Referral to Finance to discuss and take potential action on the recommendations set forth by the Office of Inspector General in OIG Report 21-43. The recommendation from the OIG report are as follows:

Recommendation #1: Information Technology Department staff should develop a monthly report that automatically compares any of the identified issued Building permit types (Building - Commercial, Building – GDO License, Building - Residential, Pool - Commercial, Pool - Residential, Roofing – Commercial, Roofing – Residential, etc.) with the Roll-Off Permits Report data, so that any differences can be promptly investigated by the OIG Sanitation Tax Auditor and/or other designated City staff. If necessary, the Code Compliance Department should be notified to dispatch inspectors to the individual job sites to determine the contractor’s compliance with the requirements of City Code Section 90.

Recommendation #2: The Building Department should be immediately notified of any NOVs issued to contractors for operating without a valid Building permit.

Recommendation #3: Three Code Compliance Department inspectors, paid solely with Sanitation Department funds, should be assigned to exclusively cover areas as South (South Pointe Drive to 21st Street), Middle (21st Street north to 64th Street), and North (64th Street to the City’s northern boundaries) to determine compliance with the requirements of City Code Section 90.

Recommendation #4: The City should pursue the enforcement actions stated in the City Code against any contractors that continually violate its provisions, and/or do not timely resolve any issued NOVs.

Recommendation #5: The designated dollar amount of NOVs issued to contractors for using a roll-off without obtaining a permit seems too low ($100.00) and should be increased to provide a sufficient deterrent to non-compliant contractors.

Recommendation #6: Although substantiated recycling activities are currently exempt from taxation, contractors are required to comply with all the pertinent requirements of the City Code, including Section 90-308, or be subject to its disciplinary provisions. Furthermore, the OIG recommends that the City Code be revised to require recycling contractors to timely file monthly reports of claimed recycling transactions, even if they did not operate within Miami Beach during that period. If they do not comply, they should be promptly notified by the City. Also, late fees should be established and levied when the contractor does not timely file monthly reports by the designated due date. This practice should help improve compliance by preventing inadvertent filing omissions and facilitating scrutiny by City Staff and OIG auditors.

Recommendation #7: It is also recommended that contractors be required to retain sufficient supporting documentation such as dump tickets, from claimed recyclable transactions to substantiate the claimed exemption. If complete supporting documentation is not timely produced upon request from the City, then the entire transaction may be considered taxable.