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Agenda - 06/08/2009C ITY O F W OO D B U I\ N KATHRYN FIGLEY, MAYOR DICK PUGH, COUNCILOR WARD 1 .I. MEL SCHMIDT, COUNCILOR WARD II URBAN RENEWAL AGENCY PETER MCCALLUM, COUNCILOR WARD III JAMES COX, COUNCILOR WARD IV e C FRANK LONERGAN, COUNCILOR WARD V JUNE $~ ZOO7 ~ 6. ~.7 P.M. KRISTEN BERKEY, COUNCILOR WARD VI CITY HALL COUNCIL CHAMBERS - 27O MONTGOMERY STREET 1. CALL TO ORDER 2. ROLL CALL 3. CONSENT AGENDA A. Urban Renewal Agency minutes of June 9, 2008 1 Recommended Action: Approve the minutes. 4. PUBLIC HEARINGS A. Public Hearing to Consider the Woodburn Urban Renewal 3 Agency's 2009-10 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 2009-10, making 5 appropriations and levying taxes Recommended Action: Adopt the resolution. B. Reimbursement Agreement for Services, Materials and 7 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 2009-10. 6. PUBLIC COMMENT 7. ADJOURNMENT June 8, 2009 Urban Renewa/ Agency Page i ~' URBAN RENEWAL AGENCY MEETING MINUTES JUNE 9, 2008 DATE. COUNCIL CHAMBERS, CITY HALL, CITY OF WOODBURN, COUNTY OF MARION, STATE OF OREGON, JUNE 9, 2008. CONVENED. The Urban Renewal Agency meeting convened at 6:53 p.m. with Chair Figley presiding. ROLL CALL. Chair Figley Present Member Bjelland Present (6:55 pm) Member Cox Present Member Lonergan Present Member McCallum Present Member Nichols Present Member Sifuentez Absent Staff Present: Interim City Administrator Russell, City Attorney Shields, Assistant City Administrator Stevens, Finance Director Gillespie, Public Works Director Brown, Community Development Director Allen, Police Capt. Tennant, City Recorder Tennant CONSENT AGENDA. A) approve the Urban Renewal Agency minutes of March 10, 2008. MCCALLUM/COX... adopt the Consent Agenda as presented. The motion passed unanimously. PUBLIC HEARING TO CONSIDER THE WOODBURN URBAN RENEWAL AGENCY'S FISCAL YEAR 2008-09 BUDGET. Chair Figley declared the public hearing open at 6:55 p.m.. Finance Director Gillespie stated that following the May 19, 2008 hearing, the Urban Renewal Budget Committee recommended a budget for fiscal year 2008-09 in the amount of $3,022,548. The recommended budget will fund the Front Street improvement project from Cleveland Street to Highway 214, pay the debt service due on the bank loan, reimburse the City for special administrative, legal, and auditing services, and provide for adequate reserves for bond indebtedness. No one in the audience spoke either for or against the proposed budget. Chair Figley declared the public hearing closed at 6:56 p.m. RESOLUTION 08-02 ADOPTING A BUDGET FOR FISCAL YEAR 2008-09, MAKING APPROPRIATIONS, AND LEVYING TAXES. LONERGAN/NICHOLS.... adopt Resolution 08-02 as presented. On roll call vote, the motion passed unanimously. Chair Figley declared Resolution 08- 02 duly passed. Page 1- Urban Renewal Agency Minutes, June 9, 2008 ,, f . URBAN RENEWAL AGENCY MEETING MINUTES JUNE 9, 2008 REIMBURSEMENT AGREEMENT FOR SERVICES. MATERIALS. AND PRO TECTS FOR FISCAL YEAR 2008-09. Staff recommended the approval and authorization to sign a reimbursement agreement with the City for payments made out of City funds for urban renewal projects and miscellaneous expenses. Under Urban Renewal law, tax receipt revenues received are to be used for debt retirement such as bonds, loans from public or private agencies, or by contractual arrangement. COX/LONERGAN... 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. The motion passed unanimously. AD.TOURNMENT. NICHOLS/MCCALLUM... meeting be adjourned. The motion passed unanimously. The meeting adjourned at 6:58 p.m.. APPROVED ATTEST Mary Tennant, Recorder City of Woodburn, Oregon KATHRYN FIGLEY, CHAIR Page 2- Urban Renewal Agency Minutes, June 9, 2008 ~-~, /".~'~G ~'F`r --'?a ,~ ~~: ~~F , :~ ~~~ '~jOODBUR,~ r,r:~,y:,~~:r;r r<<v;~ June 8, 2009 TO: Mayor and City Council through City Administrator FROM: Ben Gillespie, Finance DirectoC SUBJECT: Public Hearing to Consider the Woodburn Urban Renewal Agency's 2009/10 Budget RECOMMENDATION: Conduct a public hearing and receive public comment on the Urban Renewal Agency's Budget Committee's recommendation, including allowable budget adjustments that do not change the tax levy requirement. BACKGROUND: On April 18, 2009, the URA Budget Committee concluded a hearing on the Woodburn Urban Renewal Agency's 2009/10 budget and unanimously recommended that the budget document be forwarded to the Board of the Urban Renewal Agency for the next phase of the budget process. As required by Oregon Budget Law, the notice of this hearing date, along with the financial summary, was published in The Woodburn Independent on June 3, 2009. The financial summary documents an Agency budget totaling $2,031,000. DISCUSSION: No changes to the Budget Committee's Recommended Budget are proposed. FINANCIAL IMPACT: The proposed budget is consistent with the budget policies adopted by the Budget Committee in January 2009. Agenda Item Review: City Administrator City Attorney~~~~=~ Finan Beginning Fund Balance 2,443,548 2,447,797 1,486,000 -957,548 -39.2% Property Taxes 460,301 494,436 524,000 519,000 530,000 6,000 1.1% Interest Income 96,937 96,226 55,000 49,203 15,000 -40,000 -84.4% TOTAL EXPENDITURE 557,238 590,662 3,022,548 3,016,000 2,031,000 •991,548 -32.8% By Object Class 2006-07 2007-08 2008•09 2008•09 2009-10 Change Change Object Class Expended Expended Amended Yr End Est Recommed ($) (%) Principle 196,920 163,638 2,230,000 1,471,000 956,407 -1,273,593 57.1% Interest Expense 70,812 64,094 63,000 59,000 50,000 -13,000 -22.0% Endin Fund Balance 729,548 1,024,593 295,045 #DIVIO! TOTAL EXPENDITURE 267,732 227,732 3,022,548 1,530,000 2,031,000 •991,548 -32.8% By Program 2006-07 2007-08 2008-09 2008-09 2009•10 Change Change Program Expended Expended Amended Yr End Est Recommend ($) (%) Debt Service 267,732 227,732 3,022,548 1,530,000 2,031,000 -991,548 -32.8% TOTAL EXPENDITURES 267,732 227,732 3,022,548 1,530,000 2,031,000 -991,548 •32.8% • I 1MY ~ ~--*A ~~, r~'~~ 1~~ ~TOODBURN l~t;~~y, rt:tr~ i88; June 8, 2009 TO: Urban Renewal Agency Board thr ugh City Administrator FROM: Ben Gillespie, Finance Director SUBJECT: Adoption of Woodburn Urban Renewal Agency's 2009/10 Budget RECOMMENDATION: That the Urban Renewal Agency Board adopt the attached resolution setting the budget for 2009/ 10. BACKGROUND 8~ DISCUSSION: On April 18, 2009, the Budget Committee concluded their hearing on the Woodburn Urban Renewal Agency's 2009/10 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 pub~ic hearing earlier this evening to consider a URA budget of $2,031,000. The Board accepted the Budget Committee's recommendation and made no changes. FINANCIAL IMPACT: The attached resolution is consistent with the budget policies adopted by the Budget Committee in January 2009. Agenda Item Review: City Administrator City Attorney ~v'!`.l Fi RESOLUTION NO. 09-01 A RESOLUTION ADOPTING A BUDGET FOR FISCAL YEAR 2009-2010, MAKING APPROPRIATIONS AND LEVYING TAXES. THE WOODBURN URBAN RENEWAL AGENCY RESOLVES AS FOLLOWS: Section 1. That the budget for fiscal year 2009-2010 is hereby adopted as set forth below. Section 2. That the budget amounts for the fiscal year beginning July 1, 2009, and for the purposes shown below, are hereby appropriated: DEBT SERVICE FUND: Debt Service Operating Contingency TOTAL APPROPRIATIONS Unappropriated Requirements: Reserve for Urban Renewal Agency Debt TOTAL UNAPPROPRIATED REQUIREMENTS TOTAL 2008-09 URBAN RENEWAL BUDGET $ 1,006,407 682,593 $ 1,689,000 $ 342,000 $ 342,000 $ 2,031,000 Section 3. That the Woodburn Urban Renewal Agency hereby resolves to certify to the County Assessor a request for the Woodburn Urban Renewal Plan Area for the maximum amount of revenue that may be raised by dividing the taxes under Section 1 c, Article IX of the Oregon Constitution and ORS Chapter 457. Approved as to Form Legal Counsel APPROVED Date KATHRYN FIGLEY, CHAIR Passed by the Agency Submitted to the Chair Approved by the Chair ATTEST Mary Tennant, Recorder City of Woodburn, Oregon Page 1 - Resolution No.09-O1 ~.!"""'~y~ F ~:~(t ~~~~~ WOODBURN rn:,,~:~~,,:.n ,FV., June 8, 2009 TO: Woodburn Urban Renewal Agency Honorable Mayor and City Council FROM: Ben Gillespie, Finance Director SUBJECT: Reimbursement Agreement for Services, Materials and Projects RECOMMENDATION: It is recommended that the Urban Renewai 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 2009/10. 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, 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. Subsequent annual extensions have extended the agreement to June 30, 2009. DISCUSSION: Tax receipts of $530,000 and interest of $15,000 are estimated to be received in 2009/10, and Beginning Fund Balance is forecast to be $1,486,000 , providing total resources of $2,031,000 for FY 2009/10. Of that amount, $342,000 must be reserved for debt service. The balance ($1,689,000) can be used only to retire debt. In September 2005, the Agency issued $1,850,000 in debt, through a private borrowing. Debt service on this amount is $228,000 in 2009/10. Agenda Item Review: City Administrator City Attomey ~~~ Fi Honorable Mayor and City Council June 8, 2009 Page 2 In 2009/10, the City will concentrate on completing the Front Street reconstruction and widening project. The Agency's share of the remaining cost of the project is $771,907. Budgeting for 2009/10 also requires the Agency to support the cost of an annual audit ($6,500). Expenses continue to 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. 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 for the previous four years. FINANCIAL IMPACT: 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 total for Fiscal 2009/10 of $778,407. 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: 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, 2009-1 O employees of the City and will provide services to implement Plan as directed by the Agency. 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 Consulting 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. 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 cost of legal services provided to the Agency by outside legal counsel. PAGE 2- CITY/AGENCY REIMBURSEMENT AGREEMENT, 2009-1 O 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. Accountina 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 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. 8. Compensation. Agency shall pay to the City an amount not-to-exceed $778,407 for the services and projects described in this Agreement during PAGE 3- CITY/AGENCY REIMBURSEMENT AGREEMENT, 2009-1 O 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, 2009 and shall continue through June 30, 2010, 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 May, 2009. WOODBURN URBAN RENEWAL AGENCY CITY OF WOODBURN, OREGON Chair City Administrator PAGE 4- CITY/AGENCY REIMBURSEMENT AGREEMENT, 2009-1 O EXHIBIT A Construction of Front Street $771,907 Audit 6,500 Total 778 407 PAGE 5- CITY/AGENCY REIMBURSEMENT AGREEMENT, 2009-1 O