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HomeMy WebLinkAbout20082674.tiff RESOLUTION RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS(PRIVATE ROAD MAINTENANCE),AUTHORIZE CHAIR TO SIGN, AND ACCEPT COLLATERAL FOR SITE PLAN REVIEW, SPR#416 - SHAFFER TRUCKING, INC. WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, on Deccember 7, 2007, the Department of Planning Services approved Site Plan Review, SPR#416, for Don and Evelyn Shaffer, 1811 26th Street, Greeley, Colorado 80631, do Jay Pier, 606 Elder Street, Kersey, Colorado 80644, for Sales and Service of Irrigation Pipe, outside storage of irrigation pipe, office/warehouse building for maintenance and repair of fleet trucks and trailers, and office area for business and dispatching of trucks, on the following described real estate, to-wit: Part of the N1/2SW1/4 of Section 6, Township 4 North, Range 65 West of 6th P.M., Weld County, Colorado WHEREAS, pursuant to certain Conditions of Approval,the Board has been presented with an Improvements Agreement According to Policy Regarding Collateral for Improvements(Private Road Maintenance) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Shaffer Trucking, Inc., with terms and conditions being as stated in said agreement, and WHEREAS, the Board has been presented with Irrevocable Letter of Credit #770 from Farmers Bank, 119 1st Street, P.O. Box 220, Ault, Colorado 80610, in the amount of$10,440.00, and WHEREAS, after review, the Board deems it advisable to approve said agreement and accept said Irrevocable Letter of Credit as stated above, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Improvements Agreement According to Policy Regarding Collateral for Improvements(Private Road Maintenance)between the County of Weld,State of Colorado, by and through the Board of County Commissioners of Weld County, and Shaffer Trucking, Inc., be, and hereby is, approved. 2008-2674 PL1988 00 PW, A, A_ i��l�-OE( IMPROVEMENTS AGREEMENT- SHAFFER TRUCKING, INC. PAGE 2 BE IT FURTHER RESOLVED that Irrevocable Letter of Credit#770 from Farmers Bank, 119 1st Street, P.O. Box 220, Ault, Colorado 80610, in the amount of$10,440.00, be and hereby is, accepted. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 6th day of October, A.D., 2008. ���� BOARD OF COUNTY COMMISSIONERS � " I, / , `WELD COUNTY, COLORADO ✓p// ` ATTEST: v a� � �Are, .4 is'� O QjI liam H. Jerke, Chair Weld County Clerk to the BAN r. 7;'• S CUSED BY: v� ls� obert D. Masden Pro-Tem Dep Clerk the Board ��1 -- Wi • F. Garcia AP D AS • David E. Long ounf orney ouglas ademacher Date of signature: l�k Ic 2008-2674 PL1988 �9 IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PRIVATE MAINTENANCE) FOR USES BY SPECIAL REVIEW AND SITE PLAN REVIEW THIS AGREEMENT,made and entered into this /7 day of / 40 ,20 Cdiy and between the County of Weld, State of Colorado, acting through its Board of County Commissioners, hereinafter called "County,.and Shaffer Trucking, Inc. hereinafter called "Applicant." WITNESSETH: WHEREAS, Applicant is the owner of, or has a controlling interest in the following described property in the County of Weld, Colorado: L� g zF 47g3 Local ck t - ?Pr- O2 Ski--I I t) 5oQ O; u.:1O, WHEREAS,a Final uses by Special Review(USR)or Site Plan Review(SPR)plat of said property, to be known as Shaffer Trucking(SPR-416) has been submitted to the County for approval, and WHEREAS,relevant Sections of the Weld County Code provide that no USR or SPR Final Plat shall be approved by the County until the Applicant has submitted an Improvements Agreement guaranteeing the construction of the public improvements shown on plans, plats and supporting documents of the USR and SPR, which improvements, along with a time schedule for completion,are listed in Exhibits A and B of this Agreement. NOW, THEREFORE, IN CONSIDERATION OF the foregoing and of the acceptance and approval of said Final Plat,the parties hereto promise, covenant and agree as follows: 1.0 Engineering Services: Applicant shall furnish,at its own expense,all engineering services in connection with the design and construction of the USR or SPR improvements listed on Exhibit A, which is attached hereto and incorporated herein by reference. 1.1 The required engineering services shall be performed by a Professional Engineer and Land Surveyor registered in the State of Colorado,and shall conform to the standards and criteria established by the County for public improvements. 1.2 The required engineering services shall consist of, but not be limited to, surveys, designs, plans and profiles, estimates,construction supervision,and the submission of necessary documents to the County. 2.0 Rights-of-Way and Easements: Before commencing the construction of any improvements herein agreed upon,Applicant shall acquire,at its own expense,good and sufficient rights-of-way and easements on all lands and facilities traversed by the proposed improvements. 1111111 11111 DIU 11111 IIII II111111111111I VIII IIII IIII 3584149 10/14/2008 03:52P Weld County, CO 1 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder Revised 12/19/2007 M:\PLANNING—DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsite agreement.doc 3.0 Construction: Applicant shall furnish and install, at its own expense, the USR or SPR improvements listed on Exhibit A, which is attached hereto and incorporated herein by reference, according to the construction schedule set out in Exhibit B,which is also attached hereto and incorporated herein by reference. 3.1 Said construction shall be in strict conformance to the plans and drawings approved by the County and the specifications adopted by the County for such public improvements. Whenever a USR or SPR is proposed within three miles of an incorporated community located in Weld County or located in any adjacent county, the Applicant shall be required to install improvements in accordance with the requirements and standards that would exist if the plat were developed within the corporate limits of that community. If the incorporated community has not adopted such requirements and standards at the time the USR or SPR is proposed, the requirements and standards of the County shall be adhered to. If both the incorporated community and the County have requirements and standards, those requirements and standards that are more restrictive shall apply. 3.2 Applicant shall employ, at its own expense, a qualified testing company previously approved by the County to perform all testing of materials or construction that is required by the County; and shall furnish copies of test results to the County. 3.3 At all times during said construction, the County shall have the right to test and inspect, or to require testing and inspection of material and work at Applicant's expense. Any material or work not conforming to the approved plans and specifications shall be removed and replaced to the satisfaction of the County at Applicant's expense. 3.4 Applicant shall furnish proof that proper arrangements have been made for the installation of sanitary sewer or septic systems, water, gas, electric and telephone services. 3.5 Said USR or SPR improvements shall be completed, according to the terms of this Agreement, within the construction schedule appearing in Exhibit B. The Board of County Commissioners, at its option, may grant an extension of the time of completion shown on Exhibit B upon application by the Applicant subject to the terms of Section 6 herein. 4.0 Release of Liability: Applicant shall indemnify and hold harmless the County from any and all liability loss and damage County may suffer as a result of all suits, actions or claims of every nature and description caused by, arising from, or on account of said design and construction of improvements,and pay any and all judgments rendered against the County on account of any such suit, action or claim,together with all reasonable expenses and attorney fees incurred by County in defending such suit, action or claim whether the liability, loss or damage is caused by, or arises out of the negligence of the County or its officers, agents, employees, or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the County or its employees while acting within the scope of their employment. All contractors and other employees engaged in construction of the improvements shall maintain adequate worker's compensation insurance and public liability insurance coverage,and shall operate in strict accordance with the laws and regulations of the State of Colorado governing occupational safety and health. IIIIII 11111 IIIIII 11111 IIII NMI 11111 III 11111 IIII IIII iew\SPR 416-Shaffer Trucking Shaffer°n age 12/19/2007 siteagreeent doc 3584149 10/14/2008 03:52P Weld County, CO 2 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 5.0 General Requirements for Collateral: 5.1 The value of all collateral submitted to Weld County must be equivalent to One- Hundred percent (100%) of the value of the improvements as shown in this Agreement. The improvements shall be completed within 30 days prior to the Final Plat approval. If improvements are not completed,the County,at its discretion,may make demand on all or a portion of the collateral and take steps to see that the improvements are made. 5.2 The applicant may choose to provide for a phased development by means of designating filings of a USR or SPR Final Plat. The applicant would need only to provide collateral for the improvements in each filing as approved. The County will place restrictions on those portions of the property that are not covered by collateral which will prohibit the conveyance of the property or the issuance of building permits until collateral is provided or until improvements are in place and approved pursuant to the requirements for a Request for Release of Collateral. 5.3 The applicant intends to develop in accordance with Exhibits A and B. 6.0 Improvements Guarantee: The four types of collateral listed below are acceptable to Weld County subject to final approval by the Board of County Commissioners. 6.1 An irrevocable Letter of Credit from a Federal or State licensed financial institution on a form approved by Weld County. The Letter of Credit shall state at least the following: 6.1.1 The Letter of Credit shall be in an amount equivalent of One-Hundred percent(100%)of the total value of the improvements as Exhibits A. 6.1.2 The Letter of Credit shall provide for payment upon demand to Weld County if the developer has not performed the obligations specified in the Improvements Agreement and the issuer has been notified of such default. 6.1.3 The applicant may draw from the Letter of Credit in accordance with the provisions of this policy. 6.1.4 The issuer of the Letter of Credit shall guarantee that, at all times the unreleased portion of the Letter of Credit shall be equal to a minimum of One-Hundred percent (100%) of the estimated costs of completing the uncompleted portions of the required improvements,based on inspections of the development by the issuer. In no case shall disbursement for a general improvement item exceed the cost estimate in the Improvements Agreement (i.e., streets, sewers, water mains and landscaping, etc.). The issuer of the Letter of Credit will sign the Improvements Agreement acknowledging the agreement and its cost estimates. 6.1.5 The Letter of Credit shall specify that fifteen percent (15%) of the total Letter of Credit amount cannot be drawn upon and will remain available to Weld County until released by Weld County. 11111 11111 111111 11111 IIII 1111111 11111 III 11111 liii IIII Revised 12/19/2007 3584149 10/14/2008 03:52P Weld County, CO w\SPR 416-Shaffer Trucking\Shaffer onsiie agreement doc 3 of 10 R 0.00 0 0.00 Steve Moreno Clerk & Recorder 6.1.6 The Letter of Credit shall specify that the date of proposed expiration of the Letter of Credit shall be either the date of release by Weld County of the final fifteen percent(15%),or one year from the date of Final Plat approval, whichever occurs first. Said letter shall stipulate that, in any event, the Letter of Credit shall remain in full force and effect until after the Board has received sixty(60)days written notice from the issuer of the Letter of Credit of the pending expiration. Said notice shall be sent by certified mail to the Clerk to the Board of County Commissioners. 6.2 Trust Deed upon all or some of the proposed development or other property acceptable to the Board of County Commissioners provided that the following are submitted: 6.2.1 In the event property within the proposed development is used as collateral, an appraisal is required of the property in the proposed development by a disinterested Member of the American Institute of Real Estate Appraisers (M.A.I.) indicating that the value of the property encumbered in its current degree of development is sufficient to cover One-Hundred percent(100%)of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 6.2.2 In the event property other than the property to be developed has been accepted as collateral by Weld County, then an appraisal is required of the property by a Member of the Institute of Real Estate Appraisers (M.A.I.) indicating that the value of the property encumbered in its current state of development is sufficient to cover One-Hundred percent(100%)of the cost of the improvements as set forth in the Improvements Agreement plus all costs of sale of the property. 6.2.3 A title insurance policy insuring that the Trust Deed creates a valid encumbrance which is senior to all other liens and encumbrances. 6.2.4 A building permit hold shall be placed on the encumbered property. 6.3 A surety bond given by a corporate surety authorized to do business in the State of Colorado in an amount equivalent to One-Hundred percent(100%) of the value of the improvements as specified in the Improvements Agreement. 6.4 A cash deposit made with the County equivalent to One-Hundred percent(100%)of the value of the improvements. 7.0 Request for Release of Collateral: Prior to release of collateral for the entire project or for a portion of the project by Weld County,the Applicant must present a Statement of Substantial Compliance from an Engineer registered in Colorado that the project or a portion of the project has been completed in substantial compliance with approved plans and specifications documenting the following: 7.1 The Engineer or his representative has made regular on-site inspections during the course of construction and the construction plans utilized are the same as those approved by Weld County. I Nil 11111 111111 VIII IIII 1111111 VIII III VIII IIII IIII \SPR 416-Shaffer Trucking\Shaffer onRevied 129/2007 sitesagreement doc 3584149 10/14/2008 03:52P Weld County, CO 4 of 10 R 0.00 0 0.00 Steve Moreno Clerk & Recorder • 7.2 Test results must be submitted for all phases of this project as per Colorado Department of Transportation Schedule for minimum materials sampling,testing and inspections found in the Colorado Department of Transportation(CDOT)Materials Manual. 7.3 "As built" plans shall be submitted at the time the letter requesting release of collateral is submitted. The Engineer shall certify that the project "as-built" is in substantial compliance with the plans and specifications as approved, or that any material deviations have received prior approval from the County Engineer. 7.4 The Statements of Substantial Compliance must be accompanied,if appropriate,by a letter of acceptance of maintenance and responsibility by the appropriate utility company, special district or town for any utilities. 7.5 A letter must be submitted from the appropriate Fire Authority indicating the fire hydrants are in place in accordance with the approved plans. The letter shall indicate if the fire hydrants are operational and state the results of fire flow tests. 7.6 The requirements in paragraphs 9.0 thru 9.5 shall be noted on the final construction plans. 7.7 Following the submittal of the Statement of Substantial Compliance and recommendation of approval by the County,the applicant(s)may request release of the collateral for the project or portion of the project by the Board. This action will be taken at a regularly scheduled public meeting of the Board. 7.8 The request for release of collateral shall be accompanied by"Warranty Collateral"in the amount of fifteen percent(15%) of the value of the improvements as shown in this Agreement excluding improvements fully accepted for maintenance by the responsible governmental entity, special district or utility company. 7.9 The warranty collateral shall be released to the applicant upon final approval by the Board of County Commissioners. 8.0 Successors and Assigns: This Agreement shall be binding upon the heirs,executors,personal representatives, successors and assigns of the Applicant,and upon recording by the County, shall be deemed a covenant running with the land herein described,and shall be binding upon the successors in ownership of said land. HRH 11111 111111 HEIM 11111 3584149 10/14/2008 03:52P Weld County, CO 5 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 5 Revised 12/19/2007 M:\PLANN1NG—DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsite agreement.doc IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed on the day and year first above written. APPLICANT:/7-• h1-C-1-71 APPLICANT: TITLE: �J Subscribed and sworn to before me this !CO.'day of e/>‘ 20 o8 . 5� ... i• PtOTp�Y�.�` My Commission expires: N A\PUBLIC 1-09-07 otary Public ......... AirCnt.O• ATTEST: BOARD OF COUNTY COMMISSIONERS /WELD COUNTY, COLORADO Weld County Clerk to the Board 2 William H. Jerke , Chair BY: 10/06/2008 Deputy Clerk e Board „/"-- APPROVED AS TO FORM: County Attorney 1111111111111111111111111111111111111111111111111111111 3584149 10/14/2008 03:52P Weld County, CO 6 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 6 Revised 12/19/2007 M:\PLANNING-DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsile agreement ddoocp EXHIBIT A (PUBLIC WORKS) Name of USR or SPR: Shaffer Trucking Filing: Location: Intending to be legally bound,the undersigned Applicant hereby agrees to provide throughout this USR or SPR the following improvements. (Leave spaces blank where they do not apply) (Leave spaces blank where they do not apply) Improvements Quantity Units Unit Estimated Costs Construction Cost Site grading,swale,drainage pond I LS $7,827 Street grading Street base Street paving Curbs, gutters, and culverts Sidewalk Storm sewer facilities Ditch Improvements Subsurface drainage Survey and street monuments and boxes Street Names/Stop Sign Road culvert Seeding and mulching 1 LS $2,613 SUB-TOTAL: $10,440 Id County, CO 1111%111111113111111111111ElHEIII111111011111 3584149 10/14/2008 7 of 10 R 0.00 D 0.00 Steue Moreno Clerk& Recorder 7 Revised 12/19/2007 M:\PLANNING—DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsite agreemcnt.doe EXHIBIT A (PLANNING SERVICES) Name USR or SPR:Shaffer Trucking(SPR-416) Filing: Location: Intending to be legally bound,the undersigned Applicant hereby agrees to provide throughout this USR or SPR the following improvements. (Leave spaces blank where they do not apply) Improvements Quantity Units Unit Estimated Costs Construction Cost Sanitary sewers Trunk and forced lines Laterals (house connected) On-site sewage facilities On-site water supply and storage Water Mains (includes bore) Fire hydrants Street lighting Fencing requirements Landscaping Park improvements Telephone Gas Electric Water transfer SUB-TOTAL: $ Engineering and Supervision Costs $ (Testing, inspection, as-built plans and work in addition to preliminary and final plat; supervision of actual construction by contractors) TOTAL ESTIMATED COST OF IMPROVEMENTS AND SUPERVISION $10,440 The above improvements shall be constructed in accordance with all County requirements and specifications, and conformance with this provision shall be determined solely by Weld County,or its duly authorized agent. Said impro ements shall be complee according to the construction schedule set out in Exhibit B. q By: 2��__/L' Z �`' /Lehi t — pplicant Title Date. Applicant Title Date (If corporation, to be signed by President and attested to by Secretary, together with corporate seal.) 1111111 11111 111111 111111111 1111111111 X1111111 IIII 1111 Review 416ShRis19/2 7 3584149 10/14/2008 03:52P Weld County, CO anevew - affer Trucking\Shaer onsite v edrecm 0 8 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT B Development:Shaffer Trucking(SPR-416) Filing: Location: Intending to be legally bound,the undersigned Applicant hereby agrees to provide throughout this USR or SPR the following improvements. All improvements shall be completed within 30 days from signing of this agreement. Construction of the improvements listed in Exhibit A shall be completed as follows: (Leave spaces blank where they do not apply.) Improvements Time for Completion Site grading, swale, drainage pond 30 days from signing of agreement Street base Street paving Curbs, gutters, and culverts Sidewalk Storm sewer facilities Retention ponds Ditch improvements Subsurface drainage Sanitary sewers Trunk and forced lines Mains Laterals(house connected) On-site sewage facilities On-site water supply and storage Water mains Fire hydrants Survey and street monuments and boxes Street lighting Street name signs Fencing requirements Landscaping Park improvements Road culvert Grass lined swale Telephone Gas Electric Water Transfer SUB-TOTAL: 30 days I111111VIII11111111111l1111111111VIIIIIIVIIIIII) I11I 3584149 10/14/2008 03:52P Weld County, CO 9 of 10 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Revised 12/19/2007 M:\PLANNING—DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsite agreementdoc The County, at its option, and upon the request of the Applicant, may grant an extension of time for completion for any particular improvements shown above, upon a showing by the Applicant that the above schedule cannot be met. By: 6e241r/---0/7 -- ems /C9 cP>cE--- Applicant Title Date. Applicant Title Date (If corporation,to be signed by President and attested to by Secretary, together with corporate seal.) 11111111111 IIIU 11111 Jill 111111111111 III 111111 III IIII 3584149 10/14/2008 03:52P Weld County, CO 10 of 10 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 10 Revised 12/19/2007 M:\PLANNTNG-DEVELOPMENT REVIEW\SPR-Site Plan Review\SPR 416-Shaffer Trucking\Shaffer onsite agreement.doc 440t* MEMORANDUM wokTO: Board of County Commissioners 9/23/2008 FROM: Chris Gathman - Planner III COLORADO SUBJECT: Acceptance of Collateral for SPR-416 (Shaffer) On September 19, 2008 the Department of Planning Services received collateral in the form of a Irrevocable Letter of Credit (No. 770) in the amount of($10,440.00)for SPR-416 (Shaffer). Collateral covered the following items: Site Grading estimate $ 7,827.00 Seeding & Mulching estimate $ 2,613.00 Total Estimated Cost of Improvements and supervision $ 10,440.00 The improvements agreement and collateral has been reviewed by the Departments of Planning Services and Public Works and it has been determined that the amount of collateral is sufficient to cover the proposed improvements. The Departments of Planning Services and Public Works recommend acceptance of this collateral. SERVICP..TEAMWORK.INTEGRITY.QUALITY 2008-2674 .. IRREVOCABLE LETTER OF CREDIT ��(�rn kl`Q< FKI September 19,2008 Board of County Commissioners ATTN: Clerk to the Board PO Box 758 Greeley,CO 80632 RE: Don Shaffer Trucking, Inc To Whom It May Concern: We hereby open our Irrevocable Letter of Credit in your favor for the account of Don Shaffer Trucking, Inc, 1811 26th Street, Greeley, CO 80631, for a sum not to exceed the aggregate of Ten Thousand Four Hundred Forty and no/100ths($10,440.00). Each draft so drawn must be marked"Drawn under FARMERS BANK, 119 1" Street,Ault, CO 80610, Letter of Credit No.770"and be accompanied by a signed statement from the Board of County Commissioners of Weld County, Colorado stating that "the company has committed a material breach of the Improvements Agreement According to the Policy Regarding Collateral for Improvements regarding Site Plan Review SPR-416 dated the 18th day of September, 2008, by and between Don Shaffer Trucking, Inc and the Board of County Commissioners of the County of Weld." This credit is subject,so far as applicable,to"The Uniform Customs and Practice for Documentary Credits, 1993 Revision,The International Chamber of Commerce Publications No. 500" We hereby agree with you that all drafts drawn under and in compliance with the terms of this credit will be duly honored and presented for payment to our main office, FARMERS BANK, 119 1"Street,Ault, CO 80610. This letter of credit will expire on November 19,2008 at 5:00P.M. This letter of credit is automatically extended without amendment, for additional one-year periods from the current expiration or any future expiration date unless 60 days prior to such current expiration date FARMERS BANK notifies beneficiary in writing that the letter of credit will not be renewed. In the case you receive such a notification, you may draw by presentation of the following: (a) a draft at sight on FARMERS BANK; (b) a statement purportedly signed by an official of the Board of County Commissioners of Weld County, Colorado stating that we have received notice from FARMERS BANK the Letter of Credit No. 770 will not be renewed and that Don Shaffer Trucking, Inc has failed to provide proof of adequate collateral and substitution of the Letter of Credit No. 770; (c) copy of letter from FARMERS BANK stating non-renewal of Letter of Credit No. 770 and the original letter of credit. Yours truly, A Jarboe � Loan Admin Officer Farmers Bank-Ault • 1 ____a_ Farmers sits, N K November 12, 2008 Board of County Commissioners ATTN: Clerk to the Board PO Box 758 Greeley, CO 80632 Re: Don Shaffer Trucking, Inc To Whom It May Concern, We hereby wish to notify you that the Letter of Credit#770 dated September 18, 2008 for $10,440.00 will not be renewed as of November 19, 2008. Enclosed is a copy of the Letter of Credit issued. Should you have any questions, please contact me at (970) 834-2121. Sincerely, at rill ,( Andrea Jarb e 0c Loan Admin Officer ____a__ Farmers es". N IC November 14, 2008 Board of County Commissioners ATTN: Clerk to the Board PO Box 758 Greeley, CO 80632 Re: Don Shaffer Trucking, Inc. To Whom It May Concern: Farmers Bank has extended the Letter of Credit #770 dated September 18, 2008 in the amount of$10,440.00 for Don Shaffer Trucking, Inc. Enclosed is a revised Letter of Credit including the new maturity date. Should you have any questions or concerns, please contact me at (970) 834-2121. Sincerely, 961,-/Z---c-- Andrea Jarboe Loan Admin Officer ;i 3 1 I-1 Farmers B A N K IRREVOCABLE LETTER OF CREDIT NO. 770 November 14,2008 Board of County Commissioners A I IN: Clerk to the Board PO Box 758 Greeley,CO 80632 RE: Don Shaffer Trucking,Inc To Whom It May Concern: We hereby open our Irrevocable Letter of Credit in your favor for the account of Don Shaffer Trucking, Inc, 1811 261" Street, Greeley, CO 80631, for a sum not to exceed the aggregate of Ten Thousand Four Hundred Forty and no/100ths($10,440.00). Each draft so drawn must be marked"Drawn under FARMERS BANK, 119 1"Street,Ault,CO 80610, Letter of Credit No.770"and be accompanied by a signed statement from the Board of County Commissioners of Weld County,Colorado stating that"the company has committed a material breach of the Improvements Agreement According to the Policy Regarding Collateral for Improvements regarding Site Plan Review SPR-416 dated the 18`° day of September, 2008, by and between Don Shaffer Trucking, Inc and the Board of County Commissioners of the County of Weld." This credit is subject,so far as applicable,to"The Uniform Customs and Practice for Documentary Credits, 1993 Revision,The International Chamber of Commerce Publications No.500." We hereby agree with you that all drafts drawn under and in compliance with the terms of this credit will be duly honored and presented for payment to our main office,FARMERS BANK, 119 1"Street,Ault,CO 80610. This letter of credit will expire on September 19,2009 at 5:00P.M. This letter of credit is automatically extended without amendment, for additional one-year periods from the current expiration or any future expiration date unless 60 days prior to such current expiration date FARMERS BANK notifies beneficiary in writing that the letter of credit will not be renewed. In the case you receive such a notification, you may draw by presentation of the following: (a) a draft at sight on FARMERS BANK; (b) a statement purportedly signed by an official of the Board of County Commissioners of Weld County,Colorado stating that we have received notice from FARMERS BANK the Letter of Credit No. 770 will not be renewed and that Don Shaffer Trucking, Inc has failed to provide proof of adequate collateral and substitution of the Letter of Credit No.770;(c)copy of letter from FARMERS BANK stating non-renewal of Letter of Credit No. 770 and the original letter of credit. Yours truly, Andrea Jarboe 9a,,1¢c Loan Admin Officer Farmers Bank-Ault a_ Farmers BAN K August 14, 2009 Board of County Commissioners Attn: Clerk to the Board PO Box 758 Greeley, CO 80632 Re: Don Shaffer Trucking, Inc To Whom It May Concern: The Letter of Credit #770 in the amount of$10,440.00, issued on behalf of Don Shaffer Trucking, Inc., will expire on September 19, 2009. Farmers Bank has no further obligation to renew or extend this Letter of Credit per our borrower. Should you need additional information or have further questions, please contact me at (970) 834-2121. Thank you. Sincerely, 4/66C00-944-ZirC Andrea Jarboe Loan Admin Officer cc: file 119 151 Street • I'.0. Box 220 • Ault. Colorado 80610 • (970)834 2121 I ax(9/u!334 1351 Hello