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HomeMy WebLinkAbout20030695.tiff RESOLUTION RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PUBLIC ROAD MAINTENANCE), AGREEMENT FOR IMPROVEMENTS FOR WELD COUNTY ROAD 40.5, AUTHORIZE CHAIR TO SIGN, AND ACCEPT FORM OF COLLATERAL FOR MILL CREEK PLANNED UNIT DEVELOPMENT#553 - DENNIS NEAL 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 January 29, 2003, the Department of Planning Services staff approved the Mill Creek Planned Unit Development#553, for Dennis Neal, 4770 Baseline Road, Suite 200, Boulder, Colorado 80303, for nine (9) lots, one (1) agricultural lot with a conservation easement, and 2.68 acres of common open space on the following described real estate, to-wit: Lot B of Recorded Exemption #2835; being part of the SW1/4 of Section 29, Township 4 North, Range 68 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 (Public Road Maintenance) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Dennis Neal, with terms and conditions being as stated in said agreement, and WHEREAS, pursuant to certain Conditions of Approval, the Board has been presented with an Agreement for Improvements for Weld County Road 40.5 between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Dennis Neal, with terms and conditions being as stated in said agreement, and WHEREAS, the Board has been presented with Irrevocable Letter of Credit #030006 from Horizon Banks, N.A., 3002 Bluff Street, Boulder, Colorado 80301, in the amount of $108,817.00, and WHEREAS, after review, the Board deems it advisable to approve said agreements and accept said Irrevocable Letter of Credit as stated above, copies of which are attached hereto and incorporated herein by reference. 2003-0695 PL1610 nn IMPROVEMENTS AGREEMENT- DENNIS NEAL PAGE 2 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 (Public Road Maintenance) between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Dennis Neal, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Agreement for Improvements for Weld County Road 40.5 between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Dennis Neal, be, and hereby is, approved. BE IT FURTHER RESOLVED that Irrevocable Letter of Credit#030006 from Horizon Banks, N.A., 3002 Bluff Street, Boulder, Colorado 80301, in the amount of$108,817.00, be and hereby is, accepted. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 17th day of March, A.D., 2003. BOARD OF COUNTY COMMISSIONERS WEL OU TY, OL RADO ATTEST: �G� ��� 4 D vid E. on , Chair Weld County Clerk toyft : . .• -. ` =' � Robert D. Masden, Pro- em BY: . a(i . • Deputy Clerk to the -� r ? \' EXCUSED D M.APPRO AS TO .• • EXCUSED DATE OF SIGNING (AYE) William H. Jerke unty Atto At � fl� �E GlennVaad Date of signature: /6) 2003-0695 PL1610 722 IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS (PUBLIC ROAD MAINTENANCE) THIS AGREEMENT,made and entered into this 17th day of March ,20 03,by and between the County of Weld, State of Colorado, acting through its Board of County Commissioners, hereinafter called"County,"and Dennis Neal ,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,RE-2835 being a part of the SW Y.Section 29,Township 4 North,Range 68 West of the 61h P.M.,Weld County,Colorado WHEREAS,a final Subdivision/Planned Unit Development(PUD)Plat of said property,to be known as Mill Creek PUD 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 a Subdivision Improvements Agreement guaranteeing the construction of the public improvements shown on plans, plats and supporting documents of the Subdivision Final Plat, Planned Unit Development Final Plat,or 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 Subdivision or Planned Unit Development 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 Subdivision or Planned Unit Development to the County for approval prior to the letting of any construction contract. Before acceptance of the roads within the Subdivision or Planned Unit Development by the County, Applicant shall furnish one set of 1111111111111111111111111111 IIII 1111111 III 11111111 IIII Revised 07,01/2002 3046722 03/28/2003 02:50P Weld County, CO 1 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 1 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 by the proposed improvements. All such rights-of-way and easements used for the construction of roads to be accepted by the County shall be conveyed to the County and the documents of conveyance shall be furnished to the County for recording. 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" 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. Whenever a Subdivision or Planned Unit Development is proposed within three miles of an incorporated community located in Weld County or located in any adjacent county, the Applicant shall be required to install improvements in accordance with the requirements and standards that would exist if the plat were developed within the corporate limits of that community. If the incorporated community has not adopted such requirements and standards at the time the Subdivision or Planned Unit Development is proposed, the requirements and standards of the County shall be adhered to. If both the incorporated community and the County have requirements and standards,those requirements and standards that are more restrictive shall apply. 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 furnish copies of test results to the County. 3.3 At all times during said construction,the County shall have the right to reasonably test and inspect,or to require reasonable testing and inspection of material and work, at Applicant's expense. Any material or work not conforming to the approved plans and specifications shall be removed and replaced to the reasonable 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 Subdivision or Planned Unit Development 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 1111111111111111111 HMO IIII 1111111 III 11111 Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO 2 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder �1 i1 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 while acting within the scope of their employment, or otherwise except for the liability, loss, or damage arising from the intentional torts or the gross negligence of the County or its employees. All contractors and other employees engaged in construction of the improvements shall maintain adequate worker's 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. 5.0 See attached Agreement for Improvements to WCR 40.5 Off-Site Improvements Reimbursement Procedure: The subdivider,applicant,or owner may be reimbursed for off-site road improvements as provided in this section when it has been determined by the Board of County Commissioners that the road facilities providing access to the Subdivision or Planned Unit Development are not adequate in structural capacity,width, or functional classification to support the traffic requirements of the uses of the Subdivision or Planned Unit Development. 5.1 The subdivider, applicant, or owner shall enter into an off-site improvements agreement prior to recording the final plat when the subdivider,applicant,or owner expects to receive reimbursement for part of the cost of the off-site improvements. 5.2 The off-site improvements agreement shall contain the following: The legal description of the property to be served. The name of the owner(s)of the property to be served. A description of the off-site improvements to be completed by the subdivider,applicant,or owner. The total cost of the off-site improvements. The total vehicular trips to be generated at build-out by the Subdivision, Resubdivision,or Planned Unit Development,as specified by the ITE Trip Generation Manual, or by special study approved by the Board of County Commissioners. - A time period for completion of the off-site improvements. The terms of reimbursement. The current address of the person to be reimbursed during the term of the agreement. - Any off-site improvements agreement shall be made in conformance with the Weld County policy on collateral for improvements. 5.3 If the subdivider, applicant, or owner fails to comply with the improvements agreement,the opportunity to obtain reimbursement under this section is forfeited. 5.4 When it is determined by the Board of County Commissioners that vehicular traffic from a Subdivision, Resubdivision, or Planned Unit Development will use a road improvement constructed under an improvements agreement, the subsequent subdivider,applicant,or owner shall reimburse the original subdivider,applicant,or owner, for a portion of the original construction cost. In no event shall the original 1111111111111111111II1111111IIII1111111III 11111 1111 till Revised 07/01/2002 3046722 03/28/N03 02:50P Weld County, CO 3 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder subdivider, applicant, or owner collect an amount which exceeds the total cost of improvements less the pro rata share of the total trip impacts generated by the original development. Evidence that the original subdivider,applicant,or owner has been reimbursed by the subsequent subdivider,applicant or owner shall be submitted to the Department of Planning Services prior to recording the Subdivision, Resubdivision, or Planned Unit Development Final Plat. 5.5 The amount of road improvement costs to be paid by the subsequent subdivider, applicant,or owner of a Subdivision,Resubdivision,or Planned Unit Development using the road improvements constructed under a prior improvement agreement will be based upon a pro rata share of the total trip impacts associated with the number and type of dwelling units and square footage and type of nonresidential developments intended to use the road improvement. The amount of road improvement costs shall also consider inflation as measured by the changes in the Colorado Construction Cost Index used by the Colorado Division of Highways. The cost of road improvements may be paid by cash contribution to the prior subdivider, applicant or owner, or by further road improvements which benefit the prior subdivider, applicant, or owner's property. This decision shall be at the sole discretion of the Board of County Commissioners based upon the need for further off-site road improvements. 5.6 The report entitled TRIP GENERATION (Third Edition, 1982)of the institute of Transportation Engineers shall normally be used for calculating a reasonable pro rata share of the road improvement construction costs for all Subdivisions, Resubdivisions,or Planned Unit Developments. A special transportation study shall be used for land uses not listed in the ITE Trip Generation Manual. Any question about the number of trips a Subdivision, Resubdivision, or Planned Unit Development will generate shall be decided by the County Engineer. 5.7 The term for which the subdivider,applicant,or owner is entitled to reimbursement under the off-site improvements agreement,entered into between the subdivider and the County, is ten years from the date of execution of a contract for road improvements. 5.8 This provision is not intended to create any cause of action against Weld County or its officers or employees by any subdivider,applicant,or owner for reimbursement, and in no way is Weld County to be considered a guarantor of the monies to be reimbursed by the subsequent subdividers,applicants,or owners. 6.0 Acceptance of Streets for Maintenance by the County: Upon compliance with the following procedures by the Applicant,streets within a Subdivision or Planned Unit Development shall be accepted by the County as a part of the County road system and will be maintained and repaired by the County. 6.1 If desired by the County, portions of street improvements may be placed in service when completed according to the schedule shown on Exhibit"B,"but such use and operation shall not constitute an acceptance of said portions. 6.2 County may,at its option, issue building permits for construction on lots for which street improvements detailed herein have been started but not completed as shown on 1 111111 11111 1111111 11 1111111 IIII 1111111 III MI IIII 1111 Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO 4 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder Exhibit"B,"and shall continue to issue building permits so long as the progress of work on the Subdivision or Planned Unit Development improvements in that phase of the development are satisfactory to the County; and all terms of this Agreement have been faithfully kept by Applicant. 6.3 Upon completion of the construction of streets within a Subdivision or Planned Unit Development and the filing of a Statement of Substantial Compliance, the applicant(s)may request in writing that the County Engineer inspect the streets and recommend that the Board of County Commissioners accept them for partial maintenance by the County. After street improvements have been partially approved, the County shall issue any remaining building permits for construction on lots with access from such streets, subject to compliance with other County regulations. Partial maintenance consists of all maintenance except for actual repair of streets, curbs and gutters, and related street improvements. Not sooner than nine months after acceptance for partial maintenance of streets,the County Engineer shall,upon request by the applicant,inspect the subject streets,and notify the applicant(s)of any deficiencies. The County Engineer shall reinspect the streets after notification from the applicant(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 the streets for full maintenance. Upon a receipt of a positive unqualified recommendation from the County Engineer for acceptance of streets within the development,the Board of County Commissioners shall accept said streets as public facilities and County property,and shall be responsible for the full maintenance of said streets including repair. 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 by the 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 within six(6)months then the Final Plat approval and all preliminary approvals shall automatically expire. An 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 the time frames listed in Exhibit B 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 updated 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 The applicant may choose to provide for a phased development by means of designating filings of a Planned Unit Development Final Plan or Subdivision Final Plan. The applicant would need only to provide collateral for the improvements in 1 111111 11111 1111111 11 1111111 1111 1111111 III 11111 1111 IIII Revised 07101/2002 3046722 03128/2003 02:50P Weld County, CO 5 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder each filing as approved. The County will place restrictions on those portions of the property that are not covered by collateral which will prohibit the conveyance of the property or the issuance of building permits until collateral is provided or until improvements are in place and approved pursuant to the requirements for a Request for Release of Collateral. 7.3 The applicant intends to develop in accordance with Exhibits"A"and"B." The costs of the improvements described in Exhibit"A"will be adjusted higher or lower for the year and quarter in which the contemplated work is being performed based on"The State Highway Bid Price Index" contained in the "Quarterly Cost Report" of The Engineering News-Record as published by The McGraw-Hill Companies. The applicant has provided cost estimates for all phases of the development which will be adjusted in accordance with The State Highway Bid Price Index at the time of posting of collateral for each phase. 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 to One-Hundred percent(100%)of the total value of the improvements as set forth in Section 6.0 and 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, 111111111131111111 13 11111111 IIII 111111 III 31111111 Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO 6 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 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 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. 8.2 Trust Deed upon all or some of the proposed development or other property acceptable to the Board of County Commissioners provided that the following are 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. 1111111111111111111 II 1111111 VIII 1111111 III 11111 IIII VIII Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO 7 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 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 project or for a portion of the project by Weld County,the Applicant must present a Statement of Substantial Compliance from an Engineer registered in the State of Colorado that the project or a portion of the project has been completed in substantial compliance with approved plans and specifications documenting the following: 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(CDOT)Schedule for minimum materials sampling, testing and inspections found in 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 Sections 9.0 thru 9.5 shall be noted on the final construction plans. 9.7 Following the submittal of the Statement of Substantial Compliance and recommendation of acceptance of the streets for partial maintenance 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 acceptance by the Board of County Commissioners for full maintenance under Section 5.3 herein. 1111111111111111111 111111111 IIII 1111111 III 11111 //1 IIII Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO 8 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 10.0 Public Sites and Open Spaces: When the Board of County Commissioners, pursuant to a rezoning, Subdivision or Planned Unit Development, requires the dedication,development and/or reservation of areas or sites other than Subdivision or Planned Unit Development streets and utility easements of a character, extent and location suitable for public use for parks, greenbelts or schools, said actions shall be secured in accordance with one of the following alternatives,or as specified in the Planned Unit Development plan, if any: 10.1 The required acreage, as may be determined by relevant Sections of the Weld County Code,shall be dedicated to the County or the appropriate school district,for one of the above purposes. Any area so dedicated shall be maintained by the County or school district. 10.2 The required acreage,as determined by relevant Sections of the Weld County Code may be reserved through deed restrictions as open area,the maintenance of which shall be a specific obligation in the deed of each lot within the Subdivision or Planned Unit Development. 10.3 In lieu of land,the County may require a payment to the County in an amount equal to the market value at the time of Final Plat submission of the required acreage as determined by relevant Sections of the Weld County Code. Such value shall be determined by a competent land appraiser chosen jointly by the Board and the Applicant. The cash collected shall be deposited in an escrow account to be expended for parks at a later date. 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. IN WITNESS WHEREOF,the parties hereto have caused this Agreement to be executed on the day and year first above written. APPLICANT: 94' - TITLE: O wove Subscribed and sworn to before me this 2(51 day of IUD tl 2.4_-/ 20 DI . My Commission expires: $ t 7 Job Notary Public j �V� ktPY Pei : �A •:O , al I I"III I'lll lllllll ll lllllll lll' lllll'l 111 llll' llll llll Revised 07/01/2002 3046722 03/28/2003 02:50P Weld County, CO �- 9 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder • ATTEST: 104/1,a4 BOARD OF COUNTY COMMISSIONERS WEIUNTY,COLORADO Weld County Clerk to the . arDavi E. Long C air (03/17/2003) o � Deputy Clerk to the Boar C 1 APPROVED AS TO FORM: County Attorney 1 111111 11111 1111111 II 1111111 IIII 1111111 III 111111 III VIII 3046722 03/28/2003 02:51W Weld County, CO 10 of 16 R 0.00 0 0.00 Steve Moreno Clerk& Recorder 10 Revised 07/01/2002 Ono -c(o95 EXHIBIT "A" Name of Subdivision or Planned Unit Development: Mill Creek PUD Filing: Location: Lot B, RE-2835, located in part of the SW4 29-04-68 of the 6th P.M.,Weld County,CO Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Subdivision or Planned Unit Development the following improvements. (Leave spaces blank where they do not apply) Improvements Quantity Units Unit Estimated Costs Construction Cost Road Relocaton Street prep and asphalt paving, weed kill I $27,900.00 Curbs, gutters, and culverts N/A Sidewalk N/A Storm sewer facilities Retention ponds 1 $12,700.00 Ditch Improvements Subsurface drainage Sanitary sewers N/A Trunk and forced lines Mains Laterals (house connected) On-site sewage facilities On-site water supply and storage Water Line 1 1,320' $14.00 $18,480.00 Fire hydrants 3 $2000.00 $6000.00 Survey and street monuments and boxes Street lighting at Bus Delivery Site 1 $200.00 $200.00 Street Name Signs 1 $50.00 $50.00 Fencing requirements Landscaping 7 $180.00 $1260.00 Park improvements Road culvert Grass lined swale Telephone Gas Electric 9 $3,169.66 $28,527.00 Water transfer SUB-TOTAL: $95,117.00 Engineering and Supervision Costs$ 13,700.00 (Testing, inspection, as-built plans and work in addition to preliminary and final plat; supervision of actual construction by contractors) TOTAL ESTIMATED COST OF IMPROVEMENTS AND SUPERVISION $ 108,817.00 1111111 11111 1111111 11 11111111111 1111111 III 111111 III I'll 3046722 03/28/2003 02:50P Weld County, Co 11 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 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 impr a ents shall be completed according to the construction schedule set out in Exhibit"B." By: /f Vl pplicant Off AeL.,---- Date: H Z ,20 CR. Title (If corporation,to be signed by President and attested to by Secretary,together with corporate seal.) 1111111 HIDED II 1111111 III' 1111111 III HMO IIII 3046722 03/28/2003 02:50P Weld County, CO 12 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder EXHIBIT "B" Name of Subdivision or Planned Unit Development: Mill Creek PUD Filing: Location: _Lot B,RE-2835,located in part of the SW4 29-04-68 of the 6th P.M.,Weld County,CO Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this Subdivision or Planned Unit Development the following improvements. All improvements shall be completed within three 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 Site grading Fall/Winter 2005 Street base Fall/Winter 2005 Street paving Fall/Winter 2005 Curbs,gutters,and culverts Sidewalk Storm sewer facilities Fall/Winter 2005 Retention ponds Fall/Winter 2005 Ditch improvements Fall/Winter 2005 Subsurface drainage Sanitary sewers Trunk and forced lines Mains Laterals(house connected) On-site sewage facilities On-site water supply and storage Fall/Winter 2005 Water mains Fire hydrants Fall/Winter 2005 Survey and street monuments and boxes Fall/Winter 2005 Street lighting Fall/Winter 2005 Street name signs Fall/Winter 2005 Fencing requirements Landscaping Fall/Winter 2005 Park improvements Road culvert Fall/Winter 2005 Grass lined swale Telephone Fall/Winter 2005 Gas Electric Fall/Winter 2005 Water Transfer HBO 11111 IMO 11 1111111 I'll IMO III 111111 III IIII 3046722 03/28/2003 02:50P Weld County, CO 13 of 16 R 0.00 D 0.00 Steve Moreno Clerk& Recorder 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. I By: ; Applicant d1/4.,V✓ te- Date: I I 2 l , 20 ao\ . Title (If corporation,to be signed by President and attested to by Secretary,together with corporate seal.) 1 Inn 11111 IIIIIII 11 IS 11 Mt t HP 111 it3046722 0312812003 14 of 16 R 0.00 0 0.00 Steve Moreno Clerk& Recorder w MEMORANDUM o .4- co ch TO: Dennis Neal • Todd Hodges/Anne Johnson, Todd Hodges Design o Drew Scheltinga, County Public Works cc2 o FROM: Matt Delich O N U a) • a DATE: November 14, 2002 o It 2 SUBJECT: Dennis Neal Development (Mill Creek PUD) - Road improvement formula methodology (File: 0123ME02) • co w O N m This memorandum describes a possible cost allocation/sharing formula for treatment of Weld County Road 40 (WCR40'11) between WCR3 wo and WCR5. It is not known whether the preferred treatment would be a) dust suppression or paving. Since WCR3 is also a gravel road, it S z ui would appear that dust suppression would be more practical. However, w o from available draft agreements, it appears that paving of the road CD m will be required. The length of WCR40 that would require treatment a is approximately 0. 32 miles. The length of the road segment should be introduced into the formula, since all traffic was assigned to the N west. It is the most likely route for trips produced at this site. Based upon the traffic impact study (TIS) , the Mill Creek PUD Development would add 86 trips per day to the subject segment of WCR40'-�. The threshold volume that would require treatment is 200 vehicles per day (vpd) . The forecasted total traffic at build-out of the Mill Creek POD Development is 210 vpd. It is reasonable to use 210 vpd as the denominator in the cost allocation formula. The suggested formula is: W Cost Allocation Percentage for 1 mile of WCR40ll = (Site Traffic/210) (100%) (Segment impacted) a Where: Site Traffic = 86 vpd Uw Cost Allocation Percentage for [4 0.32 mile of WCR40'h = 6/210) (100 ) (0.32) z J Ui = 13% o O a The 13 percent is the contribution that the Mill Creek PUD -1 a Development would make to Weld County, specifically for treatment of aone mile of WCR401 . According to Weld County requirements, this amount would only be used if WCR40'-t was treated or paved. In addition to this, if no treatment occurred in a five year period, W ad then the Mill Creek POD Development would be absolved of this L v obligation. F- LL a 6 Q '- 2 IIIIIII VIII IIIIIII II IIIIIII IIII IIIIIII III IIIIII III III Recorder • 3046722 0312812 15 of 16 R 0.00 D 0.00 Steve Moreno t e _ s ,TE tokS 00-1, 19 2'7 MEMORANDUM co o C9 M TO: Dennis Neal '9 Todd Hodges/Anne Johnson, Todd Hodges Design o co Drew Scheltinggaa,, Weel)d County Public Works O 2 0 FROM: Matt Delich U Cm • x DATE: November 14, 2002 o LL SUBJECT: Dennis Neal Development (Mill Creek PUD) - Road p improvement formula methodology (File: 0123ME02) • co w O > N C) This memorandum describes a possible cost allocation/sharing C°o formula for treatment of Weld County Road 404.1 (WCR40441) between WCR3 > o and WCR5. It is not known whether the preferred treatment would be dust suppression or paving. Since WCR3 is also a gravel road, it w w would appear that dust suppression would be more practical. However, o from available draft agreements, it appears that paving of the road U = will be required. The length of WCR40>1 that would require treatment 0_ is approximately 0.32 miles . The length of the road segment should N be introduced into the formula, since all traffic was assigned to the N west. It is the most likely route for trips produced at this site. Based upon the traffic impact study (TIS) , the Mill Creek PUD Development would add 86 trips per day to the subject segment of WCR40%1. The threshold volume that would require treatment is 200 vehicles per day (vpd) . The forecasted total traffic at build-out of the Mill Creek PUD Development is 210 vpd. It is reasonable to use 210 vpd as the denominator in the cost allocation formula. The suggested formula is: W Cost Allocation Percentage for (Site Traffic/210) (1008) (Segment impacted) I mile of WCR40 ah = C7 Where: Site Traffic = 86 vpd 3 -J5 C/ w Cost Allocation Percentage for i7 U 5 0.32 mile of WCR404 _ (86/210) (100£) (0.32) z 7 J W = 13%. . W O G f� ✓J a The 13 percent is the contribution that the Mill Creek PUD • m Development would make to Weld County, specifically for treatment of one mile of WCR40;1. According to Weld County requirements, this amount would only be used if WCR4031 was treated or paved. In I' addition to this, if no treatment occurred in a five year period, W °1•3 then the Mill Creek PUD Development would be absolved of this ILL obligation. CQ ~ 1111111 III!! 1111111 II 1111111 111 1111111 III 111111 III 1111 3046722 03/28/2003 02.50P Weld County, rk 16 of 16 R 0.00 D 0.00 Steve Morena Clerk& Recorder AGREEMENT FOR IMPROVEMENTS FOR WCR 40.5 721 THIS AGREEMENT is made and entered into this 17th day of mar. by and between Dennis Neal, developer of Mill Creek PUD hereinafter referred to as Developer", with an address of 4770 Baseline Road, Suite 200, Boulder, Colorado 80303 Boulder County, Colorado and the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, Colorado, hereinafter referred to as "County," with offices located at 915 10th Street, Greeley, Colorado 80631. WITNESSETH: WHEREAS, the Developer has obtained approval for a Site Specific Development Plan and Subdivision Final Plat for 9 Residential Lots and one Agricultural Lot with existing gifted conservation easement for the Mill Creek PUD hereinafter referred to as the "Development," and WHEREAS, WCR 40.5 from WCR 3 to WCR 5, hereinafter referred to as 'the Road", will need paving, in part, due to the increased traffic generated by the Development, a distance of approximately one mile, and WHEREAS, WCR 40.5 abuts a portion of Lots 1-3 and 9-10, 9 of the lots will need WCR 40.5 for residential access to the Development, and WHEREAS, the average daily trips anticipated from the Development are 86. Due to the location of the Development access along WCR40'h, it is expected that site generated traffic would be oriented to WCR3. The distance from WCR3 to the access is 0.32 miles. Given this, the Development contribution of traffic, in consideration of the trip distribution, is 13 percent of the cost of paving WCR40Yz, and WHEREAS, the proportional costs of paving the Road attributable to the traffic generated by the lots in the Development using the Road, is estimated to be $5060 per lot. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereto agree as follow: 1. TERM A. The term of this Agreement shall be from the date first written above to the completion of paving the Road and fmal accounting by County and payment of all land development charges by the Developer for the 9 residential lots accessing the Road, or five years if WRC 40.5 is not paved. 1111111 11111 111111111FBI 1111111 III 11111 11II 1111 3046721 03/28/2003 02:50P Weld County, CO 1 of 5 R 0.00 0 0.00 Steve Moreno Clerk& Recorderi-5_0,cC 2. OBLIGATIONS OF THE COUNTY A. Weld County plans to pave, within five years of the date first written above,the Road at a current estimated cost of$350,000. The paving improvements are anticipated to be for 12 foot travel lanes with 4 foot shoulders designed in accordance with generally accepted engineering practices but the actual design shall be at the discretion of Weld County B. Design, construction, and maintenance of this portion of Road shall be the responsibility by the County. C. County must pave the roads within five years of the date first written above or forfeit all rights to land development charges, which are the obligation of the Developer whether already in escrow or remaining to be paid. D. Weld County shall perform a final accounting once paving is complete and may collect from the escrow account (or from the developer if the amount in the escrow is insufficient to satisfy developers obligation ) up to 13 percent of the total cost of paving WCR 40.5. If additional traffic is generated prior to paving WCR 40.5, such that the percentage of traffic generated by the development is less than 13 percent, the County shall adjust the percentage charged to the developer proportionately. Any amount which must be collected from the developer which is not paid within 45 days of final accounting shall assessed interest in the amount of 8 percent per annum. 3. OBLIGATION OF THE DEVELOPER A. Developer agrees to pay the amount of 5060 per each lot accessing the Road. The actual amount to be determined in accordance with paragraph 2.D. B. The Developer agrees to escrow monies as follows At the sale of the first lot $5060, at the sale of the second lot $5060, at the sale of the third lot $5060, at the sale of the fourth lot $5060, at the sale of the fifth lot 5060, at the sale of the sixth lot $5060, at the sale of the seventh lot $5060, at the sale of the eight lot $5060, and at the sale of the ninth lot $5060. The escrow account shall be set up according to paragraph 4 herein. C. The Developer shall not be released from this obligation unless County does not pave the road within the time frame set forth in HBO 11111 NMI Il 1111111 IIII 1111111 III 11111 IIII IIII 3046721 03/28/2003 02:50P Weld County, CO 2 of 5 R 0.00 D 0.00 Steve Moreno Clerk& Recorder paragraph 2.C. herein. In no event shall Developer's obligation under this Agreement exceed $45,540 subject to adjustment to a higher or lower figure from the first quarter of 2002 to the year and quarter in which the contemplated work is being performed based on "The State Highway Bid Price index contained in the "Quarterly Cost report" of The Engineering News-Record as published by The McGraw-Hill Companies. 4. ESCROW AGREEMENT the terms of which will be subject to review by the County, that provides at least the following: A. The cash in escrow when fully funded is $45,540. B. The escrow agent guarantees that the escrowed funds will be disbursed according to the terms of this agreement and will not release any portion of the funds without prior written approval of the Weld County Board of County Commissioners. 5. SEVERABILITY If any term or condition of this Agreement shall be held to be invalid, illegal, or unenforceable, this Agreement shall be construed and enforced without such provision to the extent that this Agreement is then capable of execution within the original intent of the parties hereto. 6. NO THIRD PARTY BENEFICIARY ENFORCEMENT. It is expressly understood and agreed that the enforcement of the terms and conditions of this Agreement, and all rights of action relating to such enforcement, shall be strictly reserved to the undersigned parties and nothing in this Agreement shall give or allow any claim or right of action whatsoever by any other person not included in this Agreement. It is the express intention of the undersigned parties receiving services of benefits under this Agreement shall be an incidental beneficiary only. 7. MODIFICATION AND BREACH This Agreement contains the entire agreement and understanding between the parties to this Agreement and supersedes any other agreements concerning the subject matter of this transaction, whether oral or written. No modification, amendment, notation, renewal, or other alteration of or to this Agreement shall be deemed valid or of any force or effect whatsoever, unless mutually agreed upon in writing by the undersigned parties. No Breach of any term, provisions, or clause of this Agreement shall be 1 111111 11111 1111111 11 ENO /III 1111111 III 11111 /III1ill 3046721 03/28/2003 02:50P Weld County, CO 3 of 5 R 0.00 D 0.00 Steve Moreno Clerk& Recorder deemed waived or excused, unless such waiver or consent shall be in writing and signed by the party claimed to have waived or consented. Any consent by any party hereto, or waiver of, a breach by any other party, whether express or implied, shall not constitute a consent to waiver of, or excuse for any other different or subsequent breach. 8. NO WARRANTY. Neither County nor Developer, by virtue of their entering into this Agreement and upon their promises to perform the work described herein, make warranties, either express or implied, that the improvement work and/or maintenance of these roads meet standards other than those generally required for counties and cities of the size and type similar to County. 9. BINDING This agreement shall be binding on the heirs, successors, and assigns of the parties. 1111111111111111111 1111111 1111 1111111 III 11111 1111 t h/ 3046721 03/28/2003 02:50P Weld County, CO d 4 of 5 R 0.00 D 0.00 Steve Moreno Clerk& Recorer IN WITNESS WHEREOF the parties hereto have signed this Agreement this 2 \ day of r/eU , 2002. By: ilk developer ATTESteli BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO Weld County Clerk to e tE5l ctellif:., '1 David E. Long, Chat 3/17/2003) BY: ' at/[ . �. Deputy Clerk to the BY. (// c\z APPRO 9 AS TO FORM: Co my Attorney II1IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII II"III"II'Itil 0.00.50e a Moreno C We lerk&Re 3046721 0 012812003 50I6R U7cZ' -cc2s fit MEMORANDUM • WITO: Board of County Commissioners COLORADO DATE: March 5, 2003 FROM: Sheri Lockman, Planner II SUBJECT: Acceptance of Improvements Agreement According to Policy Regarding Collateral for Improvements (Public Road Maintenance), Acceptance of Improvements for Weld County Road 40.5 and Irrevocable Letter of Credit Mill Creek PUD Case Number PF-553 Dennis Neal, applicant The Departments of Planning Services and Public Works have reviewed the Improvements Agreements for Mill Creek PUD. Items covered under the Improvements Agreement According to Policy Regarding Collateral for Improvements (Public Road Maintenance include: Street preparation and asphalt paving, weed kill $ 27,900. Retention ponds $ 12,700. Water line $ 18,480. Fire hydrants $ 6,000. Street light $ 200. Street name signs $ 50. Landscaping $ 1,260. Electric $ 28,527. Total Estimated Cost of Improvements and Supervision $ 95,117. Items covered under the Improvements for Weld County Road 40.5 include: Cash in escrow $ 45,540. 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 Mill Creek PUD and future improvements to Weld County Road 40.5. The Department of Planning Services recommends acceptance of the Improvements Agreement According to Policy Regarding Collateral for Improvements (Public Road Maintenance) Acceptance of Improvements for Weld County Road 40.5 and Irrevocable Letter of Credit. 2003-0695 ai&/0 Weld County Planning Department ie 6 GREELEY OFFICE MEMORANDUM JAN 312003 RECEIVED TO: Sheri Lockman, Planner II DATE: January 30, 2003 • FROM: Donald Carroll, Engineering Administrator ♦ COLORADO ' SUBJECT: PF-553; Mill Creek PUD I have reviewed the Improvements Agreement According to Policies Regarding Collateral for Improvement (public road maintenance), utilizing the plat drawing, verifying quantities and unit costs the transportation portion of the Exhibit A section. All transportation items appear to be adequate in quantity and unit cost to complete the project. pc: Peter Schei, Public Works PF-553 m:/planning/PF-553.doc 5 EXHIBIT "A" You r�c i c Name of Subdivision or Planned Unit Development: Mill Creek PUD en Filing: r+ Location: _Lot B,RE-2835, located in part of the SW4 29-04-68 of the 61h P.M.,Weld County, CO Intending to be legally bound, the undersigned Applicant hereby agrees to provide throughout this J Subdivision or Planned Unit Development the following improvements. (Leave spaces blank where they s do not apply) Improvements Quantity Units Unit Estimated Costs Construction #-- Cost Road Relocaton Street prep and asphalt paving, weed kill I $27,900.00 V Curbs, gutters, and culverts N/A Sidewalk N/A Storm sewer facilities Retention ponds 1 $12,700.00 / Ditch Improvements Subsurface drainage Sanitary sewers N/A Trunk and forced lines Mains Laterals (house connected) On-site sewage facilities On-site water supply and storage Water Line 1 1,320' $14.00 $18,480.00 Fire hydrants 3 $2000.00 $6000.00 Survey and street monuments and boxes Street lighting at Bus Delivery Site 1 $200.00 $200.00 Street Name Signs 1 $50.00 $50.00 Fencing requirements Landscaping 7 $180.00 $1260.00 Park improvements Road culvert Grass lined swale Telephone Gas Electric 9 $3,169.66 $28,527.00 Water transfer SUB-TOTAL: $95,117.00 Engineering and Supervision Costs$ 13,700.00 (Testing, inspection, as-built plans and work in addition to preliminary and final plat; supervision of actual construction by contractors) TOTAL ESTIMATED COST OF IMPROVEMENTS AND SUPERVISION $ 108,817.00 / . 3" 4.57 a4' E 4" CJ- 4. / 33O . o , Pr- �� fir " 78 4-57:) 14_ ; age o, )O, ) -;Lc } ' t • 1� .S rte• / .1;:(, r • Weld County Planning Department GREELEY OFFICE 414 jarl MEMORANDUM JAN 312003 � RECEIVED O TO: Sheri Lockman, Planner II DATE: January 30, 2003 • FROM: Donald Carroll, Engineering Administrator Lw.,' COLORADO SUBJECT: PF-553; Mill Creek PUD; Off Site Utilizing the traffic study provided by Matt Delich, P.E., for the Mill Creek PUD, the current estimate to upgrade and pave one mile of county road is approximately $350,000. The traffic generated by the Mill Creek PUD is 13%. The applicant will escrow $5,060 at the sell of each lot for a total of $45,540. The adjustment is subject to the higher or lower figure from the first quarter of the 2002 to the year and quarter in which the contemplated work is being performed based on (STATE HIGHWAY BID PRICE INDEX CONTAINED IN THE QUARTERLY COST REPORT) of the Engineering News Report as published by McGraw-Hill Companies. The dollar amount appears to be the 13% identified in the traffic study. pc: Peter Schei, Public Works PF-553 m:/planning/PF-553.doc Horizon Banks., IRREVOCABLE LETTER OF CREDIT HORIZON BANKS,N.A. 3002 BLUFF ST BOULDER,CO 80301 NO. 030006 303-413-0700 "LENDER" BENEFICIARY: CUSTOMER: WELD COUNTY COMMISSIONERS DENNIS W.NEAL ADDRESS&TELEPHONE NO: ADDRESS&TELEPHONE NO: ATTN:CLERK TO THE BOARD 4770 BASELINE RD.,#200 P.O.BOX 758 BOULDER,CO 80303 GREELEY,CO 80632 970-356-4000 303-772-1336 IDENTIFICATION NO: IDENTIFICATION NO:520-68-7454 EXPIRATION DATE This Letter of Credit shall expire upon the earlier of: 1. It is a condition of this letter of credit that it shall be deemed automatically extended without amendment for one(I)year from the present or any future expiration date unless at least sixty(60)days prior to such expiration date you are notified by registered letter,return receipt requested,or overnight courier service that we elect not to consider this letter of credit renewed for any such period. Subject to the foregoing,this letter of credit shall expire on February 19,2004,and all drafts and accompanying statements or documents must be presented to Lender on or before that time;or 2. The day that Lender honors a draw under which the full amount of this Letter of Credit has been drawn. Lender hereby establishes at the request and for the account of Customer,an Irrevocable Letter of Credit in favor of Beneficiary for a sum of One Hundred Eight Thousand,Eight Hundred Seventeen Dollars($108,817.00). These funds shall be made available to Beneficiary upon Lender's receipt from Beneficiary of sight drafts drawn on Lender at Lender's address indicated above(or such other address that Lender may provide Beneficiary in writing)during regular business hours and accompanied by the signed written statements or documents indicated below. WARNING TO BENEFICIARY: PLEASE EXAMINE THIS LETTER OF CREDIT AT ONCE. IF YOU FEEL UNABLE TO MEET ANY OF ITS REQUIREMENTS, EITHER SINGULARLY OR TOGETHER, YOU SHOULD CONTACT THE CUSTOMER IMMEDIATELY TO SEE IF THE LETTER OF CREDIT CAN BE AMENDED. OTHERWISE YOU WILL RISK LOSING PAYMENT UNDER THIS LEI 1ER OF CREDIT FOR FAILURE TO COMPLY STRICTLY WITH ITS TERMS AS WRITTEN. 1. DRAFT TERMS AND CONDITIONS Lender shall honor drafts submitted by Beneficiary under the following terms and conditions: Beneficiary's draft drawn at sight on Horizon Banks,N.A.,accompanied by the following documents: 1. The original of this letter of credit and any subsequent amendments,along with a description of the work and improvements that need to be completed. 2. Beneficiary's manually signed statement on its letterhead reading exactly as follows: "THE FUNDS DRAWN UNDER LETTER OF CREDIT NO.030006 ISSUED BY HORIZON BANKS,N.A.ARE DUE BY REASON OF Dennis W.Neal has committed a material breach of the Improvements Agreement according to policy regarding collateral for improvements regarding dated the day of I9_by and between Dennis W.Neal and the Board of County Commissioners of the County of Weld" 3. Copy of the certified letter,return receipt requested,of such default sent to Dennis Neal dated at least 10(TEN)days prior to this ' drawing. Upon Lender's honor of such drafts,Lender shall be fully discharged of its obligations under this Letter of Credit and shall not be obligated to make any further payments under this Letter of Credit once the full amount of credit available under this Letter of Credit has been drawn. If a non-conforming demand is made, Lender shall notify Beneficiary of its dishonor on or before the time specified in Paragraph 5 bel-.ww. Beneficiary shall have no recourse against Lender for any amount paid under this Letter of Credit once Lender has honored any draft or other document which complies strictly with this Letter of Credit,and which on its face appears otherwise in order but which is signed,issued, or presented by a party or under the name of a party purporting to act for Beneficiary,purporting to claim through Beneficiary,or posing as Beneficiary without Beneficiary's authorization. By paying an amount demanded in accordance with this Letter of Credit, Lender makes no representation as to the correctness of the amount demanded and Lender shall not be liable to Beneficiary,or any other person,for any amount paid or disbursed for any reason whatsoever,including,without limitation,any non-application or misapplication by Beneficiary of the proceeds of such payment. By presenting upon Lender or a confirming bank,Beneficiary certifies that Beneficiary has not and will not present upon the other,unless and until Beneficiary meets with dishonor. Beneficiary promises to return to Lender any funds received by Beneficiary in excess of the Letter of Credit's maximum drawing amount. 2. USE RESTRICTIONS All drafts must be marked"DRAWN UNDER HORIZON BANKS,N.A.IRREVOCABLE LETTER OF CREDIT NO.030006", and the amount of each draft shall be marked on the draft. Only Beneficiary or Beneficiary's Transferee(if this Letter of Credit is transferable)may complete a draft and accompanying statements or documents required by this Letter of Credit and make a draw under this Letter of Credit. This original Letter of Credit must accompany any draft drawn hereunder. Partial draws are permitted under this Letter of Credit. Lender's honor of a partial draw shall correspondingly reduce the amount of credit available under this Letter of Credit. Following a partial draw,Lender shall return this original Letter of Credit to Beneficiary with the partial draw noted hereon;in the alternative,and in its sole . discretion,Lender may issue a substitute Letter of Credit to Beneficiary in the amount shown above,less any partial draw(s). 3. PERMITTED TRANSFEREES If checked,this Letter of Credit may be transferred by Beneficiary upon prior written notice to Lender of the transfer. The Transferee shall be deemed the new Beneficiary of this Letter of Credit and the documents of the Transferee,including drafts required under this Letter of Credit,will be processed by Lender(or any intermediary)without the original Beneficiary's intervention and without any further obligation of Lender to the original Beneficiary. X _If checked,the right to draw under this Letter of Credit shall be nontransferable,except for: A. A transfer(in its entirety,but not in part)by direct operation of law to the original Beneficiary's administrator,executor, bankruptcy trustee,receiver,liquidator,successor,or other representative at law;and B. The first immediate transfer(in its entirety,but not in part)by such legal representative to a third party after express approval of a governmental body(judicial,administrative,or executive). 4. TRANSFEREE'S REOUIRED DOCUMENTS When the presenter is a permitted Transferee under paragraph 3 above,the documents required for a draw shall include: A. All documents required elsewhere in this Letter of Credit,except that such documents may be in the name of and executed by either the original Beneficiary or the presenter permitted by paragraph 3;and B. When the presenter is a permitted Transferee under paragraph 3.A.or a third party under paragraph 3.B.,a certified copy of the one or more documents which show the presenter's authority to claim through or to act with authority for the original Beneficiary. 5. TIMING OF DISHONOR Lender may rely upon any reason for dishonor which it communicates to Beneficiary or the presenter within three(3)Banking Days after Lender has received the last document forming Beneficiary's presentment(the"Three-Day Period"). Lender shall be entitled to rely upon such reason without regard to either(i)the timing of any presentment made before the Expiration Date,or(ii)the timing inside the Three-Day Period of any preliminary communication(s)from Lender concerning the dishonor decision or any reason for dishonor. For any reason for dishonor given during the Three-Day Period,Lender shall be conclusively deemed to have met the "reasonable time","without delay",and other timing requirements as the Uniform Customs and Practice for Documentary Credits, 1993 Revision,ICC Publication No 500,as most recently published by the International Chamber of Commerce(the"UCP")may impose. The Expiration Date shall not be extended to accommodate a presentment made less than three(3)Banking Days before the Expiration Date,and Beneficiary shall not be entitled to submit a draw request or provide Lender with any documents in support of a draw after the Expiration Date. Lender shall not be required to communicate a dishonor decision or its reasons within a time less than the Three-Day Period. "Banking Day"means any day,except Saturday,on which commercial banks located in Colorado are open. 6. COMPLIANCE BURDEN Lender is not responsible for any impossibility or other difficulty in achieving strict compliance with the requirements of this Letter of Credit precisely as written. Beneficiary understands and acknowledges:(i)that unless and until the present wording of this Letter of Credit is amended with Lender's prior written consent,the burden of complying strictly with such wording remains solely upon Beneficiary;and(ii)that Lender is relying upon the lack of such amendment as constituting Beneficiary's initial and continued approval of such wording. 7. NON-SEVERABILITY If any aspect of this Letter of Credit is ever declared unenforceable for any reason by any court or governmental body having Jurisdiction,Lender's entire engagement under this Letter of Credit shall be deemed null and void ab initio,and both Lender and Beneficiary shall be restored to the position each would have occupied with all rights available as though this Letter of Credit had never occurred. This non-severability provision shall override all other provisions in this Letter of Credit,no matter where such provision appears within this Letter of Credit. 8. CHOICE OF LAW/JURISDICTION This Letter of Credit is subject to the UCP. This Letter of Credit shall be governed by and construed in accordance with the laws of the State of Colorado, United States of America, except to the extent such laws are inconsistent with the UCP. Lender and Beneficiary consent to the jurisdiction and venue of any court selected by Lender in its discretion located in the State of Colorado in the event of any legal proceeding under this Letter of Credit. 9. EXPIRATION Lender hereby agrees with Beneficiary that drafts drawn under and in compliance with the terms of this Letter of Credit will be duly honored if presented to the Lender on or before the Expiration Date. Dated: March 3,2003 LENDE • Todd A.P ok,Bou Branch President ure ENDORSEMENT OF DRAFTS DRAWN: Date Negotiated by Amount in Words Amount in Figures Hello