Valet Parking Operational Reviews Results Summary (Period 10-1-17 to 9-30-18) 1-18-19MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami
Office of Internal Audit
Tel: 305-673-7020
INTERNAL AUDIT REPORT
33139, www.miamibeachfl.gov
TO: Jimmy L. Morales, City ManagerVesults
VIA: Mark D. Coolidge, Interim Internal AFROM: Coral Vivolo, Auditor C�/
DATE: January 18, 2019
AUDIT: Valet Parking Operational Reviewsmmary
PERIOD: October 1, 2017 — September 30, 2018 (2017/18 Fiscal Year)
The Office of Internal Audit conducted four (4) separate reviews of the valet parking companies
authorized to operate on public property during the 2017/18 fiscal year. As different tests were
performed during each review, a summary of the work performed, and the results attained can be
found below. All noted results were timely forwarded to Parking Department management for
their review and any needed corrective action after each review was completed.
October 1, 2017 — December 12, 2017
Testing was performed to determine whether the Parking Department timely created the
required space rental permits and whether the valet operators secured their spaces in
accordance with the requirements set forth in City Code Sections 18-336 and 106-55 (g)
(1) and (2). All 554 permits created during the period were reviewed and the following
deficiencies were noted:
a. As of the completion of our testing on December 13, 2017, 37 (or 6.68%) space
rental permits, corresponding to seven (7) operators and totaling $22,099 had not
been paid.
b. As per Section 106-55 (g) (1) and (2) of the City Code, fees shall be payable two
weeks in advance for regular users. In addition, as per Section 18-336, no valet
parking shall occur on public property without the operator securing a space rental
valet parking from the City. Testing found that 447 (or 80.69%) space rental
permits totaling $268,953.50 and corresponding to 27 operators for the period of
October 1, 2017 through December 12, 2017 were paid late ranging from 3 to 49
days and averaged fifteen (15) days late. Although they were paid late, further
analysis found that 237 of the 447 permits noted above were paid in full before or
by the time/date the space rental permit started.
Management Response (Parking Department):
It was determined that the Parking Department will identify the regular permits from the
special permits. In addition, the Parking Department will be revising the City Code.
2. December 13, 2017 — February 7, 2018
Testing was performed to determine whether the Parking Department timely
created the required space rental permits and whether the valet operators secured
their spaces in accordance with the requirements set forth in City Code Sections
18-336 and 106-55 (g) (1) and (2). All 336 permits created between December 13,
2017 and February 7, 2018 were reviewed and the following deficiencies were
noted:
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INTERNAL AUDIT REPORT
VALET PARKING OPERATIONAL REVIEWS RESULTS SUMMARY (FY 2017/98)
January 18, 2019
a. As of the completion of our testing on February 7, 2018, 42 (or 12.50%)
space rental permits, corresponding to 9 operators and totaling $35,099
had not been paid.
b. As per Section 106-55 (g) (1) and (2) of the City Code, fees shall be payable
two (2) weeks in advance for regular users. In addition, as per Section 18-
336, no valet parking shall occur on public property without the operator
securing a space rental valet parking from the City.
Testing found that 273 (or 81.25%) space rental permits totaling
$134,473.50 and corresponding to 19 operators were paid late ranging
from 1 to 28 days, and averaged 12 days late. Although they were paid
late, further analysis found that 152 permits were paid in full before or by
the time/date that the space rental permit started.
Management Response (Parking Department):
It was determined that the Parking Department will identify the regular permits from the
special permits. In addition, the Parking Department will be revising the City Code.
3. April 1, 2018 —June 30, 2018
Testing was performed to determine whether valet operators secured their spaces in
accordance with the requirements set forth in City Code Sections 18-336, 18-337 (1), (4),
18-340 (1), (6) and 106-55 (g) (1) and (2). All 544 permits, corresponding to 27 operators,
created during the period of April 1 St through June 21 St, 2018, as well as all 27 valet
operators' files maintained by the Parking Department were reviewed and the following
deficiencies were noted:
a. As per City Code Sections 106-55 (g) (1) and (2), fees shall be payable two weeks
in advance for regular users. In addition, as per Section 18-336, no valet parking
shall occur on public property without the operator securing a space rental valet
parking from the City. As of the testing completion date (06/21/18), 104 (or 19%)
space rental permits, corresponding to 20 operators and totaling $92,015 had not
been paid. Although the rental period had not yet started, it was within the two (2)
week period where they should have already been paid in full.
Management Response -Parking Department: The Parking Department will identify if they
are regular or special permits.
b. Further testing found that 385 (or 71 %) space rental permits totaling $206,012 and
corresponding to 22 operators for the period of 04/01/18 to 06/21/18 were paid
late. The number of days late ranged from one (1) to 28 and averaged twelve (12)
days late. On a positive note, although paid late as per the City Code, 364 (or
95%) of the permits were paid by the start day or before, in other words, the
operators secured the spaces before conducting their business.
Management Response -Parking Department: The Parking Department will identify if they
are regular or special permits.
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INTERNAL AUDIT REPORT
VALET PARKING OPERATIONAL REVIEWS RESULTS SUMMARY (FY 2017/18)
January 18, 2019
C. Certificates of insurance provided by valet operators were frequently not in
compliance with the requirements of City Code Section 18-337. The certificates
for 18 of the 27 valet operators reviewed (67%) did not include the required
insurance limits and/or deductibles for the required Garage Keepers Liability
coverage, and in eight (8) instances, the City was not listed as an additional
insured. Furthermore, three (3) of said policies have since expired. The Parking
Department has reached out to the operator to obtain current policies; however,
as of the completion of our testing they had not been received. Lastly, the
certificates of 23 operators did not indicate evidence of review and approval by the
City's Risk Management Division.
Management Response -Parking Department: The Parking Department will continue to
reach out to the valet companies for a copy of their insurance certificates. However, the
Office Associate IV responsible for this task is not trained to determine if the insurance
coverage is correct as this is done by the Risk Management Division when the valet
companies renew their business tax receipt.
d. Parking Department administrative personnel did not obtain the required list of
employees/contractors including driver's licenses on a monthly basis in
accordance with City Code Section 18-340(6). In addition, the following
deficiencies were noted and are summarized below:
• One (1) operator did not provide list or copies of driver's licenses for their
employees/contractors.
• Six (6) operators did not provide the required list of employees/contractors
which is to include their valid driver's license numbers.
• Seven (7) operators did not provide copies of driver's licenses for some of
the employees/contractors listed. As a result, one could not always
validate the driver's license numbers on the Miami Dade County Driver's
License Check website, as some of the numbers provided were incorrect.
• Seven (7) operators contained several instances whereby the licenses of
employees/contractors had expired or had been cancelled/suspended.
The driver's licenses were validated using the Miami Dade County Driver's
License Check website.
Management Response -Parking Department: The Parking Department continues to
request the information. If the information is not submitted by the valet company, the
Office Associate IV will reach out to enforcement to issue violations.
4. July 1, 2018 -September 30, 2018
This review was performed to determine whether valet operators secured their spaces in
accordance with the requirements set forth in City Code Sections 18-336, 18-337 (1) and
(4), 18-340 (1) and (6), and 106-55 (g) (1) and (2). All 476 permits, corresponding to 27
operators, created during the period of July 1, 2018 through September 19, 2018, were
reviewed. In addition, unannounced site visits to several valet locations were conducted
on September 26th whereby the following deficiencies were noted:
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INTERNAL AUDIT REPORT
VALET PARKING OPERATIONAL REVIEWS RESULTS SUMMARY (FY 2017/18)
January 18. 2019
a. As per City Code Sections 106-55 (g) (1) and (2), fees shall be payable two weeks
in advance for regular users. In addition, as per Section 18-336, no valet parking
shall occur on public property without the operator securing a space rental valet
parking from the City. As of the testing completion date (09/24/18), 57 (or 12%)
space rental permits, corresponding to 17 operators and totaling $67,114 had not
been paid. Although the rental period had not yet started, it was within the two (2)
week period where they should have already been paid in full.
Management Response -Parking Department:
The Parking Department continues to invoice on a timely manner and will look into revising
the City Code on the payment due date.
b. Further testing found that 390 (or 82%)space rental permits totaling $241,600 and
corresponding to 26 operators for the period of 07/01/18 to 09/19/18 were paid
late. The number of days late ranged from one (1) to 24 and averaged eleven (11)
days late. Although paid late as per the City Code, 381 (or 98%) of said permits
were paid prior to the day in which the valet services were scheduled to commence
which represents a significant improvement over last year's analysis.
Management Response -Parking Department:
The Parking Department will look into revising the City Code on the payment due date.
C. During the unannounced site visits, it was noted that one (1) operator was
displaying valet signs at two (2) different locations, although they had not secured
the spaces. After discussion with Parking Department personnel and as per City
Code Section 18-341(c), valet operators may establish on -call valet ramps for
establishments that require valet service intermittently; however, at no time shall
signs be placed on the roadway impeding vehicular and/or pedestrian traffic. The
information along with pictures taken by Office of Internal Audit staff was forwarded
to the City's Parking Enforcement Division. As per email confirmation, this valet
operator was cited accordingly. However, after copies of the violations were
received, it was noted that for one (1) of the locations the operator was cited by
Code Compliance personnel for not having a valid BTR, not by Parking
Enforcement for having unauthorized valet signs displayed. Although the Code
violation was warranted, they also should be cited by the Parking Enforcement
Division.
Management Response -Parking Department:
The Parking Department will issue violations.
cc: Monica Beltran, Assistant Parking Director
Laura Franco-Rubines, Assistant Parking Director
Rocio Alba, Administrative Services Manager
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2017-18.docx
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