Summary of Observations for Parking Reviews PerformedMEMORANDUM
City of Miami Beach, 1700 Convention Center Drive, Miomi Beoch, Floriclo 33139, www.miomibeochfl.gov
OFFICE OF BUDGET AND PERFORMANCE IMPROVEMENT, Internal Audit
Tel: 305-673-7020, Fox: 305-673-7 519
TO:
VIA:
FROM:
DATE:
SUBJECT:
Jorge M. Gonzalez, City Manager
Kathie G. Brooks, Budget and Performance Improvement Director
James J. Sutter, Internal Audita~
January 30, 2009
SUMMARY OF OBSERVATIONS FOR PARKING REVIEWS PERFORMED DURING
FY 2007/2008
As part of our Annual Audit Plan, Internal Audit performs a variety of operational reviews tailored to
ensure compliance to policies and procedures, quality of customer service, identifying potential
operational efficiencies, and ensuring that revenues and City assets are properly recorded and
safeguarded with respect to the Coin Room, Attended Lots, and Meter Enforcement operations of the
Parking Department.
OVERALL OPINION
Although minor observations documented throughout all of Internal Audit's reviews of the Coin Room
and Attended Lot operations did not provide us with reason to believe that any exception noted
significantly affects the financial position of the City, there were opportunities noted to maintain and/or
improve operational efficiencies, closer adherence to documented policies and procedures, and
customer service.
Nonetheless, the enforcement capture ratio, calculated from our Meter Operation and Enforcement
reviews, was lower than industry benchmarks, reflected on the J.L. Donoghue Evaluation of Parking
System Revenue Control. This reduces parking revenues collected from both, the metered space and
the issued citations.
Additional details have been provided later on this memorandum, under the corresponding operation
review performed, for further details and reference.
FINDINGS/OBSERVATIONS
During fiscal year 2008, a total of four (4) Coin Room, four (4) Attended Lots, and ten (10) Meter
Operations and Enforcement reviews were conducted at different unannounced dates and times.
Specific details and observations can be found on each of the individual memorandums remitted to the
Parking Department throughout the year. Results from these reviews have been summarized, by
operation, as follows:
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008 January 30, 2009
COIN ROOM OPERATION REVIEW FINDINGS:
Coin Room operation reviews are performed quarterly in order to verify that controls, policies and
procedures, and revenue accountability are consistently applied to the daily meter revenue collections.
For this purpose, unannounced site visits were made on December 20, 2007, and on March 07'11
, May
13t11 , and August 26t11 , of 2008 to review the Coin Room's daily operations at the first floor of 309 23rd
Street. The following summarizes our findings and observations:
• Numbers of the security bands placed on the older master meter coin and currency canisters
were not being recorded and/or verified on a log sheet. These pre-numbered security bands
represent a control to ensure that the canister has not been opened or exchanged. None the
less, we recognize that on all the newer master meter machines fully operational there is no
need to place or record the pre-numbered security band on the master meter currency or coin
canisters (not feasible or needed for the newer mechanism). In order to address our
observations, Coin Room Staff have developed a log sheet to record the numbers on the
security bands placed on the older master meter machine models.
• Currency continues to jam inside the newer master meter currency canisters while in operation
thereby making the currency option inoperable. We have suggested a faster implementation of
a newer, more customized version of the currency canister that has been successfully tested by
the department greatly reducing the incidence of currency jamming. Replacing all current
master meter currency canisters with the improved version would not incur additional costs to
the City due to arrangements made with the vendor, as a result of the malfunctions experienced.
To address our comments, all the newer master meter currency canisters currently operating
have been replaced by the improved version; therefore reducing the incidence of currency
jamming to normal levels. Currency jamming could be experience due to wet bills and other
externalities independent to the machine mechanism.
• Areas surrounding the coin and currency counters were not kept completely clear to help
prevent potential hiding places for dropped or misappropriated revenues. Internal Audit has
recommended maintaining the areas surrounding the counters clear to prevent misplacements
of any revenues.
• Contractor's collection vehicles, as well as Brink's collection truck, were observed double
parking on 23rd Street hindering traffic flow. Continuing to double park represents a hazard for
pedestrians and other vehicles either parked, trying to incorporate to the traffic flow, or on
opposite lanes. We have recommended to better enforcing the loading zone, adjacent to the
Coin Room entrance, to prevent vehicles from parking for long periods oftime and using instead
the loading zone for the loading and unloading of the daily collection canisters. In addition, it
was recommended to prevent vehicles from parking in front of the Coin Room during early hours
on week days to provide parking for the Brink's Collection Truck. No feedback was received
with respect to this particular observation.
• New "Medeco" keys with upgraded security features, important for the verification of the integrity
of the collection process, should be implemented more quickly. These keys provide an accurate
count of the meters in which the key was used, which should equal the number of meters
audited and collected by the meter collectors. As a result, new Medeco keys have been
implemented throughout the City with the exception of some areas on the middle section of the
City and areas of the North End of the City. The parking department has expressed its
commitment to implementing the key City wide.
• All coin Room cameras were found to be fully operational and properly positioned to eliminate
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008 January 30, 2009
blind spots inside the coin room. The access card reader located outside the Coin Room door
was properly working as well.
• Displaced marbles were observed on the single meter coin collection canisters. This marbles
represent a security feature to ensure that the canister is not opened or flipped over to have
access to the coins collected. Another reason for misplaced marbles was that collection
vehicles were not properly set up to ensure that coin canisters do not fall when being
transported. Every time displaced marbles were observed, they were recorded by coin room
staff for consideration and possible corrective action; however, no additional control log is
maintained by the Parking Department in order to analyze trends regarding frequency and/or
patterns for similar incidents. As a result, we recommended maintaining a historical document
to record observations of misplaced marbles for trend analysis and better outfitting the
contractor's collection vehicles so that the coin canisters remain steady. To address our
observations, the department has discussed the importance of proper placement of the coin
canisters and mentioned that will implement a log sheet to record all incidents for historical and
trend analysis.
• During one of our reviews, we became aware of an incident where some single meter coin
containers seemed to have been intentionally forced to open by unidentified unauthorized
individuals. The incident was discovered by a meter technician during a routine maintenance.
The Parking Department investigated the incident and was unable to identify the individual or
individuals responsible. However, as a cautionary measure, the contractor was asked to replace
the entire collection crew. No other incidents of similar nature have come to our attention.
No other significant findings were observed during our reviews and the department continued to show a
commitment towards improved processes and efficiencies.
Management Response(s):
The Parking department has worked closely with Internal Audit to implement measures to address each
ofthe items mentioned above. The recommendations/measures noted above have been incorporated
successfully to the daily process.
The Parking department has completed the upgrade of the multi space pay stations and there has been
a significant reduction in the currency jams. Additionally, inside the coin room, the area surrounding the
currency counters has been cleared to prevent any potential hiding places.
The availability of parking in front of the coin room has been an ongoing challenge. The contractors
have been contacted regarding double parking and have been told to park in the loading zone.
The Parking Department continues to be committed to the completion of the installation of the Medeco
key system on the single space meters throughout the City. The process is nearing completion.
ATTENDED LOTS OPERATION REVIEW FINDINGS:
Attended Lots operation reviews, like Coin Room operation reviews, are performed quarterly to evaluate
operations and compliance with documented policies and procedures established by the City's Parking
Department. These reviews are completed on two phases: Un-announced secret observations and lots
walk through. All observations and/or irregularities are then reported via interoffice memorandum to the
Parking Department. Multiple visits on different dates to different attended lots were conducted during
FY 2008, which results were reflected in separate memorandums. The following summarizes the results
from our observations and walkthroughs included on those memorandums:
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008 January 30, 2009
• All observed vehicles who paid received a valid pre-numbered ticket when entering the lot.
• All tickets observed on the dash boards of parked vehicles concurred with the sequences of
issued ticket books.
• Payment options were provided to customers trying to find parking in some of the attended lots.
They could pay the flat fee, feed the meters, or display a valid master meter ticked on the dash
board. These options made it harder for the attendants to keep control of the lot capacity and/or
parked vehicle violations. In addition, proper enforcement would require more frequent visits
from parking enforcement to ensure that all occupied spaces were paid for through any of these
means. As a result, we suggested either attending the lot and not allowing any other options, or
not attending the lot and allowing regular metered parking.
• Un-reported parking violations were observed during our visits. As a result, we recommended
enhancing communication between the lot attendants and parking off-street supervisor in order
to inform Enforcement of such violations and ensure their capture.
• All ticket sale reconciliations were completed timely and any discrepancies were repaid to the
City by the contractor/contractor employees.
• Vehicles were observed parking on the Preferred Lot (P-Lot) located adjacent to the North of
City Hall displaying "CH" decals that did not displayed a permit number and in some cases, not
properly affixed to the vehicle's windshield. As a result, further testing was performed on seven
decals with the Parking Administration to determine their validity. After comparing the
description of the vehicles observed to the Parking Department's records, four out of the seven
decals tested did not match the department's records. As a result of our finding, the Parking
Enforcement Division was immediately notified and a citywide e-mail was sent reminding all City
employees to update their decals and records with the department in order to prevent being
cited.
Management Response(s):
The Parking Department ideally recommends attended pay and display lots have a single flat rate or
operate as metered facilities. This simplifies and enhances fiscal controls and audit processes.
However, a hybrid operation is required to meet the challenges and demands of the land uses each
facility serves. This accommodation is a reasonable effort to provide parking for those short term
parking users. This accommodation does serve the greater good from the perspective of serving all
users.
The Preferred Parking Lot serves many uses and has many challenges. Historically, this facility has
been a challenge for previous and current labor contractors. The Contractor is aware and does contact
a City Supervisor when a conflict arises. The Contractor has no way of knowing if the permit displayed
is valid or applicable to a specific vehicle. It is their responsibility to contact a City Supervisor for
direction.
The Parking Department will continue to stress the importance of controlling facilities. Vehicles do gain
access to lots prior to opening and the Contractor must conduct an inventory of vehicles present at the
time of opening.
METER OPERATION AND ENFORCEMENT REVIEW FINDINGS:
Meter Operation and Enforcement reviews are preformed throughout the year in order to confirm that
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008 January 30, 2009
the number of citations issued and observed divided by the number of violations observed is at least
25%, as recommended by the J.L. Donoghue Evaluation of Parking System Revenue Control. This ratio
is also known as the Enforcement Capture Ratio. Internal Audit also verifies whether meters are in good
working condition, ensures that there are no hazards to customers and/or their vehicles when using the
parking spaces. In addition, we verify that meters are not vandalized or painted with graffiti, and any
irregularities are immediately reported to the appropriate division of the Parking Department. Exhibit 1,
later attached reflects results from our reviews. In addition we have summarized results from our
reviews as follows:
• Using the results from our reviews we estimate that an approximately one (1) every three (3)
metered spaces occupied in the City is in violation and approximately one ( 1) out of thirty (30) of
those in violation and eligible for citation is captured. To better illustrate this relationship the
following chart was created using the results from our reviews:
RELATIONSHIP AMONG METERS OCCUPIED WITHOUT
VIOLATIONS, OCCUPIED WITH VIOLATIONS NOT CITED,
AND OCCUPIED WITH VIOLATIONS AND CITED
11
o # OF METERS
OCCUPIED WITHOUT
VIOLATIONS
llli #OF METERS
OCCUPIED WITH
VIOLATIONS NOT
CITED
D #OF METERS
OCCUPIED WITH
VIOLATIONS AND
CITED
Note: Total number of occupied metered spaces tested was 992.
• An average Enforcement Capture Ratio of 3.36% was observed to be less than desired industry
benchmark of 25%, as per the J.L. Donoghue Evaluation of Parking System Revenue Controls.
The following charts helps to illustrate the average capture ratio resulting from our reviews:
AVERAGE ENFORCEMENT CAPTURE RATIO
(II OFCITA T/ONS OBSERVED DIVIDED BYTOTAL VIOLATIONS OBSERVED)
3.36%
96.64%
Page 5 of 7
D %OF VIOLATIONS
OBSERVED WITHOLrr
CITATIONS
1iii1% OF VIOLATIONS
OBSERVED WITH
CITATIONS
(CAPTURE RATIO)
Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008
AVERAGE QUARTERLY ENFORCEMENT CAPTURE RATIO
(FISCAL YEAR 2008)
1st Qtr. FY 08 2nd Qtr. FY 08 3rd Qtr. FY 08 4th Qtr. FY 08
January 30, 2009
Actual observation results from our reviews are reflected on Exhibit11ater on this report for further
details.
Management Response{s}:
The Parking Department and Internal Audit will review the audit process in an effort to enhance existing
procedures in order to more accurately reflect the actual enforcement capture ratio.
CC: Tim Hemstreet, Assistant City Manager
Saul Francis, parking Department Director
Chuck Adams, Assistant Parking Director
F:\obpi\$AUD\INTERNAL AUDIT FILES\DOCOB-09\PARKING\SUMMARY OF PARKING REVIEWS.doc
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Internal Audit Memorandum
Summary of Parking Reviews Performed FY 2007/2008
CITY OF MIAMI BEACH
OBPI ·INTERNAL AUDIT
EXHIBIT 1
METER OPERATION AND ENFORCEMENT SUMMARY
From Nov. 2007 to Sept. 2008
METER
TYPE
MASTER
SINGLE
SINGLE
MASTER
SINGLE
SINGLE
11/30/07 FRIDAY 211 211 46 4 N/A 0 21.80%
5 2 2 0 0 1 100.00%
12/28/07 FRIDAY 88 84 34 2 0 4 4D.48%
03/06/08 THURSDAY 89 89 16 0 N/A 0 17.98%
22 13 5 0 5 10 38.46%
03/19/08 WEDNESDAY 61 46 10 0 4 2 21.74%
January 30, 2009
8.70%
0.00%
5.88%
0.00%
0.00%
0.00%
MASTER
SINGLE
03/19/08 WEDNESDAy l---::::475--t-4:::-:5,__+--"2,_,.3_1---::0:---t--'-N'="'/A-'--II---::::1_t---;5""'1.-z1 ;;-;1 °,.Yo-+-.........,o-:::.Oc:::-0°""Yo...........,
38 35 14 0 0 3 40.00% 0.00%
SINGLE 04/02/08 WEDNESDAY 11!i 104 31 0 8 2 29.81% 0.00%
MASTER 05/07/08 WEDNESDAY 88 88 44 0 N/A 0 50.00% 0.00%
MASTER
SINGLE
05/07/08 WEDNESDAy 1---"6-=:-8 --t-6-'::'8'--+--=2:.,:-9_1---:3,---t-.,;._N7/ A-'--II---::O-t-::4-::-2.'-:-6..,.,5°,.,-Yo-+---:::1 0-::.3:::-4::-:-%...........,
11 7 4 0 2 0 57.14% 0.00%
SINGLE
MASTER
SINGLE
MASTER
09/21/08 SUNDAY
09/21/08 SUNDAY
TOTAL· SINGLE METERS:
TOTAL· MASTER METERS:
OVERALL TOTALS:
OVERALL AVERAGES:
3 3 3 0 0 0 100.00% 0.00%
140 140 37 0 N/A 0 26.43%
57 55 29 2 0 2 52.73%
2 2 0 0 0 0 0.00%
400
643
1043
65
349
643
992
62
132
195
327
20
4
7
11
Page 7 of 7
19
0
19
2
24
1
25
2
37.82%
30.33%
32.96%
32.96%
0.00%
6.90%
0.00%
3.03%
3.59%
3.36%
3.36%