HomeMy WebLinkAbout820833.tiff RESOLUTION
RE: APPROVE POLICY ON COLLATERAL FOR IMPROVEMENTS
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, a Policy on Collateral for Improvements has been
presented to the Board of County Commissioners, said Policy being
attached hereto and incorporated herein by reference, and
WHEREAS, said Policy shall be applied to all future Subdivi-
sion, Planned Unit Development and Change of Zone Applications ,
and
WHEREAS, after reviewing said Policy, the Board deems it
advisable and in the best interests of Weld County to approve
same.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Com-
missioners of Weld County, Colorado that the Policy on Collateral
for Improvements, which shall apply to all future Subdivision,
Planned Unit Development and Change of Zone Applications be, and
hereby is, approved.
The above and foregoing Resolution was, on motion duly made
and seconded, adopted by the following vote on the 12th day of
July, A.D. , 1982.
BOARD OF COUNTY COMMISSIONERS
� . ., WELD COUNTY, COLORADO
ATTEST: /T r�u</y�G l�nvr�4&% ( y, ' / I
Weld County Clerk and Recorder Jpt1 artin, Chairman
and Clerk to the Board 7-7
(1�
L_Byp �(/ ti� ��LJ � i. uck Carlson, Pro-Tem
Deputy CountyClerk
EXCUSED
APRROVED AS TO FORM: Norman Carlson
/1://' 7/L r17
County Attorney . Kiby ,/
e K. Ste mark
820833
DATE PRESENTED: July 14 , 1982
' L / o ,
POLICY OF WELD COUNTY BOARD OF COUNTY COMMISSIONERS
ON COLLATERAL FOR IMPROVEMENTS
I . General Requirements for Collateral:
A. This policy shall be applied to all future
Subdivision Applications , Planned Unit Development
Applications and Change of Zone Applications . If
this policy has not been applied to an application,
the policy shall not be applied to a request for
complete releases of collateral and the procedures
for release of collateral shall be as set forth in
the Improvements Agreement. WELD COUNTY SHALL NOT
GUARANTEE MAINTENANCE OF ROADS IN DEVELOPMENTS WHICH
HAVE NOT COMPLIED WITH THE PROVISIONS OF THIS POLICY.
B. The value of all collateral submitted to Weld County
must be equivalent to 100% of the value of the
improvements as shown in the Improvements Agreement.
Prior to Final Plat approval, the applicant shall
indicate which of the five types of collateral he
prefers to be utilized to secure the improvements
subject to final approval by the Board of County
Commissioners (hereinafter referred to as the Board)
and the execution of an Improvement Agreement.
Acceptable collateral shall be submitted and the plat
recorded within six months of the Final Plat
approval. If acceptable collateral has not been
submitted within six months then the Final Plat
approval and all preliminary approvals shall
automatically expires. An applicant may request that
the Board of County Commissioners 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 year after the Final Plat approval (not
one year after acceptable collateral is submitted)
unless the applicant (s) requests that the
Improvements Agreement be renewed at least thirty
(30) days prior to its expiration and further
provides that cost estimates for the remaining
improvements are updated and collateral is provided
in the amount of 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 Board, at its
discretion, may make demand on all or a portion of
the collateral and take steps to see that the
improvements are made.
The applicant may choose to provide for a phased
development by means of designating portions of a
Planned Unit Development, Subdivision, or Change of
Zone, that the applicant wishes to develop. The
applicant would need only to provide collateral for
the improvements in each portion of said Planned Unit
Development, Subdivision, or Change of Zone as he
proposes to develop them; the Board will place
restrictions on those portions of the Planned Unit
Development, Subdivision, or Change of Zone, which
are not covered by collateral which will prohibit the
conveyance of the property or the issuance of
building permits on said portions until collateral is
provided for those portions or until improvements are
in place and approved pursuant to the requirements
for a Request for Release of Collateral (See III) .
II. The five types of collateral listed below are acceptable
to Weld County:
A. An irrevocable Letter of Credit from a Federal or
State licensed financial institution on a form
supplied by Weld County. The letter of credit shall
state at lease the following:
1 . The Letter of Credit shall be in an
amount equivalent of 100% of the total
value of the improvements as set forth
in Section I B of this policy.
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.
3 . The developer may draw from the Letter
of Credit in accordance with the
provisions of this policy.
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
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 .
5 . The Letter of Credit shall specify
that 15% of the total Letter of Credit
amount cannot be drawn upon and will
remain available to Weld County until
released by Weld County.
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 15% , as set forth
in paragraph II A 5 , 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
full force and effect until after the
Board has received sixty (60) days
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written notice from the issuer of the
Letter of Credit of the pending
expiration. Said notice shall be sent
by certified mail to the Clerk to the
Board of County Commissioners .
B. Trust Deed upon all or some of the proposed
development or other property acceptable to the Board
provided that the following are submitted:
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 M.A. I .
member of the American Institute of
Real Estate Appraisers indicating that
the value of the property encumbered
in its current degree of development
is sufficient to cover 100% of the
cost of the improvements as set forth
in the Improvements Agreement plus all
costs of sale of the property.
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 M.A. I . member of
the Institute of Real Estate
Appraisers indicating that the value
of the property encumbered in its
current state of development is
sufficient to cover 100% of the cost
of the improvements as set forth in
the Improvements Agreement plus all
costs of sale of the property.
3 . A title insurance policy insuring that
the Trust Deed creates a valid
encumbrance which is senior to all
other liens and encumbrances.
4 . A building permit hold shall be placed
on the encumbered property.
C. Escrow Agreement that provides at least the
following:
1 . The cash in escrow is at least equal
to 100% of the amount specified in the
Improvements Agreement.
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
Board.
3 . The escrow agent will be a Federal or
State licensed bank or financial
institution.
4 . If the Board of County Commissioners
of Weld County determines there is a
default of the Improvements Agreement,
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the escrow agent, upon request by the
County, shall release any remaining
escrowed funds to the County.
D. A surety bond given by a corporate surety authorized
to do business in the State of Colorado in an amount
equivalent to 100% of the value of the improvements
as specified in the Improvements Agreement.
E. A cash deposit made with the Board equivalent to 100%
of the value of the improvements.
III. Requests for Release of Collateral:
A. Prior to release of collateral for the entire project
or for a portion of the project by Weld County, the
Developer 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:
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.
2 . Test results must be submitted for all
phases of this project as per Colorado
Department of Highway Schedule for
minimum materials sampling, testing
and inspections found in CDOH
Materials Manual.
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.
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.
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.
B. The requirements in III A 1-5 shall be noted on the
final construction plans.
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C. Upon completion of the construction of streets within
a subdivision and the filing of a Statement of
Substantial Compliance, the developer (s) may request
in writing that the County Engineer inspect its
streets and recommend that the Board accept them for
partial maintenance by the County. Partial
maintenance consists of all maintenance except for
actual repair of streets, curbs and gutters , and
related street improvements.
D. Following the submittal of the Statement of
Substantial Compliance and recommendation of
acceptance of the streets for partial maintenance by
the County, the developer (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.
E. The request for release of collateral shall be
accompanied by "Warranty Collateral" in the amount of
10% of the value of the improvements as shown in the
Improvements Agreement excluding improvements fully
accepted for maintenance by the responsible
governmental entity, special district or utility
company.
F. Not sooner than nine months after acceptance for
partial maintenance of streets, the County Engineer
shall, upon request by the developer , inspect the
subject streets , notify the developer (s) of any
deficiencies. The County Engineer shall re-inspect
the streets after notification from the developer (s)
that any deficiencies have been corrected. If the
County Engineer finds that the streets are
constructed according to County standards , he shall
recommend acceptance of streets for full maintenance
to the Board. Upon a receipt of a positive
recommendation from the County Engineer for
acceptance of streets within the development, the
Board shall accept said streets as public facilities
and County property, and shall be responsible for the
full maintenance of said streets including repair.
The Board, at the same time , shall release the
Warranty Collateral.
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