HomeMy WebLinkAbout20062572.tiff 041
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, staff from the Weld County Department of Public Works has conducted a
visual inspection and recommends release of a portion of said collateral in the amount of
$460,000.00, and
WHEREAS,the Board of County Commissioners has determined it to be in the best interest
of the County to release$460,000.00, with the condition that the applicant post a revised Letter of
Credit in the amount of $451,042.00. The original Letter of Credit will stand until Weld County
receives the revised Letter of Credit.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County,Colorado,that Irrevocable Letter of Credit#00345,drawn on Centennial Bank of the West,
be, and hereby is partially canceled and released in the amount of$460,000.00, conditional upon
the applicant posting a revised Letter of Credit in the amount of$451,042.00. The original Letter
of Credit will stand until Weld County receives the revised Letter of Credit.
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, upon receipt of the revised Letter
of Credit.
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3423047 09/28/2006 01:13P Weld County, CO
1 of 2 R 0.00 D 0.00 Steve Moreno Clerk& Recorder
2006-2572
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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 13th day of September, A.D., 2006.
:� `'' •' '7 BOARD OF NTY COMMISSIONERS
rA � , ice' ELD CO , COLORADO
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Weld County Clerk to the B db- e- cecm
David E. Long, Pro-Tern
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Depu Clerk to e Board `fie `��w
Willer e ,V�
APPROV AS M:
Robed D. Ma/sd�n
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ounty Attorney pt
GlennV Vaad
Date of signature: 1 1 c1/%;
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3423047 09/28/2006 01:13P Weld County, CO
2 of 2 R 0.00 0 0.00 Steve Moreno Clerk& Recorder
2006-2572
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CENTENNIAL
Bank of the West
AMENDMENT NO. 01
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.
October 13,2006
Beneficiary:
WELD COUNTY BOARD OF COMMISSIONERS
P.O.BOX 758
Greeley,CO 80632
Applicant:
PLAT 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 amount is Decreased by$460,000.00 for a new total amount of
$451,042.00.
2.Expiration date is extended to September 21,2007.
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 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.
Sine ely,
i B of the West
•
Christopher W.Jeavons
Regional President
CENTENNIAL
Bank of the West
September 12, 2006
Weld County Board of Commissioners
P.O. Box 758
Greeley, CO 80632
Re: Platte Sand& Gravel, LLC
Letter of Credit#00345
Dear Sirs:
This letter is written to confirm that Centennial Bank of the West is in possession of the
following checks issued by Platte Sand & Gravel, LLC, for payment of expenses relating
to the completion of improvements to County Road 38:
Check# Payee Amount
1961 Hall-Irwin Asphalt Division $296,035.21
1962 American $ 4,750.00
1963 Northern Colorado Traffic Control $ 17,119.10
1964 Roadrunner Construction $ 6,580.00
1965 Terracon $ 6,872.85
There are sufficient funds on deposit to cover these payments. The checks will be
released to the payees upon receipt of evidence from Weld County that the County has
accepted the improvements completed to date and will reduce the requirements of above
referenced Letter of Credit from the current amount of$911,042.00, to $451,042.00.
Our intent will be to issue a new Letter of Credit in the reduced amount of$451,042.00.
The existing Letter of Credit#00345 will remain in force until such point as you are in
receipt of the revised Letter of Credit. The Bank will require evidence from the payees,
including executed lien waivers,that payment has been received.
If there are any questions, please feel free to contact the undersigned.
cereF
Christopher W. Jeavons
Regional President
CJ/
2700 47th Avenue•Greeley,CO 80634•Bus:(970)454-4151 •Fax:(970)454-4159•www.centennialbanks.com
0ycoe -aa7a
Page 1 of 2
Donna Bechler
From: Perry Eisenach
Sent: Thursday, September 07, 2006 3:53 PM
To: tim pike
Cc: Bruce Barker; Frank Hempen; Tracy Dyer; Donna Bechler
Subject: FW: Platte Sand & Gravel - Letter of Credit
Tim,
It looks like this will be scheduled for the BOCC meeting next Wednesday (see below). Also, in looking at the
cost estimates and the work that has been completed to date, I am willing to recommend a total release of
$460,000 at this time (85% of the total work completed to date). The revised letter of credit will need to be for
$451,042.
Please let me know if you have any questions.
Perry
From: Bruce Barker
Sent: Thursday, September 07, 2006 3:21 PM
To: Donna Bechler; Perry Eisenach
Cc: Frank Hempen; Tracy Dyer
Subject: RE: Platte Sand &Gravel - Letter of Credit
Let's figure we will have this done and ready for the agenda on Wednesday, Sept. 13th. I just talked to Fred
Ginsberg. He is going to work with the bank on getting the arrangements done. This will be a bit more
complicated than our normal reduction of collateral. Fred is going to call me back tomorrow. Bruce.
From: Donna Bechler
Sent: Thursday, September 07, 2006 3:18 PM
To: Perry Eisenach; Bruce Barker
Cc: Frank Hempen; Tracy Dyer
Subject: RE: Platte Sand &Gravel - Letter of Credit
If we can have the paperwork in our office by 10:00 tomorrow, we can go ahead and list it on the Agenda for Sept
11th. After that, everything will be finalized on the Agenda, and we'll have to place it on Wednesdays. Do you
think it will be here by then?
From: Perry Eisenach
Sent: Thursday, September 07, 2006 3:13 PM
To: Bruce Barker; Donna Bechler
Cc: Frank Hempen; Tracy Dyer
Subject: RE: Platte Sand &Gravel - Letter of Credit
Bruce,
I have talked to PS&G. They are working on getting those items now.
Thanks,
9/12/2006
Page 2 of 2
Perry
From: Bruce Barker
Sent: Thursday, September 07, 2006 2:46 PM
To: Perry Eisenach; Donna Bechler
Cc: Frank Hempen; Tracy Dyer
Subject: RE: Platte Sand &Gravel - Letter of Credit
Perry: Have you talked to PS&G about getting those things to us? Bruce.
From: Perry Eisenach
Sent: Thursday, September 07, 2006 2:21 PM
To: Donna Bechler
Cc: Frank Hempen; Bruce Barker; Tracy Dyer
Subject: Platte Sand &Gravel - Letter of Credit
Hi Donna,
Public Works has approved the first lift of asphalt completed on WCR 38 by Platte Sand & Gravel and is ready to
recommend reducing the Letter of Credit by $400,000. Would it be possible to get this item added to the BOCC
agenda for Monday, September 11?
Before the meeting, PS&G will be providing:
1. A revised Letter of Credit
2. Proof that all suppliers/contractors have been paid for the work completed to date.
Thanks for your help. Please let me know if you have any questions or need anything else from me.
Perry
9/12/2006
Sap-12-06 04:42P P.01
Frederick L. Ginsberg, Attorney at Law
19201 E. Mainstreet, Suite 201 Send All Mail To: P.O. Box 697 Parker, CO 80134
Phone: (303)841-0877 Fax: (303)841-0993 e-Mail: flgesq@gwest.net
From: Veronica Desselles
Legal Assistant to Frederick L. Ginsberg
To; Baker
Fax# 1 (970) 352-0242
Date: 9/12106
Re: Platte Sand and Gravel/Letter of Credit Reduction
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Please telephone (303)841-0877 regarding unsuccessful transmission or illegible copy.
D
SEP 1 4 1086
1
FREDERICK L. GINSBERG WELD COUN n " '
ATTORNEY AT LAW ATTORNEY'S OFFICE
19201 E. MAINSTREET, SUITE 201
MAIL TO: P.O. BOX 697
PARKER, COLORADO 80134
(303) 841-0877 • FAX(303) 841-0993
EMAIL: flgesq@qwest.net
September 12, 2006
Bruce Barker, Esq.
Weld County Attorney
P. O. Box 758
Greeley, CO 80632 Sent via facsimile to: 1-970-352-0242/mail to follow
Re: Platte Sand and Gravel/Letter of Credit Reduction
Dear Mr. Barker:
Pursuant to our telephone discussion of this date, this informs you that my client, Platte Sand &
Gravel, LLC, has completed a total of$541,042 related to work it is performing on Weld County
Road 38: $460,449 represents 85%of the total$541,042. The difference between the two amounts
represents a 15% retention required by Mr. Perry Eisenach, who is with the Weld County Public
Works Department. He previously confirmed this amount of work was completed and accepted by
the County. This was done in an e-mail from Mr. Eisenach dated September 7, 2006 addressed
to Mr. Tim Pike and copied to you.
The 15%retention is included in the new letter of credit amount of$451,042 recommended by Mr.
Perry. The disbursements referenced in the letter of even date to the Weld County Commissioners
from Mr. Christopher W. Jeavons, Regional President for Centennial Bank of the West, will be
forwarded to all payees after the Commissioners adopt a resolution confirming acceptance of the
work by the County and approval of reduction of the current letter of credit to the new letter of credit
amount. The difference between the amounts being disbursed by the Bank, and the total of
$541,042, represents work actually performed by Platte Sand&Gravel or its affiliated companies.
Thank you once again for your assistance with these matters.
Ve my yours,
rederick L. in erg, sq.
/vd
end.
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