R7E-Issue Towing Permits To Beach Towing And Tremont TowingCOMMISSION ITEM SUMMARY
Condensed Title:
A Resolution approving a three (3) year extension of the towing permits with Beach Towing
Services, Inc., and Tremont Towing Services, Inc., respectively, commencing on March 1, 2012,
and terminating on February 28, 2015; approving an amendment to the maximum allowable
towing rates; approving the second amendment to the Administrative Rules and Regulations
for Police and Parking Department Towing Permits; and as a further condition of approval of
this Resolution and issuance of a Permit, that Beach Towing Services, Inc., as the Petitioner of
those certain lawsuits filed against the City, dismiss such actions with prejudice.
Key Intended Outcome Supported:
Increase community satisfaction with City Services.
Supporting Data {Surveys, Environmental Scan, etc.): 74% of residents and 72% of
businesses rate the availability of parking across the City as too little or much too little. Availability
of parking was one of the changes residents identified to make Miami Beach a better to live, work
or play.
Issue:
Shall the Mayor and City Commission approve: ( 1) a three year extension of the towing permit with
Beach Towing and Tremont Towing, respectively; (2) an amendment to the maximum allowable
towing rates; and (3) Amendment No.2 to the Administrative Rules and Regulations for Police and
Parking Department Towing Permits?
Item Summary/Recommendation:
Should the Mayor and Commission feel satisfied with the towing Permittees proposed rate
increase and acceptance of certain of amendments to the rules and regulations for the towing
permits, then approval of the attached resolution is in order.
Provide direction to the Administration.
Advisory Board Recommendation:
On January 19, 2012, the Finance and Citywide Projects Committee (FCWPC), approved the
following: (1) three (3) year extension of the towing permits, commencing March 1, 2012 through
February 28, 2015; (2) an amendment to the maximum allowable towing rates; and (3) Amendment
to the Administrative Rules and Regulations for the Police and Parking Department Towing
Permits.
Financial Information:
Source of Amount Account
Funds: 1
2
I I
3
4
OBPI Total
Financial Impact Summary:
Ci Clerk's Office Le islative Trackin
Saul Frances, extension 6483
Si n-Offs:
Department Director
SF JGG
T:\AGENDA\2012\Feb082012\TowPermitAdmRulesRegsAmendNo2Feb082012.sum.doc
C9 MIAMI BEACH 441
AGENDA ITEM R l E
DATE ;).-8'-l 2-
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM, City Manager Jorge M. Gonzalez ~r ~~
DATE: February 8, 2012
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ISSUANCE
OF TOWING PERMITS TO BEACH TOWING SERVICES, INC., AND TREMONT
TOWING SERVICES, INC.; SAID PERMIT TERMS COMMENCING ON MARCH
1, 2012, AND EXPIRING ON FEBRUARY 28, 2015; AND FURTHER, IN
CONJUNCTION THEREWITH, APPROVING AMENDMENT NO. 2 TO THE
ADMINISTRATIVE RULES AND REGULATIONS FOR POLICE AND PARKING
TOWING PERMITS; SAID AMENDMENT PROVIDING, AMONG OTHER
THINGS, FOR AN INCREASE TO THE PERMIT FEES AND CERTAIN MAXIMUM
ALLOWABLE TOWING RATES; PROVIDING FOR CERTAIN ENHANCEMENTS,
PUBLIC BENEFITS, AND OTHER ADDITIONAL CONDITIONS AND
REQUIREMENTS, AS REQUESTED BY THE CITY AND SET FORTH IN THIS
RESOLUTION, AND ALL OF WHICH SHALL BE PROVIDED BY PERMITTEES
IN THE MANNER PRESCRIBED BY, AND WITHIN THE TIMEFRAMES
OUTLINED IN AMENDMENT NO. 2, AS A CONDITION OF THE CITY'S
APPROVAL OF THIS RESOLUTION AND AS CONSIDERATION FOR THE
CITY'S ISSUANCE OF THE PERMITS; AND ALSO, PROVIDING, AS A
FURTHER CONDITION OF APPROVAL OF THIS RESOLUTION AND
CONSIDERATION FOR ISSUANCE OF THE PERMITS, THAT BEACH TOWING
SERVICES, INC., ON BEHALF OF ITSELF AND INCLUDING ALL RELATED
PERSONS AND ENTITIES, AS THE PLAINTIFF AND PETITIONER IN THOSE
CERTAIN LAWSUITS FILED AGAINST THE CITY (AS SUCH LAWSUITS ARE
SET FORTH IN THIS RESOLUTION}, DISMISS WITH PREJUDICE SUCH
ACTIONS THAT REMAIN PENDING WITH PREJUDICE, AND TO EXECUTE A
COVENANT NOT TO SUE, IN A FORM ACCEPT ABLE TO THE CITY
ATTORNEY, IN ANY ADMINISTRATIVE OR JUDICIAL ACTIONS, FOR ITSELF
AND ALL PERSONS OR ENTITIES RELATED TO IT, AND NOT TO SOLICIT OR
ENCOURAGE THE FILING BY ANY OTHER PERSON OR ENTITY, OF
ADMINISTRATIVE OR JUDICIAL ACTIONS, CLAIMS OR ISSUES THAT WERE
OR COULD HAVE BEEN RAISED IN THESE CASES.
ADMINISTRATION RECOMMENDATION
Provide direction to the Administration.
442
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 2 of9
ANALYSIS
The Finance and Citywide Projects Committee discussed the police permit issues at their December
27, 2011 and January 19, 2012 meetings. The FCWPC directed the Administration to bring back
the item to City Commission Meeting on February 8, 2012.
The Administration conducted extensive analyses as directed by the FCWPC, and met with
representatives of Tremont and Beach Towing (the Permittees) on January 6, 2012, January 10,
2012, January 13, 2012. Both Permittees conducted their own analysis as well and provided it to the
FCWPC (see Exhibit 1 -Permittees Analysis of Towing Rates). The FCWPC discussed the
following items at length during its meetings on December27, 2011, and January 19, 2012; received
input from the Permittees and residents. On January 19, 2012, the FCWPC approved to recommend
the issuance of new towing permits to Permittees, subject to the following amendments to the
Administrative Rules and Regulations for Police and Parking Towing Permits.
I. PUBLIC BENEFITS AND ADDITIONAL ENHANCEMENTS
A. Resident Discounts for Public Tows
• Twenty percent (20%) discount to Miami Beach residents for public tows only.
• Discount may be applied two (2) times per year, per resident, per Permittee.
This equates to four ( 4) benefits annually. The benefit resets each year; therefore,
the resident receives the benefit annually for as long as the Permit is in effect.
Permittee will track issuance of discounts to residents, annually.
• Residents must provide proof of residency within the City limits, and their driver's
license information must match with the vehicle registration information.
• 20% discount would also be applicable to all charges including the City's
Fee.
B. Permittees agreed to develop a formal "internal review" process to address
citizen complaints. This has not been developed as of the writing of this
memorandum. Should the Commission adopt the FCWPC recommendation,
the Administration will continue to pursue this issue with the Permittees.
II. MAXIMUM ALLOWABLE TOWING RATES
At the December 6, 2011, FCWPC Meeting, the Permittees jointly provided an analysis of the
Maximum Allowable Towing Rates. The analysis alleged that the current towing rates are
inadequate, since they have not been increased since 2004. The analysis suggested that a CPI
(Consumer Price Index) of three percent (3%) should be applied to certain towing rates. The CPI
Index analysis is addressed in Section Ill of this report.
At the direction of the FCWPC on December 27th, 2011 the Administration updated its own research
of towing rates in comparable jurisdictions, and also received data from the Permittees regarding
towing rates from other jurisdictions. The table below has been updated as per discussions with the
Permittees; however, this analysis reflects a single tow under a specific set of assumptions. The
Permittees presented to the FCWPC a presentation based on the City's data to highlight their
position.
Maximum Allowable Towing Rates in Florida-The Average Tow Fee (ATF) is the mode value
(value that occurs most often) for Miami Beach and it includes fees assessed to the most common
type oftow (Class A Tow). Please note that the Average Tow Fee (ATF) includes a Class "A" Tow
443
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 3 of9
Fee; Administrative Fee; Mileage one (1) mile; Labor; and After Hours Fee. Also, please note that
the Permittees presented certain fees that are applicable in the jurisdictions they researched;
however, these certain fees are not applicable to the mode value tow described in the examples
below.
Total
Cities in Florida ATF* Class A
Bal Harbor $223.00 $115.00
Fort Lauderdale (4) $159.80 $100.00
Jacksonville $204.03 $106.02
Key West $226.75 $135.00
Miami-Dade $161.25 $104.00 (8)
MPA $176.00 $118.00
Orlando $144.00 $125.00
Surfside (5) $205.00 $115.00
West Palm Beach
$228.00 $130.00
Palm Beach
County $237.00 $156.00
Hillsborough
County $264.00 $115.00
Broward County $192.50 $105.00
St. Lucie County $198.00 $100.00
Indian River
County $208.50 $119.00
Monroe County $271.75 $135.00
CMB (CURRENT) $205.00 $115.00
Average $206.54 $118.31
Permittees'
proposed rates
applied to an
average tow
2012 $241.00 $140.00
2013 $259.00 $150.00
2014 $269.00 $155.00
(1) City Fee is included in the Class A fee
(2) Adm Fee is $63. 16 applied after 72 hours
(3) Adm Fee is $50.00 applied after 48 hours
(4) Permit Fee is annual/per zone
(5) CMB Towing Permit Piggyback
Adm
Fee
$40.00
$30.00
$0.00
$25.00
$30.00
$30.00
$0.00
$30.00
$60.00
$0.00
$75.00
$30.00
$35.00
$34.00
$25.00
$30.00
$29.63
$35.00
$41.00
$44.00
(6) Adm Fee applied per notification after 24 hrs
Mile~e
$3.00
$4.80
(2) $3.04
(7) $3.00
$3.00
$5.00
(3) $4.00
$5.00
$5.00
(9) $7.00
$4.00
(6) $0.00
$3.00
(6) $3.00
(7) $3.00
$5.00
$3.80
$6.00
$6.00
$7.00
(7) Adm Fee applied per notification after 24 hrs and up to $135
(8) Includes $3.00 Fuel Surcharge
(9) $50 Adm Lien Fee after 24 hours
Labor
per 15 After
min Hours City Fee
$25.00 $0.00 $40.00
$25.00 $0.00 $0.00 (1)
$22.72 $57.25 $15.00
$33.75 $30.00 $0.00
$24.25 $0.00 $0.00
$23.00 $0.00 $26.00 (1)
$15.00 $0.00 $0.00
$25.00 $30.00 $40.00 (1)
$33.00 $0.00 $0.00
$39.00 $35.00 $0.00
$20.00 $50.00 $0.00
$27.50 $0.00 $30.00
$25.00 $35.00 $0.00
$12.50 $40.00 $0.00
$33.75 $75.00 $0.00
$25.00 $30.00 $25.00 (1)
$25.59 $23.89 $11.00
$30.00 $30.00 $30.00
$32.00 $30.00 $35.00
$33.00 $30.00 $40.00
It should be noted that at the January 19, 2012, FCWPC meeting, the Permittees presented the
following alternate proposal for increasing the maximum allowable towing rates. This proposal
reduces the initial 14 categories suggested to be increased down to 6 categories with rate
increases.
444
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 4 of9
1. Storage Outside-Exterior:
Any vehicle less than 20feet in length and 8 feet in width:
$25.00 $30.00, effective as of January 1, 2012
$36.00, effective as of January 1, 2014
2. Tow Rate Class "A" Tow Truck and Class "A" Car Carrier, including:
$115.00 $140~00, effective as of January 1. 2012
$150.00, effective as of January 1, 2013
$155.00, effective as of January 1, 2014
3. Special and additional charges Mileage charges (per mile):
Maximum per tow:
$§.:00 $6.00, effective as of January 1, 2012
$7.00, effective as of January 1, 2014
$35.00 $42.00, effective as of January 1, 2012
$49.00, effective as of January 1, 2014
4. Administrative Fee (Maximum per tow):
$30.00 $35.00, effective as of January 1, 2012
$41.00, effective as of January 1, 2013
$44.00. effective as of January 1, 2014
5. Dollies or Flatbed Services (per job):
$35.00 $40.00, effective as of January 1, 2012
$47.00, effective as of January 1, 2013
$50.00, effective as of January 1, 2014
6. 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.
AFTER HOURS FEE
$25.00 $30.00, effective as of January 1, 2012
$32.00, effective as of January 1, 2013
$33.00. effective as of January 1, 2014
The After Hours Fee is a fee assessed to tows that are retrieved between the hours of 8:00P.M.
and 8:00A.M. The After Hours Fees was approved by the Transportation and Parking Committee
on January 5, 2004; it is subsequently referenced in the January 14, 2004, Commission
Memorandum; and Handout Reference Material LTC No. 006-2004, entitled, Miami-Dade County
Maximum Allowable Towing Rates issued January 13, 2004; however, the After Hours Fee
language was inadvertently excluded from the towing permits. The After Hours Fee is now included
in the Administrative Rules and Regulations of the towing permits.
Based on the example above, the Permittees have proposed a rate increase that will raise the
average tow fee to $269.00 over a three (3) year period. This represents a 31% increase over the
current Average Tow Fee.
The Class "A" Tow Fee (the most common type of tow) is proposed by the Permittees to increase
from $115, over the three year period, to $155; or an increase of 35% over the current rate. The
445
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 5 of9
Permittees have also proposed to increase the City's fee, which they collect for the municipality,
from the current $25 per tow, to $30 per tow in year one; $35 in year two; and up to a maximum of
$40 in year three.
It is important to note that for public tows, in addition to the tow fees incurred, a parking citation also
accompanies the tow fee. Parking citation fines for towable infractions ranges between $23.00 and
$250.00. The only notable exception is for vehicles that have an impound order for outstanding
citations, and even under those circumstances all outstanding citations must be paid in order to
retrieve the vehicle.
Ill. CONSUMER PRICE INDEX (CPI)
The Administration conducted its own indexing analysis utilizing CPI for the Miami-Fort Lauderdale area.
Upon comparing both the Permittees' and the Administration's indexing analyses, the variations ranged
between $0.11 and $2.04 among the fee categories. Please refer to the tables below.
PERMITTEES' CPI Adjusted Rates from Applicable Base (2005) to FY2012 through FY2014
Outside Outside Class
Outside Storage Fee Storage Fee B&C
Storage Fee Any Vehicle Any Vehicle Class "A" Towing
Motor & <20ft L & <20ft L or Tow Class "B" Class "C" Class "D" Fee car Annual
Scooters <8ftW >SftW Fee Tow Fee Tow Fee Tow Fee Carrier CPI%
YEAR 22.A.(2)(a) 22.A.(2)(b) 22.A.(2)(c) 22.8 22.C 22.0 22.E 22.F 2.80%
2005 $10.00 $25.00 $30.00 $115.00 $145.00 $175.00 $200.00 $138.23 4.70%
2006 $10.47 $26.18 $31.41 $120.41 $151.82 $183.23 $209.40 $144.73 4.90%
2007 $10.98 $27.46 $32.95 $126.30 $159.25 $192.20 $219.66 $151.82 4.20%
2008 $11.44 $28.61 $34.33 $131.61 $165.94 $200.28 $228.89 $158.19 4.60%
2009 $11.97 $29.93 $35.91 $137.66 $173.58 $209.49 $239.42 $165.47 -0.30%
2010 $11.93 $29.84 $35.80 $137.25 $173.06 $208.86 $238.70 $164.98 0.80%
2011 $12.03 $30.08 $36.09 $138.35 $174.44 $210.53 $240.61 $166.30 3.70%
2012 $12.48 $31.19 $37.43 $143.47 $180.89 $218.32 $249.51 $172.45 3.00%*
2013 $12.85 $32.12 $38.55 $147.77 $186.32 $224.87 $256.99 $177.62 3.00%*
2014 $13.24 $33.09 $39.71 $152.20 $191.91 $231.62 $264.70 $182.95
446
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 6of9
CITY'S CPI Adjusted Rates from Applicable Base (2005) to FV2012 through FV2014
Outside Outside Class
Outside Storage Fee Storage Fee B&C
Storage Fee Any Vehicle Any Vehicle Class "A" Class "B" Class "C" Class "D" Towing
Motor & <20ft L & <20ft L or Tow Tow Tow Tow Fee Car
Scooters <SftW >SftW Fee Fee Fee Fee Carrier
YEAR 22.A.(2)(a) 22.A.(2)(b) 22.A.(2)(c) 22.8 22.C 22.0 22.E 22.F
2005 $10.00 $25.00 $30.00 $115.00 $145.00 $175.00 $200.00 $138.23
2006 $10.47 $26.17 $31.41 $120.39 $151.80 $183.20 $209.38 $144.71
2007 $10.99 $27.46 $32.96 $126.34 $159.30 $192.25 $219.72 $151.86
2008 $11.44 $28.61 $34.33 $131.60 $165.93 $200.26 $228.87 $158.18
2009 $11.97 $29.92 $35.90 $137.63 $173.53 $209.43 $239.35 $165.43
2010 $11.93 $29.82 $35.78 $137.17 $172.96 $208.74 $238.56 $164.88
2011 $12.02 $30.05 $36.06 $138.21 $174.27 $210.32 $240.37 $166.13
2012 $12.38 $30.95 $37.14 $142.36 $179.50 $216.63 $247.58 $171.11
2013 $12.75 $31.88 $38.25 $146.63 $184.88 $223.13 $255.01 $176.25
2014 $13.13 $32.83 $39.40 $151.03 $190.43 $229.83 $262.66 $181.54
Diff $0.11 $0.26 $0.31 $1.17 $1.48 $1.79 $2.04 $1.41
Annual
CPI%
2.77%
4.69%
4.94%
4.16%
4.58%
-0.33%
0.76%
3.00%*
3.00%*
3.00%*
The FCWPC discussed the issue of indexing towing rates and directed the Administration to insert
typical language used in other agreements which would; (1) trigger a review of all rates and fees;
and (2) potentially apply a CPI index at specified thresholds. The following language was drafted
and included in the relative section of the towing permit.
INDEXING PROVISION
The City Manager or his authorized designee may initiate an administrative
review of the Maximum Allowable Rates whenever the cumulative change in the
Consumer Price Index (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 report
which report shall be subject to final approval by the Mayor and City
Commission. This process will be conducted and discussed as part of the
annual budget process.
447
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 7of9
IV. AUDITING AND INSPECTION PROVISIONS
Pursuant to the direction received from the FCWPC to enhance the audit provisions in the current
Administrative Rules and Regulations (which govern public tows), to look at other existing audit
provisions, in comparable business models, such as the language in the agreements between the
City and Smith & Wollensky and the Boucher Bros, the following language is included in the
Administrative Rules and Regulations (to expand upon the existing audit provisions). The agreed
upon audit procedures will be developed jointly between the Permittees and the Administration
within 90 days of the commencement the permit (new) term or June 1, 2012. Failure to comply by
this established deadline shall trigger a referral of the unresolved issues to the FCWPC and
subsequently to the full City Commission whose decision on the matter( s) shall be final and binding
upon all parties.
INSPECTIONS AND AUDITS
Effective March 1, 2012, and notwithstanding the parties' acknowledgement of the City's
existing rights to audit and inspect Permittee pursuant to this Section 27, the City Manager
or his authorized designees (including, without limitation, the City's Chief Financial Officer
and Internal Auditor) shall meet with Permittee to develop mutually agreed upon procedures,
systems, and controls for the purpose of the City conducting financial audits concerning
Permittee's operations pursuant to the Permit.
In the event that the City and Permittee are not able to develop mutually agreed upon
procedures, systems, and controls for City audits of Permittee's operations within ninety (90)
days from the commencement of the Permit Term (or by June 1, 2012), then the City
Manager shall refer this matter to the Finance and Citywide Projects Committee for
discussion including, without limitation, discussion of disputed issues. The Finance
Committee shall review the procedures that have been developed, including any disputed
items and issues, and may make a recommendation as to same and, additionally, may
recommend that the matter be referred for review by the full City Commission. The City
Commission's decision on the matter shall be final and binding upon all parties.
V. DISMISSAL OF PENDING LAWSUITS/LEGAL ISSUES
The City has been a party to the following litigation arising out of disputes between the two towing
companies:
1. Beach Towing Services, Inc., v. The City Of Miami Beach, Case no. 11-37364 CA 31,
Eleventh Judicial Circuit, General Jurisdiction Division (complaint challenging the adoption of
Ordinance 2008-3617 on robotic and mechanical parking);
2. Beach Towing Services Of Miami, Inc., v. City Of Miami Beach, Case No. 11-465 AP,
Eleventh Judicial Circuit, Appellate Division (petition for writ of certiorari challenging the Board of
Adjustment's opinion upholding the decisions of the Planning Director with respect to a towing
garage in the 1-1 district); and
3. Beach Towing Services Of Miami, Inc., v. City Of Miami Beach, Case No. 11-466 AP,
Eleventh Judicial Circuit, Appellate Division (petition for writ of certiorari challenging the Board of
Adjustment's opinion upholding the decisions of the Planning Director with respect to a towing
garage in the 1-1 district).
448
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 8of9
The Plaintiff in case number 1 has filed a notice of voluntary dismissal without prejudice. Case
numbers 2 and 3 have been partially briefed, and await replies to be filed by the Petitioners. It is
proposed that, as a condition of approval of Permit renewal, that the plaintiffs agree to dismiss, with
prejudice, their lawsuits and petitions, within five (5) days of adoption of the Resolution, each party
to bear their own costs and attorneys' fees, and with the City drafting the Orders of Dismissal.
Further, since the Plaintiff has already dismissed case number 1, that it, and all related persons and
entities, agree not to pursue any action against Ordinance No. 2008-3617, and not to encourage any
other person or entity to file any administrative or judicial challenge to such Ordinance.
As a further condition of the approval of the attached Resolution, the plaintiffs and petitioners have
agreed to, and shall, within five (5) days of adoption of the attached Resolution, dismiss with
prejudice their lawsuits and petitions, each party to bear their own costs and attorneys' fees, and
with the City drafting the Orders of Dismissal.
VI. CITY'S IN-HOUSE TOWING INITIATIVE
The FCWPC referred the issue of the City's In-House Towing initiative to the full City Commission as
a discussion item. Please refer to the discussion item in this agenda.
VII. ACCOUNTABILITY AND ENHANCEMENTS
The following accountability and operational enhancements were agreed upon by the Permittees
and have been incorporated in the Administrative Rules and Regulations of the Towing Permits.
• Uniforms -Permittee shall be required to provide all employees with uniforms, which
shall be approved by the City Manager or his designee.
• Employee Drug Screening -Permittee shall perform drug test screening on all
employees, and provide pass/fail results to the City Manager or his designee, upon
request.
• Driver's License Screening -Permittee shall perform driver's license screening on all
employees with driving responsibilities.
• Permittee shall reduce the storage requirement within the City limits from seven (7)
days to one (1) day.
• By the end of the first Permit year (i.e. April 30, 2013), Permittees shall have
procured, installed, and implemented GPS tracking devices on all vehicles. Any such
GPS tracking devices must be accessible to the City for monitoring purposes.
• At anytime following the end of the first Permit year, and in addition to the above
requirement, the City Commission may, in its sole option and discretion review and
following such review, require Permittee implement the following additional
technological upgrades; one (1) each during the second and third Permit years,
respectively: a) towing software (which, at a minimum, includes dispatch tracking
software that is accessible to the City for monitoring only purposes); and b) in-vehicle
cameras (to monitor and record tows in real time).
The following initiatives were agreed upon, in concept, by the Permittees; however, they require
further discussions, and in one case, an amendment to the City Code may be required.
449
February 8, 2012 Commission Memorandum
Towing Permit Extension/Amendment No. 2
Page 9 of9
• Temporary [Towed] Vehicle Storage -The Administration recommends an
amendment to the City Code allowing for temporary storage of towed vehicles during
high impact events in the City.
• Defamation Provision (video/audio depiction of public tows) -This provision is
intended to develop protections for the City from potential defamation that may arise
from towing service providers intending to either pursue on their own or engage a
third party to film depictions of public property tows.
• Penalties/Fine Schedule -The existing towing permits allow the City Manager to
suspend the permit for a period of time as a penalty. The Administration recommends
a fine schedule, as a financial disincentive, for violation( s) of the towing permit. Fines
for typical violations may include, but are not limited to: employees out of uniform;
illegal storage of vehicles; overcharging/assessment of drop fees; violations of the
conditional use requirements, etc.
The following initiatives were not agreed to by the Permittees:
• Extend the number of hours of storage at no charge to the customer from eight (8)
hours to 12 hours.
• Operational Conditions that mitigate the impact of the towing operation on the
surrounding neighborhood. These conditions include on-site cameras, restricted
access to the facility through the neighborhood, landscaping, etc.
CONCLUSION
The City Commission has discussed the issue of the towing permits on several occasions during the
last year. Many issues of concern were identified and ultimately, the Commission extended the
permits on a month to month basis in order for these issues to be analyzed and discussed. The
following areas of concern have been touched upon during the last several Commission and
Committee meetings:
Rate increases;
Audits of both public and private operations;
Accountability initiatives by utilizing latest technology;
Establishing criteria for determining when a tow should be directed;
Impacts to the Sunset Harbour neighborhood;
Booting as an alternative to towing to diminish the impact to the surrounding neighborhood;
Alternative venues for the storage of towed vehicles; and,
Conditional Use type limitations to mitigate impact of towing operations.
While some of these issues have been vetted and addressed or have been formally referred to
Committee for further analysis, others have not had sufficient discussion to formulate a proper
recommendation. The Commission should provide policy guidance on this matter. Should the
City Commission feel satisfied with the towing Permittees proposed rate increase and
acceptance of certain of amendments to the rules and regulations for the towing permits, then
approval of the attached resolution is in order.
Attachi!
JMG/J SF
T:\AGEN 012\02-08-12\TowPermitAdmRulesRegsAmendmentNo2Feb082012.cme.docx
450
RESOLUTION NO.-------
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE ISSUANCE
OF TOWING PERMITS TO BEACH TOWING SERVICES, INC., AND
TREMONT TOWING SERVICES, INC.; SAID PERMIT TERMS COMMENCING
ON MARCH 1, 2012, AND EXPIRING ON FEBRUARY 28, 2015; AND
FURTHER, IN CONJUNCTION THEREWITH, APPROVING AMENDMENT NO.
2 TO THE ADMINISTRATIVE RULES AND REGULATIONS FOR POLICE AND
PARKING TOWING PERMITS; SAID AMENDMENT PROVIDING, AMONG
OTHER THINGS, FOR AN INCREASE TO THE PERMIT FEES AND CERTAIN
MAXIMUM ALLOWABLE TOWING RATES; PROVIDING FOR CERTAIN
ENHANCEMENTS, PUBLIC BENEFITS, AND OTHER ADDITIONAL
CONDITIONS AND REQUIREMENTS, AS REQUESTED BY THE CITY AND
SET FORTH IN THIS RESOLUTION, AND ALL OF WHICH SHALL BE
PROVIDED BY PERMITTEES IN THE MANNER PRESCRIBED BY, AND
WITHIN THE TIMEFRAMES OUTLINED IN AMENDMENT NO. 2, AS A
CONDITION OF THE CITY'S APPROVAL OF THIS RESOLUTION AND AS
CONSIDERATION FOR THE CITY'S ISSUANCE OF THE PERMITS; AND
ALSO, PROVIDING, AS A FURTHER CONDITION OF APPROVAL OF THIS
RESOLUTION AND CONSIDERATION FOR ISSUANCE OF THE PERMITS,
THAT BEACH TOWING SERVICES, INC., ON BEHALF OF ITSELF AND
INCLUDING ALL RELATED PERSONS AND ENTITIES, AS THE PLAINTIFF
AND PETITIONER IN THOSE CERTAIN LAWSUITS FILED AGAINST THE
CITY (AS SUCH LAWSUITS ARE SET FORTH IN THIS RESOLUTION},
DISMISS WITH PREJUDICE SUCH ACTIONS THAT REMAIN PENDING WITH
PREJUDICE, AND TO EXECUTE A COVENANT NOT TO SUE, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, IN ANY ADMINISTRATIVE OR
JUDICIAL ACTIONS, FOR ITSELF AND ALL PERSONS OR ENTITIES
RELATED TO IT, AND NOT TO SOLICIT OR ENCOURAGE THE FILING BY
ANY OTHER PERSON OR ENTITY, OF ADMINISTRATIVE OR JUDICIAL
ACTIONS, CLAIMS OR ISSUES THAT WERE OR COULD HAVE BEEN
RAISED IN THESE CASES.
WHEREAS, Chapter 106, Article V, Division 2 of the Miami Beach City Code, provides
for the issuance by the City Commission of towing permits, for the towing of vehicles identified
by the City as requiring removal from the public way; and
WHEREAS, on January 11, 2006, the Mayor and City Commission approved Resolution
No. 2006-26100, issuing towing permits to Beach Towing Services, Inc., and Tremont Towing
Services, Inc. (also referred to herein as the Permittees); and
WHEREAS, the term of Permittee's permits expired on August 31, 2011 and, since then,
said permits have been on a month to month term; and
WHEREAS, the outside date for expiration of the aforestated month to month term is
June 30, 2012; and
WHEREAS, Permittees have been meeting with the City with regard to the City's
issuance of new towing permits to Permittees; and
451
WHEREAS, if approved, the new permits would have a three (3) year term, commencing
on March 1, 2012, and ending on February 28, 2015; and
WHEREAS, in conjunction with the aforestated issuance of the new permits, Permittees
are also requesting an increase in the Permit Fee, as currently set forth in Section 3 of the City's
Administrative Rules and Regulations for Police and Parking Towing Permits (the Rules and
Regulations), as well as certain increases to the Maximum Allowable Towing Rates, as set forth
in Section 22 of the Rules and Regulations; all as more particularly set forth in Amendment No.
2 to the Rules and Regulations, attached and incorporated as Exhibit "A" hereto; and
WHEREAS, on December 6, 2011, Permittees and City staff jointly presented an
analysis to the Finance and Citywide Projects Committee (FCWPC) regarding Permittee's
request for the aforestated rate increases; and
WHEREAS, on January 19, 2012, the FCWPC continued its discussion regarding towing
permits and, at that time, Permittees presented a further, modified analysis of their request to
the Committee; and
WHEREAS, the FCWPC recommended approval of issuance of a three (3) year police
towing permit (the Permit or Permits) to Permittees, along with Permittee's proposed rate
increases (as set forth in Exhibit "A"); provided, however, that the issuance of the permits and
the approved rate increases, as set forth in this Resolution, be subject to and conditioned upon
Permittees' agreement to, and compliance with, the following terms and conditions (all as more
specifically set forth in Exhibit "A" hereto):
1) Enhancements
• Uniforms -Permittee shall be required to provide all employees with
uniforms, which shall be approved by the City Manager or his designee.
• Employee Drug Screening -Permittee shall perform drug test screening on all
employees, and provide pass/fail results to the City Manager or his designee,
upon request.
• Driver's License Screening -Permittee shall perform driver's license
screening on all employees with driving responsibilities.
• Permittee shall reduce the storage requirement within the City limits from
seven (7) days to one (1) day.
2) Technologicallmprovements
• By the end of the first Permit year (i.e. February 28, 2013), Permittees shall
have procured, installed, and implemented Global Positioning System (GPS)
tracking devices on all vehicles. Any such GPS tracking devices must be
accessible to the City for monitoring purposes.
• At the end of the first Permit year, and provided that Permittee has complied
with the above requirement, the City Commission shall review and, following
452
such review, may elect, in its sole and reasonable discretion, to require
Permittee install the following additional technological upgrades; one (1)
each during the second and third Permit years, respectively: a) towing
software (which, at a minimum, includes dispatch tracking software that is
accessible to the City for monitoring only purposes); and b) in-vehicle
cameras (to monitor and record tows in real time).
3) City of Miami Beach Resident Discounts for Public Tows
• Effective as of the commencement of the term of the Permit, or as of March
1, 2012, Permittees shall commence providing a twenty percent (20%)
discount to City residents for public tows.
• Discounts may be applied two (2) times per Permit year, per resident, per
Permittee; resulting in a total up to four (4) resident discounts annually.
• The discount benefit shall "reset" each Permit year, for as long as the Permit
is in effect.
• The 20% discount shall also apply to the City's fee.
4) In order to clarify and strengthen the City's existing audit rights, as set forth in the
Rules and Regulations, Permittees shall meet with City staff including, without
limitation, the Chief Financial Officer and City auditor, to develop and implement
systems, procedures, and controls for the City's financial audits of Permittees'
operations pursuant to the Permit (i.e. for police -public tows -only).
5) Establishment of a procedure for indexing towing rates to assist the City in
determining rate increases in the future, utilizing a Consumer Price Index-based
analysis; and
WHEREAS, the City has been a party to the following litigation arising out of disputes
between Permittees:
1) Beach Towing Services, Inc. v. The City of Miami Beach, Case No. 11-37364 CA 31,
Eleventh Judicial Circuit, General Jurisdiction Division (complaint challenging the
adoption of Ordinance No. 2008-3617 on robotic and mechanical parking);
2) Beach Towing Services of Miami, Inc. v. The City of Miami Beach, Case No. 11-465
AP, Eleventh Judicial Circuit, Appellate Division (petition for writ of certiorari
challenging the Board of Adjustment's opinion upholding the decisions of the
Planning Director with respect to a towing garage in the 1-1 district);
3) Beach Towing Services of Miami, Inc. v. The City of Miami Beach, Case No. 11-466
AP, Eleventh Judicial Circuit, Appellate Division (petition for writ of certiorari
challenging the Board of Adjustment's opinion upholding the decisions of the
Planning Director with respect to a towing garage in the 1-1 district; and
WHEREAS, Beach Towing Services, Inc., has already dismissed without prejudice Case
No. 11-37364 CA 31 but, as a further condition of the approval of this Resolution and as
consideration for the City's issuance of the Permits, has agreed to, and shall, within five (5) days
of adoption of this Resolution: (i) dismiss with prejudice such actions that remain pending; and
(ii) to execute a covenant, in a form acceptable to the City Attorney, not to sue the City, its
453
officers and employees, in any administrative or judicial actions, for itself and all persons or
entities related to it, and not to solicit or encourage the filing by any other person or entity, of
administrative or judicial actions, claims or issues that were or could have been raised in these
cases; and
WHEREAS, the City Commission and Permittees hereby acknowledge that, while
Permittees' compliance with some of the requirements imposed upon Permittees as a condition
of approval of this Resolution (as such requirements are set forth herein and as such may also
be more specifically described in Exhibit "A") hereto may not be required until after the City's
issuance of the Permits, they are intended to be conditions subsequent to the approval of this
Resolution (and to the City's issuance of the Permits) and, as such, in the event of a Permittee's
failure to comply with any or all of such conditions, the City may suspend or revoke Permittee's
Permit.
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 authorize and approve the issuance of towing Permits to Beach Towing
Services, Inc., and Tremont Towing Services, Inc.; said Permit terms commencing on March 1,
2012, and expiring on February 28, 2015; and further, in conjunction therewith, approving
Amendment No. 2 to the Administrative Rules and Regulations for Police and Parking Towing
Permits; said Amendment providing, among other things, for an increase to the Permit Fees and
certain Maximum Allowable Towing Rates; providing for certain enhancements, public benefits,
and other additional conditions and requirements, as requested by the City and set forth in this
Resolution, and all of which shall be provided by Permittees, in the manner prescribed by and
within the timeframes outlined in Amendment No. 2, as a condition of the City's approval of this
Resolution and as consideration for the City's issuance of the Permits; and also, providing, as a
further condition of approval of this Resolution and consideration for issuance of the Permits,
that Beach Towing Services, Inc., on behalf of itself and including all related persons and
entities, as the plaintiff and petitioner in those certain lawsuits filed against the City (as such
lawsuits are set forth in this Resolution}, dismiss with prejudice such actions that remain
pending with prejudice, and to execute a covenant not to sue, in a form acceptable to the City
Attorney, in any administrative or judicial actions, for itself and all persons or entities related to
it, and not to solicit or encourage the filing by any other person or entity, of administrative or
judicial actions, claims or issues that were or could have been raised in these cases.
PASSED AND ADOPTED this----day of ______ , 2012
ATTEST:
CITY CLERK
F:\ATTO\AGUR\RESOS-ORD\TOWING PERMIT RESO (Final1-26-12).do
454
MAYOR
APPROVED AS TO
FORM & LANGUAGE
& F'"\8 ECUTION
AMENDMENT NO. 2 TO THE ADMINISTRATIVE RULES AND REGULATIONS FOR
THE POLICE AND PARKING TOWING PERMITS
(Dated February 8, 2012)
* * * *
3. PERMIT FEE/MONTHLY BILLING
Permittee shall pay to the City a monthly Permit fee, in the amount of $25.00
$30.00, effective as of March 1, 2012; $35.00 effective as of March 1, 2013; and
$40.00, effective as of March 1. 2014, for each vehicle towed. The monthly Permit fee
shall be reduced by twenty percent (20%) percent for each vehicle towed that receives
a twenty (20%) percent discount pursuant to Section 22.L herein.
The City shall bill Permittee by the 1Oth 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 2oth day of the billing month.
Payments to the City shall be 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."
* * * *
5. STORAGE AREA/STORAGE FACILITY(IES)
Permittee shall have available outside storage for a minimum of thirty-one (31)
vehicles and no more than a maximum of one hundred (1 00) vehicles. Said storage
area will be enclosed in accordance with applicable 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 illuminated to
reveal persons and vehicles at a distance of at least 150 feet during evening hours.
Permittee shall use such security measures as necessary to prevent theft, vandalism,
stripping and dismantling of parts from vehicles in all storage areas.
1
455
Permittee shall 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 secured separately.
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 the
Permit, and shall be required to make alternate arrangements for storage (as required
to comply with the terms of the Permit). Any storage area proposed to be utilized by
Permittee, 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.
Vehicles shall be stored for a minimum of one (1) seven (7) days, after which they may
be removed 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.
* * * *
11. EQUIPMENT
* * * *
E. TECHNOLOGICALIMPROVEMENTS
(1) Effective March 1, 2012, and by no later than the end of the first Permit
year. or February 28, 2013, Permittee shall. at its sole cost and expense, have
procured, installed, and implemented a GPS tracking system on all of its vehicles, in
accordance with the following procedures:
(a) Within thirty (30) days from the effective date of the Permit. or by
March 31, 2012, the City Manager or his authorized designee shall provide
Permittee, in writing, with the City's minimum specifications and standards for the
2
456
proposed GPS tracking system. which specifications and standards shall be
commercially reasonable inasmuch as the City will not prepare same with the
intent of steering Permittee toward a particular vendor. product and/or brand.
(b) Within sixty (60) days from the date of the City's minimum
specifications and standards for the GPS tracking system, the City and
Permittees shall meet to prepare a mutually agreed upon schedule for
Permittee's selection. procurement. installation. and implementation of the
system on Permittee's vehicles.
(c) The City shall have prior written approval. which approval shall not
be unreasonably withheld. of (i) the vendor selected by Permittee. and (ii) the
GPS tracking system to be purchased by Permittee from said vendor (Note: As
to this latter right. the City's approval rights over the proposed system to be
purchased shall be limited to confirming that the proposed GPS tracking system
complies and meets with the City's specifications and standards for same).
(d) Notwithstanding (a)-(c) above. Permittee shall have the approved
GPS tracking system installed and operational in all vehicles. and certify to the
City. in writing, of its compliance with this requirement. no later than sixty (60)
days prior to the end of the first Permit year (or by December 30, 2012). Non-
compliance with this requirement shall be grounds for suspension or revocation
of the Permit.
(2) Effective March 1, 2012, and in addition to the requirement in subsection 11.E.(1}
above, at any time following the end of the first Permit year. the City Commission
may, in its sole option and discretion. review and, following such review. require
Permittee to implement the following additional technological improvements; one
(1} each during the second and third Permit years. respectively:
(a} Towing software (which includes a dispatch tracking system); and
(b) In-vehicle cameras to monitor and record tows in real time.
3
457
12. EMPLOYEES OF PERMITTEE
Permittee shall be solely responsible for selecting, training and employing (or
otherwise retaining) such personnel as is necessary for Permittee to satisfy the
requirements of the Permit and to satisfactorily perform the work and services required
under the Permit.
a. Permittee shall perform driver's license screening on all employees with
driving responsibilities and a copy of each employee's driver's license shall be kept on
file by Permittee and made available upon request of the 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. Permitttee shall perform drug test screening on all employees and provide
pass/fail results to the City Manager or his designee. upon request.
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 servants, shall, under any
circumstances, be considered officers, directors, employees, contractors, agents or
servants 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 servants. Additionally, toward
that end, Permittee agrees to have no markings on either vehicles, buildings, or
correspondence that indicates or tends to indicate any official relationship between the
Permittee and the City of Miami Beach.
* * * *
4
458
22. MAXIMUM ALLOWABLE RATES
The City Commission shall establish the maximum 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):
A The first eight (8) hours of storage shall be without charge. Thereafter the
following storage rates shall apply per day:
* * * *
(2) Outside-Exterior
* * * *
(b) Any vehicle less than 20 feet in length and 8 feet in width
*
$25.00 $30.00. effective March 1, 2012
$36.00. effective March 1, 2014
* * *
B. Tow Rate Class "A" Tow Truck and Class "A" Car Carrier, including:·
1. First 30 minutes at scene $115.00$140.00. effective March 1, 2012
2. Unlocking door $150.00. effective March 1, 2013
3. Dropping/hooking up linkage $155.00, effective March 1. 2014
4. Wheel lift equipment
5. Use of Dolly
* * * *
H. Special and additional charges
* * * *
5
459
2. Mileage charges (per mile):
Maximum per tow:
3. Administrative fee:
$§.;00 $6.00. effective March 1, 2012
$7.00, effective March 1. 2014
$35.00$42.00. effective March 1. 2012
$49.00, effective March 1. 2014
$30.00 $35.00 maximum per tow. effective March 1, 2012
$41.00 maximum per tow. effective March 1, 2013
$44.00 maximum per tow. effective March 1, 2014
4. Dollies or Flatbed Services (per job):
5. Labor to Engage!Tow:
$35.00 $40.00, effective March 1, 2012
$47.00, effective March 1, 2013
$50.00, effective March 1, 2014
This is not an automatic fee and may only be imposed when access to enter the
vehicle is required to properly engage/tow vehicle.
6. After Hours Fee:
$25.00 $30.00. effective March 1. 2012
$32.00. effective March 1. 2013
$33.00, effective March 1. 2014
An After Hours Fee may be assessed for tows retrieved between the hours of
8:00 PM and 8:00AM.
$30.00
* * * *
J. Indexing Provision:
The City Manager or his authorized designee may initiate an administrative
review of the Maximum Allowable Rates whenever the cumulative change in the
6
460
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.
* * * *
L. Miami Beach Resident Discount
Effective March 1. 2012, Permittee shall reduce the total towing charges by
twenty percent (20%) for any City of Miami Beach resident whose vehicle has been
towed. City residents shall be entitled to such discount two (2) times per Permit year
(for every year during the Permit Term). per resident, and per Permittee. This shall
equate to a maximum of four (4) annual discounts for a City resident during each Permit
year during the Term. In order to be eligible for the City 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.
The monthly Permit fee shall be reduced by twenty percent (20%) for each vehicle
towed that receives a discount pursuant to this section. Permittee shall maintain a log
documenting discounts given to City residents pursuant to this section. which log shall
be available for inspection and copying by the City Manager or his authorized designee.
upon request.
* * * *
7
461
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(s) and, in the case of inspection checks, without the need for
prior notice to Permittee.
Effective March 1, 2012, and notwithstanding the parties' acknowledgement of
the City's existing rights to audit and inspect Permittee pursuant to this Section 27, the
City Manager or his authorized designees (including, without limitation. the City's Chief
Financial Officer and Internal Auditor) shall meet with Permittee to develop mutually
agreed upon procedures. systems, and controls for the purpose of the City conducting
financial audits concerning Permittee's operations pursuant to the Permit.
In the event that the City and Permittee are not able to develop mutually agreed
upon procedures, systems, and controls for City audits of Permittee's operations within
ninety (90) days from the commencement of the Permit Term (or by June 1, 2012), then
the City Manager shall refer this matter to the Finance and Citywide Projects Committee
for discussion including, without limitation, discussion of disputed issues. The Finance
Committee shall review the procedures that have been developed, including any
disputed items and issues, and may make a recommendation as to same and.
additionally, may recommend that the matter be referred for review by the full City
Commission. The City Commission's decision on the matter shall be final and binding
upon all parties.
F:\ATTO\AGUR\AGREEMENnTowing Rules and Regs-Amendment No. 2 (1-31-12).docx
8
462
EXHIBIT 1
Beach Towing Services, Inc.
ANALYSIS OF MAXIl'vlUl\1 ALLOWABLE TO\\'ING RATES
City of Miami Beach
.\~.\LYSIS I'-. Sl"PPORT OF .\\IE~Dli\G Sl'CTIO~' 22. U\TITI.FD. ""\!:\:'\1\ll .. \1
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.\'-D R('(iU.\TIO~S FOR POLICI.: .\:\D P.\RKIT\(i TOW!Vi Pl'R\liTS .. \S RF\'ISLD
0'-.II I Y :2. 2009 .. \T\D .\\lf~DED 0!\ \L\Y II. 2011. BY 1'\CRb\SE\<i THE
\1 \:'\1\ll. \I \1.!.0\\ .\BI.E R.\TFS TO R!l U ( T TIIF .\1\:\\ .\l. CO'-Sl. \H:R I'RICF
,}T\Dl~:'\ FOR Tli!E \11~\11-FOR r L.\t DERD.\LL RE<iiOl\ SIT\CI-: 200-l OR F.\RLII·.R 1 .-.YI1. ,.
f
Caceres & Gomez, CPA, P.L.
1035 S\\' s~•h :\ yenue
~Iiami, Florida 331 ~ 4
(305) 265-860""'
December 6, 2011
Beach Towing Services, Inc.
1349 Dade Boulevard
Miami Beach, Florida
To The Board of Director's:
Certified Public Accountants
\\'\\'W.cacerescpa.com
Following is the analysis requested and adopted by your management relating to the
increase of the Maximum Allowable Towing Rates for FY2012 through FY2014, from the base
rate of FY2004, or earlier, adjusted by the Consumer Price Index applicable to the Miami-Fort
Lauderdale area. The FY2004 Maximum Allowable Towing Rates were obtained from the City
of Miami Beach Administrative Rules and Regulations For Police and Parking Towing Permits,
Revised as of July 22, 2009 (see Appendix 1 of the Analysis), which rates were recommended in
the Commission Memorandum dated January 14, 2004 (see Appendix 2 of the Analysis).
>"The analysis is intended for internal use only and your management's presentation to the
Mayor and City c&mmission of the City of Miami Beach, Florida, which is responsible for
setting the Maximum Allowable Towing Rates and should not be used for any other purpose.
The actual results may vary from those presented, and the variations may be material.
~ &.-~i C.PIJ, P.L.
Caceres & Gomez, CPA, P.L
464
Over the past ten years there has been a substantial increase in the CPI published by the
U.S. Bureau of Labor Statistics. c~be increase translates to an average CPI annual increase of
9
about 2.97% over a 10 year Pt;.t:i-od or an increase in expenses of about the same rate. More
importantly, CPI adjustments increased at a rate of 4.7% in 2005, 4.90% in 2006, 4.20% in 2007,
and 4.60% in 2008. The CPI decreased at a rate of -0.30% in 2009. The CPI increased at a rate
of 0.80% in 2010. The trend for 2011 is a CPI increase of approximately 3.70%. The data tables
from the U.S. Bureau of Labor Statistics are attached hereto in as Appendix "3."
The rapid rise in costs has severely dampened the financial sustainability of operating a
towing business in the City of Miami Beach, particularly if the Maximum Allowable Towing
Rates are not adjusted in a timely manner. The rates have remained stagnant ranging from
2001 for several fees and for all fees since January 14, 2004, resulting in unavoidable losses of
income for companies engaged in the towing business in the City of Miami Beach.
'
Thus, Beach Towing Services, Inc., believes the CPI increases from the base rates ranging
from 2001 and from the 2004 to the present warrant an increase to the "Maximum Allowable
Rates," set forth in Section 22 of the City of Miami City of Miami Beach Administrative Rules
and Reglrf-lations For Police and Parking Towing Permits, Revised as of July 22, 2009 (attached
hereto as Appendix "!"). It is vital to note that the same conditions and justifications cited in
the Commission Memorandum dated January 14, 2004 (attached hereto as Appendix "2"), to
warrant an increase to the Maximum Allowable Towing Rates are present today.
The following Table 1, broken out into two (2) pages, reflects the application of the CPI
to the FY2004 Maximum Allowable Towing Rates. Immediately following the CPI calculations
are Beach Towing Services, Inc., proposed blended rates (rounded for simplicity) until such time
as the rates approximate the CPI adjusted rates through FY 2014. Table 2, summarizes the
effect of the CPI increases to the Average Tow.
Beach Towing Services, Inc.
Consulting Engagement
465 ,,,,,,,,, .. _, ____ -------
Ww:R.mN.Affl~~~ov:«~o:~>::::o:~m~~ ~~':>:·:·:·:·;;;~·:·;-;;":~:":·~~:-::~·;-: ....... ~:-:·:~~·:::·:·:·:·:·:~ ... ~»:·;~. [·-·~~-""-·-···~ -~-~-~-·· Table 1. PG 1-The Annual Consumer Price Index obtained from the U.S. Department of labor for Miami-Fort lauderdale Region, not seasonally adjusted, applied to the applicable Maximum Tow Rates Established in January 14, 2004 or earlier applicable base rate. Blended Increase of Rates with Embedded CPIIncrease $ 12.00 $ 30.00 $ 35.00 $ 135.00 $ $ 12.00 $ 30.00 $ 35.00 $ 145.00 $ $ 15.00 $ 36.00 $ 44.00 $ 150.00 $ LEGEND -TABLE 1 (PG 1.2) 165.00 $ 180.00 $ 190.00 $ Class B & C I Annual CPI% Class D Towing I Towing Fee Car increase Fee Carrier 200.00 $ 220.00 $ 230.00 $ 230.00 $ 250.00 $ 265.00 $ 145.00 160.00 180.00 a) The analysis of CPI increases was applied as of FY2005, since the January 14, 2004 determined increases were scaled in 2004 and 2005. b) For the periods FY2013 and FY2014, the CPIIncrease used was the 10 year average CPI, calculated at approximately 3.0% (rounded). Beach Towing Services, Inc. Consulting Engagement
r""'''~,,,,,,,,",,,,,,,.,.,,.,,,,,,,,,,,,,,.,.,, .. ,,,,,.,,.,. .... : .. ·,·.·.·.·.·,·c·.·.·.·····.·.·.···.·············· . .. ... Table 1. PG 2-The Annual Consumer Price Index obtained from the U.S. Department of labor for Miami-Fort Lauderdale Region, not seasonally adjusted, applied to the applicable Maximum Tow Rates Established in January 14, 2004 or earlier applicable base rate. CPI Adjusted Rates from the Applicable Base Rate to FY2012 throuah FY2014 ... Extra Labor Year I Fee/Waiting Mileage Charge Administrative Dollies/Flat Bed I Labor to I Administrative I Miami Beach I Annual CPI % Time Per hour Fee Services EngagefTow Charge City Fee increase Sections: I 22.H.1. 22.H.2. 22.H.3. ~.H.4. j22.H.5.See Note (a) I 22.K. ~· 3.70% ~~ Blended Increase of Rates with Embedded CPllncrease $ 20.00 $ 6.00 $ 35.00 $ 40.00 $ 30.00 $ 35.00 $ 30.00 $ 22.00 $ 6.00 $ 41.00 $ 47.00 $ 32.00 $ 40.00 $ 32.00 $ 24.00 $ 7.00 $ 44.00 $ 50.00 $ 33.00 $ 43.00 $ 35;00 LEGEND -TABLE 1 (PG 1.2) a) The analysis of CPI increases was applied as of FY2005, since the January 14, 2004 determined increases were scaled in 2004 and 2005. b) For the periods FY2013 and FY2014, the CPIIncrease used was the 10 year average CPI, calculated at approximately 3.0% (rounded). Beach Towing Services, Inc. Consulting Engagement b b
Table 2-The following table summarizes the effect of the Proposed CPI increases on the Maximum Allowable Tow Rates for the Average Tow. Effect of Prooosed CPI Increase to Average Tow Fee Year 1 Class A Towing Fee I Sections:! 22.8. $ 115.00 $ 135.00 $ 145.00 $ 150.00 Beach Towing Services, Inc. Consulting Engagement Mileage Charge 22.H.2. $ 5.00 $ 6.00 $ 6.00 $ 7.00 Administrative Labor to Fee -EngagefTow ' '"'' 22.H.3. 22.H.5. $ 30.00 $ 25.00-$ 35.00 $ 30.00 $ 41.00 $ 32.00 $ 44.00 $ 33.00 Outside Storage • . Fee Any Vehicle I M1a~1 Beach I Average Tow <20ft L & <Sft W City Fee Fee Increase 22.A.(2)(b) $ 25.00 $ $ 30.00 $ 30.00 ~$ 31.00 $ 30.00 $ 33.00 $ 15.00 $ 36.00 $ '35.00 $ 14.00 .· .. · .·.,.··:-:·: ·:·:·:·:~::~:;..-.::~~~»~~«~~