Agenda - 06/26/2006
CITY OF WOODBURN
URBAN RENEWAL AGENCY
JUNE 26, 2006 - 6:45 P.M.
KATHRYN FIGLEY, MAYOR
WALTER NICHOLS, COUNCILOR WARD J
RICHARD BJELLAND, COUNCILOR WARD II
PETER MCCALLUM, COUNCILOR WARD III
JAMES COX, COUNCILOR WARD IV
FRANK LONERGAN, COUNCILOR WARD V
EUDA SIFUENTEI, COUNCILOR WARD VI
CITY HALL COUNCIL CHAMBERS - 270 MONTGOMERY STREET
1. CALL TO ORDER
2. ROLL CALL
3. CONSENT AGENDA
A. Urban Renewal Agency minutes of June 12, 2006
Recommended Action: Approve the minutes.
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4. GENERAL BUSINESS
A. Resolution adopting a budget for fiscal year 2006-07, making 3
appropriations and levying faxes
Recommended Action: Adopt the resolution.
B. Reimbursement Agreement for Services, Materials and 5
Projects
Recommended Action: The Urban Renewal Agency and
the City Council approve and authorize, respectively, the
Chair of the Agency and the City Administrator to execute
the attached reimbursement agreement between the
Woodburn Urban Renewal Agency and the City of
Woodburn for fiscal year 2006-07.
5. PUBLIC HEARINGS
None.
6. PUBLIC COMMENT
7. ADJOURNMENT
June 26, 2006
Urban Renewal Agency
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URBAN RENEWAL AGENCY MEETING MINUTES
JUNE 12, 2006
TAPE
READING
0001 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN,
COUNTY OF MARION, STATE OF OREGON, JUNE 12,2006.
CONVENED. The Urban Renewal Agency meeting convened at 6:45 p.m. with Chair
Figley presiding.
0010 ROLL CALL.
Chair Figley Present
Member Bjelland Present
Member Cox Absent
Member Lonergan Present
Member McCallum Present
Member Nichols Present
Member Sifuentez Absent
Staff Present: City Administrator Brown, Finance Director Gillespie, Public Works
Director Tiwari, City Recorder Tennant
0038 CONSENT AGENDA.
A) approve Urban Renewal Agency Minutes of December 12, 2005.
MCCALLUM/NICHOLS... adopt the Consent Agenda as presented. The motion
passed unanimously.
0068 PUBLIC HEARING: WOODBURN URBAN RENEWAL BUDGET FOR FISCAL
YEAR 2006-07.
Chairperson Figley declared the public hearing open at 6:48 p.m..
Finance Director Gillespie stated that the Urban Renewal Budget Committee has
recommended a budget for fiscal year 2006-07 in the amount of $2,460,000 which
provides funding for Debt Service ($1,823,500), Contingency ($294,500), and a Reserve
for Bond Indebtedness ($342,000). Projects in the proposed budget include Phases II and
III street widening and renovation improvements to Front Street from Cleveland Street
north to Highway 214, debt service costs, and reimbursement to the City for special
administrative, legal and auditing services relating to the Urban Renewal program.
No one in the audience commented on the proposed Urban Renewal Agency budget for
fiscal year 2006-07.
Chairperson Figley closed the public hearing at 6:50 p.m..
BJELLAND/NICHOLS... draft a budget resolution based on the Budget Committee's
recommendation including allowable budget adjustments that do not change the tax levy
requirement. On roll call vote, the motion passed unanimously.
Page 1 - Urban Renewal Agency Minutes, June 12,2006
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URBAN RENEWAL AGENCY MEETING MINUTES
JUNE 12,2006
TAPE
READING
0235 ADJOURNMENT.
NICHOLS/MCCALLUM... meeting be adjourned. The motion passed unanimously.
The meeting adjourned at 6:52 p.m..
APPROVED
KATHRYN FIGLEY, CHAIR
ATTEST
Mary Tennant, Recorder
City of Woodburn, Oregon
Page 2 - Urban Renewal Agency Minutes, June 12,2006
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WOODBURN
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June 20, 2006
TO:
FROM:
Urban Renewal Agency Board ~~ ugh City Administrator
Ben Gillespie, Finance Director I , f\
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Adoption of Woodburn Urban Renewal Agency's 2006-07 Budget
SUBJECT:
RECOMMENDATION:
That the Urban Renewal Agency Board adopt the attached resolution setting
the budget for 2006-07.
BACKGROUND & DISCUSSION:
On May 20, 2006 the Budget Committee concluded their hearing on the
Woodburn Urban Renewal Agency's 2006-07 bUdget and unanimously
recommended that the budget document be forwarded to the Board of the
URA for the next phase of the budget process.
As required by Oregon Budget law, the Board conducted a public hearing on
June 12, 2006 to consider a URA budget of $2.460,000. The Board accepted the
Budget Committee's recommendation and made no changes.
FINANCIAL IMP ACT:
The attached ordinance is consistent with the budget policies adopted by the
Budget Committee in January 2006.
Agenda Item Review: City Administrator
City Attorney
F. / ~v// !.-1
Inancec~ ,
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RESOLUTION NO. 06-01
A RESOLUTION ADOPTI~G A BUDGET FOR FISCAL YEAR 2006-07, MAKING
APPROPRIA TIOl'lS AND LEVYING TAXES.
THE WOODBU&'l URBAN RENE\V AL AGENCY RESOLVES AS FOLLOWS:
Section 1. That the budget for fiscal year 2006-2007 is hereby adopted as set forth
below.
Section 2. That the budget amounts for the fiscal year beginning July 1, 2006, and for the
purposes shown below, are hereby appropriated:
DEBT SERVICE FUND:
Debt Service
Operating Contingency
$ 1,823,500
294.500
TOT AL APPROPRIA nONS
$ 2,118,000
Unappropriated Requirements:
Reserve for Urban Renewal Agency Debt
$ 342.000
TOT AL UNAPPROPRIATED REQUIREMENTS
$ 342,000
TOT AL 2006-2007 URBAN RENEWAL BUDGET
$ 2,460,000
Section 3. That the Woodburn Urban Renewal Agency hereby rcsolves to certify to the
County Assessor a request for the Woodburn Urban Renewal Plan Area for the maximum
amount ofrevcnue that may be raised by dividing the taxes under Section lc, Article IX of the
Orcgon Constitution and ORS Chapter 457.
Approved as to Form
Legal Counsel
Date
APPROVED
KATHRYN FIGLEY, CHAIR
Passed by the Agency
Submitted to the Chair
Approved by the Chair
ATTEST
\1ary Tennant, Recorder
City of Wood bum, Oregon
Page I - Resolution No.06-01
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June 26, 2006
FROM:
Woodburn Urban Renewal Agency
Honorable Mayor and City counci~
John C. Brown, City Administrat~
TO:
SUBJECT:
Reimbursement Agreement for Services, Materials and Projects
RECOMMENDATION:
It is recommended that the Urban Renewal Agency and the City Council
approve and authorize, respectively, the Chair of the Agency and the City
Administrator to execute the attached reimbursement agreement between the
Woodburn Urban Renewal Agency and the City of Woodburn for fiscal year
2006-07.
BACKGROUND:
Urban Renewal law requires tax receipts received by an urban renewal agency
to be used to retire debt. Indebtedness can be established by issuing bonds or
similar debt instruments, through loans from public or private agencies, or by
contractual arrangement.
In April 2005, the City Council and Urban Renewal Agency authorized the
execution of a reimbursement agreement for fiscal years 2004-06. This
established the debt necessary to meet legal requirements. Reimbursements of
$1,597,500 were anticipated during the term of the agreement, related to the
Plaza Project ($325,000), Phases 1 and 2 of the Front Street Project ($1,251,000),
and for administrative, legal, and financial consulting services ($21,500). The
Agency reimbursed the City $325,000 for the Plaza, $611,000 for Phase 1 of the
Front Street Project and $5,000 for consulting services during the period.
DISCUSSION:
Tax receipts of $444,000 are estimated to be received in 2006-07. As indicated in
the Background, these funds must be used to retire indebtedness.
Agenda Item Review:
City Administrat~
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City Attorney _
Finance
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Honorable Mayor and City Council
June 26, 2006
Page 2
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Since the City and Agency executed the last reimbursement agreement, the
Agency issued $1,850,000 in debt, through a private borrowing. Debt service on
this amount is $233,000 in 2006-07
In 2006-07, the City will concentrate on two projects: Front Street reconstruction
and widening, Phases 2 and 3. The Agency's share of the cost of these projects
is $1,584,000, which includes a ten percent contingency. In addition, budgeting
for 2006-07 requires the Agency to support the cost of its annual audit and
specialized legal and consulting services ($6,500). Expenses will be budgeted in
City accounts, and reimbursed by the Agency pursuant to this agreement.
Funds necessary to reimburse the City will be provided from the urban renewal
funds on hand, including the balance of private borrowing completed in 2005-
06 and tax proceeds for 2006-07.
The attached agreement facilitates the Agency's reimbursement of costs
advanced by the City for the fiscal year. This is the same agreement format
approved by the Council and Agency in 2005 and was reviewed and approved
by the City's independent urban renewal counsel. Accordingly, your approval
of the attached agreement is respectfully recommended.
FINANCIAL IMP ACT:
The attached agreement facilitates, consistent with the schedule provided in
Exhibit A to the Agreement, debt of the agency, and repayment to the City of a
not-to-exceed total for Fiscal 2006-07 of $1,590,500.
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AGREEMENT FOR SERVICES BETWEEN WOODBURN URBAN RENEWAL
AGENCY AND CITY OF WOODBURN
This Agreement for Services (Agreement) is entered into between the City of Woodburn
(City), an Oregon municipal corporation, and the Woodburn Urban Renewal Agency
(the Agency), the urban renewal agency of the City of Woodburn, created pursuant to
ORS 457.035 through ORS 457.460.
Recitals
Whereas, by Ordinance No. 2283 the City activated its urban renewal agency pursuant
to ORS 457.055, and designated the City Council of the City of Woodburn to exercise
the urban renewal powers pursuant to ORS 457.045 (3); and
Whereas, by Ordinance No. 2298 the City Council adopted the Woodburn Urban
Renewal Plan (Plan), Section 1100 of which states, in part:
"...the Agency may borrow money from, or lend money to a public agency in
conjunction with a joint undertaking of a project authorized by this plan."; and
Whereas, Section 600 of the Plan identifies as projects which may be undertaken
pursuant to the Plan in the urban renewal area: A) Public Improvements including
construction and repair of parks, streets, and sidewalks; and C) Plan Administration
including personnel and other administrative costs incurred in management of the
renewal plan; and
Whereas, the City and the Agency work in partnership to accomplish the provisions of
the Plan adopted by the City Council and put before the Agency for implementation, and
Whereas, the City and the Agency wish to clarify the relationship between the City and
the Agency with respect to services to be provided by the City to the Agency, and the
Agency's obligation to pay the City for those services, and
NOW THEREFORE, the City and the Agency agree as follows:
Terms of Agreement
In consideration for reimbursement for the costs of services and materials and projects
according to the terms of this Agreement, the City will provide the following services and
materials to the Agency according to the terms of this Agreement:
1. Personnel Services.
1.1 City staff to provide all staff services required to implement and
administer the Plan and any other Agency activities. Staff assigned
to perform functions in support of the Agency will continue to be
PAGE 1 - CITY/AGENCY REIMBURSEMENT AGREEMENT, 2006-07
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employees of the City and will provide services to implement Plan
as directed by the Agency. The City will not charge the Agency for
these staff services pursuant to this Agreement. Nothing in this
Agreement, however, shall prevent the City from requiring
reimbursement from the Agency for these services in future written
agreements.
1.2 The City Administrator has final and exclusive authority over
decisions to hire, fire and discipline the City employees assigned to
perform functions in support of the Agency, under the City's
personnel rules and policies.
1 .3 Except as specifically provided in other sections of this Agreement
or as set out in a future written agreement of the parties, charges to
the Agency for materials will be the same as any inter-departmental
City charge.
2. Insurance.
2.1 The City will procure and maintain property and liability insurance
covering the Agency's activities at such levels as the Agency
deems necessary and appropriate. The City will not charge the
Agency for insurance premiums pursuant to this Agreement.
Nothing in this Agreement, however, shall prevent the City from
requiring the Agency to pay for this coverage in future written
agreements.
3. Professional and ConsultinQ Services.
3.1 The City and the Agency will consult with one another regarding
selection of independent contractors providing professional and
consulting services, including bond counsel and the financial
advisor for debt issuance for the Agency, if any; general or
specialized urban renewal consulting, and audit services for the
Agency.
4. Legal Services.
4.1 The Agency may obtain legal services from the City Attorney and/or
outside legal counsel as the Agency determines, in consultation
with the City, best meets the needs of the project or issue at hand.
The Agency shall not reimburse the City for legal services
requested of the City Attorney for the period of this Agreement.
Nothing in this Agreement, however, shall prevent the City from
requiring reimbursement from the Agency for these services in
future written agreements. The Agency shall be responsible for the
PAGE 2 - CITY/AGENCY REIMBURSEMENT AGREEMENT, 2006-07
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cost of legal services provided to the Agency by outside legal
counsel.
4.2 If legal services are provided jointly to the City and the Agency, the
City and the Agency will agree on a cost allocation for such
services prior to such services being rendered.
5. AccountinQ Services.
5.1 The City shall provide all accounting services related to the
Agency's debt service fund and investment of funds pursuant to this
Agreement. Nothing in this Agreement, however, shall prevent the
City from requiring reimbursement from the Agency for these
services in future written agreements. The City will not charge the
Agency for these accounting services pursuant to this Agreement.
6. Financial Matters.
6.1 Except as specifically provided herein, the City agrees that it will
not make any charge against any Agency account without first
obtaining the approval of the Agency.
6.2 The Agency will cooperate with providing all necessary financial
information to the City for the City to include in its Comprehensive
Annual Financial Report (CAFR).
6.3 The Agency's financial records will be available for inspection by
City at all reasonable times.
7. Public Improvements.
7.1 The City will act as the lead agency for the purpose of constructing
projects in the urban renewal area, and will be responsible for
project design and engineering, obtaining any planning approvals
and permits, for forwarding payment of any standard fees. and for
construction management for construction projects.
7.2 Projects that will be constructed in the urban renewal area during
the term of this Agreement, consistent with those shown on Exhibit
A, are joint projects of the City and the Agency. The Agency and
the City shall share the costs of these projects according to the
reimbursement schedule in Exhibit A.
7.3 All public improvements constructed by the City and Agency during
the term of this Agreement shall be accepted, owned, and
maintained the City after construction is complete.
PAGE 3 - CITY/AGENCY REIMBURSEMENT AGREEMENT, 2006-07
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8. Compensation. Agency shall pay to the City an amount not-to-exceed
$1,590,500 for the services and projects described in this Agreement
during the term of the Agreement. The parties have agreed to a schedule
for Agency's payment for such services and projects, which is attached
hereto and incorporated as Exhibit A. Exhibit A may be amended by
mutual agreement of the parties.
9. Term and Termination.
9.1 The term of this Agreement shall be effective July 1, 2006 and shall
continue through June 30, 2007, unless terminated pursuant to this
section.
9.2 Either party may terminate this Agreement at any time by giving the
other party written notice not less than ninety (90) days prior to the
proposed termination date.
DATED this day of June, 2006.
WOODBURN URBAN RENEWAL AGENCY
CITY OF WOODBURN, OREGON
Chair
City Administrator
PAGE 4 - CITY/AGENCY REIMBURSEMENT AGREEMENT, 2006-07
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EXHIBIT A
SCHEDULE OF SERVICES, MATERIALS, AND PROJECTS REIMBURSED
BY THE WOODURN URBAN RENEWAL AGENCY. 2006/07
Reimbursable
UR Consulting Services
Independent Legal Counsel
Audit Services
Front Street Reconstruction Project
(Phase II)
Front Street Reconstruction Project
(Phase III)
TOTAL
Total
Maximum
Reimbursement
$ 2,500
$ 1 ,500
$ 2,500
$ 803,000
$ 781,000
$ 1,590,500
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