Parking’s Agreement to Provide Cashiers, Attendants and SupervisorsMEMORANDUM
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
OFFICE OF BUDGET AND PERFORMANCE IMPROVEMENT, Internal Audit
Tel: 305-673-7020, Fax: 305-673-7519
TO:
VIA:
FROM:
DATE:
Jorge M. Gonzalez, City Manager
Kathie G. Brooks, Budget and Performance Improvement Director
James J. Sutter, Internal Audit~
February 23, 2010
SUBJECT: SUMMARY OF OBSERVATIONS FOR PARKING REVIEWS PERFORMED DURING FY
2008/2009
As part of our Annual Audit Plan, Internal Audit performs a variety of operational reviews tailored to
ensure compliance to policies and procedures, quality of customer service, identifying potential
operational efficiencies, and ensuring that revenues and City assets are properly recorded and
safeguarded with respect to the Coin Room, Attended Lots, and Meter Enforcement operations of the
Parking Department.
OVERALL OPINION
Although observations documented throughout all of Internal Audit's reviews of the Coin Room and
Attended Lot operations did not provide us with reason to believe that any exception noted significantly
affects the overall financial position of the City, there were opportunities noted to maintain and/or
improve operational efficiencies, closer adherence to documented policies and procedures, and
customer service.
Furthermore, the enforcement capture ratio, calculated from our Meter Operation and Enforcement
reviews, continued to be lower than industry benchmarks, as reflected on the J.L. Donoghue Evaluation
of Parking System Revenue Control, despite a minor improvement of an additional5.02% from last year
when it was averaged at 3.36%. Insufficient enforcement results in not maximizing parking revenues
collected from both, the metered space and the issued citations.
Additional details have been provided later on this memorandum, under the corresponding operation
review performed, for further details and reference.
FINDINGS/OBSERVATIONS
During fiscal year 2009, a total of four (4) Coin Room, four (4) Attended Lots, and ten (12) Meter
Operations and Enforcement reviews were conducted at different unannounced dates and times.
Results from these reviews have been summarized, by operation, as follows:
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
COIN ROOM OPERATION REVIEW FINDINGS:
Coin Room operation reviews are performed quarterly in order to verify that controls, policies and
procedures, and revenue accountability are consistently applied to the daily meter revenue collections.
For this purpose, unannounced site visits were made on December 29, 2008, and on March 18th, May
20th, and September 11th, of 2009 to review the Coin Room's daily operations at the first floor of 309 23rd
Street. The following summarizes our findings and observations:
a) The Parking Department has continued implementing the usage of new Medeco keys for the
collection of single meters. These keys possess upgraded security features important for the
verification of the integrity of the collection process, as they provide an accurate count of the
single meters in which the key was used, which should equal the number of meters collected by
the Standard Parking Meter Collectors. However, the task of comparing the two numbers
should be performed daily by Parking Department personnel with any differences further
investigated and documented. This practice would help to ensure that all meters audited were
collected and that the Contractor's invoices are correct, considering that their pay is based on
the number of meters collected. Consequently, Internal Audit recommends the implementation
of the Medeco keys as soon as possible, as well as the monitoring of the Collected Meters
Report.
b) In order to obtain a better understanding of the new software (Parkfolio, from Parkeon) used to
monitor the Master Meters wireless, Internal Audit met with a Revenue Processor II, who uses
the Parkfolio System software application to identify master meters that need to be collected,
either because they are full, jammed or any other malfunction. Using this software allows the
Revenue Processor to schedule collections for master meters in need of collection. As a result,
a meter number, and zone location is given to the collectors for collection. The method ensures
that only meters that really need to be collected, are collected, and those that are not required to
be collected are then left for future collection. This method should contribute to lowering the
City's cost for collections since frequency of collection of those master meters less utilized or in
less populated areas is decreased to only when necessary, as opposed to collecting the entire
zone even if meters are half empty. As further option, the system allows the Revenue Processor
know which of the revenue sources need to be collected, the bills or the coins. This way he/she
can have the necessary equipment to effectuate the collection prior to the collector's arrival.
Despite the many advantages of the System, Internal Audit learned that some of the master
meter numbers programmed in to the system's database do not correlate to physical numbers
assigned to the different pay stations on the field. This represents a challenge for collectors
since it becomes very difficult to identify the machine assigned for collection. It also increases
the chances that the pay station may not be collected at all, but charged by the contractor to the
City as an attempt for collection. Although the parking department is currently in talks with the
vendor to correct the problem, Internal Audit recommends a persistent follow up and the request
of a date line to complete all corrections.
c) Reports generated from data gathered by the smart programmable Medeco keys could be used
as a control for the meter collection operation. The keys collect data regarding how many single
meters and which single meters have been collected. This feature is very useful as a reconciling
item with reports generated from the hand held computers; therefore ensuring a higher level of
confidence regarding the accuracy of data used by the contractor to invoice the City.
Nonetheless, Internal Audit learned that information programmed into the system software
database, similarly to the Parkfolio system, have a greater number of meters in certain areas
than the number of single meters physically on the zone. To correct this problem, Internal Audit
recommends implementing the same recommendation provided above.
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
d) It was noted that the Revenue Processors were programming the Medeco keys to be valid
between 6:00am and 5:00pm for the next business day. However, Standard Parking does not
arrive to pick up the keys until 6:30am and their work is typically finished by 12:00pm. As a
result, the extended programmed hours increases the City's risk exposure in the event that one
of these keys is inadvertently lost. To be conservative, Internal Audit would recommend
programming the Medeco keys to be operational between 6:30am and 2:30pm or
simultaneously with the hours that the Coin Room is open daily.
e) All coin Room cameras were found to be fully operational and properly positioned to eliminate
blind spots inside the coin room. The access card reader located outside the Coin Room door
was properly working as well.
f) Contractor's vehicles operated without following all the specifications for equipment outfitting of
the Request For Proposal (RFP). Some of the shortfalls included:
1. Two of the three Contractor vehicles were operating without air conditioning,
contradicting requirements of the RFP. A properly functioning air conditioner helps keep
the passengers and contents cool, as well as the windows defrosted thereby aiding
vision.
2. Another area reviewed was the ability for the vehicles to automatically lock the doors
when closed. This continues to be a shortfall as only one of the collection vehicles can
be closed with the alarm. The other two have to be manually locked, which is a
departure from RFP requirements as well.
3. Drop safes installed on two of the collection vehicles are too small and are not being
used for its intended purpose. They are also non-practical for the daily collection
operation.
g) During our review, Internal Audit noticed two plastic cases (one on top of the other) on the South
West corner of the Coin Room, right by the entrance. These cases were filled with single meter
coin buckets, but after a closer look, Internal Audit noticed three (3) bags partially filled with
coins. Immediately after, Internal Audit inquired about the content of the plastic cases. Coin
Room staff stated that the plastic cases and the bags had been brought by Meter Technicians a
few weeks prior. They also added that because a location from which these coins were
collected was not identified, they did not count them and were advised to count them little by little
and include them as spillage. A later count of the coins in the bags totaled $273.10.
A closer look to the plastic cases showed that out of a total of thirty-one (31) single meter coin
buckets, twenty eight (28) had coins in them. It was later determined that a total of $292.84 was
inside these coin buckets.
Subsequently, it was determined that the buckets were brought to the coin room by City Meter
Technicians from the 1 ih Street Garage. These coin buckets were extracted from meters that
have been removed a long time ago. Although Internal Audit was unable to determine how long
ago, the On-Street Operations Manager Stated that the meters had been removed prior to him
being hired, at least five years ago. He also added that there are other single meters that were
removed around the same time that may still have an undetermined amount of revenues.
However, they have not been able to open them since the air conditioner of the storage broke
and it is extremely difficult to work without proper air circulation.
Based in our observations, Internal Audit recommended that revenues, whether in coins or bills,
should be accounted immediately after being received at the coin room. In addition, the air
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
conditioner of the storage under the 1 yth Street garage should be fixed, as soon as possible in
order to allow personnel to collect any potential and undisclosed revenues still inside the single
meter heads removed. Furthermore, any moneys brought by the City technicians should be
documented, including the zone to which it belongs, and counted immediately.
No other significant findings were observed during our reviews and the department continued to show a
commitment towards improved processes and efficiencies.
Management Response(s}:
a) All Medeco Lock Installations have been completed.
b) All Master Meters have an assigned number. All designations have been confirmed both
internally and with the vendor's (Parkeon) Parkfolio software. Parkeon's Parkfolio database is
reconciled periodically to ensure both the manual list and Parkfolio match. This is an ongoing
process to capture any mislabeled master meters by either or both parties, with the
understanding that errors may occur on either side. It is to be noted that within Parkfolio we
have an inactive list of master meters which are kept for historical purposes. There are also
several master meter numbers that are used exclusively for set up and testing purposes.
c) All Single Space Meter Locks have an identifying number. All designations have been
confirmed both internally and with the vendor's (Medeco) software. There are areas within the
City which are under construction and meters are temporary removed or bagged. Contingent
upon the completion of the project some of the meters may or may not be return to service. Both
databases are kept unchanged for reference purposes until the project is completed. This may
take an undetermined length of time.
d) Management agrees to adjust the hours Medeco Keys are operable from 6:00AM-5:00PM to
6:30AM -4:00PM. Collectors begin their tour of duty at 630AM; however, due to unforeseen
circumstances such as inclement weather and/or technical difficulties, collection crews have
returned to the office as late as 4:00pm.
e) Agreed.
f) The Meter Collection Contractor, Standard Parking, was recently awarded a contract extension.
These items are being addressed as a component of said extension. It is important to note that
the Contractor was required to provide drop safes (Item No. 3); however, the use of drop safes
by the Contractor has not been required; therefore, this finding is not applicable.
g) From time to time, parking meter locking mechanisms malfunction rendering them inoperable.
This requires the parking meter vault to be drilled open. The meter cans referenced in the
finding were from meters with inoperable locks. Management agrees that ideally these meters
should be addressed timely; however, at times, resources and circumstances, delay their timely
completion. Since the AC unit has been replaced working conditions has permitted the
extraction of the remaining "buckets". The current S.O.P. entails that if a meter needs to be
stored or removed the meter is audited, collected (the coin can is labeled and turned in to the
coin room), removed from both databases, if permanent. The empty coin can is then removed
from the housing and stored separately.
Page 4 of 9
Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
ATTENDED LOTS OPERATION REVIEW FINDINGS:
Attended Lots operation reviews, like Coin Room operation reviews, are performed quarterly to evaluate
operations and compliance with documented policies and procedures established by the City's Parking
Department. These reviews are completed on two phases: Un-announced secret observations and lots
walk through. Visits on December 23, 2008, February 13 and 14, June 17, and September 27 to
different attended lots were conducted during FY 2009. The following summarizes the results from our
observations and walkthroughs during our visits:
a) All observed vehicles who paid received a valid pre-numbered ticket when entering the lot.
b) All tickets observed on the dash boards of parked vehicles concurred with the sequences of
issued ticket books.
c) Surface lots are being attended regularly without any guidance or criteria and in contradiction to
Chapter 106 of the City Code (Ordinance No. 2008-3613).
d) There are parking fee rates offered at attended surface lots that are not stipulated on the City's
Code of Ordinances and have not been approved by the Mayor and Commission.
e) Control weaknesses exist with respect to the implementation, accountability, and enforcement of
hourly rates ($2.00 discounted rate for three (3) hours and $4.00 for staying one through four
hours) offered at three (3) of the City's attended surface lots.
f) Lots located on 72nd Street and Collins Avenue (North and South Lot), and on 21st and Collins
were being attended seven days per week despite a smaller demand for parking during week
days.
g) Parking spaces are being restricted and reserved on the 46 1h Street and Collins Avenue
attended surface lot, reducing the capacity, preventing visitors from parking, and reducing
revenues generated by the lot.
Management Response{s):
a) Agreed.
b) Agreed.
c) All Surface Lots are operated consistent with the criteria established in Chapter 106 of the City
Code (Ordinance No. 2008-3613).
d) All parking rates offered at the City's attended surface parking lots are now in compliance with
the City's Parking Rate Ordinance.
e) This practice has been discontinued.
f) This was also identified by Management and the practice has been discontinued.
g) An allotment of parking spaces are withheld for short term parkers that will not use the facility
longer term and in turn do not want to pay a flat rate which is intended for long term parking.
Many, if not all, who are affected are residents of Miami Beach. This practice is in place to
provide Miami Beach residents with a higher service level. Lost revenue, if any, is more that
recuperated by the collection of the flat rate.
Page 5 of 9
Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
METER OPERATION AND ENFORCEMENT REVIEW FINDINGS:
Meter Operation and Enforcement reviews are preformed throughout the year in order to confirm that
the number of citations issued and observed divided by the number of violations observed is at least
25%, as recommended by the J.L. Donoghue Evaluation of Parking System Revenue Control. This ratio
is also known as the Enforcement Capture Ratio. Internal Audit also verifies whether meters are in good
working condition, ensures that there are no hazards to customers and/or their vehicles when using the
parking spaces. In addition, we verify that meters are not vandalized or painted with graffiti. Exhibit 1,
later attached reflects results from our reviews. In addition we have summarized results from our
reviews with respect to the Meter Enforcement Capture Ratio as follows:
a) Using the results from our reviews we estimate that approximately one (1) out of every four (4)
metered spaces occupied in the City is in violation, and approximately one (1) out of twelve (12) of
those in violation and eligible for citation is captured. The is an improvement over the previous fiscal
year where one (1) out of every three (3) metered spaces occupied was in violation and one (1) out
of every thirty (30) of those in violation and eligible for citation was captured. To better illustrate this
relationship for the past fiscal year the following chart was created using the results from our
reviews:
RELATIONSHIP AMONG METERED SPACES OCCUPIED WITHOUT VIOLATIONS, METERED
SPACES OCCUPIED WITH VIOLATIONS NOT CITED, AND METERED SPACES OCCUPIED
WITH VIOLATIONS CITED
30
l!l# OF METERED SPACES OCCUPIED WITH NO
VIOLATIONS
Ill!# OF METERED SPACES OCCUPIED WITH
VIOLATIONS NOT CITED
0# OF METERED SPACES OCCUPIED WITH
VIOLATIONS CITED
Note: Total number of occupied metered spaces tested was 1,277.
In contrast, the overall average of Meter Compliance Ratio (the number of occupied metered spaces
with no violations added to the amount of occupied metered spaces with violations cited, divided by
total number of occupied metered spaces) averaged 7 4.31 %. This means that approximately out of
every one hundred ( 1 00) occupied metered spaces in the City, approximately seventy-four (7 4) were
not in violation and/or the violation was cited.
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
b) An average Enforcement Capture Ratio of 8.38% was observed to be less than desired industry
benchmark of 25%, as per the J.L. Donoghue Evaluation of Parking System Revenue Controls.
However this is an improvement over the 3.36% observed in the previous fiscal year. The following
charts helps to illustrate the average capture ratio resulting from our reviews:
AVERAGE ENFORCEMENT CAPTURE RATIO
(#OF CITED VIOLA T/ONS DIVIDED BY THE TOTAL VIOLA T/ONS OBSERVED)
8.38%
91.62%
El% OF VIOLATIONS OBSERVED WITH NO
CITATION
liil% OF VIOLATIONS OBSERVED WITH
CITATION (CAPTURE RATIO)
AVERAGE QUARTERLY ENFORCEMENT CAPTURE RATIO
(FISCAL YEAR 2009)
1st Qtr. FY2009 2nd Qtr. FY2009 3rd Qtr. FY2009 4th Qtr. FY2009
Actual observation results from our reviews are reflected on Exhibit 1 provided along with this report for
further details.
Other observations during our reviews included the following:
c) Poorly written Daily Activity Reports by the enforcement officers.
d) Errors regarding vehicle and zones of enforcement assignments to the officers on the Enforcement
Division Daily Schedule prepared by the shift supervisor.
As a result, Internal Audit recommended to the Parking Enforcement Division to implement additional
internal controls by reviewing and comparing all daily schedules to include the officer's Daily Activity
report, the Officer/Unit Status Inquiry Listing, and the Detail Call for Service Report, to verify their
reliability, legibility, and ensure their agreement. Any exception should be investigated, resolved and
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009 February 23, 2010
documented. Once the review is complete, then the reports should be signed as reviewed by the shift
supervisor.
Management Response{s):
a) Agreed.
b) Agreed. The Capture Ratio has improved but it does continue to be below the Donoghue
recommended goal of 25%. Management applauds Internal Audit acceptance of Management's
recommendation to include the Compliance Ratio as an additional measure. A Compliance Ratio of
74.31% provides additional confirmation that overall parking enforcement efforts are effective.
c) Agreed. Management is addressing the issue of penmanship with staff.
d) Management will investigate and address any findings with shift supervisors.
(Summary completed by Fidel Miranda, Auditor)
CC: Jorge Gomez, Assistant City Manager
Saul Francis, parking Department Director
Chuck Adams, Assistant Parking Director
F:\obpi\$AUD\INTERNAL AUDIT FILES\DOCOS-09\REPORTS-FINAL\SUMMARY OF PARKING REVIEWS FY2009.doc
Page 8 of 9
Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2008/2009
CITY OF MIAMI BEACH
OBPI-INTERNAL AUDIT
METER OPERATION AND ENFORCEMENT SUMMARY
From Nov. 2008 to Sept. 2009
METER
TYPE
MASTER
SINGLE
MASTER
SINGLE
SINGLE
MASTER
MASTER
MASTER
SINGLE
MASTER
SINGLE
SINGLE
SINGLE
SINGLE
MASTER
SINGLE
MASTER
SINGLE
DATE DAY OF WEEK
12/23/2008 TUESDAY
12/30/2008 TUESDAY
01/20/2009 TUESDAY
03/16/2009 MONDAY
03/27/2009 FRIDAY
03/31/2009 TUESDAY
04/23/2009 THURSDAY
05/29/2009 FRIDAY
06/26/2009 FRIDAY
07/20/2009 MONDAY
08/27/2009 THURSDAY
09/30/2009 WEDNESDAY
TOTAL-SINGLE METERS:
TOTAL-MASTER METERS:
OVERALL TOTALS:
OVERALL AVERAGES:
178 178 39
2 2 2
29 29 9
84 84 35
130 129 27
92 92 44
97 97 18
51 51 23
37 37 13
94 94 14
49 49 8
86 86 24
70 70 32
104 103 25
62 62 14
44 43 9
51 51 16
20 20 6
626
654
1280
71
623
654
1277
71
181
177
358
20
0
0
0
0
0
0
0
15
7
0
0
4
0
0
0
13
17
30
2
EXHIBIT1
N/A 0 21.91% 0.00% 78.09%
0 0 100.00% 0.00% 0.00%
N/A 0 31.03% 0.00% 68.97%
5 7 41.67% 0.00% 58.33%
0 9 20.93% 0.00% 79.07%
N/A 0 47.83% 0.00% 52.17%
N/A 0 18.56% 0.00% 81.44%
N/A 0 45.10% 65.22% 84.31%
0 0 35.14% 53.85% 83.78%
N/A 0 14.89% 0.00% 85.11%
0 4 16.33% 12.50% 85.71%
0 0 27.91% 0.00% 72.09%
0 0 45.71% 12.50% 60.00%
0 0 24.27% 4.00% 76.70%
N/A 0 22.58% 0.00% 77.42%
0 1 20.93% 0.00% 79.07%
N/A 0 31.37% 12.50% 72.55%
0 2 30.00% 0.00% 70.00%
5
N/A
5
23
0
23
29.05% 7.18%
27.06% 9.60%
28.03% 8.38%
28.03% 8.38%
73.03%
75.54%
74.31%
74.31%
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February 23, 2010