OIG No. 25-07 Double Waste Service, Inc. Roll-Off Fee Revenues7OR G
Joseph M.Centorino,Inspector General
TO:Honorable Mayor and Members of the City Commission
FROM:Joseph Centorino,Inspector General
DATE:April 16,2025
AUDIT:Double Waste Service,Inc.Roll-Off Fee Revenues Audit
PERIOD:August 1,2018 through May 31,2021
OIG No.:25-07
This report is based on a Sanitation Tax Compliance audit of the permit fees that Double Waste
Service,Inc.charged,collected,and remitted to the City Finance Department during the audit
period of August 1,2018,through May 31,2021.The City of Miami Beach Office of the
Inspector General (OIG)Sanitation Tax Auditor assessed the contractor's compliance with
selected provisions in the City Code,including obtaining annual Business Tax Receipts and
filing required reports.Additionally,the audit reviewed the performance of City staff
responsible for monitoring Double Waste Service,Inc.and processing the payments received
from the contractor.
INTRODUCTION
City Code Requirements for Roll-Off Contractors
Definitions of Roll-Off and Bulky Waste &Permit Fees
As defined in City Code Section 90-2,a Roll-Off is a container with a minimum capacity of ten
cubic yards designed to be transported by a motorized vehicle.Contractors primarily use
these containers to collect and dispose of construction and demolition debris and large
quantities of trash or bulky waste.Bulky waste includes large household items such as
appliances,furniture,accumulations from major tree trimmings,large crates,and similar
materials.In contrast,commercial refuse refers to all solid waste generated by commercial
establishments.Roll-Offs are not intended for garbage or commercial refuse disposal.
Contractors operating in Miami Beach must comply with the requirements outlined in City
Code Section 90-221.These requirements include the monthly remittance of permit fees
based on the City Commission-approved rate:18%of total gross receipts from the start of
the audit period through October 5,2019,and 20%thereafter.The fee is calculated by
applying the applicable rate to the contractor's total gross receipts from operations within the
City.
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Definition of Gross Receipts
City Code Section 90-221 defines gross receipts as all contractors'fees collected,whether
wholly or partially,for solid waste collection and disposal services provided within the City.
However,this excludes taxes and gross receipts from the servicing of Roll-Off and portable
containers.
Account Reporting Requirements
City Code Section 90-278(3)requires that each Roll-Off contractor provide the City Manager
with a current list of account names and addresses when submitting an initial application.For
permit renewal applications,contractors must also include details such as the frequency of
service,permit number,the capacity of each Roll-Off container or dumpster,and the address
serviced by each Roll-Off container or dumpster.This list of accounts is typically provided
concurrently with the monthly report to the Finance Department and serves as an essential
document for verifying the accuracy of the contractor's filings during audits.
Monthly Reporting and Fee Payment Requirements
City Code Section 90-278(4)requires contractors to submit monthly reports to the City's
Finance Department,along with payment of any owed permit fees.These reports are due by
the end of the month following the month in which gross receipts were generated.For
example,the report and fees for February 2024 must be submitted by March 31,2024.Under
City Code Section 90-225(2),unpaid fees that are not timely submitted are subject to
penalties of 10%per month,up to a maximum of 50%.Additionally,the highest legal interest
rate permitted by law will apply to all unpaid fee amounts (excluding penalties)from the date
the fee first became delinquent until it is fully paid.
Annual Reporting for Gross Receipts Exceeding $200,000
If a contractor's annual gross receipts exceed $200,000.00,City Code Section 90-278(4)
requires the submission of an independently prepared statement of annual gross receipts for
the fiscal year during which those receipts were generated.This statement must be prepared
by a Certified Public Accountant and submitted to the City Finance Department within 60 days
following the close of the contractor's fiscal year.
Permit Requirements
Finally,City Code Section 90-193 requires all Roll-Off contractors to obtain permits for all solid
waste accounts they service within the City.
PURPOSE
This audit assessed whether the contractor's filings were complete and accurate and whether
the corresponding payments were calculated correctly according to the permit fee rates
approved by the City Commission.Additionally,the audit aimed to ensure that the City
Finance Department received and accurately recorded the filings and payments in a timely
manner and to assess the contractor's compliance with other relevant sections of the City
Code.
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OBJECTIVES
1.Assess whether the contractor maintained sufficient records to verify the accuracy of
permit fee billings and properly calculated the corresponding Miami Beach gross
receipts based on the monthly fees submitted to the City for the audit period August 1,
2018,through May 31,2021.
2.Evaluate whether the contractor submitted its monthly gross receipts reports on time
and remitted full payment of the associated fees to the City.If not,determine the
penalties and interest charges applied under City Code Section 90-278(6)(a-d).
3.Verify whether the contractor obtained the required annual Business Tax Receipts
during the audit period.
4.Determine whether the contractor complied with the reporting requirements specified
in City Code Section 90-278.
5.Determine whether monthly permit fee payments remitted by the contractor were
accurately recorded in the City's financial system.
METHODOLOGY
To conduct this audit,the OIG employed a multi-faceted approach that included internet
research,a review of the sales reports provided by the contractor,and an analysis of the
City's databases for building permits typically associated with Roll-Off services.Although
initial delays were encountered,the necessary documentation was eventually obtained after
multiple follow-up requests and the issuance of two subpoenas.The submitted
documentation verified that Roll-Off services were conducted at 16 locations within Miami
Beach during the audit period.
RESULTS/CONCLUSION
The audit revealed that the contractor miscalculated the Roll-Off permit fees,remitting 18%
instead of the required 20%for jobs performed after October 5,2019.Additionally,three
invoices from a Miami Beach customer were identified where permit fees were not remitted
to the City.These discrepancies resulted in unpaid Roll-Off permit fees totaling $742.70,
which includes penalties and interest.
The table below provides a detailed breakdown of the gross receipts,submitted fees,under-
reported fees,penalties,and interest for the audit period:
Period Gross Roll-Off Fees Under-Reported Penalty Interest Amount
Receipts submitted Fees Due
Auaust 2018-December 2018 $8,120 1,461.60
January 2019-October 5,2019 $17,823 3,208.14 253.80 126.90 48.22 428.92
October 6,2019-December 201€$1,545 278.10 49.70 24.85 5.53 80.08
January 2020-December 2020 $3,690 664.20 73.80 18.10 3.07 94.97
January 2021-May 2021 $1,870 269.10 104.90 30.75 3.08 138.73
482.20 200.60 59.90 742.70
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RECOMMENDATION
The contractor's noncompliance with the Commission-approved rate of 20%of gross receipts
underscores the importance of accurate calculations and timely remittance of fees in
accordance with the City Code.It is recommended that the contractor take immediate
corrective action to ensure the proper application of the current prescribed rate.
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cc:Eric Carpenter,City Manager
Bradford Kaine,Public Works Department Director
Jason Greene,Chief Financial Officer
Fransy Rivero,Manager,Double Waste Service Inc.
OFFICE OF THE INSPECTOR GENERAL,City of Miami Beach1130WashingtonAvenue,6"Floor,Miami Beach,FL 33139Tel:305.673.7020 •Hotline:786.897.1111
Email:CityofMiamiBeachOIG@miamibeachfl.gov
Website:www.mbinspectorgeneral.com
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