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Item D14 E/25 BOARD OF COUNTY COMMISSIONERS C ounty of M onroe Mayor David Rice, District 4 Mayor Pro Tem Craig Cates, District 1 The Florida Keys Michelle Coldiron, District 2 Vacant, District 3 Holly Merrill Raschein, District 5 County Commission Meeting May 18, 2022 Agenda Item Number: D.14 Agenda Item Summary #10550 BULK ITEM: Yes DEPARTMENT: Engineering / Roads TIME APPROXIMATE: STAFF CONTACT: Judith Clarke (305) 295-4329 No AGENDA ITEM WORDING: Approval of Amendment 2 to the Gas Tax Sharing Interlocal Agreement (ILA) to update the percentage distributions for the 5-cent local option gas tax to include the 2020 census data and for the 6-cent local option gas tax to include the transportation expenditures for the last 5 fiscal years. The population and transportation expenditures methodology was previously agreed upon the by County and Cities. Direction to the Clerk to transmit the executed ILA to the Department of Revenue on or before July 1, 2022. ITEM BACKGROUND: The Florida Department of Revenue (DOR) handles the collection and distribution of the 5-cent and 6-cent gas tax revenues and requested for the percentage distributions to be provided to them no later than July 1, 2022, for the 6-cent and October 1, 2022 for the 5-cent. The County and City representative met on August 9, 2021 to discuss updating the 5-cent percentage distribution based upon the 2020 census data and updating the 6-cent percentage distribution based upon the last 5 fiscal years. The Cities were asked to submit their expenditures on or before January 31, 2022. The County has now received all the Cities and a percentage distribution has been calculated and circulated based upon the Cities and County transportation expenditures. The ILA provides the following with the distribution percentages as set forth below: All parties agree that the distribution of the 6-cent local option gas tax, imposed by County Ordinance No. 016-1989, as amended by Ordinance No. 026-1989 and as extended by Ordinance No. 033-2019 and authorized under Sec. 336.025(1)(a), Florida Statute shall be distributed based upon the transportation expenditures for the last five fiscal year among the COUNTY and CITIES as follows: Distribution City of Key West 28.3% City of Key Colony Beach .5% City of Layton .12% City of Marathon 5.3% Qbdlfu!Qh/!591 E/25 The Village of Islamorada 9.2% Monroe County 56.5% All the parties agree that the 5-cent local option gas tax, imposed by County Ordinance No. 016- 2009 and Ordinance No. 029-2020, and authorized under Sec. 336.025(1)(b), Florida Statute shall be distributed based upon population (current 2020 census data) among the COUNTY and CITIES as follows: Distribution City of Key West 31.91% City of Key Colony Beach 0.95% City of Layton 0.25% City of Marathon 11.69% The Village of Islamorada 8.58% Monroe County 46.62% The ILA was amended to 2019 to provide for the County and Cities to periodically review the distributions. The population percentages for the 5-cent gas tax (2-cents was added in 2020) will likely remain in place until the 2030 census. The transportation expenditures will likely be updated are included. This Amendment 2 to the ILA updates the distributions percentages and also updates Section 10 NOTICES. This Amendment does not affect the Supplemental ILAs dated 7/15/09 entered into with the City of Marathon, KCB, Layton and the Village of Islamorada. PREVIOUS RELEVANT BOCC ACTION: Ordinance No. 16-1989 approved extension of the six-cent "gas" tax authorized by F.S. 336.025(1)(a). 12/19/2007 (Item Q-13) BOCC tabled to 2/20/2008 BOCC 02/20/2008 (Item P-2) BOCC denied request to hold Public Hearing 03/19/2008 (Item N-15) BOCC approved advertising Public Hearing for 4/16/08 04/16/2008 (Item Q-2) Public Hearing - Motion to Adopt failed due to lack of a four-fifths vote (3-1) 01/28/09 (Item O-4) BOCC approval to hold Public Hearing 3/18/09 in Marathon 03/18/09 (Item Q-3) BOCC continued public hearing to 5/20/09 in Key Largo 05/20/2009 (Item R-5) BOCC approved Ordinance 016-2009 levying 3 additional local option fuel thth taxes (7 through 9 cents) under F.S. 336.025 (*There are 2 additional cents that were levied pursuant to Ordinance No. 029-2020 enacted on 9/3/20) 05/20/2009 (item R-6) BOCC adopts Ordinance 015-2009 levying -under F.S. 206.41(1)(d) 5/20/2009 (Item Q-2) BOCC approved the Gas Tax Sharing ILA with the Cities (Key West, Marathon, Layton, Key Colony Beach and Islamorada) As directed by the BOCC at the 5/20/09 meeting, the BOCC then approved the Supplemental ILA with the Marathon, Layton, Key Colony Beach and Islamorada at its 7/15/09 meeting (Item Q-2) Qbdlfu!Qh/!592 E/25 9/30/19 (Item A-1) BOCC at its special meeting approved Ordinance 033-2019 extending the 6-cent gas tax for an additional 30-year period. (The 6-cent gas tax expires August 31, 2049) 8/9/2020 (Item P.6.) BOCC at its regular meeting approved an Amendment to the ILA adding periodic review in accordance with F.S. 336.025(1)(d) 9/3/2020- BOCC at its budget meeting approved Ordinance No. 029-2020 adding an additional 2- cents to the already levied 3-cent per Ordinance No. 016-2009 CONTRACT/AGREEMENT CHANGES: Update percentage based on census data and transportation expenditures for last 5 FY; update Notice Section STAFF RECOMMENDATION: Approval DOCUMENTATION: Amendment Two to ILA- Local Option Gas Tax Sharing Agenda item and ILA dated 5 20 09 Amendment One to ILA dated 08_19_2020 Florida Stat. 336.025 County transportation system; levy of local option fuel and diesel fuel Ordinance 16-2009 Levying 3-cent local option Ordinance 33-2019 extending the 6-cent local option tax Ordinance 029-2020 Imposing additional 2-cents of 5-cents gas tax FINANCIAL IMPACT: Effective Date: 5/18/22 Expiration Date: ILA remains in effect unless terminated or replaced. Total Dollar Value of Contract: N/A Total Cost to County: N/A Current Year Portion: N/A Budgeted: N/A Source of Funds: N/A CPI: N/A Indirect Costs: N/A Estimated Ongoing Costs Not Included in above dollar amounts: N/A Revenue Producing: Yes, per shared gas tax revenues If yes, amount: Depends upon gas tax revenues Grant: N/A County Match: N/A Insurance Required: N/A Additional Details: N/A The County will recevie its gas tax distribution from the Department of Revenue depending upon the gas tax revenue. Qbdlfu!Qh/!593 E/25 REVIEWED BY: Judith Clarke Completed 05/02/2022 12:14 PM Christine Limbert Completed 05/02/2022 1:01 PM Purchasing Completed 05/02/2022 1:32 PM Budget and Finance Completed 05/02/2022 4:43 PM Brian Bradley Skipped 04/27/2022 7:12 PM Lindsey Ballard Completed 05/03/2022 1:41 PM Board of County Commissioners Pending 05/18/2022 9:00 AM Qbdlfu!Qh/!594 E/25/b AMENDMENT TWO TO LOCAL OPTION GAS TAX SHARING INTERLOCAL AGREEMENT THIS AMENDMENT TWO TO THE LOCAL OPTION GAS TAX SHARING INTERLOCAL AGREEMENT is made and entered into as of this 15th day of June 2022, between Monroe County, a political subdivision of the State of Florida, (hereinafter the COUNTY), and the City of Key West, a municipal corporation organized and existing under the laws of the State of Florida, (hereinafter Key West) and the City of Key Colony Beach, a municipal corporation organized and existing under the laws of the State of Florida, (hereinafter Key Colony Beach); and the City of Layton, a municipal corporation organized and existing under the laws of the State of Florida, (hereinafter Layton); and the City of Marathon, a municipal corporation organized and existing under the laws of the State of Florida, (hereinafter Marathon), and the City of Islamorada, The Village of Islands, a municipal corporation organized and existing under the laws of the State of Florida, (hereinafter Islamorada) or collectively referred to as CITIES. WHEREAS, the CITIES and the COUNTY entered into a Local Option Gas Tax Sharing Interlocal Agreement (ILA) dated May 20, 2009 in accordance with F.S. 336.025 setting forth a distribution formula for dividing the 6-cents and 5-cents proceeds of the gas tax among the County and all eligible municipalities within Monroe County; and WHEREAS, in accordance with F.S. 336.025(1)(d), the ILA was amended August 19, 2020 to add a provision for periodic review whereby the local government entities will meet every two years to review and evaluate the method of distribution in accordance with the Statute; and WHEREAS, the County and Cities representatives have met and agreed to update the distribution formula for the 5-cent local option gas tax distribution that is based upon population to include the 2020 census data and to incorporate the transportation expenditures for each local government for the last five fiscal years for the 6-cent local option gas tax distribution; and WHEREAS, Section 10. NOTICES of the ILA will be amended and updated to reflect the individuals currently holding COUNTY and CITY positions; NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, the parties agree to amend the ILA as follows: 1.!Section 3. Revenue Share Allocation shall be amended to read as follows: SECTION 3. REVENUE SHARE ALLOCATION All parties agree that the distribution of the 6-cent local option gas tax, imposed by County Ordinance No. 016-1989, as amended by Ordinance No. 026-1989 and as extended by Ordinance No. 033-2019 and authorized under Sec. 336.025(1)(a), Florida Statute shall be distributed based upon the transportation expenditures for the last five fiscal year among the COUNTY and CITIES as follows: Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Distribution City of Key West 28.3% City of Key Colony Beach .5% Page 1 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!595 E/25/b City of Layton .12% City of Marathon 5.3% The Village of Islamorada 9.2% Monroe County 56.5% B. All the parties agree that the 5-cent local option gas tax, imposed by County Ordinance No. 016-2009 and Ordinance No. 029-2020, and authorized under Sec. 336.025(1)(b), Florida Statute shall be distributed based upon population (current 2020 census data) among the COUNTY and CITIES as follows: Distribution City of Key West 31.91% City of Key Colony Beach 0.95% City of Layton 0.25% City of Marathon 11.69% The Village of Islamorada 8.58% Monroe County 46.62% 2.!Section 10 of the ILA shall be amended as follows: SECTION 10. NOTICES. Notices in this Agreement, unless otherwise specified, must be sent by certified mail to the following: COUNTY: County Administrator Roman Gastesi 1100 Simonton Street Key West, FL 33040 County Attorney Robert B. Shillinger P. O. Box 1026 Key West, FL 33041 KEY COLONY BEACH: City Manager Dave Turner P.O. Box 510141 Key Colony Beach, FL 33051 Mr. Dirk Smits, Esq City Attorney for Key Colony Beach 81990 Overseas Highway, Third Floor Islamorada, FL 33036 MARATHON: Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* George Garrett , City Manager & City Attorney Steve Williams 9805 Overseas Highway Marathon, FL 33050 Page 2 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!596 E/25/b ISLAMORADA: City Manager & Roget V. Bryan, Village Attorney 86800 Overseas Highway Islamorada, FL 33036 LAYTON: Mayor Bruce Halle PO Box 778 Long Key, FL 33001 Mr. Dirk Smits, Esq City Attorney for Layton 81990 Overseas Highway, Third Floor Islamorada, FL 33036 KEY WEST: City Manager-Patti McLauchlin & City Attorney Shawn Smith P. O. Box 1409 Key West, FL 33041 3.All other terms and conditions of the ILA dated May 20, 2009, as amended, remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. (SEAL) BOARD OF COUNTY COMMISSIONERS KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA By___________________________ By: As Deputy Clerk Mayor/Chairperson 503:033 The Remainder of this page Intentionally Left Blank Page 3 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!597 E/25/b (SEAL) CITY OF KEY WEST ATTEST: By:_______________________ By: Clerk Mayor The Remainder of this page Intentionally Left Blank Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Page 4 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!598 E/25/b (SEAL) CITY OF KEY COLONY BEACH ATTEST: By:_______________________ By: Clerk Mayor The Remainder of this page Intentionally Left Blank Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Page 5 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!599 E/25/b (SEAL) CITY OF LAYTON ATTEST: By:_______________________ By: Clerk Mayor The Remainder of this page Intentionally Left Blank Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Page 6 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!59: E/25/b (SEAL) CITY OF MARATHON ATTEST: By:_______________________ By: Clerk Mayor The Remainder of this page Intentionally Left Blank Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Page 7 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!5:1 E/25/b (SEAL) CITY OF ISLAMORADA, VILLAGE OF ISLANDS ATTEST: By:_______________________ By: Clerk Mayor The Remainder of this page Intentionally Left Blank Buubdinfou;!Bnfoenfou!Uxp!up!JMB.!Mpdbm!Pqujpo!Hbt!Uby!Tibsjoh!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Page 8 of 8 Amendment Two to ILA- Local Option Gas Tax Sharing Qbdlfu!Qh/!5:2 E/25/c Buubdinfou;!Bhfoeb!jufn!boe!JMB!ebufe!6!31!1:!!)Bnfoenfou!3!up!Hbt!Uby!Tibsjoh!JMB* Qbdlfu!Qh/!5:3 E/25/c 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