OIG No. 22-14: Medley Metal Recycling, LLC AuditJoseph M. Centorino, Inspector General
TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
DATE: May 2, 2023 AUDIT: Medley Metal Recycling, LLC Audit
OIG No. 22-14 PERIOD: January 1, 2018 through August 31, 2021
This report stems from an audit of the Miami Beach transactions performed by Medley Metal Recycling, LLC during the January 1, 2018, through August 31, 2021, audit period. Although
substantiated recyclable transactions are exempt from roll-off permit fees, the contractor is
required to maintain and provide the City, upon request, with sufficient documentation to verify all claimed exemptions. The City Attorney's Office has advised that the underlying transactions
are subject to the roll-off provisions pursuant to Chapter 90 of the City Code.
The City of Miami Beach Office of the Inspector General (OIG) Sanitation Tax Auditor examined the contractor's compliance with selected provisions in the City Code and Florida Statutes, including the contractor's obtaining annual business tax receipts (BTRs), acquiring permits, filing
reports, and maintaining sufficient insurance coverage. The performance of City staff responsible for monitoring Medley Metal Recycling, LLC and processing any received payments was also reviewed.
INTRODUCTION
City Code Section 90-2 defines recyclable materials as "those materials capable of being recycled and which would otherwise be processed or disposed of as solid waste. Any recyclable material
mixed with solid waste shall be considered to be solid waste." Solid waste includes bulky waste,
commercial refuse, garden trash, tree and shrubbery, garbage, refuse, rubbish, special handling
trash, trash, hazardous waste, biohazardous waste, industrial waste, residential refuse, white goods, or other discarded material, including solid, liquid, semisolid, or contained gaseous
material, resulting from domestic, industrial, commercial, mining, or agricultural operations.
City Code Section 90-107 provides that the collection and disposal of recyclable materials shall be exempt from the requirements of Chapter 90, which include the charging of roll-off permit fees
to its customers.
City Code Section 90-192 provides as follows:
(a)No person shall engage in the business of disposal and/or collection of any kind of solid
waste, or recyclable material within the City without first having been approved by the city
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manager, and having secured a current business tax receipt for such activity. The
business tax receipt will be issued once an applicant has met all requirements, as set forth
in this division and chapter 18, and has paid the applicable business tax receipt fee.
(b) Business tax receipts for private waste contractors shall be classified as follows:
(1) Franchise waste contractors;
(2) Roi/off and grapple service contractors;
(3) Recycling contractors;
( 4) Hazardous waste contractors; and
(5) Biohazardous waste contractors.
Roll-off contractors operating in Miami Beach are required to follow the terms outlined in the City
Code, which include the monthly remittance of permit fees equal to the City Commission approved
rate multiplied by its total gross receipts. City Code Section 90-221 defines gross receipts as the
entire amount of fees collected by the contractor (whether wholly or partially collected) for solid
waste collection and disposal within the City, excluding any taxes, and gross receipts from
servicing roll-off and portable containers.
City Code Section 90-193 states, "The city manager shall require, and will issue, a permit for each
garbage facility, recycling, hazardous and biohazardous waste, rolloff and portable container, for
all solid waste accounts in the city serviced by a private waste contractor." These permits were
issued by the City Sanitation Division during the audit period after verifying compliance with all
requirements.
City Code Section 90-196 details the required insurance coverage to be maintained by each
private waste contractor throughout the entire effective period and/or term of its BTR and/or
franchise agreement, whichever is longer. Operation of activities by the contractor without the
required insurance shall be grounds for revocation or suspension of the contractor's BTR and/or
franchise agreement.
City Code Section 90-278 requires that monthly reports, accompanied by payment of any owed
fees, are to be submitted to the City's Finance Department by all authorized contractors at the
end of the month after the month in which the gross receipts were generated. For example, the
monthly report and any associated roll-off fees owed for January 2023 are due by February 28,
2023. Any unpaid fees that are not timely received are subject to penalties of 10% per month up
to a maximum of 50%, plus interest at the highest rate permitted by law on the amount of the fee,
exclusive of penalties, from the date on which the permit fee first became delinquent until paid.
City Code Section 90-308 states, "Each recycling contractor shall deliver monthly to the city
manager or his authorized designee, an accurate report regarding the nature and disposition and
volume of recyclable materials collected by it from each account in the city. Upon request by the
city manager or his authorized designee, each contractor shall also furnish the city with verifiable
information regarding the method and place of final disposal or distribution of said materials."
OVERALL OPINION
According to the website https://www.buzzfile.com/business/Medley-Metal-Recycling,-LLC-305-
805-0033, Medley Metal Recycling, LLC is located at 9651 NW 89" Avenue in Medley, FL. The
company was established in 2010 and has been operating for approximately 13 years.
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The following deficiencies, separated by the deficient party(ies), were identified during the audit
process:
A.
B.
C.
Findings pertaining solely to Medley Metal Recycling, LLC
1. Miami Beach transactions claimed as exempt, but not substantiated by the
contractor, were assessed roll-off permit fees totaling $1,308.50 (including
penalties and interest). In addition, $3,529.88 in associated audit costs is due
pursuant to City Code Section 90-278(6).
2. Medley Metal Recycling, LLC did not timely obtain its fiscal year BTRs related to
roll-offs during the audit period pursuant to City Code Section 90-192.
3. Medley Metal Recycling, LLC records provided to the OIG indicate the usage of
roll-off containers at 13 Miami Beach locations during the audit period without
obtaining the required permits, contrary to City Code Sections 90-193 and 90-276.
No Notices of Violations (NOVs) were issued to the contractor for these
unpermitted jobs.
Findings pertaining solely to the City
4. Medley Metal Recycling, LLC was assigned three different contact numbers in the
City's EnerGov system, thereby complicating the search process to determine
whether any outstanding balances exist.
Findings pertaining to both Medley Metal Recycling. LLC, and the City
5. Medley Metal Recycling, LLC did not remit any required monthly recycling reports
during the audit period to the Sanitation Division pursuant to City Code Section
90-308 and the Code Compliance Department was not notified to issue any
corresponding NOVs pursuant to City Code Section 90-346(c).
In addition, the OIG Sanitation Tax Auditor identified a deficiency occurring after January 1,
2022, which is four months after the August 31, 2021, audit period concluded. It is presented as
finding #6 starting on page 11 of this audit report, and the OIG has recommended that the City
Finance Department examine this issue and promptly take corrective action. It is important to
note that this identified deficiency applies to all contractors with valid BTRs after the adoption of
City Resolution No. 2021-4456, effective December 18, 2021.
PURPOSE
The purpose of this audit was to determine whether tested contractor filings were complete and
accurate based on the furnished documentation; whether corresponding remittances due were
correctly calculated using the City Commission approved roll-off permit fee rate; whether filings
and monies due were timely received and correctly recorded by the City; and whether the
contractor was compliant with other designated City Code sections.
SCOPE
1. Determine whether the contractor maintained and provided sufficient records to verify the
completeness and accuracy of its Miami Beach transactions; and whether its
corresponding Miami Beach gross receipts were accurately computed.
2. Determine whether the contractor timely submitted the tested monthly reports of gross
receipts and remitted full payment of any fees due to the City. If not, determine whether
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the appropriate penalty and interest charges were levied pursuant to City Code Section
90-278(6)(a-d).
3. Determine whether the contractor timely obtained its required annual BTRs during the audit
period pursuant to City Code Section 90-192.
4. Determine whether the contractor complied with reporting requirements listed in City Code
Sections 90-278 and 90-308.
5. Determine whether the contractor maintained the required insurance coverage pursuant
to City Code Section 90-196.
FINDINGS AND RESULTS/RECOMMENDATIONS
The findings below are separated by those pertaining solely to the contractor, those pertaining
solely to the City, and any pertaining to both the contractor and the City. Finding #6 occurred
outside the audit period, but it was included in this report to notify the Finance Department to take
prompt corrective action, when necessary, in relation to all roll-off contractors operating in Miami
Beach after December 2021.
Findings Pertaining Solely to Medley Metal Recycling, LLC
1. Miami Beach Transactions Claimed As Exempt But Not Substantiated By The
Contractor Were Assessed Roll-Off Permit Fees Totaling $1,308.50 (Including
Penalties and Interest) And $3,529.88 In Audit Costs.
City Code Section 90-2 defines recyclable materials as "those materials capable of being
recycled and which would otherwise be processed or disposed of as solid waste. Any
recyclable material mixed with solid waste shall be considered to be solid waste." Solid
waste includes "bulky waste, commercial refuse, garden trash, tree and shrubbery,
garbage, refuse, rubbish, special handling trash, trash, hazardous waste, biohazardous
waste, industrial waste, residential refuse, white goods, or other discarded material,
including solid, liquid, semisolid, or contained gaseous material, resulting from domestic,
industrial, commercial, mining, or agricultural operations."
Florida Statute 403. 707 states, "Permits. ( 1) A solid waste management facility may not
be operated, maintained, constructed, expanded, modified, or closed without an
appropriate and currently valid permit issued by the department..." and Florida
Administrative Code 62-701.710 states, "Waste Processing Facilities. (b) No person shall
construct or operate a waste processing facility without a permit issued by the
Department." Furthermore, City Code Section 90-2 states, "Recycling contractor means a
private contractor licensed by the city and state who collects recyclable materials and
transports same to a state-or county-licensed recycling facility for processing."
The Office of the City Attorney has opined that the burden of proof is on the contractor to
prove to the City that only recyclable materials were collected from Miami Beach
customers and delivered for disposal to a recycling facility with a permit issued by the
State of Florida Department of Environmental Protection. Dump tickets are an essential
record to verify that only recyclable materials were delivered to an approved disposal site.
No such records were initially provided by the contractor despite multiple requests from
the OIG Sanitation Tax Auditor. The contractor then sent a March 21, 2022 email to the
OIG Sanitation Tax Auditor indicating that no documentation was available to support its
assertion that only recyclable goods were collected and disposed of.
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Therefore, the claimed exemptions were disallowed due to the lack of substantiation and
the OIG Sanitation Tax Auditor assessed roll-off permit fees on all identified Miami Beach
transactions in its initial August 8, 2022, draft audit report disbursed to all affected parties.
As the allotted 30-business day rebuttal period granted to all affected parties, pursuant to
Section 2-256(h) of the City Code, was expiring, the contractor provided 129 dumpster
tickets related to 162 of the 202 claimed exempt Miami Beach recycling transactions
occurring during the audit period. The OIG Sanitation Tax Auditor verified these 162
transactions were exempt and each was removed from the initial assessment.
After no additional records were provided to the OIG Sanitation Tax Auditor despite
several more requests, a second draft report was issued and disbursed to all affected
parties. In response, the contractor provided evidence for an additional 29 transactions,
which was examined and verified by the OIG Sanitation Tax Auditor, and the assessment
was revised accordingly.
Despite more requests from the OIG Sanitation Tax Auditor, the contractor did not provide
evidence related to the remaining 11 unsubstantiated Miami Beach transactions (202-
162 - 29 = 11). In lieu of receiving this evidence, these transactions were treated as if
each involved the removal and disposal of solid waste through the usage of a roll-off
container pursuant to City Code Section 90-2 and the City Attorney's legal opinion. As a
result, $1,308.50 in roll-off permit fees is due to the City (including penalties and interest),
as shown by period in the table below.
Unreported Roll-Off Roll-Off Interest Total
Period Gross Receipts Fee Rate Fees Due Penalties ke Amount
Due
Jan. 2018 - Dec. 2018 $1,603.50 18% $288.63 $144.32 $142.58 $575.53
Jan. 2019-- Oct. 5, 2019 $0.00 18% $0.00 $0.00 $0.00 $0.00
Oct. 6, 2019- Dec. 2019 $0.00 20% $0.00 $0.00 $0.00 $0.00
Jan. 2020 - Dec. 2020 $2,572.40 20% $514.48 $32.50 $9.84 $556.82
Jan. 2021-- Aug. 2021 $550.00 20% $110.00 $55.00 $11.15 $176.15
Totals $4,725.90 $913.11 $231.82 $163.57 $1,308.50
City Commission approved roll-off permit fees equaled 18% from the beginning of the audit
period, January 1, 2018, through October 5, 2019, and 20% from October 6, 2019, through
the end of the audit period, August 31, 2021.
Penalties and interest were waived and not charged for late payments received during the
period of March 1, 2020, through November 30, 2020, pursuant to City Resolution Nos.
2020-31237 and 2020-31390.
In addition, City Code Section 90-278(6) states as follows: If the contractor fails to timely
pay the full permit fee as set forth in subsections (1) and (2) of this section, the contractor
shall pay any and all of the city's expenses for collection of such fees, including, but not
limited to, court costs, audit costs and reasonable attorney fees. As a result, it was
calculated that the City is due $3,529.88 in audit costs, related to the completion of this
audit by the OIG Sanitation Tax Auditor.
Results/Recommendations:
The contractor should maintain sufficient documentation, to be furnished upon request to
the City, related to all Miami Beach transactions. If not, all corresponding transactions will
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be assumed to involve the removal of solid waste and the applicable City Code
requirements will be enforced.
The City Finance Department should invoice Medley Metal Recycling, LLC $1,308.50 for
unreported and unpaid roll-off permit fees due during the audit period, including penalties
and interest, related to the 11 unsubstantiated Miami Beach transactions. The City
Finance Department should also invoice the contractor $3,529.88 in audit costs pursuant
to City Code Section 90-278(6). Once these invoices are received totaling $4,838.38
($1,308.50 + $3,529.88 = $4,838.38), the roll-off contractor should timely remit full
payment to avoid additional penalties under the City Code.
Finance Department Response:
The Finance Department billed and adjusted (invoice# 40417) Medley Metal Recycling,
LLC as follows:
Roll-off Fees Due
Penalties
Interest
Audit Costs
Total
$ 913.11
$ 231.82
$ 163.57
$3,529.88
$4,838.38
2. Medley Metal Recycling, LLC Did Not Timely Obtain Its Fiscal Year BTRs Related To
Roll-Offs During The Audit Period.
City Code Section 102-356 defines business tax as the fees charged for and the method
by which the City grants the privilege of engaging in or managing any business,
profession, or occupation within the City's jurisdiction. Furthermore, Section 102-360
states, "Each business tax receipt shall be valid for one year. Tax receipts shall be issued
beginning October 1 of each year and shall expire on September 30 of the following year,"
and Section 102-370 states, "(a) The City shall endeavor to notify all business tax receipt
holders that their business tax receipts are due for renewal. However, if the taxee does
not receive a renewal notification, the taxee is responsible to renew the business tax prior
to October 1 to avoid delinquent charges."
In addition, Section 90-192 states, "(a) No person shall engage in the business of disposal
and/or collection of any kind of solid waste, or recyclable material within the city without
first having been approved by the city manager, and having secured a current business
tax receipt for such activity." Section 90-278(7) states, "In order to effectively provide for
the collection of the permit fee by the contractor to the city, any person seeking to renew
his/her annual business tax receipt pursuant to the provisions of chapter 102, article V, in
addition to the requirements contained therein, shall provide to the finance director
evidence of payment of all outstanding permit fees, fines and other charges as a condition
to reissuance or renewal of the business license." Section 102-377(a) states, "Any person
who shall carry on or conduct any business for which a tax receipt is required by this article
without first obtaining such tax receipt shall be issued a violation for the offense which
shall have a civil fine of $1,000.00. The enhanced enforcement for this violation shall be
pursuant to subsection 102-377(d) herein .... (d) In addition to the above, a continued
violation of subsection 102-377(a) for a period of 30 days or more without first obtaining a
tax receipt, shall be punished by imprisonment not to exceed 60 days or by imposition of
a fine not to exceed $500.00 or both."
During an unannounced July 15, 2021, field review, the OIG Sanitation Tax Auditor
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observed a Medley Metal Recycling, LLC roll-off container at 1425 Lenox Avenue in Miami
Beach (see the picture below). An examination of the EnerGov system, the City licensing
and permitting system, determined that the contractor had not obtained the required permit
from the Sanitation Division.
The Code Compliance Department was promptly notified to issue any warranted NOVs.
The assigned Code Compliance Enforcement Officer subsequently issued NOV Case
Number SV2021-15019, which was paid in full on August 23, 2021, by the contractor.
An examination of the EnerGov system by the OIG Sanitation Tax Auditor determined that
Medley Metal Recycling, LLC had obtained annual BTRs related to recycling, but not roll-
offs, for each fiscal year included in the January 1, 2018, through August 31, 2021, audit
period.
The OIG Sanitation Tax Auditor received a June 6, 2022, email from the City Attorney's
Office confirming that contractors need to obtain annual BTRs to perform roll-off services
in Miami Beach. Consequently, Medley Metal Recycling, LLC needed to obtain related
BTRs for all the fiscal years comprising the audit period, but none were present in the
EnerGov system.
The City Attorney's Office had previously opined in a separate May 25, 2022 email to the
OIG, that if a roll-off contractor performed roll-off services without a BTR in a specific fiscal
year, a related NOV could be issued retroactively by the Code Compliance Department.
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Results/Recommendations:
The Code Compliance Department should issue NOVs to Medley Metal Recycling, LLC
for performing roll-off services in Miami Beach without a valid BTR. The contractor should
perform a self-assessment to determine whether it needs to similarly obtain related BTRs
from the City Finance Department for the 2021/22 and 2022/23 fiscal years to avoid
receiving future NOVs from the Code Compliance Department.
The Finance Department Licensing Section should invoice the contractor for the annual
roll-off related BTRs not timely obtained during the audit period. Once received, Medley
Metal Recycling, LLC should promptly comply within the designated time frame, or it may
be subject to additional penalties specified in the City Code.
The contractor should also file any corresponding Roll-Off Permit Fee returns with the City
Finance Department and remit the associated monies due for any months after August
31, 2021, the last month of the audit period.
Finance Department Response:
The Finance Department has billed the contractor for the annual BTRs not obtained:
2017/18, 2018/19, 2019/20, and 2020/21 fiscal years.
3. Medley Metal Recycling, LLC Records Provided To The OIG Indicate The Usage of
Roll-Off Containers At 13 Miami Beach Locations During The Audit Period Without
Obtaining The Required Permits Contrary To City Code With No Notices Of Violation
Being Issued.
City Code Section 90-193 states, "The city manager shall require, and will issue, a permit
for each garbage facility, recycling, hazardous and biohazardous waste, rolloff and
portable container, for all solid waste accounts in the city serviced by a private waste
contractor. The permit for solid waste collection and disposal shall be issued by the city
manager after the contractor has complied with all requirements for obtaining a business
tax receipt; any and all other requirements prescribed by this chapter; and has been
cleared by the city's finance department. Rolloffs, portable containers and containers for
recycling or hazardous and biohazardous wastes shall be included, except that all
recycling containers situated in a single location on a property shall require only one
permit."
Permits are issued to contractors by the Sanitation Division upon satisfying all the
designated requirements. If contractors perform recycling and/or roll-off services without
timely obtaining the required permits, then each address is subject to the issuance of a
NOV by the Code Compliance Department.
City Code Section 90-276 states, "Except as provided elsewhere in this chapter, no person
shall engage in the business of removing or disposing of construction and demolition
debris or large quantities of trash from any premises within the city limits without first
securing a permit for such activities from the city by paying the business tax receipt amount
as set forth in chapter 18, and without showing proof of insurance, as required in section
90-191 et seq." City Code Section 90-277 states, "No rolloff container, dumpster or
portable container shall be placed or located within the city without a permit from the city.
Failure to obtain a permit will result in a penalty of $100.00 per location."
Upon examining the documentation furnished by Medley Metal Recycling, LLC, the OIG
Sanitation Tax Auditor concluded that the contractor did not obtain the required permits
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from the Sanitation Division for work performed using roll-off containers at the following
13 Miami Beach addresses:
1)
2)
3)
4)
5)
6)
7)
100 Ocean Drive
1201 Pennsylvania Avenue
1425 Lenox Avenue
2530 Pine Tree Drive
42 Collins Avenue
4301 N. Adams Avenue
4400 Pine Tree Drive
8)
9)
10)
11)
12)
13)
4510 Post Avenue
5446 N Bay Road
6100 Pine Tree Drive
7711 Collins Avenue
780 73° Street
90 Alton Road
The City Attorney's Office confirmed during phone conversations and emails with the OIG
that related NOVs could be issued retroactively by the Code Compliance Department to
the contractor.
Results/Recommendations:
The Code Compliance Department should issue 13 NOVs for $100.00 each to Medley
Metal Recycling, LLC for unpermitted work using roll-off containers at the listed addresses.
Once received, the contractor should promptly remit the corresponding monies due to
avoid possible additional penalties. In addition, Medley Metal Recycling, LLC should
comply with the City Code and timely obtain required permits for future Miami Beach
addresses serviced or be subject to receiving additional NOVs from the Code Compliance
Department.
Update: Code Compliance Department issued 13 NOVs to Medley Metal Recycling, LLC
and all the 13 NOVs were paid by the contractor.
Findings Pertaining Solely to the City
4. Multiple Contact Numbers Were Issued To Medley Metal Recycling, LLC In The
City's EnerGov System.
The Tyler Technologies Inc. EnerGov system Citizen Self Service (CSS) portal is the web-
based interface that customers use to engage with related City needs. Customers, such
as Medley Metal Recycling, LLC, create password-protected contact numbers through the
CSS portal containing all its relevant information.
Individuals and businesses with email accounts can, and often do, create numerous
contact numbers, as there are insufficient internal controls to limit the number of contact
numbers in the EnerGov system. Although there may be other reasons why multiple
contact numbers were issued to the same individual or corporation, any obsolete or
outdated numbers are not inactivated. Some examples are as follows: several individuals
interacting separately with the City but working at the same property address; failure of a
customer to remember a selected password; and a customer acquiring a new email
account. Regardless of the reason, the number of contact numbers has grown
substantially over time, significantly complicating the search process and the
determination of outstanding balances.
When more than one contact number is created in the EnerGov system, it can create
confusion as roll-off permits, Code Compliance violations, outstanding balances, etc., may
be entered under any of the issued contact numbers. Consequently, the reviewer must be
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aware of all contact numbers and examine them in totality to accurately represent the
individual or company's status.
The OIG Sanitation Tax Auditor's review of the EnerGov system determined that Medley
Metal Recycling, LLC was issued three contact numbers during the period of February 10,
2017, through July 15, 2021. The table below shows no recycling or roll-off permits were
issued to any of these three contact numbers.
Contact # Permits Issued
Numbers
/0-000023964 0
I 0-000108539 0
/0-000108541 0
Total 0
Results/Recommendation( s ):
Only one active contact number related to recycling and/or roll-off services is
recommended to be assigned to each address to facilitate effective and accurate
searches. It is also recommended that the City's Information Technology Department
begin a database debug by deleting these multiple contact numbers and transferring any
corresponding transactions to a contact number under the control of the property or
business owner. The OIG understands that this is a time-consuming and labor-intensive
task but believes that this issue should be addressed. Lastly, Code Compliance
Department information related to violations should include a contact number linked to the
company's BTR and any pertinent permits.
Findings Pertaining to Both Medley Metal Recycling, LLC and the City
5. Medley Metal Recycling, LLC Did Not Remit Any Required Monthly Recycling
Reports During The Audit Period To The Sanitation Division Pursuant To City Code
Section 90-308 And The Code Compliance Department Was Not Notified To Issue
Any Corresponding Notices Of Violation.
City Code Section 90-308 states, "Each recycling contractor shall deliver monthly to the
city manager or his authorized designee, an accurate report regarding the nature and
disposition and volume of recyclable materials collected by it from each account in the
city. Upon request by the city manager or his authorized designee, each contractor shall
also furnish the city with verifiable information regarding the method and place of final
disposal or distribution of said materials." City Code Section 90-346 states, "(c) The
penalty for all other violations of this article shall be $250.00 for each violation."
Medley Metal Recycling, LLC performed and billed 186 verified recycling transactions in
the City during 39 months of the 44-month audit period, but the contractor did not submit
any corresponding monthly recycling reports to the Sanitation Department pursuant to
City Code Section 90-308.
Results/Recommendation( s):
The Code Compliance Department should retroactively issue 39 NOVs to Medley Metal
Recycling, LLC in the amount of $250.00 each. As a result, the City is due $9,750.00 (39
months x $250.00 per month) from the contractor pursuant to City Code. The contractor
should also remit all required recycling reports due for any months after August 31, 2021,
the end of the audit period.
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Update: Code Compliance Department issued 39 NOVs to Medley Metal Recycling, LLC
for not submitting the monthly recycling reports to the Sanitation Department.
Finding - Outside The Audit Period
6. Medley Metal Recycling, LLC Did Not Timely Remit Its Monthly Roll-Off Permit
Fees, And The Finance Department Did Not Charge The Contractor $750.00 Due In
Late Filing Fees Pursuant To City Resolution No. 2021-4456, Effective December
18, 2021.
City Ordinance No. 2021-4456, effective December 18, 2021, amended City Code
Section 90-278(4) to state, "Each contractor shall deliver to the city's finance department
a true and correct monthly report of gross receipts generated during the previous month
(from accounts within the city) on or before the last day of each month, regardless of
whether any work was performed within the city during that period. This monthly report
shall include the customer names, service addresses, account numbers, and the actual
amount collected from each customer. Payments of any fees required in this section shall
be made monthly to the finance department, on or before the last day of each month, for
gross receipts of the previous month. Contractors having annual gross receipts reported
to the city over $200,000.00 shall, on or before 60 days following the close of their fiscal
year, deliver to the finance department a statement of annual gross receipts (generated
from accounts within the city) certified by an independent certified public accountant,
reflecting gross receipts within the city for the preceding fiscal year. Failure to timely
submit the monthly report on or before the last day of each month will result in a penalty
as set forth in Appendix A." Appendix A sets the penalty at $50 per month for each month
that the return is delinquent.
As a result, the OIG Sanitation Tax Auditor calculated that the City is due $750.00 in late
charges from the contractor as shown in the following table as of July 2022.
Jan.2022 $250.00
Feb.2022 $200.00
Mar. 2022 $150.00
Apr. 2022 $100.00
May 2022 $50.00
Total $750.00
The late filing fees due in the above table were calculated as of July 2022.
Results/Recommendation( s ):
The City's Finance Department should create an invoice for $750.00, charging Medley
Metal Recycling, LLC late filing fees pursuant to City Resolution No. 2021-4456. The
contractor should timely file and remit its future roll-off permit fee payments to the City to
avoid having late filing fees and/or late charges levied. If not, the contractor should be
invoiced accordingly by the Finance Department pursuant to City Code. It would be
beneficial if the late filing fee and/or late charge calculations could be programmed into
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the City's enterprise resource planning system, so that invoices could be automatically
generated.
Finance Department Response:
The Finance - Revenue Division issued Invoice# 38321 totaling $750.00 for late filing
fees as the audit showed that the contractor did not file monthly reports due for the
months of January 2022- May 2022, and thus were not in compliance with City
Resolution No. 2021-4456. Because of the limited number of transactions related to this
type of activity, the pursuit of having late fees generated automatically in the Munis
system would not be cost effective at this point.
ctfully submitted,
0/2,/a0a3
7 Date
cc: Alina T. Hudak, City Manager
Eric Carpenter, Deputy City Manager
Joe Gomez, Public Works Department Director
Jason Greene, Chief Financial Officer
Hernan D. Cardena, Esq., Code Compliance Department Director
Frank Quintana, Chief Information Officer
Bradford Kaine, Sanitation Division Director
Jesse Schneider, Manager, Medley Metal Recycling, LLC
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6 Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.111I
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
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