HomeMy WebLinkAbout20022086.tiff RESOLUTION
RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING
COLLATERAL FOR IMPROVEMENT, AUTHORIZE CHAIR TO SIGN, AND ACCEPT
COLLATERAL FOR USE BY SPECIAL REVIEW PERMIT, USR#1375 -JAMES
TERRY/NELSON PIPELINE CONSTRUCTORS
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, the Department of Planning Services staff did approve Use by Special
Review Permit #1375, for James Terry/Nelson Pipeline Constructors, 10711 Colorado Highway
52, Fort Lupton, Colorado 80621, for a Contractor's Office and Shop Facility on the following
described real estate, to-wit:
Lot B of Recorded Exemption #2765; being part of
the W1/2 of the NE1/4 of Section 2, Township 1
North, Range 67 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
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, and James Terry/Nelson Pipeline Constructors, with terms and
conditions being as stated in said agreement, and
WHEREAS, the Board has been presented with Irrevocable Standby Letter of Credit
SLCPPDX01588 from U. S. Bank National Association, International Banking Group, 111 S. W.
Fifth Avenue, Suite 500, Portland, Oregon 97204, in the amount of$253,838.00, and
WHEREAS, after review, the Board deems it advisable to approve said agreement and
accept said Irrevocable Standby 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 between the County of Weld, State of Colorado, by and through
the Board of County Commissioners of vveld County, and James Terry/Nelson Pipeline
Constructors, be, and hereby is, approved.
C' : �,op> Pi, Phi �A. 2002-2086PL1590
IMPROVEMENTS AGREEMENT - JAMES TERRY/NELSON PIPELINE CONSTRUCTORS
PAGE 2
BE IT FURTHER RESOLVED that Irrevocable Standby Letter of Credit SLCPPDX01588
from U. S. Bank National Association, International Banking Group, 111 S. W. Fifth Avenue,
Suite 500, Portland, Oregon 97204, in the amount of$253,838.00, be and hereby is, accepted.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 5th day of August, A.D., 2002.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
����ATTEST:jate# `,{>; EL�%` EXCUSED
G9,1/!ad Ch-'
Weld County Clerk to tha of ttI '
, ♦ '
,',�','�‘, •�, David E. Lo`�, Pro-Tem '
BY: i �....� 3 r
Deputy Clerk to the Bo-`1 N \ ? f//r✓i ,
. J. .eile
APPROV S T .
EXCUSED
William H. Jerke p n *Jr
un Attor y EXCUSED DATE OF SIGNING (AYE)
Robert D. Masden
Date of signature: tr7
2002-2086
PL1590
1j
IMPROVEMENTS AGREEMENT ACCORDING TO
POLICY REGARDING COLLATERAL FOR IMPROVEMENTS
THIS AGREEMENT,made and entered into this 5th day of August 2002,by and
between the County of Weld, State of Colorado,acting through its Board of County Commissioners, hereinafter
called"County"and Nelson Pipeline Constructors,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:
Lot B of Recorded Exemption No. 1469-02-RE-2765 Reception 2818943,Dated 01-02-2001.
Located in the Western Half of the Northeast Quarter of Section 2,Township 1 North,Range 67 West of
the 6t°P.M.,County of Weld, State of Colorado.
WHEREAS,the plat of said property,to be known as Nelson Pipeline Constructors Facility has been
submitted to the County for approval,and
WHEREAS,relevant Sections of the Weld County Code provide that no Subdivision Final Plat,Planned
Unit Development Final Plat,or Site Plan shall be approved by the County until the Applicant has submitted an
Improvement Agreement guaranteeing the construction of the public improvements shown on plans,plats and
supporting documents of the Site Plan,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—1375 Site Plan 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.
1.3 Applicant shall furnish drawings and cost estimates for roads within the USR-1375 Site
Plan to the County for approval prior to the letting of any construction contract.
Applicant shall furnish one set of reproducible `as-built" drawings and a final statement
of construction cost 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 byte proposed improvements.
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3.0 Construction: Applicant shall furnish and install, at its own expense, the Subdivision or Planned Unit
Development 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.
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 finish 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 Applicants 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 - 1375 Site Plan 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
workers' 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.
(THERE IS NO SECTION 5)
6.0 Approval of Streets by the County: N/A
7.0 General Requirements for Collateral:
7.1 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. Prior to Final Plat
approval, the applicant shall indicate which of the five types of collateral preferred to be utilized
to secure the improvements subject to final approval bye Board of County Commissioners and
the execution of this Agreement. Acceptable collateral shall be submitted and the plat recorded
within six (6) months of the Final Plat approval. If acceptable collateral has not been submitted
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within six (6) months then the Final flat approval and all preliminary approvals shall
automatically expire. Applicant may request that the County extend the Final Plat approval
provided the cost estimates are updated and the development plans are revised to comply with all
current County standards, policies and regulations. The improvements shall be completed within
one(1) year after the Final Flat approval(not one year after acceptable collateral is submitted)
unless the applicant(s)requests that this Agreement be renewed at least thirty (30) days prior to
its expiration and further provides that cost estimates for the remaining improvements are
undated and collateral is provided in the amount of One-Hundred percent(100%) of the value of
the improvements remaining to be completed. If improvements are not completed and the
agreement not renewed within these time frames, 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.
7.2 Phased Development: N/A
7.3 The applicant intends to develop in accordance with Exhibits"A"and"B."
8.0 Improvements Guarantee: The five types of collateral listed below are acceptable to Weld County subject
to final approval by the Board of County Commissioners.
8.1 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:
8.1.1 The Letter of Credit shall be in an amount equivalent of One-Hundred Percent(100%)of
the total value of the improvements as set forth in Exhibits"A"and"B."
8.1.2 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.
8.1.3 The applicant may draw from the Letter of Credit in accordance with the provisions of
this policy.
8.1.4 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.
8.1.5 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.
8.1.6 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 Ball force and effect
until after the Board has received sixty(60)days written notice from the issuer of the
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Letter of Credit of the pending expiration. Said notice shall be sent by certified mail to
the Clerk to the Board of County Commissioners.
8.2 Trust Deed upon all or some of the proposed development or other property acceptable tote Board of
County Commissioners provided that the following submitted:
8.2.1 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.
8.2.2 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.
8.2.3 A title insurance policy insuring that the Trust Deed creates a valid encumbrance which is senior
to all other liens and encumbrances.
8.2.4 A building permit hold shall be placed on the encumbered property.
8.3 Escrow Agreement that provides at least the following:
8.3.1 The cash in escrow is at least equal to One-Hundred percent (100%) of the amount
specified in the Improvements Agreement.
8.3.2 The escrow agent guarantees that the escrowed funds will be used for improvements as
specified in the agreement and for no other purpose and will not release any portion of
such funds without prior approval of the Weld County Board of Commissioners.
8.3.3 The escrow agent will be a Federal or state-licensed bank or financial institution.
8.3.4 If Weld County determines there is a default of the Improvements Agreement, the
escrow agent,upon request by the County,shall release any remaining escrowed funds to
the County.
8.4 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.
8.5 A cash deposit made with the County equivalent to One-Hundred Percent(100%) of the value of
the improvements.
9.0 Request for Release of Collateral: Prior to release of collateral for the entire projector 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:
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9.1 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.
9.2 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.
9.3 "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.
9.4 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.
9.5 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.
9.6 The requirements in paragraphs 9.0 through 9.5 shall be noted on the final construction plans.
9.7 Following the submittal of the Statement of Substantial Compliance and recommendation of
approval of the streets 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.
9.8 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.
9.9 The warranty collateral shall be released to the applicant upon final approval by the Board of
County Commissioners.
10.0 Public Sites and Open Spaces: N/A
11.0 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.
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IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be ecu d on e y nd year first
above written. .3
4,4%7 , _ l
APPLICANT: idol
APPLICANT: b�f
TITLE:
r ci Vcie.tern
„:
Subsctiled and sworn to before me this day of S 2002. My Commission expires: ///O/G 5 '
9eJyn a ela ar
Notary Public
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY,COLORADO
EXCUSED
G e V ,£hai (08/05/2002)
David E. ong, Cha . Pro-Tem
ATTEST:
?la` M. J. Celle
Weld County Clerk to the :r g �`q tai EXCUSED
'4 vJ2
% ' NYYY' iii��` '' U!
Deputy Clerk to the Bo� �l� =� Robert D. Masden
APPROVED AS TO FORM: --'---2
'ounty Attorney
•
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EXHIBIT"A"
Name of Development: Nelson Pipeline Constructors Facility
USR—1375 Site Plan
Location: 10711 Colorado Highway 52;Fort Lupton CO
Intending to be legally bound,the undersigned Applicant hereby agrees to provide throughout this USR- 1375 Site
Plan the following improvements.
Item
ID Description Quantity Units Unit Cost Total
1.0 CULVERTS & RIPRAP
1.1 24" Reinforced Concrete Pipe 52 L.F. $33.00 $1,716.00
1.2 18" Reinforced Concrete Pipe 123 L.F. $26.00 $3,198.00
1.3 Flared End Section With 24" Opening 2 EA. $565.00 $1,130.00
1.4 Type L Riprap 6 C.Y. $75.00 $450.00
2.0 SITE GRADING
2.1 Rough Street/Swale Grading (6"-12"depth) 650 C.Y. $1.56 $1,014.00
2.2 Rough Site Grading (6"-12"depth) 1,900 C.Y. $1.56 $2,964.00
2.3 Detention Pond Grading 4,450 C.Y. $1.56 $6,942.00
2.4 12" Base Material (for Yard Area) 20,750 S.Y. $5.00 $103,750.00
3.0 PAVEMENT
3.1 6" Hot Bituminous Pavement 3,215 S.Y. $8.00 $25,720.00
3.2 12" Hot Bituminous Pavement 585 S.Y. $16.00 $9,360.00
3.3 Parking Lot Striping 40 EA. $6.00 $240.00
3.4 8"Aggregate Base Course 3,800 S.Y. $7.00 $26,600.00
4.0 FENCE &SIGNS
4.1 6' High Chain Link Fence 2,257 L.F. $7.00 $15,799.00
4.2 2'x2' Information Sign 1 EA. $250.00 $250.00
4.3 Stop Sign (24"x24"with post and installation) 1 EA. $170.00 $170.00
5.0 LANDSCAPING •
5.1 Deciduous Trees 50 EA. $175.00 $8,750.00
5.2 Evergreen Trees 11 EA. $125.00 $1,375.00
5.3 Shrubs 149 EA. $40.00 $5,960.00
5.4 Sod 55,000 S.F. $0.35 $19,250.00
5.5 Seeding 175,000 S.F. $0.04 $7,000.00
5.6 Transplant/Replace Existing Plant Material 1 L.S. $500.00 $500.00
5.7 Plant beds- mulchjoil preparation, edging 9,750 S.F. $1.20 $11,700.00
COST ESTIMATE 7LITALS $253,838.04
Note:In providing the"Opinion of Probable Contraction Costs",the Owner understands that Jim Sell Design,Inc.has no control over costs or
the price of labor,equipment or materials,or over the Contractor's method of pricing,and the opinion of probable contraction costs provided
herein are made on the basis of Jim Sell Design,Inc.'s qualifications and experience.Jim Sell Design,Inc.makes no warranty,expressed or
implied,as to the accuracy of such information.
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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
improvements ral e c n et according to the construction schedule set out in Exhibit"B."
sy:
Applicant-,
-47 ya
11-11-3 Cs it
k
wJ (Applicant,,
t (.O11 a-
I�,/ TICS,deft/ Date: J 3 2002.
Title. /
(If corporation,to be signed by President and attested to by Secretary,together with corporate seal.)
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Exhibit B
Name of Development: Nelson Pipeline Constructors Facility
USR—1375 Site Plan
Location: 10711 Colorado Highway 52;Fort Lupton CO
Intending to be legally bound,the undersigned Applicant hereby agrees to provide throughout this
USR- 1375 Site Plan the following improvements.
All improvements shall be completed within I years from the date of approval of the final plat.
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
1.Culverts&Riprap 7/31/02
2. Street Paving&Base Course 11/30/02
3.Fencing&Signage 9/30/02
4.Landscaping 4/30/03
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.
Date: .20
(If corporation,to be signed by President and attested to by Secretary,together with corporate seal.)
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4Kst
MEMORANDUM
COLORADO
To: Board of County Commissioners July 30, 2002
From: Lauren Light, Planner
Subject: Acceptance of Irrevocable Letter of Credit
On July 29, 2002, the Department of Planning Services received a Irrevocable Standby Letter of
Credit No. SLCPPDX01588 for Nelson Pipeline Constructors Inc.,for a contractors office and shop
facility located on Lot B of RE-2765,which is approximately 500 feet north of State Highway 52 and
1/4 mile west of WCR 23, case number USR-1375, in the amount of two hundred fifty three
thousand, nine hundred and thirty-eight dollars and no/100s ($ 253,938.00).
Items covered under this letter of credit include:
Culverts and Riprap $ 6,494.00
Site Grading $ 114,670
Pavement $ 61,920
Fence and Signs $ 16,219
Landscaping $ 54,535
Total Estimated Cost of Improvements $ 253,838
The Weld County Attorney, the Department of Public Works and the Department of Planning
Services, have determined that the amount of the agreement will be sufficient to complete the work
required for a for a contractors office and shop facility located on Lot B of RE-2765, which is
approximately 500 feet north of State Highway 52 and 1/4 mile west of WCR 23, and the
Department of Planning Services recommends acceptance of this Letter.
SERVICE,TEAMWORK,INTEGRITY,QUALITY
bank
Five Star Service Guaranteed C* / 161 7
U.S. BANK NATIONAL ASSOCIATION
INTERNATIONAL BANKING GROUP
I 1 I S.W. FIFTH AVE., SUITE 500
PORTLAND, OREGON U.S.A. 97204
SWIFT: USBKUS44PDX FAX: (503)275-5132
JULY 24, 2002
IRREVOCABLE STANDBY LETTER OF CREDIT
BENEFICIARY: APPLICANT:
BOARD OF COUNTY COMMISSIONERS NELSON PIPELINE CONSTRUCTORS, INC.
OF WELD COUNTY 6215 COLORADO BLVD.
915 10TH STREET COMMERCE CITY, CO 80022
GREELEY, CO 80632
LETTER OF CREDIT NUMBER: SLCPPDX01588
EXPIRY DATE: JULY 24,2003
AT: ISSUING BANK'S INTERNATIONAL BANKING COUNTERS
LOCATED AT ADDRESS INDICATED ABOVE.
AMOUNT: NOT EXCEEDING US$253,838.00 (TWO HUNDRED FIFTY-THREE THOUSAND EIGHT
HUNDRED THIRTY-EIGHT AND NO/100 U.S. DOLLARS)
WE HEREBY OPEN OUR IRREVOCABLE STANDBY LETTER OF CREDIT IN YOUR FAVOR FOR
THE ACCOUNT OF NELSON PIPELINE CONSTRUCTORS,INC., 6215 COLORADO BLVD.,
COMMERCE CITY, CO 80022, FOR A SUM NOT TO EXCEED THE AGGREGATE OF TWO
HUNDRED FIFTY-THREE THOUSAND EIGHT HUNDRED THIRTY-EIGHT AND NO/100 U.S.
DOLLARS.
EACH DRAFT SO DRAWN MUST BE MARKED"DRAWN UNDER U.S. BANK NATIONAL
ASSOCIATION, 111 S.W. FIFTH AVE., SUITE 500,PORTLAND, OREGON U.S.A. 97204,
IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER SLCPPDX01588 AND BE
ACCOMPANIED BY A"SIGNED STATEMENT FROM THE BOARD OF COUNTY
COMMISSIONERS OF WELD COUNTY, COLORADO, STATING THAT NELSON PIPELINE
CONSTRUCTORS,INC. HAS COMMITTED A MATERIAL BREACH OF THE IMPROVEMENTS
AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS
REGARDING USR-1375 SITE PLAN BY AND BETWEEN NELSON PIPELINE CONSTRUCTORS,
INC. AND THE BOARD OF COUNTY COMMISSIONERS OF THE COUNTY WELD."
THIS CREDIT IS SUBJECT, SO FAR AS APPLICABLE,TO"THE UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS"(1993 REVISION) INTERNATIONAL CHAMBER OF
COMMERCE PUBLICATION NO. 500.
***THIS PAGE 001 FORMS AN INTEGRAL PART OF CREDIT SLCPPDX01588***
EV bank
Five Star Service Guaranteed C)
WE HEREBY AGREE WITH YOU THAT DRAFT(S)UNDER AND IN COMPLIANCE WITH THE
TERMS OF THIS LETTER OF CREDIT WILL BE DULY HONORED UPON PRESENTATION TO US
TO OUR MAIN OFFICE,UNDER U.S. BANK NATIONAL ASSOCIATION, 111 S.W. FIFTH AVE.,
SUITE 500, PORTLAND, OREGON U.S.A. 97204.
THIS LETTER OF CREDIT INITIALLY EXPIRES ON JULY 24, 2003.
THIS LETTER OF CREDIT IS AUTOMATICALLY EXTENDED WITHOUT AMENDMENT, FOR
ADDITIONAL ONE YEAR PERIODS FROM THE CURRENT OR ANY FUTURE EXPIRATION DATE
UNLESS AT LEAST SIXTY(60)DAYS PRIOR TO ANY SUCH EXPIRATION DATE,U.S. BANK
NATIONAL ASSOCIATION NOTIFIES BENEFICIARY IN WRITING BY COURIER 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 U.S. BANK NATIONAL ASSOCIATION; (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 U.S. BANK NATIONAL
ASSOCIATION THAT THE LETTER OF CREDIT NO. SLCPPDX01588 WILL NOT BE RENEWED
AND THAT NELSON PIPELINE CONSTRUCTORS, INC. HAS FAILED TO PROVIDE PROOF OF
ADEQUATE COLLATERAL AND SUBSTITUTION OF THIS LETTER OF CREDIT NO.
SLCPPDX01588; (C) COPY OF LETTER FROM U.S. BANK NATIONAL ASSOCIATION STATING
NON-RENEWAL OF LETTER OF CREDIT NO. SLCPPDX01588 AND THE ORIGINAL LETTER OF
CREDIT.
U.S. BANK NATIONAL ASSOCIATION
A MEMBER OF THE FEDERAL RESERVE SYSTEM
1Jha. . :
TANDBY LETTERS OF CREDIT
M.CHRIS JOACHIMS
LETTERS OF CREDIT OFFICER
***THIS PAGE 002 FORMS AN INTEGRAL PART OF CREDIT SLCPPDX01588***
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