OIG No. 20-18: Audit of Beach Towing Services, Inc.Joseph M. Centorino, Inspector General
September 24, 2020
TO:
FROM:
RE:
Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
Beach Towing Services, Inc. - Towing Audit
OIG No. 20-18
Tremont Towing, Inc. - Towing Audit
OIG No. 20-19
Parking and Police Department Requested Tows Operational Audit
OIG No. 20-13
These three audit reports stemmed from a request made by the City Administration in November
2018 for an audit of towing operations, which involve two private towing companies, Beach
Towing Services, Inc. and Tremont Towing, Inc., as well as the City's Parking and Police
Operations, which regularly interacted with both tow companies. As the audit was nearing
completion, the City Commission voted in favor of terminating the internal audits at its June 5,
2019 meeting, and approval was granted for an outside audit of the tow companies to be paid by
the private tow companies. The audits were subsequently re-visited at the January 15, 2020
Commission meeting wherein it was acknowledged by the City Commission that the newly-
created Office of Inspector General, as an independent agency, had the authority to conclude the
audits or to take such further action within its authority as it deemed necessary.
Consequently, the audit was resumed and has resulted in the issuance of the three separate
attached audit reports that address the Office of Inspector General's testing performed relative to
Beach Towing Services, Inc., Tremont Towing Inc. and of the City departments, Parking and
Police, involved in the towing process. Although the work performed was reported separately,
there may be some overlap in the three reports, as noted shortcomings may involve more than
one of the parties involved.
These audits address a significant number of deficiencies in need of prompt corrective action
ranging from needed revisions in the negotiated Towing Permits, inaccurate City billings, poor
City oversight and the tow companies' unsatisfactory performance (especially by Beach Towing
Services, Inc.). The City Commission and the City Administration should strongly consider all the
identified deficiencies in these reports in determining the optimum path forward. The current
public tow structure is not functioning as well as it should, as tow customers' rights are not being
adequately enforced and it appears that there may be overcharging by the tow companies for
some services.
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6 Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Fax: 305.587.2401 • Hotline: 786.897.1111
Email: CityofMiamiBeachQIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
Joseph M. Centorino, Inspector General
TO:
FROM:
DATE:
AUDIT:
PERIOD:
Honorable Mayor and Members of the City Commission
Joseph Centorino, Inspector General
September 24, 2020
Beach Towing Services, Inc. - Towing Audit
OIG No. 20-18
October 1, 2017 to October 31, 2018
This report is the result of a request made by the City Administration in November 2018 for the
then-existing Office of the Internal Audit to verify compliance of Beach Towing Services, Inc.
(Beach Towing) with selected provisions in the City of Miami Beach Administrative Rules and
Regulations For Police and Parking Towing Permits (Towing Permits) that were in effect during
the audit period. An entrance conference meeting was held in December 2018 with Beach Towing
management to explain the audit process, to gain an understanding of their operations and to
obtain copies of any relevant documents.
Although the reviewed Towing Permits contain a myriad of points that require compliance from
Beach Towing, Office of the Inspector General (OIG) staff concentrated its testing primarily on
the accuracy of the City's monthly billings and the amounts charged to tested tow customers. To
help achieve these objectives, we reviewed the provided Standard Operating Procedures, work
performed, available body camera footage, documentation received from the City's Parking,
Police and/or Finance Departments, as well as copies of the Vehicle Storage Receipts received
from Beach Towing.
As this audit was nearing completion, the City Commission voted in favor of terminating the
internal audit at its June 5, 2019 meeting. At that time all internal audit work was immediately
terminated. This audit's termination was subsequently re-visited at the January 15, 2020
Commission meeting wherein it was decided that the newly created Office of Inspector General,
as an independent agency, had the authority to conclude the audit.
Consequently, the audit was resumed and has resulted in the issuance of three separate audit
reports, including this one. The other two audit reports consist of testing performed relative to
Tremont Towing, Inc. (Tremont Towing) and of the City departments involved in the towing
process. Although the work performed was reported separately, there may be some overlap in
the three reports, as noted shortcomings may involve more than one of the parties involved.
ACRONYMS
CAD = Computer Aided Dispatch
GVW = Gross Vehicle Weight (Rating)
LERMS = Law Enforcement Records Management System
VSR = Vehicle Storage Receipts
INTRODUCTION
Chapter 106, Article V, of the Miami Beach City Code, provides for the issuance of towing permits
for the towing of vehicles identified by the City's Parking and Police Departments as requiring
removal from public and private property, as well as vehicle impoundments. The same two tow
companies, Beach Towing and Tremont Towing, have continued to operate exclusively in Miami
Beach since at least their selection based on their response to Request for Proposals No. 1-91/94.
The negotiated towing permits for the two companies have been revised as needed in the
following years.
More recently, City Resolution 2015-28918 was adopted on February 11, 2015 approving the
issuance of new Towing Permits to Beach Towing and to Tremont Towing for a three-year term
commencing on March 1, 2015 and expiring on February 28, 2018. Both companies' terms were
extended for an additional one year through February 28, 2019 with the passage of City
Resolution No. 2018-30161.
Next, the City Commission on December 12, 2019, approved a one-year extension for both tow
companies of the same terms with a reduction of their charged automated teller machine fees.
Although this extension expired in February 2020, Beach Towing is currently continuing to operate
on a month-to-month basis under its terms.
OVERALL OPINION
Among other tests performed, OIG staff conducted a data analysis of all requested public tows
occurring between October 1, 2017 and October 31, 2018, whereby selected supporting
documentation as well as Parking and Police Department body camera footage for tested days
was reviewed to determine whether the towing fees charged by Beach Towing were appropriate.
Throughout the audit process, communication was also maintained with the towing company's
representatives to request additional information and/or documentation. However, the received
responses were not always sufficient to clarify the perceived shortcomings. Although the data
obtained from its sample results was not extrapolated to draw conclusions on a larger scale to
the population, the outcomes from the audit process stated in this report suggest that the tow
companies need stronger oversight.
OIG staff believes that the Towing Permits need revision to help improve accountability and to
better ensure that individuals are being properly charged for public tows. Examples include, but
are not limited to, placing more responsibility on the tow companies to justify charges to individuals
whose vehicles are towed, better defining listed terms, clarifying any identified ambiguities, and
more clearly defining the roles of all parties. Without making these and other needed revisions to
the Towing Permits, the deficiencies noted in this audit report will most likely continue and tow
customers will have little recourse.
It is recommended that future Towing Permits include language requiring each tow company to
provide the vehicle owner with photographic evidence of the impounded vehicle on a dolly/flatbed
and/or the vehicle's door opened at the tow location, to support any corresponding charges. This
requirement would permit the consumers of tow services to determine the validity of the charges
at the time they retrieve their vehicles and to question any discrepancies. Once the owner leaves
the scene, it becomes less likely that discrepancies will be noted or refunds retrieved, particularly
by out-of-town owners.
Furthermore, the Parking Department employees present for all Beach Towing's Parking
Page 2 of 30
Department public tows should function more as a consumer and City advocate, since they are
present at each tow location and can verify whether dollies/flatbed services were used or whether
the tow truck operators entered the vehicles on the Vehicle Storage Receipts (VSRs). Any
subsequently identified unsubstantiated differences should be promptly refunded to the consumer
and/or financial penalties imposed on the tow companies by the City.
For example, Broward County's Code of Ordinances Section 81/2- 16(b) titled "Violations of
Towing and Immobilization Regulations" lists several violations (charging more than the allowable
maximum towing and immobilization rate, failure to maintain records for the required period, failing
to accept all mandated methods of payment, among others) whereby the first violation results in
a $250 fine per violation, which increases to $500 for any repeat violations. Meanwhile, City of
Miami City Code Section 42-109 states that a "person who charges a vehicle owner a towing or
storage charge in excess of the rate described herein is liable to the vehicle owner for three times
the amount charged." Conversely, Miami Beach's Towing Permits and City Code remain
relatively silent on this issue, and there are currently minimal consequences for proven non-
compliance.
Although several sections of the Towing Permits stipulate the City's right to suspend or terminate
the permit if certain violations are incurred by permittees, enforcing such action could jeopardize
tow service in the City, as only two companies are presently authorized to operate within the City's
boundaries. Therefore, OIG staff believes that the City Commission should strongly consider the
possibility of expanding the tow market to include additional companies that would be required to
operate a tow yard within a designated number of miles from the City's boundaries. If approved,
this expansion would allow the City to impose a suspension or a termination of the agreement on
a company without adversely affecting the availability of tow services.
Another option to be explored is the possibility of in-sourcing the towing operations to be managed
by an existing City Department, or by a separately run department or other city-controlled entity.
Despite the potentially high set-up costs with purchasing/leasing the wreckers, hiring/training staff,
and preparing the location, there could be associated benefits including better control over
operations and increased City revenues, as well as more transparency and oversight capability.
The following shortcomings were noted during testing that require corrective action:
1. Of the 21 tows that charged the $40 dollies or flatbed services fee during the 14-day period
of October 9, 2018 through October 22, 2018 in which the Parking Department's reviewed
body camera footage, it was determined that eleven customers were properly charged, three
were inconclusive, and seven customers were overcharged. As a result, Beach Towing was
not fully complying with the August 2018 agreed upon terms, and these seven customers were
overcharged by a total of $280 ($40 x 7 = $280).
2. Beach Towing overcharged 55 Class B, 73 Class C and 12 Class D sampled customers on
hook-up fees of the 148 reviewed (140/148 = 94.59%) based on an analysis of their gross
vehicle weight ratings.
3. Beach Towing overcharged its customers on labor to engage/tow fees for 14 of 30 tows
sampled in October 2018, based upon a review of Parking and Police Department provided
body camera footage. As the tow operators were not observed entering the vehicles at the
tow locations, it was concluded that these 14 customers were overcharged by a total of $420
($30 X 14 = $420).
4. The amounts charged by Beach Towing for sampled October 2018 storage fees could not be
verified as their employees did not record the time/date indicating when the owners retrieved
the towed vehicles.
Page 3 of 30
5. The amounts charged and collected by Beach Towing for state sales taxes on administrative
and/or storage fees for Police Department requested tows does not appear to be justified,
based on a review of the State Statutes and Florida Department of Revenue Law Library
Technical Assistance Advisement (TAA)- 103463 with the City Attorney's Office.
6. Beach Towing did not maintain the required insurance coverage in accordance with Section
4 of the Towing Permits.
SCOPE, OBJECTIVES, AND METHODOLOGY
The scope of this audit was to determine Beach Towing's compliance with selected terms set
forth in the corresponding Towing Permits. The audit covered the period of October 1, 2017
through October 31, 2018, and it focused primarily on determining Beach Towing Services, lnc.'s
compliance with the following objectives:
• To determine whether vehicle owners were charged in accordance to the rates specified
in the Towing Permits and in conformity with the services received.
• To determine whether the required annual Business Tax Receipt Certificates were
obtained.
• To determine whether the required insurance coverage was maintained.
• Other procedures as deemed necessary.
This audit was conducted in accordance with the office's approved Standard Operating
Procedures. Those require that we plan and perform the audit to obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and conclusions based on our audit
objectives. We believe that the evidence obtained provides a reasonable basis for our findings
and conclusions based on our audit objectives.
The audit methodology included the following:
• Review of applicable provisions within the City Charter and Code of Ordinances, and City
Standard Operating Procedures;
• Interviews and inquiries of City and external companies' personnel in order to gain an
understanding of the internal controls (relative to the operations of the towing services),
assess control risk, and plan audit procedures;
• Performance of substantive testing consistent with the audit objectives, including but not
limited to examination, on a statistical and non-statistical sample basis, of applicable
transactions and records;
• Drawing conclusions based on the results of testing with corresponding recommendations,
and obtaining auditee responses and corrective action plans; and,
• Performance of other audit procedures as deemed necessary.
FINDINGS, RECOMMENDATIONS AND MANAGEMENT RESPONSES
The information provided below is relevant for the first four findings, as it represents the criteria
for the OIG's testing of sampled customer charges. Per Section 22 of the Towing Permits, Beach
Towing shall not charge more than the following maximum allowable rates established by the City
Permit (as same may be amended from time to time):
A The first eight hours of storage shall be without charge. Thereafter the following storage
Page 4 of 30
rates shall apply per day:
1 Inside-Interior
a Motorcycles or Scooters $12
b Any vehicle less than 20 feet in length and 8 feet in width $30
c Any vehicle over 20 feet in length $40
2 Outside-Exterior
a Motorcycles or Scooters $1 O
b Any vehicle less than 20 feet in length and 8 feet in width $30
c Any vehicle over 20 feet in length $30
3 Boat and Trailer (Owner's Unit)
a Unit under 20 feet in length $20
b Unit 21 feet to 35 feet in length $35
c Unit over 35 feet in length $45
B Tow Rate Class "A" Tow Truck and Class "A" Car Carrier $140
C Class "B" Tow Truck $145
D Class "C" Tow Truck $175
E Class "D" Tow Truck $200
F Tow Rate Class "B" or "C" Car Carrier $125
G Use of Contractor's Boat Trailer, any length, including storage, per day:
1 Trailer up to 18 feet in length $50
2 Trailer 18 to 30 feet in length $75
3 Trailer over 30 feet in length $150
H Additional charges:
1 Extra labor or extra waiting time $16.50 per hour after the first 30 minutes at the
scene and prorated after the 1st hour in 15 minutes increments.
2 Mileage Charges $6 per mile, maximum of $42 per tow.
3 Administrative fee $35 maximum per tow.
4 Dollies or Flatbed Services $40
5 Labor to Engage/Tow (this is not an automatic fee and may only be imposed when
access to enter the vehicle is required to properly engage/tow vehicle.) $30
6 After Hour Fee (may be assessed for tows retrieved between the hours of 8:00 PM
and 8:00 AM.) $30
A maximum administrative charge, different from the administrative fees mentioned above in
Section 22(H)(3), not exceeding $30 (and not as an automatic "add-on", but only when required
to comply with Florida Statutes) may be imposed by the permittee (Beach Towing) for services
such as the processing of paperwork, clerical work, or title research. Administrative charges are
defined as costs associated with verification of a vehicle identification number; search of vehicle
for ownership information; preparation of paperwork required by Florida Statutes; preparation and
mailing of the notification letter(s); and preparation of vehicles for auction (including notification to
owner or lien holder). Administrative charges shall not be imposed on vehicles with a "police
hold" until or unless the hold is removed. Storage for City (confiscated) vehicles with "police
holds" is free of charge to the City.
These maximum allowable rates mentioned above shall not apply to City of Miami Beach
residents (such exemption(s) for City of Miami Beach residents shall hereinafter be referred to as
the "Miami Beach resident discount"). To be eligible for this resident discount, individuals 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 permittee shall maintain
a log documenting discounts given to City residents pursuant to the Miami Beach resident
discount, which log shall be available for inspection and copying by the City Manager or his
Page 5 of 30
designee, upon request. The permittee shall prominently post a sign displaying the maximum
allowable rates for both City and non-City residents within the area(s) on its premises designated
for the vehicle owner or his agent to transact business.
Parking Department vs. Police Department Requested Tows
In total, the Law Enforcement Records Management System (LERMS) showed that there were
23,844 (90.96%) Parking Department requested tows and 2,371 (9.04%) Police Department
requested tows during the 13-month audit period. The Parking Department has established a
process whereby their Coin Room staff manually enter into monthly Excel spreadsheets a detailed
breakdown of all the individual fees charged to each towed vehicle owner by the tow company,
which includes, among others, storage fees, mileage charges, administrative fees, after-hours
fees, labor to engage/tow vehicle fees, and state sales taxes.
Conversely, the Police Department has not established a similar process for documenting the
individual amounts charged to each towed vehicle owner. Police Department's designated
employees enter a limited share of information from the Vehicle Storage Receipts (VSR) that are
received from the towing companies into the Computer Aided Dispatch (CAD) System for the
release of the vehicles before they are forwarded to the Records Section for filing. Shortly after
the month's end, a CAD System report is generated of all recorded Police Department requested
tows which is forwarded to the City's Finance Department for billing.
The detailed monthly Excel spreadsheets enabled OIG staff to perform a wide range of analyses
on the Parking Department's requested public tows. Similar information is not readily available
for the Police Department's requested tows, which only comprised 9.04% of the total tows.
Therefore, their tows were excluded from further analysis, but there is no basis upon which to
believe that analysis of those tows would differ from those of the Parking Department.
As the information in these Excel spreadsheets was entered through a manual data entry process,
a quality control test was performed to assess its reliability. All 350 tows performed by both tow
companies in a randomly selected 7-day period occurring between October 9, 2018 and October
15, 2018 were reviewed. The corresponding data present in 2,450 entry fields (7 fields x 350
tows) in the corresponding spreadsheets was compared to the applicable storage receipts and/or
invoices so that any identified inaccuracies could be quantified. When completed, it was
determined that only 16 of the entries contained errors or 0.65% (16/2,450), which means that
the accuracy rate was 99.35% ((2,450 - 16)/2,450). Based on these results, OIG staff relied on
the monthly spreadsheet data in performing various analyses for the audit period.
Alternating Tows
Parking Department management stated that Dispatchers are to manually alternate tow requests
between the two companies. If that practice is not followed at any given time, compensatory
measures are taken to ensure that an equal share of overall tow requests is maintained. For
example, if Beach Towing inadvertently received two consecutive tow requests, then Tremont
Towing is to receive two successive tows once the oversight is identified.
The 23,844 Parking Department requested tows recorded through the LERMS database were
analyzed for the 13-month audit period for which the corresponding results are presented in
Exhibit 1 below:
Exhibit 1
Results Number Percentage
Alternating: 23,474 98.45%
Page 6 of 30
Not Alternating: 369 1.55%
Last in List (not able to be compared/Tremont) 1 0.00
Total: 23,844 100.00%
Results for "Not Alternating"
Not Alternating - to the benefit of Tremont Towing: 169 0.71%
Not Alternating - to the benefit of Beach Towing: 200 0.84%
Total for Tremont: 11,907 49.94%
Total for Beach: 11,937 50.06%
Although no alternation occurred in 1.55% of the requested public tows, the subsequent
breakdown showed that this difference was typically corrected. In summary, Beach Towing
performed (on a net basis) 15 more public tows than Tremont Towing (11,937 - 11,907 = 30/2 =
15) during the 13-month audit period ((23,474/2) + 200-15 = 11,922 x 2 companies= 23,844
total). This immaterial 0.0629% difference (15/23,844) was not investigated further. Exhibit 2
below provides a graphical depiction of the percentage share of tow services assigned to each
company per month.
Exhibit 2
Share of Towing Services Provided - Percentage Comparison
Beach Towing Tremont Towing
60%
50.06% 50.06% 50.02% 50.25% 50.15% 50.04% 50.17% 49.97% 49.97% 50.28% 50.08% 50.09% 49.66%
Revenue Comparison
The information in the Parking Department's prepared monthly Excel spreadsheets included the
total amounts paid by each tow customer. The OIG staff used this information to perform a
revenue comparison (Exhibit 3 graphically and Exhibit 4 numerically) between the two tow
companies with the following findings:
• The average rounded amount paid by customers per tow was $255.45 which consisted of an
average of $268.60 for Beach Towing and $242.27 for Tremont Towing.
• Beach Towing's billings exceeded Tremont Towing's by $321,532 or by an average of 11.1%
for the 13-month audit period.
• The percentage difference decreased to 3. 7% for the last two months reviewed (September
2018 and October 2018) from 12.4% for the first 11 months (October 2017 through August
2018).
Exhibit 3
Page 7 of 30
Revenue Share - Percentage Comparison
Beach Towing Tremont Towing
52.8% 53.7% 54.0% 53,3% 52.4% 52.9% 53.2% 52.6% 52.7% 52.7% 51.7%
40%
30%
20%
10%
0%
Exhibit 4
Adjusted Total % Gap Between
Beach Towing Tremont Towing Grand Total Difference Revenues
- 2017
Oct $239,026 $213,975 $453,001 $25,051 11.7%
Nov $220,967 $190,249 $411,216 $30,718 16.1%
Dec $274,832 $234,259 $509,090 $40,573 17.3%
a) - 2018 a. ... Jan $249,688 $219,066 $468,754 $30,623 14.0% nJ c Feb $231,184 $209,961 $441,145 $21,224 10.1% 0
) Mar $344,078 $306,815 $650,893 $37,262 12.1%
3 Apr $248,444 $218,940 $467,384 $29,504 13.5% e a) May $244,312 $219,797 $464,109 $24,515 11.2% > a) Jun $230,744 $206,690 $437,434 $24,054 11.6% r-
Jul $265,823 $238,445 $504,268 $27,378 11.5%
Aug $233,677 $218, 266 $451,944 $15,411 7.1%
Sep $209,929 $202, 106 $412,036 $7,823 3.9%
Oct $213,566 $206,169 $419,735 $7,397 3.6%
Grand Total $3,206,271 $2,884,738 $6,091,009 $321,532
Average Difference for the 13-month period: 11.1%
Average Difference for the initial 11-month period: 12.4%
Average Difference for the last 2-month period: 3.7%
Average amount paid by Beach Towing's customers: $268.60
Average amount paid by Tremont Towing's customers: $242.27
Average amount paid by customers: $255.45
More specific testing was performed to determine the difference in the frequency of fees,
established in the Maximum Allowable Rates per Section 22 of the Towing Permits, such as
hook-up fees, storage fees, state sales taxes, dollies or flatbed services fees, labor to engage/tow
fees, after hour fees, etc. levied per tow. The data showed that both companies appear to be
relatively consistent with the frequency in which the fees were applied, except for the dollies or
flatbed services fee (61.81 % for Beach Towing compared to 9.79% for Tremont Towing) as shown
in Exhibit 5 below.
Page 8 of 30
Exhibit 5
Frequency of Additional Charges for Every Hook-up Fee
120%
100%
80%
60%
40%
20%
0%
Admin %
■Beach 99%
■Tremont 100%
I] L 111:J
Labor % Mileage% After-Hour % Dolly% Storage% Special%
99% 99% 62% 62% 18% 2%
99% 100% 61% 10% 14% 1%
Upon interviewing key personnel, reviewing the Parking and Police Department's body camera
footage, as well as other furnished supporting documentation, and covertly observing several
tows in January and February 2019, the following shortcomings were identified:
Finding #1: Customers Were Overcharged for Dollies or Flatbed Services Fees Not
Rendered at the Tow Locations
Dollies or flatbed services are required to transport all-wheel drive vehicles (so as not to damage
their transmissions), or when the vehicles' wheels will not roll properly for some reason. To help
compensate Beach Towing for the additional time needed to install the dollies or the additional
expense in using a flatbed, Section 22(H)4 of the Towing Permits allows for an additional $40 fee
to be charged to its customers in these instances. The following picture shows the usage of a
dolly on a vehicle being pulled by a tow truck.
Page 9 of 30
Exhibits 6 and 7 below provide a comparative analysis of the number of times that dollies or
flatbed services were charged for each month of the audit period by each tow company and the
corresponding amount of fees charged. They show that Beach Towing charged the $40 dollies
or flatbed services fee approximately 650% more frequently than Tremont Towing (7,179
compared to 1,106). However, the difference became much smaller in September 2018 (34
charges for Beach Towing vs. 29 for Tremont Towing) and October 2018 (62 charges for Beach
Towing vs. 46 for Tremont Towing). It was also noted that the frequency in which dollies or flatbed
services were charged decreased from an average of 644 times per month for October 2017
through August 2018 to 48 times per month for September and October 2018. This difference
represents an estimated $258,870 (see Exhibit 8 below) additional amount in dollies or flatbed
services charges, when the initial 11-month period (October 2017 -- August 2018) is compared to
the subsequent two-month period (September 2018 - October 2018).
Exhibit 6
Dollies or Flatbed Services Charges Utilization Comparison
1,000
900
800
700
s 600
E 500 5 400
200
8each Towing
Tremont Towing
604
106
Movember
2017
$70
74
December January
l s m , • gs •
» w I " I « I » I w
441
$8
34
29
62
46
+ -
Exhibit 6's vertical axis represents the number of times that dollies or flatbed services were charged. The horizontal axis is
the month in which the dollies or flatbed services were charged during the audit period. The numerical figures below each
month are the total number of times that dollies or flatbed services were charged during that month by each tow company.
Beach Towing is represented by the blue color bars; Tremont Towing is represented by the orange color bars.
Exhibit 7
Beach Towing Tremont Towing Total # of Charges Total Amount
# of Charges Amount # of Charges Amount
- 2017
October 604 $24,155 106 $4,200 710 $28,355
r November 570 $22,790 74 $2,940 644 $25,730
0 December 725 $28,985 96 $3,820 821 $32,805
d 0 - 2018 N
January 675 $26,980 112 $4,440 787 $31,420 de ::::> February 627 $25,065 69 $2,760 696 $27,825 z March 870 $34,755 121 $4,820 991 $39,575 6 o April 646 $25,810 81 $3,220 727 $29,030
he May 643 $25,659 108 $4,290 751 $29,949 0 - June 584 $23,335 101 $4,005 685 $27,340 a)
0 July 698 $27,880 105 $4,165 803 $32,045 hi 0 $17,615 $2,310 $19,925 c August 441 58 499 u September 34 $1,350 29 $1,155 63 $2,505
October 62 $2,480 46 $1,835 108 $4,315
Grand Total 7,179 $286,859 1,106 $43,960 8,285 $330,819
Exhibit 7 displays the number of dollies or flatbed services charged per month and the corresponding amounts charged to
tow customers. Amounts shown were compiled using solely dollies or flatbed services charged, $40 for non-residents and
$35 for residents, and do not include any other tow charges.
Page 10 of 30
Exhibit 8
(B) (C) Average
Average Impounded %of Dolly Charges
lmpounde Vehicles Charged to Impounded
d Vehicles with a Dolly Fee Vehicles (C/B)
Monthly Average from Oct 2017 through August 2018(11 months)
919 644 70%
Monthly Average from Sept 2018 through Oct 2018 (2 months)
(A) Average Monthly Number of Additional Dolly Charges When
Compared the Initial Eleven-Month Period (Oct/17- Aug/18) to the
Subsequent Two Month Period (Sep/18- Oct/18)
Estimated Additional Number of Dolly Charges for the Initial
Eleven-Month Period (Ax 11)
Dolly Rates (Nonresident/ Resident)
Estimated Additional Amount of Dolly Charges for the Initial
Eleven-Month Period, Applying Percentages for Residents and
Nonresidents and Abandoned.
( (6,555 X ( 94.49%+0.78%) x $40 + (6,555 X ( 3. 95% x $35))
848 48 6%
596
6,555
$40/$35
$258,870
Exhibit 8 shows the monthly averages of impounded vehicles and dollies or flatbed services (listed as dolly above) charged
and the percentage of the impounded vehicles that were charged dollies or flatbed services for the first eleven (11) months
(gold fill) and the final two (2) months of the audit period (light green fill). Additionally, the difference between the eleven (11)
month average dollies or flatbed services charged and the two (2) month average of the same fee, was calculated.
When contacted, Beach Towing's representative stated via email that the reasons for the
significant increase in dollies or flatbed services fees charged were due to the City's raising of the
streets and the tow company's loss of access to two of its three entrances/exits. He claimed that
the one remaining entrance/exit is subject to a sidewalk grade that causes vehicles to bottom out,
thereby causing damage, and that they had notified the City Administration of this issue since at
least 2016.
Furthermore, when asked for the reasons concerning the decrease in dollies or flatbed services
fees charged commencing mid-August 2018 through October 2018, Beach Towing's
representative responded as follows: "....on August 17, 2018 both companies voluntarily agreed
not to assess flatbed/dolly fees unless a City agent is present to notate the use of such equipment
at the originating site of the tow. As previously explained, dollies/flatbeds are not always used at
the initiation of the tow. This was a temporary and good faith proffer to avoid any confusion or
misperception regarding the assessment of such fees due to inaccurate reporting by the media.
It was both companies intention to address this temporary and voluntary practice with the City
Commission when the towing permits were renewed in December 2018, but the opportunity did
not present itself. It is both companies intention to revisit this matter with staff and/or the City
Commission in the near future. In sum, both companies are still using flatbeds/dollies consistent
with their historical practices; however, they are voluntarily waiving the flatbed/dolly fees for tows
where a City agent is not present to notate the use of such equipment".
OIG staff contacted the tow companies and City representatives to determine the date that both
parties mutually agreed to terminate this practice, but no documentation was received.
Consequently, it was assumed that they remained in effect at least until the December 2018 City
Commission meeting based on the above email.
Page 11 of 30
It was subsequently confirmed with the City's Public Works Department that no material changes
have been made to the street or the grade of the sidewalk since 2016 as the streets were raised
prior to that time. Since Beach Towing has visible cameras to record the activities occurring
outside their offices, OIG staff requested access to view this footage to determine if dollies or
flatbed services were provided for tested tows other than at the original tow location. However,
their representative in a February 4, 2019 email stated that "Neither company has any footage
responsive to your request nor are they required to."
OIG staff covertly observed towed vehicles on two different occasions in January and February
2019 in which it was noted that some vehicles with chassis low to the ground were successfully
being delivered to Beach Towing's facility without the usage of dollies or flatbed services.
Examples of some of these towed vehicles being delivered are shown in the following pictures
taken from the video recordings. The objective was not to determine whether dollies or flatbed
services were charged for these specific transactions, but whether they were needed to navigate
the dip and to safely enter the tow yard without damaging the vehicles.
Page 12 of 30
A Miami New Times article dated August 16, 2018, entitled "Beach Towing Tacks on Bogus
"Flatbed" Fees, South Beach Driver Says" discussed the apparent overcharging of the dollies or
flatbed services fee to a customer. A follow-up Miami New Times article dated August 23, 2018
entitled "Miami Beach Cracks Down on Bogus Flatbed Fees From Towing Companies"2
commented that the Parking Department management informed both tow companies to only
charge dollies or flatbed services fees if they were used in public view at the tow locations with a
City agent present.
To determine this statement's impact, a more detailed analysis was performed to determine the
frequency of dollies or flatbed services fees charged daily (see Exhibit 9), which showed a
decrease in charges after August 22, 2018. Furthermore, Exhibit 10 below shows a linear trend
analysis on the frequency of dollies or flatbed services fees charged daily for the days between
August 23, 2018 through October 31, 2018, or after the decrease was detected. It may be
observed that there is an upward trend on the number of dollies or flatbed services charged after
August 22, 2018. However, OIG staff could not ascertain whether all dollies or flatbed services
fees charged, prior and subsequent to the decrease detected, were or were not justifiable.
Exhibit 9
Dollies or Flatbed Services Charges
Beach Towing
tot
Exhibit 9 shows the number of dollies or flatbed services charged per day during the months of July, August and September
1 https://wyyy_miaminewtimes.com/content/print/iew/10632612
2 https://www.miaminewtimes.com/content/printView/10649222
Page 13 of 30
of 2018. As shown above, a significant decrease in dollies or flatbed services charges occurred after August 22%, 2018.
Exhibit 10
Dollies or Flatbed Services Charges
Beach Towing Linear (Beach Towing)
Exhibit 10 shows a linear trend analysis on the frequency of dollies or flatbed services charged per day from August 23%,
2018 through October 31, 2018. As shown above, an upward trend of dollies or flatbed services charged occurred.
Next, OIG staff reviewed all Parking Department tow impound documentation, as well as all tow
receipts for the randomly selected seven-day period of October 9, 2018 through October 15, 2018
( 178 tows). As only seven of these tested tows included the $40 dollies or flatbed services charge,
the subsequent seven-day period, covering October 16 through October 22, 2018, was also
tested, which increased the sample size to a total of 21 transactions. The objective was to
observe the corresponding Parking Department's body camera footage to determine whether
dollies or flatbed services were provided at the original tow location for charged customers
consistent with the terms agreed upon, as indicated in the August 23, 2018 newspaper article and
the tow company representative's email.
Of the 21 tows reviewed on body camera footage that charged the $40 fee for dolly or flatbed
services between October 9, 2018 and October 22, 2018, it was found that three were
inconclusive as the reviewed Parking Department body camera footage did not capture the entire
tow. For the remaining 18 tows, it was determined that 11 were properly charged, and that seven
were overcharged as dolly or flatbed services were not used at the tow location. As a result, it
was concluded that Beach Towing was not fully complying with the August 2018 agreed upon
terms and these seven customers were overcharged by $280 ($40 x 7 = $280).
Recommendations:
The City Commission and City Administration should consider that the next Towing Permit include
the following provisions:
a. Preclude the towing companies from billing for dollies or flatbed services unless they were
used at the tow location and the VSR is noted as such by the Parking Enforcement Specialists.
b. Require that during the vehicle retrieval the customer be provided, along with the invoice, a
picture of the vehicle on a dolly or a flatbed whenever a charge for such service is included,
as well with any VSR submitted to the Parking or Police Departments as part of the City's
billing process by the towing companies. The picture should show the vehicle license plate
for accurate identification.
c. Allow for financial penalties that either the City and/or the vehicle owners could levy against a
towing company in the event of verified overcharges, similar to Broward County's Code of
Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109.
Page 14 of 30
Beach Towing's Response:
See Appendix B
Finding #2: Customers Overcharged by Incorrectly Rating the Towing Weight Classification
Section 22(B) through (E) of the Towing Permits details the hook-up fees for the different classes
of vehicles ranging from $140 for Class "A" tows to $200 for Class "D" tows. In summary, the
Towing Permits allow the applicable tow company to bill hook-up fees based on the class of the
wreckers/tow trucks and/or car carriers as defined in Section 11 of the Towing Permits below:
A. Class "A" wreckers and slide back car carriers - commercially manufactured unit, with a rated
capacity of not less than 10,000 pounds, GVW (gross vehicle weight)
B. Class "B" wreckers - commercially manufactured units, with a rated capacity of not less than
18,000 pounds, GVW
Class "B" slide back car carriers - commercially manufactured unit, with a rated capacity of
not less than 20,000 pounds, GVW
C. Class "C" wreckers - commercially manufactured unit, with a rated capacity of not less than
36,000 pounds, GVW
According to the website automotozine.com3, the gross vehicle weight (also known as gross
vehicle weight rating) is explained as "...a safety regulation used to prevent the overloading of
vehicles. It's the maximum safe operating weight of a truck, including its net weight, plus driver,
passengers, cargo, and fuel. The gross vehicle weight rating doesn't change after a manufacturer
determines it for a vehicle".
Given this information, OIG staff found it difficult to believe that the intent of the Towing Permits
is to allow the tow companies to charge the customer higher rates when they use a larger wrecker
than is needed to tow a vehicle. In other words, the OIG position is that it would only be proper
to charge the customer hook-up fees of $200 (Class "D") on an occasion when a Class "D"
wrecker is needed to tow a vehicle with a GVW requiring the larger wrecker, rather than charge
the higher fee when a smaller wrecker would have been appropriate for the tow.
A legal opinion from the City Attorney's Office was requested to confirm the OIG position on this
issue, and the following response was received: "The maximum allowable rate to be charged by
Beach Towing Services, Inc. or Tremont Towing, Inc. (collectively, the "Towing Permittees") for
any vehicle tow must be based upon, and solely depend on, the Gross Vehicle Weight ("GV")
of the actual vehicle being towed, irrespective of the classification of the wrecker ("A", "B'', "C" or
"D") which is utilized for the towing of said vehicle by the respective Towing Permittees.
In other words, pursuant to the Towing Permits, there is no prohibition on the Towing Permittees
employing a wrecker with a rating capacity greater than necessary to accomplish the tow of a
particular vehicle. However, should the Towing Permittees utilize a wrecker with a rating capacity
greater than necessary to effectuate the tow of a particular vehicle (when a wrecker of a lesser
rating capacity could safely carry out such tow), then the affected customer should only be
3 https://automotozine.com/gross-vehicle-weight-rating-explained/
Page 15 of 30
charged based upon the rates set forth in the Towing Permits for the lowest rated (least
expensive) wrecker class that could have been utilized to accomplish the tow based upon the
towed vehicle's GVW."
In addition, OIG staff made the following additional assumptions:
a. Class "D" wreckers are not specifically addressed in the Towing Permits; therefore, OIG staff
assumed they would contain a rated capacity of more than 36,000 pounds (the maximum
weight limit for Class "C" wreckers).
b. As the rated capacities for Class "B" wreckers and side back car carriers was slightly different
(18,000 vs. 20,000 pounds respectively), that any vehicles whose GVW was more than 10,000
pounds but did not exceed 18,000 pounds would be charged Class "B" hook-up fees. If the
vehicles GVW exceeded 18,000 but not 36,000 pounds, then it would be charged Class "C"
hook-up fees.
Testing was performed on the Parking Department's requested tows during the audit period to
determine Beach Towing's compliance with Section 22(B) through (E) of the Towing Permits. As
such, OIG staff identified 11,614 Parking Department requested tows billed hook-up fees by
Beach Towing according to the Parking Department's Excel monthly spreadsheets. Although
these tows were not listed as Class "A", "B", "C", or "D" on these spreadsheets, all tested tows
were systematically classified based on their corresponding fees charged to non-residential
customers (ex. $140 = Class "A, $145 = Class "B", $175 = Class "C" and $200 = Class "D").
Exhibit 11 below shows the number and percentage of Parking Department requested tows
performed by Class for each towing company during the audit period based on the Excel
spreadsheets listed data.
Exhibit 11
Beach Towing
Class A
Class B
Class c
Class D
Tremont Towing
Count of Class % of Class Count of Class % of Class
Breakdown Breakdown Breakdown Breakdown
11,067 95.29% Class A 11,250 99.61%
459 3.95% Class B 28 0.25%
74 0.64% Class c 5 0.04%
14 0.12% Class D 11 0.10%
11,614 100.00% Grand Total 11,294 100.00% Grand Total
This analysis solely included tows in which hook-up fees were charged to customers according to the Parking Department's
provided monthly Excel spreadsheets. Any tows performed where hook-up fees were not assessed were excluded from
analysis, which included tows of abandoned vehicles, instances where the tow documentation was apparently not submitted
by the tow company as no information was recorded in the spreadsheets, and any tows performed on a "no-charge" basis
which included towing services provided for City vehicles, crime victims, etc.
As shown above, Beach Towing performed 11,067 Parking Department requested Class "A"
vehicle tows, which represented 95.29% of its total tows during the 13-month audit period. In
addition, Section 22 of the Towing Permits states, "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) ..." Consequently, the $140 Class "A" tow fee is a maximum allowable rate and not
a fixed rate, so there is not known material risk of overcharging based on gross vehicle weight as
all tows assessed hook-up fees greater than $140 would be classified as either Class "B", "C", or
"D" tows. As there are not known associated risks in Class "A" tows for the City and the customer,
Page 16 of 30
no additional testing was performed in this area. Instead, OIG staff's focus was on the tows in
which the hook-up fees charged exceeded $140, which represented 4. 71 % of all the reported
Beach Towing tows.
Each sampled vehicle's make and model was obtained from the vehicle identification number
and/or license plate number listed on the VSR as well as any attached supporting documentation.
Next, the gross vehicle weight ratings were obtained from internet searches of the manufacturers'
websites for these specific vehicles, which was compared to the gross vehicle weight limits
specified in Section 11 of the Towing Permits. As a conservative measure, the vehicle's most
comprehensive trim available (the largest engine, extended cab, 4x4, etc.) or the highest gross
vehicle weight ratings listed for each of the tested vehicles was always selected.
Appendix A located at the end of this report lists the tested vehicles for each Class and their
corresponding impound numbers, make and model, gross vehicle weight ratings, etc. Due to its
large size (459 Class "B" + 74 Class "C" + 14 Class "D" = 547 total), OIG staff randomly sampled
60 Class "B" hook-up fees and reviewed all 74 Class "C" and all 14 Class "D" hook-up fees for
further analysis. In summary, the following results were obtained:
a. Of the 60 randomly sampled Class "B" charged tows, there was insufficient information on the
VSRs for two of the tested vehicles to determine the make and model classification needed
to accurately determine their GVW. For the remaining 58 vehicles, it was concluded that three
were correctly charged, as their GVW was more than 10,000 but less than or equal to 18,000
pounds, and that 55 were overcharged, as their GVW was less than or equal to 10,000
pounds.
b. Of the 74 Class "C" tows analyzed, the GVW for one Lincoln Town Car limousine could not
be accurately determined. All 73 of the remaining Class "C" tows were found to have been
overcharged as none of the vehicles researched contained GVW ratings more than 18,000
pounds but less than or equal to 36,000 pounds.
c. Of the 14 Class "D" vehicle tows analyzed, there was insufficient information on three VSRs
to accurately determine their GVW. Of the remaining 11 Class "D" vehicles, ten tows were
deemed to have been overcharged as their vehicles GVW was equal to or less than 36,000
pounds and one was correctly charged.
Lastly, the entire population of tows listed in the Parking Department's Excel monthly
spreadsheets was reviewed, and it was determined that four tows were charged hook-up fees
that exceeded the $200 Class "D" maximum allowable rate established in Section 22 of the
Towing Permits. Inquiries were made to Beach Towing's representative, who provided the
explanation that one tow customer was charged a lump sum $219 fee, and that the remaining
three tows were erroneously billed $300 each or $100 more than the maximum allowable rate
($100 x 3 customers = $300). These four tows were also included in the analysis above
concerning the vehicle's gross vehicle weight ratings.
Recommendations:
The City Administration and/or City Commission should consider implementing the following
recommendations to improve customer knowledge and to increase Beach Towing's
responsibilities:
a. The Towing Permits, the Towing Bill of Rights and the signage displayed at Beach Towing's
offices should more clearly define the applicable hook-up fee charges and the corresponding
GVW ratings so that tow customers can better understand which fees are valid for their
vehicle.
Page 17 of 30
b. The burden of proof should be on the tow companies to prove that any charges other than
the Class "A" hook-up $140 fee are valid rather than leaving it to less informed consumers to
figure out the charges.
c. The Towing Permits should allow for financial penalties that either the City and/or the vehicle
owners could levy against the tow companies in the event of verified overcharges, similar to
Broward County's Code of Ordinances Section 81/2 - 16(b) and City of Miami City Code
Section 42-109.
Beach Towing's Response:
See Appendix B
Finding #3: Customers Were Overcharged for Labor to Engage/Tow Fees Not Rendered
Section 22(H)(5) of the Towing Permits states that the $30 labor to engage/tow fee "... is not an
automatic fee and may only be imposed when access to enter the vehicle is required to properly
engage/tow the vehicle." This fee is to be charged when the tow truck operator needs to enter
the vehicle to disengage the emergency brake or straighten the vehicle's wheels to facilitate
towing. Consequently, the tow truck operator would have to enter the vehicle at the tow location
to facilitate the tow and to avoid damaging the vehicle.
As the 21 reviewed Parking Department transactions in finding #1 included fees for labor to
engage/tow, as well as service charges of use of dollies or flatbeds, OIG staff examined available
body camera footage to determine if Beach Towing's tow operators entered the vehicles at the
tow locations. In doing so, it was found that six tows were inconclusive, as the body camera
footage did not accurately capture the entire tow. Of the remaining 15 tows observed during the
14-day period of October 9, 2018 through October 22, 2018, it was concluded that four customers
were properly charged labor to engage/tow fees as the tow operators were observed physically
entering the vehicles, and 11 customers were overcharged because no entry of their vehicles
occurred. Therefore, it was concluded that Beach Towing was not fully complying with Section
22(H)(5) of the Towing Permits terms and that these 11 customers were overcharged by a total
of $330 ($30x 11 = $330)
A similar review of the Police Department's tow impound documentation, as well as all invoices
for the seven-day period of October 9, 2018 through October 15, 2018 was performed. Upon
reviewing the body camera footage retained by the Police Department for the corresponding nine
tows, it was found that six were inconclusive, as one could not tell if Beach Towing staff physically
entered the vehicles at the tow locations. Of the remaining, it was determined that all three were
overcharged, as the tow operators were not observed entering the vehicles at the tow locations.
As a result, each of these three (3) customers was overcharged by $30 for a total of $90 ($30 x 3
= $90).
In sum, 30 Parking and Police Department tows with body camera footage were reviewed to verify
whether the $30 labor to engage/tow fees were properly charged to tested October 2018 tow
customers. Of these tows, 12 were inconclusive as OIG staff could not determine whether the
tow operators entered the vehicles at the tow locations. For the remaining 18 tows, it was
concluded that four were properly charged and 14 were overcharged by a total of $420 ($30 x 14
Page 18 of 30
= $420).
OIG staff also analyzed how often the $30 labor to engage/tow fee was charged during the 13-
month audit period based on the data in the Parking Department's monthly Excel spreadsheets.
The results of this analysis showed that Beach Towing charged this fee for 11,441 of the 11,614
tested tows occurring between October 1, 2017 and October 31, 2018 (98.51%), which resulted
in $343,313 being charged to their tow customers (see Exhibit 12 below).
Exhibit 12
Labor to Engage/Tow Fees Labor Charges Analysis
Count of
Hookup Fee Labor Charges % of Labor
Charges
$ Labor
Charges
2017 October 855 843 98.60% $25,285
November 769 755 98.18% $22,735
December 956 945 98.85% $28,605 -------- - 2018 January 876 869 99.20% $26,055
February 822 812 98.78% $24,313
March 1,211 1,191 98.35% $35,690
Apri I 880 872 99.09% $26,155
Ma Y 869 855 98.39% $25,625
June 847 839 99.06% $25,140
July 957 941 98.33% $28,205
August 886 865 97.63% $25,935
September 834 817 97.96% $24,485
October 852 837 98.24% $25,085
Grand Total 11,614 11,441 98.51% $343,313
Exhibit 12 shows the number of labor to engage/tow fees (abbreviated as labor charges above) charged relative to the
number of hook-up fees assessed, their corresponding percentage, and the dollar amounts associated with the total number
of labor charges per month and cumulatively for the audit period October 1, 2017 through October 31, 2018. The maximum
allowed labor charge is $30 per instance, which is the most frequent recorded amount; however, actual individual charges
occasionally varied from this amount.
A closer review of the labor fees charged to engage/tow, as listed on the Parking Department's
Excel monthly spreadsheets, found that seven tows exceeded the $30 maximum allowable rate,
which were subsequently emailed to the Beach Towing representative for an explanation on
February 1, 2019. On February 6, 2019, satisfactory explanations were received for four of these
tows; however, the explanations provided for the remaining three were insufficient to clearly
determine the reasons for the overcharges. OIG staff determined that the labor fees on these
three tows were overcharged by an estimated $70.50.
In response, the towing company's representative stated that these amounts also included
"special and additional charges" allowed under Section 22(H)(1) of the Towing Permits. This
section states that any extra labor or extra waiting time may be charged at a rate of $16.50 per
hour, after the first 30 minutes at the scene and prorated after the 1st hour in 15 minutes
increments.
The three (3) explanations were considered insufficient because they were incorrectly calculated
based on the Towing Permits' maximum allowable rates and the information listed. For example,
the representatives' response for the vehicle with impounded number 148580, for which a labor
charge of $60 was made, is "The labor fee did not exceed the maximum allowable rates. A $30
labor fee was charged. In addition to the $30 labor fee, additional labor in the amount of $33 was
charged pursuant to Section 22(H)(1). The tow took a total of 1 hour to perform, including
disassembling the drive shaft at the point of the tow, and reassembling the drive shaft".
Page 19 of 30
In addition to the fact that the implied total amount charged in the response does not match the
actual labor amount charged ($30 + $33 "I- $60), it is stated in Section 22(H)(1) that the charge for
one (1) hour of extra labor or waiting time is $8.25 (1-0.5 hours = 0.5 hour x $16.50) if the first
half hour is discounted. Thus, OIG staff determined that the labor to engage/tow fee on these
three tows was incorrectly billed in that customers were charged fees ranging from a low of $60
to a high of $90.
Recommendations:
The City Commission and City Administration should consider that the next Towing Permits
contain provisions as follows:
a. Preclude the towing companies from billing for labor to engage/tow fees unless the VSRs are
noted as such by the Parking Enforcement Specialists present at the tow locations.
b. Require that the customer be provided during the vehicle's retrieval, along with the invoice,
one or more picture(s) of the vehicle with the door open when this charge is billed, as well
with the VSR when the document is submitted to the Parking or Police Departments by the
tow companies as part of the City's billing process. The corresponding picture(s) should show
the vehicle's license plate for accurate identification.
c. Include financial penalties, that either the City and/or the vehicle owners could invoke against
the tow companies, in the event of verified overcharges, similar to Broward County's Code of
Ordinances Section 81/2 - 16(b) and City of Miami City Code Section 42-109.
Beach Towing's Response:
See Appendix B
Finding #4: Insufficient Information to Assess Storage Fees
Section 22(A) of the Towing Permits provides that the first eight hours of storage shall be without
charge and then lists the daily storage rates based on the type and size of vehicle. On average,
Beach Towing charged customers' storage fees for 18% of its tows as most vehicles were
retrieved within eight hours. Upon reviewing the furnished Beach Towing documentation, OIG
staff could not determine whether the charged storage fees were applicable as their employees
typically did not record the time/date that the customers retrieved the vehicles.
Recommendations:
The City Administration and City Commission should consider that the next Towing Permits
include the following provisions:
a. Require that an automated time/date stamp be used rather than manual notations to help
reduce the possibility of errors or manipulation, and that this information be made available to
the City upon request. In the interim, Beach Towing staff should either use military time or
denote the time as AM or PM to facilitate storage fee calculations.
b. Require that customers receive copies of their VSRs, which contain the times that their
vehicles were towed, so that they can accurately determine whether any storage fees charged
Page 20 of 30
are appropriate. The tow companies should have the responsibility to fully explain any
additional charges to the customer before they are billed and make payment.
Beach Towing's Response:
See Appendix B
Finding #5: Sa/es Taxes Charged and Collected on Police Department Requested Tows
Appear to be Inappropriate
A review of the supporting documentation provided for Beach Towing's 178 sampled tows,
occurring between October 9 and October 15, 2018, found that they were consistently charging
7% state sales tax on any amounts collected for administrative and/or storage fees. OIG staff did
not analyze Beach Towing's monthly state sales tax returns to ensure that the correct amounts
were remitted as this report focused only on public tows and any sales tax monies paid would
also include any private tow taxable amounts, precluding a segregation of sales tax amounts
charged on public tows.
However, a review of the State Statutes and ancillary documentation such as T AA - 103463°
found that the administrative and/or storage fees are not taxable for vehicles lawfully impounded
for legal reasons. In subsequent conversations with the City Attorney's Office, it appears that the
Police Department requested tows are not subject to state sales tax based on the known
information. Although the exact amount collected in state sales taxes is not known as the Police
Department did not create and maintain monthly Excel spreadsheets like the Parking Department,
a portion may have been unnecessarily charged and collected.
Recommendations:
Beach Towing should confirm with the State of Florida before taking any definitive action;
however, OIG staff's position is that the 7% state sales tax should not be charged on
administrative and/or storage fees for vehicles lawfully impounded for legal reasons (Police
Department requested tows). If subsequently confirmed by Beach Towing with the State of
Florida, they should discontinue charging and collecting sales tax on these tows, but until then all
amounts collected should be timely and completely remitted.
Beach Towing's Response:
See Appendix B
Finding #6: Deficiencies on the Required Insurance Coverage
Section 4 of the Towing Permits specifies the required insurance coverage to be in full force and
effect at all times throughout the term. A copy of Beach Towing's current insurance policy was
requested and promptly received from the City's Parking Department. As it had not been
previously reviewed by the City's Risk Management Division for sufficiency, OIG staff met with
4 https://revenuelaw. floridarevenue.com/LawLibrary Documents/2011/09/TAA-103463
Page 21 of 30
that Division on January 31, 2019, which led to the following deficiencies being noted:
• Evidence was not provided to the City indicating that they had either obtained the required
workers' compensation coverage or submitted a document stating that they have four or less
employees and are not required to have this coverage.
• The City is not named as an additional insured in the "Description of Operations/
Locations/Vehicles" section.
Recommendations:
Beach Towing should always maintain the required insurance coverage in accordance with the
Towing Permits. The coverage deficiencies listed above should be promptly corrected. Also, the
Parking Department Director and/or the Police Chief should instruct their designated staff to
periodically verify that Beach Towing maintains the required insurance coverage in accordance
with the Towing Permits.
Beach Towing's Response:
See Appendix B
RECENT UPDATES
As any identified deficiencies plus the Parking Department's Excel spreadsheets containing the
total tow population during the audit period had been previously forwarded to the auditees and
two exit conferences to discuss the audit findings had already been held during 2019, a third exit
conference was not deemed necessary. Instead, the draft reports for both Tremont Towing and
Beach Towing were emailed to their shared attorney, Rafael Andrade, on July 15, 2020 in which
both companies were given 30 working days, or until August 27, 2020, to provide their
management responses in compliance with to Section 2-256(h), City of Miami Beach Code.
Mr. Andrade then requested OIG's supporting documentation related to findings 1, 2, and 3 in
emails sent between the 18" and 20" of August. The OIG provided the requested information to
the City Clerk's Office on August 24, Mr. Andrade was notified via email on the same day that
the eight CDs containing the requested information were available from the City Clerk's Office upon receipt of the payment of the cost of preparing the information. As of August 26, the
information still had not been retrieved from the City Clerk's Office, but the tow companies'
attorney was requesting additional time until September 30. The City's Inspector General agreed
to extend the time to provide responses until September 7at 5pm.
In regard to finding #2, Mr. Andrade not only requested the supporting information for the 60
randomly sampled Class B tows, but also for the remaining 399 Class B Beach Towing tows that
were not tested by OIG staff, and as such, had not been addressed in any of the three draft towing
reports. Nonetheless, OIG staff identified and submitted on September 7" all known information
for these 399 Class B tows, including the impound numbers, to Mr. Andrade. As a courtesy, the
City's Inspector General extended the deadline for responses to both tow reports to September
9"" at 5pm.
Mr. Andrade requested an extension to at least September 16" to perform research and test these
additional 399 Class B tows, which was declined by the Inspector General on September 8". Mr.
Andrade provided a response on September 9" for the Beach Towing audit in which he claimed
Page 22 of 30
that the Inspector General failed to disclose to the City Commission that on or about December
4, 2019, he had referred the Beach Towing audit to the Miami-Dade State Attorney's Office (SAO)
for criminal investigation, and that inasmuch as Beach Towing is under criminal investigation it
would refrain from addressing the allegations until the SAO completes its investigation. The
response is attached to the Beach Towing audit report. Mr. Andrade did not respond on behalf
of Tremont Towing.
Reviewed by:
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Completed by:
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Date
Norman Blai Chief Auditor
s7/2./2o
Date I I
cc: Jimmy L. Morales, City Manager
Eric Carpenter, Assistant City Manager
Saul Frances, Parking Director
Richard Clements, Police Chief
John Woodruff, Chief Financial Officer
Michael Smith, Human Resources Department Director
Page 23 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - September 24, 2019
Appendix A. Tested vehicles for each tow class assigned and their corresponding impound numbers, make and model, gross vehicle weight ratings, etc. (Finding 1)
] Green = Overcharged Class B Tows [ [ Blue = Overcharged Class C Tows E ] Orange =Overcharged Class D Tows
#Tows #Tows Impounded Vehicle Gross Weight Hookup Fee Tow Class Assigned (Based on
Overcharged Tested Impounded Number Date/Time Impounded From Location Vehicle Brand/Model Vehicle Year Rating (GVWR) lbs. Charged Hookup Fee Charged)
1 144337 03/26/18 800 MICHIGAN AVE, Miami Beach Hummer Hl 1992-2006 10,300 $145 B
2 128828 10/09/17 300 24TH ST, Miami Beach Ford Transit 350 2016 10,360 $145 B
3 128798 10/09/17 9 ISLAND AVE, Miami Beach Ford F350 2017 14,000 $145 B
4 138805 03/23/18 400 16TH ST BLK, Miami Beach Kenworth T680 2015 52,350 $200 D
1 5 129304 10/18/17 8300 HAWTHORNE AVE, Miami Beach Ford Expedition Limited 2010 7,900 $145 B
2 6 129378 10/19/17 100 LINCOLN RD, Miami Beach Chevrolet Express 1500 2008 7,200 $145 B
3 7 129441 10/20/17 1900 BAY RD, Miami Beach Land Rover Range Rover 2017 6,945 $145 B
4 8 129736 10/25/17 1600 WASHINGTON AVE, Miami Beach Mercedes-Benz G550 2013 7,055 $145 B
5 9 129952 10/29/17 1900 BAY RD, Miami Beach Mercedes-Benz GL63 AMG 2014 7,165 $145 B
6 10 130231 11/03/17 1600 ALTON RD, Miami Beach Jeep Grand Cherokee Laredo 2017 6,500 $145 B
7 11 130583 11/09/17 200 23RD ST, Miami Beach Ford Transit 150 2015 8,600 $145 B
8 12 131167 11/20/17 1400 14TH ST, Miami Beach Ford F250 2003 8,800 $145 B
9 13 131930 12/05/17 100 20TH ST, Miami Beach Toyota Tundra 4 Door 2015 7,000 $145 B
10 14 131938 12/05/17 300 23RD ST, Miami Beach Ram 1500 SLT 2013 6,800 $145 B
11 15 132418 12/12/17 1700 PURDY AVE, Miami Beach Nissan NV 1500 2013 8,550 $145 B
12 16 133030 12/22/17 1130 OCEAN DR, Miami Beach RAM 1500 2017 6,900 $145 B
13 17 133520 12/30/17 2100 WASHINGTON AVE, Miami Beach Chrysler Pacifica Touring 2017 6,005 $145 B
14 18 133849 01/04/18 1423 COLLINS AVE, Miami Beach Chevrolet Silvera do 1500 2015 7,600 $145 B
15 19 133972 01/06/18 1800 BAY RD, Miami Beach GMC Yukon 2017 7,500 $145 B
16 20 134250 01/11/18 000 ISLAND AVE, Miami Beach Land Rover Range Rover 2017 6,945 $145 B
17 21 134372 01/13/18 1600 MICHIGAN AVE, Miami Beach Jeep Grand Cherokee Limited 2015 6,500 $145 B
18 22 134722 01/18/18 4600 COLLINS AVE, Miami Beach Ford F150 2007 8,200 $145 B
19 23 135143 01/25/18 1200 20TH ST, Miami Beach Jeep Wrangler Unknown 5,400 $145 B
20 24 135893 02/07/18 1567 MERIDIAN AVE, Miami Beach Chevrolet Silvera do 1500 2007 6,800 $145 B
21 25 135897 02/07/18 300 20TH ST, Miami Beach Toyota Tacoma Preruner SRS 2007 5,450 $145 B
22 26 136731 02/21/18 000 ISLAND AVE, Miami Beach BMW XS 2014 6,063 $145 B
23 27 136755 02/22/18 400 21ST ST, Miami Beach GMC Yukon 2018 7,500 $145 B
24 28 136926 02/24/18 200 11TH ST, Miami Beach Nissan NV 1500 2015 8,550 $145 B
25 29 137088 02/26/18 300 74TH ST, Miami Beach Chevrolet Suburban 1500 2015 7,500 $145 B
26 30 137541 03/06/18 000 WASHINGTON AVE Ford Transit Connect XL 2012 5,005 $145 B
27 31 137699 03/09/18 11 ISLAND AVE, Miami Beach Ford F150 Lariat 2016 7,850 $145 B
28 32 138566 03/19/18 1800 BAY RD, Miami Beach Toyota Tundra Unknown 7,200 $145 B
29 33 138632 03/20/18 100 7TH ST, Miami Beach Ford Transit 150 Cargo 2015 8,600 $145 B
30 34 138636 03/20/18 1880 WEST AVE, Miami Beach Land Rover Range Rover 2016 6,945 $145 B
31 35 138640 03/20/18 5 ISLAND AVE, Miami Beach Ford Transit 150 Cargo 2015 8,600 $145 B
32 36 138776 03/22/18 1 WASHINGTON AVE, Miami Beach Nissan NV 2500 2016 9,100 $145 B
33 37 139170 03/26/18 100 18 ST, Miami Beach Chevrolet Suburban 1500 2018 7,300 $145 B
34 38 139338 03/28/18 000 WASHINGTON AVE, Miami Beach Chevrolet Express 2500 2012 9,460 $145 B
35 39 139983 04/06/18 700 WASHINGTON AVE, Miami Beach Ford Transit 250 2017 9,000 $145 B
36 40 140235 04/09/18 2600 COLLINS AVE, Miami Beach Jeep Liberty Sport 2010 5,675 $145 B
37 41 141594 05/03/18 1600 ALTON RD, Miami Beach Chevrolet Suburban 2018 7,300 $145 B
38 42 142043 05/11/18 100 7TH ST Nissan NV 1500 2016 8,550 $145 B
39 43 142424 05/18/18 944 COLLINS AVE, Miami Beach GMC Yukon 2017 7,500 $145 B
40 44 143419 06/03/18 1500 LENOX AVE, Miami Beach Ford ElSO Van 2008 8,600 $145 B
41 45 144415 06/21/18 100 10TH ST, Miami Beach Ford FlS0 Unknown 8,200 $145 B
42 46 144421 06/21/18 300 23RD ST Lincoln Navigator 2003 7,450 $145 B
Page 24 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - June 3, 2019
43 47 144855 06/29/18 1900 PURDY AVE Ram 1500 Laramie Longhorn 2016 6,950 $145 B
44 48 144867 06/29/18 100 20TH ST Chevrolet Express 3500 2009 9,600 $145 B
45 49 145133 07/02/18 1400 PENNSYLVANIA AVE, Miami Beach Chevrolet Suburban 1500 2018 7,300 $145 B
46 50 145297 07/05/18 200JEFFERSON AVE, Miami Beach Nissan Armada 2017 7,500 $145 B
47 51 145544 07/08/18 1400 18TH ST Chevrolet Suburban 2013 7,400 $145 B
48 52 146534 07/23/18 O WASHINGTON AVE Ford E250 Van Econoline 2012 9,000 $145 B
49 53 146965 07/31/18 1600 ALTON RD, Miami Beach Cadillac Escalade Ultra 2009 7,300 $145 B
so 54 147360 08/06/18 1100 WEST AVE, Miami Beach Ford E250 2006 8,600 $145 B
51 55 148072 08/18/18 300 24TH ST Chevrolet Tahoe 2018 7,300 $145 B
52 56 148106 08/18/18 1600 ALTON RD Lexus GX 460 2017 6,600 $145 B
53 57 148704 08/29/18 1000 OCEAN CT, Miami Beach Chevrolet Suburban 1500 2018 7,300 $145 B
54 58 149354 09/11/18 709 ALTON RD, Miami Beach Ford E250 2006 8,600 $145 B
SS 59 149794 09/19/18 200 23RD ST Ford Transit 250 2018 9,000 $145 B
56 60 146339 07/21/18 1100 WEST AVE, Miami Beach Chevrolet Express 1500 2012 7,600 $175 c
57 61 128507 10/04/17 1900 PURDY AVE, Miami Beach Dodge Sprinter 2SOO 2004 8,550 $175 c
58 62 132958 12/21/17 1600 WASHINGTON AVE, Miami Beach Mercedes Benz Sprinter 2500 2016 8,550 $175 c
59 63 146557 07/24/18 200 72ND ST, Miami Beach Dodge Sprinter 2500 2003 8,550 $175 c
60 64 150276 09/27/18 2200 LIBERTY AVE, Miami Beach Mercedes Benz Sprinter 2500 2015 8,550 $175 c
61 65 151647 10/20/18 4500 COLLINS AVE Mercedes Benz Sprinter 2500 2012 8,550 $175 c
62 66 152222 10/31/18 100 10TH ST, Miami Beach Dodge Sprinter 2500 2004 8,550 $175 c
63 67 148668 08/28/18 1900 PURDY AV Ford Transit 150 2015 8,600 $175 c
64 68 133352 12/28/17 800 16TH ST, Miami Beach Dodge 2500 Ram 2000 8,800 $175 c
65 69 146212 07/19/18 1200 WEST AVE, Miami Beach Ram ProMaster 2500 2015 8,900 $175 c
66 70 149082 09/06/18 O WASHINGTON AVE Ram 2500 Promaster Van 2015 8,900 $175 c
67 71 148842 09/01/18 49 COLLINS AVE Ford Excursion 2000 8,900 $175 c
68 72 139340 03/28/18 200 7TH ST, Miami Beach Nissan Titan XD 2016 8,990 $175 c
69 73 135312 01/27/18 700 WASHINGTON AVE, Miami Beach Ford Transit 250 2016 9,000 $175 c
70 74 145777 07/13/18 100 21ST ST, Miami Beach Ford Transit 250 2017 9,000 $175 c
71 75 146482 07/22/18 1600 ALTON RD, Miami Beach Ford Excursion 2005 9,200 $175 c
72 76 131519 11/27/17 000 WASHINGTON AVE, Miami Beach Nissan NV 3500 S/SV 2012 9,500 $175 c
73 77 138656 03/20/18 1833 BAY RD, Miami Beach Chevrolet G10 Express 1997 9,500 $175 c
74 78 130219 11/02/17 40 ISLAND AVE, Miami Beach Ford Transit 350 2017 9,500 $175 c
75 79 131022 11/18/17 2000 LIBERTY AVE, Miami Beach Ford Transit 350 2016 9,500 $175 c
76 80 131030 11/18/17 1300 WEST AVE, Miami Beach Ford Transit 350 2015 9,500 $175 c
77 81 131918 12/05/17 300 25TH ST, Miami Beach Ford Transit 350 2016 9,500 $175 c
78 82 133358 12/28/17 800 OCEAN DR BLK, Miami Beach Ford Transit 350 2017 9,500 $175 c
79 83 136056 02/10/18 1131 COLLINS AVE, Miami Beach Ford Transit 350 2018 9,500 $175 c
80 84 136695 02/20/18 100 20TH ST, Miami Beach Ford Transit 350 2018 9,500 $175 c
81 85 137511 03/05/18 1700 JAMES AVE, Miami Beach Ford Transit 350 2017 9,500 $175 c
82 86 139447 03/29/18 1034 PENNSYLVANIA AVE, Miami Beach Ford Transit 350 2015 9,500 $175 c
83 87 139607 03/31/18 100 LINCOLN RD, Miami Beach Ford Transit 350 2016 9,500 $175 c
84 88 139839 04/03/18 000 5TH ST, Miami Beach Ford Transit 350 2018 9,500 $175 c
85 89 140280 04/10/18 2100 PARK AVE, Miami Beach Ford Transit 350 2015 9,500 $175 c
86 90 141758 05/05/18 2100 PARK AVE, Miami Beach Ford Transit 350 2018 9,500 $175 c
87 91 142168 05/12/18 1400 PENNSYLVANIA AVE, Miami Beach Ford Transit 350 2018 9,500 $175 c
88 92 144343 06/20/18 1600 WASHINGTON AVE BLK, Miami Beach Ford Transit 350 2017 9,500 $175 c
89 93 149611 09/15/18 1100 COLLINS AVE, Miami Beach Ford Transit 350 2017 9,500 $175 c
90 94 151145 10/12/18 100 10TH ST, Miami Beach Ford Transit 350 2018 9,500 $175 c
91 95 152062 10/28/18 1520 COLLINS AVE, Miami Beach Ford Transit 350 2015 9,500 $175 c
92 96 139645 03/31/18 400 81ST ST, Miami Beach Chevrolet Express 3500 2004 9,600 $175 c
Page 25 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - June 3, 2019
93 97 147434 08/07/18 1500 DREXEL AVE, Miami Beach Chevrolet Express 3500 2005 9,600 $175 c
94 98 144607 06/24/18 400 22ND ST Chevrolet Express 3500 2013 9,660 $175 c
95 99 150395 09/29/18 100 10TH ST, Miami Beach Nissan NV 3500 S/SV 2012 9,900 $175 c
96 100 130765 11/12/17 1900 BAY RD, Miami Beach Dodge Sprinter 3500 2006 9,990 $175 c
97 101 146676 07/26/18 200 16TH ST GARAGE, Miami Beach Ford F250 2016 10,000 $175 c
98 102 146246 07/20/18 2100 MIAMI BEACH DR, Miami Beach Hummer Hl 1992-2006 10,300 $175 c
99 103 140934 04/21/18 100 39TH ST, Miami Beach Chevrolet Express 3500 2018 10,384 $175 c
100 104 142172 05/12/18 1400 EUCLID AVE, Miami Beach Chevrolet Express 3500 2017 10,384 $175 c
101 105 148844 09/01/18 2009TH ST Chevrolet Express 3500 2018 10,384 $175 c
102 106 152099 10/28/18 1700 JAMES AVE Chevrolet Express 3500 2018 10,384 $175 c
103 107 144587 06/23/18 8036 HARDING AVE, Miami Beach Dodge Ram 3500 2000 10,500 $175 c
104 108 133772 01/01/18 36 ISLAND AVE, Miami Beach Ford F350 1997 11,200 $175 c
105 109 139784 04/02/18 000 WASHINGTON AVE LOT, Miami Beach Dodge Ram 1500 2017 11,500 $175 c
106 110 148060 08/17/18 1800 WEST A VE Ram 1500 Promaster Van 2016 11,500 $175 c
107 111 149569 09/15/18 1600 COLLINS AVE Dodge Ram 1500 2017 11,500 $175 c
108 112 145265 07/04/18 700 14TH ST, Miami Beach GMC Savana 3500 2014 12,300 $175 c
109 113 140888 04/21/18 700 WASHINGTON AVE, Miami Beach Ford E350 2016 12,500 $175 c
110 114 142953 05/26/18 900 6TH ST, Miami Beach Ford E350 2014 12,500 $175 c
111 115 144637 06/24/18 100 21ST ST Ford E350 2013 12,500 $175 c
112 116 143220 05/30/18 400 22ND ST, Miami Beach Ford F350 2006 13,000 $175 c
113 117 140009 04/06/18 100 20TH ST, Miami Beach Chevrolet Silvera do 3500 2016 13,025 $175 c
114 118 132741 12/17/17 1900 BAY RD, Miami Beach Ford F350 2017 14,000 $175 c
115 119 150426 09/29/18 1800 WASHINGTON AVE, Miami Beach Ford F350 2013 14,000 $175 c
116 120 138890 03/23/18 900 EUCLID AVE, Miami Beach Dodge Ram 3500 2017 14,000 $175 c
117 121 144255 06/18/18 200 LINCOLN RD, Miami Beach Mitsubishi Fuso 2008 14,000 $175 c
118 122 137407 03/04/18 300 EUCLID AVE, Miami Beach Ford E450 2007 14,050 $175 c
119 123 138244 03/16/18 1300 18TH ST, Miami Beach Ford E450 2002 14,050 $175 c
120 124 141673 05/04/18 1 WASHINGTON AVE LOT, Miami Beach Ford E350 2007 14,050 $175 c
121 125 146860 07/29/18 1400 JEFFERSON AVE, Miami Beach Ford E350 2007 14,050 $175 c
122 126 135035 01/22/18 700 PENNSYLVANIA AVE, Miami Beach Ford Van 2017 14,500 $175 c
123 127 137771 03/10/18 1300 LINCOLN RD, Miami Beach Ford E450 2017 14,500 $175 c
124 128 139168 03/26/18 2500 PINE TREE DR, Miami Beach Ford E450 2009 14,500 $175 c
125 129 141244 04/27/18 1000 WEST AVE, Miami Beach Ford E450 2015 14,500 $175 c
126 130 142759 05/24/18 7715 HARDING AVE, Miami Beach Ford E450 2009 14,500 $175 c
127 131 143361 06/02/18 800 WASHINGTON AVE, Miami Beach Ford E450 2017 14,500 $175 c
128 132 143389 06/02/18 50 S SHORE DR, Miami Beach Ford E450 2017 14,500 $175 c
129 133 151349 10/15/18 100 10TH ST, Miami Beach Dodge Grand Caravan GT 2017 6,050 $219 D
130 134 149396 09/12/18 800 S POINTE DR Mercedes-Benz Sprinter 2500 2011 8,550 $200 D
131 135 128942 10/12/17 200 19TH ST BLK, Miami Beach Ford E-350 2016 12,500 $200 D
132 136 128511 10/04/17 1000 WEST AVE, Miami Beach Isuzu NPR 2004 14,500 $200 D
133 137 130197 11/02/17 1100 PENNSYLVANIA AVE, Miami Beach Ford E-450 2017 14,500 $200 D
134 138 130940 11/16/17 1200 20TH ST, Miami Beach HINO 155 2018 14,500 $300 D
135 139 140526 04/15/18 O 5TH ST, Miami Beach Ford E-450 2011 14,500 $200 D
136 140 137154 02/28/18 100 17TH ST, Miami Beach Mitsubishi FUSO FH100 1995 17,995 $200 D
137 141 143254 05/31/18 1400 BIARRITZ DR, Miami Beach GMC C5500 C Series 2006 19,500 $200 D
138 142 148580 08/27/18 100 31ST ST, Miami Beach GMC C5500 C Series 2007 19,500 $200 D
143 130549 11/08/17 4300 COLLINS AVE, Miami Beach Ford F750 Unknown unknown $200 D
144 135676 02/03/18 1500 ALTON RD, Miami Beach Ford Transit Unknown unknown $145 B
145 142065 05/11/18 1800 PURDY AVE, Miami Beach Trailer 2005 unknown $145 B
146 144593 06/23/18 1400 COLLINS AVE, Miami Beach Lincoln Town Car Limousine 2000 unknown $175 c
147 133046 12/22/17 2900 ALTON RD, Miami Beach Peterbilt 2012 unknown $300 D
148 150741 10/05/18 500 WEST AVE Isuzu Unknown unknown $200 D
Page 26 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - September 24, 2019
Appendix B
Law Offices of Rafael E. Andrade, P.A.
1688 Meridian Avenue
7th Floor
Miami Beach, Florida 33139
Telephone: 305.531.9511
Facsimile: 305.673.5734
VIA EMAIL ONLY: JosephCentorino @miamibeachfl.go
September 9. 2020
Mr. Joseph Centorino
Inspector General
City of Miami Beach
1130 Washington Avenue
6th Flor
Miami Beach. FL 33139
www.randradelaw.com
ralph@randradelaw.com
Re: Beach Towing Serices, Inc.- Towing Audit OIG No. 20-18
Mr. Centorino:
I represent the interest of Beach Towing Services. Inc., concerning the above referenced
audit dated July 15. 2020. This letter is in response to your invitation fr my client to rebut the
findings in the audit.
Your conduct has deprived my client of the opportunity to respond to the audit You fail
to disclose to the City Commission that on or about December 4, 2019 you referred the audit to
the Miami-Dade State Attorney's Office (SAO) for criminal investigation (Exhibit A)' and that
on Ne Year's Ee, you again contacted the SAO to induce them to take action (Exhibit B)' As
a result. my client is currently the subject of a criminal investigation for the unfounded criminal
conduct you allege in the audit. While my client would like to address the allegations, it must
refrain from doing so until the SAO completes its investigation. It appears it would be in the best
interest of all parties to not comment on the audit until the investigation is complete.
Sincerely.
ls/ Rafael E. Andrade
Rafael E. Andrade. Esq.
'E±ibit A was obtained from the Miami-Dade State Attorney'z Offce pursuant to a Public Records Request The
email was partially redacted by the Miami-Dade State Aromey': Office.
'Ehibit B was obtained fom the Miami-Dade State Attorney'z OEce pursuant to a Public Records Request. The
email was panally redacted by the Miami-Dade State Aromey'; Office.
Page 27 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - September 24, 2019
EXHIBIT A
--------------
From:
Sent:
To:
Cc
Subject:
Attachments:
Centorino, Joseph <JosephCentorino@miamibeachfl.gov>
Wednesday, December 4, 2019 354 PM
John Perkles
Blaiotta, Norman
FW. each Towing Draft Report
Beach Towing Services, Inc. Draft Audit Report 06-03-19 2.dcox
Hi John,
Glad to be able to catch up with you today. I have attached the audit report we discussed as well as the contact
information for the auditor who authored it, Norman Blaiotta. He is prepared to speak with you in person or by phone,
whenever that is convenient. Thanks for taking a look at this.
Joe
MIA!IBEACH
Joseph M. Centorino
Inspector General
Office of the inspector General
17CO Convention Center rive, Miami Beach, FL 33139
Tel. 305- 673 7020/Fax 305 673-7519
Joseph@Centorino@miamibeachfl.gov
From: Blaiotta, Norman <NormanBlaiotta@miamibeachfl.gov>
Sent: Wednesday, December 4, 2019 3:44 PM
To: Centorino, Joseph <JosephCentorino@miamibeachfl.gov>
Subject: each Towing Draft Report
As per your request.
MIAMIBEACH
Norman Blaiotta CIA CFE MBA, Senior Auditor
Office of the inspector General
1700 Coventon Center Drive, Miami Beach, FL 33139
Tel: 305-873-7000 ext. 2898 /Fax. 305-073-7519/wyyw_miamibeachfl_go
We are committed to providing excellent public service and safety to ail who live work and play in our vibrant tropical, historic
community.
Page 28 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - September 24, 2019
EXHIBIT
From:
Sent:
To:
Cc
Subject:
Centorino, Joseph <JosephCentorno@miamibeachfl.gov>
Tuesday, January 7, 2020 3.06 PM
John Perikles
Baiotta, Norman
RE Towing audit
Joe
MIA'IBEACH
Josepfi M. Centorno
Inspector General
Office of the inspector General
1130 Washington Ave.. 6" Floor
Miari Beach, F 33139
Tel. 305 673 7020
Joseph_gento_no@_ miamit@gchf]_gov
From: John Perikles <JohnPerikles@MiamiSAO.com>
Sent: Tuesday, January 7, 2020 2:23 PM
To: Centorino, Joseph <JosephCentorino@miamibeachfl.gov>
Subject: RE: Towing audit
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL · US CAUTION WHEN REPLYING AND OPENING LINKS OR
ATTACHMENTS ]
Page 29 of 30
Beach Towing Services, Inc. - Towing Permit Compliance Audit - June 3, 2019
I don't mid looking into this further, but would prefer to sit down with the investigators/auditors rather than do this by
phone.
John
From: Centorino, Joseph <yo3_pr@ntgrino@migmibgghf]ggy>
Sent: Tuesday, December 31, 2019 2:25 PM
To: John Perikles <JohnPerikles @MiamiSAO.com>
Subject: Towing audit
Hi John,
Happy New Year!
Just checking in on the towing audit we sent you before the holiday, to find out if someone there has had the time to
review it. I will be in the office this Thursday and Friday, if it would be convenient to talk. Otherwise, next week is
fine. I expect there to be some developments in the City's review of this matter shortly.
loe
MIA'IBEACH
Josef M. Centorino
inspector General
Office of the inspector General
113 Washington Awe.. 6" Floor
Miami Beach, F 33139
Tel. 305 673 7020
losephCentorino@miamitgachtl.gov
Page 30 of 30