Agenda - 06/09/2008CITY OF WOODBU RN KATHRYN FIGLEY, MAYOR
WALTER NICHOLS, COUNCILOR WARD 1
RICHARD BJELLAND, COUNCILOR WARD II
U RBAN RE hi EWAL AG E NICY PETER MCCALLUM, COUNCILOR WARD III
.IAMES COX, COUNCILOR WARD IV
FRANK LONERGAN, COUNCILOR WARD V
JuNe 9~ ZOO~ ~ 6.45 P.M. ELIDASIFUENTEZ,COUNCILOR WARDVI
CITT HALL COUNCIL CHAMBERS - 27O MONTGOMERY STREET
1. CALL TO ORDER
2. ROLL CALL
3. CONSENT AGENDA
A. Urban Renewal Agency minutes of March 10, 2008 1
Recommended Action: Approve the minutes.
4. PUBLIC HEARINGS
A. Public Hearing to Consider the Woodburn Urban Renewal 3
Agency's 2008-09 Budget
Recommended Action: Conduct a public hearing and
receive public comment on the Budget Committee's recom-
mendation, including allowable budget adjustments that do
not change the tax levy requirement.
5. GENERAL BUSINESS
A. Resolution adopting a budget for fiscal year 2008-09, making 8
appropriations and levying taxes
Recommended Action: Adopt the resolution.
B. Reimbursement Agreement for Services, Materials and 10
Projects
Recommended Action: Approve and authorize the Chair of
the Agency to execute the attached reimbursement
agreement between the Woodburn Urban Renewal Agency
and the City of Woodburn for fiscal year 2008-09.
6. PUBLIC COMMENT
7. ADJOURNMENT
June 9, 2008 Urban Renewa! Agency Page i
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UItBAItii RENEWAI, AGEIY~'Y MEETIi~TG I~INUTES
MARCH t4, 2U48
TAPE
READING
l~C~O1 DATE G4U~+~iCIL CHAMBERS, CITY HAI.L, CITY OF V[~(~OUBLTRrI,
CUUNTY QF M,A-ItI4N, STA'T'E UF UREGON, MARCH tU, 2{}t18.
CQNYEI~IE11. The U~an Renewal A~en~y m~ting ~onven~d at 6:43 p.m. ~tith ~hair
Figiey presiding.
0010 R4LL GAL~L.
Ghair Figley Pr~sent
Member Bjelland Fresent
Member Cox Present
Mernber Lon~rgan Frese~tt
Member McCallum Present
Member ~Iichals Present
Memb~r Sifitentez Absent
Staff Present: Ciry Administratc~r Brown, City Attc~rney Shields, Asst. City
Administraiar Stevens, Finance Director Gillespie, Police Captain Tennant, City
Recorder Tennar-t
~42~ URBAN RENEWAL AGENt~Y tVIINtiTES.
fYiCH4LS/MGCAI.LUM ... adopt the June 1 l, 2U47 minutes as pr~s~nteti. The matiar~
passed unanirnously.
~424 l~IN4~t FLAN AM~ND11~E1Y~' - I2ES#~}~,,UTIU~i NQ t,~;RA,2Q0&1
City Administratar Brawn stated that there are a numb~r a#'different vvays of dc~ing a plan
amendment ~nd depending an big the chan~e is woute~ dictate haw rtiuch public notice
and p~uhtic invalvement w~uld be r~uired. In this ease, it is a minor plan amendment
which wauld Glarify language that is included thraughc~ut rhe t:ltban R~n~wal Plan in
different places k~ut just nr~t as cnueh as it cou~d b~ sa the o~ty requir~ment ~s the adaptian
of a ~esolutic~n.
Member Cox stateti that his understanc~ing of the Resolution is that it seis farth ~ndin~s
a~f fact to justify why the Agency is ~,iving the ~naney which has aLready been ec~mmitted
in the Urban Rer~ewal Pian itsetf.
Ar~rninistrator Brown agreed and stated that the specif~city is r~quired ar~~rtime money is
being spent on a public buiiding under Oregon Revise~ Statutes. He stated that before the
Ager~cy was aciu~tly formed, discussians were helc~ with the Fir~ ~?ist~ict about it~ n~~ds.
~I`h~re had been a number af taxing a~encies in the propvseti urban renewal district that
~~vould have been affected in a greater or lesser share and the Fire District had tlze greatest
concerns about a patential loss in tax revenue dae tc~ their own capital needs fc~r ~re
station e~cpa~nsian and operating ~xpenses. The adapted p~an prc~vid~~ f~r sc~me funcis to
be transferred ta the Fir~ District during the urt~an ren~vval plan time period.
Pa~e t- t.~rb~r~ Ren~~~~al ~1~e~icy Mi~nutes, Nlarch I0, 20Q$
URBAN RENEWAI~ AGENCY MEET~i`iG 11~I~UTE~-
MARCH 10, 2048
Tr~PE
READIAtG
Member Cax stated that he was committal to this transfer of funds, hc~w~ver, he was
arnaz~d at Ch~ what the District was pmpasing ts build alon~ with tt~e cost ofthe project.
Administra~tor Brown stated that adopcivn of ihe Resalution e~rill mc>dify th~ p~an but
th~re will still need tQ be an intergovernmental agreernent between ~ity and ~ire District
ta transfer funds and that agreement, which is still b~ing develo~aed, shoutd be based on a
not ta exceed amount and ~a~ actual expenses. If the vvork cc~sts less, then tk~ere will be
less mon~X to he cnnveyai to ihe Fire District through this a;gr~~znent.
Member Lonergan questior~ed how many years it would have taken far ihe District to
acq~irc tlae $1 mil2ion in ta7c rcvenue that they would have rec~ived if the Lirban Renewal
Ptan had not been adopted.
Administrator Brown stat~d that he would need to da some r~search to see how much
mc~ney the Fire Distri~t has ~iven up on a~ a€nnual basis arid then fi~ure out haw many
years it took to ~et to a r~illian dollarsR H~wever, ~~ t~tt~ ~CIIO~V ~~~~ I~ WOtI~{~ ~~E' S~V~'~I
ye~rs into the Agencies life in terrns of fore~one ta~ces befare the district woutd have tc~s~t
~1 miliion. The Urban Rertewal Flan does provide same schedules that shc~w haw the
taxing agencies were affected and what each Qne gave up each year.
COI~/NiC'HO~.S,...adagt Resolutian Na. t.TR.A 2Q08-1.
Member Bj~ lland stated that nn page 2 of the Etesolutian, Seetion l anlending Subse~tian
604 ~- 7, fourth paragraph, the second sentenee dc~es nat re~d cnrr~ctly and it appears that
either attraetin~ or pronioting shauld be deteted.
~c~rninistratrrr Brawn stated that the ward "and" should be insert~d ~etr~reen attra+~ting
and pramatin~;.
COXfMCCALLtJNi.,. arn~nd the Resolutiqn f~y aciding the warc3 ~`and". °Tt~e m~ti4n to
amend passed unanimousiy.
The motion to adopt the Resalution as amended passed unanirnc~usly.
t~23~ 4DJUL~RNMENT.
MCCALLt1M/NiCHaLS,... meeting be adjourned. °~he motian passc+d u~animousty.
The meeting adjourned at a~proximatety 6:55 p.m..
AFPROVED:
KATHRYN FIGLEY, CHAIR
ATTEST
Mary Tennant, Recorder
City f~f ~4joodburn, Qregon
i'a r~e '-~; ~'~:~r " ,~~al t"~geney l~tinutes, :viareh l 0, 2008
2
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June 9, 2QUs
Tp: Mayor and Gity Cc~unci( through City Administrator
FROM: Ben Gill~spie, Financ~ Dirsctor
SiJBJECT: Public Hearing to Consider the Woadburn lJr6-an R~r~ewat Agency's
2~8-Q4 Budget
RECOMMENDATION:
Conduct a public hearing and receive
Gommittee's recarr~mendatian, ineluding
do not change the tax levy requiremenf.
RACK~RQUND:
public comm~nt on the Budget
allowabl~ budget adjustments that
{~n May 19, 2008, the Budget Corr~mittee concluded a hearing on th~
Wc~odburn Urban Renewal Agency's 20Q8-C~9 budget and unanimausly
recommended fhat the budget dQCUment be forwarded ta the Board af the
Urban Renewal Agency for the next phase of the budget process.
As required by Qregon Budget Law, the ncatice af th~is hearing date, along with
the financial ~ummary, was published in 7he Woodburn tndependent on May 31,
2448. The financial summary documents an Agency budget totaling $3,Q2~,548.
DI~.GUSS!(JN:
No changes to the Budget Committee's Reeammencled Budget are pr4posed.
FINANt~.IAI IMPACT;
The praposed bu~lget is consistent with fhe budget palicies adopted by th~
Budget Committee in January 2Q08.
,~.~~nc-ic~ It~m Revi~w: City Administ~ator,~ City Attorney 1~~'"-` Fin~
3
WooDBVxx Uxs~x REx~w~. AG~xc~r .Z008-09 Recommended Annuat Program Budget
BUDGET MESSAGE
Ladies and Gentlemen:
Presented for your approval and recommendation to the Woodburn Urban Renewal
Agency is the proposed Urban Renewal budget for 2008-09. The recommended budget
of $3,022,548 represents an increase of $646,853 (27.2%) from the revised budget for
2007-08. The budget will reimburse the City for the Agency's share of completing the
Front Street improvement project. The budget also supports debt service payments for
the borrowing transacted in 2005-06, maintains a required reserve for debt service,
reimburses the City for administrative costs, and includes a small contingency.
Statute requires the Agency to expend funds for debt service. The budget is comprised of
debt service appropriations, Contingency, and a Reserve for Debt Service (which is
required by the loan agreement). The Front Street project is a joint City/Agency project
and is budgeted in the City's Capital Improvement Program. The Agency reimburses the
City for its share of costs. Reimbursements are made in accordance with an agreement
between the City and the Agency. Debt was contractually established between the City
and the Agency and will be reestablished prior to June 30, 2008 for another year.
Because the tax increment received on an annual basis was insufficient to fund projects
on a pay-as-you-go basis, the Agency borrowed $1.85 million in 2005-06 to complete
Front Street. A debt service payment of $229,000 is included in this budget. $342,000
more is set aside as a debt service reserve, pursuant to the borrowing agreement.
Because the Agency is currently involved in only one project, and because decisions
remain to be made regarding projects to be undertaken in the future, no Capital budget or
CIP plan is presented for 2008-09. This is the last year this budget will be so
abbreviated. A downtown plan is being completed, which will recommend projects that
will form the basis for the Agency's six-year capital plans beginning in 2009-10 and
continuing through the life of the program. The Downtown Plan should be finished early
in calendar 2009. When it is, and additional financial analysis related to debt timing is
done, a comprehensive Agency budget and capital improvement plan can be developed.
This budget includes $2,050,000 for the Front Street project, which is $290,000 more
than was approved in 2007-08.
The Urban Renewal Plan represented a snapshot of renewal need at a point in time and is
not controlling on a project-by-project basis. The Agency can dedicate funds to projects
that are not in the Plan if those projects fit into the expenditure categories outlined in the
Plan, and the Agency can dedicate more or less funding to projects identified in the Plan
than was originally estimated based on changing needs and priorities.
It's important to remember that urban renewal is an incremental process. Changes occur
one at a time, over time. Urban renewal requires time to build momentum, and it builds
r:zomentum in two ways.
1 UrUan Reneix~al
4
Woonsvxrr U~ R~~~ A~~x~ 2008-09 Recommended Annual Program Budget
First, tax increment increases gradually, until a borrowing can be supported. Then work
is done. While that work is being done and that debt is being serviced, funding increases
to build capacity to borrow again so more work can be done. And so on. Depending on
cost, one project, such as Front Street, may be all an urban renewal agency can afford for
a period of years. So it is important that agencies select projects carefully, to have the
greatest positive influence on private investment. Our Agency has done this, thus far.
The Downtown Plaza created a city-center where none existed, and has had a positive
influence in upgrading the appearance of surrounding businesses. The Plaza is viewed as
a pivotal asset and a key attractor to mixed use development in the Downtown Plan that is
currently being drafted. Likewise, the Front Street project is integral to providing easy
access to the Downtown; necessary if more people are going to live in the area, and if
businesses there are to thrive.
Second, private investment must take root, and grow. Urban renewal will not succeed if
the Public is the only actor. The Public's role is to invest in projects that foster private
investment. This means providing infrastructure: streets, utilities, and open spaces - the
things public agencies do best; and the creation of incentives to entice private investars
who would otherwise look elsewhere to generate returns on their investments, until such
time as those incentives are no longer necessary because increasing property values and
enhanced economic vitality are investment incentive enough. Ultimately the success of
urban renewal relies on private investment, willingness to invest in properties and
business ventures, the amount or timing of which cannot be accurately predicted.
The projects the Agency undertakes and the programs it implements must generate the
maximum private investment in the urban renewal area. This is why a thoughtful and
thorough development strategy, in the form of a downtown plan, is so important. Staff is
making a concerted effort to work with the consulting team and the community to prepare
a practical plan that addresses all of the factors that influence private investment in, and
the vitality of, a downtown.
I am pleased to present this budget to you, and look forward to answering any questions
you may have regarding it.
Sincerely
Scott D. Russell
Interim City Administrator
2 Urban Reneix~~l
5
Woonsuxrr Ux~rr RExswu, qcBxcY
Z008-09 Recommended Annual Program Budget
' DEPARTMENT: URBAN RENEWAL
~~~~,~~, ; ~~,~, '' DIVISION: DEBT SERVICE
: " FUND: DEBT SERVICE
PROGRAM DESCRIPTION
This program repays the Urban Renewal Agency's debt obligations. Statute requires that
urban renewal funds be expended to support debt service. Revenues derived from
property tax increment support the fund. Urban renewal agencies do not have permanent
tax rates; they obtain funding through tax increment financing. Tax increment financing
allocates revenues to an agency based on the amount of the urban renewal area's excess
or "incremental" value, the amount of assessed value above a base value that was frozen
at a specific point in time. Woodburn's Urban Renewal frozen base value is based on the
2001 tax year. Urban renewal does not place an additional burden on taxpayers. Rather,
it shifts existing tax growth to the Agency from the taxing entities that would have
otherwise continued to receive it had the Agency not formed. In Woodburn's case, these
entities include the City of Woodburn, the County of Marion, the Woodburn School and
Fire districts, Chemeketa Community College and the Chemeketa Cooperative Regional
Library Service, and the Willamette Special Education District. Pursuant to State Law,
the State of Oregon "backfills" on an annual basis the amounts shifted away from the
School district. Proceeds for 2008-09 are estimated at $524,000. Debt obligations for
2008-09 are established in two ways: by contractual arrangement with the City of
Woodburri, for charges associated with audit, legal, and consulting services and for the
Front Street project; and for debt service of a$1,850,000, ten-year, obligation entered
into with Bank of America during 2005-06.
PROGRAM FINANCIAL SUMMARY
Account 2005-06 2006-07 2007-08 2007-08 2008-09 Change Change
Received Received Amended Yr End Est Recom'd (S) (°fo)
Working Capital CO 1,827,695 2,080,548 2,443,548 615,853 33.70%
PropertyTax 419,961 460,301 493,000 499,000 524,000 31,000 6.29%
Interest on Invest 54,857 96,937 55,000 92,000 55,000 0 0.00%
Note Proceeds 1,847,650 0 #DIV/0i
TOTAL REVENUE 2,322,468 557,238 2,375,695 2,671,548 3,022,548 646,853 27.23°k
Object Class 2005-06 1006-07 2007-08 100T•08 2008-09 Change Change
Expended Expended Amended Yr End Est Recom'd (5) (%)
Debt Service 806,758 267,732 1,999,500 228,000 2,293,000 293,500 14.68%
Equity 0 0 376,195 0 729,548 353,353 0.00%
TOTAL EXPENSE 806,758 267,732 2,375,695 228,000 3,022,548 646,853 2T.23%
3 Ur6~tn Renetir~al
6
WOODgURN jJRBAN RENEWAI. AGENCY 2008-09 Recommended Annual Program Budget
RECOMMENDED BUDGET
The recommended budget of $3,022,548 for 2008-09 represents a increase of $646,853
(27.2%) from the revised budget for 2007-08.
The Debt Service Budget of $2,293,000 increases 14.7 percent over 2007-08 and reflects
budgeting for the Front Street widening and renovation project ($2,055,000). This
budget also supports the cost of servicing the debt incurred in 2005-06 to pay for renewal
projects ($229,000) and reimburses the City for special administrative, legal, and auditing
services supporting the urban renewal program ($9,000).
Equity for 2008-09 includes a$342,000 reserve for bond indebtedness and a Contingency
of $387,548. The reserve for bond indebtedness represents 150 percent of the maximum
debt service amount, and is required pursuant the Agency's agreement with Bank of
America. Contingencies represent the amount of funding on hand after 2008-09
obligations are met.
POLICY ITEMS (Recommended)
O $2,055,000 in Debt Service increases the Agency's share of Front Street
improvements, from Cleveland Street to the High School including
undergrounding utility lines, renovating and widening the roadway streetscape,
and renovating and installing curbs, gutters, and sidewalk, and installing
landscaping and lighting.
O $9,000 in Debt Service maintains the Urban Renewal Agency's share of the cost
of a citywide audit ($3,000), and consulting services associated with project
planning and financing ($3,000) and specialized legal services ($3,000).
4 Urban Reneix~al
7
C~~
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, .+.> - a1t;f f #,V.r
,lune 9, 2QQ8
TQ: Urban Renewal Agency Board thraugh Interim ~ity Administrator
FROM: Ben Gillespie, ~inance Qire~tor
SUBJECT: Adt~ption of Woadburn Urban Renewal Ag~ncy's 2t~8-t~9 Bu+dget
~~~ ~ t i ~~~~j
That the Urban Renewal Agency Baard adapt the dttached resQ{uti4n setting
the budget for 2~08-C19.
BA~~Q~NQ ~~ISCU SIQN:
4n May 19, 2f)08, the Budget Commi~tee concluded their F~earing Qn the
WoQdburn Urbctr~ Renewctl Agency's 2Qa8-Q9 bud~et c~n~l u~nanir~nausly
recammended that the budget document be farwarded to the Soard c~f the
URA for the nex# phase of the budget process.
As required by C>regan Budget Law, the Bocard condueted a pubii~ he~ar~ng
earlier this evenin~ to consider a URA budget of $3,022,54$. The Board
occepfed the Budget Committee's re~ommendatit~n a~d ~nade no changes.
FINAtVC1Al ~NI~'lA~T:
The aitached resc~lution is cQnsisteni with the budge# polici~s adc~pfied by the
Budget Committee in January 2008.
Acenda It~m R~~ri~w:
Ci#y Administratar `~ Cify Attorney
8
RES~}LUTIQN ~U. 08•42
A RESUI.UTIQN ADOPTING A BUDGET FUR FISC,A-L YEAR 2~}08-Q9, MAKIt~VG
APPRUPRIATZUNS A,PTD LEYYING TAXES.
THE WQUDB~JRN URBAN RE1~1E1~AL AGEIYCY RESOLYES A9 ~4L,L(JWS:
Seetian 1. '~'hat th~ bud~et for fiscal yeaz 2Q08-05~ is hez~by adopted as set farth beir~w.
Sectiua 2. That the budget arnounts far the fiscal year be~inning July 1, 2C1(}8, and f+~r the
purpvses shown below, aire herehy apprcapriat.~d.
DE~T SERVICE FUNDr:
Debt Service
4peratin~ Conti~~en~ey
$ 2,293,OU0
3~7,5~8
T()TAL APPRt7~P`RIA'I"IQNS
~Tnapgr€-priated Reqnirements:
Reserve for Urban Renevval Agency I)ebt
Tf~TAL [[.~NN~PFRtJPRiAT`~L? REQUIREM~NTS
TOTAL 2008-Q9 ITI~BAI~ RENFWAI~ Bi1D~ET
~ 2,b$0,5~18
$ 342,(~Q
S 3~2,OU4
S 3,Q22,548
S~chcrn 3. "I'hat th~ Woodbum Urban Renewal Agency hereby r~solv~s tc~ certi~'y to the
Caunty Assessor a request fc~r the Woodbum Urban Renewal Pla~ Ar~a far the znaximum
amount of revenue that may be raised by d~viding the taares under Sectic~n l c, Article IX arf the
Qre~;c~n Cc~nstitution and QRS Chapter ~57.
`~~.~"~~~-~ ~ ~ 2~~ ~'
Appr4veci a~ ro Fc-rm
L~ga[ Gounset ~ ate
APPRtaVED
Passed by the ~lgency
Submitted to th~ Chair
Approv~ed by the Chair
ATTEST
~Iary Tennant, Recorder
t: ity of WoodE~urn. t~regon
I'a~ge I - ResAluti~n 1~n.08-02
KA"THRYl~1 FIC~LEY, CHAIR
9
~~~~µ~ '~`~~
~ i" ~~
F~..:~~~=~a..r ~,,,~~,
JUne 9, 2QQ8
TO: Woadburn Urban Renewai A~ency
M4~norak~le Mr~yor and Cify Couneif
~R4M: Ben Gille~pie, Finanee Director
~~~~~
SUBJECT: Reimbursement Agreer~nt for Servl~es, Mdterlals or~d Projects
REC4MMENDA~IQ1+~:
it is recommended thc~t the Urban RenewaC Agency a~d fihe City Covneil
approv~ and authorize, respectively, the Chair of the A~ency an~f the lnterir~t
City A~dministrator to execute fihe attached reimbursement agreement between
the Woadburn Urban Renewal Agency and th~ City of Woodburn fQr fiscal year
2008-Q9.
BACK~RQUf~,D:
Urbcan Renevval law requires tax receipts received by ar~ urbc~n renewal ~gency
#o be used to retire debt. indebtedness ean t~e establ~shed by issuing bonds or
similar det~t instruments, thro~gh loans from public or privqte ager~cies, car b~r
~contractual arrangement.
in April 2~5 the City Councii and Urban Renewal Agency authorized the
execution of a reimbursement ag~reement for fiseal''yeors 2pQ4-Q6. Subsequer~t
annual extensians have ext~nded the agr~ement to June 30, 2t~)8~
Dl~~,l~„~SION:
Tax receipts of ~524,000 and interest of $55,004 are estirnated to be rec~ive~! in
2008-09, and Beginning Fund Balance is fore~QSt fa be $2,443,54$, provi~ing
totQl resaurces of $3,022,548 for FY 2Q08-Q9. Of fhat amount, $34~2,OQ(~ musf be
reserved for debt service. The balance (~2,~80,54$j cctn be u~ed oniy ta refi~re
debt.
In Sepfiember 2005, the Agency issued $1,850,QOa in ctebfi, fhrcaugh a privqte
barrowing~. Debt service an this amounf is $229,QQQ in 2Q0$-09.
~'~
~± ;~r~,:,l~a It~m k~vie°~v: City Adminisirator~~~ Cify Atte~rney~~~1 ~i,~~<~;
10
HonQrable Mctyor and City Gouneii
June 9, 2008
Page 2
In 2Q0~-~9, the City wi11 cancentrate on compieting the Front Stee~t
reconstruct~an and widening pr4ject. The Agency`s share of the coxt of tl~e
project wos increased ta $2,05fl,~0. Budgeting fcar 2~}Q8-CY9 also requites fhe
Agency to support the cosf af an ar~nual audit, anel specaalized legal t~nc#
eons~(ting services ($9.OOOj . ~penses continue tr~ b~ buclgeted in Cify
occounts, c~nd reimbursed by the Agency pursuanfi to #his agreerr~ent. Funds
necessary tQ reimburse the City will be provided from the urban renewal funds
Qn hand.
The attached agreement faciiitates the Ager~cy's reimbursement of cosfs
advonce~l by the City for the fisca! year, This is the ~ame agreer~ent format
approved by fihe Caunci~ c~nd Agency for #he ~arevious three years.
FINAP~CIAI. IMPACfi•
The attoched agreement facilitates, consistent with the schedule provided ir~
Exhibit A to the Agreement, debt af the agency, and repaymen# ~o the C'tty af a
total for Fiscol Year 20a8-09 of $2,O~Q,Qf~.
11
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
iNhereas, 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:
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 - (~ITY!AGENCY REIMBURSEMENT AGREEMENT, 2008-09
12
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 Consultina 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. Leaal Services.
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/AG~NCY REIMBURSEMENT AGREEMENT, 2008-09
13
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 annual financial
statements.
6.3 The Agency's financial records will be available for inspection by
City at all reasonable times.
7. Public Imqrovements.
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/AGE~JCY REI(~4BURSEMENT AGREEMENT, 2008-09
14
8. Compensation. Agency shall pay to the City an amount not-to-exceed
$2,059,000 for the services and projects described in this Agreement
during the term of the Agreement. Payment shall be for the amounts
actually expended by the City for the services and projects listed on the
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, 2008 and shall
continue through June 30, 2009, 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, 2008.
WOODBURN URBAN RENEWAL AGENCY
Chair
CITY OF WOODBURN, OREGON
City Administrator
PAGE 4- CITY/AGENCY REIMBURSEMENT AGREEMENT, 2008-09
15
Exhibit A
CITY of WOODBURN
SCHEDULE of SERVICES, MATERIALS, and PROJECTS REIMBURSED by the
WOODURN URBAN RENEWAL AGENCY
Reimbursable
Management Consulting Services
Independent Legal Counsel
Audit Services
Front Street Reconstruction Project
TOTAL
2008/09
Maximum
Reimbursement
3,000
3,000
3,000
2,050,000
$2,059,000
16