HomeMy WebLinkAbout20070187.tiff 760
RESOLUTION
RE: APPROVE PARTIAL CANCELLATION AND RELEASE OF COLLATERAL FOR WELD
COUNTY ROAD 38 - PLATTE SAND AND GRAVEL, LLC
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, by Resolution dated December 8, 2004, the Board approved the application
of Platte Sand and Gravel, LLC, 1300 Harlan Street, Lakewood, Colorado 80215, for a Long Term
Road Maintenance and Improvements Agreement, and
WHEREAS, on June 19, 2006, the Board of County Commissioners of Weld County,
Colorado, approved Collateral for Long Term Road Maintenance and Improvements Agreement
for Weld County Road 38, between the County of Weld, State of Colorado, by and through the
Board of County Commissioners of Weld County, and Platte Sand and Gravel, LLC,with terms and
conditions being as stated in said agreement, and accepted Irrevocable Letter of Credit#00345,
drawn on Centennial Bank of the West, 2700 47th Avenue, Greeley, Colorado 80634, in the
amount of$911,042.00, and
WHEREAS, on September 13, 2006, by Resolution #2006-2572, the Board of County
Commissioners approved partial release of said collateral, in the amount of $460,000.00, and
retaining an amount to $451,042.00, and
WHEREAS, staff from the Weld County Department of Public Works conducted a visual
inspection and recommends partial release of said collateral, in the amount of $268,833.60;
retaining $182,208.40, and
WHEREAS, the Board has been presented with a letter from Centennial Bank of the West,
Amendment No. 02, effective January 12, 2007,thereupon reducing the amount of credit available
for draw by Weld County to $182,208.40.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that Irrevocable Letter of Credit #00345, Amendment No. 02, drawn on
Centennial Bank of the West, in the amount of$268,833.60 be, and hereby is, partially canceled
and released, with the remaining balance being $182,208.40.
BE IT FURTHER RESOLVED by the Board that the Clerk to the Board be, and hereby is,
directed to release said collateral to the appropriate issuing party.
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3451760 01/30/2007 02:19P Weld County, CO
1 of 2 R 0.00 0 0.00 Steve Moreno Clerk& Recorder
2007-0187
EG0��056
C' ; /}/'PL Pk) OW9'7 7
CANCEL COLLATERAL - PLATTE SAND AND GRAVEL, LLC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 17th day of January, A.D., 2007.
Be ' 'D OF COUNTY COMMISSIONERS
W D OUNTY, COLORADO
ATTEST:
David E. Long, Chair
Weld County Clerk to °::•erd'
3,E ` _
Willi. e, ro-Tem /
BY:
Deputy lerk to the Bo
WI * m F. Garcia
APPROVjED AS TO F
Robert D. Masden
C ntyAttorney C AI
Doug s Ra emac r
Date of signature: /773/0 7
111\\\Hit NI III IIIII IIII U
3451760 01/3012007
2 of 2 R 0.00 D 0.00 Steve Moreno Clerk&Recorder
2007-0187
EG0056
rsMEMORANDUM
IIIC. TO: Clerk to the Board DATE: January 11, 2007 COLORADO FROM.. David Bauer, Public Works
SUBJECT: Agenda Item
Partial release of collateral of Letter of Credit for Platte Sand and Gravel for WCR 38
improvements.
The appropriate documentation is attached.
Enclosures
pc: WCR 38
Platte Sand and Gravel Project file
M:\FrancieWgendaDonald nonex.doc
M: \Francie\AgendaDonald nonex.doc 2007-0187
MEMORANDUM
TO: Esther Gesick, Clerk to the Board
C DATE: January 10,
O FROM: David Bauer, P Puublic Works c j
SUBJECT: Agenda Item, Partial Release'of Collateral, Platte
COLORADO Sand and Gravel
A Letter of Credit for Platte Sand and Gravel in the amount of $451, 042 is being held with an
automatic renewal. This collateral is being held for 2006 road improvements to WCR 38
between SH 60 and WCR 23 (in the vicinity of the Town of Milliken). A portion of the required
work has been completed, therefore, at this time the Weld County Public Works Department
recommends a partial release of collateral in the amount of $268,833.60 and retention of
collateral in the amount of $182, 208.40.
M:\PLANNING—DEVELOPMENT REVIEW\Collateral\PlatteSd&GravReleaseOfCollat.doc
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CENTENNIAL `lc
Bank of the West
AMENDMENT NO. 02
TO IRREVOCABLE LETTER OF CREDIT NO. 00345
Dated May 18,2006
This page shall be attached to and become an integral part of the above
referenced Letter of Credit.
January 12,2007
Beneficiary:
WELD COUNTY BOARD OF COMMISSIONERS
P.O. BOX 758
Greeley,CO 80632
Applicant:
PLA I It.SAND AND GRAVEL, LLC
P.O. BOX 713
Littleton, CO 80160
Gentlemen:
At the request of and for the account of our customer, the above referenced
Letter of Credit issued in your favor in the amount of$911,042.00 is amended
as follows:
1. The previously amended amount is further Decreased by $268,833.60
for a new total amount of$182,208.40.
2.Expiration date remains effective as described in the original Letter of
Credit.
3.Funds under this credit are available with CENTENNIAL BANK OF
THE WEST by payment against presentation of your sight draft(s)
drawn on us, at our office, at 4650 Royal Vista Circle,Fort Collins,CO
80528.
All other terms and conditions of the original Letter of Credit shall remain
unchanged and continue in full force and effect. Please acknowledge your receipt
and acceptance of this amendment by signing the enclosed copy, where indicated
and returning it in the envelope provided.
�relY,
Christop er W.Jeavons
Regional President
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Platte Sand & Gravel Page 1 of 2
Donna Bechler
From: David Bauer
Sent: Thursday, January 11, 2007 4:40 PM
To: Donna Bechler
Subject: RE: Platte Sand & Gravel
Donna,
I'm fine with that policy and I agree with you. We want the revised letter of credit in our hands, then
we'll schedule the BOCC hearing. I will alert the applicant that we want/require the hard copy of the
revised letter of credit before we will go to the board.
If you can, just hang onto everything, I'll tell them that they can make the Wednesday agenda if they
get us the letter.
And thanks,
David Bauer
Weld County Public Works
From: Donna Bechler
Sent: Thursday, January 11, 2007 4:35 PM
To: David Bauer
Subject: RE: Platte Sand & Gravel
They did it this way the last time too, which makes it difficult to type up a resolution for the Commissioners to
understand. All the other banks issue the revised Letter of Credit and then it is approved by the Commissioners.
As long as you have sent us a memo stating the work has been done, and you agree with the partial release, the
Commissioners approve it. We really would like to receive the revised Letter of Credit from them before putting it
on the agenda. Even if they get it to us tomorrow, it is too late for Monday's agenda. They will need to get it to us
by 10:30 on Monday to get on Wednesday's agenda, and if it's later than that, it will go on the following Monday.
From: David Bauer
Sent: Thursday, January 11, 2007 4:21 PM
To: Donna Bechler
Subject: FW: Platte Sand &Gravel
Boy, that was fast, here is the e-mail from the bank.
David Bauer
Weld County Public Works
From: Jeavons, Chris [mailto:Chris.Jeavons@centennialbanks.com]
Sent: Thursday, January 11, 2007 4:19 PM
To: tpike@centralreadymix.net
Cc: David Bauer; Tarrant, Shelli
Subject: Platte Sand & Gravel
Tim:
1/12/2007
Platte Sand& Gravel Page 2 of 2
This e-mail will confirm our conversation regarding the existing Letter of Credit issued to Weld County covering
improvements to Road 38. Centennial Bank of the West will revise the current Letter of Credit to restate to
amount as$182,208.40, following confirmation from the Board of County Commissioners that the coverage
amount has been approved at this level.
If there are any further questions, or anything else required, please feel free to contact me.
Christopher W. Jeavons
Regional President
(970)454-4151
1/12/2007
Clear Day Page 1 of 2
Donna Bechler
From: David Bauer
Sent: Thursday, January 11, 2007 4:18 PM
To: Donna Bechler
Cc: Francie Collins
Subject: RE: Release of Collateral for Platte Sand and Gravel
Donna,
Thank you for the help and patience with this one. I have received the applicant's letter requesting
the partial collateral release. I will send that to you either by inter-office mail or hand delivery
tomorrow (Friday). So I suggest you hold onto everything on the assumption that the applicant will
want to proceed. I'll keep copies for our file.
I just called Platte Sand & Gravel, they will be contacting their Bank to get a replacement Letter of
Credit over to us. Their bank may also send an e-mail to provide us more immediate response of the
commitment to provide the Letter of Credit (which I told the applicant will need to be confirmed by a
hard copy letter).
The applicant's question: If they get us a hard copy of a replacement Letter of Credit by Friday can
they still make the Monday agenda?
I didn't promise that, and told Platte that it might slide to the next agenda.
Again thanks for your help and patience,
David Bauer
Weld County Public Works
From: Donna Bechler
Sent: Thursday, January 11, 2007 4:07 PM
To: David Bauer
Subject: Release of Collateral for Platte Sand and Gravel
David,
Francie just dropped off your memo requesting a partial release of collateral for Platte Sand and Gravel. Before
it can go on the agenda, we will need a new Letter of Credit from Centennial Bank of the West, and also the
letter or e-mail from the applicant requesting the partial release. I will attach a copy of the last partial
cancellation that went before the Board on 09/13/06, so you can see how that one was handled. The banks
usually issue a new Letter of Credit, but on the last one, they sent an Amendment, and it was approved by
Bruce Barker.
I will send you some information regarding Collateral through Interoffice Mail, since I know this is new for you. If
you have any more questions about this one, you can call me at Extension 4227.
1/12/2007
Clear Day Page 2 of 2
Do you want me to hold your request until you get the Replacement Letter of Credit from the bank, or would you
like me to return it to you so that you can keep everything together.
Donna
1/12/2007
Hello