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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. I IIIIII VIII VIII IIIIII IIIIII IIII IIIIII III VIII IIII IIII 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 C7 1-7-:r Si-pt ! zF c .-r /-✓ f-z-Tr- (-Li(e 3 cy L.c / s✓c-r d , %d 7/9z s7 yD 4J1*-w r frtcl r/ /,tz�r<�L S r u'k7 //c-/7 C $17,p/ V 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$182,208.40. 2.Expiration date remains effective as described in the original Letter of Credit. 3.Funds under this credit are available with CENTENNIAL BANK OF THE WEST by payment against presentation of your sight draft(s) drawn on us, at our office, at 4650 Royal Vista Circle,Fort Collins,CO 80528. All other terms and conditions of the original Letter of Credit shall remain unchanged and continue in full force and effect. Please acknowledge your receipt and acceptance of this amendment by signing the enclosed copy, where indicated and returning it in the envelope provided. �relY, Christop er W.Jeavons Regional President W •: rx,.; ,e49 r > ,r.,,/$` Nv• y , ...,. f%W °Y.' 'fir ..4„ 4 t °. i w d gg6 ° _ 6:47 tVr '04O4O6rsk` �k ,ab'F J6 . p 4✓ u/ 1 f z A+ y rhh �^^ ',116 ' ,yrL.y yC 9t e 1 �'a N.. ��a� 5u:r r ,},�Y, ��1-1440' ' S. �$�,���. Y=.�(�� F �,a��r� �A4,ja,��9�yF4i s i„�"� s '}��YNr �.b: 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