Item C10 C.10
Coty f � ,�� ,' BOARD OF COUNTY COMMISSIONERS
�� Mayor David Rice,District 4
The Florida Keys � Mayor Pro Tem Craig Cates,District 1
y Michelle Coldiron,District 2
James K.Scholl,District 3
Ij Holly Merrill Raschein,District 5
County Commission Meeting
July 20, 2022
Agenda Item Number: C.10
Agenda Item Summary #10761
BULK ITEM: Yes DEPARTMENT: Engineering/Roads
TIME APPROXIMATE: STAFF CONTACT: Judith Clarke (305) 295-4329
no
AGENDA ITEM WORDING: Approval of a supplemental gas tax interlocal agreement with the
City of Key West to compensate the City for the difference in 6-cent local option gas tax revenue
between the City's old distribution percentage (36.5%) and the updated distribution percentage
(28.3%) for a period of four years with the compensation amount decreasing by 25%per year.
ITEM BACKGROUND: The County and the five municipalities share the proceeds of the 6 cent
local option gas tax based on a distribution formula that uses each entity's transportation
expenditures for the most recent past five fiscal years.
The local agencies met in August, 2021 and agreed to update the existing ILA distribution
percentages using transportation expenditures from fiscal years 2017 —2021. The updated
percentages resulted in the City of Key West's annual share decreasing by approximately $250,000
based on current gas tax revenue proceeds. It is in the best interest of the County to have the City of
Key West, as the most populous municipality in the County, approve the updated distribution
percentages; therefore, in order to allow Key West to absorb the revenue reduction over time, the
County proposes through this ILA to compensate the City for the reduction from the County's
proceeds in a decreasing percentage of 25% over a four year period.
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 0-4) 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
taxes (71h through 91h 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)
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05/20/2009 (item R-6) BOCC adopts Ordinance 015-2009 levying"ninth-cent fuel tax" 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)
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:
new
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Supplemental ILA with Key West final 6-22-2022
FINANCIAL IMPACT:
Effective Date: July 20, 2022
Expiration Date: September 1, 2026
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted:
Source of Funds: 6 cent local option gas tax revenue
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: If yes, amount:
Grant:
County Match:
Insurance Required:
Additional Details:
09/01/22 102-22503 - LOCAL OPT GAS TAX PROJEC $250,000.00
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C.10
REVIEWED BY:
Judith Clarke Completed 06/22/2022 1:57 PM
Christine Limbert Completed 06/23/2022 3:47 PM
Purchasing Completed 06/23/2022 3:54 PM
Budget and Finance Completed 07/05/2022 4:52 PM
Brian Bradley Completed 07/05/2022 4:58 PM
Lindsey Ballard Completed 07/05/2022 5:06 PM
Board of County Commissioners Pending 07/20/2022 9:00 AM
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C.10.a
SUPPLEMENTAL GAS TAX INTERLOCAL AGREEMENT
THIS INTERLOCAL AGREEMENT is made and entered into on this day of
2022 between Monroe County (MONROE COUNTY), a political subdivision of State of Florida, and the
City of Key West (KEY WEST), a municipal corporation of the State of Florida.
WHEREAS, pursuant to Florida Statutes Section 336.025, the county and municipalities intend to
enter into an interlocal agreement setting forth a distribution formula for dividing the entire proceeds of U)
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the tax among county government and all eligible municipalities within the county; and
WHEREAS, MONROE COUNTY and the cities of KEY WEST, KEY COLONY BEACH, VILLAGE OF
ISLAMORADA, LAYTON, and MARATHON have tentatively agreed to enter into Amendment Two to the
Local Option Gas Tax Sharing Interlocal Agreement to update the 5-cent gas tax distribution,which is CL
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based upon populations, with the 2020 census data and the 6-cent gas tax distribution, which is based
on transportation expenditures, with transportation expenditures for the most recent past 5 fiscal years 0
(FY) (FY 2017-FY 21); and
WHEREAS,while the 5-cent percentage distribution for Key West increases slightly, the 6-cent
percentage distribution for Key West will decrease from 36.5 %to 28.33% resulting in a reduction of
funds of approximately$250,000 based upon current gas tax revenue proceeds; and
WHEREAS, in order to allow for Key West to absorb this reduction over the next 4 fiscal years,
the County has agreed to enter into this Supplemental ILA whereby Monroe County will compensate Key
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West for the difference between the new 6-cent percentage and what Key West would have received if c14
no percentage change were made and reducing it by 25% per year over 4 years; and 1
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WHEREAS the Cityof Key West the most populous municipality in Monroe Count so Ion as
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this Supplemental Gas Tax Agreement is approved,will execute the Amendment Two to the Interlocal S
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Agreement, rendering the agreement sufficient for purposes of the Department of Revenue (DOR) and
setting the updated distributions contained therein; and
WHEREAS,the Board of County Commissioners of Monroe County has decided to share a
portion of its distribution from the Florida Department of Revenue to compensate Key West for the
difference between the new 6-cent percentage and what the City would have received if no percentage
change were made and reducing it by 25% per year over 4 years;
NOW THEREFORE, IN CONSIDERATION OF the mutual promises and conditions contained herein, the
PARTIES agree as follows:
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SECTION 1.TERM.
This Agreement shall be effective on the date as first written above and will be for a term beginning
September 1, 2022 and continue in force for four years, ending on September 1, 2026.
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SECTION 2. PAYMENT AMOUNT SUPPLEMENTAL TO THE LOCAL OPTION GAS TAX SHARING ILA
This agreement supplements the county-wide Amendment Two to the Local Option Gas Tax Sharing
interlocal agreement approved by the County on July 20, 2022, and is intended to compensate the City
of Key West for the difference between the updated 6-cent distribution percentage of 28.3%and the
amount the City of Key West would have received had no percentage change been made (36.5%) and to
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C.10.a
reduce the compensation amount by 25% per year over 4 years. Monroe County will pay in arrears from
the gas tax distributions it receives from the Florida Department of Revenue (DOR). The 6-cent gas tax is
levied and imposed pursuant to Ordinance No. 033-2019 with an effective date of September 1 to
August 31.
For the period of September 1, 2022, through August 31, 2023, the Monroe County shall pay Key West
in arrears in two installments on or about March 1, 2023, and September 1, 2023, 100%of the M
difference between the gas tax revenues percentage of 28.33%and 36.5%applied to the 6-cent gas tax
revenue for that annual term.
For the period of September 1, 2023, through August 31, 2024, Monroe County shall pay Key West in
arrears in two installments on or about March 1, 2024, and September 1, 2024, 75%of the difference
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between the gas tax revenues percentage of 28.33%and 36.5%applied to the 6-cent gas tax revenue for CL
that annual term.
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For the period of September 1, 2024, through August 31, 2025, the Monroe County shall pay Key West
in arrears in two installments on or about March 1, 2025, and September 1, 2025, 50%difference
between the gas tax revenues percentage of 28.33%and 36.5%applied to the 6-cent gas tax revenue for
that annual term.
For the period of September 1, 2025, through August 31, 2026, the Monroe County shall pay Key West
in arrears in two installments on or about March 1, 2026, and September 1, 2026, 25%of the difference
between the gas tax revenues percentage of 28.33%and 36.5%applied to the 6-cent gas tax revenue for �
that annual term. c14
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Upon expiration of this ILA on September 1, 2026 or upon payment of the final amount by Monroe
County,the percentage distribution in Amendment 2 to the ILA will apply and the County shall not pay
any additional funds from gas tax distributions after August 31, 2026.
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SECTION 3. NO ADJUSTMENT; MAINTENANCE OF RECORDS
No adjustment to the distributions specified in Section 2 above shall be made except in a written
document executed by all parties affected by the adjustment.
The City of Key West shall maintain adequate fiscal control and fund accounting procedures that comply
with generally accepted government accounting principles in order to assure that the funds are spent
for the purposes permitted by state statute. Any funds transferred by the COUNTY to the municipality
under this agreement and which are determined by the County Clerk, an auditor employed by the
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COUNTY or employed by the State to have been spent for a purpose not permissible under state law CL
must be paid back to the COUNTY with interest calculated pursuant to S. 55.03(1), FS, from the date of LO
any report that the funds were spent for an impermissible purpose.
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SECTION 4.TERMINATION.
This Agreement shall terminate on or about September 1, 2026, or after the final payment is made for
the period of 9/1/25 to 8/31/26 in accordance with Section 2 above, whichever occurs first.This
agreement will automatically terminate with no further action needed by either party.
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SECTION 5.ASSIGNMENT.
No Party may assign this Agreement or assign or subcontract any of its obligations under this Agreement
without the approval of the governing boards of the other Parties. All the obligations of this Agreement
will extend to and bind the legal representatives, successors and assigns of all Parties.
SECTION 6. SUBORDINATION.
This Agreement is subordinate to the laws and regulations of the United States, and the State of Florida,
whether in effect on commencement of this agreement or adopted after that date.
SECTION 7. GOVERNING LAWS AND VENUE.
This Agreement is governed by the laws of the State of Florida and the United States. Venue for any CL
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dispute arising under this Agreement must be in Monroe County, Florida. In the event of any litigation,
the prevailing party is entitled to a reasonable attorney's fee and costs.
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SECTION 8. NOTICES.
Notices in this Agreement, unless otherwise specified, must be sent by certified mail to the following:
COUNTY:
County Administrator
1100 Simonton Street
Key West, FL 33040 �
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County Attorney c14
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P. 0. Box 1026
Key West, FL 33041
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KEY WEST:
City Manager&
City Attorney
P. O. Box 1409 _
Key West, FL 33041
SECTION 9. FULL UNDERSTANDING.
This Agreement is the parties' final mutual understanding regarding the subject matter hereof. It
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replaces any earlier agreements or understandings, whether written or oral.This Agreement cannot be CL
modified or replaced except by another written and signed agreement.
SECTION 10. EXECUTION IN COUNTERPARTS.
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This Agreement may be executed in any number of counterparts, each of which shall be regarded as an
original, all of which taken together shall constitute one and the same instrument and any of the parties <
hereto may by signing any such counterpart.
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In Witness Whereof, each party has caused this Agreement to be executed by its authorized
representative.
(SEAL) BOARD OF COUNTY COMMISSIONERS
KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA
By By:
As Deputy Clerk Mayor/Chairperson
(SEAL) CITY OF KEY WEST
ATTEST:
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By: By:
Clerk Mayor
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