NCAC Review

On February, 14, 2018, the Mayor and Commission approved Item No. C7A, Police and Parking Department Towing Permits, for a one (1) year term and referred the item to the NCAC for further discussion.  The NCAC deferred the item to their September meeting at the request of the City Attorney’s Office.

On September 26, 2018, the Neighborhoods and Community Affairs Committee (NCAC) held the following discussion and subsequent action.

Mr. Ralph Andrade presented the following:

• Requested that the towing permits be renewed for three (3) years as in the past instead of an annual renewal.

• Stated that the City Manager has the ability to review [towing] rates, if inflation exceeds 5%. 

• Further stated, there has been a 12% CPI increase since 2012 when rates were last adjusted and that the CPI has met the 5% requirement twice.

• Requested the City Manager to review the request for increase.

• Referenced Miami-Dade County’s use of an automatic rate adjustment based on CPI. 

• Requested that item be sent back to the full commission for renewal of permit and discussion on their request.

Mr. Alek Boksner, City Attorney’s Office/City of Miami Beach stated the following:

• The City Manager would need an opportunity to do a market study to weigh in on rates.

• An automatic rate adjustment based on CPI would require a towing permit amendment.

• Other favorable modifications to Towing Bill of Rights could be done at that time.

• Recommended that this item come back to NCAC in January for a February recommendation to the City Commission as the current towing permit expires in February

Commissioner Samuelian stated the following:

• Concurred with Mr. Boksner to keep the item at the NCAC.

• Noted that the issue of covering (enclosure) of the towing storage facility was a driver for the NCAC referral.

• Raised the issue of non-acceptance of credit cards by the towing service providers and requested a survey of other jurisdictions.

Commissioner Góngora made a motion to move this item to the full Commission to discuss renewing the permit. Commissioner Samuelian voted against the motion. Commissioner Samuelian requested to hear more about the research on credit card payments and covering of the facility. Commissioner Rosen Gonzalez supported the motion with the Information requested by Commissioner Samuelian to be provided at the Commission meeting.

Administration Review

The Administration has reviewed the Indexing Provision in the Administrative Rules and Regulations of the City of Miami Beach Police and Parking Department Towing Permits (Section 25, entitled, Maximum Allowable Rates” (L) Indexing Provision) and it states the following:

“The City Manager or his designee may initiate an administrative review of the Maximum Allowable Rates whenever the cumulative change in the Consumer Price Index (CPI – All Urban consumers – US City average – All items – Base Period 1982–84 = 100) (CPI), between the current CPI and the date of the CPI used to establish the last rate adjustment, is greater than five percent (5%).  Upon reaching this threshold and, further, following a survey conducted by the City of maximum allowable towing rates for similar services in surrounding communities, and/or an analysis to review the current cost of providing such services, the City Manager or his authorized designees shall prepare a recommendation as to whether there should be an adjustment to the Maximum Allowable Rates; which recommendation shall be subject to final approval by the Mayor and City Commission.”

Utilizing the index referenced in the permit, the Administration calculated a CPI percentage change of 9.8% (see attached) between December 1, 2012 (last towing rate increase) and August 2018 (most current CPI data). Therefore, a towing rate analysis is triggered and it is underway. This analysis shall include the credit card acceptance issues  and covering of the facilty requested by Commissioner Samuelian.