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HomeMy WebLinkAbout20061655.tiff 004 RESOLUTION RE: APPROVE COLLATERAL FOR LONG TERM ROAD MAINTENANCE AND IMPROVEMENTS AGREEMENT 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,on December 8,2004, the Board of County Commissioners approved a Long Term Road Maintenance and Improvements Agreement for Weld County Road 38 with Platte Sand and Gravel, LLC, 1300 Harlan Street, Lakewood, Colorado 80215, and WHEREAS, the Board has been presented with Irrevocable Letter of Credit#00345 from Centennial Bank of the West, 2700 47th Avenue, Greeley, Colorado 80634, in the amount of $911,042.00, and WHEREAS,after review,the Board deems it advisable to accept said Irrevocable Letter of Credit as stated above, a copy of which is attached hereto and incorporated herein by reference. NOW, THERFORE, BE IT RESOLVED that Irrevocable Letter of Credit #00345 from Centennial Bank of the West, 2700 47th Avenue, Greeley, Colorado 80634, in the amount of $911,042.00, be and hereby is, accepted. The above and foregoing Resolution was,on motion duly made and seconded,adopted by the following vote on the 19th day of June, A.D., 2006. BOARD OF COUNTY COMMISSIONERS A ELD COUNTY, COLORADO ATTEST: �G ,._/,{� �, I Q CUSED ""��11 ile, Chair Weld County Clerk to the B r % 4 ,itiTh s C)11 ' is avid E. Long, Pro-Tem BY: _ ,GL/t n WIZ__ �i _.- ..' De ty Clerk'to the Board , :!e; a H. J APP S �� ty'Aff6rney Glen Vaad Date of signature: (1')MCC, 1111111 Ill 1111111111111111 IIII 1111111 III III!j IIII 11113400004 06/30/2006 01:27P Weld 2006-1655 1 of 1 R 0.00 D 0.00 Steve Moreno Clerk& Recorder EG0054 00 PO Pl-AIL iPi,,F_r64 0/7-13-pto MEMORANDUM CTO: Clerk to the Board DATE: 6/9/2006 COLORADO FROM: Perry Eisenach, Engineering Division Manage SUBJECT: Agenda Item Irrevocable Letter of Credit No. 00345 for Platte Sand and Gravel, LLC Document#2004-3421 The appropriate documentation is attached. Enclosures pc: Frank B. Hempen, Jr., P.E., Director of Public Works/County Engineer Ester Gesick, CTB M:AFrancie'Agenda Item.doc 2006-1655 u✓ d� CENTENNIAL Bank of the West IRREVOCABLE LETTER OF CREDIT NO. 00345 May 18, 2006 Weld County Board of Commissioners P. O. Box 758 Greeley, Colorado 80632 Re: Platte Sand and Gravel, LLC Dear Sirs: We hereby open our Irrevocable Letter of Credit #00345 in your favor for the account of Platte Sand and Gravel, LLC, for a sum not to exceed the aggregate of Nine Hundred Eleven Thousand Forty Two and No/100 Dollars ($911,042.00). This letter or credit is furnished to comply with Weld County Ordinance (Sec. 2-3-30) regarding collateral for Improvements as it pertains to that certain Long-Term Road Maintenance and Improvements Agreement, dated December 8, 2004, recorded December 17, 2004, at Reception Number 3244868, by and between Platte Sand and Gravel, LLC the Board of County Commissioners of the County of Weld related to the widening and paving of Weld County Road 38 pursuant to plans and specifications previously approved by Weld County. Any draft drawn against this Letter of Credit must be marked "Drawn under Letter of Credit No. 00345, CENTENNIAL BANK OF THE WEST, 2700 47`h Avenue, Greeley, CO 80634 and shall be accompanied by a signed statement from the Board of County Commissioners of Weld County, Colorado setting forth one or more material breaches Platte Sand and Gravel, LLC, has committed with respect to said Road Improvements Agreement. This credit is subject, so far as applicable, to The Uniform Customers and Practice for Documentary Credits, 1993 Revision, the International Chamber of Commerce Publication No. 500. Weld County Board of Commissioners Letter of Credit#00345 May 18, 2006—Page 2. We hereby agree with you that all drafts drawn under, and in compliance with the terms of this credit will be duly honored when and if presented for payment to CENTENNIAL BANK OF THE WEST, 2700 47th Avenue, Greeley, CO 80634. Provided, also, that Seven Hundred Seventy Four Thousand Three Hundred Eighty Five and 70/100 Dollars ($774,385.70) of the amount of this letter of credit will automatically expire at 5:00 p.m. on the date of the acceptance in writing by Weld County of the road improvements to be installed by Platte Sand and Gravel, LLC. pursuant to the above mentioned Road Improvement Agreement. The remaining One Hundred Thirty Six Thousand Six Hundred Fifty Six and 30/100 Dollars ($136,656.30) of the amount of this Letter of Credit will automatically expire at 5 p.m. on the date which is One (1) year next following the date of acceptance mentioned earlier in this paragraph. n ely k 1514\V Christopher W. Jeavons Regional President CJ\ Page 1 of 1 Donna Bechler From: Perry Eisenach Sent: Friday, June 09, 2006 12:16 PM To: Bruce Barker Cc: Donna Bechler Subject: Letter of Credit- Platte Sand & Gravel Bruce, We have received a letter of credit from Platte Sand & Gravel for$911,042 for WCR 38 improvements. There is not a specific expiration date. It simply states that$774,385 (85% of the total) of the letter of credit will expire upon written acceptance by Weld County of the WCR 38 improvements. The remaining 15%, or$136,656, will expire one year after the date of written acceptance by Weld County. Is this acceptable? Thanks for your help. Perry Perry Eisenach, P.E. Engineering Division Manager Weld County Public Works Dept. 1111 H Street, P.O. Box 758 Greeley, CO 80632 (970) 304-6496, Ext. 3758 FAX: (970) 304-6497 peisenach@co.weld.co.us 6/9/2006 Hello