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R7G-Approve Month-To-Month Extension Towing Permits With Beach And Tremont TowiCOMMISSION ITEM SUMMARY Condensed Title: Update to the February 8, 2012 Commission Memorandum on Public Towing Permits. A Resolution authorizing and approving a month to month extension of the towing permits with Beach Towing Services, Inc., and TremontTowing Services, Inc., respectively; said extension commencing on July 1, 2012, and expiring on December 31,2012. 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: I Shall the Mayor and City Commission approve a month-to-month extension of the towing permits? Item Summary/Recommendation: The City's Police and Parking Departments Public Towing Permits, and related issues, have been the subject of extensive discussion; both before the City Commission and at the Committee level, (as heard on numerous occasions before the Finance and Citywide Commission Projects Committee). Most recently, the issue was brought before the City Commission on February 8, 2012; at that time, the City Commission referred the towing permit and related issues to a Special Joint Finance and Citywide Projects Committee and Neighborhoods and Community Affairs Committee meeting. However, due to scheduling conflicts, this special meeting has not yet taken place. The Administration is bringing the issue back to the City Commission at this time for two reasons: 1.) To provide an update as to what has transpired since the February 8, 2012, meeting; and more importantly, 2.) To advise the Commission that, the most recent extension of the public towing permits expires on June 30, 2012, further action is required should we wish to continue to have the current permittees continue to provide towing services to the City's Police and Parking Departments. Provide direction to the Administration/Adopt the Resolution. Special Joint Finance and Citywide Projects Committee and Neighborhoods and Community Affairs ommittee meetin is to take lace. Financial Information· Source of Amount Funds: 1 2 I I 3 4 OBPI Total Financial Impact Summary: Clerk's Office le islative Trackin Saul Frances, extension 6483 Si n-Offs: Department Director SF __ .::... T:\AGENDA\2012\June620111 \TowingPermitExtensionJune62012.sum.doc MIAMI BEACH 429 Account AGENDA ITEM __.!..R.:.._1:......:G-=--- DATE f,~(, ... I z._ City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov TO: FROM: DATE: COMMISSION MEMORANDUM Mayor Matti Herrera Bower and Members of the City Commission Jorge M. Gonzalez, City Manager ~ June 6, 2012 {) (___/ SUBJECT: UPDATE TO THE FEBRUARY 8, 2012 COMMISSION MEMORANDUM ON PUBLIC TOWING PERMITS A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING AND APPROVING A MONTH TO MONTH EXTENSION OF THE TOWING PERMITS WITH BEACH TOWING SERVICES, INC. AND TREMONT TOWING SERVICES, INC., RESPECTIVELY; SAID EXTENSION COMMENCING ON JULY 1, 2012, AND EXPIRING ON DECEMBER 31,2012. ADMINISTRATION RECOMMENDATION Provide direction to the Administration. BACKGROUND The City's Police and Parking Departments Public Towing Permits, and related issues, have been the subject of extensive discussion; both before the City Commission and at the Committee level, (as heard on numerous occasions before the Finance and Citywide Commission Projects Committee). Most recently, the issue was brought before the City Commission on February 8, 2012; at that time, the City Commission referred the towing permit and related issues to a Special Joint Finance and Citywide Projects Committee and Neighborhoods and Community Affairs Committee meeting. However, due to scheduling conflicts, this special meeting has not yet taken place. The Administration is bringing the issue back to the City Commission at this time for two reasons: 1.) To provide an update as to what has transpired since the February 8, 2012, meeting; and more importantly, 2.) To advise the Commission that, the most recent extension of the public towing permits expires on June 30, 2012, further action is required should we wish to continue to have the current permittees continue to provide towing services to the City's Police and Parking Departments. PENDING ISSUES At this time, the following represents a summary of the outstanding issues pertaining to the City's Towing Permits (and related issues thereto): Status of Current Police and Parking Department Towing Permits As provided under Sections 106-211 through 106-222 of the City Code (Police Vehicle Towing), the City has two (2) permittees, Beach Towing Services, lnc.(Beach Towing), and Tremont Towing Services, Inc., {Tremont Towing) charged with the task of towing and/or storing of vehicles identified by the City's Police and/or Parking Department as requiring removal from public property. The administrative process for considering applications for these towing permits requires applications to be submitted to, and considered by, the City 430 Towing Issues Supplemental Memorandum June 6, 2012 Page 2 of6 Manager, subject to final approval and award by the City Commission. The latest towing permits with Beach Towing and Tremont expired on August 31, 2011. The Permittees have been continuing to provide services ona month to month term, with an outside expiration date for such term on June 30, 2012. At this time, in order for Permittees to continue to provide the foretasted services to the City, the City Commission may elect to either: • approve an additional month to month extension (to allow for further negotiations); or • issue new permits, for a three (3) year maximum term allowed under Code Section 106-215); or • authorize the City Manager to issue a call for applications to provide public towing services, under the City Code, the City Manager receives and screens the applications and presents them to the City Commission for approval. The Permittees have been involved in ongoing negotiations with the City regarding two (2) issues: Issue No. 1 (New Permit Term): Permittees have requested the issuance of a new permit (having the three (3) year maximum term). If the Mayor and Commission wish to grant a new three (3) year maximum permit term, the Administration recommends that the Permittees agree to provide Item Nos. 1 through 6 below, as a condition of the three (3) maximum permit term. 1) Enhancements • Uniforms -Requires Permittees to provide all employees with uniforms, which shall be approved by the City Manager or his designee. • Employee Drug Screening -Requires Permittee to 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 -Requires Permittee to perform driver's license screening on all employees with driving responsibilities. • Reducing the storage requirement within the City limits, from seven (7) days to one (1) day. 2) Technologicallmprovements Per the most recent discussions, were the City to issue Permittees new Permits (for the maximum three (3) year term), the City required as a condition thereof the following: • By the end of the first Permit year (to be determined), 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 GPS requirement, the City Commission shall review 431 Towing Issues Supplemental Memorandum June 6, 2012 Page 3 of6 and, following 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 • In the event that the Commission renews the current permits, require Permittees to provide 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) Stronger Audit Rights In order to clarify and strengthen the City's existing audit rights, as set forth in the Administrative Rules and Regulations for Police and Parking Department Towing Permits, 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 public tows only). 5) Dismissal of Existing Lawsuits Dismissal, with prejudice of certain litigation initiated against the City by Permittee Beach Towing Services, Inc.: 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); 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); 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. The chart attached as Exhibit "1" to this Supplemental Memorandum, provides a quick reference showing what the Permittees agreed to (and what they didn't agree to) with 432 Towing Issues Supplemental Memorandum June 6, 2012 Page 4of6 regards to the aforestated City-proposed additional benefits and concessions. More specifically, the chart attached as Exhibit "2" to this Supplemental Memorandum, also summarizes the Permittees' position as to certain City-proposed terms as of February 8, 2012. Issue No.2 (Maximum Allowable Rate Increases) Permittees have requested an increase to the Maximum Allowable Towing Rates, including the establishment of an Index for future adjustments. The Administration is seeking direction from the Mayor and Commission regarding this issue. To date, the analysis regarding a possible rate increase has centered on the annual, compounding effect of the CPI on the current rate and what the rate would be had an index been in place. In addition, a comparison of sixteen jurisdictions, including Miami Beach was conducted and it demonstrated that the current Class A fee of $115 is the median fee for these jurisdictions. A study that has not been conducted (because the City does not have access to the information) is an analysis to determine the accuracy of the claims by the industry that their business model is no longer profitable with the current rates. Any consideration by the Commission to increase the rates should take into consideration such analysis to ensure that any adjustment to the towing rates are fair and commensurate with the service being provided. The Mayor and Commission may also consider the following alternative to the Permittees' proposed increases to the towing rates and fees. Towing Rate Increase and Enhancements-Alternative The Permittees have strenuously objected to providing any enhancements and/or technological improvements requested by the City due to the additional operational costs for instituting and maintaining such enhancements. In lieu of a rate increase, an alternative solution is to allow for a "surcharge fee" for a limited period until those additional expenses incurred by the Permittees are recuperated. It is estimated that a Surcharge of $2.00 per tow could be enacted for a predetermined period of time or until such time that those expenses are recuperated by the Permittees and then reduced to a lower surcharge fee for any recurring fees or costs. INITIATIVES SINCE FEBRUARY 8, 2012, CITY COMMISSION MEETING Negotiations with Permittees The Administration held two meetings with the Permittees on March 6, 2012, and March 21, 2012. The purpose of the meetings was to negotiate certain outstanding items, as directed by the City Commission: temporary vehicle storage; defamation provision; penalties/fines schedule, and method of payment. Unfortunately, these items were not reached during negotiations as the Permittees disagreed with the Administration's account of the FCPC direction regarding the implementation schedule for GPS Tracking; towing software/point of sale system; and in-vehicle cameras. Additionally, prior to any further negotiations, the Permittees sought the City Manager's endorsement of the proposed towing rate increases. Despite the fact that the FCPC had approved the proposed rate increases sought by the Permittees, the Permittees issued the ultimatum that there would be no further dialogue on any of the issues until, the City Manager endorsed the proposed rate increases. As a result, no further negotiations have taken place. These issues will be addressed at the Special Joint Meeting of the FCPC/NCAC. Audit of the City's Towing Permit 433 Towing Issues Supplemental Memorandum June 6, 2012 Page 5 of6 An audit of the Police and Parking Department Towing Permits has been completed. The City engaged the accounting firm of Marcum Accountants and Advisors, to perform an audit of the City's towing permits. The audit was completed (see attached) and there were no material findings. The audit included recommendations to further enhance accountability and address customer complaints. However, neither Permittee agreed to voluntarily submit to an audit of their private property tows. Commissioner Libbin had presented a proposed ordinance which was discussed at the Finance and Citywide Projects Committee meeting of January 19, 2012, allowing for City audits of private property towing permits. During discussion, the Committee made no formal recommendation, but seemed inclined to consider the proposed ordinance should it be revised to limit the scope of such audits for purposes of City insuring compliance with the private towing agreements, but that it not delve into the company's financial records pertaining to private tows. The ordinance is still in Committee and has not been brought up again for discussion. This draft Code amendment is currently making its way through the FCPC as a separate item. Temporary Vehicle Storage This is one of the outstanding issues with the Permittees which was resolved without any further negotiations necessary with the Permittees. The Administration and City Attorney's Office researched this issue and determined that no amendment to the City Code is necessary. The City may utilize the Miami Beach Convention Center loading docks as temporary vehicle storage for towing during high impact events. This accommodation was successful during Memorial Day Weekend (MDW) 2011, and has been initiated for MDW 2012. It is anticipated that high impact events may trigger this need twice, annually. OTHER RELATED ISSUES The following are other related issues to the towing industry which are at varying stages of progress. Private Property Audits Beach Towing and Tremont Towing have objected to voluntarily submitting to an audit of private property towing agreements. Commissioner Libbin has proposed an amendment to the City Code to allow the City to audit private property towing. The proposed ordinance is still before the FCPC, but has not been brought up again for discussion. Proposed Terminal Island Towing Storage Facility The FCPC referred the issue of the City's in-house towing initiative to the full City Commission as a discussion item, and it was also discussed at the recent City Commission Retreat. Additionally, a traffic analysis to improve circulation and access to Terminal Isle, including the impact of a towing storage facility, was conducted. The development and reconfiguration of Terminal Island is necessary in order to move forward with this initiative. The options available to the City include either: (1) development and reconfiguration of the parcel currently under the City's control; or (2) pursue either potential land acquisition and/or swaps with adjacent property owners. At the request of the City Commission, a traffic study of the intersection of Terminal Island and McArthur Causeway was conducted. With the proposed relocation of the towing storage facilities to Terminal Island, it is anticipated that during peak hours there will be two trucks coming to Terminal Island, and two leaving to go to Miami Beach. This volume is negligible and, when added to the intersections, it causes negligible increase in delay. However, the intersection at Terminal Island and McArthur Causeway, which is currently failing, will need 434 Towing Issues Supplemental Memorandum June 6, 2012 Page 6 of6 to be improved to handle the additional traffic volumes. As part of secondary findings of the traffic study, several improvement alternatives were developed to simplify the geometry and traffic operation at the intersection of Terminal Island and McArthur Causeway. All these alternatives developed will result in a significant improvement in the intersection operation. However, the associated levels of service will range between LOS C and LOS D from the current LOS F. These alternatives are being discussed by the Land Use and Development Committee as part of overall traffic concerns on Terminal Island, and are not related to the question of creating a towed vehicle storage facility at this location. All of these conceptual alternatives will require additional studies to determine feasibility and costs. Moving the towing storage facilities to Terminal Island is feasible, but it could have some impact on the daily operation of the City's Fleet Management and the Sanitation Department located at Terminal Island. The biggest problem would deal with the accommodation of the displaced parking areas that the new towed vehicle storage facility would occupy. Partnering with the adjacent property owners would be required in order to explore opportunities that would improve the City's operations, and to proceed with any of the alternative improvements that physically modify the circulation on the island. Additionally, and of equal importance, is the concern raised by the Palm, Hibiscus and Star Island Homeowners Association. They have expressed opposition to the idea that towed vehicle storage be relocated on Terminal Island (see Attachment A). 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 in order for these issues to be discussed and analyzed in a thoughtful manner, the Commission has continued to extend the permits on a month to month basis. However, it is important to note that the City Commission must act and approve either a month to month extension or a new permit term, as the current month to month extension will expire on June 30, 2012. 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 Harbor 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. The Commission should provide policy guidance on this matter, including direction regarding the towing permit term. Attachments JMG/RAA/JGG/SF T:\AGENDA\2012\06-06-12\TowingPermitlssuesAdministrationUpdateJune62012.cme.docx 435 Plttm • Hibi-scus • S&m· ISlANDS ASl!IOaA'I'ION, ll'IC. May31,2011 Mayor Mattie Bower Commissioner Michael Gongora Commissioner Jorge Exposito Commissioner Jerry Libbin Commissioner Ed Tobin Commissioner Deede Weithom Commissioner Jonah Wolfson RE: Possible Tow Lot on Terminal Island Madam Mayor and Commissioners; Attachment A I am writing to you on behalf of the Board of Directors and residents of the Palm-Hibiscus-Star Islands Association about the subject of a potential towing lot on Terminal Island. After seeking the opinion of our residents, the vast majority are against the suggestion that the City of Miami Beach establish a towing lot on Terminal Island for those vehicles towed by the City. Short notice and the long holiday weekend will prevent many of our residents from attending the Commission Meeting on June 1st. The MacArthur Causeway is the major artery connecting our neighborhood to areas outside, in the City of Miami Beach, the City of Miami and points beyond. Obviously, this will add traffic (slow moving traffic) to the already packed MacArthur Causeway and the traffic light intersections, including the Fountain Street/MacArthur Causeway intersection (entrance to Palm and Hibiscus Islands), the Bridge Street/MacArthur Causeway intersection (entrance to Star Island), the Terminal Island/MacArthur Causeway intersection and the 5th Street/ Alton Road intersection. This is in addition to the Port of Miami Tunnel Project, the new Star Island Roadway Project, construction on South Beach, the upcoming Palm and Hibiscus Islands GO Bond Projects, the Hl'biscus Island Undergrounding Project and the many busy weekends in the community such as the Memorial Day Weekend, the Fourth of July Weekend, Labor Day Weekend, Art Basel, the Boat Show, the Orange Bowl, Super Bowls, Marathons, etc., etc., etc. We have cooperated with all of the above activities and continue to be supporting of those and other activities that benefit the City, the community and the local economy. This proposal goes way beyond those activities that we can support. Our residents strongly encourage the City Commission and City Administration to look elsewhere for a suitable site for a vehicle storage area when vehicles in the City are towed. Sincerely, Hans C. Mueller President 152 Palm. Avenue • Miami Beach, FL 33139 436 -· EXHIBIT "1" AMENDMENT NO.2 TO THE ADMINISTRATIVE RULES AND REGULATIONS FOR THE POLICE AND PARKING TOWING PERMITS (Dated February 8, 2012) COMMISSION AGENDA RESOLUTION PERMITTEES' RESOLUTION WITH AMENDMENTS 11. EQUIPMENT 11. EQUIPMENT E. TECHNOLOGICAL IMPROVEMENTS E. TECHNOLOGICAL IMPROVEMENTS (1) Effective March 1, 2012, and by no later than the end of the first (1) Effective March 1, 2012, the City Manager or his authorized Permit year, or February 28, 2013, Permittee shall, at its sole cost and designee shall meet with Permittee to develop mutually agreed upon expense, have procured, installed, and implemented a GPS tracking data controls and minimum specifications and standards for the system on all of its vehicles, which will be accessible to the City for purpose of Permittee, procuring, installing and implementing a Global monitoring purposes onlv, in accordance with the following procedures: Positioning System (GPS tracking system), at its sole cost and (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 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. expense, on all of its vehicles that provide towing services to the City pursuant to the Permit, by no later than the end of the first Permit year, or February 28, 2013. In the event that the City and Permittee are not able to develop mutually agreed upon data controls and minimum specifications and standards for Permittee's procurement, installation, and implementation of a GPS tracking system within one hundred twenty (120) days from the commencement of the Permit Term (or by July 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 and Citywide Projects Committee shall review the data controls and minimum specifications and standards that have been proposed, including any disputed items and issues, and shall make a recommendation as to same and refer the matter to the Mayor and City Commission. The Mayor and City Commission's decision on the matter shall be final and binding upon all parties. (a) Notwithstanding subsection 11.E(1) above, 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 proposed data controls and minimum specifications and standards for the proposed GPS tracking system, which data controls and 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. r-... M .q- (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) Notwithstanding subsection 11.E(1) above, within sixty (60) days from the date of Permittee's written receipt of the City's proposed data controls and minimum specifications and standards for the GPS tracking system, the City and Permittee shall meet to discuss same and, in the event that the City and Permitee are able to agree upon data controls and minimum specifications and standards for the GPS tracking system, the parties shall prepare a mutually agreed upon schedule for Permittee's selection, procurement, installation, and implementation of the system on Permittee's vehicles that provide towing services to the City pursuant to this Permit. (c) In the event that the City and Permittee are able to develop mutually agreed upon data controls and minimum specifications and standards for the GPS tracking system, 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 proposed data controls and minimum specifications and standards for same). (d) Notwithstanding (a)-(c) above, Permittee shall have the approved GPS tracking system installed and operational in all vehicles that provide towing services to the City pursuant to this Permit no later than february 28, 2013, and certify to the City, in writing, of its compliance with this requirement, no later than thirty (31) days after the end of the first Permit year (or by March 31, 2013). Non-compliance with this requirement may result in 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, refer discussion of implementation by Permittee, at its sole cost and expense, of the following additional technological improvements to the Finance and Citywide Projects Committee: (a) Towing software (which must include a dispatch tracking system); and, co M .q- (b) In-vehicle cameras to monitor and record tows in real time. [NOTE: MAJOR DIFFERENCE BETWEEN CITY AND PERMITTEE'S LANGUAGE IS THAT PERMITTEE INSERTS LANGUAGE THAT DISCUSSION OF ADDITIONAL TECHNOLOGICAL IMPROVEMENTS CAN BE REFERRED TO FINANCE AND, IF REFERRED, REQUIRES FINANCE TO ISSUE A RECOMMENDATION.] 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 Consumer Price Index (CPI -All Urban consumers -US City average -All items -Base Period 1982-84 = 1 00) (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. [NOTE: CITY AND PERMITTEE'S PROVISIONS ARE SUBSTANTIVELY DIFFERENT. PERMITTEE'S LANGUAGE: • Sets a date, starting with January 1, 2015 (and every January 1st thereafter, that the CPI rises) for review. • Request for rates review can be made by either City or Permittee. • Reviewing CPI Indexes are different • Permittee includes a "formula" which should be verified by Finance. • Requires referral to Finance Committee for review and recommendation. • Permittee provides for June 1st effective date if the rates are increased. (b) In-vehicle cameras to monitor and record tows in real time. The Finance and Citywide Projects Committee shall review implementation by Permittee of the aforementioned technological improvements, and, following such review, shall make a recommendation as to same and refer the matter to the Mayor and City Commission. The Mayor and City Commission may require Permittee to implement the aforementioned technological improvements; one (1) each during the second and third Permit years, respectively. The Mayor and City Commission's decision on the matter shall be final and binding upon all parties. J. Indexing Provision: Effective January 1, 2015, and every January 1 thereafter, Permittee or the City Manager or his authorized designee may request an increase to the schedule of Maximum Allowable Rates each year that the Consumer Price Index rises. The increases shall be based on the Consumer Price Index for All items for All Urban Consumers for the Miami-Fort Lauderdale, Florida Area, Base Period 1982-84 = 1 00 (CPI). The increase shall be calculated by multiplying the current Maximum Allowable Rates by a fraction, the numerator of which shall be the CPI for the December preceding the request to increase the Maximum Allowable Rates, and the denominator of which shall be the CPI for the December preceding the last time the Maximum Allowable Rates were adjusted. Increases shall be rounded to the nearest whole dollar. If an increase is requested pursuant to this Section 22.J., the City Manager shall refer the request to the Finance and Citywide Projects Committee for discussion. The Finance and Citywide Projects Committee shall review the request and shall make a recommendation as to same and refer the request to the Mayor and City Commission. The request shall be subject to final approval by the Mayor and City Commission. The adjusted Maximum Allowable Rates shall be effective on June 1 of each year that the rates are increased. 0') M .q- 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. STATUS OF OUTSTANDING ISSUES WITH PERMITTEES 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 and Citywide Projects Committee shall review the procedures that have been proposed, including any disputed items and issues, and shall make a recommendation as to same and refer the matter to the Mayor and City Commission. The Mayor and City Commission's decision on the matter shall be final and binding upon all parties. PERMITTEES AGREE OR DISAGREE 1. METHOD OF PAYMENT -THE TOWING PERMITS STIPULATE 11. PERMITTEES DISAGREE WITH CREDIT CARD ACCEPTANCE REQUIRED METHODS OF PAYMENT (CASH, CHECKS, AND CREDIT REQUIREMENT. CARDS). CURRENTLY, PERMITTEES DO NOT ACCEPT CREDIT CARDS 2. AUDITING AND INSPECTION PROVISIONS 2. PERMITTEES AGREE IN CONCEPT BUT DISAGREE WITH LANGUAGE IN THE RESOLUTION (SEE SECTION NO. 27 ABOVE) 3. DEFAMATION PROVISION (VIDEO/AUDIO DEPICTION PUBLIC\ 3. PERMITTEES DISAGREE TOWS) 0 ..q-..q- 4. CONSUMER PRICE INDEXING 4. PERMITIEES AGREE IN CONCEPT BUT DISAGREE WITH LANGUAGE IN THE RESOLUTION (SEE SECTION J ABOVE) 5. EXTEND HOURS OF STORAGE FROM 8 TO 12 HOURS AT NO I s. PERMITIEES DISAGREE CHARGE. 6. MITIGATE TOWING OPERATIONAL CONDITIONS ON THE SURROUNDING NEIGHBORHOOD. I 6. PERMITIEES DISAGREE 7. PENALTIES AND FINE SCHEDULE I 7. NO DISCUSSION 8. CUSTOMER COMPLAINTS I 8. NO DISCUSSION "'C""" ..q-..q- EXHIBIT "2" COMMISSION 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 Sup~orted: Increase community satisfaction with City Services. Supporting Data (Surveys, Environmental Scan, etc.): 7 4% 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 Funds: 1 2 I I 3 4 OBPI Total Financial Impact Summary: Clerk's Office Le islative Trackin Saul Frances, extension 6483 Si n..Qffs: Department Director SF C9 MIAMIBEACH 441 442 ager Account AGENDA ITEM R l E DATE ~S'-12. ~ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachR.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM' Ci1y Manager Jorge M. Gonzalez ~¥ ~l!j 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. 442 443 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No. 2 Page2of9 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 December 27, 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 2'th, 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 of tow {Class A Tow}. Please note that the Average Tow Fee (ATF} includes a Class "A" Tow 443 444 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No.2 Page3of9 Fee; Administrative Fee; Mileage one ( 1) mile; Labor; and After Hours Fee. Also, please note that the Pennittees 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 Mileag_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 per15 After min Hours CitvFee $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. 444 445 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No. 2 Page4of9 1. Storage Outside-Exterior: Any vehicle less than 20feet in length and 8 feet in width: .. $25.QQ $30.00. effective as of Januarv 1. 2012 $36.00. effective as of January 1. 2014 2. Tow Rate Class "A" Tow Truck and Class "A" Car Carrier, including: $115.QQ $140:001 effective as of Januarv 1. 2012 $150.001 effective as ofJanuarv 1. 2013 $155.00. effective as of January 1~ 2014 3. Special and additional charges Mileage charges (per mile): Maximum per tow: $&..QQ $6.001 effective as of January 1, 2012 $7.001 effective as of January 1~ 2014 $35.QQ $42.00. effective as of Januarv 11 2012 $49.00. effective as of January 1. 2014 4. Administrative Fee (Maximum per tow): $3Q.QQ $35.00. effective as of January 1 I 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.QQ $40.00. effective as of January 1. 2012 $47.001 effective as of January 1~ 2013 $50.00~. effective as of January 1. 2014 6. Labor to Engageffow: 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.QQ $30.00. effective as of January 1 I 2012 $32.001 effective as of January 1~ 2013 $33.001 effective as of January 1 I 2014 The After Hours Fee is a fee assessed to tows that are retrieved between the hours of 8:00 P.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 445 446 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No. 2 Page 5of9 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. YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 PERMITTEES' CPI Adjusted Rates from Applicable Base (2005) to FY2012 through FY2.014 Outside Outside Storage Fee Storage Fee Any Vehicle Motor a <20ft L a Scooters <8ftW 22.A.(2)(a) 22.A.(2)(b) $10.00 $25.00 $10.47 $26.18 $10.98 $27.46 $11.44 $28.61 $11.97 $29.93 $11.93 $29.84 $12.03 $30.08 $12.48 $31.19 $12.85 $32.12 $13.24 $33.09 Outside Storage Fee Any Vehide <20ft l or >BftW 22.A.(2)(c) $30.00 $31.41 $32.95 $34.33 $35.91 $35.80 $36.09 $37.43 $38.55 $39.71 Class "A" Tow Class "B" Fee Tow Fee 22.8 22.C $115.00 $145.00 $120.41 $151.82 $126.30 $159.25 $131.61 $165.94 $137.66 $173.58 $137.25 $173.06 $138.35 $174.44 $143.47 $180.89 $147.77 $186.32 $152.20 $191.91 446 447 Class BaC Towing Class "C" Class "D" Fee Car Annual Tow Fee Tow Fee Carrier CPI% 22.0 22.E 22.F 2.80% $175.00 $200.00 $138.23 4.70% $183.23 $209.40 $144.73 4.90% $192.20 $219.66 $151.82 4.20% $200.28 $228.89 $158.19 4.60% $209.49 $239.42 $165.47 -0.30% $208.86 $238.70 $164.98 0.80% $210.53 $240.61 $166.30 3.70% $218.32 $249.51 $172.45 3.00%* $224.87 $256.99 $177.62 3.00%* $231.62 $264.70 $182.95 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No. 2 Page6of9 CITY'S 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" Class "B" Class "C" Class "D" Towing Motor & <20ft L & <20ft L or Tow Tow Tow Tow Fee car scooters <Bftw >SftW Fee Fee Fee Fee Carrier YEAR 22.A.{2}{a) 22.A.{2)_{b) 22.A.{2)(c) 22.B 22.C 22.D 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% -o.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. 447 448 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). 448 449 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 tl"'e 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 ofthe 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 requirem~nt 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. 449 450 February 8, 2012 Commission Memorandum Towing Permit Extension/Amendment No. 2 Page 9of9 • 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. Attach~ JMG/J F T:\AGEN 012\02-08-12\TowPennltAdmRulesRegsAmendmentNo2Feb082012.cme.docx 450 451 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 451 452 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 452 453 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 453 454 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 454 455 MAYOR APPROVED AS TO FORM & LANGUAGE & F"R ECUTION AMENDMENT NO.2 TO THE ADMINISTRATIVE RULES AND REGULATIONS FOR THE POLICE AND PARKING TOWING PERMITS (Dated February 8, 2012) * * * * 3. PERMIT FEEIMONTHL Y 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 20th day of the bilting 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. 1 455 456 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) sa..(en (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. TECHNOLOGICAL IMPROVEMENTS (1) Effective March 1, 2012. and by no later than the end of the first Permit year. or Februarv 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 2 456 457 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. 3 457 458 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. * * 4 458 459 * * 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 I 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 I 2012 2. Unlocking door 3. Dropping/hooking up linkage 4. Wheel lift equipment 5. Use of Dolly * H. Special and additional charges * * * 5 459 460 * * $150.00. effective March 1. 2013 $155.00. effective March 1. 2014 * * 2. Mileage charges (per mile): Maximum per tow: 3. Administrative fee: $9.00$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 Engageffow: $35.00 $40.001 effective March 1 I 2012 $47.00, effective March 11 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$30.001 effective March 11 2012 $32.001 effective March 1 I 2013 $33.00. effective March 1 I 2014 An After Hours Fee may be assessed for tows retrieved between the hours of 8:00 PM and 8:00 AM. $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 6 460 461 Consumer Price Index {CPI -All Urban consumers-US City average-All items- Base Period 1982-84 = 100) (CPil. 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 Citv 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 Citv 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. * * 7 461 462 * * 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 Citv'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 Cor 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 8 462 463 EXHIBIT 1 Beach Towing Services, Inc. ANALYSIS OF MAXIMUI'vl ALLO\VABLE TO\"*'lNG RATES City of Miami Beach .\1\ \LYSIS 1:--. Sl'PPORT OF ,\\IE!'\Dii'\G SE<.'TIOr"\' 22. EKTITI.En. ''\-li\:'\1\Jl'\1 .\LLO\\'.\RLF Ri\TI:s:· OF THE CITY OF \U.\\1113b\CII .\D\-IIr"\ISTR:\TIVE Rt.'U:S X\D RHil'l.\TI01\S FOR POLICE .\!\D P.\RKI!\ti TO\\lMi PER\IITS. ,\S RF\'IS!J) 0'\ .liT Y :~. ~1109 .. \:-..D .\\IFr"\DED o;-.-\I;\ Y II. 2011. BY II'\C'REASIMi TilE \I.\XI\It.\1 .\1.1.0\\'.\BI.E R.\TES TO Rl:ll.l{ T TIIF .\I'\1\L\I.l'O'\SniER PRICE ,J:\Df:X FOR Tlfl[: \ll.X\11-FORT L.\l.DERD.\Ll: RHiiOl\ SI:\CE 21UJ-I OR E.\RLil:R t .... ~ ,. .{ 464 ... Caceres & Gomez, CPA, P .L. 1035 S\'\' S":'th .-\xenue :\Iiami, florida 331:4 (305) 265-860"" . December 6, 2011 ·'r" Beach Towing Services, Inc. 1349 Dade Boulevard Miami Beach, Florida To The Board of Director's: Certified Public Accountants W'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 TQwing 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 l 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 Commission 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. ~ &-~;C.PIJ, P.L. Caceres & Gomez, CPA, P.L. 4&4 465 .1:;1. 0) ....... r·-·""'-""' __ w __ _ . . . . . . . .· ~--. ··=·=·--. -.... ~-'·-·=-== ·._: . ·.:::=.~=:~=:=:=.:::: :::;:;:::::.:;;:~:;:~::: =. --~-. ·.::..:=... -~= ..• :. ,·.: .. :. . <: :· ::~~~~~-:: -=~:::::::;:;~~::;:,::;_::: :::::::.::: ::::~~:::;:::::SJ::::::::::S:·:=~-=::·;:~:~:f:!!~~f-~::~:· l-··----~-·-······ 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. Class B Towing I Class C Towing I Class D Towing I To'!,':;;.: gar I Annual CPI% Fee Fee Fee Carrier increase 22.C • .,.. nota (e) I 22.D.-note (8) I 22.E. •• nollll (a} """~l'>'~~~~~~~",.'%$.~~~~~ ~~~~~~~~~~~~~~~~~~~~~~'$.K-$~¥.~~~m~®&~~~~"'-~\~~ ~»«M~*:z ... -.:~--·· ·· :::;_,s~~-t...:.:-:«:~~~\M:-..w;..<.:;-. .... -: .. ~-v:-»'-:-..'~~~~"'*--v~ .. -y.~-;.>,)1 ~~~~~~"%~~~~~ ... :-§~~*-.~'t..~w.::::-m?~:$~~'%.~~"::1~'lli:*~~~~~\~:::l~~~~ ~""'"'"-"""'"'"'i<"•"-;,-y...~.,\o'l,""-,.~·'"""~"'""""""'~~~"'-~h~~"'·"~hlo.-.;.'l.,""""""""""".''""'"'" ........ ~~ .... lc .. ~-.~-.. ~ ..... W~i~R.~&~Z:~~'£:~1!;r~"K&~ ... ~~41t~~~z•*~~l~a ~:..~--~ .. ~::.~::.~~~~':;:"~~~~~":~'::'i~~~-~~~;:::.-:::.::-::-;.":.:.."'""' ....... ~~';;~2"~~:::-::. .. :::.~::..~~ ~~~~m:.:~"-.:1~-::.~~~~~~~~~m;::~~~&~~~t~-=::::.:;."=-~;.~;;.~~~~~~~~~~~ :}).Y.-~~~~~"&...~~~~»..~~;x;:-~m~ .. :;;=:;x::;;'*<::~m&m..~~~~~'»~\."}~:»~~~ loCIAM.,.,.. Increase of Rates with Embedded CPI Increase $ 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 fPG 1.2) 165.00 $ 180.00 $ 190.00 $ 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 FV2005, since the January 14, 2004 determined increases were scaled in 2004 and 2005. b) For the periods FY2013 and FV2014, the CPIIncrease used was the 10 year average CPI, calculated at approximately 3.0% (rounded). Beach Towing Services, Inc. Consulting Engagement .1:;1. 0) 00 .. ·-.-:-.-:-.---.:-:·:-~-;.;:;.:..· r~-;;.s ... , .. *'**'''"''i'"''"''"'''*'··""'·'''"'·"""·"···"······;-·-O<···o·O<·O<···'<·"-'.,.,.,.,,,._ .... -... --.~~--·····---.. ........ ~ ................... .,.,.,.,._.,. ____ .... -.. .. __ _ ...................... , .• ,,., .• , ..... , ...•... ,.,, ... ;;.,,,,,.,.,,, ... ,""''"''""'"' :·<r• ::i~l 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. Year Mllea e Char e I Administrative I Dollies/Flat Bed I Labor to I Administrative I Miami Beach I Annual CPI% g g Fee Services Engage/Tow Charge City Fee Increase Sections: 22.H.1. 22.H.2. 22.H.3 . :a2Jid". 22.H.5.S.. NotAl (a) 22.K. Blended Increase of Rates with Embedded CPI Increase $ 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 -LSiEND-TABLU fiiG_Ul a) The analysis of CPI increases was applied as of FV2005, since the January 14, 2004 determined increases were scaled in 2004 and 2005. b) For the periods FY2013 and FV2014, the CPiincrease used was the 10 year average CPI, calculated at approximately 3.0% (rounded). Beach Towing Services, Inc. Consulting Engagement . ·,·,·=:.:=:=·=:~ .1:;1.~ 0) (Q .·.·:·.·.·.·.·,·.··:···:·:;:~·:·:·.·:·;~: .. ~·:~:o;;;.;_.;_{i;,~''&"'i~~-=~::~~. 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 Proposed CPI Increase to Averade Tow Fee y 1 Class A Towing ear Fee I Sections: I 22.8. Beach Towing Services, Inc. Consulting Engagement Mileage Charge 22.H.2. 5.00 6.00 6.00 .. '1.00 Administrative Labor to Fee -..,., ·'.::; Engage!Tow 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 Mia~i Beach I Average Tow <20ft L & <Sft W City Fee Fee Increase 22.A.(2)(b) $ 25.00 $ $ 30.00 $ $ 30.00 $ $ 36.00 $ RESOLUTION TO BE SUBMITTED 470