LTC 054-2013 Status of Towing Permits MIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 054 -2013 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission =+ a
FROM: Kathie G. Brooks, Interim City Manager ✓/ " ` ' �'
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DATE: February 19, 2013
SUBJECT: STATUS OF TOWING PERMITS
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This Letter To Commission "LTC" serves to provide an update on the status of the
towing permits that were approved by the Mayor and City Commission for Beach Towing
Services and Tremont Towing Services, respectively.
At the November 14, 2012, City Commission meeting, the Mayor and Commission
directed the Administration to provide actual annual gross revenues garnered by both
Permittees for public tows and /or related services in order to estimate: (1) annual gross
revenues generated from public tows and (2) average tow fee.
Public tows are carried out by either the Police or Parking Department. Actual annual
gross revenues were calculated for FY 11/12 by tallying all receipts processed by the
towing service providers. The average tow fee was calculated by dividing the total
annual gross revenues by the number of tows for that period.
Please note that strictly Parking Department tows were utilized to determine the average
tow fee below. In addition, our calculations were based on information available to us.
Furthermore, Internal Audit verified, in a sample basis, the accuracy and reliability of our
data entry and calculations, based on the information available. However no
representations were made regarding the reliability, accuracy, and sufficiency of the
information available and /or provided by the permittees. Nonetheless, . reviews dated
May 3 2012 performed by Marcum, LLC, an independent audit contractor; regarding
compliance to Towing Permit requirements including, among other things, the maximum
allowable towing rates, did not find any exceptions.
The Police Department categorizes and files tow receipts contingent upon the nature of
the incident; therefore, the tow receipt information is not readily. available and would
require substantial efforts and cost to research.. Therefore, the following formula was
utilized.
In FY 11/12, there were 10,983 tows and /or related services for both the Police and
Parking Department. The Police Department's portion was 2,591 or 23.6%
approximately and the Parking Department was 8,392 or 76.4% approximately.
The 8,392 tows and /or related services initiated by the Parking Department generated a
total of $1,881,578.31 (including sales tax where applicable 3) for both permittees. This
amount considers not just class "A" tows, but all tows and related charges including but
not limited to storage charges (exterior /interior), administrative, millage, labor, etc.
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City of Miami Beach - LTC
Status of Towing Permits
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However, from the 8,392 tows and /or related services, 198 vehicles were still under
permittee's control and therefore no charges have been assessed and /or are available to
us; 93 were either ' a refund, no charge, or vehicle was released with no assessed
charges; and 66 vehicles were surrendered and title obtained by permittees, but no
disposal proceed information was available, and /or provided to us.
The tows for which no monetary information was provided and /or available were
excluded from our count, leaving 8,035' tows and /or related services to be considered in
our calculations.. Therefore, an estimated average tow fee of $234.17 per tow was
calculated by dividing the proceeds billed and received by the permittees
($1,881,578.31) by the number of tows and /or related services for which monetary
charge information was provided and /or available (8,035).
While it may not be accurate to assume that police tows were charged at the same rates
as Parking Department Tows, if the same rates were extrapolated to police, an
estimated average tow fee of $234.17 for 10,890 (2,591 from Police, plus 8,299 from
Parking) annual tows and /or related services equates to an estimated total annual gross
revenues of $2,550,111.30 (including sales tax where applicable 3) for both permittees.
Towing Permit Enhancements - Update
- The towing permits now require the following enhancements:
• Uniforms
• GPS /AVL
-.Driver's License Checks
• Drug Testing
The following serves as an update regarding these enhancements:
Uniforms: The Permittees have submitted their proposed uniforms and it is currently
under review by the Administration.
GPS /AVL: The Administration issued the minimum GPS /AVL system requirements to the
Permittees. The Permittees now have a sixty (60) day period to review and provide a
GPS /AVL system that meets these requirements. A meeting between the Administration
and Permittees will be held shortly to review and discuss these minimum requirements.
Additionally, the processes and protocols regarding driver's license checks and drug
testing will also be addressed at this meeting.
KGB /PDW /RM /SF /JS
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Includes charges for less than $115.00, which is the minimum amount charged in tows where a class "A" tow truck
and /or Car Carrier is used, as a result of discounts provided and approved by the permittees.
2: Number includes: 198 tows where vehicles were still under permittees control and 66 tows were vehicles were
surrendered to the permittees, considering that at least estimated average fees will be charged and /or recovered by the
3 permittees (8,035 + 198 + 66 = 8,299).
Sales and use taxes were assessed on storage charges.