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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/05/2011 - RESOLUTION 2011-055 AUTHORIZING THE MAYOR TO EXECUDATE: July 5, 2011 STAFF: Mike Freeman Christina Vincent AGENDA ITEM SUMMARY FORT COLLINS CITY COUNCIL 21 SUBJECT Resolution 2011-055 Authorizing the Mayor to Execute an Amendment to the Intergovernmental Agreement with the Fort Collins Urban Renewal Authority. EXECUTIVE SUMMARY At the June 7, 2011 meeting, Council requested the Urban Renewal Authority (URA) Board modify the Intergovernmental Agreement (IGA) between the City and the URA to formalize the requirement that, when the City advances funds to the URA in support of the URA’s activities, a loan agreement and promissory note accompany the advance of funds. BACKGROUND / DISCUSSION Council would like to formalize the process for loaning funds to the URA based on approved projects and eligible costs associated with the development. The URA continues to need funding from the City for projects until such time that the URA can obtain private financing with proven revenue streams sufficient to pay higher interest rates on its loans. The City wants to ensure the funding is appropriately dedicated to a project with a loan agreement and promissory note in place. FINANCIAL / ECONOMIC IMPACTS The URA will need to ensure that sufficient revenues exist to pay back any loans requested of the City. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. ATTACHMENTS 1. Existing IGA between the City and the URA 1 INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS, COLORADO AND THE FORT COLLINS URBAN RENEWAL AUTHORITY THIS AGREEMENT (“Agreement”) is entered into this ________ day of _______________, 2006, by and between the CITY OF FORT COLLINS, COLORADO, a municipal corporation (hereinafter the “City”) and the FORT COLLINS URBAN RENEWAL AUTHORITY, a body corporate and politic in the State of Colorado (hereinafter the “URA”), collectively referred to herein as the “Parties.” RECITALS WHEREAS, the City is a home-rule city and a municipal corporation duly organized and existing under and pursuant to Article XX of the Colorado Constitution and the Charter of the City (the "Charter"); and WHEREAS, the URA is a body corporate and has been duly created, organized, established and authorized by the City to transact business and exercise its powers as an urban renewal authority, all under and pursuant to the Colorado Urban Renewal Law, Section 31-25-101, et seq., Colorado Revised Statutes (the "Act"); and WHEREAS, pursuant to Sections 31-25-107 and 31-25-109 of the Act, the URA has the power and authority to issue or incur notes, interim certificates or receipts, temporary bonds, certificates of indebtedness, debentures, advances, or other obligations, including refunding obligations (collectively, the "Bonds"), for the purpose of financing the activities and operations authorized to be undertaken by the URA with respect to urban redevelopment projects in ac- cordance with an urban renewal plan and the Act, as approved by the City; and WHEREAS, both the Act and Section 18, Article XIV, of the Colorado Constitution authorize the City and the URA to enter into cooperative agreements, such as this Intergovernmental Agreement. WHEREAS, the City and the URA have determined that, for purposes of economy and efficiency of operation, it is in the best interests of the public that the operating staff and resources of the URA be provided by the City, subject to the terms and conditions of this Intergovernmental Agreement (hereinafter referred to as the “Agreement”); and WHEREAS, the City and the URA wish to express their mutual agreement on these matters as more fully set forth herein, and are authorized to enter into this Agreement pursuant to § 31-15-101 and § 31-25-105, C.R.S., respectively. NOW, THEREFORE, it is agreed by the parties as follows: 2 TERMS AND CONDITIONS 1. Definitions The terms used in this Intergovernmental Agreement shall have the meanings set forth in the Act. In addition, for the purposes of this Intergovernmental Agreement, the following terms shall have the meanings set forth below. "Fiscal Year" shall mean the fiscal year of the City, which commences on January 1 of each calendar year and ends on December 31 of the same calendar year. "Incremental Property Taxes" shall mean, for each Fiscal Year subsequent to the creation of any urban renewal area, all Property Tax Revenues in excess of the Property Tax Base Amount for the Urban Renewal Plan Area. "Property Tax" shall mean the real and personal property taxes produced by the levy at the rate fixed each year by the governing bodies of the various taxing jurisdictions within or overlapping the Urban Renewal Plan Area. "Property Tax Base Amount" shall mean the total valuation for assessment as certified by the County Assessor for the City of all taxable property within an Urban Renewal Plan Area as certified by the County Assessor for the City prior to the creation of such area. "Property Tax Revenues" shall mean the amount derived from the levy of Property Tax within any Urban Renewal Plan Area. “Urban Renewal Plan Area” shall mean a slum area, or a blighted area, or a combination thereof which the City Council designates as appropriate for an urban renewal project. 2. URA Employees Provided by City A. The City agrees to provide City staff, including but not limited to staff of the City Manager’s Office, Community Planning and Environmental Services, and Finance Department, and other employees, consultants, and staff (hereinafter collectively referred to as “City Staff”) to the URA on an as-needed basis for the operation and management of URA activities subject to the URA’s reimbursement to the City as provided in Section 5. The City Manager shall serve as the Executive Director of the URA. The City Attorney’s Office shall provide legal services to the URA, with the assistance of such special legal counsel as may be authorized by the City Attorney, as long as the members of the City Council continue to serve ex officio as the members of the URA Board of Commissioners. B. City staff time spent on URA activities shall be separately recorded and specifically documented for purposes of determining the appropriate reimbursement to the City in accordance with Section 5. It is the intention of the parties that the services performed by such employees on behalf of the URA shall not interfere with the ability of such employees to carry out their duties and responsibilities for the City. 3 3. Other Services In addition to providing staff employees for the URA, the City agrees to provide the URA with such other services as may be required in order to perform its public functions, including, but not limited to, accounting, treasury, management, procurement, personnel services, engineering services, and planning services, and other consultant services, provided however, that nothing herein shall be construed as prohibiting the URA from contracting with third parties to provide all or a portion of such services. It is the intention of the parties that the URA’s annual or any special financial audits shall be performed by an independent auditor. All costs of any such audit or financial services shall be paid by the City, subject to reimbursement by the URA as provided in Section 5 below. 4. Office Space; Furnishings; Equipment City staff working on behalf of the URA is authorized to utilize City office space, furnishings and equipment, including telephones, fax machines, printers, photocopiers, computers, office supplies and similar equipment, to carry out URA business. A prorated share of the expenses associated with use of such office space, furnishings and equipment shall be charged back to the URA in accordance with Section 5 below. As needed, the City may make available office space to the URA, as provided under any such lease agreements as may be agreed upon by the City and the URA. 5. City Compensation At such time as the City Council determines that the URA has sufficient funding source(s), the URA shall compensate the City for all or a portion of the costs reasonably incurred by the City in providing City Staff, services, office space, furnishings and equipment described herein. The City shall submit to the URA, at such times in the future as the City deems appropriate, one or more invoices detailing the specific services rendered and other expenses incurred by the City on behalf of the URA a specific time period stated in such invoice(s). Such invoices shall be in sufficient detail and shall include salaries, benefits, insurance and other costs incurred by the City, on a prorated basis, and shall sufficiently designate the type of service performed by the City so that the URA may properly determine the accuracy of the invoices. Unless the URA objects to an invoice within ten (10) days of the date of the invoice, the URA shall be deemed to approve such invoice for payment to the City and shall make payment to the City within a reasonable time and as funding of the URA is available. 6. City Advance of Funds If requested by the URA, the City may, from time to time, advance funds to the URA in support of its activities. Any such advance of funds shall be evidenced in writing in the form of a loan memorialized by a promissory note or a grant, which transaction shall not be valid until first having been approved by both the City Council and the URA Commission. 7. Legal Entity, Ethical Rules, Bylaws The URA constitutes a separate body corporate and politic as established under the statutes of the State of Colorado, and the URA Commission shall expeditiously adopt a set of Bylaws for the purpose of governing the officers and staff, meetings, ethical rules, and powers of the URA Commission. The ethical rules of the URA Commission shall be the same as those 4 which are applicable to the City Council, as long as the City Council is functioning as the URA Board of Commissioners. The URA shall comply with then current City policies regarding purchasing and expenditure of funds. 8. Sales Tax Increment It is agreed between the City and the URA that all City sales taxes collected in any urban renewal area of the URA shall accrue to the City until such time, if at all, that the City Council, in its sole discretion, decides to include in an urban renewal plan a provision allocating a portion of said sales tax revenues to the Authority for the purpose of funding URA projects within a particular urban renewal area. 9. Property Tax Increment The City agrees to assist the URA in pursuing its objectives and purposes, including, without limitation, any specific purposes established for a particular urban renewal area, by collecting and paying into a special fund of the URA the Incremental Property Taxes received by the City for each urban renewal area, for the purpose of paying the principal of, the interest on and any premiums due in connection with the bonds of, loans or advances to or other indebtedness incurred by the URA for financing or refinancing urban renewal projects within such area. In the event that the City is unable to collect through lawful means any Property Tax Revenues due for any urban renewal area, the amount of uncollectible Property Tax Revenues shall be allocated between the URA and the City for the urban renewal area in the same proportion as the total collected Property Tax Revenues within such area are allocated between the City and the URA for such Fiscal Year. The Property Tax Increment shall be calculated in accordance with Colorado law, the applicable urban renewal plan, and this Intergovernmental Agreement. 10. Insurance The URA may provide its own public liability insurance and other insurance provided, however, that the City and the URA agree to consider the desirability of including the URA within the City’s existing liability insurance coverages as a part of the services to be provided by the City to the URA subject to reimbursement of any additional cost to the City as provided in Section 5 above. 11. Responsibility of URA Nothing in this Agreement shall be interpreted in any manner as constituting the City as the agent of the URA or the URA as the Agent of the City. Each party shall remain separate and neither shall hereby assume the debts or obligations of the other. The URA shall be solely responsible for carrying out its duties and functions in accordance with the Colorado Urban Renewal Law and other applicable laws and regulations. 12. Termination This Agreement may be terminated by the mutual consent of the parties at any time after giving at least thirty (30) days written notice of intention to terminate the Agreement. 5 13. Binding Agreements This Agreement represents the total binding Agreement between the parties and replaces and supercedes any prior oral or written agreement between the City and the URA. 14. Governing Law This Agreement shall be governed by, and construed in accordance with the laws of the State of Colorado. 15. Severability If any covenant, term, condition, or provision under this Agreement shall, for any reason, be held to be invalid or unenforceable, the invalidity or unenforceability of such covenant, term, condition, or provision shall not affect any other provision contained herein, the intention being that such provisions are severable. 16. No Third Party Beneficiaries Nothing expressed or implied in this Agreement is intended or shall be construed to confer upon, or to give to, any person other than the City and the URA any right, remedy, or claim under or by reason of this Agreement or any covenants, terms, conditions, or provisions thereof, and all the covenants, terms, conditions, and provisions in this Agreement by and on behalf of the Parties shall be for the sole and exclusive benefit of the Parties. 17. No Waiver of Governmental Immunity Nothing in this Agreement shall be construed to waive, limit, or otherwise modify any governmental immunity that may be available by law to the City or to the URA, their officials, employees, contractors, or agents, or any other person acting on behalf of the City or the URA and, in particular, governmental immunity afforded or available pursuant to the Colorado Governmental Immunity Act, Title 24, Article 10, Part 1 of the Colorado Revised Statutes. CITY OF FORT COLLINS, COLORADO By: Douglas P. Hutchinson, Mayor ATTEST: APPROVED AS TO FORM: By: By: Wanda Krajiceck, City Clerk City Attorney 6 FORT COLLINS URBAN RENEWAL AUTHORITY By ______________________________ Douglas P. Hutchinson, Chairperson ATTEST: APPROVED AS TO FORM: By: By: URA Secretary URA Attorney RESOLUTION NO. 2011-055 OF THE COUNCIL OF THE CITY OF FORT COLLINS AUTHORIZING THE MAYOR TO EXECUTE AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT WITH THE FORT COLLINS URBAN RENEWAL AUTHORITY WHEREAS, on February 21, 2006, the Board of Commissioners of the Fort Collins Urban Renewal Authority (the “Board”) adopted a resolution establishing an ad hoc committee for the purpose of formulating recommendations regarding the administration of the Urban Renewal Authority (the “URA”); and WHEREAS, one of the recommendations of the ad hoc committee and City staff was that a general "umbrella" intergovernmental agreement be entered into between the City and the URA governing a number of topics; and WHEREAS, on August 15, 2006, the City Council adopted Resolution 2006-082 authorizing the mayor to enter such an intergovernmental agreement with the URA (the “IGA”); and WHEREAS, Section 6 of the IGA states that the City may advance funds to the URA in support of its activities so long as the advance of funds is evidenced in writing through a promissory note or a grant; and WHEREAS, the City Council believes that the language of the IGA should be amended to clarify that any and all advances of funds the City makes to the URA should be evidenced by a promissory note and related loan agreement, regardless of the circumstances under which such advances are made; and WHEREAS, staff has prepared a proposed amendment to the IGA (the “Amendment”) a copy of which is attached hereto as Exhibit “A” and incorporated herein by this reference; and WHEREAS, the City Council has determined that the Amendment is in the best interests of the URA and should be entered into between the City and the URA. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS that the Mayor is hereby authorized to execute the amendment to the intergovernmental agreement between the City and the URA. Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 5th day of July, A.D. 2011. Mayor ATTEST: City Clerk FIRST ADDENDUM TO THE INTERGOVERNMENTAL AGREEMENT BETWEEN THE CITY OF FORT COLLINS, COLORADO AND THE FORT COLLINS URBAN RENEWAL AUTHORITY REGARDING OPERATING STAFF AND RESOURCES THIS ADDENDUM is made and entered into by and between THE CITY OF FORT COLLINS, COLORADO, a municipal corporation (the “City”), and THE FORT COLLINS URBAN RENEWAL AUTHORITY, a political subdivision of the State of Colorado (the “URA”), and shall be effective on the date signed by the City. WHEREAS, the City and URA have previously entered into that certain Intergovernmental Agreement dated August 15, 2006 (the “Agreement”); and WHEREAS, the City and the URA desire to continue their arrangement of sharing operating staff and resources to maintain economy and efficiency of operations; and WHEREAS, the City and the URA wish to amend the Agreement to clarify the advancement of funds under the Agreement; and WHEREAS, the parties are authorized to enter into intergovernmental agreements to provide any function, service or facility as provided in Article II, Section 16 of the Charter of the City of Fort Collins and Section 29‐1‐203, C.R.S. NOW, THEREFORE, in consideration of mutual promises and covenants and other good and valuable consideration, the receipt and adequacy of which are acknowledged, the parties agree to amend the terms and conditions of the Agreement as follows: 1. That Section 6 of the Agreement is modified to read: The City may, in the sole discretion of the City Council, advance funds to the URA in support of the URA’s activities. Any such advance of funds shall be evidenced in writing in the form of a loan memorialized by a promissory note or a grant, which transaction shall not be valid until first having been approved by both the City Council and the URA Commission. 2. All other terms and conditions of the Agreement shall remain unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this First Addendum to the Intergovernmental Agreement between the City of Fort Collins, Colorado and the Fort Collins Urban Renewal Authority Regarding Operating Staff and Resources to be executed. For the City: THE CITY OF FORT COLLINS A Municipal Corporation By: ____________________________________ Karen Weitkunat, Mayor ATTEST: Approved as to legal form: _____________________________ City Clerk ________________________ Assistant City Attorney For the URA: THE FORT COLLINS URBAN RENEWAL AUTHORITY A political subdivision of the State of Colorado By: ____________________________________ Karen Weitkunat, Chairperson ATTEST: Approved as to legal form: _____________________________ Secretary ________________________ Authority Attorney