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Item R06* 3:00 P.M. PUBLIC HEARING * BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: May 20, 2009 - KL Bulk Item: Yes No X Division County Attorney Staff Contact Person: Suzanne Hutton AGENDA ITEM WORDING: A public hearing for an Ordinance to impose a ninth -cent local option motor and special fuel ("gas") tax. ITEM BACKGROUND: The County imposes a six -cent local option gas tax on motor fuel. The State mandates a County fuel tax on diesel fuel under FS 206.87 and the County gets a portion of that from the State. At the November 14, 2007 meeting of the BOCC, discussion was held concerning the depletion of the County's gas tax reserves due to increased costs, the state legislature's limitations on ad valorem taxation, and the inability of the County to continue to service the road and bridge system and to conduct critical renovations for bridges nearing their 50-year life span. Options were provided to the BOCC to increase the gas tax or to levy special assessments. The BOCC directed staff to pursue the gas tax increase. PREVIOUS RELEVANT BOCC ACTION: Ordinance No. 16-1989 approving extension of the six -cent "gas" tax authorized by F.S. 336.025(1)(a). 12/19/2007 (Q-13) BOCC tabled to 2/20/2008 BOCC 2/20/2008 (P-2) BOCC denied request to hold Public Hearing 3/19/2008 (N-15) BOCC approved advertising Public Hearing for 4/16/08 4/16/2008 (Q-2) Public Hearing — Motion to Adopt failed due to lack of a four -fifths vote (3-1: Commissioner Spehar Opposed/Commissioner Neugent not present) 1/28/09 (0-4) BOCC approval to hold Public Hearing 3/18/09 in Marathon 3/18/09 (Q-3) BOCC continued public hearing to 5/20/09 in Key Largo CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval. TOTAL COST: COST TO COUNTY: None BUDGETED: Yes No SOURCE OF FUNDS: N REVENUE PRODUCING: Yes X No AMOUNT PER MONTH APPROVED BY: County Atty x OMB/Purchasing Risk Management DOCUMENTATION: Included X Not Required DISPOSITION: AGENDA ITEM 9 Year $500,000 WHEREAS, Florida Statute Section 206.41(1)(d) authorizes counties to impose a tax of one cent per net gallon on motor fuel, known as the "ninth -cent" fuel tax to be levied and used as provided in F.S. 336.021; and WHEREAS, Florida Statute Section 206.87(1)(b) mandates a "ninth -cent" fuel tax to be levied on diesel fuel, to be levied and distributed according to F.S. 336.025; and WHEREAS, the County has been receiving from the State a distribution of the mandate fuel tax on diesel fuel; and WHEREAS, current gas tax expenditures cover Maintenance, Engineering, Street Lights and Traffic Signal, distribution to municipalities, 7-year plan and cost allocation; WHEREAS, the gas tax fund balance has been steadily declining since FY 2001 due to annual expenditures exceeding annual revenues; and WHEREAS, Monroe County maintains 389 miles of roads in the unincorporated county and resurfaces those roads as needed; WHEREAS, there are 28 bridges in the unincorporated county which are maintained by the County and most of those bridges were built in the 1960s with a 50 year life span; and WHEREAS, there are approximately 10 years left with no funds available for major renovations necessary to extend the useful lives of the bridges which are maintained by the County; WHEREAS, drainage systems need to be added or restored, requiring reconstruction and resurfacing of roads; and WHEREAS, road resurfacing has been temporarily delayed in some areas of the unincorporated county due to new sewer systems and resurfacing will be needed in the near future; and Ninth Cent Fuel Tax Ordinance 2009 WHEREAS, the County is seeking to enact an ordinance imposing an additional five (5) cents local option fuel tax to generate approximately $250,000.00 per penny (or $1,250,000.00) per year; and WHEREAS, an additional ninth -cent local option fuel tax on motor fuel is needed to provide funding, particularly for the renovations of the bridges and other critical major renovations of roads; and WHEREAS, an additional ninth -cent local option fuel tax on motor fuel can be accomplished by a majority plus one vote of the BOCC or by an ordinance creating a referendum on the November 2008 ballot; and WHEREAS, implementation of an additional gas tax will spread the costs to both residents and visitors using the County's roads as opposed to special assessments which would place the full burden on County residents; and WHEREAS, unless a revenue source additional to the existing local option fuel tax can be secured, the current level of services will have to be reduced and the delay for needed road restorations and reconstructions and necessary revitalization of bridges will continue; now therefore MONROE COUNTY, FLORIDA SECTION 1. Section 2-321, Monroe County Code is hereby created to read: 2-321. NINTH -CENT MOTOR FUEL TAX. a B POSITION. Under the authority of F.S. 336.021 1 A effective Januga 1 2010, there is hereby imposed a one cent gas tax, to be designated the "ninth -cent fuel tax," upon every gallon of motor fuel sold in the County and taxed under the provisions of part I or part 11 of Chapter 206 Fla. Stat. COLLECTION. The tax in this section shall be collected and remitted according to the procedure in F. S. 336.021. (c) EFFECTIVE PERIOD. The tax levied in Section 2-321 shall commence on January 1, 2010, and be in effect for a period of thirty (30) years, unless repealed by the Board of County Commissioners, provided that no repeal shall in any circumstances materially or adversely affect the rights of the holders of bonds backed by the tax and outstandina on the effective date of the repeal. d) EXPENDITLTRES. The proceeds of the tax shall onlv be used for transportation expenditures as defined by Florida Statute Section 336.025(7) and which are: (1) Public transportation operations and maintenance; (2) Roadway and right-of-way maintenance and equipment and structures used primarily for the storage and maintenance of such equipment; (3) Roadway and right-of-way drainage; Ninth Cent Fuel Tax Ordinance 2009 2 Street lightiM 5 Traffic signs, traffic engineering, si nalization and pavement markings -, Bridge maintenance and operation; (7Debt service and current ex enditures for transportation capital projects in the fore gin ra ram areas. SECTION 4. SEVERABILITY. Should any provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, the same shall not affect the validity of this Ordinance as whole, or any part thereof, other than the part declared to be invalid. If this ordinance or any provision thereof shall be held to be inapplicable to any person, property or circumstances, such holding shall not affect its applicability to any other person, property or circumstances. SECTION 5. CONFLICT WITH OTHER ORDINANCES. All ordinances or parts of ordinances in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION 6. INCLUSION IN THE CODE OF ORDINANCES. The provisions of this Ordinance shall he included and incorporated in the Code of Ordinances of the County of Monroe, Florida, as an addition or amendment thereto, and shall be appropriately renumbered to conform to the uniform numbering system of the code. SECTION 7. EFFECTIVE DATE. This Ordinance shall take effect on , provided that this Ordinance shall be filed with the Department of State as provided in section 125.66(2), Florida Statutes. PASSED AND ADOPTED by the Board of County Commissioners of Monroe County, Florida, at a regular meeting of said Board held on the day of 12009. Mayor George Neugent Mayor Pro Tern Sylvia Murphy Commissioner Kim Wigington Commissioner Heather Carruthers Commissioner Mario Di Gennaro (SEAL) BOARD OF COUNTY COMMISSIONERS Attest: DANNY L. KOLHAGE, Clerk OF MONROE COUNTY, FLORIDA By Deputy Clerk By Mayor/Chairperson MONROE COUNTY ATTORNEY OVED AS TO i� N. NU N cNT�ro eY -.0 _ z Ninth Cent Fuel Tax Ordinance 2009 0 Olk 4A 0) •r A 0011�11 •prr IA a 0 CL J v ; V ap.r �4) $/ 6 apv 4J W r� � � A LLJ N CD 0 C _co a h n 0 LM 0% O • r� V ® o p® ® r h v� OIL L! rA i O A F L $ •> 4�'� 4 Cal CL L .RJ = o c 0 4 � � w �; '> , a .- �- N c �- O ca = o a o a ncr, 12:-J •^ aU a u u.c 'cUj .,._ .� rr w ® ® 40 0 Lip i t� 9 qA w L.% 0 ❑ 0 � ❑ .a.J �r � Z ® C Q 4 .— L _ �- u Q 4--1 P-e t < J J J V V � Z pt -.0 C-! r C'� Ol v— *�D Cam! r-- M V f n F �� M kn h5 q I k m M I Rt+ pp�� N N A M M {*7 Q M d N N M P. Y.1 I,tY _I V1, wr FSR Ut V! 7vl Vt � 3 Wit s ~ u $ a SINS � g [3 y w°- . � � � � � ( ! � � � . § 7 k�.__ URt,��� � ®---�_ � 40 � � § d U d rl J § �� m___ � § �7 2 §777$2 wt \7714�% � U3 | ... .. . � M (� _ k �- ) §6 �f k ) § / I7 4-� tA .a? w Q? w 0 _.:31 co `ice co �� ? Q `wt CP U 0 ® D 0 s CL CD CL CL Ln Ln 00 K �r lCN l.� T 1 co 0 _0/�.( O Ln lO ® �L O �. 0 Ln C Ln va n m ca W u ® '°° ® C) ® C) o •. a% •% ILL) M•� 5 •r Qr (1) Eli ai Qi Qa Qa v s CL 6A 1.J 61 It b if Y�pnoa V) a CL i d 6 ' 7 0% ^ 0% sk W O VI- �F— �� i L. cu .1 i ki �i �i Hill ;IIII 111 IDIOM p�� U Asa y im u HIN I a I � IN I�I� Alll I� 1111111 UP 111111 11111111111 NNOUNI I 111111111 �i inn u Hill I I I r i i m IIIY nll NIIII A III iue� � mA �esAo c go dL IL a a 0 N YII I 3 IIIIII 1111� I I �II s - - - - - - - - - - - - - - 11111111 I� ItlI�IN I 191�I I III I I IN 1 11 HIM I '1 milli 11 / £ § II ON i►� � • ��� Page I of 1 Peters -Katherine From: Shawn D. Smith 1sdsmith@keywestclty.com1 Sent: Tuesday, May 05, 2009 8:55 PM To: Mutton -Suzanne; ken_fields@islamorada.fl.us; Ron Sutton; bumettc@ci.marathon.fl.us; dsmhs@tior'Ida-taw.com; Jim Scholl; Jmorates@swmwas.com; I.Arango@wsh-law.com; mayor@keyeolonybeach.net; NBoniske; tWlaw@bellsouth_net Cc: Deters -Katherine Subject: RE: Revision -very minor The Ke Nest City Commission urtanimously approved the revised a R�ment this evening. I will transmit an executed agreement to the County Attorney_' Thank you all for your efforts on this agreement Shawn Shawn D. Smith Key West City Attorney , 525 Angela Street Key West, Florida 33040 (305) 809-3770 telephone (305) 909-377I facsimile sdsmith@keywestcity.com From: Hutton -Suzanne <Hutton-Suzanne@MonroeCounty-FL.Gov> Sent: Tue, 4/28/200912:12pm To: ken.fields@islamorada.fl.us ; City Clerk - Key Colony Beach <cityclerk@}a keycolonybeach.net> ; burnettc@ci.marathon.fl.us ; dsmits@florida-law.com ; Jim Scholl <jscholl@keywestcity.com> ; jmorales@swmwas.com. ; LArango@wsh-law.com ; mayor@keycolonybeaeh.net ; NBoniske <NBoniske@wsh- law.com> ; Shawn D. Smith <sdsmith@?a keywestcity.com> ; twlaw@bellsouth.net Cc: Peters -Katherine <Peters-Katherine(7a mouroecounty-fl.gov> Subject: Revision - very mirror If it is not too late, Islamorada has requested additional language in 3.8 to reflect if and when an ordinance passing additional gas tax gets passed. I inserted: On rovai of an ordinance leaving same. If that is OK with everyone, please substitute this version for what was previously sent. And I am taking no more requests. We have to reach an end. In fact, I am not too sure as to whether Key West, which has this on their agenda next week, can make that change at this late date. SV4.V 'WOO. County Attorney Monroe County FO Box 1= Key West, FI. 33041-1026 3©5-282.34TU 5/b/2009 Page 1 of 1 Peters -Katherine From: Jimmy Morales [JMorales@stearnsweaver.comj Sent: Tuesday, April 28, 2009 12:80 PM To: Hutton -Suzanne; ken.iields@islamorada.fl.us; Ron Sutton; bumeitc@ci.marathon.ii.us; dsmits@florida-law_oom; ischoll@keywestcity.com, LArango@wsh-law.com; mayor@keycolonybeach.net; NBoniske; sdsmith@keywestcity.com; tuulaw@bellsouth.net Cc: Peters -Katherine Subject; RE: Revision -very minor Works for me. Thanks From: Hutton -Suzanne [mailto:Hutton-Suzanne@MonroeCamty- FL.Gov] Sent: Tuesday, April 28, 200912:13 PM To; ken.flelds@islamorada.fl.us; City Clerk - Key Colony Beach; burnettc&i.marathoriftus; dsmtts@flarida-law.c.om; jscholl@keywestc.ity.com; Jimmy Morales; LArango@wsh-law.com; meyor@keyoolonybeach.net; NBonlske; sdsmith@keywestcity.com; twlaw@bellsouth.net Cc: Peters -Katherine Subject: Revision - very minor If it is not too late, Islamorada has requested additional language in 3.6 to reflect if and when an ordinance passing additional gas tax gets passed. I inserted: upon approval of an ordinance 1e 3dLrLg same, If that is OK with everyone, please substitute this version, for what was previously sent. And I am taking no more requests, We have to reach an end. In fact, I am not too sure as to whether Key West, which has this on their agenda next week, can make that change at this late date. Sqamre rcr q County Attomey Monroe County PO Box 1028 Key West, Ff. 33041-1026 305-292.3470 Notice: My email address has changed. The domain name has changed from swmwas.com to stearnsweavercom. Please make a note of it. CONFIDENTIALITY NOTICE The Information contained in this E-mail message is attorney privileged and confidential information intended only for the use of the Individual(s) named above_ if the reader of this message Is not the Intended recipient, you are hereby notified that any dissemination, distribution or copy of this communication is strictly prohibited, If you have received this communication in error, please contact the sender by reply E-mail and destroy all copies of the original message. Thank you. CIRCULAR 230 DISCLOSURE: To ensure compliance with recently -enacted U.S. Treasury Department Regulations, we are now required to advise you that. unless otherwise expressly indicated, any federal tax advice contained in this communication. Including any attachments. is not intended or written by us to be used, and cannot be used. by anyone for the purpose of avoiding federal tax panathos that may be imposed by the federal government or for promoting, marketing or recommending to another party any tax-talated matters addressed herein. SI512009 Hutton -Suzanne From: Mayor Ron Sutton [mayor@keycolon�beach.net] Sent: Friday, April 17, 2009 9:50 AM To: Hutton -Suzanne Subject: gas tax Suzanne, T;.still would like to see the constitutional tax come back,this ILA has been in place and worked for years.If the county needs the 1 to 5 cent tax they need to do it, but with a 5 cent local option gas tax Key Colony Beach comes up $11,754.00 shoat. x would hope that the county would sign a separate ILA with us to get us equal to where we were with the constitutional tax if dose not happen. Thank You Ron Sutton 1 '�Jvme'vl Refunds and Distribution Revenue Accounting Sub Process P.Q. Box 6609 Qe�rrr Tallahassee, FL 32399 oru�uri mire axacea� r March 17, 2009 WS 23 Sonny McCoy, Maym Monroe County Board of Commissioners 1100 Simonton Street, Suite 2.05 CDUNV Key West, FL 33040 After a recent review of our riles it has been determined that Monroe Cnunty's interlocal agreements with Islamomdat and the City of Marathon expire on June 30, 2i109. It is necessary to notify the Florida Department of Revenue, in writing, ofMonroe County's intent to let this agreement expire or extend it. If the Commission plum to extend the agreement, it is essential that a new one be adopted by July 1, 2009 and a copy be provided the Florida Department of Revenue also by July 1, 2009 as mandated by Chapter 336.025(5)(a), Florida Statutes. Mayor McCoy, if you have any questions about this matter, please feel free to contact me at (850) 487-1152. Sincerely, Bruce H. Wiiliams Finance and Accounting Director III Revenue Accounting Sub -Process BHWibl cc: Monroe County File Chtd $Uppott €nfareeW4M — Ann Cofin. Dj-efar ® Gw=1 Tax Admetgat On — Jtm Evnrr axvlas p(p"Tax4Ventght—JaaW5MAd8m&0rro"aAdnotalsliveSammi—NAYKew.Dndarrt nabon8amces—T0nyPQW0 Dlrectnr (854) 4874150 www.myffcdda.cam1dar FA)(: (850) 921-1171 p< Jiprx �alll= CYtyol'ilte city eys."v�est - I February 27, 2009 THE CITY OF KEY WEST P.O. Box 1409 KEY WEST, FL 33041-1409 Mr. Roman Gestesi County Administrator 1100 Simonton Street — Suite 205 Key West, Florida 33040 Re: Gas Tax County Attorney Letter, dated January 29, 2009, same subject Dear Roman, 525 Angela Street (305) 809-3888 FAX 809-3886 jscholl@keywestcity.com The City of Key West has scheduled a public workshop on March 10, 2009 with the City Commission to discuss and formulate a final City position with regard to the intentions of the County of Monroe as outlined in the subject letter. Your request to provide input no later that February 27,n 2009 is made difficult since input at this date would only be Staff level recommendations, yet to be validated by the Commission. The final position/recommendations of the March 10, 2009 workshop will be submitted to the County no later than March 13, 2009, prior to the BOCC March 18'h public hearing. In an effort to at least give you some indication of Staff s thinking, we have summarized some initial thoughts below. Remember, final recommendations and/or positions will be forthcoming. 1. 1 to 5 Cent Local Option Gas Tax — A recommendation to the BOCC of City Commission support for the imposition of a 1 to 5 cent local option gas tax will be forthcoming after the workshop. 2. Constitutional Gas Tax — As we currently do not share in the distribution the City of Key West reserves the right to participate in any future distributions and to further be a participant in any discussions concerning the distribution thereof. 3. 6 Cent Local Option Gas Tax - City of Key West reserves the right to participate in any discussions concerning the current of future distribution thereof, and further puts forth the position that any new ILA must include a distribution percentage equal to or greater than the current 36.5 percent of total County collections as defined in Florida Statues. Key to the Caribbean - Average yearly temperature 77 ° F. Should you have any questions, please contact Assistant City Manager Mark Finigan at 305-809-3877. Sincerely, Scholl City Manager Key to the Caribbean - Average yearly temperature 77 0 F. IsCamorada, viCCaBe of Isfands February 27, 2009 VIA EMAIL AND FIRST CLASS MAIL Suzanne Hutton, Esq. Office of the County Attorney 1111 12'h Street, Suite 408 Key West, FL 33041-1409 RE: Local Option Fuel Tax and Constitutional Fuel Tax Dear Ms. Hutton: Islamorada, Village of Islands recognizes that with the current economic conditions, Monroe County will be considering additional local option gas taxes and the constitutional fuel tax. We are in receipt of your letter dated January 29, 2009 in which you request input from the municipalities regarding several fuel tax issues. At its meeting of February 26, 2009, the Islamorada Village Council considered the questions posed in your letter and unanimously agreed that we inform you of our stance on the issues that you will be considering during your March 18 meeting. The current Interlocal Agreement ("ILA") providing for Monroe County to share the existing local option fuel tax with Islamorada expires June 30, 2009. Islamorada supports entering into a new ILA with the County based on the current formula (lane miles). Our staff and Village Attorney are prepared to work with you to prepare such an. ILA. Regarding the proposed additional local option fuel tax (1 to 5 cents), the Village supports the sharing of any additional proceeds utilizing the formula in the existing ILA. We would suggest that these extra proceeds be incorporated into any new ILA proposed to the Village. Finally, in response to the County's contemplation of discontinuing sharing the constitutional fuel tax with the municipalities, Islamorada, Village of Islands is firmly opposed. That tax is generated in the municipalities as well as in unincorporated Monroe County, and should be shared equitably. We continue to support the existing ILA as written and executed. We look forward to working with you on this issue. Sincerel , Cathi Hill Mayor cc: Kenneth Fields, Village Manager Nina Boniske, Village Attorney 81990 Overseas Highway, Second Floor, Islamorada, FL • P 0. Box 568, Islamorada, FL 33036 Office 305-664-6400 • Fax 305-664-6464 - www.islamorada.fl.us CITY OF MARATHON, FLORIDA � 9805 Overseas Highway, Marathon, Florida 33050 Phone: (305) 743-0033 Fax: (305) 743-3667 www.ci. marathon.fl.us February 27, 2009 Suzanne Hutton, Esq. Office of the County Attorney 1111 12th Street, Suite 408 Key West, FL 33041-1409 RE: Gas Tax Dear Ms. Hutton: The City of Marathon is in receipt of your letter dated January 29, 2009, wherein you request input from the City regarding several issues related to the local option gas tax. Earlier this week, the City Council of the City of Marathon considered the questions posed in your letter and unanimously authorized me to send you this letter setting forth our input on said questions. With respect to the existing local option gas tax which is shared by Monroe County pursuant to individual ILA's with the municipalities, the City of Marathon supports having a new, single ILA with all the municipalities and the County, based on the lane miles and bridges in each jurisdiction (which is the current formula). Our City Attorney is prepared to work with you to craft and negotiate such an ILA. With respect to the contemplation of the County discontinuing sharing the constitutional gas tax with the municipalities, the City of Marathon is firmly opposed to any such move. That tax is also generated in both the cities and unincorporated Monroe County, and should be shared accordingly. We continue to support the existing ILA with the sharing formula contained therein. The City Council did not take a position on an additional 5-cent local option gas tax.. Please do not hesitate to contact me if you have any questions. Sincerelv, Cc: Roman Gastesi Mayor George Neugent CITY OF MARATHON. FLORIDA 9805 Overseas Highway, Marathon, Florida 33050 Phone: (305) 743-0033 Fax: (305) 743-3667 www.ci.marathon.fl.us February 27, 2009 Suzanne Hutton, Esq. Office of the County Attorney 1111 12�h Street, Suite 408 Key West, FL 33041-1409 RE: Gas Tax Dear Ms. Hutton: The City of Marathon is in receipt of your letter dated January 29, 2009, wherein you request input from the City regarding several issues related to the local option gas tax. Earlier this week, the City Council of the City of Marathon considered the questions posed in your letter and unanimously authorized me to send you this letter setting forth our input on said questions. With respect to the existing local option gas tax which is shared by Monroe County pursuant to individual ILA's with the municipalities, the City of Marathon supports having a new, single ILA with all the municipalities and the County, based on the lane miles and bridges in each jurisdiction (which is the current formula). Our City Attorney is prepared to work with you to craft and negotiate such an ILA. With respect to the contemplation of the County discontinuing sharing the constitutional gas tax with the municipalities, the City of Marathon is firmly opposed to any such move. That tax is also generated in both the cities and unincorporated Monroe County, and should be shared accordingly. We continue to support the existing ILA with the sharing formula contained therein. The City Council did not take a position on an additional 5-cent local option gas tax. Please do not hesitate to contact me if you have any questions. Sincerely, NIKe Cinque Mayor Cc: Roman Gastesi Mayor George Neugent