revenues and expenses related to VIS operations to ensure no commingling and use of armored transport services to ensure safe and secure cash handling.
In addition to daily reporting to city management, VMS also provides annual audited financial statements and annual agreed-upon procedures verification of contractual compliance in line with the Company’s commitment to transparent communication.
PERFORMANCE
In addition to continuing to meet the needs and standards of the Metropolitan Nashville Police Department, the VIS has generated approximately $1.3 million in cash since 2013 while under VMS management. The city has recognized positive cash flow from operations in every year that VMS has managed and operated the impound lot.
Source: Annual Financial Reports, Nashville.gov
Note:
1. 2020, 2021 and 2022 cash balances include $600,000 transfers out in fiscal 2020
