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Resolution 2021-31579 RESOLUTION NO. 2021-31579 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXTENDING, ON A MONTH TO MONTH BASIS, THE CURRENT TOWING PERMITS WITH THE CITY'S TWO (2) TOWING PERMITTEES, BEACH TOWING SERVICES, INC. AND TREMONT TOWING, INC., RESPECTIVELY, WHICH ARE CURRENTLY SET TO EXPIRE ON FEBRUARY 28, 2021, FOR A PERIOD NOT TO EXCEED THREE (3) MONTHS, OR UNTIL MAY 28, 2021, TO PROVIDE THE CITY ADMINISTRATION WITH ADDITIONAL TIME TO PREPARE THE RECOMMENDATIONS REQUESTED BY THE CITY COMMISSION PURSUANT TO RESOLUTIONS NO. 2020-31501 AND NO. 2020-31507. WHEREAS, on January 15, 2020, the Mayor and City Commission adopted Resolution No. 2020-31147, urging the City's Inspector General (IG) to take the following actions regarding the audits performed on the City's two (2) towing permittees, Beach Towing Services, Inc., and Tremont Towing Services, Inc.: (1) transmit the draft audit reports to the towing permittees, and allow the permittees to provide any comments, in writing, to the IG; (2) following the"comment period"deadline, requesting that the IG take such action(s) as necessary to finalize the audits (incorporating, as the IG deemed necessary, any comments provided by the towing permittees); and (3) requesting the IG to place a follow-up discussion item regarding the final towing audit reports on the City Commission agenda; and WHEREAS, the Resolution also extended both permittees' towing permits, which were set to expire on February 28, 2020, on a month-to-month basis, for up to six (6) months after the expiration date (or August 28, 2020); and WHEREAS, on July 29, 2020, the Mayor and City Commission adopted Resolution No. 2020-31371, further extending the towing permits on a month to month basis, up to three (3) months after the expiration date of August 28, 2020 (or November 28, 2020), to allow City staff sufficient time to update the towing permits, incorporating the IG's recommendations; and WHEREAS,the IG's report regarding the towing permit audits was finalized on September 24, 2020; and WHEREAS, on November 18, 2020, the Mayor and City Commission adopted Resolution No. 2020-31501 (relating to City Commission Item No. R7 F), further extending the towing permits, on a month to month basis, up to three (3) months after the expiration date of November 28, 2020 (or February 28, 2021), to provide the Administration with additional time to consider the IG's recommendations, as well as other recommendations including,without limitation, those from Miami Beach United (MBU), and provide its recommendations, to be incorporated in the new towing permits; and WHEREAS, on November 18, 2020, the Mayor and City Commission also adopted Resolution No. 2020-31507 (relating to City Commission Item No. R7 0), directing the Administration to (1) consider the recommendations of the IG's report and those of MBU, (2) provide its own recommendations, which may include possible amendments to the Administrative Rules and Regulations and/or the City's Code of Ordinances; and (3) prepare a solicitation for the issuance of towing permits, pursuant to Chapter 106 of the City Code, for the City's Police Department and Parking Department, for the approval of the City Commission; and WHEREAS, in order to enable the Police and Parking Departments to tow vehicles on public property, as deemed necessary and required, and provide the City Administration with sufficient time to provide the City Commission with the foregoing submittals, the Administration recommends extending both towing permits, on a month-to-month basis, for up to three (3) months, or until May 28,2021. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby extend, on a month to month basis, the current tow permits with the City's two (2) towing permittees, Beach Towing Services, Inc. and Tremont Towing, Inc., respectively, which are currently set to expire on February 28, 2021,for a period not to exceed three(3)months, or until May 28, 2021, to provide the City Administration with additional time to prepare the recommendations requested by the City Commission pursuant to Resolutions No. 2020-31501 I and No. 2020-31507. PASSED and ADOPTED this /0 day of F. 61-4141'1/ , 2021. ATTEST: iti2-2 ,-----___ Dan Gelber, Mayor 2A2f2`rt P Rafaeyd ranado, City Clerk ,, , INI'ORP ORATED•' ; t:\agenda\2021\3 february 10\parking\towingextension reso.docx APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Z -3—Z) City Attorney Date Resolutions -C7 K MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Raul J.Aguila, Interim City Manager DATE: February 10, 2021 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXTENDING, ON A MONTH-TO-MONTH BASIS, THE CURRENT TOWING PERMITS WITH THE CITY'S TWO (2) TOWING PERMITTEES, BEACH TOWING SERVICES, INC. AND TREMONT TOWING, INC., RESPECTIVELY, WHICH ARE CURRENTLY SET TO EXPIRE ON FEBRUARY 28, 2021, FOR A PERIOD NOT TO EXCEED THREE (3) MONTHS, OR UNTIL MAY 28, 2021, TO PROVIDE THE CITY ADMINISTRATION WITH ADDITIONAL TIME TO PREPARE THE RECOMMENDATIONS REQUESTED BY THE CITY COMMISSION PURSUANT TO RESOLUTIONS NO. 2020-31501 AND NO. 2020-31507. RECOMMENDATION Adopt the Resolution. BACKGROUND/HISTORY On January 15, 2020, the City Commission adopted Resolution No. 2020-31147, urging the City's Inspector General (IG) to take the following actions regarding the audits previously performed on the City's two (2) towing permittees, Beach Towing Services, Inc., and Tremont Towing Services, Inc.: (1)transmit the draft audit reports to the towing permittees, and allow the permittees to provide any comments, in writing, to the IG; and (2) following the "comment period" deadline, requesting that the I G take such action(s) as necessary to finalize the audits, (incorporating, as the I G deems necessary, any comments provided by the towing permittees); and (3) requesting the IG to place a follow-up discussion item regarding the final towing audit reports on the City Commission agenda. The City Commission also extended the towing permits, which were set to expire on February 28, 2020, on a month-to-month basis for up to six (6) months, or until August 28, 2020. The Resolution is attached as Exhibit "A" to this Memorandum. On July 29, 2020, the City Commission adopted Resolution No. 2020-31371, continuing to extend the towing permits, on a month to month basis, up to three (3) months after the expiration date of August 28, 2020 (or November 28, 2020), to allow for updated permits incorporating the I G's recommendations. Page 324 of 1252 The I G's reports (copies of which are attached as, respectively, Exhibits "B", "B-1" [Tremont Audit], and "B-2" [Beach Towing Audit] to this Memorandum) were finalized on September 24, 2020. Therefore, another three (3) month extension was requested to incorporate the recommendations of the I G report into the new towing permits. On November 18, 2020, the City Commission adopted Resolution No. 2020-31501, further extending the towing permits on a month to month basis, up to three (3) months after the expiration date of November 28, 2020 (or February 28, 2021), to allow for updated towing permits incorporating the I G's recommendations, as well as other recommendations including, without limitation, those from Miami Beach United (MBU). ANALYSIS The current month-to-month extension, will expire on February 28, 2021. In order for the Police and Parking Departments to continue to be able to tow vehicles on public property, as deemed necessary and when required, the Administration recommends further extending the towing permits, on a month-to-month basis for up to three (3) months, or until May 28, 2021. This will allow the Administration to continue to address pending issues and to update the Administrative Rules and Regulations pertaining to Police and Parking towing. SUPPORTING SURVEY DATA Results from the 2019 Resident Survey show that 61.5% of residents rated the availability of on-street Parking in Miami Beach as too little. CONCLUSION The Administration recommends further extending the towing permits of both towing permittees, on a month-to-month basis from February 28, 2021, for up to three (3) months, or until May 28, 2021. Applicable Area Citywide Is this a"Residents Right Does this item utilize G.O. to Know" item. pursuant to Bond Funds? City Code Section 2-14? Yes No Strategic Connection Mobility-Address traffic congestion. Legislative Trackina Parking ATTACHMENTS: Description Page 325 of 1252 ❑ Towing Exhibit A- Resolution 2020-31147 ❑ Towing Exhibit B -OIG No. 20-13 Parking and Police Dept Requested Tows Operational Audit ❑ Towing Exhibit B-1 OIG No. 20-19 Tremont Towing Inc. ❑ Towing Exhibit B-2 OIG No. 20-18 Beach Towing Services, Inc. ❑ Resolution ❑ Draft Towing Permit Page 326 of 1252 Exhibit "A" RESOLUTION NO. 2020-31147 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE CITY'S INSPECTOR GENERAL ("IG") TO TAKE THE FOLLOWING ACTIONS REGARDING THE INTERNAL CITY AUDITS PREVIOUSLY PERFORMED ON THE CITY'S TWO (2) TOWING PERMITTEES, BEACH TOWING SERVICES, INC., AND TREMONT TOWING, INC. (WHICH AUDITS ARE STILL IN "DRAFT", NON-FINAL FORM): (1) TRANSMIT THE DRAFT AUDIT REPORTS TO THE TOWING PERMITTEES, AND ALLOW THE PERMITTEES TO PROVIDE ANY COMMENTS, IN WRITING, TO THE IG NO LATER THAN FEBRUARY 1ST, 2020; (2) FOLLOWING THE FEBRUARY 1ST "COMMENT PERIOD" DEADLINE, REQUESTING THAT THE IG TAKE SUCH ACTION(S) AS NECESSARY TO FINALIZE THE AUDITS, (INCORPORATING, AS THE IG DEEMS NECESSARY, ANY COMMENTS PROVIDED BY THE TOWING PERMITTEES), BY A DATE NO LATER THAN FEBRUARY 10, 2020; AND (3) REQUESTING THE IG TO PLACE A FOLLOW-UP DISCUSSION ITEM REGARDING THE FINAL TOWING AUDIT REPORTS ON THE FEBRUARY 12, 2010 CITY COMMISSION AGENDA; AND FURTHER EXTENDING CURRENT TOWING PERMITS OF THE TOWING PERMITTEES, CURRENTLY SET TO EXPIRE ON FEBRUARY 28, 2020, ON A MONTH-TO-MONTH BASIS FOR UP TO SIX (6) MONTHS AFTER THE EXPIRATION DATE. WHEREAS, on or about December, 2018, the City of Miami Beach Internal Auditor (the"City Auditor")and his staff undertook an audit of the City's two (2)towing permittees, Beach Towing Services, Inc., and Tremont Towing, Inc. (hereinafter, the "Towing Permittees"); and WHEREAS, nearing the end of his auditing process, the City Auditor met with representatives of the Towing Permittees on March 11, 2019, and May 16, 2019, to discuss the draft audit reports (hereinafter, the "Draft Audit Reports"), and to receive feedback, suggested revisions, and/or other comments, as is customary during the City's internal auditing process; and WHEREAS, on April 30, 2019,the Miami New Times contacted the City requesting a copy of the Draft Audit Reports, and was informed that such Reports were still in progress; not yet finalized; and, therefore, not subject to disclosure under Florida Public - Records law; and WHEREAS, at the June 5, 2019 City Commission meeting, the Towing Permittees, through their representatives, appeared before the City Commission to request that, in lieu of finalizing the Draft Audit Reports, the City retain an outside independent auditing firm to conduct an audit of the Towing Permittees (with such outside auditor to be contracted by the City, and paid for by the Towing Permittees); and Page 327 of 1252 WHEREAS, following the discussion, the City Commission voted 4-3 to suspend the City's internal audit (in progress), and hire an outside auditing firm; and WHEREAS, in accordance with the City Commission's direction, on or about October, 2019, the City entered into a contract with RSM US LLP to perform the outside independent audit of the Towing Permittees; and WHEREAS, although the independent audits were to have been completed by December 31, 2019, they have not yet commenced; and WHEREAS, on November 4, 2019, the Miami New Times initiated a lawsuit against the City to compel the City to release the Draft Audit Reports; and WHEREAS, on November 14, 2019, the Eleventh Circuit Court for and in Miami- Dade County ruled for the Miami New Times, ordering the City to provide the Miami New Times with the Draft Audit Reports of its internal auditor; and WHEREAS, the City appealed the ruling to the Third District Court of Appeal, and filed a motion to stay the Lower Court's order, which was granted on November 19, 2019; and WHEREAS, the litigation is still pending; and WHEREAS, in addition, following successful passage of a ballot question on November 5, 2019, the Mayor and City Commission amended the City Charter to provide for the creation of a City of Miami Beach Office of Inspector General ("IG"), to perform, among other things, investigations, audits, reviews, and oversight of municipal matters; and WHEREAS, considering (i) the costly public records lawsuit currently pending in the Third District Court of Appeal; (ii)the establishment of the Office of Inspector General; (iii) the fact that the Draft Audit Reports prepared by the City's Internal Auditor were near completion; and (iv) the outside independent audits have not even commenced, at this time it would be in the best interest of the City to finalize the Draft Audit Reports previously prepared by the Internal Auditor; and WHEREAS, it is imperative that the City proceed to finalize the Draft Audit Reports, not only in light of the aforestated litigation, but because the City's towing permits with the Towing Permittees expire on February 28, 2020, and the City Commission should be able to consider the results and findings of the audit reports prior to, and as a component of, whether to renew the towing permits with the Towing Permittees; and WHEREAS, furthermore, the City's current towing permits with the Towing Permittees, which are set to expire on February 28, 2020, should be extended on a month-to-month basis for up to six months after the expiration date. Page 328 of 1252 • NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby urge the City's Inspector General ("IG") to take the following actions regarding the internal City audits previously performed on the City's two (2) towing permittees, Beach Towing Services, Inc., and Tremont Towing,.Inc. (which audits are still in "draft", non-final form): (1) transmit the draft audit reports to the Towing Permittees, and allow the permittees to provide any comments, in writing, to the IG no later than February 1st, 2020; (2) following the February 1st "comment period" deadline, request that the IG take such action(s) as necessary to finalize the audits, (incorporating, as the lG deems necessary, any comments provided by the Towing Permittees), by a date no later than February 10, 2020; and (3) request the IG to place a follow-up discussion item regarding the final towing audit reports on the February 12, 2010 City Commission agenda; and further extend current towing permits of the Towing Permittees, currently set to expire on February 28, 2020, on a month-to-month basis for up to six (6) months after the expiration date. • PASSED AND ADOPTED this 1S day of V 411‘441" _r , 020. • ATTEST: Dan G r, Mayor . 1z7z� Rafael Granado, ity lerk (Sponsored by Commissioner David Richardson) ., . * `• 1NCORP ORATED:: . • r •.Tri! . APPROVED AS TO E.QRM &:LANGUAGE ,.&FOR EXECUTION c9k_Owl"— I f City Attorney Date • Page 329 of 1252 Resolutions -R7 M MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Raul J,Aguila, City Attorney DATE: January 15, 2020 SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, URGING THE CITY'S INSPECTOR GENERAL ("IG") TO TAKE THE FOLLOWING ACTIONS REGARDING THE INTERNAL CITY AUDITS PREVIOUSLY PERFORMED ON THE CITY'S TWO (2) TOWING PERMITTEES, BEACH TOWING SERVICES, INC., AND TREMONT TOWING, INC. (WHICH AUDITS ARE STILL IN "DRAFT", NON- FINAL FORM): (1) TRANSMIT THE DRAFT AUDIT REPORTS TO THE TOWING PERMITTEES, AND ALLOW THE PERMITTEES TO PROVIDE ANY COMMENTS, IN WRITING, TO THE IG NO LATER THAN FEBRUARY 1ST, 2020; (2) FOLLOWING THE FEBRUARY 1ST 'COMMENT PERIOD" DEADLINE, REQUESTING THAT THE IG TAKE SUCH ACTION(S) AS NECESSARY TO FINALIZE THE AUDITS, (INCORPORATING, AS THE IG DEEMS NECESSARY, ANY COMMENTS PROVIDED BY THE TOWING PERMITTEES), BYA DATE NO LATER THAN FEBRUARY 10, 2020;AND (3) REQUESTING THE IG TO PLACE A FOLLOW-UP DISCUSSION ITEM REGARDING THE FINAL TOWING AUDIT REPORTS ON THE FEBRUARY 12, 2010 CITY COMMISSION AGENDA. RECOMMENDATION Pursuant to the request of Vice-Mayor David Richardson, the above-referenced Resolution is submitted for consideration by the City Commission at the January 15, 2020 Commission meeting. Applicable Area Not Applicable Is this a Resident Right to Does this Item utilize G.Q. Know item? Bond Funds? No No Legislative Tracking Office of the City Attorney Sponsor Page 1374 of 1618 Page 330 of 1252 Vice-Mayor David Richardson ATTACHMENTS: Description o Resolution Page 1375 of 1618 Page 331 of 1252 PSI BE�: Exhibit "B" r � C r . 2sAFHISTORIC AJ,:, CSI T NAIL Joseph M. Centorino, Inspector General TO: Honorable Mayor and Members of the City Commission FROM: Joseph Centorino, Inspector General DATE: September 24, 2020 AUDIT: Parking and Police Department Requested Tows Operational Audit OIG No. 20-13 PERIOD: October 1, 2017 to October 31, 2018 This report is the result of a request made by the City Administration in November 2018 to verify Beach Towing Services, Inc.'s (Beach Towing) and Tremont Towing, Inc.'s (Tremont Towing) compliance with selected provisions in the City of Miami Beach Administrative Rules and Regulations for Police and Parking Towing Permits (Towing Permits) in effect during the audit period. Meetings were held in December 2018 with the tow companies and applicable Parking, Police and Finance Department staff to gain an understanding of each company's operations and to request relevant documents. Although the reviewed Towing Permits contain a myriad of points that require compliance from the two tow companies, Office of the Inspector General (OIG)staff concentrated its testing on the accuracy of the City's monthly billings and the amounts charged to tow customers. To help achieve these objectives, we reviewed the written Standard Operating Procedures, records of work performed, available body camera footage, documentation received from the City's Parking, Police and/or Finance Departments, and copies of the tow slips received from the tow companies. As this audit was nearing completion, the City Commission voted in favor of terminating the audit at its June 5, 2019 meeting and all work on this and related audits was immediately stopped. This audit's termination was subsequently re-visited at the January 2020 Commission meeting wherein it was determined that the newly created Office of the Inspector General, as an independent body, had the authority to conclude the audit within its broad discretion to audit, investigate and review City operations and contracts. Consequently, the auditing work was subsequently resumed, resulting in the completion of three separate audit reports, including this one. The remaining two audit reports address the testing performed relative to Beach Towing Services, Inc. (Beach Towing) and Tremont Towing, Inc. (Tremont Towing). Although the work performed was reported separately, there may be some overlap in the three reports, as noted shortcomings could involve more than one of the parties involved. ACRONYMS CAD = Computer Aided Dispatch LERMS = Law Enforcement Records Management System PES = Parking Enforcement Specialist PET = Property and Evidence Technician :V:',_,,, -,;,,,,,,....-,4)., .,.7 R'J: '0 b' k'" :r. ::'‘..,:y ` O J",:1 'n,, ,b,' _.) _ a:+',r.,r' Page 332 of 1252 PEU = Property and Evidence Unit PSCU = Public Safety Communications Unit VRO = Vehicle Research Office VSR = Vehicle Storage Receipt VTL = Vehicle Tow Log INTRODUCTION Chapter 106, Article V, of the Miami Beach City Code, provides for the issuance of towing permits for the towing of vehicles identified by the City's Parking and Police Departments as requiring removal from public and private property, as well as vehicle impoundments. The same two tow companies, Beach Towing and Tremont Towing, have continued to operate exclusively in Miami Beach since at least their selection based on their response to Request for Proposals No. 1-91/94. The negotiated towing permits for the two companies have been revised as needed in the following years. More recently, City Resolution 2015-28918 was adopted on February 11, 2015, approving the issuance of new Towing Permits to Beach Towing and to Tremont Towing for a three-year term • commencing on March 1, 2015, and expiring on February 28, 2018. Both companies' terms were extended for an additional one year through February 28, 2019 with the passage of City Resolution No. 2018-30161. The City Commission approved a one-year extension for both tow companies under the same terms except for a reduction of their charged automated teller machine fees at the December 12, 2019 meeting. Although this extension expired in February 2020, both Beach Towing and Tremont Towing are continuing to operate on a month-to-month basis under its terms. Among other provisions, Section 3 of the Towing Permits includes the following: "The City shall bill Permittee (Beach Towing and Tremont Towing) by the 10th of each month for all tows occurring in the previous month. A late charge of $50 plus the greater of (i) eighteen percent (18%) interest per annum or (ii) the maximum rate allowable under Florida law shall be assessed on all payments received after the 20th day of the billing month". In addition, Section 22 lists the following approved maximum towing rates: Class "A" Tows: $140` Mileage/Mile (max: $42): 56 Class "B" Tows: $145; Labor to Engage/Tow: $30 Class "C" Tows: $175+ Outside Storage (per day): $30 Class "D" Tows: $200" Indoor Storage (per day): $35 Administrative Fee: $35 After Hours Fee: $30 Dollies or Flatbed Services: $40 ` As defined in Section 11 of the Towing Permits, the hook-up fees are charged based on the following gross vehicle weights: Class"A"wreckers and slide back car carriers-commercially manufactured unit,with a rated capacity of not less than 10,000 pounds Class"B"wreckers-commercially manufactured units,with a rated capacity of not less than 18,000 pounds Class "B" slide back car carriers — commercially manufactured unit, with a rated capacity of not less than 20,000 pounds Class"C"wreckers—commercially manufactured unit,with a rated capacity of not less than 36,000 pounds Class"D"wreckers-not specifically addressed in the Towing Permits,but it was assumed they would contain a rated capacity of more than 36,000 pounds(the maximum weight limit for Class"C"wreckers). Lastly, drop fees are to be waived when a vehicle owner arrives on the scene of a tow and the vehicle has been engaged (hooked) by the tow truck, but the tow truck has not left the scene. Although Florida law allows tow companies to assess a drop fee of not more than 50% of the Page 2 of 23 Page 333 of 1252 posted towing rates, it has been agreed that all drop fees will be voluntarily waived on Miami Beach per Section 24 of the Towing Permits. The following sections provide an overview of the City procedures established and to be followed by staff depending on whether it is a Parking or Police Department requested tow: A. Parking Department Requested Tows A Parking Department requested public property tow occurs when a vehicle is illegally parked in a City street, City parking lot, garage or other public right-of-way. A parking citation is also issued stating the violation. The most common reasons for a public property tow are prohibited parking (parking in fire lanes/hydrants, cross walk, double- parking); restricted parking; or illegally parking in a handicap accessible parking spot, residential parking zone or loading zone. Vehicles may also be towed because of unpaid parking violations. All associated fees must be paid in full before the owners can pick up their impounded vehicles. Parking tows are initiated by a Parking Enforcement Specialist (PES)and are reported to the Dispatcher who records the information in a Vehicle Tow Log (VTL). The VTL is used to temporarily maintain the vehicle information and to log the call until the vehicle has been towed away for the convenience of the Dispatcher. The VTL also aids in facilitating an equal rotation between the two tow companies as initial dispatch calls to Beach Towing and Tremont Towing are to be alternated. The Dispatcher then enters the vehicle information into the Law Enforcement Records Management System (LERMS)which is used to generate a sequential tow number. This number is used by the PES to create the Vehicle Storage Receipt(VSR). The Dispatcher subsequently contacts the authorized tow company per the rotation. At the scene of the tow, the PES obtains the signature of the tow company representative on the VSR. Each tow company is provided with a copy of the completed VSR. At the end of each month, the Parking Enforcement Manager is to generate a Computer Aided Dispatch(CAD) report to review any significant differences in the number of tows between the two tow companies. At least once a week, the Parking Department Enforcement Supervisors pick up the VSRs together with storage payment receipts and photocopies of personal identification provided by the individuals who picked up the impounded vehicles from both towing companies. These documents are subsequently delivered to the Parking Departments Coin Room staff where they get filed and maintained numerically by date and by tow company. On a weekly basis, a tow report is generated from LERMS which documents the data from all the tows that Dispatch radioed in for that week for each tow company. This report is emailed to the Coin Room staff in Excel format, which pulls the filed VSRs and matches them to the LERMS report, noting any"no charge" tows as well as highlighting any Miami Beach resident tows. A few examples of"no charge" tows include City requests that certain individuals not have to pay the associated fees due to their being crime victims, or when inadvertent mistakes are made, and the vehicle improperly towed. Otherwise, the City is to be reimbursed either $20 for abandoned vehicles, $25 for Miami Beach residents' vehicles and $30 for all other tows in accordance with the Towing Permits. To prove residency, both the individual's driver's license address and registration must match a valid Miami Beach address. If the VSR from the tow company and the report match, it is considered a "good tow". Any Page 3 of 23 Page 334 of 1252 discrepancies are to be resolved by calling the pertinent tow company and/or the Enforcement Supervisor. Once all discrepancies are resolved and the numbers of tows are agreed upon, the Parking Department's Coin Room staff send the updated and reconciled CAD Excel report to the designated Office Associate IV for review and to prepare the monthly invoices. Once created, the Office Associate IV is to post the invoices in the City's Financial System for each tow company by the tenth day of each month. The Office Associate IV emails the monthly invoices to the respective tow company and is to periodically follow-up on any outstanding invoices. B. Police Department Requested Tows Police officers or authorized non-sworn Police Department employees possess legal authority to remove vehicles/vessels from roadways/waterways and public property when the vehicle is parked illegally and obstructs traffic, parked in a handicap space, severe injury or death to the driver/occupant occurred from a traffic accident, the vehicle does not have a license tag or it was stolen and/or used in the commission of a crime. A more comprehensive listing can be found in the Police Department's Standard Operating Procedure#133, Section I entitled "Legal Authority". When the Police Department employee determines that a vehicle is to be towed or impounded, he/she will inspect the vehicle and visually determine the vehicle identification number and the license tag number. This information is then called into the Public Safety Communications Unit (PSCU) to determine the name and address of the owner and the vehicle's status. Next, they will complete a VSR which contains the name, address and phone number of the registered owner and/or driver, the date, time, location and reason for the tow, the applicable case number, the vehicle information, notation of any interior or exterior vehicle damage, inventory of all items present, among other information. Then the employee is to contact the PSCU and request a contracted tow truck from either Beach Towing or Tremont Towing based on their rotation, including any need for special equipment(e.g. car-carrier, heavy-duty trucks). The VSR should contain documentation as to the reasons for any special requests or additional labor charges, like the use of a dolly or flatbed or unlocking and entering the vehicle. Once the VSR is completed and prior to returning to service, all relevant information is to be provided to the PSCU. In addition, a hold could be placed on a vehicle if it was used in the commission of a crime or is considered evidence. All holds require a supervisor's signature on the VSR and it is the police officer's responsibility to contact the specific entity and to advise them that there is a hold on the vehicle. The assigned investigator is then to write a Supplemental Report within five days indicating either release of the vehicle or the supervisor-approved reasons for continuing the hold. Also, the vehicle is to be removed from the tow lot and transported to the Police Department's impound area by the applicable tow company. The Police Department's Vehicle Research Office (VRO), comprised of a collaborative effort between the Property and Evidence Unit(PEU)and the PSCU, is responsible for ensuring a VSR is received for all towed vehicles and that all information has been provided to the PSCU, confirming that the tow companies are meeting their contractual obligations, providing a central location for all inquiries concerning impounded and towed vehicles. Immediately following the end of each month, the PEU is to generate a report of all contracted tows occurring during the specified month which is to be timely forwarded to the Finance Department for invoicing by the tenth of the month. Lastly, the tow companies are to remit their corresponding payment of the invoice by the twentieth of the month or the designated late charges are to be levied. Page 4 of 23 Page 335 of 1252 OVERALL OPINION The same two tow companies have operated exclusively in Miami Beach since at least their selection based on their response to Request for Proposals No. 1-91/94. Similarly, several key City staff members have been tasked with dealing with these tow companies for many years. Although staff longevity and experience may be of some value, there appears to have developed some complacency in enforcement of some of the terms in the City Towing Permits, as well as insufficient oversight of the towing companies. In addition, the latest technology has not been fully embraced, as most of the forms reviewed are prepared manually, which increases the possibility of inadvertent errors/omissions, incorrect billings, and makes difficult the review and analysis of these data at large scale. The following shortcomings were noted during testing that are in need of corrective action by the City: 1. Parking and Police Department's requested tows were not properly billed during the audit period resulting in an estimated underbilling of$24,822 ($21,577 for Parking + $3,245 for Police). 2. 12 of 26 tested Police Department billings were prepared after designated due dates per Towing Permit Section 3 (46.15%), and they consistently listed incorrect due dates. 3. The current Towing Permits contain some contradictory wording which created confusion as to their interpretation. Additional recommended terminology should be included in the next negotiated Towing Permits. 4. Formal complaint logs were not maintained by the City's Parking and Police Departments, which impeded verification that the appropriate actions stated in Section 29 of the Towing Permits were timely performed. 5. The tow truck operator's arrival time was not recorded for Police Department requested tows, creating an obstacle in determining compliance with Section 14 of the Towing Permits, which requires a 20-minute response time. 6. The Parking Department should maintain adequate documentation as to the reasons why the tow companies were not alternated to help prevent possible future disagreements. 7. Parking and Police Department staff were unaware that the tow companies did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits and their information was not uploaded into Exigis, LLC's software to facilitate monitoring. 8. Several other Parking Department deficiencies are addressed. SCOPE, OBJECTIVES, AND METHODOLOGY The scope of this audit included an examination of the procedures and controls over the City's collection processes for administrative towing fees, controls/oversight of towing companies' activities and their compliance with selected terms set forth in the Towing Permits. The audit covered the period of October 1, 2017 through October 31, 2018 and it focused primarily on determining the Parking, Police and Finance Department's compliance with the following objectives: • To determine whether the City accurately and timely invoiced the two tow companies. • To determine whether the two towing companies' payments were received in full before the Towing Permits' established due dates. If not, determine whether late charges were accurately billed. • To determine whether tow complaints received were sufficiently and timely resolved. • To determine whether tested tow truck operators arrived within the twenty (20) minute established goal. Page 5 of 23 Page 336 of 1252 • To determine whether the City properly alternated between the two tow companies on all requested public tows. • To determine whether the two tow companies attained the required annual Business Tax Receipt certificates from the City. • To determine whether the two tow companies maintained the required insurance coverage. • To determine whether Police Department holds were properly documented in accordance with Section 6 of the Towing Permits. • Other procedures as deemed necessary. We conducted this audit in accordance with the office's Standard Operating Procedures. Those require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The audit methodology included the following: • Reviewed applicable provisions within the Towing Permits and Code of Ordinances, and City Standard Operating Procedures; • Interviewed and made inquiries of City and external companies' personnel in order to gain an understanding of the internal controls(relative to the operations of the towing services), assess control risk, and plan audit procedures; • Performed substantive testing consistent with the audit objectives, including but not limited to, examination of applicable transactions and records on a statistical and non-statistical sample basis; • Drew conclusions based on the results of testing, made corresponding recommendations, and obtained auditee responses and corrective action plans; and, • Other audit procedures as deemed necessary. FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES Finding #1: City Requested Tows were Not Properly Billed The Towing Permits detail the terms and conditions with which Beach Towing and Tremont Towing were to comply during the October 1, 2017 through October 31, 2018 audit period. One tested provision, Section 3, provides that the tow companies are to pay the City a monthly fee of $25 for tows of Miami Beach residents' vehicles and $30 for all other vehicles towed. Exceptions noted in the Towing Permits include Section 20, which requires the tow companies to provide emergency towing services for City vehicles at no charge, and Section 21 which requires them to pay the City $20 for every towed abandoned vehicle. a. Parking Department Requested Tows The Parking Department's Senior Management Analyst created an Excel spreadsheet based on a daily download of Law Enforcement Records Management System (LERMS) data for each Parking Department requested tow. This report contains such information as the sequential impounded vehicle number, the date/time that the vehicle was impounded, the location from which the vehicle was towed, the corresponding tow company used, the impounded vehicle's license plate and the reason it was impounded. Afterwards, Coin Room staff manually enter a detailed breakdown of all the individual amounts charged to each tow vehicle owner for storage fees, mileage charges, administrative fees, Page 6 of 23 Page 337 of 1252 after hours fees, labor to engage/tow vehicle fees, state sales taxes, among other entries into this spreadsheet. OIG staff verified that all the sequential impounded Parking Department vehicle numbers were properly accounted for in the spreadsheet. It was also noted that the spreadsheet contains scripted formulas that automatically calculate the amount to invoice each tow company following the end of each month. Although the reviewed formulas accurately calculated the amounts owed based on the data entered, they were not locked to help prevent someone from changing them. In addition, the tow companies were not billed when the Coin Room staff leaves the corresponding Excel cells blank because the supporting documentation is missing or incomplete. The following table provides a breakdown as to the corresponding number of unbilled tows for each month in the audit period based on the Parking Department's reviewed monthly Excel spreadsheets: Month(Year #of Unbilled Tows #of Unbilled Tows ; #of Unbilled Tows (Beach Towing) j (Tremont Towing) i (Total) October 2017 7 41 48 November 2017 9 28 ; 37 December 2017 f 20 M 69 I 89 January 2018 6 i 53 ! 59 February 2018 7 1 29 36 March 2018 11 37 48 April 2018 i 4 r 36 40 May 2018 i 7 I 31 i 38 June 2018 ' 4 39 43 July 2018 19 I 33 I 52 August 2018 9 ; 39 1 48 September 2018 10 36 46 October 2018 20 40 i 60 Total 1 133 511 644 When questioned, the Parking Department's Senior Management Analyst stated that the unbilled tows represent instances where the towed vehicles have not been picked up, junked or auctioned and the proper documentation was not submitted. Yet, Section 3 of the Towing Permits specifies that the City is to receive a monthly permit fee for each vehicle towed,which includes those where monies are collected from the customer, as well as those where the vehicle goes to the scrapyard or auction. Furthermore, the Parking Department had not followed up on these 644 blank or unbilled entries as of the beginning of this audit, so no monies would have been billed to the applicable tow company or paid to the City for any of these tows. OIG staff reviewed the applicable PES's body camera footage for the 25 unbilled towing slips that occurred between October 9th and October 22th, 2018, whereby it was verified that all the sampled unbilled tows occurred. However, it would be difficult and time consuming to try to determine whether any of these tows represent "no charge" or abandoned or Miami Beach resident, or all other(nonresidential) tows, and the actual amount to be billed and paid to the City (either SO, $20, $25 or$30 respectively)for each. During the 13-month audit period, it was determined that 94.49% of all tows were for nonresidents, 3.95%were for residents, 0.78% were for abandoned vehicles and 0.78%were for "no charge" vehicles (excluding the unbilled tows) based on the Excel spreadsheet billed entries. If this percentage distribution were to be applied to the unbilled towing entries, it would have resulted in an estimated total amount of$18,992 ($18,256 for nonresident vehicle Page 7 of 23 Page 338 of 1252 tows + $636 for resident vehicle tows + $100 for abandoned vehicle tows) being owed to the City. Of this total, Beach Towing would owe $3,922 and Tremont Towing would owe $15,070. Another option is to assume that all unbilled tows result in the maximum of$30 each owed to the City unless the applicable tow company's supporting documentation proves otherwise, as the calculated percentages above are continuously changing. If this option were to be applied for the data provided during the audit period, the City would be owed in total $19,320, which would be comprised of$3,990 for Beach Towing and $15,330 for Tremont Towing. This figure is only$328 different from the previous option($19,320-$18,992=$328)and is much simpler to calculate. Other testing performed identified a total of 75 instances in which the Parking Department incorrectly charged the tow companies twice for the same tow, resulting in a $2,135 total overbilling during the audit period. More specifically, Beach Towing was overbilled by$1,065 due to 37 duplicate billings and Tremont Towing was overbilled by $1,070 from 38 duplicate billings. This duplication occurred because there are two separate columns present on the Excel spreadsheet to classify whether the tow involves an abandoned vehicle ($20) or one of the other remaining charges ($25 or$30). As a result, Coin Room staff can mistakenly enter data in both columns and, as noted above, they did so for 0.31% of the total Parking Department requested tows ((37 + 38)/23,844). Lastly, a comparison of the total number of tows listed on the Parking Department's Excel spreadsheet and the Office Associate IV prepared monthly invoices identified the following monthly differences resulting in an $2,795 underbilling to Beach Towing: Month/Year j Monthly Invoice Excel ` Monthly Tows ' Tows Dollar Tows Count Spreadsheet Count Difference Tows Count i Difference October 2017 866 870 (4) ($120) November 2017 777 789 1 (12) ($350) December 2017 967 988 j (21) ($600) January 2018 ` 894 896 (2) ($55) { February 2018 _—L 833 } 836 (3) I ($90) March 2018 1,210 ! 1,226 (16) ($475) April 2018 891 902 (11) I (S300) May 2018 883 886 (3) ($90) June 2018 852 858 (6) ($150) July 2018 959 967 (8) ($235 August 2018 897 901 } (4) ($120) September 2018 841 846 (5) j ($150) I October 2018 i 852 854 - l (2) 1 (S60) I Total 11,722 { 11,819 f (97) ($2,795) i The same comparison for Tremont Towing identified the following monthly differences resulting in an $1,925 underbilling: Page 8 of 23 Page 339 of 1252 Month/Year ' Monthly Excel Monthly Tows Dollar Invoice Spreadsheet Tows Count , Difference Tows { Tows Count Difference ' ff Count j October 2017 841 842 _____(1 (S30) , November 2017 766 771 O ($155) December 2017 926 939 (13) ! ($385) January 2018 839 842 (3) ($90) February 2018 803 806 (3) f (S90) March 2018 1,199 1,210 (11) j ($265) April 2018 860 863 (3) {{' (S90) May 2018 864 867 I (3) ! ($90) fJune 2018 831 833 ! (2) ($55) I July 2018 936 ` 946 s (10) ($290) i August 2018 I 867 1 873 (6) (S175) September 2018 j 814 819 j (5) ($90) October 2018 843 847 I (4) 1 (S120L Total 11,389 11,458 ; (69) I (51,925) In total, Beach Towing would owe the City an estimated $5,652 ($3,922 in unbilled tows - $1,065 in duplicate overbillings + $2,795 resulting from differences in the number of tows when comparing the Excel spreadsheet with the actual invoices) for Parking Department requested tows occurring during the audit period. Whereas, Tremont Towing would owe the City an estimated $15,925 ($15,070 in unbilled tows-$1,070 in duplicate overbillings +$1,925 resulting from differences in the number of tows when comparing the Excel spreadsheet with the actual invoices)for Parking Department requested tows occurring during the audit period. Thus, the total owed to the City by both tow companies is an estimated amount of S21,577. b. Police Department Requested Tows The Police Department's VRO is tasked with ensuring that a VSR is received for each towed vehicle, and that necessary corrections are made and provided to the PSCU message center, CAD system, and any other system related to towed vehicles, among other responsibilities. As part of the VRO functions of the PEU, three Impound Vehicle Disposition Reports are generated monthly to account for all tows performed by each tow company. Impound vehicle disposition refers to the clearing status of vehicles entered into eAgent by a PSCU dispatcher. eAgent is law enforcement software that provides access to the Federal Bureau of Investigation's National Crime Information Center, which is an electronic clearinghouse of crime data that aids law enforcement agencies in the recovery of stolen property. Once the dispatcher has completed the search in eAgent and determined the status (e.g. stolen, not stolen) and ownership of the vehicle, a disposition category is assigned to the impounded vehicle in the City's CAD system to indicate whether the vehicle is cleared or had a hold assigned to it at the time of the tow. Shortly after the end of the month, a Property Evidence Technician (PET) is tasked with the billing of Police Department's requested tows, and the creating of monthly memorandums stating the total amount of tows to be billed to each tow tow company, which are later provided to the Finance Department for the corresponding monthly billing. To determine the accuracy of the towing companies' billings in accordance with the Towing Permits, and whether the number of tows billed reflected the number of tows found in LERMS, OIG staff requested a report of all tow numbers stored in LERMS for the audit period. Additionally, the monthly memorandums and the corresponding impound vehicle disposition reports were requested for each month of the audit period. The PET discussed the steps required to generate an impounded vehicle disposition report used to calculate the number of tows to be billed. In doing so, it was noted that only three out Page 9 of 23 Page 340 of 1252 of 11 possible disposition categories are used for the creation of the monthly impound vehicle disposition report. The PET stated that in a prior training, he was instructed to only select three specific disposition categories to account for all tows performed. OIG staff requested documentation to support this statement, but none was provided. The table shown below reconciles the information from both sources and provides the results of the comparison. OIG staff calculated that the tow companies were underbilled by a total of 126 tows(74 from Beach Towing+52 from Tremont Towing = 126)which amounted to$3,245 ($2,015 Beach Towing + $1,230 Tremont Towing = $3,245) owed to the City. Difference Between LERMS Data and Munis Data t Total Count of Total Sum of Amount Due Beach Towing Beach Towing (Tremont Towing ;Tremont Towing TowNumber to the Gty Difference in Tow Difference(LERMS- Difference In Tow {Difference(LERMS- Tow Count(LERMS- Total Difference(LERMS- Count(LERMS-Munis) Munis) (Count(LERMS-Munis)'Munis) Munis) Munis) 2017 21 $ 605.00 5 $ 50.00 26 $ 655.00 Oct 4 $ 105.00 1 $ 5.00 5 5 110.00 Nov 15 $ 445.00 5 $ 135.00 20 5 530.00 Dec 2 5 55.00 •1 5 (90.001 11 5 (35.00), 2013 53 $ 1,410.00 47 $ 1.180.00 1001 5 2,590.00 Jan 6 $ 155.00 5 5 9500 11 5 750001 Feb 4 $ 115.00 2 5 30.00 61 5 145.00 Mar 0,$ (25.00)j 2 $ 4500 215 2000 Apr 11$ 35.00 i 3 $ 85.00, 41$ 120.00 May 1 $ 25.00 1 51 5 15500 6 $ 183.03 Jun 10 5 755.00 111$ 295.00 _ 2V$ 550.00 I Jul 11 $ 31500 3 $ 60.00 141$ 375.00 Aug 1 S 5 145.00 91 5 235.00 141$ 380 00' Sep 3 $ 95.00 2 $ 45.00!5 5 140.00 Oct 12 $ 295.00 5 5 135.00 17 $ 430.00 Grand Total 74 5 . 2.015.00 52 $ 1.230.00 1261$ 3245.00 OIG staff determined that the permit fees per tow were not,billed in accordance with Sections 3 and 21 of the Towing Permits. The Police Department did not track instances in which the City is to receive less than the $30 maximum per towed vehicle(City vehicles=$0, abandoned vehicles = $20 and Miami Beach residents' vehicles = $25) during the audit period. Instead they continually assumed that all vehicles in their monthly reports forwarded to the Finance Department are to be billed at the $30 rate each except for one or at most two $25 resident tows during the audit period. Due to concerns about the completeness of the number of tows billed, impound vehicle disposition reports for all 11 categories were requested and a reconciliation of the number of tows stored in LERMS with the number of tows billed to both companies was performed for the audit period. The reconciliation included tows billed at either$30 for non-residents or$20 for abandoned vehicles; however, there was no means to determine the number of resident tows (billed at$25 each), since they are not documented by the Police Department's VRO. If the percentage of residential tows for Police Department requested tows was the same as for Parking Department requested tows during the audit period (3.95%), it was estimated that the tow companies may have been overbilled by the Police Department at $160 for Tremont Towing and $150 for Beach Towing for the 13-month period tested. It was noted that the billing discrepancies occurred due to the source of data used to compose the monthly billing memorandums, as they were not capturing all the different types of tows. The impound vehicle disposition reports used for the monthly billings provided limited tow counts contributing to the underbilled amounts mentioned above. Additionally, the absence of an analysis of the tow receipts to determine whether police tows are for residents, non- resident, or abandoned contributed further to the billing discrepancies. Lastly, police officers' reports filed by the PSCU are assigned a police case number along with an impound number in the City's CAD System for any corresponding tows requested. Page 10 of 23 Page 341 of 1252 However, police officers complete VSRs for tows by annotating the police case number and not the impound number associated with the tow. During our review, VSRs requested from the PSCU were provided when located; however, the PSCU advised that since all tow cases are filed by police case number, a physical search of police case files in the Records Division is required to view copies of VSRs and their corresponding tow receipts. Recommendations: The Parking Department Director should require as follows: a. The Office Associate IV should invoice Beach Towing $5,652 and Tremont Towing $15,925 for the identified net underbilling during the audit period, and perform a similar analysis of all billed amounts after October 31, 2018, to determine their accuracy; b. Designated staff should perform timely follow-up reviews to ensure that all blank or unbilled entries are accurately recorded in the Excel spreadsheet so that the proper amounts are billed to each tow company. If any blank or unbilled entries exist at the end of the month and have not been timely explained by the applicable tow company, then the Coin Room staff should assume that the transaction represents a $30 nonresidential tow; c. The Senior Management Analyst in charge of the invoicing process should: • lock the underlying Excel formulas so that they cannot be changed, and should also combine reporting whether the tow involves an abandoned, Miami Beach resident or non-resident vehicle into one column to help avoid the possibility of duplicates and overbillings; • verify that all sequential tow numbers are present each month and periodically review the spreadsheet's accuracy to ensure that the tow companies are accurately invoiced; • add a column in the Excel spreadsheet to record the time that the customer retrieved the vehicle to facilitate the City's review of storage and after-hours fees; • reconcile the number of tows billed each month to the Excel spreadsheet to confirm that the correct amounts are billed. The Police Chief should require that designated staff: a. Determine the optimal method to accurately calculate each month how many tows are to be billed: $30, $25, $20 or $0. Options to consider include maintaining an Excel spreadsheet similar to the one prepared by the Parking Department, highlighting abandoned and residential tows on the LERMS data report and attaching the system supporting documentation. b. List the vehicle impound number on the VSR to facilitate identification going forward and to expedite the reconciliation and billing process. Lastly, the Chief Financial Officer should instruct Finance Department personnel to invoice Beach Towing $1,865($2,015-$150)and Tremont Towing $1,170($1,230-$160)for unbilled permit fees owed to the City for Police Department requested tows performed between October 1, 2017 and October 31, 2018. Parking Department's Response: In December 2018, Parking Administration began an internal review of monthly tow invoice discrepancies dating back to October 2016. As a result of this review, 252 tows performed by Beach Towing were identified as unbilled resulting in a balance due of$7,835 owed to the City. Additionally, 722 tows performed by Tremont Towing were identified as unbilled resulting in a balance due of$21,780 owed to the City. in April 2019, Beach Towing was invoiced for their respective true-up balance due with iNV# 19738, payment towards this invoice and posted on May 16, 2019. In May 2019, Tremont Towing was invoiced for their respective true- up balance due with INV#20280 and payment towards this invoice posted on June 13, 2019. Finally, in March 2019 Parking Administration implemented quarterly towing true-up reviews Page 11 of 23 Page 342 of 1252 designed to reconcile delayed or undocumented towing records with the appropriate invoice classification outlined in the tow permit and to escalate missing supporting documentation to management. • As of February 2020, the cells and formulas included in the monthly tow Invoice excel workbooks for Tremont and Beach Towing are secured and password protected. Parking Department's Implementation Date: All action items related to these findings have been implemented. Police Department's Response: Entering a vehicle impound number on Police VSRs would not have any impact on reconciliation or billing and would only add an additional burden to officers in the field with no appreciable efficiency gained. All documentation for police cases are filed by case number. In no way does the Police Department want to start a parallel system organized by vehicle impound number.All Police VSRs are filed by police case number in the case file and available through the Records Management Unit. With regards to the billable amounts, this would require personnel to be present at the tow companies to confirm residency at the time of re/ease. Police Department's Implementation Date: None Finance Department's Response: Beach Towing and Tremont Towing were invoiced $2,015 and $1,230 respectively on 2/28/2019. Finance Department's Implementation Date: This was completed on 2/28/2019. Finding #2: Police Department Tow invoices were Prepared After the Designated Billing Dates and Contained Incorrect Due Dates Section 3 of the Towing Permits states "The City shall bill Permittee (Beach Towing and Tremont Towing), by the 10th of each month,for all tows occurring in the previous month. A late charge of$50.00, plus the greater of(i)eighteen percent(18%) interest per annum, or ii) the maximum rate allowable under Florida law, shall be assessed on all payments received after the 20th day of the billing month." Both Beach Towing and Tremont Towing are to receive two separate invoices each month from the City, one for Parking Department requested tows and one for Police Department requested tows. As a result, each tow company is to receive a total of 26 invoices from the City during the 13-month audit period. An Office Associate IV in the Parking Department prepared their monthly invoices while a Financial Analyst I in the Finance Department created the Police Department's requested invoices based on the information received. Testing found that both towing companies' Parking Department monthly invoices were prepared on the same day during the audit period. Similarly, the Financial Analyst i prepared the Police Department's monthly invoices on the same day. A review of the City's enterprise resource planning system (Munis) determined that fourteen of the 52 monthly billings (26 annual invoices x 2 towing companies) or 26.92% were prepared after Section 3's stated deadline of the 10th of each month. Page 12 of 23 Page 343 of 1252 More specifically, the Financial Analyst I prepared twelve of the 26 Police Department requested towing invoices or 46.15% after the due date ranging from a low of two days late for December 2017 to a high of 33 days late for November 2017. Testing could not determine the underlying reasons for their late preparation and whether the delays could be attributed to the Police Department, the Finance Department or both. Meanwhile, the Parking Department's Office Associate IV created both towing companies' invoices timely during the audit period except that invoices for November 2017 were prepared one day late. When notified, the Parking Department provided documentation showing that the Munis System was going through the fiscal year-end closing process; therefore, an actual invoice could not be processed until December 11. Consequently, the Office Associate IV contacted the tow companies via email explaining that the invoice would not be created until December 11, and they were provided with the amounts due for the month of November 2017. Given the circumstances, OIG staff concluded that the Parking Department properly handled this unforeseen delay, and therefore all tested 26 tow invoices were deemed to have been timely created. As stated in Section 3 of the Towing Permits, the corresponding payments are due by the 20th day of the same month or a $50 late charge plus interest shall be assessed at the specified rates. However, the reviewed Police Department towing invoices incorrectly listed a due date of 30 days from the billing date instead of the designated 20th day of the month for the invoices created by the Financial Analyst I. Consequently, OIG staff opted to use the 20th day of the month as the benchmark for all Parking Department requested tows and to accept the incorrect due date of thirty(30)days from the billing date as the due date for Police Department requested tows. In doing so, it was found that 25 of the 26 Parking Department invoiced payments (96.15%) were received timely from the towing companies. Only Tremont Towing's April 2018 payment was received two days after the stated May 20, 2018 due date for which the Parking Department's Office Associate IV properly billed $75.05 in interest, which was paid in full. Meanwhile, four of the tested 26 monthly Police Department requested tow invoices were paid after the stated due date. Tremont Towing's November 2017, December 2017, March 2018 and October 2018 payments were all received late ranging from a low of one day to a high of 26 days. Immediately upon being discovered by OIG staff, Tremont Towing was notified via email on January 8, 2019 that the October 2018 payment had not yet been remitted. Once notified, they sent their payment in full via wire transfer on the same day, preventing it from being even more delinquent than the 26 days. Lastly, total interest of $235.92 was not billed to Tremont Towing for the four late Police Department payments. Recommendations: a. The Police Chief should inform designated staff to timely calculate the amount to invoice each tow company and to forward this information to the applicable Financial Analyst I by the 7'h day of each month. b. The Chief Financial Officer should instruct the Financial Analyst I to timely prepare all Police Department requested towing invoices by the 10th day of each month. c. The Chief Financial Officer should instruct the Financial Analyst I that Police Department invoices should specify that the due date for the corresponding payment is the 20th day of the same month that it was billed. d. The Chief Financial Officer should instruct staff to monitor when the tow companies' monthly payments are received to determine their timeliness, if remitted after the due date, the corresponding late charge invoice of$50 plus 18% interest should be promptly prepared. Police Department's Response: Page 13 of 23 Page 344 of 1252 The Police Department does not bill or receive payments from the Tow Operators. The Police Department provides the Finance Department monthly towing data in a timely manner and they prepare and transmit bills and receive payments. The Police Department does not have staffing, training, or desire to be involved in billing or assessment of late fees and penalties to the Tow Operators. Our involvement in billing should remain limited to providing monthly data to the Finance Department. Police Department's implementation Date: None Finance Department's Response: The following are responses to Findings 2b; 2c, and 2d: Finding 2b: As a result of a change in procedures, all billings are invoiced prior to the 10th of each month. Finding 2c: All invoices identify the correct payment terms effective March 2019. Finding 2d: Quarterly, the Finance team will review the towing companies'payment history and will issue late fee invoices as applicable. Finance Department's Implementation Date: All have been implemented. Finding #3: Towing Permits Wording Revisions and Enhancements Needed City Commissions have approved Towing Permits exclusively with Beach Towing and Tremont Towing since at least their selection in response to City issued Request for Proposals No. 1-91/94 in 1991. In the years since, the Towing Permits have been revised as needed and new negotiated terms memorialized. Most likely because of these revisions and a lack of oversight, OIG staff noticed several sections that contained contradictory language and/or situations where current practices differed from the current Towing Permits, creating questions as to which was correct. Consequently, several meetings were held with the City Attorney's Office and Parking Department management to discuss these issues whereby a consensus was reached. An overview of these items plus other terms in which OIG staff recommends be clarified are listed below as their resolution could have a significant impact on the amounts charged to tow customers: a. Section 22(B) of the Towing Permits states as follows: Tow Rate Class "A" Tow Truck and Class °A" Car Carrier, including 1. First 30 minutes at the scene 5140.00 2. Unlocking door 3. Dropping/hooking up linkage 4. Wheel lift equipment 5. Use of dolly Conversely, Section22(H)(4) simply states "Dollies or Flatbed Services: 540.00" under "Special and additional charges". At OIG's request, the City Attorney's Office reviewed this Page 14 of 23 Page 345 of 1252 contradictory language concerning whether the usage of dollies is included in the $140 Class A hook-up fee or they are to be added as a separate $40 additional charge per Section 22(H)(4). In summary, the City Attorney's Office concluded that it was an inadvertent scriveners' error, so it was being properly charged as a separate line item by the tow companies during the audit period. b. Section 22(H)(3)of the Towing Permits states, "Administrative fee: $35.00 maximum per tow". However, it is not defined or addressed in any other sections of the Towing Permits, so OIG staff was unsure as to when it is to be charged to customers and how it differs from the $30 administrative charge. In actuality, testing found that Beach Towing and Tremont Towing charged this$35 administrative fee to 98.53%and 99.73%respectively to their tow customers. When questioned, the tow companies' representative in a January 23, 2019 email said that the administrative fee is assessed in connection with the administration of the towing program and compliance with the rules and regulations of the Towing Permits. c. Section 22(H)(6) of the Towing Permits states "An After-Hours Fee may be assessed for tows retrieved between the hours of 8:00 PM and 8:00 AM. $30.00". When reading this section, the wording appeared straightforward, meaning that the $30 fee would be applicable whenever the vehicle is retrieved by its owner any day between the hours of 8:00 PM and 8:00 AM. However, testing determined that both tow companies were charging this after- hours fee when vehicles are towed not only between 8:00 PM and 8:00 AM, but also from 8:00 PM Friday through 8:00 AM Monday (all weekend). Testing confirmed that these after-hours fees were consistently charged to customers based on this practice. Both Beach Towing and Tremont Towing included these fees on the Towing Bill of Rights disbursed to their customers and on the signage prominently displayed at their offices. As a result of charging the after-hours fee consistently throughout the weekend, the frequency in which the $30 fee is charged to their tow customers significantly increased. When questioned, Parking Department management said that they were aware that the after- hours fee was being charged all weekend. They continued to state that the Towing Permit's intent was to charge the after-hours fees for all vehicles retrieved by customers outside of normal business hours, which is from 8:00 PM till 8:00 AM Monday through Friday. OIG staff requested written documentation to determine the accuracy of these statements since they appeared to differ from Section 22(H)(6)'s stated terms. In response, the City Attorney's Office provided Resolution No. 2006-26100 which approved the Towing Permits with Beach Towing and Tremont Towing for the three-year period commencing on March 1, 2006 with a two-year option term at the sole discretion of the City. The attached January 11, 2006 Commission Memorandum stated the following "After Hrs Fee*$30(imposed Monday thru Friday from 8:00 p.m. to 8:00 a.m. and on weekends starting at 8:00 p.m. on Friday thru 8:00 a.m. on Monday". No other documentation could be found in the months that have transpired since to explain the more stringent wording 'in the current Towing Permits. The City Attorney's Office concurred that it would be logical to continue to apply this after-hours fee to all tows occurring between Friday 8:00pm and Monday 8:00am under the current Towing Permits. d. The Towing Bill of Rights disbursed to impounded vehicle owners and, on the signage, prominently displayed at their offices states that the "Towing companies must provide at least two options for payment: cash, money orders, travelers' checks or personal checks." This statement contradicts Section 23 of the Towing Permits which states, "Permittee shall accept the following as acceptable forms of payment: cash, travelers' checks, personal bank checks drawn on a bank in Miami-Dade, Broward, or Monroe Counties, or credit cards." Page 15 of 23 Page 346 of 1252 • Although the tow companies are compliant with the above section by not accepting debit and/or credit cards, a comprehensive report made by the Federal Reserve Bank of San Francisco' revealed that cash payments are third in line of preference, after debit and credit cards respectively, and that the preference for cash has decreased over the recent years. Moreover, the study illustrates that using cash as a payment instrument decreases significantly based on the purchase amount, from a 49% usage in transactions under $10 to barely 6% for transactions over $100. Furthermore, three of the 15 complaints (20%) examined during the audit period included grievances claiming that the tow companies accepted only cash payments. The City contracted with Walker Consultants who issued a report that was last revised on December 10, 2018 regarding the maximum allowable towing rates. Excluding Miami Beach, this report showed that seven (7)of the nine(9)studied cities and counties(77.78%)accepted either debit and/or credit cards. The seven(7)included Broward County, the City of Key West, the City of Miami, Monroe County, Pinellas County, Palm Beach County and Tampa. Conversely, the two cities that did not accept either debit and/or credit cards were Daytona Beach and Panama City Beach. e. Section 22(B) through (E) of the Towing Permits details the hook-up fees to be charged ranging from $140 for Class "A" tows to $200 for Class "D" tows. The hook-up fee is a standard charge that is typically levied against all towed vehicles. In summary, the Towing Permits require the applicable tow company to bill hook-up fees based on the class of the wrecker/tow trucks and/or car carrier as defined in Section 11 of the Towing Permits. A. Class "A" wreckers and slide back car carriers - commercially manufactured unit, with a rated capacity of not less than 10,000 pounds, GVW (gross vehicle weight) B. Class "B" wreckers - commercially manufactured units, with a rated capacity of not less than 18,000 pounds, GVW Class "B" slide back car carriers—commercially manufactured unit, with a rated capacity of not less than 20,000 pounds, GVW C. Class "C" wreckers — commercially manufactured unit, with a rated capacity of not less than 36,000 pounds, GVW The Towing Permits do not similarly define a Class "D" wrecker in the Towing Permits so it was assumed that it would contain a rated capacity of equal to or more than 36,000 pounds (the maximum weight limit for Class "C" wreckers). Furthermore, the Towing Permits state that hook-up fees are to be charged based on the capacity of the wrecker, regardless of the size of the vehicle. A legal opinion from the City Attorney's Office was requested to confirm this interpretation, and the following response was received: "The maximum allowable rate to be charged by Beach Towing Services, Inc. or Tremont Towing, Inc. (collectively, the "Towing Permittees") for any vehicle tow must be based upon, and solely depend on, the Gross Vehicle Weight ("GVW") of_the actual vehicle being towed, irrespective of the classification of the wrecker("A", "B", "C"or"D")which is utilized for the towing of said vehicle by the respective Towing Permittees. In other words, pursuant to the Towing Permits, there is no prohibition on the Towing Permittees employing a wrecker with a rating capacity greater than necessary to accomplish the tow of a particular vehicle. However, should the Towing Permittees utilize a wrecker with p rating capacity 1 http,:;/www.frbstorq/cashipublications/fed-notes1201 Mune/2019-binding-from-the-diary-ui consumer-DaYment- choice/ Page 16 of 23 Page 347 of 1252 greater than necessary to effectuate the tow of a particular vehicle (when a wrecker of a lesser rating capacity could safely carry out such tow), then the affected customer should only be charged based upon the rates set forth in the Towing Permits for the lowest rated (least expensive) wrecker class that could have been utilized to accomplish the tow based upon the towed vehicle's GVW." Recommendations: The City Administration and City Commission should consider that the next Towing Permits: • Be thoroughly reviewed to avoid any contradictory or confusing terms such as those mentioned above and to thoroughly define all terms and charges so that all parties can clearly determine whether they were charged correctly and/or were properly compensated. • Require both tow companies to accept debit and/or credit cards as a form of payment. Also, the Towing Permits and the Towing Bill of Rights need more clarity and should be in agreement. • Include financial penalties that either the City and/or the vehicle owner could levy against the tow companies in the event of verified overbillings. Parking Department's Response: The Administration will conduct a comprehensive review of all towing permit provisions and address any inconsistencies. Additionally, the Administration will develop and incorporate performance standards and related penalties in order to strengthen compliance of permit requirements. Parking Department's Implementation Date: The Administration will address any inconsistencies in the towing permits upon the completion of internal and external audits. Police Department's Response: The Police Department takes no position on the towing rates for the particular classes of vehicles. The burden should be on the Tow Operators to document their services correctly and penalties should be imposed if irregularities are found during audits. Police Department's Implementation Date: None Finding #4: Formal Complaint Logs are not Maintained Section 29 of the Towing Permits states "Any complaints received by the City concerning a violation by Permittee of Article V, Division 2, Sections 106-211 through 106-255 of the City Code, or these Administrative Rules and Regulations (including, without limitation, misconduct, excessive charges, poor business practices, damage to vehicles, etc.) shall be referred to the City's Chief of Police or to the City's Parking Director for investigation (depending on which City department originated the tow). The respective department shall use reasonable efforts to notify Permittee (whether verbally or in writing) of any such complaints (including the specific nature thereof) within five (5) business days from receipt of the complaint. The Permittee shall provide written explanation and information with respect to the particular complaint, within five (5) business days from notice by the City. Permittee's response shall include identification of any proposed resolutions(s) and corrective measure(s) to be taken. A written disposition of the complaint will be forwarded to the Permittee (and complainant) upon completion of the City's investigation. The City Manager reserves the right, in his sole discretion, to require Permittee to refund all or any portion of the towing fees to a complainant, as liquidated Page 17 of 23 Page 348 of 1252 damages, should the City rule in favor of the complainant. If there have been three (3) or more substantiated complaints filed with the City within a ninety (90) day period during the Permit term, the City Manager may suspend the Permit for a period of up to thirty(30) days, with no reduction in the Permit fee." When questioned, the City's Parking and Police Department staff both stated that they do not keep formal logs, but they assured OIG staff that they respond to and investigate all received complaints. In response, the Parking Department provided emails for nine public and private tow complaints received during the audit period. In reviewing these emails, it became evident that the information was incomplete. For example, the email chain provided did not always include the initial email containing the customer's original complaint, the reader cannot tell which • represent public or private tows, four of the seven pertinent Miami-Dade County complaints referenced below were not present, etc. Therefore, OIG staff could only perform test on the nine emails provided to determine if they were compliant with Section 29 of the Towing Permits. As a result,the Parking Department investigated five of the complaints, and it was concluded that they either had no merit or they were satisfactorily resolved between the two parties. More specifically, substantiated complaints on two public tows concerning Beach Towing were filed with the Parking Department on August 16, 2018 and September 21, 2018. Another substantiated Beach Towing complaint was received on November 1, 2018 by the Parking Department but based on the emails provided it cannot be determined whether it was a public tow or a private tow. If it was a public tow, then the City Manager was to have been notified to decide whether to suspend Beach Towing's permit in accordance with Section 20 of the Towing Permit. If it was a private tow, then no further action would be necessary. Nothing to date has been provided concerning the resolution of the remaining four received complaints from the Parking Department. OIG staff also contacted Miami-Dade County to determine the number of complaints that they have received and their corresponding resolution. They provided documentation showing that they had received nine complaints between May 1, 2018 and October 31, 2018. Of these complaints, two were closed by Miami-Dade County and the remaining seven were referred to the City's Parking Department for resolution as the County does not have applicable jurisdiction in Miami Beach. Three of the remaining Miami-Dade County complaints were included in the nine previously received from the City's Parking Department. One of these complaints, created on August 20, 2018 (issue #2018-7186), was found to have merit, as the customer attached camera footage from neighboring businesses confirming that a dolly or flatbed service was not used proving that they were wrongfully charged. This tow customer's persistence provided the basis for the Miami New Times Article dated August 23, 2018, entitled 'Miami Beach Cracks Down on Bogus Flatbed Fees From Towing Companies". Finally, documentation was provided showing that the last four complaints referred to the City's Parking Department by Miami-Dade County were investigated and were properly responded to. Recommendations: a. The Parking Department Director and the Police Chief should require that their designated staff maintain a formalized log that records all received complaints and documents whether timely resolution occurred in compliance with Section 29 of the Towing Permits. b. A City designated helpline and/or email address should be established to centralize and document all customer complaints to help ensure that they are timely investigated and resolved with the tow companies. c. The City Administration should revise the Towing Permits to specify a fixed, agreed upon Page 18 of 23 Page 349 of 1252 amount that is to be paid directly to the City by the applicable tow company to help offset City staff's wages for time spent in researching valid complaints as determined solely by the City. Parking Department's Response: The Parking Department will develop a Towing Log of Complaints (TLC) for tracking purposes, including a helpline. The incorporation of performance standards and related penalties shall serve to offset staff time expense related to researching valid complaints. Parking Department's Implementation Date: The Administration will incorporate these recommendations as a component of the towing permits. Implementation will be upon approval of the towing permits by the City Commission. Police Department's Response: Although, the Police Department does not investigate civil matters, complaints/calls for service are available via the CAD system and include a disposition. We respond to and investigate criminal matters, including all allegations of criminal conduct involving the Tow Operators. There is no designated staff able to receive, log, track, make notifications, or investigate civil matters related to tow disputes. Police already respond to dozens of calls each month related to towing and placing an additional administrative burden on patrol officers or other police staff to track and follow up with complaints and dispositions for what amount to civil or permitting matters would be unduly onerous. Police Department's Implementation Date: None Finding#5: Lack of Information to Determine Tow Response Times Section 14 of the Towing Permits states "Permittee shall respond to requests for tows within twenty (20) minutes of receipt of the request. In the event that Permittee cannot respond within twenty(20) minutes, it shall notify the requesting City party of the estimated time of delay and the reasons thereof, and the City shall have the option, at its sole discretion, to cancel the request and contact another Permittee, without cost and/or other liability to the Permittee to which the initial request for tow was directed." Testing found that the requested tow truck operator's arrival time is reported to the Parking Department's Dispatcher and is tracked in LERMS. In addition, OIG staff reviewed Parking Department Enforcement Officers' body camera footage of sampled tows from October 9 through October 22, 2018, whereby it was confirmed that all appeared to arrive within twenty(20)minutes in accordance with Section 14. A review of the Police Department's maintained documentation found that the tow truck operator's arrival time is not reported. Although police officers' body camera footage was similarly reviewed, it was more difficult to determine the tow trucks arrival time as the officers were more occupied with handling the situation (interviewing the individuals to determine how and why the traffic accident occurred, completing the required paperwork, arresting individuals when needed, among others). Where the footage allowed, it was determined that sampled Police Department tows satisfied the twenty-minute goal. Inquiries with Parking and Police Department staff found that they are not aware of any instances whereby the other tow company was contacted because the initial one did not arrive timely. In addition, it may result in a longer overall waiting period because the initial contacted company is most likely in transit and the newly contacted company must assign a tow truck operator which could take upwards of twenty minutes depending on availability. Page 19 of 23 Page 350 of 1252 Recommendations: No further action is necessary except that it is recommended that the tow truck operator's arrival time should be recorded on the VSR to help track compliance with the twenty-minute goal. If a trend forms and persists whereby one company is repeatedly not arriving timely, then it should be addressed with their management. Otherwise, the twenty-minute goal should not necessarily be strictly enforced as the objective is not to potentially have tow truck operators speeding and/or driving recklessly through the City's streets as they try to satisfy Section 14's terms. Finding #6: Lack of Information on Tow Companies not Alternating Based on inquiries with Parking Department management, Dispatchers are to manually alternate towing requests between the two companies as the process is not automated. If alternating companies are not followed at any given time, compensatory measures are to be taken to help ensure that an equal share of overall towing requests exists. For example, if Beach Towing inadvertently received two towing requests in a row, then Tremont Towing is to receive two in a row once the oversight is identified. Testing was performed to determine the number of tow requests alternating between the two companies for Parking Department requested tows. A total of 23,844 Parking Department requested tows (includes unbilled tows) recorded through the LERMS system were analyzed for the 13 months between October 1, 2017 and October 31, 2018. The corresponding results are presented below: Results Count Percentage Alternating: 23,474 98.45% Not Alternating: 369 ; 1.55% { Last in List(not able to be compared/Tremont) t 1 0.0% Total: 23,844 100.0% Results for"Not Alternating" Not Alternating - to the benefit of Tremont Towing: 169 0.71% Not Alternating- to the benefit of Beach Towing: 200 ! 0.84% Total for Tremont: 11,907 49.94% Total for Beach: 11,937 , 50.06% 1 Although no alternation occurred in 1.55% of the requested public tows, the subsequent breakdown showed that this difference was typically corrected. In summary, Beach Towing performed on a net basis, 15 more public tows than Tremont Towing (11,937 — 11,907 = 30/2 = 15) during the 13-month audit period ((23,474/2) + 200 — 15 = 11,922 x 2 companies = 23,844 total). This immaterial 0.0629% difference (15/23,844) was not investigated further as in some months one company had more tows and, in some months, the other company had more. Exhibit 2 below provides a graphical depiction of the percentage share of towing services assigned to each company per month. However, the Parking Department does not maintain any documentation indicating why one tow company was bypassed and why the other company received more tows. As the Dispatchers are to manually alternate towing requests between the two towing companies, there remains the possibility that more significant differences could exist either in previous periods not reviewed or in the future. Recommendations: The Parking Department Director should instruct its Dispatchers to document the reasons why one tow company received sequential tow requests over the other company. The Excel Page 20 of 23 Page 351 of 1252 spreadsheet prepared at month's end should indicate a maximum difference of one unless the underlying reasons are documented. If not, the current Dispatcher(s) should be notified so that the difference could be subsequently corrected to help avoid any potential disagreements. Parking Department's Response: The Parking Department Director will instruct Parking Dispatchers to document, on CADD, the reasons why one tow company received sequential tow requests over the other company. Parking Department's Implementation Date: This feature will be implemented on July 6, 2020. Finding #7: Lack of Oversight Concerning Insurance Coverage Section 4 of the Towing Permits specifies the required insurance coverage that is to be in full force and effect at all times throughout the term. A copy of Beach Towing and Tremont Towing's current insurance policies were requested and promptly received from the City's Parking Department. As it had not been previously reviewed by the City's Risk Management Division for sufficiency, OIG staff met with their staff on January 31, 2019 and the following deficiencies were identified: a. Neither tow company provided evidence that either workers' compensation coverage was maintained or had submitted a document stating that they have four or fewer employees and are not required to maintain this coverage. b. The City is not named as an additional insured in the "Description of Operations/ LocationsNehicles" section by either tow company. c. The certificate holder for Tremont Towing should be the City of Miami Beach and not a specific City department. Per City Resolution No. 2018-30244, the City contracted with Exigis, LLC to provide a certificate of insurance tracking system for contractors, firms or individuals doing business with the City to help ensure that they carry and maintain the appropriate levels of insurance. Neither towing companies' insurance coverage terms were provided to the Human Resources Department's Risk Management Division for uploading into the Exigis, LLC system to facilitate identifying any deficiencies. Recommendations: a. Going forward, Section 4's terms and both tow companies' insurance policies should be uploaded into the Exigis, LLC System to help ensure that they are compliant. b. The Parking Department Director and/or Police Chief should instruct their designated staff to periodically verify that Beach Towing and Tremont Towing maintain the required insurance coverage in accordance with the Towing Permits. Parking Department's Response: The Parking Department Director has coordinated the inclusion of the both towing permits in the Exigis, LLC System with the Procurement Department Director. Parking Department's Implementation Date The inclusion of both towing permits on the Exigis, LLC System has been completed. Police Department's Response: The Permit says that this needs to be filed with the City's Risk Manager. Police Department's Implementation Date: Page 21 of 23 Page 352 of 1252 None Finding #8: Several Noted Miscellaneous Parking Department Deficiencies The following miscellaneous shortcomings pertaining to the Parking Department were noted during testing: a. Standard Operating Procedures are beneficial as they serve as a benchmark to measure individuals' performance and as an instruction manual in the event employees are out of the office for whatever reason. The provided Parking Department's Standard Operating Procedures concerning towing are incomplete and too simplistic as they do not adequately detail employee's roles involved in the process. The electronic copy furnished was last revised on November 2014 and was not signed by the Parking Department Director. b. In the Miami New Times Article dated August 23, 2018 entitled "Miami Beach Cracks Down on Bogus Flatbed Fees From Towing Companies"article, Parking Department management stated that they informed both tow companies to only charge dollies or flatbed service fees if they were used in public view with a City agent present to verify that such equipment was utilized. However, testing found that the Parking Enforcement Specialists (PESs) present when the tows occur are not documenting the VSRs when the usage of the dollies and flatbed services are warranted. As the PESs do not subsequently review Beach Towing's actual charges to their customers, they would not be aware if any dollies and flatbed services fees charged are correct. Recommendations: The Parking Department Director should ensure that: a. The Parking Department's Standard Operating Procedures are updated to better depict current operations and they should be properly approved. b. The PESs present when vehicles are being towed should record the complete tows with their body cameras going forward to help resolve any future billing questions or complaints. They should also document on the VSRs when dollies or flatbed services are being used and when the tow truck operator enters the vehicle at the tow location. The next Towing Permits should include language stating that the corresponding tow companies should not invoice the associated dollies and flatbed services and/or labor to engage/tow fees to their customers unless the VSRs are noted as such. Parking Department's Response: a. The Parking Department Director had all related standard operating procedures updated and executed, including: Parking— Quarterly Tow invoice True-Up— 3/19/20 Parking—Monthly Tow Release Request—4/1/20 Parking— Monthly Tow Invoice— 5/21/20 b. PESs have been noting on the VSR as well as body camera footage any use of dollies or flatbed services since September 2018. The customer's invoice for dollies or flatbed services will be addressed in the revision and update of the towing permit provisions. Parking Department's Implementation Date: All miscellaneous deficiencies noted in Finding No. 8 were addressed and completed on the dates referenced above. EXIT CONFERENCE Page 22 of 23 Page 353 of 1252 As identified deficiencies were forwarded to the auditees during the audit process and an exit conference was previously held, another meeting was not deemed necessary. Instead, the draft report was sent via email to the auditees on June 23, 2020 and they were given 30 working days to provide their management responses in adherence to City Ordinance No. 2019-4239. The management responses received are included herein. pproved by: 411, O ios�h -ntorino, Inspector General Dat- Reviewed by: \AA-L. s.— Mark Coolidge, Chief Audito Date Completed by: 1(777 2-11/ZD2A° Norman Blaiot , y(9)of Auditor Date cc: Jimmy L. Morales, City Manager Eric Carpenter, Assistant City Manager Saul Frances, Parking Director Richard Clements, Police Chief John Woodruff, Chief Financial Officer Michael Smith, Human Resources Department Director Page 23 of 23 Page 354 of 1252 Exhibit "B-1" ��^ C r CtTY NIIL `� `‘Its �t�='' Joseph M. Centorino, Inspector General TO: Honorable Mayor and Members of the City Commission FROM: Joseph Centorino, Inspector General DATE: September 24, 2020 AUDIT: Tremont Towing, Inc. -Towing Audit OIG No. 20-19 PERIOD: October 1, 2017 to October 31, 2018 This report is the result of a request made by the City Administration in November 2018 for the then- existing Office of Internal Audit to verify compliance of Tremont Towing, Inc. (Tremont Towing) with selected provisions in the City of Miami Beach Administrative Rules and Regulations For Police and Parking Towing Permits (Towing Permits) that were in effect during the audit period. An entrance conference meeting was held in December 2018 with Tremont Towing management to explain the audit process, to gain an understanding of their operations and to obtain copies of any relevant documents. Although the reviewed Towing Permits contain a myriad of points that require compliance from Tremont Towing, Office of the Inspector General (OIG) staff concentrated its testing primarily on the accuracy of the City's monthly billings and the amounts charged to tested tow customers. To help achieve these objectives, we reviewed the provided Standard Operating Procedures, work performed, available body camera footage, documentation received from the City's Parking, Police and/or Finance Departments, as well as copies of the Vehicle Storage Receipts received from Tremont Towing. As this audit was nearing completion, the City Commission voted in favor of terminating the internal audit at its June 5, 2019 meeting, and approval was granted for an outside audit of the tow companies. At that time all internal audit work was immediately suspended. The audit was subsequently re- visited at the January 15, 2020 Commission meeting wherein it was acknowledged by the Commission that the newly created Office of Inspector General, as an independent agency, had the authority to conclude the audit or to take such further action within its authority as it deemed necessary. Consequently, the audit was resumed and has resulted in the issuance of three separate audit reports, including this one. The other two audit reports consist of testing performed relative to Beach Towing Services, Inc. (Beach Towing) and of the City departments, Parking and Police, involved in the towing process. Although the work performed was reported separately, there may be some overlap in the three reports, as noted shortcomings may involve more than one of the parties involved. ACRONYMS CAD = Computer Aided Dispatch GVW= Gross Vehicle Weight (Rating) LERMS = Law Enforcement Records Management System VSR = Vehicle Storage Receipts Page 355 of 1252 INTRODUCTION Chapter 106, Article V, of the Miami Beach City Code, provides for the issuance of towing permits for the towing of vehicles identified by the City's Parking and Police Departments as requiring removal from public and private property, as well as vehicle impoundments. The same two tow companies, Beach Towing and Tremont Towing, have continued to operate exclusively in Miami Beach since at least their selection based on their response to Request for Proposals No. 1-91/94. The negotiated towing permits for the two companies have been revised as needed in the following years. More recently, City Resolution 2015-28918 was adopted on February 11, 2015 approving the issuance of new Towing Permits to Beach Towing and to Tremont Towing for a three-year term commencing on March 1, 2015 and expiring on February 28, 2018. Both companies' terms were extended for an additional one year through February 28, 2019 with the passage of City Resolution No. 2018-30161. Next, the City Commission on December 12, 2019, approved a one-year extension for both tow companies of the same terms with a reduction of their charged automated teller machine fees. Although this extension expired in February 2020, Tremont Towing is currently continuing to operate on a month-to-month basis under its terms. OVERALL OPINION Among other tests performed, OIG staff conducted a data analysis of all requested public tows occurring between October 1, 2017 and October 31, 2018, whereby selected supporting documentation as well as Parking and Police Department body camera footage for tested days was reviewed to determine whether the tow fees charged by Tremont Towing were appropriate. Throughout the audit process, communication was also maintained with the tow company's representatives to request additional information and/or documentation. However, the received responses were not always sufficient to clarify the perceived shortcomings. Although the data obtained from its sample results was not extrapolated to draw conclusions on a larger scale to the population, the outcomes from the audit process stated in this report suggest that the tow companies need stronger oversight. OIG staff believes that the Towing Permits need revision to help improve accountability and to better ensure that individuals are being properly charged for public tows. Examples include, but are not limited to, placing more responsibility on the tow companies to justify charges to individuals whose vehicles are towed, better defining listed terms, clarifying any identified ambiguities, and more clearly defining the roles of all parties. Without making these and other needed revisions to the Towing Permits, the deficiencies noted in this audit report will most likely continue and tow customers will have little recourse. It is recommended that future Towing Permits include language requiring each tow company to provide vehicle owners with photographic evidence of the impounded vehicles on dollies/flatbeds and/or the vehicle's doors needing to be opened by towing company personnel at the tow locations, to support any corresponding charges. This requirement would permit the consumers of tow services to determine the validity of the charges at the time they retrieve their vehicles and to question any discrepancies. Once the owners leave the scene, it becomes less likely that discrepancies will be noted or refunds retrieved, particularly by out-of-town vehicle owners. Furthermore, the Parking Department employees present for all Tremont Towing's Parking Department public tows should function more as consumer and City advocates, since they are Page 2 of 22 Page 356 of 1252 present at each tow location and can verify whether dollies Jr flatbed services were used or whether the tow truck operators entered the vehicles through entries on the Vehicle Storage Receipts (VSRs). Any subsequently identified unsubstantiated charges should be promptly refunded to the consumers and/or financial penalties imposed on the tow companies by the City. For example, Broward County's Code of Ordinances Section 81/2 - 16(b) titled "Violations of Towing and Immobilization Regulations" lists several violations (charging more than the allowable maximum towing and immobilization rate, failure to maintain records for the required period, failing to accept all mandated methods of payment, among others) whereby the first violation results in a $250 fine per violation, which increases to $500 for any repeat violations. Meanwhile, City of Miami City Code Section 42-109 states that a "person who charges a vehicle owner a towing or storage charge in excess of the rate described herein is liable to the vehicle owner for three times the amount charged." Conversely, Miami Beach's Towing Permits and City Code remain relatively silent on this issue, and there are currently minimal consequences for proven non-compliance. Although several sections of the Towing Permits stipulate the City's right to suspend or terminate the permit if certain violations are incurred by permittees, enforcing such action could jeopardize tow service in the City, as only two companies are presently authorized to operate within the City's boundaries. Therefore, OIG staff believes that the City Commission should consider the possibility of expanding the tow market to include additional companies that would be required to operate a tow yard within a designated distance from the City's boundaries. If approved, this expansion would allow the City to impose a suspension or a termination of the agreement on a company without adversely affecting the availability of towing services. Alternatively, the City could elect to put the towing service out to bid to at least force the two current permit holders to compete for the City's towing operation. Another option would be the in-sourcing of towing operations to be managed by the City or by a designated entity under greater City control. Despite the potentially high set-up costs with purchasing/leasing of wreckers/tow trucks, hiring/training staff, and preparing the location, there could be associated benefits including better control over operations and increased City revenues, as well as more transparency and oversight capability. Although it was not provided to OIG staff because the footage was only kept for 30 days before it was automatically recorded over, Tremont Towing is commended for having selected staff worn body cameras prior to the beginning of this audit. Conversely, Beach Towing opted not to follow Tremont Towing's proactive approach and purchase body cameras for their employees. If required in the next negotiated Towing Permits, this audiovisual evidence could be provided to their tow customers and the City as corroboration for the charging of dollies or flatbed services, labor to engage/tow fees, etc. The following shortcomings were noted during testing that require corrective action: 1. 12 of 20 sampled Tremont Towing customers were overcharged for dollies or flatbed services during the fourteen-day period of October 9, 2018 through October 22, 2018 as such equipment was not used at the tow locations, based on a review of available Parking Department body camera footage. Therefore, it was concluded that these 12 customers were overcharged by a total of$480 ($40 x 12 = $480). 2. Tremont Towing overcharged 16 Class "B", four Class "C" and five Class "D" vehicle owners hook-up fees of the 42 reviewed (59.52%) based on an analysis of their gross vehicle weight ratings and other provided documentation. 3. Tremont Towing overcharged its customers labor to engage/tow fees for 12 of the 25 tows sampled in October 2018 based upon a review of Parking and Police Department body camera footage. As the tow operators were not observed accessing the vehicles at the tow location, it was concluded that these 12 customers were overcharged by a total of$360 ($30 x 12 = $360). 4. The times that vehicles were impounded and/or released to their owners were not always Page 3 of 22 Page 357 of 1252 indicated on the tow invoices; and one of the 22 tested retrieved vehicles waF incorrectly charged storage fees. 5. The amounts charged and collected by Tremont Towing for state sales taxes on administrative and/or storage fees for Police Department requested tows does not appear to be necessary based on a review of the State Statutes and Florida Department of Revenue Law Library Technical Assistance Advisement(TAA)— 103463 with the City Attorney's Office. 6. Tremont Towing did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits. 7. Tremont Towing's furnished invoices contained two separate line items that contradicted the language in the Towing Permits. SCOPE, OBJECTIVES, AND METHODOLOGY The scope of this audit was to determine Tremont Towing's compliance with selected terms set forth in the corresponding Towing Permits. The audit covered the period of October 1, 2017 through October 31, 2018, and it focused primarily on determining Tremont Towing's compliance with the following objectives: • To determine whether vehicle owners were charged in accordance to the rates specified in the Towing Permits and in conformity with the services received. • To determine whether the required annual Business Tax Receipt Certificates were obtained. • To determine whether the required insurance coverage was maintained. • Other procedures as deemed necessary. This audit was conducted in accordance with the office's approved Standard Operating Procedures. Those require that we plan and perform the audit to obtain sufficient evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The audit methodology included the following: • Review of applicable provisions within the City Charter and Code of Ordinances, and City Standard Operating Procedures; • Interviews and inquiries of City and external companies' personnel in order to gain an understanding of the internal controls (relative to the operations of the tow services), assess control risk, and plan audit procedures; • Performance of substantive testing consistent with the audit objectives, including but not limited to, examination of applicable transactions and records on a statistical and non- statistical sample basis; • Drawing conclusions based on the results of testing with corresponding recommendations, and obtaining auditee responses and corrective action plans; and, • Performance of other audit procedures as deemed necessary. FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES The information provided below is relevant for the first four findings, as it represents the criteria for OIG staff's testing of sampled customer charges. Per Section 22 of the Towing Permits, Tremont Towing shall not charge more than the following maximum allowable rates established by the City Permit (as same may be amended from time to time): A The first eight hours of storage shall be without charge. Thereafter the following storage rates Page 4 of 22 Page 358 of 1252 shall apply per day: 1 Inside-Interior a Motorcycles or Scooters S12 b Any vehicle less than 20 feet in length and eight feet in width $30 c Any vehicle over 20 feet in length $40 2 Outside-Exterior a Motorcycles or Scooters $10 b Any vehicle less than 20 feet in length and eight feet in width $30 c Any vehicle over 20 feet in length $30 3 Boat and Trailer(Owner's Unit) a Unit under 20 feet in length $20 b Unit 21 feet to 35 feet in length $35 c Unit over 35 feet in length $45 B Tow Rate Class "A" Tow Truck and Class "A" Car Carrier $140 C Class "B"Tow Truck $145 D Class "C"Tow Truck $175 E Class "D"Tow Truck $200 F Tow Rate Class "B" or"C" Car Carrier $125 G Use of Contractor's Boat Trailer, any length, including storage, per day: 1 Trailer up to 18 feet in length $50 2 Trailer 18 to 30 feet in length $75 3 Trailer over 30 feet in length $150 H Additional charges: 1 Extra labor or extra waiting time $16.50 per hour after the first 30 minutes at the scene and prorated after the 1st hour in 15 minutes increments. 2 Mileage Charges $6 per mile, maximum of$42 per tow. 3 Administrative fee $35 maximum per tow. 4 Dollies or Flatbed Services $40 5 Labor to Engage/Tow (this is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow vehicle.) $30 6 After Hour Fee (may be assessed for tows retrieved between the hours of 8:00 PM and 8:00 AM.) $30 A maximum administrative charge, different from the administrative fees mentioned above in Section 22(H)(3), not exceeding $30 (and not as an automatic "add-on", but only when required to comply with Florida Statutes) may be imposed by the permittee for services such as the processing of paperwork, clerical work, or title research. Administrative charges are defined as costs associated with verification of a vehicle identification number; search of vehicle for ownership information; preparation of paperwork required by Florida Statutes; preparation and mailing of the notification letter(s); and preparation of vehicles for auction (including notification to owner or lien holder). Administrative charges shall not be imposed on vehicles with a "police hold" until or unless the hold is removed. Storage for City (confiscated)vehicles with "police holds" is free of charge to the City. These maximum allowable rates mentioned above shall not apply to City of Miami Beach residents (such exemptions) for City of Miami Beach residents shall hereinafter be referred to as the "Miami Beach resident discount"). To be eligible for this resident discount, individuals must provide proof of residency within the City of Miami Beach, and their driver's license information must match the registration information of the vehicle being towed. The permittee shall maintain a log documenting discounts given to City residents pursuant to the Miami Beach resident discount, which log shall be available for inspection and copying by the City Manager or his designee, upon request. The permittee shall prominently post a sign displaying the maximum allowable rates for both City and non- City residents within the area(s) on its premises designated for the vehicle owner or his agent to transact business. Page 5 of 22 Page 359 of 1252 Parking Department vs. Police Department Requested Tows In total, the Law Enforcement Records Management System (LERMS) showed that there were 23,844 (90.96%) Parking Department requested tows and 2,371 (9.04%) Police Department requested tows during the 13-month audit period. The Parking Department has established a process whereby their Coin Room staff manually enter into monthly Excel spreadsheets a detailed breakdown of all the individual amounts charged to each towed vehicle owner by the tow company, which includes, among others, storage fees, mileage charges, administrative fees, after-hours fees, labor to engage/tow vehicle fees, and state sales taxes. Conversely, the Police Department has not established a similar process for documenting the individual amounts charged to each towed vehicle owner. Police Department's designated employees enter limited information from the VSR that are received from the tow companies into the Computer Aided Dispatch (CAD) System for the release of the vehicles before they are forwarded to the Records Section for filing. Shortly after the month's end, a CAD System report is generated of all recorded Police Department requested tows which is forwarded to the City's Finance Department for billing. The detailed monthly Excel spreadsheets enabled OIG staff to perform a wide range of analyses on the Parking Department's requested public tows. Similar information is not readily available for the Police Department's requested tows, which only comprised 9.04% of the total tows. Therefore, their tows were typically excluded from further analysis, but there is no basis upon which to believe that analysis of those tows would differ from those of the Parking Department. As the information in these Excel spreadsheets was entered through a manual data entry process, a quality control test was performed to assess their reliability. All 350 tows performed by both tow companies in a randomly selected 7-day period occurring between October 9, 2018 and October 15, 2018 were reviewed. The corresponding data present in 2,450 entry fields (7 fields x 350 tows) in the spreadsheets was compared to the applicable storage receipts and/or invoices so that any identified inaccuracies could be quantified. When completed, it was determined that only 16 of the entries contained errors or 0.65%(16/2,450),which means that the accuracy rate was 99.35%((2,450 —16)/2,450). Based on these results, OIG staff relied on the monthly spreadsheets data in performing various analyses for the audit period. Alternating Tows Parking Department management stated that Dispatchers are to manually alternate tow requests between the two companies. If that practice is not followed at any given time, compensatory measures are to be taken to ensure that an equal share of overall tow requests is maintained. For example, if Tremont Towing inadvertently receives two consecutive tow requests, then Beach Towing is to receive two successive tows once the oversight is identified. The 23,844 Parking Department requested tows recorded through the LERMS database were analyzed for the 13-month audit period for which the corresponding results are presented in Exhibit 1 below: Exhibit 1 Results Number Percentage Alternating: 123,474 1 98.45% Not Alternating: — 369 f 1.55% Last in List (not able to be compared/Tremont) 1 � 0.00 Total: 23,844 100.00% Results for"Not Alternating" Not Alternating - to the benefit of Tremont Towing: 169 0.71% Not Alternating -to the benefit of Beach Towing: j 200 ; 0.84% Page 6 of 22 Page 360 of 1252 ii Total for Tremont: 11,907 49.94% Total for Beach: 11$37 1 50.06% I • Although no alternation occurred in 1.55% of the requested public tows, the subsequent breakdown showed that this difference was typically corrected. In summary, Beach Towing performed on a net basis only 15 more public tows than Tremont Towing (11,937 — 11,907 = 30/2 = 15) during the 13- month audit period ((23,474/2) + 200 — 15 = 11,922 x 2 companies = 23,844 total). This immaterial 0.0629% difference (15/23,844) was not investigated further. Exhibit 2 below provides a graphical depiction of the percentage share of tow services assigned to each company per month. Exhibit 2 - Share of Towing Services Provided- Percentage Comparison a Beach Iawe:g fl 7re•nant Tawtn6 E 50406% 50.05% 50.02% 50.25% 50.15% 50.04% 50.17% 49.97% 49.97% 50.28% 50.03% 50.09% 49.65% ..50k 40 4Y % r to 4"46IT f5 11TH 4:8Wi_ 0 03_: 50U3' M172. [92.4 91 5 34t _ 3i. iZ - is - ] ;i x' i ;' - Ioct NOV I DEC I IAN l FED I MAR I APR ) MAY s I JUN1 IUL+ I AUG I Sgt; r Da )S 2.017 2018 I i Revenue Comparison The information in the Parking Department's prepared monthly Excel spreadsheets includes the total amounts paid by each tow customer. OIG staff used this information to perform a revenue comparison (Exhibit 3 graphically and Exhibit 4 numerically) between the two towing companies, with the following results: • The average rounded amount paid by customers per tow was $255.45 which consisted of an average of$268.60 for Beach Towing and $242.27 for Tremont Towing. • Beach Towing's billings exceeded Tremont Towing's by $321,532 or by an average of 11.1% for the 13-month audit period. • The percentage difference decreased to 3.7% for the last two months reviewed (September 2018 and October 2018)from 12.4% for the first 11 months (October 2017 through August 2018). Exhibit 3 Revenue Share- Percentage Comparison a Beach Towing -,Tremont Towing 60% 53.7"6 56.0X .SLB%. .. 53.346 52.4% 52.9*; 53.2M .52.6%. 522X 52.7% 51.744 50.9%.` 50:9"6._ _ _.. 44y'h 4, 4E'X 4 11: IT i3 L 4. .i.! " �":i64s , 1Iii 1 t .F c k ' ' .:i !t i< ` L A ,,i € OCT NOV DEC IAN FEB MAR APR MAY JUN JUL AUG SEP OCT 2017 2018 ff • Page 7 of 22 Page 361 of 1252 Exhibit 4 Adjusted Total %Gap Between Beach Towing Tremont Towing Grand Total Difference Revenues - 2017 Oct $239,026 $213,975 $453,001 $25,051 11.7% Nov $220,967 $190,249 $411,216 $30,718 16.1% Dec $274,832 $234,259 $509,090 $40,573 17.3% 7'2018 L. Jan $249,688 $219,066 $468,754 $30,623 14.0% - -C Feb $231,184 $209,961 $441,145 $21,224 10.1% CU Mar $344,078 $306,815 $650,893 $37,262 12.1% C Apr $248,444 $218,940 $467,384 $29,504 13.5% May $244,312 $219,797 $464,109 $24,515 11.2% CC Jun $230,744 $206,690 $437,434 $24,054 11.6% Jul $265,823 $238,445 $504,268 $27,378 11.5° Aug $233,677 $218,266 $451,944 $15,4117.1% Sep $209,929 $202,106 $412,036 $7,823 3.9% Oct $213,566 $206,169 $419,735 $7,397 i 3.6% Grand Total $3,206,271 $2,884,738 $6,091,009 $321,532 Average Difference for the 13-month period: 11.1% Average Difference for the initial 11-month period: 12.4% Average Difference for the last 2-month period:; 3.7% Average amount paid by Beach Towing's customers: $268.60 Average amount paid by Tremont Towing's customers: $242.27 Average amount paid by customers: $255.45 More specific testing was performed to determine the difference in the frequency of fees, established in the Maximum Allowable Rates per Section 22 of the Towing Permits, such as hook-up fees, storage fees, state sales taxes, dollies or flatbed service fees, labor to engage/tow fees, after-hour fees, etc. levied per tow. The data showed that both companies appear to be relatively consistent with the frequency in which the fees were applied, except for the dollies or flatbed services fee (61.81% for Beach Towing compared to 9.79% for Tremont Towing) as shown in Exhibit 5 below. Exhibit 5 Frequency of Additional Charges for Every Hook-up Fee ' ' Admin 4•, labor ., Milt;age% Alt?v Hou: - Dotty 5 Storage S(;CCIJI R Bea_, 91a, 99:" a ',: 62% 62'. 18"s _ >. D'rernont iOO' 99''_ 1,0+9',4 61;: 10 .. 14•: Page 8 of 22 Page 362 of 1252 Upon interviewing key personnel, reviewing the Parking and Police Department's body camera footage, as well as other furnished supporting documentation, and covertly observing several tows in January and February 2019, the following shortcomings were identified: Finding #1: Customers Were Overcharged for Dollies or Flatbed Services Fees Not Rendered at the Tow Locations Dollies or flatbed services are required to transport all-wheel drive vehicles(so as not to damage their transmissions), or when the vehicles' wheels will not roll properly for some reason. To help compensate Tremont Towing for the additional time needed to install the dollies or the additional expense in using flatbeds, Section 22(H)4 of the Towing Permits allows for an additional $40 fee to be charged to its customers in these instances. The following picture shows the usage of a dolly on a vehicle being pulled by a tow truck. , ,8 ,,, rm._ 1 _ . 0 -- 941.11111P. 11 Q 7 Alpi s dp if el> „..., ..,,,, ,, k , 1, , "- ---•--7_� - j.�t -.r • - 141111"1"11041 Exhibits 6 and 7 below provide a comparative analysis of the number of times that dollies or flatbed services were charged for each month of the audit period by tow company and the corresponding amount of fees charged. As a result, it was found that Beach Towing charged the corresponding $40 fee approximately 650% more frequently Tremont Towing (7,179 compared to 1,106). However, the difference became much smaller in September 2018(34 charges for Beach Towing vs. 29 for Tremont Towing) and October 2018 (62 charges for Beach Towing vs. 46 for Tremont Towing). It was also noted that the number of times that the dollies or flatbed services were charged decreased from an average of 644 times per month for October 2017 through August 2018 to 48 times per month for September and October 2018. This difference represents an estimated $258,870 (see Exhibit 8 below) additional amount in dollies or flatbed services charges, when the initial eleven-month period (October 2017—August 2018) is compared to the subsequent two-month period (September 2018— October 2018). Page 9 of 22 Page 363 of 1252 Exhibit 6 Dollies or Flatbed Services Charges uUtilization Comparison - oo • . _. . ._ __.... . I , ... s ... . •. A„ _. ..__. _________________ _. _ ..,, „ ,• X? q --1___ ;1 i;-; - in-- .7-,-,:-:-;;;J:liii„._-_. , Oa36., 66. '6. D.,. 'm. t.musry 7.Mu4d► Marc; 6,.4 May A.4 WT 604D14 SeNr^54/ OM S3 i 2617 2016 _ ' .tadSta:N 444670 m 671 627 II TO 644 642 SM . INNI 74 42 .:le Award 134.444', lib 74 ...68 iu 66 126 fl 14 101 tm _Sl l.. .-20- .. Exhibit 6's vertical axis represents the number of times that dollies or flatbed services were charged. The horizontal axis is the month in which dollies or flatbed services were charged during the audit period. The numerical figures below each month represent the total number of times that dollies or flatbed services were charged during that month by each tow company.Beach Towing is represented by the blue color bars;while Tremont Towing is represented by the orange color bars. Exhibit 7 _ _ 13fBeach Towing . Tremont Towing , 'Total#of Charges Total Amount - of_Charges _._ _Amount #of Charges Amount , -'2017 October 604 $24,155 106 34,200 710 $28,355 ' November 570 $22,790 74 $2,940 644 $25,730 C December 725 $28,985 96 $3,820 821 $32,805 05 -2016 N ._ January 675 526,980 112 $4,440 787 331,420 February 627 $25,065 69 $2,760 696 $27,825 March 870 $34,755 121 $4,820 991 $39,575 O . 0 April 646 $25,810 81 $3,220 727 $29,030 " May 643 $25,659 108 $4,290 751 $29,949 June 584 $23,335 101 $4,005 685 $27,340 OJ `4. July 698 $27,880 105 $4,165 803 $32,045 UAugust 441 $17,615 58 52,310 499 $19,925 September 34 51,350 29 31,155 63 $2,505 October 62 $2,480 46 $1,835 108 $4,315 Grand Total 7,179 $286,859 1,106 $43,960 8,285 $330,819 Exhibit 7 displays the number of dollies or flatbed services charged per month and the corresponding amounts charged to tow customers. Amounts shown were compiled using solely dollies or flatbed services charged, $40 for non-residents and 635 for residents,and do not include any other tow charges. Page 10 of 22 Page 364 of 1252 Exhibit 8 _ _ Tremont Towing (8)Average (C)Average Impounded %of Dolly Charges Impounded Vehicles Charged with a to Impounded Vehicles Dolly Fee Vehicles(C/B) 885 94 11% Monthly Average from Oct 2017 through August 2018(11 months) Monthly Average from Sept 2018 through Oct 2018(2 months) 830 5% • (A)Average Monthly Number of Additional Dolly Charges When Compared the Initial Eleven-Month Period(Oct/17-Aug/18)to the Subsequent Two Month Period(Sep/1B-Oct/18) `r Estimated Additional Number of Dolly Charges for the Initial 619 Eleven-Month Period(A x 11) $40/$35 Dolly Rates(Nonresident/Resident) Estimated Additional Amount of Dolly Charges for the Initial Eleven-Month Period,Applying Percentages for Residents and $ 24,426 'Nonresidents and Abandoned. ((6,555 x(94.49%+0.78%)x$40+(6,555 x(3.95%x$35)) } Exhibit 8 shows the monthly rounded averages of impounded vehicles and dollies or flatbed services (abbreviated as dolly above)charged and the percentage of the impounded vehicles that were charged dollies or flatbed services for the first eleven- months(gold fill)and the final two-months of the audit period(light green fill).Additionally, the rounded difference between the eleven-months average dollies or flatbed services charged and the two-month average of the same fee,was calculated. A Miami New Times Article dated August 16, 2018 entitled "Beach Towing Tacks on Bogus "Flatbed" Fees, South Beach Driver Says"' discussed the apparent overcharging of the dollies or flatbed services fee to a Beach Towing customer. A follow-up Miami New Times article dated August 23, 2018 and entitled "Miami Beach Cracks Down on Bogus Flatbed Fees From Towing Companies`2 commented that the Parking Department management informed both tow companies to charge dollies or flatbed services fees only if they were used in public view with a City agent present. OIG staffs subsequent analysis determined that although Tremont Towing's number of charged dollies or flatbed services fees remained relatively constant from mid-August 2018 through October 2018, Beach Towing's corresponding fees significantly decreased. When both tow companies' shared representative was questioned as to the reasons for Beach Towing's decrease, he responded by email as follows:: "....on August 17, 2018 both companies voluntarily agreed not to assess flatbed/dolly fees unless a City agent is present to notate the use of such equipment at the originating site of the tow. As previously explained, dollies/flatbeds are not always used at the initiation of the tow. This was a temporary and good faith proffer to avoid any confusion or misperception regarding the assessment of such fees due to inaccurate reporting by the media. It was both companies intention to address this temporary and voluntary practice with the City Commission when the towing permits were renewed in December 2018, but the opportunity did not present itself. it is both companies intention to revisit this matter with staff and/or the City Commission in the near future. In sum, both companies are still using flatbeds/dollies consistent with their historical practices;however, they are voluntarily waiving the flatbed/dolly fees for tows where a City agent is not present to notate the use of such equipment." OIG staff contacted the tow companies representative and the City's Parking Director to determine the date that both parties mutually agreed to terminate this practice, but no documentation was received. Consequently, it was assumed that this practice remained in effect at least until the December 2018 City Commission meeting based on the above email. 1. m,2rri.rem:mes comicontenilpnnmew.vr'10632612 2 .htips:ily^.+r, m.iam;rewt:mes.cc-rn:'contentiprtniViev:11Uo49222. Page 11 of 22 Page 365 of 1252 Next, OIG staff reviewed all Parking Department tow impound documentation, as well as all tow receipts for the randomly selected seven-day period of October 9, 2018 through October 15, 2018 (172 tows). As only fourteen of these tows included the $40 dollies or flatbed services charge, the subsequent seven-day period covering October 16 through October 22, 2018 was also tested which increased our sample size to twenty transactions. Our objective was to review the corresponding Parking Department's body camera footage to determine whether dollies or flatbed services were provided for charged customers at the tow locations in adherence with the terms reportedly agreed upon according to the August 23, 2018 newspaper article. Of the 20 tows, for which body camera footage was reviewed, occurring on October 9, 2018 through October 22, 2018, it was found that two were inconclusive because the body camera footage did not accurately capture the entire tow. For the remaining 18 tows, it was determined that six were properly charged, as dollies or flatbed services were used at the tow locations, and 12 were overcharged as they were not used. Therefore, it was concluded that Tremont Towing was not fully complying with the August 2018 agreed upon terms and that these sampled customers were overcharged by a total of$480 ($40 x 12 = $480). Recommendations: The City Commission and City Administration should consider that the next Towing Permits include the following provisions: a. Require that during the vehicle retrieval the customer be provided, along with the invoice, a picture of the vehicle on a dolly or a flatbed whenever a charge for such service is included, as well with any VSR submitted to the Parking or Police Departments as part of the City's billing process by the tow companies. The picture should show the vehicle license plate for accurate identification. These requirements should also be stated in the Towing Bill of Rights. b. Preclude the tow companies from billing for dollies or flatbed services unless they were used at the tow locations and the VSRs are noted as such by the Parking Enforcement Specialists. c. Allow for financial penalties that the City and/or the vehicle owners could invoke against a tow company in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Tremont Towinq's Response: Tremont Towing complies with the City's permit. The labor charge is applied to the tow when it is necessary to gain entry to the vehicle (e.g., to release the emergency break). This can be completed at the time of pickup or later after the vehicle is cleared from the location. Additionally, Tremont only applies flatbed and/or dolly fees when a flatbed or dolly is used in the removal of the vehicle. Tremont would welcome the City's implementation of an electronic system should funding be available in the City's budget to allow for allow for retention of photos and computerization of the vehicle storage receipt. Finding#2: Customers Overcharged Due to Tow Companies' Incorrectly Rating the Towing Weight Classification Section 22(B) through (E) of the Towing Permits details the hook-up fees for the different classes of vehicles ranging from $140 for Class "A" tows to $200 for Class "D" tows. In summary, the Towing Permits allow each tow company to bill hook-up fees based on the class of the wreckers/tow trucks and/or car carriers as defined in Section 11 of the Towing Permits below: Page 12 of 22 Page 366 of 1252 A. Class "A" wreckers and slide back car carriers - commercially manufactured unit, with a rated capacity of not less than 10,000 pounds, GVW(gross vehicle weight) B. Class "B" wreckers - commercially manufactured units, with a rated capacity of not less than 18,000 pounds, GVW Class "B" slide back car carriers — commercially manufactured unit, with a rated capacity of not less than 20,000 pounds, GVW. C. Class "C" wreckers — commercially manufactured unit, with a rated capacity of not less than 36,000 pounds, GVW According to the website automotozine.com3, the gross vehicle weight (also known as gross vehicle weight rating) is explained as "...a safety regulation used to prevent the overloading of vehicles. It's the maximum safe operating weight of a truck, including its net weight, plus driver,passengers, cargo, and fuel. The gross vehicle weight rating doesn't change after a manufacturer determines it for a vehicle". Given this information, OIG staff found it difficult to believe that the Towing Permit provisions would allow the tow companies to charge the customer higher rates when they use a larger wrecker/tow truck than is needed to tow a vehicle. In other words, it would not be proper to charge the customer hook-up fees of$200 (Class "D") when a Class "D" wrecker/tow truck is used to tow a vehicle with a GVW of 8,000 pounds rather the $140 fee that would be charged for the appropriate Class "A" wrecker. A legal opinion from the City Attorney's Office was requested to confirm this interpretation, and the following response was received: "The maximum allowable rate to be charged by Beach Towing Services, Inc. or Tremont Towing, Inc. (collectively, the "Towing Permittees") for any vehicle tow must be based upon, and solely depend on, the Gross Vehicle Weight ("GVW") of the actual vehicle being towed, irrespective of the classification of the wrecker("A", "B", "C" or"D")which is utilized for the towing of said vehicle by the respective Towing Permittees. In other words, pursuant to the Towing Permits, there is no prohibition on the Towing Permittees employing a wrecker with a rating capacity greater than necessary to accomplish the tow of a particular vehicle. However, should the Towing Permittees utilize a wrecker with a rating capacity greater than necessary to effectuate the tow of a particular vehicle (when a wrecker of a lesser rating capacity could safely carry out such tow), then the affected customer should only be charged based upon the rates set forth in the Towing Permits for the lowest rated (least expensive) wrecker class that could have been utilized to accomplish the tow based upon the towed vehicle's GVW." In addition, OIG staff made the following assumptions in its testing: a. Class "D" wreckers are not specifically addressed in the Towing Permits; therefore, they would. contain a rated capacity of equal to or more than 36,000 pounds (the maximum weight limit for Class "C" wreckers). b. As the rated capacities for Class "B" wreckers and side back car carriers was slightly different (18,000 vs. 20,000 pounds respectively), then any vehicles whose GVW was more than 10,000 pounds but did not exceed 18,000 pounds would be charged Class "B" hook-up fees. If the vehicles GVW exceeded 18,000 but not 36,000 pounds, then it would be charged Class"C"hook- up fees. 3 Mips:liautomotazine.comicrocs-vehicle-v.p.Ot-ra?rrq-explained/ Page 13 of 22 Page 367 of 1252 Testing was performed on the Parking Department's requested tows during the audit period to determine Tremont Towing's compliance with Section 22(B) through (E) of the Towing Permits. As such, OIG staff identified 11,294 tows requested by the Parking Department in which hook-up fees were billed by Tremont Towing, based on the Excel monthly spreadsheets. Although these tows were not listed as Class "A", "B", "C", or "D" on these spreadsheets, all tested tows were systematically classified based on their corresponding fees charged to non-residential customers (ex. $140 = Class "A", $145 = Class "B", $175 = Class "C" and $200 = Class "D"). Exhibit 9 below shows the number and percentage of Parking Department requested tows performed by Class for each tow company during the audit period based on the Excel spreadsheets listed data. Exhibit 9 [Beach Towing_ M Tremont Towing Count of Class %of Class Count of Class %of Class Breakdown Breakdown Breakdown Breakdown Class A 11,067 95.29% Class A 11,250 99.61% Class B 459 3.95% Class B 28 0.25% Class C 74 0.64% Class C 5 0.04% Class D 14 0.12% Class D 11 0.10% Grand Total 11,614 100.00% Grand Total 11,294 100.00% This analysis solely included tows in which hook-up fees were charged to customers according to the Parking Department's provided monthly Excel spreadsheets. Any tows performed where hook-up fees were not assessed were excluded from analysis which included tows of abandoned vehicles,instances where the tow documentation was apparently not submitted by the towing company as no information was recorded in the spreadsheets,and any tows performed on a"no-charge"basis which included tow services provided for City vehicles,crime victims,etc. As shown above, Tremont Towing performed 11,250 Parking Department requested Class"A"vehicle tows, for which a $140 fee or less was charged, and which represented 99.61% of their total tows during the 13-month audit period. In addition, Section 22 of the Towing Permits states, "The permittee shall not charge in excess of the following maximum allowable rates established by the City(as same may be amended from time to time) ..."The $140 Class "A" base tow fee would be the maximum rate for those tows but also the lowest of the base rates chargeable for all tows. Therefore, there would be no risk of overcharging based on gross vehicle weight if Class "A" fee is applied, as all tows assessed hook-up fees greater than $140 would be classified as either Class "B", "C", or "D" tows. Consequently, no additional testing was performed on Class "A" tows, and the OIG staff focused on the tows in which the hook-up fees charged exceeded $140, which represented 0.39% of all Tremont Towing tows. Each sampled vehicle's make and model was obtained from the vehicle identification number and/or license plate number listed on the VSR for the vehicle, as well as any attached supporting documentation. Next, the gross vehicle weight ratings were obtained from internet searches of the manufacturers' websites for these specific vehicles, which was then compared to the gross vehicle weight limits in Section 11 of the Towing Permits. As a conservative measure, OIG staff always. selected the vehicle's most comprehensive trim available (the largest engine, extended cab, 4x4, etc.) or the highest gross vehicle weight ratings listed for each of the tested vehicles. Appendix A located at the end of this report lists the tested vehicles for each Class and their corresponding impound numbers, make and model, gross vehicle weight ratings, etc. Due to their relatively small number(28 Class"B" +4 Class"C"+ 10 Class"D"= 42 total), all the vehicles charged Class "B", "C" and "D" hook-up fees by Tremont Towing were tested in which the following summarized results were obtained: Page 14 of 22 Page 368 of 1252 a. 12 of the 28 Class "B" vehicle tows (42.86%) contained gross vehicle weight ratings equal to or more than 10,000 pounds but less than 18,000 pounds and were properly charged. However, the 16 remaining vehicle owners (57.14%)were overcharged, as their gross vehicle weight ratings were less than 10,000 pounds. b. All four Class "C" vehicle tows were overcharged, as they contained gross vehicle weight ratings less than 18,000 pounds. c. Five of the 10 Class "D" vehicle tows (50%) contained gross vehicle weight ratings equal to or more than 36,000 pounds and were properly charged. The remaining five customers(50%)were overcharged, as their gross vehicle weights were less than 36,000 pounds. Lastly, it was determined that eight tows were assessed hook-up fees that exceeded the $200 Class "D" maximum allowable rate established in Section 22 of the Towing Permits. Inquiries were made with Tremont Towing's representative in which a satisfactory explanation was received for one of these tows, while he also stated that the remaining seven tows were incorrectly charged ranging from a low of$300 to a high of$400. These seven tows with excessive hook-up fees were also included in the analysis above concerning the vehicle's gross vehicle weight ratings. Recommendations: The City Administration and/or City Commission should consider implementing the following recommendations to improve customer knowledge and to increase Tremont Towing's responsibilities: a. The Towing Permits, Towing Bill of Rights, and the signage displayed at Tremont Towing's offices should more clearly define the applicable hook-up fee charges and the corresponding GVW ratings so that tow customers can better determine whether the charged fees are valid for their vehicles. b. The burden of proof should be on the tow companies to show that any hook-up fees other than the $140 Class "A" hook-up fee are valid, rather than putting the burden on less informed consumers to determine the applicable charges based on their vehicles' GVW. c. The Towing Permits should allow for financial penalties that either the City and/or the vehicle owners could invoke against the tow companies in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Tremont Towing's Response: Guidance from the City and amendment of the Ordinance is needed for Class D charges. Tremont does not maintain any Class D wreckers and we have simply charged what the wreckers from the City of Miami billed Tremont for City tows. We have implemented a training protocol to ensure compliance until such time as the permit is amended to reflect the proper cost of Class D tows. Finding#3: Customers Were Overcharged for Labor to Engage/Tow Fees Not Rendered at the Tow Locations Section 22(H)(5) of the Towing Permits states that the $30 labor to engage/tow fee "... is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow the vehicle." This fee is to be charged when the tow truck operator needs to enter the vehicle to disengage the emergency brake, straighten the vehicle's wheels, etc. to facilitate towing and to help avoid damaging the vehicles. Therefore, OIG staff concluded that the tow truck operators would have to enter the vehicles at the tow locations to achieve these desired results and for the labor to engage/tow fees to be charged. Page 15 of 22 Page 369 of 1252 As the 20 reviewed Parking Department transactions in finding #1, occurring from October 9, 2018 through October 22, 2018, contained charges for labor to engage/tow fees as well as dollies or flatbed services fees, OIG staff concurrently observed the available footage to determine whether the tow operators entered the vehicles at the tow locations. It was observed that eight tows were inconclusive, as the body camera footage did not accurately capture the entire tow. Of the remaining 12 tows observed during this fourteen-day period, it was determined that three customers were properly charged labor fees, as the tow operators were observed entering the vehicles at the tow locations, but that nine customers were overcharged because no entrance was observed. Therefore, it was concluded that Tremont Towing was not fully complying with Section 22(H)(5) of the Towing Permits terms and these nine customers were overcharged by a total of$270 ($30 x 9 = $270). A similar review of the Police Department's tow impound documentation, as well as all invoices for the period of October 9, 2018 through October 15, 2018 (5 tows) was performed. Upon reviewing the body camera footage retained by the Police Department, it was found that two tows were inconclusive as the auditor could not tell if the tow operators physically entered the vehicles. Of the remaining three tows, it was determined that all were overcharged as the tow operators were not observed entering the vehicles at the tow locations. As a result, each of these three customers was overcharged $30 for a total of$90 ($30 x 3 = $90). In summary, body camera footage from the Parking and Police Departments was reviewed for 25 tows in which labor to engage/tow fees were charged in October 2018. Of these tows, ten were inconclusive, as OIG staff could not determine whether the tow operators entered the vehicles at the tow locations. For the remaining 15 tows, it was concluded that three were properly charged and 12 were overcharged by a total of$360 ($30 x 12 = $360). OIG staff also analyzed how often the $30 labor to engage/tow fee was charged during the 13-month audit period based on the data in the Parking Department's monthly Excel spreadsheets. The results of this analysis showed that Tremont Towing charged labor to engage/tow fees for 11,230 of the 11,294 tows that were charged hook-up fees and which occurred from October 1, 2017 through October 31, 2018 (99.43%), resulting in $334,477 being charged to their tow customers (see Exhibit 12 below). Exhibit 10 Labor to Engage/Tow_Fees Labor Charges Analysis Count of %of Labor Hookup Fee Labor Charges Charges $ Labor Charges 2017 December 924 916 99.13% $27,226 November 756 748 98.94% $22,180 October 824 821 99.64% $24,390 2018 April 854 852 99.77% $25,360 August 864 849 98.26% $25,562 February 804 803 99.88% $23,885 January 840 833 99.17% $24,810 July 930 928 99.78% $27,595 June 819 815 99.51% $24,245 March 1,186 1,183 99.75% $35,290 May 855 855 100.00% $25,569 October 832 825 99.16% $24,505 September 806 802 99.50% _ $23,860 Grand Total 11,294 11,230 99.43% $334,477 Exhibit 10 shows the number of labor to tow/engage fees charged relative to the number of hook-up fees assessed, their corresponding percentage,and the dollar amounts associated with the total number of labor to engage/tow fees per month and cumulatively for the audit period of October 1,2017 through October 31,2018. Page 16 of 22 Page 370 of 1252 A closer review of the charged labor to engage/tow fees listed on the Parking Department's Excel monthly spreadsheets found that four exceeded the $30 maximum allowable rate which were subsequently emailed to Tremont Towing's representative for an explanation on February 1, 2019. On February 6, 2019, satisfactory explanations were received for two of these tows; however, the explanations provided for the remaining two tows were insufficient to determine the reason for the overcharges, so OIG staff concluded that the labor fees on these two tows were overcharged by an estimated $102.00. These two explanations were considered insufficient because they were incorrectly calculated based on the Towing Permits' maximum allowable rates and the information listed. For example, the representatives' response for the vehicle with impounded number 143132, for which a labor charge of$99 was made, is 'The labor fee did not exceed the maximum allowable rates. A $30 labor fee was charged. In addition to the $30 labor fee, additional labor in the amount of$66 was charged pursuant to Section 22(H)(1). The tow took a total of 1.5 hours to perform". According to Section 22(H)(1) of the Towing Permits, the charge for a 1.5 hour of labor or waiting time is $16.50 (1.5 - 0.5 hours - 1-hour x $16.50) when the first half hour is discounted. Thus, OIG staff determined that the labor to engage/tow fees on these two tows were incorrectly billed in that customers were charged fees ranging from a low of$60 to a high of$90. Recommendations: The City Commission and City Administration should consider that the next Towing Permits contain provisions as follows: a. Require that the customer be provided during the vehicle's retrieval, along with the invoice, one or more picture(s) of the vehicle with the door open when this charge is billed, as well as a copy of the VSR submitted to the Parking or Police Departments by the tow companies as part of the City's billing process. The corresponding picture(s) should also show the vehicle's license plate for accurate identification. These requirements should be stated in the Towing Bill of Rights. b. Preclude the tow companies from billing labor to engage/tow fees unless the VSRs are noted as such by the Parking Enforcement Specialists present at the tow locations. c. Include financial penalties, that either the City and/or the vehicle owners could invoke against the tow companies, in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Tremont Towing's Response: Tremont provides an itemized receipt to every customer who retrieves his or her vehicle. Additionally, signage encourages customers to retain their receipt is clearly displayed at the pick-up window. We would have no issue with the City's Parking Enforcement being present and videotaping each and every tow on City property but would request that the City implement an electronic record system to streamline compliance. Florida law already allows customers to seek redress in court. Tremont works with customers who have questions and complaints about the charges and the vast majority of all disputes are resolved amicably. Finding #4: Time Information is not Always Present in Tow invoices; and One Tested Storage Fee Transaction was Incorrectly Charged. Page 17 of 22 Page 371 of 1252 Section 22(A) of the Towing Permits paraphrased states that the first eight hours of storage shall be without charge and then it subsequently lists the daily storage rates based on the type and size of vehicle. On average, Tremont Towing charged customers storage fees for only 14% of its tows as most vehicles were retrieved within eight hours. OIG staff reviewed a total of 172 towed vehicles' documentation from the randomly selected seven- • day period of October 9 through October 15, 2018 to determine the corresponding accuracy of charged storage fees. Of these, five were missing the times that the vehicles were impounded and 17 were missing the time that the vehicles were released to its owners. Recommendations: The City Administration and City Commission should consider that the next Towing Permits include the following provisions: a. Require that an automated time/date stamp be used rather than manual notations to help reduce the possibility of errors or manipulation, and that this information be made available to the City upon request. In the interim,Tremont Towing staff should always include the time that the vehicle was impounded and the customer's retrieval time to facilitate storage fee calculations. b. Require that tow customers receive copies of their VSRs, which contain the times that their vehicles were impounded, so that they can accurately determine whether any storage fees charged are appropriate. The tow companies should have the responsibility to fully explain any charges to customers before any monies are remitted. Tremont Towing's Response: Since the time period evaluated by the audit, Tremont has already implemented a machine-generated timestamp but if the City wishes to standardize the automated machine, we would welcome recommendations and/or certifications as to the machine type and model from the Parking Department or City Commission. Additionally, Tremont provides all customers with copies of the receipts which contain the times the vehicles were towed and retrieved from the lot. Finding#5: Sales Taxes Charged and Collected on Police Department Requested Tows Appear to be Unnecessary A review of the supporting documentation provided for Tremont Towing's 178 sampled tows, occurring from October 9 through October 15, 2018, found that they were consistently charging 7% state sales tax on any amounts collected for administrative and/or storage fees. OIG staff did not analyze Tremont Towing's monthly state sales tax returns to ensure that the correct amounts were remitted, as this report focused only on public tows, and any sales tax monies paid would also include any private tow taxable amounts, precluding a segregation of sales taxes charged on public tows. However, the OIG staff's review of the State Statutes and ancillary documentation such as TAA — 103463' found that the administrative and/or storage fees are not taxable for vehicles lawfully impounded for legal reasons. In subsequent conversations with the City Attorney's Office, it was concluded that none of the Police Department's requested tows would appear to be subject to state sales tax based on the known information. Although the exact amount collected in state sales taxes is unknown as the Police Department did not create and maintain monthly Excel spreadsheets as did the Parking Department, a portion may have been unnecessarily charged and collected. 4 httns:'fr cnu a: fiondarevenue corn/Lawiribr g ocumentsf2 i11/OVIAA-103463 Page 18 of 22 Page 372 of 1252 Recommendations: Tremont Towing should confirm with the State of Florida before taking any definitive action; however, OIG staffs position is that the 7% state sales tax should not be charged on administrative and/or storage fees for vehicles lawfully impounded for legal reasons (Police Department requested tows). If subsequently confirmed by Tremont Towing with the State of Florida, they should discontinue charging and collecting sales tax on these tows, but until then all amounts collected should be timely and completely remitted.. Tremont Towing's Response: Following guidance from the Parking Department and/or City Commission we will consult with Tallahassee, but all sales tax collected as already been remitted to Tallahassee and it is unlikely that the State will refund the monies. Finding #6: Deficiencies in the Required Insurance Coverage Maintained Section 4 of the Towing Permits specifies the required insurance coverage to be in full force and effect at all times throughout the term. A copy of Tremont Towing's current insurance policy was requested and promptly received from the City's Parking Department. As it had not been previously reviewed by the City's Risk Management Division for sufficiency, OIG staff met with a Risk Management Division employee on January 31, 2019 whereby the following coverage deficiencies were noted: • The named certificate holder was Tremont Towing, Inc. instead of the City of Miami Beach in the workers' compensation certificate of liability insurance covering between 10/01/2017 and 03/01/2018 or the first 6 month of the audited period. • The named certificate holder was the City of Miami Beach Parking Department instead of the City of Miami Beach, which should be the named certificate holder. Recommendations: Tremont Towing should always maintain the required insurance coverage in accordance with the Towing Permits. It was recently verified with the City's Risk Management Division that Tremont Towing has resolved these coverage deficiencies and is compliant with Section 4's terms. Going forward, the Parking Department Director and/or the Police Chief should instruct designated staff to verify that Tremont Towing maintains the required insurance coverage in accordance with the Towing Permits. Finding #7: Invoices Contain Language that is Contrary to the Towing Permits Section 22 of the Towing Permits specifies the maximum allowable rates for towing, removal, and storage. More specifically, subsection H entitled "Special and additional charges" states "1. Extra labor or extra waiting time $ 16.50 per hour after the first 30 minutes at the scene and prorated after the 1st hour in 15 minutes increments". However, sampled Tremont Towing VSRs found that under the section "Other Charges", they contained the following line item which contradicts Section 22's terms: "$16.50 EVERY 15 MIN., After 30 minutes on scene, includes retrieving and special handling In addition, Section 22 (H)(5) of the Towing Permits describes the labor to engage/tow fee and its $30 maximum allowable rate, as "This is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow the vehicle.". Yet, reviewed Tremont Towing invoices stated "labor— open door or disconnect linkage $30", are incorrect as the Towing Permits do not include disconnect linkage as a valid reason to impose this fee. Recommendations: Page 19 of 22 Page 373 of 1252 The Parking Department Director should instruct Tremont Towing to promptly amend their invoices so that they do not contradict the stated conditions in the Towing Permits and the tow customer is charged correctly. Tremont Towing's Response: Tremont will work with the Parking Department and the City to update its invoices with the City's Recommendations to make the receipt more understandable. RECENT UPDATES As any identified deficiencies plus the Parking Department's Excel spreadsheets containing the total tow population during the audit period had been previously forwarded to the auditees and two exit conferences to discuss the audit findings had already been held during 2019, a third exit conference was not deemed necessary. Instead, the draft reports for both Tremont Towing and Beach Towing were emailed to their shared attorney, Rafael Andrade, on July 15, 2020 in which both companies were given 30 working days, or until August 27, 2020, to provide their management responses in compliance with to Section 2-256(h), City of Miami Beach Code. Mr. Andrade then requested OIG's supporting documentation related to findings 1, 2, and 3 in emails sent between the 18" and 20' of August. The OIG provided the requested information to the City Clerk's Office on August 24th. Mr. Andrade was notified via email on the same day that the eight CDs containing the requested information were available from the City Clerk's Office upon receipt of the payment of the cost of preparing the information. As of August 26th, the information still had not been retrieved from the City Clerk's Office, but the tow companies' attorney was requesting additional time until September 30th. The City's Inspector General agreed to extend the time to provide responses until September 7th at 5pm. In regard to finding#2, Mr.Andrade not only requested the supporting information for the 60 randomly sampled Class B tows, but also for the remaining 399 Class B Beach Towing tows that were not tested by OiG staff, and as such, had not been addressed in any of the three draft towing reports. Nonetheless, OIG staff identified and submitted on September 7th all known information for these 399 Class B tows, including the impound numbers, to Mr. Andrade. As a courtesy, the City's Inspector General extended the deadline for responses to both tow reports to September 9' at 5pm. Mr. Andrade requested an extension to at least September 16' to perform research and test these additional 399 Class B tows, which was declined by the Inspector General on September 8th. Mr. Andrade provided a response on September 9"for the Beach Towing audit in which he claimed that the Inspector General failed to disclose to the City Commission that on or about December 4, 2019, he had referred the Beach Towing audit to the Miami-Dade State Attorney's Office (SAO)for criminal investigation, and that inasmuch as Beach Towing is under criminal investigation it would refrain from addressing the allegations until the SAO completes its investigation. The response is attached to the Beach Towing audit report. Mr. Andrade did not respond on behalf of Tremont Towing. On August 27, 2020, the day before the original response deadline, Tremont Towing's President and CEO, Manny Diaz, contacted OIG staff to state that he had terminated Mr. Andrade's services and had asked their litigation counsel, Alexander Orlofsky, to represent the company in the City's Audit. Tremont Towing's representatives and their attorney met with OIG staff.on September 10th to openly discuss the audit findings addressed in their report and possible solutions. Based on the documentation received, the draft report was revised and emailed to Mr. Orlofsky on September 14th for Tremont Towing's management responses. The management responses received are included herein. Page 20 of 22 Page 374 of 1252 During the September 10`h meeting, Mr. Diaz claimed that his company did not receive the July 15, 2020 draft report as it was sent via email only to Mr. Andrade, who allegedly did not timely share its contents and told the City that Tremont ended its attorney-client relationship with Mr. Andrade. The OIG has been sending all audit correspondence exclusively to Mr. Andrade since being notified in a December 14, 2018 email that he represented both tow companies. Mr. Diaz stated that he would have responded timely if he had known about the latest draft and that he has already implemented several of the prior draft's recommendations. He continued to state that the City could review any of Tremont Towing's maintained body camera footage, which they had implemented several years ago prior to this audit's inception. Beach Towing does not currently have its staff wear body cameras and is not known to have implemented such corrective action. proved by: AOpy /c D 2-o o7 ! -n orino, Inspector General Date Reviewed by: U � � A / oo Mark Coolidge, Chief Audit Date Completed by: c11 -2_91 2,20 Norman Bt:i t ' I- uty Chief Auditor Date cc: Jimmy L. Morales, City Manager Eric Carpenter, Assistant City Manager Saul Frances, Parking Director Richard Clements, Police Chief John Woodruff, Chief Financial Officer Michael Smith, Human Resources Department Director Page 21 of 22 Page 375 of 1252 Tremont Towing, Inc. - Towing Permits Compliance Audit- September 24, 2020 Appendix A.Tested vehicles for each tow class assigned and their corresponding impound numbers,make and model,gross vehicle weight ratings,etc.(Finding 1) Green=Overcharged Class 8 Tows I I Blue=Overcharged Class C TowsOrange=Overcharged Class 0 Tows I Hookup Tow Class Assigned ti Tows Impounded Vehicle Gross Weight Fee (Based on Hookup Fee Overcharged Il Tows Tested Impounded Numb®Date/T1me®Impounded From Location ®Vehicle Brand/Model a Vehicle Yell Rating(GVWR)lbs. la Charged®Charged) w ' 1 128907 10/11/17 40016TH ST,Miami Beach Ram 3500 2015 11,500 5145 8 ' 2 130598 11/09/17 1800 PURDY AVE LOT,Miami Beach Ram 3500 2015 11,500 5145 B 3 133943 01/05/18 ,130015TH ST,Miami Beach Ram 3500` 2015 11,500 5145 B 4 129339 _ 10/18/17 800 EUCLID AVE,Miami Beach Ford 1350 1999 11,200 $145 B ' 5�� 131351 11/24/17 728 OCEAN DR,Miami Beach Ford 6350 2008 11,200 $145 B 6 137538 03/06/38 1100 WEST AVE,Miami Beach Ford F350 _ 2005 11,200 i $145 B 7 129883 10/28/17 1300 OCEAN CT,Miami Beach Chevrolet Express 3500 2017 10,400 ^_ 5145 _ B _ 8 145804 07/13/18 1600 EUCLID AVE Chevrolet Express 3500 2010 10,400 5145 B 9 130602 11/09/17 1800 PURDY AVE,Miami Beach Ford 1350 2015 30,200 $145 B 10 _132603 _12/15/37 1600 WASHINGTON AVE,Miami Beach Ford1250_King Ranch 2017 _ 30,000 5145 B �11 137057 02/26/18 1100 PENNSYLVANIA AVE,Miami Beach Ford F250 2006 10,000 $145 B 12 140819 _04/20/18 1600 WASHINGTON_AVE,Miami Beach Ford F250 _� 2011 �� 10,000 5145 ,�� B 13� 148787 08/31/18 3200 COLLINS AVE VanHoolT2145 2000M 50,700 $300T =D _14 _ 145513 07/07/38 1700 BAY RD,Miami Beach Freightliner Columbia 120 2007 46,000 5400 D 15 146112 07/17/18 8600COLLINS AVE,Miami Beach International 7600 _ 2005 33,000 5400D 16 140453 04/14/18 19 NORMANDY OR,Miami Beach Int.ProStar Premium 1E627 2009 32,000 5400 D 17 132852. 12/19/17 130014TH TER,Miami Beach Int.DuraStar 4300 MA025 2016 25,999 $400 D 1 18 131230 11/21/17 50012TH ST,Miami Beach GMC Savana 2003 9,600 • $145 B 2 19 132278 12/10/17 1411 COLLINS AVE,Miami Beach Ford Transit 350 2018 9,500 $145 B 3 20 135327 01/28/18 4008TH ST,Miami Beach Ford Transit 350 2015 9,500 5145 a 4 21 142870 05/26/18 1800 JAMES AVE BLK,Miami Beach Ford Transit 350 2018 9,500 5145 B 5 22 147485 08/08/18 000 ISLAND AVE Chevrolet G30 Express '1997 4 9,500 $145 B 6 23 148713 08/29/18 _141SCOLLINSAVE FordTransit350 2016 9,500 $145 8 7 24 130194 11/02/17 _7700 ABBOTT AVE,Miaml Beach Chevrolet Express 2500 2013 9,460 $145 B 8 25 , 138247 03/16/18 1400 OCEAN CT,Miami Beach Ford E350 2006 9,400 $145 8 9 26 128434 10/02/1.7 30023RD ST,Miami Beach Ford E250 2014 9,000 $145 B 10 27 128522 10/04/37 CO3 WASHINGTON AVE,Miami Beach Ford E250 2011 9,000 $145 B 11 28 131811 12/03/17 31820TH ST,Miami 9each GMCSavana 2500 4 2016 8,600 $145 B ' 12 29 141609 05/03/18 1200OCEAN OR,Miami Beach Ford E1S0 20I1 8,600 5145 B 13 30 134285 01/12/18 100 14TH ST BLK,Miami Beach Chevrolet Express 1500 2007 7,200 $145 B 14 31 129452 10/20/17 120015TH TER,Miami Beach ,Ram 1500 2015. 6,950 $145 B 15 32 129517 10/21/17 1400LINCOLDRD,Miami Beach ' Toyota Tundra 2008 * 6,400 5145 B 16 33 _ 138576 03/19/18 500 10TH ST,Miami Beach Chevrolet Express 1500 2004 6,200 5145 B 17 34 138991 03/24/18 2700 SHERIDAN AVE,Miami Beach Ford E450 2009 14,500 $175 C 18 35 :145517 07/07/18 1600 LENOK AVE � • Ford 6450 2010 14,500 • $175' C 19 36 134927 01/21/18 2006TH ST,Miami Beach Ford 6350 2014 12,500 _ 5175 C 20 37 128883 10/10/17 1600 WASHINGTON AVE,Miami Beach' Ford Transit 350 2016 9,500 $175 C 22 39 134449 01/13/18. 300 EUCLID CT,Miami Beach Isuzu NPR 2013 14,500 . $200 D. 23 . 40 134357' 01/12/18 700LENOX AVE 81K,Miami Beach Ford E450 2004 14,050 5200 0 24 41 151551 10/19/18 1200 EUCLID AVE GMC.Savana3500 2018 12,300 $320 D 26- 43 132400 43080.90069 355 191'H ST,Miami Beach _Freightliner M2 106 2018 33,000 200 D ' 27 44 .'128516 43012.48125 000 WASHINGTON AVE,Miami Beach Hino 268 2010 25,950 400 D Page 376 of 1252 Page 22 of 22 Exhibit "B-2" 01 Be 4Z.4 CRY HAI A, Joseph M. Centorino, Inspector General TO: Honorable Mayor and Members of the City Commission FROM: Joseph Centorino, Inspector General • DATE: September 24, 2020 AUDIT: Beach Towing Services, Inc. - Towing Audit OIG No. 20-18 PERIOD: October 1, 2017 to October 31, 2018 This report is the result of a request made by the City Administration in November 2018 for the then-existing Office of the Internal Audit to verify compliance of Beach Towing Services, Inc. (Beach Towing) with selected provisions in the City of Miami Beach Administrative Rules and Regulations For Police and Parking Towing Permits (Towing Permits) that were in effect during the audit period. An entrance conference meeting was held in December 2018 with Beach Towing management to explain the audit process, to gain an understanding of their operations and to obtain copies of any relevant documents. Although the reviewed Towing Permits contain a myriad of points that require compliance from Beach Towing, Office of the Inspector General (OIG) staff concentrated its testing primarily on the accuracy of the City's monthly billings and the amounts charged to tested tow customers. To help achieve these objectives, we reviewed the provided Standard Operating Procedures, work performed, available body camera footage, documentation received from the City's Parking, Police and/or Finance Departments, as well as copies of the Vehicle Storage Receipts received from Beach Towing. As this audit was nearing completion, the City Commission voted in favor of terminating the internal audit at its June 5, 2019 meeting. At that time all internal audit work was immediately terminated. This audit's termination was subsequently re-visited at the January 15, 2020 Commission meeting wherein it was decided that the newly created Office of Inspector General, as an independent agency, had the authority to conclude the audit. Consequently, the audit was resumed and has resulted in the issuance of three separate audit reports, including this one. The other two audit reports consist of testing performed relative to Tremont Towing, Inc. (Tremont Towing) and of the City departments involved in the towing process. Although the work performed was reported separately, there may be some overlap in the three reports, as noted shortcomings may involve more than one of the parties involved. ACRONYMS CAD= Computer Aided Dispatch GVW= Gross Vehicle Weight(Rating) LERMS = Law Enforcement Records Management System VSR = Vehicle Storage Receipts Page 377 of 1252 INTRODUCTION Chapter 106, Article V, of the Miami Beach City Code, provides for the issuance of towing permits for the towing of vehicles identified by the City's Parking and Police Departments as requiring removal from public and private property, as well as vehicle impoundments. The same two tow companies, Beach Towing and Tremont Towing, have continued to operate exclusively in Miami Beach since at least their selection based on their response to Request for Proposals No. 1-91/94. The negotiated towing permits for the two companies have been revised as needed in the following years. More recently, City Resolution 2015-28918 was adopted on February 11, 2015 approving the issuance of new Towing Permits to Beach Towing and to Tremont Towing for a three-year term commencing on March 1, 2015 and expiring on February 28, 2018. Both companies' terms were extended for an additional one year through February 28, 2019 with the passage of City Resolution No. 2018-30161. Next, the City Commission on December 12, 2019, approved a one-year extension for both tow companies of the same terms with a reduction of their charged automated teller machine fees. Although this extension expired in February 2020, Beach Towing is currently continuing to operate on a month-to-month basis under its terms. OVERALL OPINION Among other tests performed, OIG staff conducted a data analysis of all requested public tows occurring between October 1, 2017 and October 31, 2018, whereby selected supporting documentation as well as Parking and Police Department body camera footage for tested days was reviewed to determine whether the towing fees charged by Beach Towing were appropriate. Throughout the audit process, communication was also maintained with the towing company's representatives to request additional information and/or documentation. However, the received responses were not always sufficient to clarify the perceived shortcomings. Although the data obtained from its sample results was not extrapolated to draw conclusions on a larger scale to the population, the outcomes from the audit process stated in this report suggest that the tow companies need stronger oversight. OIG staff believes that the Towing Permits need revision to help improve accountability and to better ensure that individuals are being properly charged for public tows. Examples include, but are not limited to, placing more responsibility on the tow companies to justify charges to individuals whose vehicles are towed, better defining listed terms, clarifying any identified ambiguities, and more clearly defining the roles of all parties. Without making these and other needed revisions to the Towing Permits, the deficiencies noted in this audit report will most likely continue and tow customers will have little recourse. It is recommended that future Towing Permits include language requiring each tow company to provide the vehicle owner with photographic evidence of the impounded vehicle on a dolly/flatbed and/or the vehicle's door opened at the tow location, to support any corresponding charges. This requirement would permit the consumers of tow services to determine the validity of the charges at the time they retrieve their vehicles and to question any discrepancies. Once the owner leaves the scene, it becomes less likely that discrepancies will be noted or refunds retrieved, particularly by out-of-town owners. Furthermore, the Parking Department employees present for all Beach Towing's Parking Flii§90$Qf@52 Department public tows should function more as a consumer and City advocate, since they are present at each tow location and can verify whether dollies/flatbed services were used or whether the tow truck operators entered the vehicles on the Vehicle Storage Receipts (VSRs). Any subsequently identified unsubstantiated differences should be promptly refunded to the consumer and/or financial penalties imposed on the tow companies by the City. For example, Broward County's Code of Ordinances Section 81/2 - 16(b) titled "Violations of Towing and Immobilization Regulations"lists several violations(charging more than the allowable maximum towing and immobilization rate,failure to maintain records for the required period,failing to accept all mandated methods of payment, among others)whereby the first violation results in a $250 fine per violation, which increases to $500 for any repeat violations. Meanwhile, City of Miami City Code Section 42-109 states that a "person who charges a vehicle owner a towing or storage charge in excess of the rate described herein is liable to the vehicle owner for three times the amount charged." Conversely, Miami Beach's Towing Permits and City Code remain relatively silent on this issue, and there are currently minimal consequences for proven non- compliance. Although several sections of the Towing Permits stipulate the City's right to suspend or terminate' the permit if certain violations are incurred by permittees, enforcing such action could jeopardize tow service in the City, as only two companies are presently authorized to operate within the City's boundaries. Therefore, 010 staff believes that the City Commission should strongly consider the possibility of expanding the tow market to include additional companies that would be required to operate a tow yard within a designated number of miles from the City's boundaries. If approved, this expansion would allow the City to impose a suspension or a termination of the agreement on a company without adversely affecting the availability of tow services. Another option to be explored is the possibility of in-sourcing the towing operations to be managed by an existing City Department, or by a separately run department or other city-controlled entity. Despite the potentially high set-up costs with purchasing/leasing the wreckers, hiring/training staff, and preparing the location, there could be associated benefits including better control over operations and increased City revenues, as well as more transparency and oversight capability. The following shortcomings were noted during testing that require corrective action: 1. Of the 21 tows that charged the $40 dollies or flatbed services fee during the 14-day period of October 9, 2018 through October 22, 2018 in which the Parking Department's reviewed body camera footage, it was determined that eleven customers were properly charged, three were inconclusive, and seven customers were overcharged. As a result, Beach Towing was not fully complying with the August 2018 agreed upon terms,and these seven customers were overcharged by a total of$280 ($40 x 7 = $280). 2. Beach Towing overcharged 55 Class B, 73 Class C and 12 Class D sampled customers on hook-up fees of the 148 reviewed (140/1.48 = 94.59%) based on an analysis of their gross vehicle weight ratings. 3. Beach Towing overcharged its customers on labor to engage/tow fees for 14 of 30 tows sampled in October 2018, based upon a review of Parking and Police Department provided body camera footage. As the tow operators were not observed entering the vehicles at the tow locations, it was concluded that these 14 customers were overcharged by a total of$420 ($30 x 14 = S420). 4. The amounts charged by Beach Towing for sampled October 2018 storage fees could not be verified as their employees did not record the time/date indicating when the owners retrieved the towed vehicles. pggiolo§f fit2 5. The amounts charged and collected by Beach Towing for state sales taxes on administrative and/or storage fees for Police Department requested tows does not appear to be justified, based on a review of the State Statutes and Florida Department of Revenue Law Library Technical Assistance Advisement (TAA) -- 103463 with the City Attorney's Office. 6. Beach Towing did not maintain the required insurance coverage in accordance with Section 4 of the Towing Permits. SCOPE, OBJECTIVES, AND METHODOLOGY The scope of this audit was to determine Beach Towing's compliance with selected terms set forth in the corresponding Towing Permits. The audit covered the period of October 1, 2017 through October 31, 2018, and it focused primarily on determining Beach Towing Services, Inc.'s compliance with the following objectives: • To determine whether vehicle owners were charged in accordance to the rates specified in the Towing Permits and in conformity with the services received. • To determine whether the required annual Business Tax Receipt Certificates were obtained. • To determine whether the required insurance coverage was maintained. • Other procedures as deemed necessary. This audit was conducted in accordance with the office's approved Standard Operating Procedures. Those require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe that the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The audit methodology included the following: • Review of applicable provisions within the City Charter and Code of Ordinances, and City Standard Operating Procedures; • Interviews and inquiries of City and external companies' personnel in order to gain an understanding of the internal controls (relative to the operations of the towing services), assess control risk, and plan audit procedures; • Performance of substantive testing consistent with the audit objectives, including but not limited to examination, on a statistical and non-statistical sample basis, of applicable transactions and records; • Drawing conclusions based on the results of testing with corresponding recommendations, and obtaining auditee responses and corrective action plans; and, • Performance of other audit procedures as deemed necessary. FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES The information provided below is relevant for the first four findings, as it represents the criteria for the OIG's testing of sampled customer charges. Per Section 22 of the Towing Permits, Beach Towing shall not charge more than the following maximum allowable rates established by the City Permit(as same may be amended from time to time): A The first eight hours of storage shall be without charge. Thereafter the following storage PaPe6lgElt g W52 rates shall apply per day: 1 Inside-Interior a Motorcycles or Scooters $12 b Any vehicle less than 20 feet in length and 8 feet in width $30 c Any vehicle over 20 feet in length $40 2 Outside-Exterior a Motorcycles or Scooters $10 b Any vehicle less than 20 feet in length and 8 feet in width $30 c Any vehicle over 20 feet in length $30 3 Boat and Trailer(Owner's Unit) a Unit under 20 feet in length $20 b Unit 21 feet to 35 feet in length $35 c Unit over 35 feet in length $45 B Tow Rate Class "A" Tow Truck and Class"A" Car Carrier $140 C Class "B" Tow Truck $145 D Class "C" Tow Truck $175 E Class "D" Tow Truck $200 F Tow Rate Class "B"or"C " Car Carrier $125 G Use of Contractor's Boat Trailer, any length, including storage, per day: 1 Trailer up to 18 feet in length $50 2 Trailer 18 to 30 feet in length $75 3 Trailer over 30 feet in length $150 H Additional charges: 1 Extra labor or extra waiting time $16.50 per hour after the first 30 minutes at the scene and prorated after the 1st hour in 15 minutes increments. 2 Mileage Charges $6 per mile, maximum of$42 per tow. 3 Administrative fee $35 maximum per tow. 4 Dollies or Flatbed Services $40 5 Labor to Engage/Tow(this is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow vehicle.) $30 6 After Hour Fee(may be assessed for tows retrieved between the hours of 8:00 PM and 8:00 AM.)$30 A maximum administrative charge, different from the administrative fees mentioned above in Section 22(H)(3), not exceeding $30 (and not as an automatic "add-on", but only when required to comply with Florida Statutes) may be imposed by the permittee (Beach Towing) for services such as the processing of paperwork, clerical work, or title research. Administrative charges are defined as costs associated with verification of a vehicle identification number; search of vehicle for ownership information; preparation of paperwork required by Florida Statutes; preparation and mailing of the notification letter(s); and preparation of vehicles for auction (including notification to owner or lien holder). Administrative charges shall not be imposed on vehicles with a "police hold" until or unless the hold is removed. Storage for City (confiscated,) vehicles with "police holds" is free of charge to the City. These maximum allowable rates mentioned above shall not apply to City of Miami Beach residents (such exemption(s)for City of Miami Beach residents shall hereinafter be referred to as the "Miami Beach resident discount"). To be eligible for this resident discount, individuals must provide proof of residency within the City of Miami Beach, and their driver's license information must match the registration information of the vehicle being towed. The permittee shall maintain a log documenting discounts given to City residents pursuant to the Miami Beach resident discount, which log shall be available for inspection and copying by the City Manager or his P gaga§ 8f 4)52 designee, upon request. The permittee shall prominently post a sign displaying the maximum allowable rates for both City and non-City residents within the area(s)on its premises designated for the vehicle owner or his agent to transact business. Parking Department vs. Police Department Requested Tows In total, the Law Enforcement Records Management System (LERMS) showed that there were 23,844 (90.96%) Parking Department requested tows and 2,371 (9.04%) Police Department requested tows during the 13-month audit period. The Parking Department has established a process whereby their Coin Room staff manually enter into monthly Excel spreadsheets a detailed breakdown of all the individual fees charged to each towed vehicle owner by the tow company, which includes, among otlrrs, storage fees, mileage charges, administrative fees, after-hours fees, labor to engage/tow vehicle fees, and state sales taxes. Conversely, the Police Department has not established a similar process for documenting the individual amounts charged to each towed vehicle owner. Police Department's designated employees enter a limited share of information from the Vehicle Storage Receipts (VSR)that are received from the towing companies into the Computer Aided Dispatch (CAD) System for the release of the vehicles before they are forwarded to the Records Section for filing. Shortly after the month's end, a CAD System report is generated of all recorded Police Department requested tows which is forwarded to the City's Finance Department for billing. The detailed monthly Excel spreadsheets enabled OIG staff to perform a wide range of analyses on the Parking Department's requested public tows. Similar information is not readily available for the Police Department's requested tows, which only comprised 9.04% of the total tows. Therefore, their tows were excluded from further analysis, but there is no basis upon which to believe that analysis of those tows would differ from those of the Parking Department. As the information in these Excel spreadsheets was entered through a manual data entry process, a quality control test was performed to assess its reliability. All 350 tows performed by both tow companies in a randomly selected 7-day period occurring between October 9, 2018 and October 15, 2018 were reviewed. The corresponding data present in 2,450 entry fields (7 fields x 350 tows) in the corresponding spreadsheets was compared to the applicable storage receipts and/or invoices so that any identified inaccuracies could be quantified. When completed, it was determined that only 16 of the entries contained errors or 0.65% (16/2,450), which means that the accuracy rate was 99.35% ((2,450— 16)/2,450). Based on these results, OIG staff relied on the monthly spreadsheet data in performing various analyses for the audit period. Alternating Tows Parking Department management stated that Dispatchers are to manually alternate tow requests between the two companies. If that practice is not followed at any given time, compensatory measures are taken to ensure that an equal share of overall tow requests is maintained. For example, if Beach Towing inadvertently received two consecutive tow requests, then Tremont Towing is to receive two successive tows once the oversight is identified. The 23,844 Parking Department requested tows recorded through the LERMS database were analyzed for the 13-month audit period for which the corresponding results are presented in Exhibit 1 below: Exhibit 1 I Results Number Percentage Alternating: 123,474 T 1 98.45% pRog§2 @ff 4Q52 Not Alternating: 369 1.55% Last in List(not able to be compared/Tremont) 1 0.00 Total: i 23,844 100.00% Results for"Not Alternating" Not Alternating - to the benefit of Tremont Towing: 169 0.71% Not Alternating -to the benefit of Beach Towing: 200 0.84% Total for Tremont: 11,907 49.94% Total for Beach: 11,937 50.06% Although no alternation occurred in 1.55% of the requested public tows, the subsequent breakdown showed that this difference was typically corrected. In summary, Beach Towing performed (on a net basis) 15 more public tows than Tremont Towing (11,937 — 11,907 = 30/2 = 15) during the 13-month audit period ((23,474/2) + 200 — 15 = 11,922 x 2 companies = 23,844 total). This immaterial 0.0629% difference (15/23,844) was not investigated further. Exhibit 2 below provides a graphical depiction of the percentage share of tow services assigned to each company per month. Exhibit 2 Share of Towing Services Provided- Percentage Comparison •Beach Towing a Tremont Towing 6054 50.05% 50.05% 50.02% 903971 50.15% 50.04% 50.17% 49.97% 49.97% 50.285 50.08% 50.09% 49.6676 5Q;4 ILK -•. xiFa •'tt 4z— LL �,_ T,y I IiI ( t I OCT NOVnWV DECQEC IAN fE0 MAR APR MAT JUN JULNt AUG SEP OCT 2017 201• Revenue Comparison The information in the Parking Department's prepared monthly Excel spreadsheets included the total amounts paid by each tow customer. The OIG staff used this information to perform a revenue comparison (Exhibit 3 graphically and Exhibit 4 numerically) between the two tow companies with the following findings: • The average rounded amount paid by customers per tow was $255.45 which consisted of an average of$268.60 for Beach Towing and $242.27 for Tremont Towing. • Beach Towing's billings exceeded Tremont Towing's by $321,532 or by an average of 11.1% for the 13-month audit period. • The percentage difference decreased to 3.7% for the last two months reviewed (September 2018 and October 2018) from 12.4% for the first 11 months (October 2017 through August 2018). Exhibit 3 Pgaati&3 4)52 Revenue Share-Percentage Comparison , -Peach Towing a Tremont Tow:n4 i 40% S3.7% 54.0% 52.84: 53.3% 52.4% 52.9% 53.2% 52.GS 52.7% WE% s1.7% 50.96 50.9% . ;' 1 :7:4'4; kIiII1 f7 214 ''its 3' 1: .1�7L... ,.' „b a ' _, a_, f ..f r ,OCT kOVOG IAN FEB MAR ARMAY JUN SUL AUG SEP OCT I 2027 2010 -1- - Exhibit 4 Adjusted Total %Gap Between Beach Towing TremontTowing Grand Total Difference _ Revenues -2017 Oct $239,026 $213,975 $453,001 $25,051 11.7% Nov $220,967 $190,249 $411,216 $30,718 . 16.1% Dec $274,832 $234,259 $509,090 $40,573 . 17.3% - 2018 I- Jan $249,688 $219,066 $468,754 $30,623 14.0%co t Feb $231,184 $209,961 $441,145 $21,224 10.1% CA CU Mar $344,078 $306,815 $650,893 $37,262 12.1% C Apr $248,444 $218,940 $467,384 $29504 13.5% y May $244,312 $219,797 $464,109 $24,515 11.2% CU Jun $230,744 $206,690 $437,434 $24,054 11.6% C Jul $265,823 $238,445 $504,268 $27,378 11.5% Aug $233,677 $218,266 $451,944 $15,411 7.1% Sep $209,929 $202,106 $412,036 $7,823 3.9% Oct $213,566 $206,169 $419,735 $7,397 , 3.6% Grand Total $3,206,271 $2,884,738 $6,091,009 $321,532 Average Difference for the 13-month period: 11.1% ' Average Difference for the initial 11-month period: 12.4% Average Difference for the last 2-month period:'; 3.7% Average amount paid by Beach Towing's customers: $268.60 Average amount paid by Tremont Towing's customers: $242.27 Average amount paid by customers: $255.45 More specific testing was performed to determine the difference in the frequency of fees, established in the Maximum Allowable Rates per Section 22 of the Towing Permits, such as hook-up fees, storage fees, state sales taxes, dollies or flatbed services fees, labor to engage/tow fees, after hour fees, etc. levied per tow. The data showed that both companies appear to be relatively consistent with the frequency in which the fees were applied, except for the dollies or flatbed services fee(61.81% for Beach Towing compared to 9.79%for Tremont Towing)as shown in Exhibit 5 below. pgNt::,Off n52 Exhibit 5 Frequency of Additional Charges for Every Hook-up Fee 12:0, ::cr,... I IL ..... ___ Admin', Labor;� Mdeage'> :,Iter-Hour's; Do:1y=, Storage:a Spec,a'v •Beach 99% 99% 99`%S 62% 62% :g>a 2$. @ Tremont 10r} 99% 100% 61'•, 10% 17%% 1% Upon interviewing key personnel, reviewing the Parking and Police Department's body camera footage, as well as other furnished supporting documentation, and covertly observing several tows in January and February 2019, the following shortcomings were identified: Finding #1: Customers Were Overcharged for Dollies or Flatbed Services Fees Not Rendered at the Tow Locations Dollies or flatbed services are required to transport all-wheel drive vehicles (so as not to damage their transmissions), or when the vehicles'wheels will not roll properly for some reason. To help compensate Beach Towing for the additional time needed to install the dollies or the additional expense in using a flatbed, Section 22(H)4 of the Towing Permits allows for an additional $40 fee to be charged to its customers in these instances. The following picture shows the usage of a dolly on a vehicle being pulled by a tow truck. i 1 . - 1, 41 F A --VNIIIIIIwk-. ? ,,a . ___ ___,. ....i. .......,...., - (----. __ f ,,... _ .........,._ ___ _ .' {{ ^ 4 r • - - - — i ,' a, FIROPta cgf 452 Exhibits 6 and 7 below provide a comparative analysis of the number of times that dollies or flatbed services were charged for each month of the audit period by each tow company and the corresponding amount of fees charged. They show that Beach Towing charged the $40 dollies or flatbed services fee approximately 650% more frequently than Tremont Towing (7,179 compared to 1,106). However, the difference became much smaller in September 2018 (34 charges for Beach Towing vs. 29 for Tremont Towing) and October 2018 (62 charges for Beach Towing vs. 46 for Tremont Towing). It was also noted that the frequency in which dollies or flatbed services were charged decreased from an average of 644 times per month for October 2017 through August 2018 to 48 times per month for September and October 2018. This difference represents an estimated $258,870 (see Exhibit 8 below) additional amount in dollies or flatbed services charges, when the initial 11-month period (October 2017-August 2018) is compared to the subsequent two-month period (September 2018- October 2018). Exhibit 6 Dollies or Flatbed Services Charges Utilization Comparison I= S 766 _ W6 so, _ II:;I1i , 1 6 pabaslima•,be 6acsnt es Iaawh rahruary March---_ $4;11- May latae -� kl �-0 ,,I�j S.sMn4i Olin* 2017 1612 . 'a l�hTaIrati 604 576 73 720 6 627 270 616 Mf au 660 M1 ...,. 14 61 1 ._- .. ...._....._�........ ...... t _. .,...__. _ tTt44.17mtati: 105 76 66 117 65 121 t1. .,166 III 363 - II .._ 24_ 40 Exhibit 6's vertical axis represents the number of times that dollies or flatbed services were charged.The horizontal axis is the month in which the dollies or flatbed services were charged during the audit period. The numerical figures below each month are the total number of times that dollies or flatbed services were charged during that month by each tow company. Beach Towing is represented by the blue color bars;Tremont Towing is represented by the orange color bars. Exhibit 7 ;Beach Towing Tremont Towing Total t<of Charges Total Amount 14 of Charges Amount tt of Charges Amount 2017 October 604 $24,155 106 $4,200 710 $28,355 November 570 $22,790 74 $2,940 644 $25,730 e. December 725 $28,985 96 $3,820 821 $32,805 r m -2018 1 January 675 $26,980 112 $4,440 787 $31,420 = ' February 627 $25,065 69 $2,760 696 $27,825 ). March 870 $34,755 121 $4,820 991 $39,575 C April 646 $25,810 81 $3,220 727 $29,030 C May 643 $25,659 108 $4,290 751 $29,949 aJune 584 $23,335 101 $4,005 685 $27,340 e'' July 698 $27,880 105 $4,165 803 $32,045 ' u August 441 $17,615 58 $2,310 499 $19,925 ' September 34 $1,350 29 $1,155 63 $2,505 October 62 $2,480 46 $1,835 108 $4,315 Grand Total 7,179 $286,859 1,106 $43,960 8,285 $330,819 Exhibit 7 displays the number of dollies or flatbed services charged per month and the corresponding amounts charged to tow customers. Amounts shown were compiled using solely dollies or flatbed services charged,$40 for non-residents and $35 for residents,and do not include any other tow charges. 193:. e# 2 Exhibit 8 (B) (C)Average Average Impounded %of Dolly Charges Impounde Vehicles Charged to Impounded d Vehicles with a Dolly Fee Vehicles(C/B) 919 644 70% Monthly Average from Oct 2017 through August 2018(11 months) Monthly Average from Sept 2018 through Oct 2018(2 months) 848 48 6% (A)Average Monthly Number of Additional Dolly Charges When Compared the Initial Eleven-Month Period(Oct/17-Aug/18)to the • Subsequent Two Month Period(Sep/18-Oct/18) - v. Estimated Additional Number of Dolly Charges for the Initial 6,555 Eleven-Month Period(A x 11) "• Dolly Rates(Nonresident/Resident) $40/$35• Estimated Additional Amount of Dolly Charges for the Initial • 1 , Eleven-Month Period,Applying Percentages for Residents and Nonresidents and Abandoned. $258,870 ((6,555 x(94.49%+0.78%)x$40+(6,555 x(3.95%x$35)) _. Exhibit 8 shows the monthly averages of impounded vehicles and dollies or flatbed services(listed as dolly above)charged and the percentage of the impounded vehicles that were charged dollies or flatbed services for the first eleven(11)months (gold fill)and the final two(2)months of the audit period(light green fill).Additionally,the difference between the eleven(11) month average dollies or flatbed services charged and the two(2)month average of the same fee,was calculated. When contacted, Beach Towing's representative stated via email that the reasons for the significant increase in dollies or flatbed services fees charged were due to the City's raising of the streets and the tow company's loss of access to two of its three entrances/exits. He claimed that the one remaining entrance/exit is subject to a sidewalk grade that causes vehicles to bottom out, thereby causing damage, and that they had notified the City Administration of this issue since at least 2016. Furthermore, when asked for the reasons concerning the decrease in dollies or flatbed services fees charged commencing mid-August 2018 through October 2018, Beach Towing's representative responded as follows: "....on August 17, 2018 both companies voluntarily agreed not to assess flatbed/dolly fees unless a City agent is present to notate the use of such equipment at the originating site of the tow. As previously explained, dollies/flatbeds are not always used at the initiation of the tow. This was a temporary and good faith proffer to avoid any confusion or misperception regarding the assessment of such fees due to inaccurate reporting by the media. It was both companies intention to address this temporary and voluntary practice with the City Commission when the towing permits were renewed in December 2018, but the opportunity did not present itself. It is both companies intention to revisit this matter with staff and/or the City Commission in the near future:In sum, both companies are still using flatbeds/dollies consistent with their historical practices; however, they are voluntarily waiving the flatbed/dolly fees for tows where a City agent is not present to notate the use of such equipment". OIG staff contacted the tow companies and City representatives to determine the date that both parties mutually agreed to terminate this practice, but no documentation was received. Consequently, it was assumed that they remained in effect at least until the December 2018 City Commission meeting based on the above email. 19A/413A2 It was subsequently confirmed with the City's Public Works Department that no material changes have been made to the street or the grade of the sidewalk since 2016 as the streets were raised prior to that time. Since Beach Towing has visible cameras to record the activities occurring outside their offices, OIG staff requested access to view this footage to determine if dollies or flatbed services were provided for tested tows other than at the original tow location. However, their representative in a February 4, 2019 email stated that "Neither company has any footage responsive to your request nor are they required to." OIG staff covertly observed towed vehicles on two different occasions in January and February 2019 in which it was noted that some vehicles with chassis low to the ground were successfully being delivered to Beach Towing's facility without the usage of dollies or flatbed services. Examples of some of these towed vehicles being delivered are shown in the following pictures taken from the video recordings. The objective was not to determine whether dollies or flatbed services were charged for these specific transactions, but whether they were needed to navigate the dip and to safely enter the tow yard without damaging the vehicles. i td '' 'Mks { # ► - ,.$` ------.t C,. _-f 4or Q 0 A* ''''' .--. ' . �( r J` !^gibtt d ° ::::4:44, .,Icl , . -, - ` rte - �.1. _ r ` Y j_:,;_e-� . ' it, , r- w' ,-- i':l} I • t- _j - lir .5., ,r 1".. , I'. 41-1‘i ��S -� y, i• .v=1/1) jar' \ ''-'1, ,....0: ' ,j 0 3 __. . v. ----0 c;., .,_... c, li.t Aostiho.„ .A., - Alb _. °4 � sa Allp, , -- - 4 - - i'A [ /- _ f. - (', , i X j3 ta' Fl 12 Gt 13B2 ,' a s g. , 1r Vit ',-- ' —- —0-4 4 ' A Of r 4 ' t , ,:t_.-4 +* rte - =ti„ _.„........„. _ .. _- __ .._. _. _,A.,„ _. 'rt,P -"N- - r- ' - A Miami New Times article dated August 16, 2018, entitled "Beach Towing Tacks on Bogus !'Flatbed" Fees, South Beach Driver Says"' discussed the apparent overcharging of the dollies or flatbed services fee to a customer. A follow-up Miami New Times article dated August 23, 2018 entitled "Miami Beach Cracks Down on Bogus Flatbed Fees From Towing Companies"2 commented that the Parking Department management informed both tow companies to only charge dollies or flatbed services fees if they were used in public view at the tow locations with a City agent present. To determine this statement's impact, a more detailed analysis was performed to determine the frequency of dollies or flatbed services fees charged daily (see Exhibit 9), which showed a decrease in charges after August 22, 2018. Furthermore, Exhibit 10 below shows a linear trend analysis on the frequency of dollies or flatbed services fees charged daily for the days between August 23, 2018 through October 31, 2018, or after the decrease was detected. It may be observed that there is an upward trend on the number of dollies or flatbed services charged after August 22, 2018. However, OIG staff could not ascertain whether all dollies or flatbed services fees charged, prior and subsequent to the decrease detected, were or were not justifiable. Exhibit 9 Dollies or Flatbed Services Charges s —0e+i,rowry vaa u As u 'Y y UH 41, i1 I 1, a1 'b . YlAiC,[! 41\11A, N1f.. ._ Iflf_ t1 !1 pll !1) 1It 1 I l]' '0 1 1 1 e 1!11" 1 1.• I.1 1 1.1 1 f I 1 1 e 1! I l I 1 I 414 1 Il• {3 S'S5 35 33i:T'S 1 5519 IN ziia�45oe's, 31;v6v4445 •34'444ISR44441443 �q..... ass: a :sz zs a�. -:=1 -,1�4-1"1.::=1=11"-:-�k�1a-1 {I,-7....A:y�_1.,.. 1j i,_1-_I_It.._(g EAIR'114 e..iii£:- .- " :.1-112i111"-i1 -la-_ =t-- - to Mil Exhibit 9 shows the number of dollies or flatbed services charged per day during the months of July,August and September 1 '11`` .,::1.: ;roar r;v..'.1rles.co-,/C'o ?er:2ilntV,ew 1CuJ26 2 2 n:Ips' V,W ma.,,,re",,ernec 'moo i f'o; 1S)cs49222 "Q I $ 330 of tTS2 of 2018. As shown above,a significant decrease in dollies or flatbed services charges occurred after August 22nd,2018. Exhibit 10 Dollies or Flatbed Services Charges low," —_Usti,(Math Tosan �• f afff 1 I1 344 ...� 1 it t1t 11a7aa , St ' t 1 1 t t ! \a/\,.1\1A ja a' CC cc C CC6c C ct CGctGCc p Y7 !PIO � s7Y - xxpax ;l;= sd : 0' !" 11=I . : : xl•I l�l I� . 1.1: _;: $ _.I. : , _ : .I, - nu Exhibit 10 shows a linear trend analysis on the frequency of dollies or flatbed services charged per day from August 23"', 2018 through October 311',2018.As shown above,an upward trend of dollies or flatbed services charged occurred. Next, OIG staff reviewed all Parking Department tow impound documentation, as well as all tow receipts for the randomly selected seven-day period of October 9, 2018 through October 15, 2018 (178 tows). As only seven of these tested tows included the$40 dollies or flatbed services charge, the subsequent seven-day period, covering October 16 through October 22, 2018, was also tested, which increased the sample size to a total of 21 transactions. The objective was to observe the corresponding Parking Department's body camera footage to determine whether dollies or flatbed services were provided at the original tow location for charged customers consistent with the terms agreed upon, as indicated in the August 23, 2018 newspaper article and the tow company representative's email. Of the 21 tows reviewed on body camera footage that charged the $40 fee for dolly or flatbed services between October 9, 2018 and October 22, 2018, it was found that three were inconclusive as the reviewed Parking Department body camera footage did not capture the entire tow. For the remaining 18 tows, it was determined that 11 were properly charged, and that seven were overcharged as dolly or flatbed services were not used at the tow location. As a result, it was concluded that Beach Towing was not fully complying with the August 2018 agreed upon terms and these seven customers were overcharged by $280 ($40 x 7 = $280). Recommendations: The City Commission and City Administration should consider that the next Towing Permit include the following provisions: a. Preclude the towing companies from billing for dollies or flatbed services unless they were used at the tow location and the VSR is noted as such by the Parking Enforcement Specialists. b. Require that during the vehicle retrieval the customer be provided, along with the invoice, a picture of the vehicle on a dolly or a flatbed whenever a charge for such service is included, as well with any VSR submitted to the Parking or Police Departments as part of the City's billing process by the towing companies. The picture should show the vehicle license plate " for accurate identification. c. Allow for financial penalties that either the City and/or the vehicle owners could levy against a towing company in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Pagr.31:4 of att 2 Beach Towing's Response: See Appendix B Finding#2: Customers Overcharged by Incorrectly Rating the Towing Weight Classification Section 22(B)through (E)of the Towing Permits details the hook-up fees for the different classes of vehicles ranging from $140 for Class "A" tows to $200 for Class "D" tows. In summary, the Towing Permits allow the applicable tow company to bill hook-up fees based on the class of the wreckers/tow trucks and/or car carriers as defined in Section 11 of the Towing Permits below: A. Class "A" wreckers and slide back car carriers -commercially manufactured unit, with a rated capacity of not less than 10,000 pounds, GVW(gross vehicle weight) B. Class "B" wreckers - commercially manufactured units, with a rated capacity of not less than 18,000 pounds, GVW Class "B" slide back car carriers — commercially manufactured unit, with a rated capacity of not less than 20,000 pounds, GVW C. Class "C" wreckers — commercially manufactured unit, with a rated capacity of not less than 36,000 pounds, GVW According to the website automotozine.com3, the gross vehicle weight (also known as gross vehicle weight rating) is explained as "...a safety regulation used to prevent the overloading of vehicles. it's the maximum safe operating weight of a truck, including ifs net weight, plus driver, passengers, cargo, and fuel. The gross vehicle weight rating doesn't change after a manufacturer determines it for a vehicle". Given this information, OIG staff found it difficult to believe that the intent of the Towing Permits is to allow the tow companies to charge the customer higher rates when they use a larger wrecker than is needed to tow a vehicle. In other words, the OIG position is that it would only be proper to charge the customer hook-up fees of $200 (Class 'D") on an occasion when a Class "D" wrecker is needed to tow a vehicle with a GVW requiring the larger wrecker, rather than charge the higher fee when a smaller wrecker would have been appropriate for the tow. A legal opinion from the City Attorney's Office was requested to confirm the OIG position on this issue, and the following response was received: "The maximum allowable rate to be charged by Beach Towing Services, Inc. or Tremont Towing, Inc. (collectively, the "Towing Permittees") for any vehicle tow must be based upon, and solely depend on, the Gross Vehicle Weight ("GVW") of the actual vehicle being towed, irrespective of the classification of the wrecker("A", "B", "C" or "D") which is utilized for the towing of said vehicle by the respective Towing Permittees. In other words, pursuant to the Towing Permits, there is no prohibition on the Towing Permittees employing a wrecker with a rating capacity greater than necessary to accomplish the tow of a particular vehicle. However, should the Towing Permittees utilize a wrecker with a rating capacity greater than necessary to effectuate the tow of a particular vehicle (when a wrecker of a lesser rating capacity could safely carry out such tow), then the affected customer should only be 3 hrps_1 13;OrnOtOZIne cormcr oss—verrcle-we cri-rai,4rI :Q2cp_line/ FPaNe36o6 1 2 charged based upon the rates set forth in the Towing Permits for the lowest rated (least expensive) wrecker class that could have been utilized to accomplish the tow based upon the towed vehicle's GVW." In addition, OIG staff made the following additional assumptions: a. Class "D" wreckers are not specifically addressed in the Towing Permits; therefore, OIG staff assumed they would contain a rated capacity of more than 36,000 pounds (the maximum weight limit for Class "C" wreckers). b. As the rated capacities for Class "B" wreckers and side back car carriers was slightly different (18,000 vs.20,000 pounds respectively),that any vehicles whose GVW was more than 10,000 pounds but did not exceed 18,000 pounds would be charged Class "B" hook-up fees. if the vehicles GVW exceeded 18,000 but not 36,000 pounds, then it would be charged Class "C" hook-up fees. • Testing was performed on the Parking Department's requested tows during the audit period to determine Beach Towing's compliance with Section 22(B)through (E)of the Towing Permits. As such, OIG staff identified 11,614 Parking Department requested tows billed hook-up fees by Beach Towing according to the Parking Department's Excel monthly spreadsheets. Although these tows were not listed as Class "A", "B", "C", or "D" on these spreadsheets, all tested tows were systematically classified based on their corresponding fees charged to non-residential customers (ex. $140 = Class "A", $145 = Class "B", $175 = Class "C" and $200 = Class "D"). Exhibit 11 below shows the number and percentage of Parking Department requested tows performed by Class for each towing company during the audit period based on the Excel spreadsheets listed data. Exhibit 11 ?Beach Towing ;Tremont Towing Count of Class %of Class Count of Class %of Class Breakdown Breakdown Breakdown Breakdown Class A 11,067 95.29% Class A 11,250 99.61% Class B 459 3.95% Class B 28 0.25% Class C 74 0.64% Class C 5 0.04% Class D 14 0.12% Class D 11 0.10% Grand Total 11,614 100.00% Grand Total 11,294 100.00% This analysis solely included tows in which hook-up fees were charged to customers according to the Parking Department's provided monthly Excel spreadsheets. Any tows performed where hook-up fees were not assessed were excluded from analysis,which included tows of abandoned vehicles,instances where the tow documentation was apparently not submitted by the tow company as no information was recorded in the spreadsheets, and any tows performed on a"no-charge"basis which included towing services provided for City vehicles,crime victims,etc. As shown above, Beach Towing performed 11,067 Parking Department requested Class "A" vehicle tows, which represented 95.29% of its total tows during the 13-month audit period. In addition, Section 22 of the Towing Permits states, "The permittee shall not charge in excess of the following maximum allowable rates established by the City (as same may be amended from time to time) ..." Consequently, the $140 Class "A" tow fee is a maximum allowable rate and not a fixed rate, so there is not known material risk of overcharging based on gross vehicle weight as all tows assessed hook-up fees greater than $140 would be classified as either Class "B", "C", or "D"tows. As there are not known associated risks in Class"A" tows for the City and the customer, F * f $2 no additional testing was performed in this area. Instead, OIG staff's focus was on the tows in which the hook-up fees charged exceeded $140, which represented 4.71% of all the reported Beach Towing tows. Each sampled vehicle's make and model was obtained from the vehicle identification number and/or license plate number listed on the VSR as well as any attached supporting documentation. Next, the gross vehicle weight ratings were obtained from Internet searches of the manufacturers' websites for these specific vehicles, which was compared to the gross vehicle weight limits specified in Section 11 of the Towing Permits. As a conservative measure, the vehicle's most comprehensive trim available (the largest engine, extended cab, 4x4, etc.) or the highest gross vehicle weight ratings listed for each of the tested vehicles was always selected. Appendix A located at the end of this report lists the tested vehicles for each Class and their corresponding impound numbers, make and model, gross vehicle weight ratings, etc. Due to its large size (459 Class "B" + 74 Class "C" + 14 Class "D" = 547 total), OIG staff randomly sampled 60 Class "B" hook-up fees and reviewed all 74 Class "C" and all 14 Class "D" hook-up fees for further analysis. In summary, the following results were obtained: a. Of the 60 randomly sampled Class "B"charged tows, there was insufficient information on the VSRs for two of the tested vehicles to determine the make and model classification needed to accurately determine their GVW. For the remaining 58 vehicles, it was concluded that three were correctly charged, as their GVW was more than 10,000 but less than or equal to 18,000 pounds, and that 55 were overcharged, as their GVW was less than or equal to 10,000 pounds. b. Of the 74 Class "C' tows analyzed, the GVW for one Lincoln Town Car limousine could not be accurately determined. All 73 of the remaining Class "C" tows were found to have been overcharged as none of the vehicles researched contained GVW ratings more than 18,000 pounds but less than or equal to 36,000 pounds. c. Of the 14 Class "D" vehicle tows analyzed, there was insufficient information on three VSRs to accurately determine their GVW. Of the remaining 11 Class "D" vehicles, ten tows were deemed to have been overcharged as their vehicles GVW was equal to or less than 36,000 pounds and one was correctly charged. Lastly, the entire population of tows listed in the Parking Department's Excel monthly spreadsheets was reviewed, and it was determined that four tows were charged hook-up fees that exceeded the $200 Class "D" maximum allowable rate established in Section 22 of the Towing Permits. Inquiries were made to Beach Towing's representative, who provided the explanation that one tow customer was charged a lump sum $219 fee, and that the remaining three tows were erroneously billed $300 each or $100 more than the maximum allowable rate ($100 x 3 customers = $300). These four tows were also included in the analysis above concerning the vehicle's gross vehicle weight ratings. Recommendations: The City Administration and/or City Commission should consider implementing the following recommendations to improve customer knowledge and to increase Beach Towing's responsibilities: a. The Towing Permits, the Towing Bill of Rights and the signage displayed at Beach Towing's offices should more clearly define the applicable hook-up fee charges and the corresponding GVW ratings so that tow customers can better understand which fees are valid for their vehicle. PavE363 6612 b. The burden of proof should be on the tow companies to prove that any charges other than the Class "A" hook-up $140 fee are valid rather than leaving it to less informed consumers to • figure out the charges. c. The Towing Permits should allow for financial penalties that either the City and/or the vehicle owners could levy against the tow companies in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Beach Towing's Response: See Appendix B Finding #3: Customers Were Overcharged for Labor to Engage/Tow Fees Not Rendered Section 22(H)(5) of the Towing Permits states that the $30 labor to engage/tow fee "... is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow the vehicle." This fee is to be charged when the tow truck operator needs to enter the vehicle to disengage the emergency brake or straighten the vehicle's wheels to facilitate towing. Consequently, the tow truck operator would have to enter the vehicle at the tow location to facilitate the tow and to avoid damaging the vehicle. As the 21 reviewed Parking Department transactions in finding #1 included fees for labor to engage/tow, as well as service charges of use of dollies or flatbeds, OIG staff examined available body camera footage to determine if Beach Towing's tow operators entered the vehicles at the tow locations. In doing so, it was found that six tows were inconclusive, as the body camera footage did not accurately capture the entire tow. Of the remaining 15 tows observed during the 14-day period of October 9, 2018 through October 22, 2018, it was concluded that four customers were properly charged labor to engage/tow fees as the tow operators were observed physically entering the vehicles, and 11 customers were overcharged because no entry of their vehicles occurred. Therefore, it was concluded that Beach Towing was not fully complying with Section 22(H)(5) of the Towing Permits terms and that these 11 customers were overcharged by a total of$330 ($30 x 11 =$330) A similar review of the Police Department's tow impound documentation, as well as all invoices for the seven-day period of October 9, 2018 through October 15, 2018 was performed. Upon reviewing the body camera footage retained by the Police Department for the corresponding nine tows, it was found that six were inconclusive, as one could not tell if Beach Towing staff physically entered the vehicles at the tow locations. Of the remaining, it was determined that all,three were overcharged, as the tow operators were not observed entering the vehicles at the tow locations. As a result, each of these three (3)customers was overcharged by$30 for a total of$90 ($30 x 3 _ $90). In sum, 30 Parking and Police Department tows with body camera footage were reviewed to verify whether the $30 labor to engage/tow fees were properly charged to tested October 2018 tow customers. Of these tows, 12 were inconclusive as OIG staff could not determine whether the tow operators entered the vehicles at the tow locations. For the remaining 18 tows, it was concluded that four were properly charged and 14 were overcharged by a total of$420($30 x 14 fes9$63f1s$2 = $420). OIG staff also analyzed how often the $30 labor to engage/tow fee was charged during the 13- month audit period based on the data in the Parking Department's monthly Excel spreadsheets. The results of this analysis showed that Beach Towing charged this fee for 11,441 of the 11,614 tested tows occurring between October 1, 2017 and October 31, 2018 (98.51%), which resulted in $343,313 being charged to their tow customers (see Exhibit 12 below). Exhibit12 Labor to Engage/Tow Fees`.Labor Charges Analysis Count of Labor Charges of Labor $Labor Hookup Fee Charges Charges ='2017 October 855 843 98.60% $25,285 November 769 755 98.18% $22,735 December 956 945 98.85% $28,605 - 2018 January 876 869 99.20% $26,055 February 822 812 98.78% $24,313 March 1,211 1,191 98.35% $35,690 April 880 872 99.09% $26,155 May 869 855 98.39% $25,625 June 847 839 99.06% $25,140 July 957 941 98.33% $28,205 August 886 865 97.63% $25,935 September 834 817 97.96% $24,485 October 852 837 98.24% $25,085 dr---ridaTotal 11,614 11,441 98.51% $343,313 Exhibit 12 shows the number of labor to engage/tow fees (abbreviated as labor charges above) charged relative to the number of hook-up fees assessed,their corresponding percentage,and the dollar amounts associated with the total number of labor charges per month and cumulatively for the audit period October 1,2017 through October 31, 2018. The maximum allowed labor charge is$30 per instance,which is the most frequent recorded amount;however, actual individual charges occasionally varied from this amount. A closer review of the labor fees charged to engage/tow, as listed on the Parking Department's Excel monthly spreadsheets, found that seven tows exceeded the $30 maximum allowable rate, which were subsequently emailed to the Beach Towing representative for an explanation on February 1, 2019. On February 6, 2019, satisfactory explanations were received for four of these tows; however, the explanations provided for the remaining three were insufficient to clearly determine the reasons for the overcharges. OIG staff determined that the labor fees on these three tows were overcharged by an estimated $70.50. In response, the towing company's representative stated that these amounts also included "special and additional charges" allowed under Section 22(H)(1) of the Towing Permits. This section states that any extra labor or extra waiting time may be charged at a rate of $16.50 per hour, after the first 30 minutes at the scene and prorated after the 1st hour in 15 minutes increments. The three (3) explanations were considered insufficient because they were incorrectly calculated based on the Towing Permits' maximum allowable rates and the information listed. For example, the representatives' response for the vehicle with impounded number 148580, for which a labor charge of $60 was made, is "The labor fee did not exceed the maximum allowable rates. A $30 labor fee was charged. In addition to the $30 labor fee, additional labor in the amount of$33 was charged pursuant to Section 22(H)(1). The tow took a total of 1 hour to perform, including disassembling the drive shaft at the point of the tow, and reassembling the drive shaft". A51009011%2 61 $2 In addition to the fact that the implied total amount charged in the response does not match the actual labor amount charged ($30+ $33 #$60), it is stated in Section 22(H)(1)that the charge for one (1) hour of extra labor or waiting time is $8.25 (1 - 0.5 hours = 0.5 hour x $16.50) if the first half hour is discounted. Thus, OIG staff determined that the labor to engage/tow fee on these three tows was incorrectly billed in that customers were charged fees ranging from a low of $60 to a high of$90. Recommendations: The City Commission and City Administration should consider that the next Towing Permits contain provisions as follows: a. Preclude the towing companies from billing for labor to engage/tow fees unless the VSRs are noted as such by the Parking Enforcement Specialists present at the tow locations. b. Require that the customer be provided during the vehicle's retrieval, along with the invoice, one or more picture(s) of the vehicle with the door open when this charge is billed, as well with the VSR when the document is submitted to the Parking or Police Departments by the tow companies as part of the City's billing process. The corresponding picture(s)should show the vehicle's license plate for accurate identification. c. Include financial penalties, that either the City and/or the vehicle owners could invoke against the tow companies, in the event of verified overcharges, similar to Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109. Beach Towing's Response: See Appendix B Finding #4: Insufficient Information to Assess Storage Fees Section 22(A) of the Towing Permits provides that the first eight hours of storage shall be without charge and then lists the daily storage rates based on the type and size of vehicle. On average, Beach Towing charged customers' storage fees for 18% of its tows as most vehicles were retrieved within eight hours. Upon reviewing the furnished Beach Towing documentation, OIG staff could not determine whether the charged storage fees were applicable as their employees typically did not record the time/date that the customers retrieved the vehicles. Recommendations: The City Administration and City Commission should consider that the next Towing Permits include the following provisions: a. Require that an automated time/date stamp be used rather than manual notations to help reduce the possibility of errors or manipulation, and that this information be made available to the City upon request. In the interim, Beach Towing staff should either use military time or denote the time as AM or PM to facilitate storage fee calculations. b. Require that customers receive copies of their VSRs, which contain the times that their . vehicles were towed, so that they can accurately determine whether any storage fees charged FPaillEag@ PAt 2 are appropriate. The tow companies should have the responsibility to fully explain any additional charges to the customer before they are billed and make payment. Beach Towing's Response: See Appendix B Finding #5: Sales Taxes Charged and Collected on Police Department Requested Tows Appear to be Inappropriate A review of the supporting documentation provided for Beach Towing's 178 sampled tows, occurring between October 9 and October 15, 2018, found that they were consistently charging 7% state sales tax on any amounts collected for administrative and/or storage fees. OIG staff did not analyze Beach Towing's monthly state sales tax returns to ensure that the correct amounts were remitted as this report focused only on public tows and any sales tax monies paid would also include any private tow taxable amounts, precluding a segregation of sales tax amounts charged on public tows. However, a review of the State Statutes and ancillary documentation such as TAA — 1034634 found that the administrative and/or storage fees are not taxable for vehicles lawfully impounded for legal reasons. In subsequent conversations with the City Attorney's Office, it appears that the Police Department requested tows are not subject to state sales tax based on the known information. Although the exact amount collected in state sales taxes is not known as the Police Department did not create and maintain monthly Excel spreadsheets like the Parking Department, a portion may have been unnecessarily charged and collected. Recommendations: Beach Towing should confirm with the State of Florida before taking any definitive action; however, OIG staff's position is that the 7% state sales tax should not be charged on administrative and/or storage fees for vehicles lawfully impounded for legal reasons (Police Department requested tows). If subsequently confirmed by Beach Towing with the State of Florida, they should discontinue charging and collecting sales tax on these tows, but until then all amounts collected should be timely and completely remitted. Beach Towing's Response: See Appendix B Finding #6: Deficiencies on the Required Insurance Coverage Section 4 of the Towing Permits specifies the required insurance coverage to be in full force and effect at all times throughout the term. A copy of Beach Towing's current insurance policy was requested and promptly received from the City's Parking Department. As it had not been previously reviewed by the City's Risk Management Division for sufficiency, OIG staff met with 4 naps ilrevenuelotA {lonciar v nuo,c rrilawLibraryDocurnents/?01' 39,13aA-1J3463 FPatge35 dff 1N2 that Division on January 31, 2019, which led to the following deficiencies being noted: • Evidence was not provided to the City indicating that they had either obtained the required workers' compensation coverage or submitted a document stating that they have four or less employees and are not required to have this coverage. • The City is not named as an additional insured in the "Description of Operations/ LocationsNehicles" section. Recommendations: Beach Towing should always maintain the required insurance coverage in accordance with the Towing Permits. The coverage deficiencies listed above should be promptly corrected. Also, the Parking Department Director and/or the Police Chief should instruct their designated staff to periodically verify that Beach Towing maintains the required insurance coverage in accordance with the Towing Permits. Beach Towinq's Response: See Appendix B RECENT UPDATES As any identified deficiencies plus the Parking Department's Excel spreadsheets containing the total tow population during the audit period had been previously forwarded to the auditees and two exit conferences to discuss the audit findings had already been held during 2019, a third exit conference was not deemed necessary. Instead, the draft reports for both Tremont Towing and Beach Towing were emailed to their shared attorney, Rafael Andrade, on July 15, 2020 in which both companies were given 30 working days, or until August 27, 2020, to provide their management responses in compliance with to Section 2-256(h), City of Miami Beach Code. Mr. Andrade then requested OIG's supporting documentation related to findings 1, 2, and 3 in emails sent between the 18'" and 20th of August. The OIG provided the requested information to the City Clerk's Office on August 241h. Mr. Andrade was notified via email on the same day that the eight CDs containing the requested information were available from the City Clerk's Office upon receipt of the payment of the cost of preparing the information. As of August 26th, the information still had not been retrieved from the City Clerk's Office, but the tow companies' attorney was requesting additional time until September 30th. The City's Inspector General agreed to extend the time to provide responses until September 7th at 5pm. In regard to finding #2, Mr. Andrade not only requested the supporting information for the 60 randomly sampled Class B tows, but also for the remaining 399 Class B Beach Towing tows that Were not tested by OIG staff, and as such, had riot been addressed in any-of the three draft towing reports. Nonetheless, OIG staff identified and submitted on September 7'h all known information for these 399 Class B tows, including the impound numbers, to Mr. Andrade. As a courtesy, the City's Inspector General extended the deadline for responses to both tow reports to September 9th at 5pm. Mr. Andrade requested an extension to at least September 16th to perform research and test these additional 399 Class B tows, which was declined by the Inspector General on September 81h. Mr. Andrade provided a response on September 9'h for the Beach Towing audit in which he claimed IPAJLe3M Fff 452 that the Inspector General failed to disclose to the City Commission that on or about December 4, 2019, he had referred the Beach Towing audit to the Miami-Dade State Attorney's Office(SAO) for criminal investigation, and that inasmuch as Beach Towing is under criminal investigation it would refrain from addressing the allegations until the SAO completes its investigation. The response is attached to the Beach Towing audit report. Mr. Andrade did not respond on behalf of Tremont Towing. App oved by: .i+` . • / - a l /go aa o1' -ntorino, Inspector General Dat Reviewed by: OA/IL Mark Coolidge, Chief Audito Date Completed by: I 2'i 2-01Q Norman Blaio�(ta, Dep. Chief Auditor Date cc: Jimmy L. Morales, City Manager Eric Carpenter, Assistant City Manager Saul Frances, Parking Director Richard Clements, Police Chief John Woodruff, Chief Financial Officer Michael Smith, Human Resources Department Director QdV93or13R2 Beach Towing Services, Inc. -Towing Permit Compliance Audit- September 24, 2019 Appendix A.Tested vehicles for each tow class assigned and their corresponding impound numbers,make and model,gross vehicle weight ratings,etc.(Finding 1) ` Green a Overcharged Class B Tows i Blue a Overcharged Class C Taws 1 Orange=Overcharged Class D Tows . *1 Tows Slows Impounded Vehicle Gross Weight Hookup Fee Tow Class Assigned(Based on Overcha : d Tested Impounded-Number,,Date/Time Impounded From Location Vehicle Brand/Model Vehicle Year Rating.(GVWR)lbs. Charged Hookup Fee Charged) 1 t 144337 03/26/18.800 MICHIGAN AVE,Miami Beach Hummer 112 1992-2006 10300 5145 8 2 128828 10/09/17'300 24TH ST Miami Beach lord Transit 350 v 7..016 10 360 $145 8 v 3 128798 10/09/179 ISLAND AVE Miami Beach Ford F350 2017 14,000 5145 B 4 13880503/23/18 400 16TH ST But,Miami Beach Kenworth 1680 2015 52,350 5200 y 0 -I 1 5 f} .129304 . 10/18/17 8300 HAWTHORNE AVE,Miami Beach Ford Expedition Lintited • 2010 7,900 $145- B E--- 2 6i 129378 10/19/17 100 LINCOLN RD,Miami Beach Chevrolet Express 1500 ,._ 2008 7,200 $145 B 3 7 129441 I 10/20/17 1900 BAY RD,Miami Beach land Rover Range Rover 2017 6345 $145 8 4 8 129736 10/25/1711600 WASHINGTON AVE.Miami Beach Mercedes-Benz G550 2013 7,055 5145 B _ _ 5 9 129952 10/29/1.7 1900 BAY RD,Miami Beach • Mercedes-Benz GL63AMG 2014 7,165 5145 B 6 10 130231 11/03/17 1600 ALTON RD,Miami Beach Jeep Grand Cherokee Laredo 2017 ' 6.500 5145 B 7 _ 11 130583 i 11/09/17 200 23RD ST,Miami Beach Ford Transit.150 2015 8.600 5145 8 8 12 131167 11/20/17 1400 14TH ST,Miami Beach Ford F250 2003 8.800 $145 B ^-9~^ 13 i 131030 12/05/17 100 20TH ST,Miami Beach Toyota Tundra 4 Door 2015 7,000 5145 a 10 14 131938 i~ 12/05/171300 23RD ST,Miami Beach Ram 1500 SIT 2013 6,800 $145 B 11 15 132418 , 1.2/12/1711700 PURDY AVE,Miami Beach Nissan NV 1.500 2013 8,550 5145 B _12 16 133030 12/22/17,1130'OCEAN DR,Miami Beach- RAM 1500 2017 • 6,900 5145 B 13 17 133520 12/30/17 2100 VJASHINGTON AVE,Miami Beach -- Chrysler Pacifica Touring 2017 6,005 5145 B ___ 14 18 133849 01/04/18 1423 COLLINS AVE,Miami Beach Chevrolet Silverado 1500 20157,600 5145 B _____ 15 19 133972 1 01/06/18 1800 BAY RD,Miami Beach GMC Yukon 2017 , 7,500 5145 B _ 16 20 134250 _01/11/18 000 ISLAND AVE,Miami Beach Land Rover Range Rover 2017 6,945 5145 B_ - 17_ 23 �_ 134372 i • 01(13/18.1600 MICHIGAN AVE,Miami Beach Ieep Grand Cherokee Limited .. 2015 6,500 $145' 8 18 22 I 134722 = 01/18/18 4600 COLLINS AVE,Miami Death - Ford F150 2007 8.200 5145 B 1923 S 135143 01/25/18-1200 20TH ST,Miami Beach . Jeep Wrangler Unknown 5000_ 5145 _ 8 !_ _ 20 24 135893 t 02/07/18 1567 MERIDIAN AVE,Miami Beach Chevrolet Silverado 1500 2007 6,800 5145 8 21 25___ 135897 i 02/07/18 300 20TH SI,Miami Beach Toyota Tacoma Preruner SRS �_ 2007 _ 5,450. 5145 _ 8 22 26 136731 02/21/18,000 ISLAND AVE,Miami Beach BMW XS 201.4 6,063 5145 8 23 27 136755 02/22/18400 2151ST,Miami Beach GMC Yukon 2018 .7,500 $145 8 24 28 I 136926 02/24/181200 11TH ST,Miami Beach Nissan NV 1500 2015 8.550 5145 8 1 25 29 137088 i 02/26/18%300.74TH ST,Miami Beach Chevrolet Suburban-1500 2015 _-_ 7,500 5145 8 J 26- 30 137541 03/06/181000-WASHINGTON AVE Ford Transit Connect XL 2012 . 5,005 $145 B 27 31 137699 03/09/18 11 ISLAND AVE,Miami Beach Ford F150 Lariat 2016 7,850 $145 B 28 32 138566 I 03/19/1811800 BAY NO,Miami Beach Toyota Tundra Unknown .) 7,200 5145 B _ 29 33 � 138632 03/20/18 10_0 7TH ST,Miami Beach Ford Transit 150 Cargo 2015 T- 8,600 5145 B 30 _ 34 J 138636 --� 03/20/18 1880 WEST AVE,Miami Beach Land Rover Range Rover 2016 1 - 6,945 5145 B 31 35 138640 • 03/20/18)5 ISLAND AVE,Miami Beach_ Ford"transit 150 Cargo 7015 i 8,600 5145 • B 32 36 138776 _ I 03/22/1811 WASHINGTON AVE,Miami Beach Nissan NV 2500 2016 �� 9.100 5145 -B 33 _ _ 37 139170 03/26/181100 18 ST,Miami Beach Chevrolet Suburban 1500 2018 7,300 5145 B _ -y 34- 38 ` 139338 i, 03/28/181000 WASHINGTON AVE,Miami Beach Chevrolet Express 2500 2012 I 9,460 5145 _- B �� 35y 39 -` 139983 04/06/18700 WASHINGTON AVE,Miami Beach Ford Transit 250 2017 1 9,000 5145 8 36 40 140235 04/09/18 2600 COLLINS AVE,Miami Beach Jeep liberty Sport 2010 ; _ 5,675 5145 8 37 41 141594 . 05/03/18 1600 ALTON RD,Miami Beach . Chevrolet Suburban 2018 { 7,300 $145 B 38 42 142043 05/11/18 100 7TH 51 ' Nissan NV 1500 - 2016 1 8,550 $145 B 39 43 1 142424 05/18/18 944 COLLINS AVE,Miami Beach _GMC Yukon 2017 7,500 5145 8 40 44 143419 06/03/18 1500 LENOX AVE,Miami Beach Ford EIS°Van 2008 8,600 $145 .1._ a 41 45 1 144415 06/21/18 10010TH ST,Miami Beach Ford F1S0 Unknown 8,200 5145 8 42^___ 46 [ 144421 06/21/18 300.238057 Lincoln Navigator - 2003 ) 7,450 5145 B Page 400 of 1252 Page 24 of 30 Beach Towing Services, Inc. -Towing Permit Compliance Audit- June 3, 2019 w _ 4347 144855 06/29/18 1900 PURDY AVE Ram 1500 Laramielonghorn 2016 6,950 5145 B 44 48 144867 1 06/29/18 100 20TH ST • Chevrolet Express 3500 2009 '9,600 5145 B 4549 145133 07/02/18 1400 PENNSYLVANIA AVE,Miami Beach Chevrolet Suburban 1500 2018 7,300 $145 B 46 50 145297 I 07/05/18 200 JEFFERSON AVE,Miami Beach Nissan Armada 2017 7,500 $145 B 47 51 145544 i 07/08/18 1400 18TH ST. Chevrolet Suburban 20137,400 5145 8 48 52 146534 07/23/18 0 WASHINGTON AVE Ford 6250 Van Econoline 2012 9,000 5145 8 49 53 146965 07/31/18 1600 ALTON RD,Miami Beach „ Cadillac Escalade Ultra 2009 7,300 $145 B 50 54 147360 i 08/06/18 1100 WEST AVE,Miami Beach Ford E250 2006 8,600 5145 B 51 55 148072 08/18/18 300 24TH ST Chevrolet Tahoe 2018 5.300 5145 0 52 56 148106 a 08/18/18 1600 ALTON RO Lexus GX 460 2017 6,600 5145 8 53 57 148704 08/29/18 1000 OCEAN CT,Miami Beach Chevrolet suburban 1500 2018 7,300 5145' B 54 58 149354 09/11/18 709 ALTON RD,Miami Beach Ford 6250 2006 8,600 5145 B 55 S9 149794 i 09/19/18 20023RD ST Ford Transit 250 2018 '9,000 5145 B 56 60 146339 07/21/18 1100 WESTAVE,Miami Beach - .Chevrolet Express 1500 ' 2012 7,600 5175 C 5761 128507 I .10/04/17 1900 PURDY AVE,Miami Beach ,Dodge Sprinter 2500. 2004. 8,550 5175 .C 58 62 132958 I 12/21/17 1600 WASHINGTON AVE,Miami Beach' Mercedes Benz.Sprinter 2500 2016 » $175 - C 59 63 146557 I 07/24/18 200 72ND ST,Miami Beach Dodge Sprinter 2500 ' _ 2003 f + 5175 • C. - M______ 60 1._ 64 150276 09/27/18 2200 LIBERTY AVE,Miami Beach Mercedes Benz Sprinter 2500 2015 - + 5175 C 61 65 -151647 10/20/18 4500 COLLINS AVE ' Mercedes BenzSgrinter 2500 2012 + $175 C' • 62~ 66 152222 10/31/18 100 10TH ST,Miami Beath Dodge Sprinter 2500 2004 + $175 C _63 67 �_^� 148668 - 08/28/18 1900.PURDY AV . Ford Transit 150 X2015 •++ 5175 . C 64 68 I ' 133352 12/28/17.800.16TII ST,Miami Beach Dodge 2500.Ram - - 2000 : :a' '5175 _ C 65 69 146212 07/19/18 1200 WEST AVE,Miami Beach Ram ProMaster 2500 . - 2015 _ ++ 5175 C • 66 70 149082 t . 09/06/18 0 WASHINGTON AVE . - . - "_Ram 2500 Promaster Van -- 2015 : +-+ $175 C 67 71 148842 ` 09/01/18 49 COLLINS .Ford Excursion .'2000 8,900 -X5175 C 68 ___ 72 139340 I 03/28/18 200 7TH ST,Miami Beach Nissan'Titan XD ' 2016 - 8,990 .$175 - ..C" ' 69 73 135312 01/Z7/18 700 WASHINGTON AVE,Miami Beach " Ford Transit 250 - 2016 9,000 5175 C _. 70 74 145777 I . 07/13/18 100 21ST ST,Miami Beach•- Ford Transit 250- • - 2017. 9000 5175 C 73 75 146482 ( 07/22/18 1600 ALTON RD,Miami Beach Ford Excursion 2005 9,200 5175 C 72 76 , 131519 I 11/27/17 000 WASHINGTON AVE.Miami Beach Nissan NV 3500 S/SV. 2012 . ' 9,500 $175 C 7377 138656 03/20/18 1833 BAY RD;Miami Beach Chevrolet 610 Express ' 1997 9,500 . $175 C , 74 _ 78 130219 11/02/17 40 ISLAND AVE,Miami Beach Ford Transit 350 2017 - 9;500 5175 `C 75 79 131022 11/18/17 2000 LIBERTY AVE,Miami Beach' Ford Translt'350 2016 9,500 5175. C 76 80131030 I 11/18/17 1300 WEST-AVE,Miami Beach Ford Transit 350 .2015 •- 9,500 $175 C 77_ 81 131918 12/05/17 300 7511-1 ST,Miami Beach ford Transit 350. Y 2016 9,500 5175 '- C . 78 82 133358 12/28/17 800 OCEAN OR BLK,Miami Beach. Ford Transit 350 2017 _ � 9,500 $175 , C " • 79 83 _ 136056 ^ 02/10/18 1131 COLLINS AVE,Miami Beach Ford Transit 350' 2018 9,500 5175; • C - 80 84 136695 02/20/18,100 20TH ST,Miami Beach - Ford Transit 350 - ' 2018 . , - ' 9,500 5175 ' C 81 85 _ 137531 03/05/18 1700 JAMES AVE,Miami Beach . .. --Ford'Transit 350 - 2017 9,500 5175 C • __ 82-,__ 86 139447 03/29/18 1034 PENNSYLVANIA AVE,Miami Beach Ford Transit 350 . 2015 - I 9,500 5175 _ C ' _ 83 87 139607 03/31/18 100 LINCOLN RD,Miami Beach • • Ford Transit 350 __ 2016' j 9,500 $175 C 84 88 139339' 04/03/18 000 5TH ST,Miami Beach Ford Transit 350 2018, l 9,500 $175 C _85 89 140280 04/10/18 2100 PARK AVE,Miami Beach - ' • Ford-Translt 350 2015 .9,500 $175 C 86 � 90 _ 141758 05/05/18 2100 PARK AVE,Miami Beach lord Transit 350 _ 2038 1 9,500 $175 C . ~` 87 91 142168 l05/12/18 1400 PENNSYLVANIA AVE,Miami Beach Ford Transit 350- • 2018 1 •9,500 $175 • C _ 88 -_ 92 144343 1 06/20/18 1600 WASHINGTON AVE BLK,Miami Beach Ford-Transit 350 ' . 2017 _L 900 $175 C I -89- 93 -149611 09/15/18 1100 COLLINS AVE,Miami Beach . Ford Transit 350 - . - 201-7 i 9,500 5175 -C 90 94 __ 351145 10/12/18 100 10TH ST,Miami Beach Ford Transit 350 2018 T 9,500 - 517$ _ I C 91 95 152062 ? 10/28/18 1520 COLLINS AVE,Miami Beach - Ford Transit 350 2015 9,500 $175 .' C i 92 96 139645 - 03/31/18 400 81ST ST,Miami Beach Chevrolet Express 3500 2004 ( 9,600 5175 C Page 401 of 1252 Page 25 of 30 Beach Towing Services, Inc. -Towing Permit Compliance Audit- June 3, 2019 - 93 97 147434. ;'1. 08/0181.5000REXEL.AVE,Miami Beach ' Chevrolet Express 3500 2005 " l" - • ' 9,600 SITS C 94 98-_ • 144607 06/24/18 400 22ND ST . - Chevrolet Express 3500 2013 9,660 ' 5175 - C . 95 99 150395 S . 09/29/18- 100 10TH ST,Miami ReachNissan NV 3500 5/5V • -2012 9,900' $175 C ��96 100 130765 1 11/12/17 1900 BAY R0,-Miami Beach Dodge 5ocinter 3500 _ - 2006 9,990 5175 • • C 97 101 146676 ? 07/26/18 200 16TH ST GARAGE,Miami Beach Ford F250 2016 - 10,000 • 5175 • 98 102 146246 07/20 18 2100 MIAMI BEACH OR,Miami Beach Hummer hit 1992.2006 10,300 5175 99 103_ . ' 140934 04/21/18 100 39TH 5T,Miami Beach - 'Chevrolet Express 3500 2018 10,384 5175 100 104 142172 _ ; 05/12/18 1400 EUCLID AVE,Miami Beach Chevrolet Express 3500 2017 .• 10,384 5175 101 105 -. 148844 . 09 01/18 2009TH ST Chevrolet Express 3500 • 2018. 10,384 5175 102 106 152099• •I 10/28/18 1700 JAMES AVE Chevrolet Express 3500 2018 10,384 5175 103 107 1 144587 06/23/18 8036 HARDING AVE,Miami Beach Dad, Ram 3500 2000 ' '' 10500 5175 104 108 133772. 01/01/18 36 ISLAND AVE,Miami Beach Fora F350 1997 - 11,200 5175 IDS 109 139784 04/02/18 000 WASHINGTON AVE LOT,Miami Beach Dodz Ram 1500 , - . 2017 11,500 5175 - 106 110 • 148060 •08/17/18 1800 WEST AVE _ Ram 1500 Promaster Van 2016 • - 11,500 5175 107 111 ' 149569 • 09/15/18 1600 COLLINS AVE Dodg 'e Ram 1500.. 2017 - -11,500 5175 _ 108 112 145265 07/04/18 700 14TH 6T;Miami Beach GMC Savona 3500 2014 12,300 $175 Mill 109113 • 140888 04/21/18 700 WASHINGTON AVE,Miami Beach Ford 6350' 2016 .12,500 .5175 e110µ- 114 142953 ' '05/26/18 9006TH ST.Miami Beach Ford 6350 - -201A . 12,500 5175 111115 144637- ` 06/24/18 100 215T 5T . .Ford.E350 .-- 2013' - 12,500 $175 �� C. 112 143220 05 30/18 400 22ND ST,Miami Beach Ford F350. ' ' 7006 • - 13,000 $175 C. .. 113 117 • 140009 .' ` .04/06/1810020THST,.Miami Beach Chevrolet Silverado 3500 • 2016 •_ •' - 13.025 $175-, . C • 114 MN132791 - 12/17/17 1900 BAY RD,Miami Beach • ford F350 2017 . 14,000 $175• - C _ . 115 119 150426. 09/29/18 1800 WASHINGTON AVE,Miami Beach Ford 1350 2013 _ ,14,000 - $175 .. C 116 120 138890 . 03/23/18 900 EUCLID AVE,Miami Beach Dodge Ram 3500' 2017 " -. 14,000'- 5175 C 117 121 144255 - -; 06/18/18 200 LINCOLN R0,Miami Beach '' . Mitsubishi Fuso :" • . • 2008 : . . ' -14,000 $175' C - 118_ IIN • _137407 . § 03/04/18 300 EUCLID'AVE;Miami Beach • - . - Ford£450_ - 2007 14,050 ^ $175 • - C - _119 -. 138244 03/16/18 1300'18TH ST;Miami Beach - Ford 6450: _•. • 2002. • -14,050 • . $175 • C 120 124 IMMFMEEIMIIIB 05/04/18'1 WASHINGTON AVE LOT,Miami Beach Ford£350 : • . 2007 •- 14,050 5175 C _ 121 125 146860 07/29/18 1400IEFFERSON AVE,Miami Beach - Ford 6350 _ 2007 14,050 .$175 C 122 126 135035 . , 01/22/18700 PENNSYLVANIA AVE.Miami Beach . . Ford Van 2017. _ •.14,500 $175 -C . • 123_ IMIIIIIIIEMIN 03/10/18 1300 LINCOLN RD:Miami Beach Ford 6460 • 2017" 14,500 . $175 C 124 INNIKEZEINIE 03/26/18 2500 PINE TREE OR,Miami Beach laird 6450 - • 2009. • •14,500 $175 • C MU129 -141244 04/27/18 1000 WEST AVE,Miami Beach Ford£450 2015 _.-., - 14,500 5175 - ' C 130 142759 05/24/18 7715 HARDING AVE,Miami Beach Ford£450 2009 '14,500 5175 C 127 _ 06/02/18 800 WASHINGTON AVE,Miami Beach Ford 6450 . '2017 14500 5175 128 ' 06/02/18 SO 5 SHORE OR,Miami Beach Ford 6450 2017- 14,500 5175 129 133 • 151349 •• 10/15/18 100 10TH ST,MiamiiBBeach Dad Grand Caravan GT - 20)7 ' 6,050 $219 D , 130 134 149396_ • 09/12/18 800 S POINTE OR Mercedes-Benz$printer 2500 2011 8,550 5200- . D 131 135 128942 10/12 17 20019TH 5T BLK,Miami Beach Ford 6.350 2016 • 12,500 $200 • D 132 136 - 128511 - 10 04/17 1000 WEST AVE,Miami Beath - : Isuzu NPR 2004 14,500 $200 - • 0 133 137 130197• . 11/02/17 1100 PENNSYLVANIA AVE,Miami Beach Ford 6.450 2017 14,500 '5200 0 134 = 130940' 11/16/17 1200 20TH 57Miami Beach • HINO 155 ,2018 • 14,500 $300 D , 135 140526 '04/15/18 0 5TH ST,Miami Beach Ford 6.450 - 2011 14500 • 5200 D 136 _ 140 137154 02/28/18 100 17TH 51,Miami Beach . Mitsubishi FUSO rHH100 1995 17,995 rnw $200 D 137 141 •• 143254 05/31/18 1400 BIARRITZ DR,Miami Beach GMC CSSOOC Secres. 2006 _ 19,500 $200 0 138 142 - 148580 08/27/18 100 315T ST,Miami Beecri - GMC CSSOO C Series - 700/ • .19 500 . $200 0 _ 143 130549 11/08/17 4300 COLLINS AVE,Miami Beach Ford F750 Unknown unknown $200 D _____I 144_ 135676 02/03/18 1500 ALTON RD,Miami Beach Ford Transit Unknown unknown S145 B - 145 142065 05/11/18 1800 PURDY AVE,Miami Beach Trailer _..__ 2005 unknown 5145 B 146 144593 06/23/18 1400 COLLINS AVE.Miami Beach Lincoln Town Car Limousine 2000 ' . • unknown $175 �_- _C _ 147 13304612/22/17 2900 ALTON RD,Miami Beach ,_Peterbilt 00 2012 ,, . unknown $300_ D 148 -i 150741 10/05/18 500 WEST AVE N �� Isusu _Unknown i • - unknown $200 . D Page 402 of 1252 Page 26 of 30 Beach Towing Services, Inc. -Towing Permit Compliance Audit- September 24, 2019 Appendix B Law Offices of Rafael E. Andrade, P.A. 1688 Meridian Avenue 7th Floor Miami Beach, Florida 33139 Telephone: 305,531.9511 w w.raadradelaw.co n Facsimile: 305.5 7,3.5734 ralph@randradelaw.com VIA EMAIL AIL ONLY: JosephCentorino a mniarnibeachfl.eov September 9. 2020 Mr. Joseph Centoriao Inspector General City of Miami Beach 1130 Washington Avenue • 6th Floor Miami Beach. FL 33139 Re: Beach Towing Services,Inc.—Towing Audit OIG No. 20-18 Mr. Ceutorino: I represent the interest of Beach Towing Services_ Inc., concerning the above referenced audit dated July 15. 2020. This letter is in response to your invitation for my client to rebut the findings in the audit. Your conduct has deprived my client of the opportunity to reapond to the audit. You fail to disclose to the City Commission that on or about December 4. 2019 you referred the audit to the Miami-Dade State Attorney's Office (SAO) for criminal investigation (Exhibit A).l and that on New Year's Eve,you again contacted the SAO to induce them to take action (Exhibit B).-As a result my chert is currently the subject of a criminal investigation for the unfounded criminal conduct you allege in the audit. While my client would like to address the allegations, it artist refrain from doing so until the SAO completes its investigation_ It appears it would be in the best interest of all parties to not continent ou the audit until the investigation is complete. Sincerely. :s1 Rafael E. Andrade Rafael E. Andrade. Esq. Exhibit A w3,obtam.ed from the.'Naini.-Dade State Attorney's OEce pursuant to a Public Records Request. The ,11.3i 1 was patually redacted by the M,zne Dade Stay Attorney's Office 1 Etbrt B rias obtained from the M1.7,113-Dade;tate Attar ey's Office pursuant to a Public Record; Request. The email was partally redacted by the lsiiar i-Dade State Attorney's Office. Page 403 of 1252 Page 27 of 30 Beach Towing Services, Inc. - Towing Permit Compliance Audit - September 24, 2019 EXHIBIT A From: C •rtonno, Joseph < osc hCentorrnoctimarnibeachtl.aov> Sent: Wednesday, December 4. 2019 154 PM To: John Porkies Cc fllaiotla;Norman Subject: FW.Beath Towing Daft Report Attachments: Beare.hi Towing Serricoi;, Inc.Draft Audit Fte rt 06.03 19 2 do?cx Iii John, Glad to be able'to catch up with you today. r have attached the audit report we discussed as well as the contact information for the auditor who authored it,Norman Blaiotta. He is prepared to speak with you in person or by phone, whenever that is convenient. Thanks for taking a look,at this. Joe Josepii :7+f. Ceratorrno inspector General Office of the:i s,oectc:r Cane;ai 1700 Convection(et1iGt'v3+'E'�', 19 Tel. 3015-673 7020!1a 305-672 711.9 Jo*sephCentor:ncproi;lnrieeachfi,Pov From: Blaiotta, Norman(Norma nGiaio+tta `miarn4beachfl.go>r> Sent:Wednesday,December 4,2019 3:44 PM To:Centoririe,Joseph<JosephCentorinognziaanubeachll.gov> Subject: Beach Towing Draft Report As per your request. Norman Blaiotto CIA CFE MBA, SerxicrA:xu':cr Ofrriosi of t'snsp tar Genera] 17CD Derive.<tcn Cerner Drive.Miami Beach, Ft.33133 Te:33f 573-70OO e t 28e'34,`Fax:335873-7516.;wveri.m'.amibeachfi.pov We are ccrn:Tv:red to provrdrng exceler publ c 4erv;ce end;.alety ro aG who eve, work ane play;n our vibrant tropical_ b!!oric community. Page 404 of 1252 Page 28 of 30 • Beach Towing Services, Inc, - Towing Permit Compliance Audit- September 24, 2019 EXHIBIT B From: Centoriho. Joseph ..:JosephCetitcminotQtniPeachfl.9ov> Sertt: - Tuesday, Januar(7, 2020 3,06 PM To: John Pi241k1ces CC Vaiotta,Norman Subject: RE. Towing audit Thanks,John Joe Joseph M. Centortno inspector General Of lice of the•1sQe.(tc,r 1130‘N,P",,,,7•,,nkion Ave., Miari Beach, P..33139 Tel.305-673,7020 losepharr,or4.)oairrvarriirf4lachfi,pc-N From:John Perikles(JohnPerildes@MiarniSAO.corn> Sent: Tuesday.January 7,2020 2:23 PM To:Contorino,Joseph<JoseptiCentorino i arnibtmehil.gov> Subject:RE:Towing,audit . . - . . • . . Page 405 of 1252 Hage 29 of JU Beach Towing Services, Inc. - Towing Permit Compliance Audit- June 3, 2019 • I don't mid looking into this further,but would prefer to sit down with the investigators/auditors rather than do this by phone. John From:Centorino,Joseph G.iCA.D`iCetitlSrtis�! reUdt�itktBaChILcC1V> Sent:Tuesday,December 31,2019 2:25 PM To:John Per ikles Uohri?erikii`si$=iMiarniSAO.tom> Subject: Towing audit Hi John. Happy i;few'fear! Just checking in on the towing audit we sent you before the holiday,to find out If someone there has had the time to review it. t will be in the office this Thursday and Friday,if it would be convenient to talk. Otherwise,next week is fine. t expect there to be some developnients in the City's review of this matter shortly. Thanks. Ice Dif Joseph M. Cet?toruic? inspector General Off;ct of the inspe:ctc`General 1130'Aaslerig an Ave._ 6'" Foor dLa ti Beac. : F..33139 Tel.305.673 7020 Jose,prfCentor:nL{L`rf tiarnitc3cht!.e:V PHage036off 1302 RESOLUTION NO. A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, EXTENDING, ON A MONTH TO MONTH BASIS, THE CURRENT TOWING PERMITS WITH THE CITY'S TWO (2) TOWING PERMITTEES, BEACH TOWING SERVICES, INC. AND TREMONT TOWING, INC., RESPECTIVELY, WHICH ARE CURRENTLY SET TO EXPIRE ON FEBRUARY 28, 2021, FOR A PERIOD NOT TO EXCEED THREE (3) MONTHS, OR UNTIL MAY 28, 2021, TO PROVIDE THE CITY ADMINISTRATION WITH ADDITIONAL TIME TO PREPARE THE RECOMMENDATIONS REQUESTED BY THE CITY COMMISSION PURSUANT TO RESOLUTIONS NO. 2020-31501 AND NO. 2020-31507. WHEREAS, on January 15, 2020, the Mayor and City Commission adopted Resolution No. 2020-31147, urging the City's Inspector General (IG) to take the following actions regarding the audits performed on the City's two (2) towing permittees, Beach Towing Services, Inc., and Tremont Towing Services, Inc.: (1) transmit the draft audit reports to the towing permittees, and allow the permittees to provide any comments, in writing, to the IG; (2) following the"comment period"deadline, requesting that the IG take such action(s) as necessary to finalize the audits (incorporating, as the IG deemed necessary, any comments provided by the towing permittees); and (3) requesting the IG to place a follow-up discussion item regarding the final towing audit reports on the City Commission agenda; and WHEREAS, the Resolution also extended both permittees' towing permits, which were set to expire on February 28, 2020, on a month-to-month basis, for up to six (6) months after the expiration date (or August 28, 2020); and WHEREAS, on July 29, 2020, the Mayor and City Commission adopted Resolution No. 2020-31371, further extending the towing permits on a month to month basis, up to three (3) months after the expiration date of August 28, 2020 (or November 28, 2020), to allow City staff sufficient time to update the towing permits, incorporating the IG's recommendations; and WHEREAS, the IG's report regarding the towing permit audits was finalized on September 24, 2020; and WHEREAS, on November 18, 2020, the Mayor and City Commission adopted Resolution No. 2020-31501 (relating to City Commission Item No. R7 F), further extending the towing permits, on a month to month basis, up to three (3) months after the expiration date of November 28, 2020(or February 28, 2021), to provide the Administration with additional time to consider the IG's recommendations, as well as other recommendations including,without limitation, those from Miami Beach United (MBU), and provide its recommendations, to be incorporated in the new towing permits; and Page 407 of 1252 WHEREAS, on November 18, 2020, the Mayor and City Commission also adopted Resolution No. 2020-31507 (relating to City Commission Item No. R7 0), directing the Administration to (1) consider the recommendations of the IG's report and those of MBU, (2) provide its own recommendations, which may include possible amendments to the Administrative Rules and Regulations and/or the City's Code of Ordinances; and (3) prepare a solicitation for the issuance of towing permits, pursuant to Chapter 106 of the City Code, for the City's Police Department and Parking Department, for the approval of the City Commission; and WHEREAS, in order to enable the Police and Parking Departments to tow vehicles on public property, as deemed necessary and required, and provide the City Administration with sufficient time to provide the City Commission with the foregoing submittals, the Administration recommends extending both towing permits, on a month-to-month basis, for up to three (3) months, or until May 28,2021. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby extend, on a month to month basis, the current tow permits with the City's two (2) towing permittees, Beach Towing Services, Inc. and Tremont Towing, Inc., respectively, which are currently set to expire on February 28, 2021,for a period not to exceed three(3)months, or until May 28, 2021, to provide the City Administration with additional time to prepare the recommendations requested by the City Commission pursuant to Resolutions No. 2020-31501 and No. 2020-31507. PASSED and ADOPTED this day of , 2021. ATTEST: Dan Gelber, Mayor Rafael E. Granado, City Clerk t:lagenda1202113_february 10\parking1towingextension reso.docx APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION Ca,'Attorney ;. r Dare Page 408 of 1252 CITY OF MIAMI BEACH ADMINISTRATIVE RULES AND REGULATIONS FOR POLICE AND PARKING TOWING PERMITS REVISED ON-AS OF FEBRUARY 2021 Page 409 of 1252 ATTACHMENT7 CITY OF MIAMI BEACH ADMINISTRATIVE RULES AND REGULATIONS FOR POLICE AND PARKING TOWING PERMITS Introduction Pursuant to Article V, Division 2, Section 106-212 of the City Code, and subject to City Commission approval, the City Manager shall promulgate rules and regulations as may be necessary to govern the discharge of towing or storage of vehicles identified by the City of Miami .Beach Police, Department (hereinafter, "MBPD" or the Police Department) or the City's Parking Department as requiring removal from the public right of ways. Each applicant issued a permit by the City to tow or store vehicles, in accordance with Article V (entitled, "Police Vehicle Towing"), Division 2, Sections 106- 211 through 106-255 of the City Code, shall comply at all times with the administrative rules and regulations hereinafter set forth, and as same may be amended from time to time (the "Administrative Rules and Regulations"). An applicant issued a permit to tow or store vehicles (hereinafter, the "Permit") pursuant to the aforestated Code section shall hereinafter be referred to as a "Permittee". However, the total number of permits granted under Article V shall not exceed two (per City Code Section 106-213) 1 Page 410 of 1252 Aimaia `u - -- •'e - - - .. e'' 0• _ __• - - '_ .. by the City Manager. 1. QUALIFICATIONS OF APPLICANT Prior to the issuance of a Permit, pursuant to Chapter 106, Article V of the City Code, an applicant shall be required to evidence, to the reasonable satisfaction of the City Manager, that it has the necessary facilities, equipment, skills, personnel, and financial responsibility to furnish the work and services required under the Permit4n-a satisfactory manner. An applicant shall be required to evidence a record of satisfactory past performance; and, in support thereof, may be required to submit references and provide such other documentation, upon-as requested by the City Manager. Failure to qualify with any or all of the following requirements shall be sufficient justification for the City Manager to reject an application for a Permit (including rejection for renewal of a Permit). 2. COMPETENCY OF APPLICANTS Permit applications shall only be considered from firms with proven experience in thea towing business which have has an established and satisfactory record of performance, and have has available the required equipment, facilities, storage space, and personnel sufficient to ensure that they—the business can =eerly satisfactorily execute the work/services required. The-City-Manager-or-his designee reserves the right to inspect an-applicant's existing ori rlent---faer4it,es--and storage space-following submis.sion-of-a---Per-mi pptication, 2' Page 411 of 1252 -_- - _ _ - •, -An applicant must identify a facility (which serves as its base of operations) and storage space facility located within the city limits of the City of Miami Beach, where vehicles towed in the City of Miami Beach shall be stored or impounded for the first 48 hours after being towed. The City Manager or his designee reserves the right to inspect an applicant's existing or proposed equipment, facilities, and storage space following submission of a Permit application. Applicants must have all necessary licenses and permits,as required to operate and provide the required work/services including, without limitation, a business tax receipt issued by the City and any and all other applicable licenses and permits required by the City, Miami-Dade County, and the State of Florida. By City's is..uance of the Permit, and acceptance of—the Permit by applisaLPermittce, ape __ • "- ••• - •er-eby represents and warrants to the City that it has-made-itself familiar with all applicable oral, State, Miami Dade County; and City laws, ordlnances�-and les and regulations that may, in_any way,a€#ect and/or -e e _ - _ -afar t^ be provided (and applic a -Permittee shall continue is - • - .7* . -•i • . e -e ---t updates in any such laws)- leherans e-part-ef-t#e-appllGa#/Permittee-will-ira any-responsil :i =ility under the Permit. By submission of an application, the applicant shall declare, represent and certify to the City that the only person or persons interested in the Permit is/are the principal or principals named therein; that no person or persons (other than therein mentioned) has/have any interest in the Permit; that the Permit is issued by the City without connection to any person(s), company(ies) or party(ies) making the application; and that it is in all respects fair, in good faith, and without collusion or fraud. 3 Page 412 of 1252 By City's issuance of the Permit, and acceptance of the Permit by Permittee, Permittee thereby represents and warrants to the City that it has made itself familiar with all applicable Federal, State, Miami-Dade County, and City laws, ordinances, and rules and regulations that may, in any way, affect and/or apply to the work/services to be provided (and Permittee shall continue to make itself aware and familiar with any subsequent updates in any such laws). Ignorance of the law on the part of the Permittee will in no way relieve it from any responsibility and/or liability under the Permit. 3. PERMIT FEE/MONTHLY BILLING Permittee shall pay to the City a monthly-Permit fee-in the amount of $30.00,-for era h�"isle-towed. e-men y-Permit fee •. e- -e- --e e ..010-for each vehicle e -: -- _ , ,e'_mi Beach Resident Discount pursuant to-Section 22.M herein. The City-shall-bili-Permittee, by the 10th of each month, for all tows occurring-in the-previous month. A.lat- _ - e- _ __•.•• - -- - - - e ' -•e• —•• _ _-- (48%3-icterest per annum, or ii) the maximum rate allowable under Florida law, shall be accessed on all payments received after the 20th day of the bmonth Pursuant to Section 323.002, Florida Statutes, in addition to the maximum allowable rates that may be charged by the Permittee under Section 22 herein, the City shall charge a Permit Fee of $30.00 on the registered owner or other legally authorized person in control of the vehicle for vessel) that is towed ("Permit Fee"). The City hereby appoints Permittee as its agent to impose and collect the Permit Fee on behalf of the City. Permittee shall pay-remit payment to the City of any monthly Permit fees Fee collected by the 20th of each month for al-the Permit Fees collected during the previous 4 Page 413 of 1252 month, in the amount of-$30.00; for-ash-vile towed. The monthly Permit Fee shall be reduced to $25.00 for each vehicle towed that receives a Miami Beach Resident Discount pursuant to Section 22.M herein. Payments to the City shall be made by check and remitted to the City of Miami Beach Finance Department (Revenue Section). Checks shall be clearly marked "Police Tow" or"Parking Department Tow." 4. INDEMNIFICATION/HOLD HARMLESS AND INSURANCE REQUIREMENTS Permittee shall be responsible for any work/services, and every part thereof, undertaken pursuant to the Permit. For purposes of this Section 4, the term "Permittee" shall include, without limitation, all Permittee's officers,. directors, employees, agents, contractors, and consultants, as well as any facilities, equipment, and property, of every description, used in connection with the performance of the work and/or work/services required under the Permit. --'• -- - e•-• - •_ _ _ _ ••-, - •. . - As further consideration for the City's issuance of the Permit, Permittee dees-se-expressly assumes,- all risks of damage or injury to property or persons used or employed enly, or used or retained by, Permittee in connection with the work/services under the Permit, and of all injury or damage to any person or property, wherever located, resulting from any action or operation under the Permit, or in connection with the work/services thereunder. As separate and additional consideration for the City's issuance of the Permit, Permittee shall indemnify, hold harmless and defend (with counsel approved by the City Attorney) the City of Miami Beach, Florida, its officers, employees, agents, contractors, and ser-va+ tsconsultants, from and against any and all claims, liabilities, demands, causes of 5 Page 414 of 1252 action, costs and expenses (including reasonable attorneys' fees at trial and all levels of appeal) of whatsoever kind or nature arising out of any error, omission, negligent act or willful misconduct of Permittee, its officers, directors, employees, agents, contractors, and sews-consultants ("Claims"), whether directly or indirectly, from the provision of work-and/or work/services pursuant under the Permit; provided, however, that there is expressly excluded from the foregoing obligations any Claims to the extent resulting from the gross negligence or willful misconduct of the City. The indemnification provisions of this Section 4 shall survive expiration or termination of the Permit. In addition to, and separate from, Permit's obligation to indemnify and hold the City harmless (as set forth in the preceding paragraphs), Permittee shall maintain the following insurance coverage in full force and effect at all times throughout the Permit term:. The maintenance of proper insurance coverage is a material element of the permit and failure to maintain or renew coverage may be treated as a material breach of the permit, which could result in withholding Of payments or termination of the permit. A. Worker's Compensation Insurance for all employees of the Permittee as required by Florida Statute 440, and Employer Liability Insurance for bodily injury or disease. Should the Permittee be exempt from this Statute, the Permittee and each employee shall hold the City harmless from any injury incurred during performance of the Permit. The exempt Permittee shall also submit (i) a written statement detailing the number of employees and that they are not required to carry Workers' Compensation insurance and do not anticipate hiring any additional employees during the term of this Permit or (ii) a copy of a Certificate of Exemption. 6 Page 415 of 1252 B. Garage Keepers Legal Liability Insurance on an occurrence basis, including products and completed operations, contractual liability, property damage, bodily injury and personal & advertising injury for vehicles while in the Permittee's care, custody and control with limits no less than $1.000.000 per occurrence, and $2,000,000 general aggregate. C. Automobile Liability Insurance covering any automobile, if Permittee has no owned automobiles, then coverage for hired and non-owned automobiles, with limit no less than $1,000.000 combined per accident for bodily injury and property damage. Additional Insured - City of Miami Beach must be included by endorsement as an additional insured with respect to all liability policies (except Professional Liability and Workers' Compensation) arising out of work or operations performed on behalf of the Permittee including materials, parts, or equipment furnished in connection with such work or operations and automobiles owned, leased. hired or borrowed in the form of an endorsement to the Permittee's insurance. Notice of Cancellation - Each insurance policy required above shall provide that coverage shall not be cancelled, except with notice to the City of Miami Beach do EXIGIS Insurance Compliance Services, Waiver of Subrogation — Permittee agrees to obtain any endorsement that may be necessary to affect the waiver of subrogation on the coverages required. However, this provision applies regardless of whether the City has received a waiver of subrogation endorsement from the insurer. Acceptability of Insurers — Insurance must be placed with insurers with a current A.M. Best rating of A:VII or higher. If not rated. exceptions may be made for members of the 7 Page 416 of 1252 Florida Insurance Funds (i.e. FWCIGA. FAJUA). Carriers may also be considered if they are licensed and authorized to do insurance business in the State of Florida. Verification of Coverage — Permittee shall furnish the City with original certificates and amendatory endorsements. or copies of the applicable insurance language, effecting coverage required by this contract. All certificates and endorsements are to be received and approved by the City prior to commencement of the Permit term, and/or prior to commencement of any work and/or work/services under the Permit (whichever is earlier). However, failure to obtain the required documents prior to commencement of the Permit term, work and/or services as describedabove shall not waive the Permittee's obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements, required by these specifications, at any time. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH c/o EXIGIS Insurance Compliance Services P.O. Box 4668 — ECM #35050 New York, NY 10163-4668 Kindly submit all certificates of insurance, endorsements, exemption letters to our servicing agent, EXIGIS, at: Certificates-miamibeach a(�riskworks.com Special Risks or Circumstances - The City of Miami Beach reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 8 Page 417 of 1252 Compliance with the foregoing requirements shall not relieve the Permittee of his liability and obligation under this section or under any other section of this agreement. General Liability insurance in amou^ts presc+r bed Manager-or-his-designee, and-as-nevn of y-to---protect the P-er-i ittee-and the interests of the City against all risks of-injury-to-persons (including- death)-or-damage-to includingdeat )-or-damage-to property, whereveN^cated'� esuiting from any action or operatioder--tae-Pens r-iii-corrneGtion--wit" th, ork1sei ices thereto. b. Auto--_:` - _ _ - se -inctuding Property Damage=covcring--all owned, n fr-ed---automobiles and equipment—used in connection-with--the-worm Acesi o—W©rkers' on-and-Employer's Liability Insurance, as required to meat-the-statutory-requirements-of-the State of-Florida; and dT,,y e hnr additiorial-ooverageN-as--ma3 reasonably be required-from-time to time by the City-Manager-or-his-designee, P-er te/e-shall be the--name: - . -: . -0-, .. :: '_ •- _ ' : Miami Beach, Florida, shall be named as an additional insured on all regr ircd-liability-pelicics. Pormittee shall also be responsible for requiring th�+„ ny4equ red policy-endorsements state-that the City will-not-be-liable for the payment of any premiums-or-assessments-. All liability insurance coverage and-policies required herein-shall-contain pro-vision acknowledging-an: -_ --'•e * •- '-:emnification-and-gold harmless require - •- . go) et forth in this Section 4. 9 Page 418 of 1252 All required policies-shall provide full coverage from the first dollar of exposure. No-deductibles will be allowed unl d;in--wring tho City's - -- = 'e : -- -- = - eeliey`I- No change or cancellation-in-ins- - --- -•- e: •- :- •cwt-thirty (30} days prior written notic- e -- - ' '- '• —Alt-insurance policies shall as issued by companies-authorized-to-de business-ander the laws of the State of Florida and these companiesust have a rating-of at lcost-B+4/l-car better, peF-Bests-J eyRating Guide, latest-edition, Original-signed-certificates of in,urance;evidenc'-e • - - • - .e . - .e and-endorsements, eh�, ll-bII-approved-by the Cites-Risk-Manager or his designeo and filed-with the Office of City-Risk-Manager-Management prier-to-commencement of the Permit term, a•: e : 'e a - --••- -... e - • - e -.e e e .- •- under#tpor tshover-is-earlie/' It is understood and agreed that all policies of insurance required hereunder shall be primary to any insurance or self-insurance the City of Miami Beach. Permittee will also be solely responsible for securing and maintaining policies for any and all of its subcontractors, to the extent and in accordance with the same insurance requirements"as applies to Permittee pursuant to this Section 4. Notwithstanding compliance by Permittee and its subcontractors with the insurance requirements in this Section 4. Permittee shall be ultimately responsible and liable for any negligent acts, errors or omissions, or willful misconduct, of its subcontractor(s) (and of persons employed by such subcontractor(s)), to the extent that Permittee would be responsible (for the negligent acts, errors and omissions, or willful 10 Page 419 of 1252 misconduct of persons employed and/or retained by Permittee) under the requirements of this Section 4. Should Permittee fail to provide proof of coverage for any insurance ( /e required in this Section 4, within seven (7) days of receipt of written notice from the City Manager or his designee, the City reserves any and all the right, upon written notice to Permittee, to immediately terminate the Permit, without liability to the City. 5. AUTHORIZED STORAGE AREA(S)FACILITIES AND ON PREMISES FACILITY(I-E-S)OFFICE Permittee's must have an authorized storage area within the city limits of Miami Beach, which shall only be used by Permittee to store vehicles towed within the city limits of Miami Beach. Vehicles must be stored for a minimum of two (2) davfl8 hours, after which they may be moved to a storage area outside the city limits of Miami Beach, but within Miami-Dade County, Florida. Any vehicle with a "police hold," shall not be stored outside the city limits of Miami Beach. A. Authorized Storage Facilities Permittee shall have available outside storage for a minimum of thirty-one (31) vehicles, and but no more than a maximum of one hundred (100) vehicles. Said storage area will be enclosed in accordance with applicable City zoning requirements. At a minimum, Permittee shall surround the storage area with a chain-link fence or solid-wall type fence at least six (6') feet high. The storage area shall be sufficiently 11 Page 420 of 1252 illuminated to reveal persons and vehicles at a distance of at least 150 feet during - evening hours. Permittee shall use such security measures as it deems necessary, to prevent theft, vandalism, stripping, and dismantling of parts from stored vehicles in all Permittee shall also provide a completely enclosed inside storage area (solid walls, roof, and access door) for at least five (5) vehicles. Said area will be secured against entry by unauthorized persons. All vehicle keys shall be ;eeuced-separetely, In the event Permittee's storage areas are filled to capacity, the Permittee shall not be relieved of its responsibility with regard to storage of vehicles pursuant to Section 2 of the Permit, requiring that vehicles towed by Permittee within the City of Miami Beach must be stored or impounded within the confines of the City at an authorized storage facility, for the first 48 hours after being towed or impounded.;—and shall Permittee, at its sole cost and responsibility, shall be required to make alt to arrangements for storage,.(as required to comply with the terms of the Permit-). In order to be considered an "authorized storage facility," Aany storage area proposed to be utilized by Permittee_r(which was not identified in its Permit application,); must obtain the prior written approval of the City Manager or his designee prior to commencement of • such use. Permittee's storage area must be located within the city limits of Miami Beach --e - -• e - e e - • -- e ere vehicles-towed-within the city. limits of Mia ai Bea . . . _ - - e - -e e - •••••••- •• _ _ er wkaich they may b- --•e . -e - - - - -e - - -- •a s , erida- 12 Page 421 of 1252 Miami Beach. Permittee may not charge an additional towing fee for removal of a vehicle for storage outside the city limits of Miami Beach. An owner (or other authorized individual) claiming a vehicle stored outside the city limits of Miami Beach shall be given the option, without charge, of either free transportation to the vehicle, or having the vehicle returned to the Permittee's Miami Beach storage areafacility. No storage charges shall be assessed for any vehicle which, pursuant to authorization of the City Manager or his designee, is stored at a City facility. B. On Premises Office In addition to the storage area(s)facilities, the Permittee shall have a permanent on-premises office, which shall be staffed on a 24-hour basis by at least one (1) employee. Permittee shall also provide on-premises security in the form of one or more of the following: night dispatcher or watchman; security guard service; security dog; or security cameras. Notwithstanding the preceding paragraph, Permittee shall be required to hire City off-duty police officers on the premises on holidays, and during all major events in the City. "Holidays" are herein defined as any City of Miami Beach recognized/observed legal holiday. Major events are herein defined as those events identified in the City's Major Event Planning (MEP), as same may be amended from time to time. In the event that the MBPD is unable to fulfill the off-duty requirement, Permittee may satisfy the requirement by hiring off-duty police officers from other jurisdictions (i.e. Miami-Dade, City of Miami, etc.). 13 Page 422 of 1252 Permittee must post a City-approved sign at its on-premises facility indicating charges (as shall have been approved by the City). This sign must include a statement about the accepted methods of payment and the number and kinds of identification required. At a minimum, the sign must be in one inch (11") lettering, with contrasting background, permanently and prominently posted in the area where the charges are paid to Permittee. All areas accessible to the public must be well lighted, with provisions to accommodate seating for members of the public retrieving vehicles. After 11 p.m., Permittee shall be prohibited from utilizing or maintaining any sort of public announcement (PA) system from its premises, iso as to eliminate and/or reduce amplified and other noise to the surrounding neighborhood that occurs after 11:00 p.m.l Additional Conditions for Permittee's Authorized Storage Area(-s)--Facilities and On Premises €aoitit"'z 4Facilities: 1. Storage and/or parking of vehicles must be fully screened from view, as seen from any right-of-way or adjoining property, when viewed from five feet six inches (5'6") above grade, with an opaque wood fence, masonry wall, or other opaque screening device not less than six feet (6') in height. 2. Parking spaces, backup areas, and drives shall be appropriately dimensioned for the type of vehicles being parked or stored. 3. The City shall retain the right to modify the Permit and the conditions of operation should there be complaints about loud, excessive, unnecessary, or unusual late night noise that occurs after 11:00 p.m. 4. The Permittee shall be responsible for maintaining the immediate areas adjacent to its on-premises facility and storage area-facility including, without limitation, the 14 Page 423 of 1252 adjacent sidewalks, curbs, and gutters, in a clean and sanitary manner, free of refuse, at all times during its hours of operation. 5. Permittee shall be required to satisfy the landscaping requirements of Section 126-6 (2) of the City Codej-Palms as street trees: Single trunk palm species with a minimum of ten inches diameter at breast height (DBH) and a minimum of 15 feet of clear or grey wood at time of planting may be planted in addition to the required number of street trees. The maximum spacing of palms as street trees shall be 20 feet on center. Palms shall not count towards the required number of street trees. The City may require an increase in the maximum spacing due to site-specific constraints, such as, but not limited to, visibility triangles, signage. utilities view corridors, or the use of large canopy or diameter trees). 6. A plan for a recurring maintenance schedule that includes, but is not limited to, cleaning Permittee's en-premises-authorized storage areafacility, clipping of hedge material, removing and replacement of dead plant material, fertilization and irrigation, shall be submitted to the City Manager or his designee, within thicty (-30-)five (5) business days of-from the commencement of the Permit Term, for the Manager (or his designee's) review and approval, • - - - - - - -- - •- nor) or delayed 7. The lighting in Permittee's on-site facility and storage area must satisfy the City Code and the Florida Building Codes. The light from light poles shall be contained on-site. Any light poles shall not exceed fifteen feet (15') in height, measured from grade. 8. Permittee shall be responsible for operating its on-premises facility and storage area-facility in an orderly, clean and quiet manner so that neighboring residents are '15 Page 424 of 1252 not disturbed during the hours of operation. At a minimum, this shall include removing all trash from the lot not less than twice daily. The sounding of car alarms, automobile horns, playing of radios or any kind of audio system (including by the valet attendants), and screeching of tires shall be prohibited. A sign addressing City Code provisions regarding car alarms, and a sign prohibiting the screeching of tires and sounding of horns, shall be posted on-site so they are plainly visible by, and legible to, users of the facility. 9. Violations of the City's Noise Ordinance (as codified in Article IV, Sections 46- 151 through 46-162, and as same may be amended from time to time) Section 464-52-of-the City Cede-a&-same-may-be-amended-(the-City's-Noise-Ordinance) may also be deemed a violation-failure to comply under of—the terms of the Permit. Accordingly, in the event of such violationnon-compliance, the—City Manager—reserves-any-and all right to-suspend or terminate-the Permit may be suspended or revoked in accordance with City Code Section 106-220.. 6. TOWS WITH POLICE HOLD Unless otherwise requested, Vehicles impounded with a "police hold", shall be transported directly to Police headquarters or off-site facility. Permittee shall not charge any additional fees when MBPD requests that a vehicle impounded with a hold be moved for processing or storage at any off-site facility. The Police Chief or designee may request that Permittee charge a fee not to exceed $50 for the tow and release of victim's or witness' vehicle. In the event that a vehicle cannot be stored at Police headquarters or an off-site facility, the police may request that it be stored at Permittee's authorized storage area, 16 Page 425 of 1252 kwithin the City limitsl)_ Said vehicles shall be stored for a period of up to five (5) working days, excluding Saturday, Sunday and Holidays; at no charge for the first five (5) working days, or until the police hold is released, whichever occurs first. If, after expiration of the five (5) working days, the vehicle requires a police hold for a longer period of time, the City Manager or his designee may direct Permittee, in writing, to remove the vehicle to a City facility, without charge to the City. In the alternative, the City's notice may request that Permittee continue to store the vehicle at Permittee's storage facility. If the City's notice elects to have the vehicle remain at Permittee's storage facility, the City shall be responsible for any storage charges incurred after aforestated-the initial five (5) working days. If the Permittee does not receive such written notification from the City, within the time period provided above, the Permittee may release the vehicle to the registered owner or lien holder; provided however, that the Permittee shall provide the City Manager or his designee with written notice of Permittee's intent to release, prior to the actual release date. If the City's notice authorizes Permittee to remove the vehicle from Permittee's storage facility, but the vehicle has already been released to the owner or lien holder, the owner or lien holder (and not the City) will be responsible for any tow and storage charges for the number of days the vehicle was stored at Permittee's storage facility. The towing and storage rates charged to an owner/lien holder shall not exceed the rates that would be charged to the City. All police holds must include the following information: 1. name and agency of the law enforcement agency; 2. date and time the hold is placed on the vehicle; 17 Page 426 of 1252 3. a general description of the vehicle, including color, make, model, body style and year, VIN, registration plate with state and year, and validation sticker number with state and year; 4. the specific reason for placing the hold; 5. the condition of the vehicle; 6. the location where the vehicle is being held; and 7. the name, address, and phonenumber of the storage facility where the vehicle is stored. In cases where a vehicle has a police,hold pursuant to a violation of Article IX, Sections 106-3917 through 106-395 of the City Code (the City's Vehicle Impoundment Ordinance] of the City Code).1 --Permittee shall reduce removal, towing, and storage charges as (and if) ordered by the City's Special Master. After the initial five (5) working days of storage, all vehicles impounded for a violation of the Vehicle Impoundment Ordinance shall also be removed by Permittee to a City storage facility without charge to the City. The Permittee shall not divulge any information with respect to a towed vehicle when such vehicle has a police hold. Anyone wishing to obtain information on a vehicle with a police hold shall be referred to the MBPD. 7. STORAGE PROCEDURES FOR VEHICLES The Permittee shall provide storage for impounded vehicles in its outside storage area unless specific written instructions are given for inside storage by the impounding NIB-P-D-a City Police officer or City Parking Enforcement Specialist. 18 Page 427 of 1252 If required by the City for proper processing for investigative purposes, the Permittee shall move an impounded vehicle to an area designated by the City Manager or his designee, within the City limits, prior to storage, at no additional charge to the City. When the City orders a vehicle involved in a criminal investigation to be towed to a location enly-other than Permittee's storage facility, that vehicle may only be released from such location to the owner and/or lien holder, and then only upon prior written approval by an-MBP--D-a Police supervisor. If so approved, the City shall be responsible for the initial tow charges. Notwithstanding the preceding, and in the event the vehicle was not claimed by the owner or lien holder at the location where the investigation took place, the City shall not be held responsible for, nor required to, assure that further arrangements have been made (or pay) for towing and storage following completion of the vehicle processing. Permittee shall return any such vehicle to the Permittee's storage area-facility (and the City shall only be responsible for the cost of the initial tow). 8. LOCATION CHANGES OF IMPOUNDED VEHICLES Permittee shall not change the type of storage (inside and/or outside) or storage location without the prior written approval of the City Manager or his designee 9. ATTENDANT ON DUTY The Permittee shall make have sufficient attendants available, on a 24-hour, 7-days a week basis, attendants for immediate response to calls for service from the City. Permittee shall also have adequate sufficient personnel available to staff its on- premises facility, on a 24-hour, 7-days a week basis, for the purpose of dispatching calls and releasing towed vehicles. 19 Page 428 of 1252 10. VEHICLE LOADING All vehicle loading shall only be conducted en-within Permittee's premises-(e##- - - _ •. - _ _ _ -.- . The use of a forklift or similar device shall be strictly prohibited on any City right-of-way. 11. EQUIPMENT Permittee shall be solely responsible for operatinge and maintaining any and all equipment, as required to satisfactorily perform the work/services required under the Permit. All equipment shall be maintained in a state of readiness for response. In the event that Permittee utilizes any equipment not owned by it, the City shall require that Permittee demonstrate, to the City Managers or his designee's satisfaction, that it has the primary use and control of such equipment throughout the Permit term (whether by providing proof of an equipment lease, or other legally binding contract evidencing use and control of any required equipment). Any equipment not owned by Permittee must be made available to Permittee on a first priority basis. At a minimum, Permittee shall maintain and have available during the Permit term the following type(s) of equipment: A. WRECKERS (TOW TRUCKS) All wreckers will be registered and shall have appropriate licenses to operate as wreckers. Permittee's towing license number shall be displayed on the front of the vehicle in letters at least three (3") inches high. Permittee's company name shall be displayed on the driver and passenger side of the 20 Page 429 of 1252 vehicle in letters at least three (3") inches high. The company's address and telephone number shall be displayed on the driver and passenger side of the vehicle in letters at least one (1") inch high. All wreckers shall display a current decal issued by the City. Permittee shall maintain mobile equipment between its trucks and base stations. B. MINIMUM RATINGS FOR WRECKERS Wreckers shall meet the following minimum ratings: (1) Class "A" Wrecker: (a) Commercially manufactured unit, with a rated capacity of not less than 10,000 pounds, GVW (b) Cab to axle dimension of not less than 56 inches (c) Dual rear wheels (d) Commercially manufactured boom with a minimum capacity of 8,000 pounds (e) Hydraulically operated winch(es) with a minimum total winching capacity of 8,000 pounds (f) One hundred (100') feet of 3/8 inch steel core cable per winch (g) Wheel life with a retracted rating of not less than 3,500 pounds and an extended rating of not less than 2,000 pounds (h) Tow sling with a safe lift rating of 3,500 pounds (I) Two (2) 3/8 inch high test safety chains (j) Dolly equipped 21 Page 430 of 1252 (k) One (1) motorcycle sling (I) Four-way lug wrench (m) One (1) pair of jumper cables (2) Class "A" Slide Back Car Carrier: (a) Commercially manufactured unit, with a rated capacity of not less than 10,000 pounds, GVW (b) Cab to axle dimension of not less than 102 inches (c) Dual rear wheels (d) Seventeen (17') feet or longer hydraulically operated slide back or tilt bed (e) Hydraulically operated winch(es) with a minimum total winching capacity of 8,000 pounds (f) Sixty five (65')feet of 3/8 inch steel core cable (g) Two (2) tie down chains, each ten (10') feet in length (h) Four-way lug wrench (1) One (1) pair of jumper cables (3) Class "B" Wrecker: (a) Commercially manufactured unit, with a rated capacity of not less than 18,000 pounds, GVW (b) Cab to axle dimension of not less than 84 inches (c) Commercially manufactured hydraulic boom(s) with a minimum total capacity of 16,000 pounds. (d) Hydraulically operated winch(es) with a minimum total winching capacity of 16,000 pounds 22 Page 431 of 1252 (e) Two hundred (200) feet of % inch steel core cable per winch (f) Under reach with a retracted rating of not less than 6,000 pounds and an extended rating of not less than 4,000 pounds (g) Tow sling with a safe lift rating of 8,500 pounds (h) Two (2) 5/16 inch alloy safety chains (I) Tow bar equipped (j) Two (2) snatch blocks, minimum 8,000 pound capacity each (k) Two (2) scotch blocks (I) Brake lock (m) Six (6') to eight (8') feet of extra towing chain with hooks, minimum 4,000 pound capacity chain with hooks, minimum 4,000 pound capacity (n) Four-way lug wrench (o) One (1) pair of jumper cables (4) Class "B" Slide Back Car Carrier: (a) Commercially manufactured unit, with a rated capacity of not less than 20,000 pounds, GVW (b) Cab to axle dimension of not less than 138 inches (c) Dual rear wheels (d) Twenty one (21') feet or longer hydraulically operated slide back or tilt bed (e) Hydraulically operated winch with a minimum winching capacity of 8,000 pounds 23 Page 432 of 1252 (f) One hundred (100') feet of 3/8 inch steel core cable (g) Two (2) tie down chains, each ten (10') feet in length (h) One (1) snatch block, minimum 8,000 pound capacity (I) Four-way lug wrench (j) One (1) pair of jumper cables (k) Commercial Non-restricted license plate (5) Class "C" Wrecker: (a) Commercially manufactured unit, with a rated capacity of not less than 36,000 pounds, GVW (b) Cab to axle dimension of not less than 144 inches (c) Commercially manufactured boom(s) with a minimum total capacity of 50,000 pounds (d) Winch(es) with a minimum total winching capacity of 50,000 pounds (e) Two hundred (200') feet of 5/8 inch steel core cable per winch (f) Under reach with a retracted rating of not less than 25,000 pounds and an extended rating of not less than 12,000 pounds (g) Rear support jacks or outriggers (h) Tow sling with a safe lift rating of 12,000 pounds (I) Two (2) 1/2 inch alloy safety chains (j) Tow bar equipped 24 Page 433 of 1252 (k) External air hookup and hoses to supply air to disabled vehicles (I) Two (2) snatch blocks, minimum 24,000 pound capacity each (m) Two (2) scotch blocks (n) Spring brake - air lock (o) Six (6') to eight (8') feet of extra towing chain with hooks, minimum 4,000 pound capacity * Where two (2) Class "C" wreckers are required, at least one (1) shall be under reach equipped. C. ADDITIONAL EQUIPMENT REQUIRED ON EACH VEHICLE (1) Two-way radio (2) Proper safety lights (3) Amber rotation dome light (4) Two (2) flood lights to rear (5) Sand (50 pounds minimum) (6) Heavy duty sweeping broom (24" wide) (7) Two (2) safety cones (day-glow orange, 3 feet high) (8) One set of three (3) reflectors (9) Six (6) thirty minute flares (10) Flat shovel (11) Ax (12) Fire extinguisher 5 lb. dry chemical underwriter approved (13) First aid kit - minimum 16 units 25 Page 434 of 1252 (14) Global Positioning System (GPS) Nvehicle tTrackinq sSystem D. COMMUNICATIONS SYSTEM Permittee shall, at its sole cost and expense, provide its own two-way radio communications system-or alternate-eoanmuRieations em, ac may be appaeved b„ the City-Manager or-his--designee--(-upen written--req est—by Permittee and prior—to--impienaeatation of such aiten ate cyctem-). The communications system shall be between the Permittee's base station and service trucks utilized in providing work/services under the Permit. In addition, Permittee shall provide the City's Parking Department with a radio to communicate with Permittee. E. T—ECHN ll OGXA IMPRO EMEN SBODY WORN CAMERAS (1) Permittee shall, at its sole cost and expense, and prior to commencement of the Permit term, procure and implement a Body Worn Camera (BWC)program and ensure that their—its drivers utilize the camera when performing a City tow;ea - . . _ _ • e • . - _ - • . - • . - F. GPS VEHICLE TRACKING SYSTEM (24-) Permittee shall, at its sole cost and expense. and prior to commencement of the Permit term, procure, install, and implement a GPS vehicle tracking system on all of its vehicles that provide towing services to the City pursuant to the Permit, which will be accessible to the City for monitoring purposes only, in accordance with the following procedures: 26 Page 435 of 1252 (a) Permittee shall implement the use of a GPS tracking system_ that meets the City's minimum-specifications---andtandard.,, incorporated herein by rgferehe -a- -a-ttaohed ac Exhibit "A" hefetoThe specifications of the system shall be submitted to the City for approval-(the-aper-oved GP -trac-king-systoa3-); (b) Prior to the commencement of work/services under the Permit, Permittee shall have the approved GPS tracking system installed and operational in all vehicles that provide towing services to the City. pursuant-to-the Permit and_shall-eertifj-to-the--city,in-writing-su-bstantialy in-the-form-attached-as-composite-Exhibit"B"-hereto-that-items-compliant with this requirement. P-ermittoc cha#i-a e e -e - e e e - add+tienal-Ger-tifications as-sway-be-r-eetuected rom time-to-time, by the Gity Manager or-his-designee—Non-compliance with this requirement may be grounds for suspension or revocation of the Permit pursuant to Code Section 102-220; (c) Notwithstanding anything to the contrary contained herein, the City Permittee specifically acknowledges and agrees that Permittee must have the GPS turned on at all times on all vehicles utilized to respond to City's requests for tows. may-deactivate-th- - ' - - e -•• - - - • - - - e -- - e - - - e • -•: - e -e-Gity-punt to the Permit; provided, however, that Permittee shall maintain the GPS tracking system active at all times on no less than two of its vehicles 27 Page 436 of 1252 sufficient to r- e e•e e •- -e-- s fer tows within twen (20) mini iter . f receipt of the request. 12. EMPLOYEES OF PERMITTEE Permittee shall be solely responsible for the means and methods for selecting, training, directing, instructing, disciplining, hiring and firing of its employees and/or contractors provided that at all times during the Permit term, Permittee shall be solely responsible for ensuring that it shall have sufficient, and qualified, trained personnel to fulfil its obligations under the terms of the pPermit, and-employing (or otherwise retaining) such per-seranel-as-is-nesessaFy-forPer-mittee to satisfy-the-requirements of the Permit and so as to satisfactorily perform the work and /services required under the such Permit. a. Permittee shall perform driver's license screening on all employees with driving responsibilities at the beginning of each contract year and at-upon the hiring of new drivers. and a A copy of each employee's driver's license and screening report shall be kept -on file by Permittee and provided to the City at the beginning of each contract year and at-upon the hiring of a new driver.--*- City e-City Manager or his designee. b. Permittee shall be required to provide all employees with uniforms, which shall be subject to the prior written approval by the City Manager or his designee. c. Permittee shall perform drug test screening on all employees at the beginning of each contract year and at-upon the hiring of a new employee, as well as at the request of the City Manager, and shall provide pass/fail results to the City Manager or his designee-upon request. 28 Page 437 of 1252 Any and all employees and/or other individuals retained by Permittee, shall not, for any purposes, be considered to be employees of the City of Miami Beach, and Permittee shall be solely responsible for their. supervision and daily direction and control. It is the intent of the City and Permittee, and Permittee acknowledges, that the Permittee is legally considered to be an independent contractor and that neither it, nor its officers, directors, employees, agents, contractors or seFvantsconsultants, shall, under any circumstances, be considered officers, directors, employees, contractors, agents or se/vents-consultants of the City, and that the City shall at no time be legally responsible or liable for any negligent acts, errors, omissions, or misconduct on the part of Permittee, or any of its officers, directors, employees, contractors, agents or servantsconsultants. Additionally, toward-that-end;Permittee agrees to have no markings on either its vehicles, 'buildings, equipment, or correspondence that indicates or tends to indicate-implies any official relationship between the Permittee and the City of Miami Beach. 13. REQUESTS FOR TOW SERVICE All requests for service by the City shall be made through the MBPD or by a City Parking Enforcement Specialist. The dispatching unit of the MBPD or the City's Parking Department will assign tows to Permittees on a rotating basis, alternating every tow. The City reserves the right to cancel a request for Permittee's services on a particular tow, at any time, up to the time of hook-up of the vehicle. Permittee acknowledges and agrees that the mere response to a City service call, without other action, shall not constitute a service for which charges are applicable. 29 Page 438 of 1252 Except in situations where a vehicle has a "police hold," if the registered owner of the vehicle (or other legally authorized person in control of the vehicle) arrives at the scene of the tow prior to the towing or removal of the vehicle, the vehicle shall be disconnected from the towing or removal apparatus, and the vehicle owner (or legally authorized individual person in control of the vehicle) shall be allowed to remove the vehicle, without interference (See also Section 23 herein). In those situations where the immediate removal of a legally parked vehicle is necessary in the interest of public safety including, without limitation, due to a fire, storm, flood, other emergeneyact of God, riot, civil disturbance, or a crime scene, upon prior authorization of a commanding officer or supervisor of the MBPD, the Permittee shall remove the vehicle to the nearest public parking area (where parking is available), at no cost to the City (or to the owner of the vehicle). If, at the option of the MBPD officer or Parking Enforcement Specialist at the scene of a tow, the vehicle requires special weather protection, it will be so noted on the vehicle storage receipt, and the Permittee shall be required to cover the vehicle completely with a weatherproof material and, accordingly, shall be allowed to charge the sum of fifty cents ($.50) per day for this service. If a request for a tow involves the removal of a vehicle jor boat vessel) which is located underwater, the Permittee shall provide underwater divers to handle the hook- up of such vehicle ,(or boatvessel). Underwater recovery salvage divers must be SCUBA certified. For every diver, duty time shall be computed from the time of arrival at the scene to the time the vehicle jor boat vessel) is rigged and hoisted to dry land. 14. DELAYS 30 Page 439 of 1252 Permittee shall respond to requests for tows within twenty (20) minutes of receipt of the request. In the event that Permittee cannot respond within twenty (20) minutes, it shall notify the requesting City party of the estimated time of delay and the reasons thereof, and the City shall have the option, at its sole discretion, to cancel the request and contact another Permittee, without cost armor other any liability to the Permittee to which the initial request for tow was directed. 15. REMOVAL OF HAZARDS Upon arrival at the scene of a tow, Permittee's tow truck operator shall promptly remove any hazards or debris from the public right of way prior to proceeding to impound the vehicle. 16. IMPROPER TOWS An--M-BPD Police supervisor or Parking Enforcement supervisor may request Permittee's tow truck operator to release a vehicle that has been engaged (but not removed from the scene of the tow) should the impoundment of the vehicle be deemed improper by said supervisor. The release of the vehicle shall be authorized in writing by such supervisor by signing in the indicated section of the tow slip. The supervisor's decision shall be final and the tow truck operator shall proceed and comply with the release. The City shall be responsible for payment of the towing fees for an improper tow. Any vehicle released pursuant to an improper tow under this Section 1-5-16 shall be towed to any location the owner or driver requests within the limits of Miami-Dade County, at mileage rates in accordance with the published rates. In instances where a vehicle has been improperly towed and such vehicle belongs to a disabled operator, 31 Page 440 of 1252 Permittee shall deliver said vehicle to the original scene of the tow or to such other location within the City (as directed by the City) and the City shall pay the towing fees. 17. IMPOUND REPORTS/OWNER NOTIFICATION When the City requests that a vehicle to be towed, an inventory and written record of all personal property found in the vehicle before the vehicle is removed by Permittee will be prepared. The MBP-D-Police officer or Parking Enforcement Specialist on the scene of the tow will be responsible for obtaining the information required for the vehicle storage receipt. Permittee shall not remove a vehicle from the scene of a tow without a copy of a vehicle storage receipt. Permittee shall be solely responsible for ensuring that an impounded vehicle remains in the same condition and retains the same equipment at the time of release that it had at the time it was impounded. The Permittee shall also be solely responsible for any article(s) of value left in the vehicle and listed on the vehicle storage receipt. The Permittee shall replace any equipment and/or article(s) of value upon verification of the loss by the City Manager or his designee. Permittee shall be responsible for notifying the registered owner of the vehicle, or lien holder, via certified mail, return receipt requested, of the whereabouts of the vehicle within twenty four (24) hours of impoundment. If, at the time of impounding, the name and address of the registered owner or lien holder is not readily available, Permittee shall notify the City Manager or his authorized designee, in writing, and the City shall use reasonable efforts to provide this information to Permittee within five (5) working days from the first date of storage of the vehicle. Upon receipt of the name and address of the registered vehicle owner or lien holder, Permittee shall notify the party(ies) of the whereabouts of the vehicle, certified mail return receipt requested. The notice(s) shall 32 Page 441 of 1252 be sent within seven (7) days from the first date of storage (or within seven (7) days from Permittee's receipt of the information from the City). Telephone notice shall also be given whenever possible. Notwithstanding the preceding paragraph, if the sState of registration is unknown, the Permittee shall utilize best efforts in notifying the registered owner or lien holder of the whereabouts of the impounded vehicle, within a reasonable period of time from the first date of storage. At a minimum, "best efforts" means that Permittee has performed the following due diligence to establish the state of registration: 1. Check of vehicle for any type of tag, tag record, temporary tag, or regular tag; 2. Check of law enforcement report for tag number or an out-of-state address indicated from drivers license information (if the vehicle was towed at the request of a law enforcement officer); 3. Check of trip sheet or tow ticket of tow truck operator to see if a tag was on vehicle at beginning of tow (if private tow); 4. Check of vehicle for inspection sticker or other stickers and decals that may indicate a state of possible registration; and 5. Check of the interior of the vehicle for any papers that may be in the glove box, trunk, or other areas for a state of registration. The Permittee shall maintain a separate log of vehicles in which the owner or lien holder cannot be determined, which log shall be kept at Permittee's principal place of business, and which shall list the date and time of the tow, location towed from, total towing and storage charges, and best efforts made to notify the owner or lien holder. 18. VIEWING OF IMPOUNDED VEHICLES 33 Page 442 of 1252 Permittee shall allow the registered owner of an impounded vehicle, or the registered owner's authorized representative (including, without limitation, an insurance representative), upon producing proper identification, to view and inspect the vehicle within a reasonable time upon his/her their arrival at Permittee's storage facility, and before payment of any charges. The vehicle owner (or authorized representative) shall be permitted to remove any personal possessions from the vehicle that are not affixed to the vehicle (including telephones, tapes, tools, etc.), and the Permittee shall reasonably assist the owner (or authorized representative) in doing so. The vehicle owner (or authorized representative) shall acknowledge receipt of all personal property on a form provided by Permittee. 19. VEHICLE RELEASES Permittee shall release an impounded vehicle to the registered vehicle owner (or authorized representative) upon payment of the appropriate fee(s), and no later than thirty (30) minutes from receipt of such payment. The Permittee shall release any vehicle except a vehicle that has been marked as a "police hold". A person or persons whos make application for the release of a vehicle shall be required to produce proof that he/she (or they) are either the registered owner of the vehicle or, in cases where release is not to the owner(s), that he/she or they have been designated as the owner's legally authorized representative. For a registered owner(e) sufficient proof may be demonstrated by presentation of the vehicle title or registration and photo identification. For legally authorized representatives of the owner(s), proof of agency shall be required which may include, without limitation, a written permission fully executed by the authorized owner(s), a duly executed power of attorney, such other written documentation evidencing that the person claiming release of the vehicle is 34 Page 443 of 1252 authorized to do so by the owner(s). A photo ID will also be required. A photocopy of the documentation and of the photo ID used for the vehicle release shall be attached to the copy of the vehicle storage receipt_ (Ssuch copies shall be clearly legible/identifiable). Notwithstanding the preceding, or any other term or condition of the Permit, Permittee shall be solely responsible for whatever means and methods, as it deems necessary to ensure and ascertain that a vehicle has been released to the registered owners) or a duly authorized representative of the owners) and the City shall have no liability, whether to Permittee, the vehicle owner(s), or any other third parties, as a result of an improper or erroneous release of a vehicle by Permittee. All vehicles that have not been claimed shall be disposed of according to applicable law(s). Permittee will be required, within three (3) days after a sale or, if a title is surrendered forpayment, to submit to the City a detailed listing of the vehicle identification number, tow receipt number, police case number (if applicable), year, make, model of vehicle, monies received, and the purchaser's name, address and local telephone number. In the event that a vehicle is "junked," Permittee shall provide the City with a copy of the certificate of destruction (as required by State law). This copy shall be attached to the copy of the vehicle storage receipt. In the release section of the vehicle storage receipt, information shall be recorded as to the name, address, and local telephone number of the person or company that takes possession. In cases where the registered owner(s) of the vehicle relinquishes all claims to the vehicle and transfers ownership of the vehicle to Permittee, Permittee shall not charge a fee for services rendered. 35 Page 444 of 1252 Permittee shall notify the City Manager or his designee of all abandoned/ unclaimed vehicles prior to such vehicles being slated for auction. All vehicles slated for auction must first be approved in writing by the City Manager or his designee. The City shall have the right to bid on such vehicles, and may obtain title upon payment of towing and storage charges, provided there are no other bidders. The City Manager shall designate an MBPD representative to track the vehicle auctions and make the appropriate bidding on behalf of the City. 20. EMERGENCY TOWING OF CITY VEHICLES Permittee shall provide emergency towing services for City fleet vehicles at no charge to the City, for maximum of sixty two (682) vehicles per year per sempanyPermittee. Each Permittee shall provide such services for one month at a time, on a rotating basis. This service is designed to remove and secure fleet vehicles owned by the City which become disabled. Such emergency service is limited to Miami- Dade and Broward Counties: Whenever the maximum of sixty (60) vehicles is met by each eempaiPermittee, the City may-shall be billed for the subject tows at $50.00 dollars per tow. Permittee may receive requests for emergency towing of City vehicles from the City Manager or his designee, who will provide Permittee with the following information: 1. location of the vehicle, with thenearest street address; 2. make, year, model and tag number of the City vehicle, together with all information available as to the condition of the vehicle; and 3. name of the City employee operating the vehicle. The Permittee shall tow and return a disabled City vehicle to the Mechanical Maintenance Garage at 140 MacArthur Causeway. Disabled MBPD vehicles 36 Page 445 of 1252 may, at the instruction of the police officer operating the vehicle, be towed to the Miami Beach Police Station at 1100 Washington Avenue--(instead of the - - -_ - - - _ _c Garage). 21. ABANDONED VEHICLES Permittee shall remove abandoned vehicles on public streets, highways, right of ways, and other City or publicly owned property, upon request of the City Manager or his designee. For purposes of this section, the term "vehicle" shall include, without limitation, automobiles, trucks, truck bodies, and house trailers (including vehicles which may be partly or entirely dismantled, or consist of only a major portion of the body or framework). An-MBP-g- Police officer or a City Parking Enforcement Specialist shall issue and affix stickers on abandoned vehicles. After a minimum of two (2) days, if the vehicle is not removed, it may be towed at the request of the City. However, vehicles parked where parking is prohibited, or so as to be a hazard or obstruction to traffic, may must be towed immediately. Notwithstanding the preceding paragraph, vehicles properly parked in one of the City's Residential Parking Permit Districts and displaying a valid Residential Parking Decal shall not be regarded as abandoned. Permittee shall notify, by certified letter return receipt requested, the registered vehicle owner or lien holder, advising of the vehicle location, and that the vehicle must be claimed within thirty-five (35) days (including full payment of towing, storage, and any other charges). Abandoned vehicles may be stored at Permittee's authorized storage facility, or at a salvage company located outside the City limits. 37 Page 446 of 1252 Permittee shall pay the City twenty dollars ($20.00) per tow for every abandoned vehicle that Permittee tows. Permittee shall assume and be solely responsible for, and shall fully defend, indemnify and hold the City, its officers, employees, agents, contractors, and servantsconsultants, harmless from and against all claims and demands by any and all parties whatsoever for violation—related to (and including but not limited to alleged violation of) of-Section 713.78(5), Florida State Statutes (as same may be amended from time to time). The Permittee shall pay all judgments obtained by reason of a violation of Section 713.78, Florida Statutes, as specified in suit or suits against the City, including all legal costs, court expenses and attorney fees, and other like expenses. Permittee shall have the right to join in the defense of such suits. 22. MAXIMUM ALLOWABLE RATES The City Commission shall establish the maximum allowable rates for towing, removal, and storage services provided under the Permit. The Permittee shall not charge in excess of the following maximum allowable rates established by the City (as same may be amended from time to time): See 'Section M, entitled herein "Miami Beach Resident Discount" below for Resident rates. A. The first eight (8) hours of storage shall be without charge. Permittee shall document date and time of vehicle intake and also the date and time of retrieval of said vehicle by customer. Time shall be documented via an electronic time keeping stamping device that reflects the time either in military format or including a.m./p.m. as applicable, to avoid confusion and manipulation of data. Thereafter the following storage rates shall apply per day: 38 Page 447 of 1252 (1) Inside-Interior (a) Motorcycles or Scooters $12.00 (b) Any vehicle less than 20 $30.00 feet in length and 8 feet in width (c) Any vehicle over 20 feet in length $40.00 (2) Outside-Exterior (a) Motorcycles or Scooters $10.00 (b) Any vehicle less than 20 feet in length and 8 feet in width. $30.00 (c) Any vehicle over 20 feet in length $30.00 (3) Boat and Trailer (Owner's Unit) (a) Unit under 20.feet in length $20.00 (b) Unit 21 feet to 35 feet in length $35.00 (c) Unit over 35 feet in length $45.00 B. Tow Rate Class "A" Tow Truck and Class "A" Car Carrier, including: 1. First 30 minutes at the scene $1101558.00 2. Unlocking door 3. Dropping/hooking up linkage 4. Wheel lift equipment 5. Use of Dolly C. Class "B" Tow Truck including: 1. First 30 minutes at the scene $1545.00 2. Unlocking door 39 Page 448 of 1252 3. Dropping/hooking up linkage ^der reach equipment D. Class "C" Tow Truck including: 1. First 30 minutes at the scene $175180.00 2. Unlocking door 3. Dropping/hooking up linkage 5. Air hookup 6. Under reach equipment E. Tow Rate Class "D" Tow Truck, including: 1. First 30 minutes at the scene $200220.00 2. Unlocking door 3. Dropping/hooking up linkage 1. Removal of air dams, shafts, or axles 5. Air hookup 6. Un F. Tow Rate Class "B" or"C" Car Carrier $125.00 including: 1. First 30 minutes at the scene 2. Unlocking door 3. Dropping/hooking up linkage G. Use.of Contractor's Boat Trailer, any length,including storage, per day: 1. Trailer up to 18 feet in length $ 50.00 2. Trailer 18 to 30 feet in length $ 75.00 40 Page 449 of 1252 3. Trailer over 30 feet in length $150.00 H. Special and additional charges 1. Extra labor or extra waiting time $16.50 per hour_after the first 30 minutes at the scene and prorated after the 1st hour in 15 minute increments. 2. Mileage charges: _$6.00 per mile, maximum of$42 per tow 3. Administrative fee:— $35.00 maximum per tow This fee must be documented by attaching title or owner search results to the tow receipt submitted to the City. Undocumented search will result in a $70.00 penalty. 4. Dollies or Flatbed Services: , $40.00 Usage of Dollies and Flatbed is only allowed on-site prior to or in the process of moving the vehicle and must._ be documented on-site with a body worn camera. If not properly documented, a penalty of eighty $80.00 dollars will be imposed. 41 Page 450 of 1252 5. tabor to Engage/Tow: This is not an automatic fee and may only be imposed when access to enter the vehicle is required to properly engage/tow vehicle- $30.00 charge) 6. After Hours Fee: $30.00 An Afterr How-hours fl=ee may be assessed for tows retrieved between the hours of 85:00 PM and 8:00 AM. Monday t ruthrouoh Friday and Saturday and Sunday all day. ---$3 I. Road Service. Jump start, delivery of gas, door opening, tire change when there is no tow $ 20.00. J. Cost of any waiting time or extra labor (i.e., "retrieving", special handling) accomplished within thirty (30) minutes of arrival at the scene of a tow shall be included in the base tow rate. If, and only if, such waiting time or extra labor consumes more than thirty (30) minutes, an extra waiting time or extra labor charge, per fifteen (15) minutes or any fraction thereof, may be assessed (commencing thirty (30) minutes after arrival at the scene). Any extra waiting time or extra labor charge authorization should be made by the MBPD Police officer or Parking Enforcement Specialist on the scene, whenever possible, and shall be so indicated in writing on the vehicle storage receipt. 42 Page 451 of 1252 K. A maximum administrative charge, not exceeding $3835.00 (and not as an automatic "add-on", but only when required to comply with Florida Statutes), may be imposed by Permittee for administrative services such as processing of paperwork, clerical work, or title research. "Administrative charges" are defined as costs associated with verification of a vehicle identification number; search of vehicle for ownership information; preparation of paperwork required by Florida Statutes; preparation and mailing of the notification letter(s); and preparation of vehicle for auction (including notification to owner or lien holder). Administrative charges shall not be imposed on vehicles with a "police hold" until or unless the hold is removed. Storage for City (confiscated) vehicles with "police holds" is free of charge to the City. L. Indexing Provision: The City Manager or his designee may initiate an administrative review of the Maximum Allowable Rates whenever the cumulative change in the Consumer Price Index (CPI — All Urban consumers — US City average — All items — Base Period 1982-84 = 100 ) (CPI), between the current CPI and the date of the CPI used to establish the last rate adjustment, is greater than five percent (5%). Upon reaching this threshold and, further, following a survey conducted by the City of maximum allowable towing rates for similar services in surrounding communities, and/or an analysis to review the current cost of providing such services, the City Manager or his authorized designees shall prepare a recommendation as to whether there should be an adjustment to the Maximum Allowable Rates; which recommendation shall be subject to final approval by the Mayor and City Commission. M. Miami Beach Resident Discount 43 Page 452 of 1252 The-rate adjustments to the Maximums--Allewabte-Rates set forth in-Section 22 he-reof -shall not apply--to-City of Miami Beach residents shall receive a 20% discount to the Maximum Allowable Rates set forth in Section 22 hereof (such exemption(s)discount for City of Miami Beach residents shall hereinafter be referred to as the "Miami Beach Resident Discount"). In order to be eligible for the Miami Beach Resident Discount, residents must provide proof of residency within the City of Miami Beach, and their driver's license information must match the registration information of the vehicle being towed. Permittee shall maintain a log documenting discounts given to City residents pursuant to the Miami Beach Resident Discount, which log shall be available for inspection and copying by the City Manager or his designee, upon request. Permittee shall prominently post a sign displaying the Maximum Allowable Rates for both City and non-City residents within the area(s) on its premises designated for the vehicle owner or his agent to transact business. 23. RESPONSIBILITY FOR PAYMENT The vehicle owner (or legally authorized representative) of the vehicle shall be responsible for payment of charges imposed by the Permittee, due upon vehicle release. The City shall not be responsible for any charges imposed for towing and storage, or for securing payments due upon vehicle release. Permittee shall must accept credit cards as payment in a the following as-ascep-table-forms of payment: cash, credit cards, travelers checks, or personal bank checks drawn on a bank in Miami-Dade, Broward, or Monroe Counties, or credit-cards. -- '- ••'• -- - e • -= e e• __ _ -e- • e F--bast, 44 Page 453 of 1252 paymeats-Permittee may require two (2) forms of identification, one of which shall be a picture identification. The Permittee is allowed to offer a discount for cash payments. Permittee shall install and continuously operate and maintain in good working order at least one (1) automatic teller machine (ATM) on its premises. 24. WAIVER OF "DROP FEES" Drop fees occur when a vehicle owner (or other legally authorized person in control of the vehicle) arrives on the scene of a tow, prior to removal of the vehicle from the scene, and the vehicle has been engaged (hooked) by the tow truck, but has not left the scene. Although Florida law and Section 106-261 of the City Code allows Permittee to assess a "drop fee" (of not more than 50% of the posted towing rates), and continuing throughout the Permit term, Permittee hereby agrees to voluntarily waive any and all drop fees for registered vehicle owners or other legally authorized person in control of the vehicle arriving at the scene prior to the removal or towing of the vehicle. The provisions of this section shall not apply where a vehicle has a "police hold". 25. REPORTS AND FILES The Permittee shall maintain the following records at its principal place of business within the City: A. Permittee shall provide standardized, printed, sequentially numbered, City designed invoice forms listing the nature of the work performed by it for tows. An invoice shall be made for each and every vehicle towed. 45 Page 454 of 1252 Permittee shall keep on file for three (3) years from the expiration of the permit, copies of all paid invoices, together with vehicle storage receipts, and any and all impound logs (filed sequentially by MBPD Police case number or Parking Department sequentially numbered forms) during the Permit term. These records shall be subject to inspection by the City or its authorized representatives during regular business hours. B. Standardized, printed, sequentially numbered vehicle storage receipts (yellow and goldenrod copies) for each and every vehicle towed by authority of the City, indicating reason for impoundment, vehicle description, date and time towed, location towed from and to, date and time released, proof of ownership notification, and all itemized charges. Once the release occurs, the yellow copy is to be returned to the City with information including name, address, and telephone number of the individual to whom the vehicle was released (This information must appear legibly on both the yellow and goldenrod copies). The goldenrod copy will be retained by Permittee. These files will be maintained sequentially according to the MBPD or Parking Department case number. C. A log of all calls for service by the MBPD and/or Parking Department on a weekly basis. D. An Impound/Notification Log indicating, at a minimum, date, time and method of notification to the registered owner of an impounded vehicle. E. A log indicating vehicles to be auctioned, date of auction, name and address of owner and lien holder, and date contacted. F. A log indicating vehicles sold at auction, date auction notice was published, proceeds of auction, and distribution of proceeds. 46 Page 455 of 1252 G. Permittee shall keep on file for three(3) years from the expiration of the permit, copies of all paid invoices, together with vehicle storage receipts, and any and all impound logs (filed sequentially by MBPD case number or Parking Department sequentially numbered forms) during the Permit term. These records shall be subject to inspection by the City or its authorized representatives during regular business hours. All of Permittee's files, records, and logs shall be available for inspection by the City or its authorized representatives during regular business hours. Permittee shall make available adequate work space including,but not limited to, a table and chair, for City representatives inspecting records. 26. FORWARDING REPORTS TO POLICE DEPARTMENT, PARKING DEPARTMENT AND THE CITY MANAGER'S OFFICE The Permittee shall be solely responsible for forwarding to the following reports to the MBPD, Parking Department, and the City Manager's Office, by 3:00 P.M. of each Friday during the Permit term: A. Copies of all vehicle storage receipts for vehicles released the previous week, together with copy of completed numbered invoice for each vehicle. B. Original log of all calls for service by the on a weekly basis. C. Original log of all vehicles with police holds in the custody of Permittee. D. Original impound/notification Log for previous week. E. Original log completed prior to vehicle auctions. F. Copy of public notice of auction (10 days prior to auction). G. Original log completed immediately following auction. All copies shall be legible. Originals shall be provided, upon request by the City Manager or his designee. 47 Page 456 of 1252 27. INSPECTIONS AND AUDITS Permittee agrees that all of its records, equipment, personnel, office and storage facilities will be subject to periodic inspection and audits by the City Manager or his authorized representative and, in the case of inspection checks, without the need for prior notice to Permittee. The City--ar+d-P-ermittec ag ee-to--t"^ ,osedures, system nd controls attached as-Exhibit "C" hereto, for th- e_ e e - _ - _'' educting ancial-audits-conccrning P-ermittee's operation-s-pursuant-to-the Per-mit: 28. ETHICS AND CONDUCT The Permittee shall conduct its business in an orderly, ethical, and business-like manner at all times, and shall use every means to obtain and keep the confidence of the public. All public contact shall be in a courteous and orderly manner. 29. COMPLAINTS AND DISPUTES It is the sole responsibility of Permittee to address customer service issues in a polite, courteous, and respectful manner, regardless of the comportment of the complainant. Clearly, verbal or physical abuse is unacceptable and police assistance should be sought if a particular conflict escalates. Any complaints received by the City concerning a violation by Permittee of Article V, Division 2, Sections 106-211 through 106-255 of the City Code, or these Administrative Rules and Regulations (including, without limitation, misconduct, excessive charges, poor business practices, damage to vehicles, etc.), shall be referred to the City's Chief of Police or to the City's Parking Director for investigation (depending 48 Page 457 of 1252 on which City department originated the tow). The respective department shall use reasonable efforts to notify Permittee (whether verbally or in writing) of any such complaints (including the specific nature thereof) within five (5) business days from receipt of the complaint. The Permittee shall provide written explanation and information with respect to the particular complaint, within five (5) business days from notice by the City. Permittee's response shall include identification of any proposed resolution(s) and corrective measure(s) to be taken. A written disposition of the complaint will be forwarded to the. Permittee (and complainant) upon completion of the City's investigation. The City Manager reserves the right, in his sole discretion, to require Permittee to refund all or any portion of the towing fees to a complainant, as liquidated damages, should the City rule in favor of the complainant. If there have been three (3) or more substantiated complaints filed with the City within a ninety (90) day period during the Permit term, the City Manager may suspend the Permit for a period of up to thirty (30) days, with no reduction in the Permit fee. 30. "HOW'S MY DRIVING?" PROGRAM Permittee shall be required to establish and continuously operate a tow truck. driver safety improvement program, through an independent third party source that will establish a telephone contact and e-mail contact for receipt of complaints regarding unsafe tow truck operator driving throughout the City, which will be addressed by the Permittee to the satisfaction of the City Manager. Each vehicle will prominently display contact information for the public to report issues relating to the tow truck operator's driving. Upon request of the City Manager, Permittee shall provide a report from the 49 Page 458 of 1252 independent third party source identifying any and all complaints lodged against the Permittee; investigations conducted by the Permittee; and corrective actions taken by the Permittee to the satisfaction of the City Manager. Prior to implementation, the aforestated Program shall be reviewed and approved by the City Manager, which approval shall not be unreasonably withheld. Any changes to the approved Program shall also be subject to the prior written approval of the City Manager. 31. CUSTOMER SERVICE/INFORMATION ITEMS AND MATERIALS It is the City's intent to ensure the highest levels of customer service are provide to its residents, visitors, and tourists. To this end, all of Permittee's employees, agents contractors, or servants that may have contact with customers with the general public must attend and participate in the City's Towing and Customer Contact Training. This training will specifically address customer relations training, including diffusing situations, demeanor/body language, and conflict resolution. All of Permittee's employees, agents, contractors or servants that have contact with customers or with the general public will be required to attend this training twice annually (every six months) throughout the term of the Permit. Permittee will further develop and issue informational materials providing answers to frequently asked questions, such as rates, directions/location of storage lots, and contact information. 32. CITIZENS BILL OF RIGHTS FOR TOWING Permittee shall establish and continually operate and maintain a bilingual informational campaign, advising a vehicle owner who has been towed of his/her rights and important related information, including tow rates, methods of payment, and complaint contact information. Prior to implementation, the aforestated campaign shall be reviewed and approved by the City Manager, which approval shall not be 50 Page 459 of 1252 unreasonably withheld. Any changes to the approved campaign shall also require the prior written approval of the City Manager. Following approval of the Towing Bill of Rights by the City Manager, Permittee shall post notice on all of its service vehicles, identifying to the availability of a copy of the full Citizen's Bill of Rights to the general public, as well as advising the public of the "no drop fee" provision in Section 24. The notice on the vehicle shall be displayed in a prominent place on the vehicle and clearly visible and legible, in letters at least two (2") inches high. 33. NON-DISCRIMINATION POLICY In connection with the performance of work/services under this Permit, Permittee shall not exclude from participation in, deny the benefits of, or subject to discrimination anyone on the grounds of race, color, national origin, sex, age, disability, religion, income or family status. Additionally, Permittee shall comply fully with the City of Miami Beach Human Rights Ordinance, codified in Chapter 62 of the City Code, as may be amended from time to time, prohibiting discrimination in employment, housing, public accommodations, and public services on account of actual or perceived race, color, national origin, religion, sex, intersexuality, gender identity, sexual orientation, marital and familial status, age, disability, ancestry, height, weight, domestic partner status, labor organization membership, familial situation, or political affiliation. Permittee shall take affirmative action to ensure that employees are treated during their employment without regard to their race, color, national origin, religion, sex, intersexuality, gender identity, sexual orientation, marital and familial status, age, disability, ancestry, height, weight, domestic partner status, labor organization membership, familial situation, or political affiliation. 51 Page 460 of 1252 Permittee must complete and submit the City's Disability Non-Discrimination Affidavit (Affidavit). In the event Permittee fails to execute the City's Affidavit, or is found to be in non-compliance with the provisions of the Affidavit, the City may impose such sanctions as it may determine to be appropriate, including but not limited to, withholding assignment of tows to Permittee under the Permit until compliance, and/or cancellation, termination, or suspension of the Permit. In the event the City cancels or terminates the Permit pursuant to this Section, Permittee shall not be relieved of liability to the City for damages sustained by the City by virtue of Permittee's breach. 34. ASSIGNMENT Permittees shall not assign, transfer, convey, sublet or otherwise dispose of this Permit, or of any or all of its rights, title or interest therein, or its or its power to execute such permit, to any person, company or corporation without the prior written consent of the City Commission. 35. CHANGES IN RULES AND REGULATIONS Any amendment to these Administrative Rules and Regulations shall be subject to the prior written recommendation of the City Manager and, thereafter, approval of the City Commission. Any changes in the schedule of Maximum Allowable Rates shall also be subject to the prior recommendation of the City Manager andT City Commission approval_;efevided however, that aAny change in the Maximum Allowable Rates requested by Permittee shall only be considered by the City on/or about October 1st of each year during the Permit term. 36. CITY CODE AND ADMINISTRATIVE RULES AND REGULATIONS INCORPORATED BY REFERENCE INTO PERMIT 52 Page 461 of 1252 The Permit shall incorporate by reference (as if fully set forth therein) Article V, Division 2, Sections 106-211 through 106-255 of the Miami Beach City Code, and these Administrative Rules and Regulations, as same (respectively) may be hereinafter amended from time to time, and compliance therewith shall be binding upon Permittee and required as a condition of the Permit. F:\PING\SMAN Parking Contracts\Towing\revised 2020 towing permit revisions 2-02-2021.doc • 53 Page 462 of 1252