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HomeMy WebLinkAbout20110642.tiffBank of Colorado THERE ' S ONLY ONE March 21, 2017 Konig Ag CO 37231 Hwy 14 Briggsdale, CO 80611 RECEIVED APR 07 2e:V WELD COUNTY COMMISSIONER° Re: Irrevocable Unconditional Letter of Credit #3782033702 Client Amount of: One Thousand Five Hundred ($1,500.00) To Whom It May Concern: The above named Irrevocable Letter of Credit is hereby amended to change the expiration date to March 8, 2018. All terms and requirements of the original Letter of Credit remain the same. Sincerely, er Market President EQUAL HOUSING LENDER MEMBER FDIC Paul Knapp Branch President Date:3 r; / 7 www.bankofcolorado.com 3459 W. 20th Street, Ste. 114 Greeley, CO 80634 Phone: (970) 378-1800 Fax: (970) 378-1801 lAci Gil 2 -0U —D1/244). pLatqs Bank of Colorado March 11, 2015 Kon; Ag CO 372_51 HWY 14 Briggsdale, CO 80611 Re: Irrevocable Unconditional Letter of Credit #3782033702 Amount of: One Thousand Five Hundered ($1,500.00) To W horn It May Concern: RECEIVED MAR 1 7 2015 WECOMMISSIONERS The above named Irrevocable Letter of Credit is hereby amended to change the expiration date to March 8, 2016. All terms and requirements of the original Letter of Credit remain the same. Sincerely, %1" onni Paul K Kna Branch President Branch Vice President �oexNij MEMBER FDIC Date` f/ 5 www.bankoicolorado.com 3459 West 20th Street Suite 114 Greeley, CO 81)634 Phone: (971)) 378-1800 Fax: (9711) 378-180 I RESOLUTION RE: APPROVE IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS, AUTHORIZE CHAIR TO SIGN, AND ACCEPT COLLATERAL FOR USE BY SPECIAL REVIEW PERMIT #1767 - KONIG AG COMPANY 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 19, 2011, the Weld County Board of Commissioners approved a Site Specific Development Plan and Use by Special Review Permit #1767, for Michael Konig, 57851 County Road 81, Grover, Colorado 80729, do Konig Ag Company, 37231 Highway 14, Briggsdale, Colorado 80611, for a Mineral Resource Development Facility, including Open Pit Gravel Mining (Konig Borrow Mine) on the following described real estate, to -wit: NW1/4 of Section 11, Township 10 North, Range 62 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 Konig Ag Company, with terms and conditions being as stated in said agreement, and WHEREAS, the Board has been presented with Irrevocable Standby Letter of Credit #2033702 from New West Bank, 3459 West 20th Street, Suite 114, Greeley, Colorado 80634, in the amount of $1,500.00, 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 Weld County, and Konig Ag Company, be, and hereby is, approved. BE IT FURTHER RESOLVED that Irrevocable Standby Letter of Credit #2033702 from New West Bank, 3459 West 20th Street, Greeley, Colorado 80634, in the amount of $1,500.00, be and hereby is, accepted. 11111111111 111111 I\ I\ III \\%L IIIlI%LI III liltIII\ it3759198 0313012011 02:50P Weld Coud1Y, CO 1 of 19 R 0.00 D 0.00 Steve Moreno Clerk Recorder cc Yu.), PL, iger1. 2011-0642 PL2098 IMPROVEMENTS AGREEMENT — KONIG AG COMPANY PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 9th day of March, A.D., 2011. BOARD OF COUNTY COMMISSIONERS W , D COUNTY, CO'IRADO ATTEST: Weld County Clerk to the BY: Deputy Clerk to the BBoaf,4 APPROVED A f ' FORM: ounty Attorney Date of signature: ougl.s Radema her David E. Long 1 IIIIII 11111 111111 11111IIIIIII IIIIII1\ III IIIII 1111 1111 3759198 03130/2011 2 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Chair can P. nway, Pro-Tem am F. Garcia e Ceti c) 2011-0642 PL2098 IMPROVEMENTS AGREEMENT ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS Konig Pit—USR-1767 THIS AGREEMENT, made and entered into this day of YYlOo C,aO 11, by and between the County of Weld, State of Colorado, acting through its Board of County Commissioners, hereinafter called "County," and Konig Ag Company., hereinafter called "Property Owner?' WITNESSETH: WHEREAS, Property Owner is the owner of, the following described property in the County of Weld, Colorado: All of the NW4 Section I I, Township 10 North, Range 62 West; of the 6th P.M., Weld County, Colorado and hereinafter referred to as "the Property," and WHEREAS, Property Owner has acquired land use permits from County for a Mineral Resource Development Facility, including open pit gravel mining, on approximately 35 acres on the above described real property, and the County is currently in the process of considering an Use -by - Special Review for the Property (USR-1767), and WHEREAS, the Property Owner acknowledges that the issuance of USR-1767 is conditional upon Property Owner's performance of the on -site and off -site improvements which are described in this Agreement and depicted in a set of plans provided by Property Owner (hereinafter referred to as "Plans"), a copy of which is attached to this Agreement and made a part hereof, and WHEREAS, Property Owner acknowledges that it may not engage in any activity described in USR-1767 and/or any activity related to the businesses described above until said improvements have been completed, and WHEREAS, the parties agree that Property Owner shall be required to commence work on the on -site or off -site improvements, and to provide collateral for said improvements pursuant to the provisions of Sections A.8.0 andE.7.2. NOW, THEREFORE, IN CONSIDERATION OF the foregoing and of the promises and covenants contained herein, the parties hereto promise, covenant and agree as follows: A. Required Off -Site Improvements 1.0 Weld County Road 81: The Property Owner shall be responsible for the construction of certain on -site and off -site safety improvements, which shall include: construction of adequate turning radii at the main site entrance which may extend partially onto the WCR 81 ROW, drainage and signage installations, as indicated on the accepted Construction M:U'LANNING — DEVELOPMENT REVIEW\USR-Use by Special Review\USR-1767 Konig GrnvelUmpmvements Agreement\Konig Pi[ (1 SR -1767) Improvements Aemeemem (-4- 11.docx 1 111111 11111 111111 111111 111 IIII 11111111 III 11111 IIII IIII 3759198 03/30/2011 02:50P Weld County, CO 3 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder ar// -(`)lc- I/4 Plans. The main entrance improvements will include; a double cattle guard set (one right after the other), in the exit portion of the roadway. (See Section D.2.0 of this Agreement). Other improvements will include installation of two "Trucks Turning" signs to be installed on WCR 120 west and east of the intersection with WCR 81. Granting of any new point of access may generate additional obligations with County for Off -Site Improvements and the need to post additional "Road Maintenance Collateral". 2.0 Road Improvements Responsibilities: Property Owner is solely responsible for all designated improvements, as specified above in Section A.1.0 and for any safety improvements mandated by the County, and for all expenses associated therewith. These responsibilities include, but are not limited to the following: design, surveys, utility locates, present and future right-of-way clearances and permits; coordination with oil and gas operators and facilities, affected railroad facilities and affected irrigation facilities; traffic control; and project safety during construction. Property Owner shall obey all applicable regulations issued by the Occupational Safety and Health Administration (hereinafter "OSHA"), CDOT, Colorado Department of Public Health and Environment, (hereinafter "CDPHE") and other regulatory agencies. 3.0 Engineering Design and Construction Plans: All engineering designs and construction plans must be provided by Property. All plans showing work within the County Right -Of -Way (ROW) shall be reviewed and accepted by Weld County prior to the start of construction. For all construction in the County ROW, prior to the issuance of any access permit or ROW permit, a construction schedule giving times and locations of all proposed improvements shall be provided to Public Works for review and acceptance. 4.0 Construction Standards: All construction and materials controls for the project and any designated improvements in the ROW shall conform to the requirements in effect as the time of the completion of the improvements set forth in the "Standard Specifications for Road and Bridge Construction" provided by CDOT. 5.0 Traffic Control: Prior to any construction in the County ROW and as a condition of issuance of any access permit or ROW permit, the applicant shall submit a traffic control plan for County review. During construction, appropriate safety signage shall be posted in accordance with the then current version of the "Manual of Uniform Traffic Control Devices". 6.0 Off -Site Dust Control/Abatement and/or Paving (If Applicable): As stated by the Applicant in the Board of County Commissioner's January 19, 2011 hearing, and consistent with the Property Owner's Emissions Notice (APEN) and Dust Abatement Plan as submitted to the Colorado and Weld County Departments of Public Health and Environment, the Property Owner may be required to provide dust abatement from the pit entrance north along WCR 81 to 120, when necessary as required by the Dust Abatement Plan approved by the Weld County Department of Public Health and Environment and dated October 11,2010. 7.0 Future Improvements: Future improvements to the haul route(s) may be required by County for reasons related to: changes in site activity or truck circulation patterns and numbers, roadway classification changes, and newly permitted facilities affecting the haul route traffic usage. Property Owner shall address all County across issues associated with haul routes. 2 M:PLANNING - DEVFI DPMENT REVIEW\USR-Use by Special Review\USR-1767 Konig GrevelUmprovements Agreement\Konig Pit (USR- 17671 Imnrovnneet Aowen...., nom_ i I'd - 1111111 11111 111111 111111 III 1111 11111 111 11111 1111 11ll 3759198 03/30/2011 02:50P Weld County, CO 4 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Future County mandated measures may include improvements to the following intersections: WCR 81 and WCR 120, or any other intersection then utilized by Property Owner as a result of the establishment of a new haul route. Property Owner shall pay a proportionate cost share based on the ESAL calculation method using then current data on the haul route in the implementation of the above -mentioned improvements. County personnel alone shall make all determinations regarding the gathering of and use of traffic data when making decisions regarding cost sharing. In order to accurately determine percentage of Property Owner haul truck traffic, the County reserves the right to install traffic counters on the driveway(s) of their facility 8.0 Timing of Improvements: The onsite improvements specified in Section A.1 of this Agreement shall be constructed and accepted by the County prior to commencement of site open pit gravel mining activities 9.0 Acceptance of Off -Site Improvements: Upon completion of the off -site improvements, Property Owner shall contact a representative of the Weld County Department of Public Works and request an inspection of the off -site improvements described in paragraph A.1.0-2.0 above. The County's representatives may then initiate the acceptance process set forth in Paragraphs E.6.0, sections 6.1-6.3. 9.1 All references in this Agreement to "Acceptance of Improvements" shall refer to the County confirming completion of said improvement(s) according to the accepted construction plans. By accepting any improvement, the County does not thereby accept said improvement for purposes of future maintenance, nor does the County accept any present or future responsibilities or obligations relative to these improvements. B. Haul Routes: 1.0 Established Haul Routes: 1.1 Exiting or entering the site: Haul trucks shall enter or exit the site at the approved access onto WCR 81. Haul trucks will travel on WCR 81 north to the intersection of WCR 120, at which point, trucks may disperse in any direction. Haul trucks are encouraged to utilize paved county roads whenever possible. Per the request and existing signage by the Town of Grover, no haul route truck traffic is allowed to travel directly through the Town of Grover. 1.2 Any deviation or proposed change to the approved haul mute described under B.l .1 shall follow the procedure found under B.4.0 1.3 No haul truck may exceed CDOT required specifications for pounds per axle. 1.4 In unusual or rare occasions, if Property Owner's particular projects mandate deviation from the approved haul route for a limited period of time (which is defined in this Agreement as a period of not more than thirty 3 M.\PLANNING — DEVELOPMENT RLV IEW\USR-Use by Special ReviewllUSR-1767 Konig GravelUmpmvements Agrecment\Konig Pit 1 111111 11111 111111 111111 III fill 11111111 III 11111 IIII IIII 3759198 03/30/2011 02:50P Weld County, CO 5 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder days), temporary use of alternative Haul Routes may be allowed by County when requested by the Property Owner.. If County approves such deviation, trucks will utilize paved county roads whenever possible. A deviation from the established Haul route lasting more than thirty (30) days or requests for two or more deviations within a twelve month period shall be subject to the terms of Paragraph 4.0 of this Section B. In the event that haul truck traffic, in excess of 15% of the daily facility truck trips, utilizes alternate haul routes, the provisions of Paragraph 4.0 of this Section B shall be triggered. 2.0 Haul Route Signage: Property Owner shall install haul route signs at all exit points of the Property which can be clearly seen by drivers leaving the facility and which clearly depict County approved haul routes. 3.0 No Deviation from Permitted Haul Routes: No deviation in the use of any roads other than those specifically authorized for use in this Agreement is permitted without the prior written amendment of this Agreement. 4.0 Effect of Future Changes to Haul Routes: In the event that County is requested by Property Owner or site operator to approve the use of an additional access, new haul route, or an alternative haul route as a result of a change in Property Owner's site activities and/or truck circulation patterns, and if the alternative or additional access or haul route utilizes any unpaved portion of County roads, and if County determines that dust control or paving is required on the unpaved portion of said haul route roads to protect the health, safety and welfare of impacted County residents, Property Owner agrees that dust control or paving measures to protect the public health, safety, and welfare shall be instituted. County will determine the proportionate share of dust control and/or paving costs to be paid by Property Owner based upon then current truck trip counts that identify traffic loading due to Property Owner -sourced traffic on approved alternative haul routes. The amount and extent of dust control and paving measures will be determined by site -specific conditions at the time, as determined by County personnel. C. Road Maintenance Requirements: 1.0 Obligation to Maintain Current and Future Haul Routes: As stated by the Applicant in the Board of County Commissioner's January 19, 2011 hearing, Property Owner agrees to excavate, repair, or patch any damage on current or future haul route roads, which has been created by heavy truck hauling from the Property. Road repairs subject to this Agreement include damages to the paved intersection of WCR 81 with WCR 120, and any damages to WCR 81 between the intersection of WCR 81 and the gravel pit entrance (the haul route). Should Property Owner's site activities and/or should Property Owner's truck circulation patterns change in the future so that County approves an alternate haul route, and all or a significant portion of Property Owner's sourced traffic no longer utilizes the above -described haul route and instead utilizes other portions of County roads, Property Owner shall cooperate with County in maintenance of said alternate haul route roads. The type and method of repair will be determined by the County Engineer or his representative, and shall require a written amendment to this Agreement executed by County and Property Owner. All repairs shall commence within thirty (30) days of receipt of Weld County's written notice. 4 MAPLANNING — DEVELOPMENT REVIEW\USR-Use by Special Review\USR-1767 Konig Grovel\Improvements Agre mtenttKonig Pit (USR-1767) Improvements Agreement (3-4-1 1 ).docx 11111111111111111111111III IIII I1111111III111111111III 3759198 03/30/2011 02:50P Weld County, CO 6 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Record 2.0 Applicant's Proportionate Share: Weld County Public Works mad grader records indicate that WCR 81 adjacent to the USR-1767 site currently requires regular maintenance road grading 6 times a year. The County will continue to grade the road when needed up to the current 6 times a year. To mitigate the additional haul truck traffic impacts generated by the Project, the Property Owner/Applicant agrees to provide or fund any additional maintenance road grading, beyond the current 6 times a year, as needed to maintain or restore WCR 81 to County standard. 3.0 Applicant shall pay its proportionate share directly to the contractor it engages to perform the additional maintenance road grading, Applicant's share of road grading expense may be reimbursed and/or reduced by any funds collected for Road Maintenance from developments on properties utilizing the Property Owner/Applicant-maintained section of WCR 81. 4.0 Annual Road Inspection: County will conduct a road inspection annually with the cooperation of Property Owner and all other Property Owners and/or Lessees who are required by County to participate in road improvement/maintenance agreements. As a result of the annual inspection, County, in its sole discretion, shall determine actual conditions and shall further determine what road improvement/maintenance work is to be performed during that construction season. 5.0 Future Road Replacement: At any time in the future, if, in the opinion of County, road damage increases beyond the point that repair of damage cannot maintain the road in a safe and usable condition, Property Owner shall pay a proportionate cost of a complete restoration based on the number of then current truck trips on the haul route. 6.0 Sharing of Road Maintenance Responsibilities with Other Property Owners: It is anticipated that Property Owner and other Property Owners and/or Lessees subject to agreements similar to this Agreement will perform the required road maintenance work and will share in the equipment, labor, and materials required. Any such sharing arrangement between Property Owner, and other Property Owners and/or Lessees shall be conducted pursuant to separate agreements between the Property Owner and other Property Owners and/or Lessees. County shall approve the Agreements only to determine whether the required improvements/maintenance projects have been adequately addressed. County alone shall determine the sufficiency of all road improvement/maintenance projects when completed. 7.0 Violation of Terms of Agreement: If Property Owner does not perform as outlined in this Agreement and Exhibits A and B such non-performance will constitute a violation of Property Owner's land use permits granted by County, and County will take whatever remedial measures it deems necessary, against Property Owner. In addition to any other remedy available to the County in law or equity, a failure to comply with this Agreement shall be considered grounds for revocation of USR-1767 as it now exists or may, from time to time, be amended in accordance with the procedures of the Weld County Code. 5 M `PLANNING - DEVELOPMENT REVIEW \USR-Use by Special Review\USR-1767 Konig (navel\Improvements AgrecmcntlKonig Pit 1 111111 11111 111111111111 III IIII 11111111 111 11111 1111 1111 3759198 03/30/2011 02:50P Weld County, CO 7 of 19 R 0.00 0 0.00 Steve Moreno Clerk & Recorder D. On -Site Improvements: 1.0 Landscaping and Fencing Requirements: Property Owner shall maintain any existing landscaping and provide re -seeding of the property where applicable as shown on the accepted construction plans and USR- 1767 plat map . Specifically, Property Owner shall at its own expense maintain grasses and other landscaping where applicable as shown on the accepted construction plans and USR-1767 plat map. In the event any of these improvements may include work extending into County Right -Of -Way in which cast- a Right -Of -Way or access permit is required. 2.0 On -Site Grading, Drainage Facilities and Paving: Property Owner shall, at its own expense, grade and/or pave, if applicable, specified roadways, accesses, easements and parking areas, and install accepted drainage and signage components , adjacent to or within the interior portion of the property in accordance with the directives of the Weld County Department of Public Works and Department of Planning Services, as further described in the accepted Construction Plans and USR-1767 Plat Map. The main entrance improvements will include; construction of adequate turning radii at the main site entrance onto WCR 81, an appropriately sized drainage culvert, and a double cattle guard set (one right after the other), in the exit portion of the roadway, to ensure a complete revolution of the truck tires to minimize the tracking of mud and debris onto WCR 81. Any other on -site improvements shall be completed as indicated on the accepted Construction Plans for this facility. Property Owner shall be responsible for all maintenance of the onsite improvements. Additional infrastructure improvements will be addressed at the time of application for any future amended USR and/or at the time present acreage of operation increases. Some of these improvements may include work extending into County Right -Of -Way in which dace a Right -Of -Way or access permit is required. 3.0 Timing of Improvements: Property Owner must obtain Access and Right -of - Way permits for said improvements. Any alterations to the accepted Construction Plans must be pre -approved in writing by the County Planning and Public Works Departments. At that time, and unless otherwise amended, Property Owner agrees that any landscaping and other on -site improvements, as indicated in Section D. 2.0 above shall be completed within the parameters established in Section E. 7.2 and Exhibit B. 4.0 Acceptance of On -Site Improvements: Upon completion of the on -site improvements, Property Owner shall contact the Weld County Department of Planning Services and the Weld County Department of Public Works and request an inspection of the on -site improvements described in Paragraph D.1.0 and D.2.0 above. The County's representatives may then initiate the process for "Acceptance of Improvements" set forth in Paragraphs E.6.0, sections 6.1-6.3. E. General Requirements (If Applicable): 1.0 Engineering Services: Property Owner shall furnish, at its own expense, all engineering services in connection with the design and construction of the improvements identified on the accepted Construction Plans. Engineering services performed by an engineer registered in the State of Colorado are only required following notification by the County. 6 M:IPLANNING — DEVELOPMENT REYIEWIUSR-Use by Special Review USR-1767 Konig GmveNmprovements Agreement Konig Pit 1111 11111 lilt 111111 III III VIII IIII 1111 3759198 03/30/2011 02:50P Weld County, CO 8 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 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 Property Owner shall furnish construction drawings for the road improvements on public rights -of -way or easements and all improvements interior on the Property for approval prior to the letting of any construction contract. 2.0 Rights -of -Way and Easements: Before commencing the construction of any improvements herein agreed upon for public rights -of -way or easements, Property Owner shall acquire, at the sole expense of Property Owner, 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: Property Owner shall furnish and install, at its own expense, the improvements identified on the accepted Construction Plans and USR-1767 Plat Map. 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. 3.2 Property Owner shall employ, at its own expense, a qualified testing company previously approved by the County to perform all testing of materials or construction; and shall furnish copies of test results to the County. If County discovers inconsistencies in the testing results, Property Owner shall employ at its expense a third party qualified testing company approved by County. Such third party shall furnish the certified results of all such testing 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 Property Owner's expense. Any material or work not conforming to the approved plans and specifications, including but not limited to damages to property adjacent to the construction plan area shall be repaired, removed or replaced to the satisfaction of the County at the expense of Property Owner. 4.0 Release of Liability: Prior to the acceptance by the County and expiration of the applicable warranty period, Property Owner 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 7 M:\PLANNING — DEVELOPMENT REVIEWtUSR-Use by Special Review \USR-1767 Konig GravelUmprovemans Agreement\Konig Pit 1111111 11111 NI 111111 III ►III 11111111 III 11111 1111 ►III 3759198 03/30/2011 02:50? Weld County, CO o nf 10 R 0.00 0 0.00 Steve Moreno Clerk & Recorder construction of all off -site 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. Following the expiration of the warranty period, Property Owner shall be released from the foregoing requirement. 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 applicable laws and regulations of the State of Colorado governing occupational safety and health. 5.0 Warranty of On -Site and Off -Site Improvements: Property Owner shall warranty all improvements to public rights -of -way, (if any), and all privately created and maintained roads or rights -of -way, or easements, and all on -site improvements for a period of two (2) years. The warranty period shall begin only after the County's execution of a written acceptance of the improvement(s). 6.0 Acceptance of Improvements by the County: Upon compliance with the following procedures by the Property Owner, the improvements shall be deemed accepted by the County. 6.1 If requested by the Property Owner and approved by the County, portions of the improvements may be placed in service when completed according to the schedule shown on Exhibit "B," but such use and operation shall not, alone, constitute an acceptance of said portions of the improvements. 6.2 County may, at its option, issue building permits for construction for which the improvements detailed herein have been started but not completed according to the schedule shown on Exhibit "B," and may continue to issue building permits so long as the progress of work on the USR improvements in that phase of the USR is satisfactory to the County, and all terms of this Agreement have been faithfully kept by Applicant. 6.3a Upon completion of the construction of the required off -site improvements, and the filing of a Statement of Substantial Compliance by Property Owner's engineer, the Property Owner may, as set forth in Paragraph A_9.0, request in writing that the County inspect the improvements and recommend to the Board of County Commissioners that the improvements be accepted and further that the two-year warranty period begin. . Upon completion of the two-year warranty period, the County Engineer shall, upon request by the applicant, inspect the subject improvements, and notify the Property Owner of any deficiencies. If any deficiencies are discovered, the Property Owner shall correct the deficiencies. The County Engineer shall reinspect the improvements after notification from the Property Owner that said deficiencies have been corrected. If the County Engineer finds that the improvements are 8 M \PLANNING —DEVELOPMENT REVIEW\USR-Use by Special Review\USR-1767 Konig GravelUmprovemertts AyrwnentVumig Pit 11711t9VIII IIIIII IIIIII III IIII IIIIIIII III IIIIII it It1759198 10 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder constructed according to County standards, he or she shall recommend full acceptance. Upon a receipt of a positive unqualified written recommendation from the County Engineer for acceptance of improvements within the USR, the Board of County Commissioners shall fully accept said improvements. 6.3b Upon completion of the construction of the required on -site improvements, and the filing of a Statement of Substantial Compliance, when necessary, by Property Owner's engineer, the Property Owner may, as set forth in Paragraph D.4.0, request in writing that the County inspect the improvements and recommend to the Board of County Commissioners that the improvements be accepted and further that the two-year warranty period begin. Upon completion of the two-year warranty period, the County Engineer and/or the Weld County Department of Planning Services shall, upon request of the Property Owner, inspect the subject improvements, and notify the Property Owner of any deficiencies. If any deficiencies are discovered, the Property Owner shall correct the deficiencies. The County Engineer and /or the Department of Planning Services shall reinspect the improvements after notification from the Property Owner that said deficiencies have been corrected. If the County Engineer and/or Department of Planning Services find that the improvements are constructed according to County standards, he or she shall recommend full acceptance. Upon a receipt of a positive unqualified written recommendation from the County Engineer and/or the Department of Planning Services for acceptance of improvements within the USR, the Board of County Commissioners shall fully accept said improvements. 7.0 General Requirements for Collateral: 7.1 County requires Property Owner to provide collateral to guaranty all of Property Owner's obligations under this Agreement: (I) Proiect Collateral for completion of all improvements described in this Agreement shall be provided separately for on -site improvements and off -site improvements; (2) Warranty Collateral required for all improvements during the warranty phase; and (3) Road Maintenance Collateral to be kept in place for the life of the permit. 7.2 Project Collateral (If Applicable) submitted to Weld County to guarantee completion of the improvements indentified on the accepted Construction Plans and USR-1767 Plat Map and further enumerated in the costs listed in Exhibit "A," must be equivalent to One Hundred Percent (100%) of the value of the improvements as shown in this Agreement. Collateral for Off - site improvements that extend partially off -site as mentioned in Section A., 1.0 (if any) or D.2.0 of this Agreement that include only improvements involving turning radii and approaches can be included as part of the On - site collateral amount, if clearly delineated on accepted Construction Plans and differentiated as "Entrance Improvements" on Exhibit "A" On -Site 9 M.\PLANNING — DEVELOPMENT REVIEWU SR -Use by Special Revte v\USR-1767 Korug GravelLImpmvements Ageement\Konig Pit 1111111 11111 111111 111111 III MI1111111 III IIIIII III IIII 3759198 03/30/2011 02:50P Weld County, CO 11 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Improvements of this Agreement. Such collateral shall be provided to the County on the dates set forth herein and shall be held in total by County as provided in Paragraph E. 6.3 below until all improvements have been completed. This collateral must be submitted to County upon the submission of the Property Owner's application of a grading and/or right - of way permit. 7.3 Warranty Collateral (If Applicable) for all on -site and off -site improvements shall be submitted to County and shall be held in total by the County for two (2) years following its written acceptance of the improvement(s). 7.4 In the event Property Owner fails to adequately complete and/or repair improvements associated with this Improvements Agreement, County will access, in its sole discretion, Project or Warranty Collateral to the extent necessary to complete said improvements or repairs in order to preserve public interest. 7.5 Road Maintenance Collateral shall be submitted to County at the time the Final Plat is recorded. Road Maintenance Collateral is held for use on roads associated with the designated haul route. The amount of the collateral required for road maintenance shall be established by the Weld County Department of Public Works based upon its determination of the anticipated expenses, and its determination of the amount shall be final. Road Maintenance Collateral shall be held by County as long as this Agreement is in effect and returned to the Property Owner upon vacation of associated land use agreement or permit. The Road Maintenance Collateral will only be accessed by the County, if upon notification to Property Owner of required roadway repairs; Property Owner fails to perform said repairs. If any of this collateral shall be collected by County, Property Owner shall replace the amount, plus interest, within six (6) months. 7.6 Road Maintenance Collateral shall be adjusted annually, during the month of January, for inflation. The first adjustment shall be made no less than twelve months after, and in no event later than twenty four months from, the execution of this Agreement. The adjustment shall be equal to the inflation rate based on the "Colorado Construction Cost Index Report" as published by the Colorado Department of Transportation. 7.7 Acceptable collateral shall be submitted on or before the time Property Owner submits an application for the grading permit or Right -Of -Way access permit. No grading or building permits shall be issued for any site related activities, on the property and no Site Preparation shall commence until cost estimates for the improvements are updated and collateral is provided in the amount of One -Hundred percent (100%) of the value of the improvements to be completed, and the development plans are revised 10 M:\PLANNING - DEVELOPMENT REVIEW\USR-Use by Special Review \USR-1767 Konig GravelUmprovements Agremtent'Konig Pit 1111111 IIIII 111111 LIMN IIII 11111111 III 111111 III IIII 3759198 03/30/2011 02:50P Weld County, CO 12 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder to comply with all current County standards, policies and regulations. The improvements shall be completed within the time schedule set forth in "Exhibit B", which is attached hereto and made a part of this Agreement. If improvements are not completed within these time frames, the County, at its discretion, may make demand on all or a portion of the site collateral and take steps to see that the improvements are made. "Site Preparation" shall mean earthwork grading or performance of work, or construction or installation of improvements related to Property Owner's planned operations pursuant to USR-1767 that require a grading or building permit from the County pursuant to the Weld County Code. 7.8 Collateral may be in the form of an irrevocable letter of credit (LOC) in an amount equivalent to (100%) of the total value of the improvements set forth in the Improvements Agreement and the Plat; the LOC shall be subject to the requirements of Weld County Code Section 2-3-30 B. The Property Owner shall utilize only a County approved form when obtaining an LOC: (IRRVEVOCABLE STANDBY LETTER OF CREDIT FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO). A copy of said form shall he provided to Applicant upon request. 7.9 Collateral may be in the form of 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 set forth in the Improvements Agreement and the Plat. The surety bond shall conform to and be subject to the requirements of Weld County Code Section 2-3-30 B.4. The Property Owner shall utilize only a County approved form when obtaining a surety bond: (PERFORMANCE BOND FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO). A copy of said form shall be provided to Applicant upon request. 7.10 Collateral may be in the form of a cash deposit made with the Board in an amount equivalent to One Hundred Percent (100%) of the value of the improvements set forth in the Improvements Agreement. In the event the applicant is required to warranty the improvements, the applicant shall replace the original deposit with a deposit in the amount of fifteen percent (15%) of the original amount and those funds shall remain available to the County until released by the County at the end of the warranty period. 7.11 The Board of County Commissioners reserves the right to reject collateral which is deemed inappropriate or insufficient, which may be either as collateral in the form of a letter of credit offered by a banking institution which does not have at least a "three star" rating given by Bauer Financial, or as collateral in the form of a performance bond offered by an insurance company which does not have at least a B+ rating given by A.M. Best. n M:\PLANNING - DEVELOPMENT REV[EWIUSR-Use by Special Review\USR-1767 Konig G`aveIVmpmvema is Agmancnt\Konig Pit 1111111 11111 111111 111111 III IIII 11111111 III 111111 III IIII 3759198 03/30/2011 02:50P Weld County, CO 13 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder The Board further reserves the right to require Property Owner to obtain replacement collateral if the rating of the financial institution providing said collateral drops below the levels stated above. Replacement collateral shall be submitted by Property Owner within sixty (60) days of the Board's notice to Property Owner that the rating has fallen and that the collateral must be replaced. Property Owner may not terminate existing collateral until replacement collateral has been secured. 8.0 Request for Release of Collateral: Collateral shall be released in accordance with the provisions of Weld County Code Section 2-3-30.C. Prior to release of collateral for the entire project or for a portion of the project by Weld County, the Property Owner must present a Statement of Substantial Compliance from an Engineer registered in the State of Colorado. Engineering Statements of Substantial Compliance are only required following notification by the County. The Statement of Substantial Compliance shall state that the project or a portion of the project has been completed in substantial compliance with approved plans and specifications documenting the following: 8.1 The Property Owner's 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 accepted by Weld County. 8.2 For the improvements to public rights -of -way or easements, 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. 8.3 "As -built' plans shall be submitted at the time the letter requesting release of collateral is submitted. The Property Owner's 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 written acceptance from the County Engineer. 8.4 The Statements of Substantial Compliance must be accompanied, if applicable, by a letter of acceptance of maintenance and responsibility by the appropriate utility company, special district or town for any utilities. 8.5 A letter must be submitted from the appropriate Fire Authority, if applicable, 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. 8.6 The requirements in the paragraphs 8.0 through 8.5 shall be noted in the final Construction Plans. 8.7 Following the submittal of the Statement of Substantial Compliance and written recommendation of acceptance of the improvements by the Weld County Department of Planning Services and the Weld County 12 M:V'LANNING — DEVELOPMENT REVIEW \USR-Use by Special Review\USR- I767 Konig Gravel \Improvements Agreement \Kemp Pit (Ii,o I7c7, ._ 111111111111111111HIIIIIIIlil11111111III111111III1111 3759198 03/30/2011 02:50P Weld County, CO 14 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Department of Public Works, the Property Owner (if Property Owner has supplied any or all of the collateral) 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. 8.8 For all off -site and on -site improvements (including improvements to public rights -of -way or easements), the written request for release of "Project 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. However, collateral for improvements fully accepted for maintenance by a responsible governmental entity, special district or utility company will be fully refunded to Property Owner. 8.9 Following the written request for release of the "Warranty Collateral", the Weld County Department of Planning Services and the Weld County Department of Public Works County shall inspect the on -site improvements. If the improvements need mitigation or further repairs are required, said work must be completed prior to the conclusion of the Warranty period. The "Warranty Collateral" shall be released to the Property Owner following the expiration of the warranty period upon final written acceptance by the Board of County Commissioners. 8.10 "Road Maintenance Collateral" for roads associated with the designated haul route shall be maintained as long as the USR is active. It shall be adjusted annually by the inflation rate based on the "Colorado Construction Cost Index Report" as published by the Colorado Department of Transportation. Road Maintenance Collateral shall be adjusted annually, during the month of January, for inflation. The First adjustment shall be made no less than twelve months after, and in no event later than twenty four months from the execution of this Agreement. Property Owner shall provide the required Road Maintenance Collateral to Weld County on or before April 15, 2011. 9.0 Successors and Assigns: This Agreement may not be delegated, transferred or assigned in whole or in part by Property Owner without the express written consent of County and the written agreement of the party to whom the obligations under this Agreement are assigned. Consent to a delegation or an assignment will not be unreasonably withheld by County. In the event of sale of the Property, County may agree to release Property Owner in whole or in part from obligations under this Agreement. County's rights and obligations under this Agreement shall automatically be delegated, transferred or assigned to any municipality which, by and through annexation proceedings, has assumed jurisdiction and maintenance responsibility over the roads affected by this Agreement. All of the terms and conditions set forth in this Agreement shall be binding upon the heirs, executors, personal representatives, successors and assigns of Property Owner, and upon recording by the County, shall be deemed a covenant running with the land herein described. 13 MAPLANNING —DEVELOPMENT REVIEW\USR-Use by Special Review \USR-1767 Konig Gravel\Improvements AgreementUConig Pit 1111111 11111 111111 111111 III 1111 11111111 111 111111 111 IIII 3759198 03/30/2011 02:50P Weld County, CO 15 of 19 R 0.00 0 0.00 Steve Moreno Clerk & Recorder 10.0 County Engineer: All references in this Agreement to "County Engineer" shall refer to the any individual or individuals appointed by the County Engineer to act on his/her behalf. 11.0 Violation of Terms of Agreement: If in County's opinion, Property Owner has violated any of the terms of this Agreement, County shall notify Property Owner of its belief that the Agreement has been violated and shall state with specificity the facts and circumstances which County believes constitute the violation. Property Owner shall have fifteen (15) days within which to either cure the violation or demonstrate compliance. lf, after fifteen (15) days have elapsed, County believes in good faith that there has been a violation of the teens of this Agreement, County shall initiate proceedings to revoke the permit which is the subject matter of this Agreement. Violations of the terms of this Agreement include violations of the agreements contemplated by Paragraphs C. 4.0 & C. 5.0 of this Agreement, and a failure to enter into such Agreements in a timely manner. F. Termination of Agreement: 1.0 Termination Event: This Agreement shall terminate upon the earliest of the following events: 1.1 Cessation of all Permit Related Activities: Termination of this Agreement shall occur upon Operator's complete cessation of all activities permitted under USR- 1767 or any amendments thereto. A partial cessation of activities shall not constitute a Termination of this Agreement, nor shall County's issuance of a partial release constitute a Termination. Operator shall provide written notice to Property Owner and County of said cessation of activity, which County shall then verify. If written notice is not provided to County, Termination of this Agreement shall not occur until County has determined that the Use by Special Review is inactive, which shall be three (3) years following County's observance of the cessation of activities, as provided in Sec. 23-2-200.E of the Weld County Code. 1.2 Execution of Replacement "Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 by New Property Owner: This Agreement shall terminate following County's execution of a new Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 with a new Property Owner who has purchased the Property, and intends to make use of the rights and privileges available to it through the then existing USR. 1.3 Execution of Replacement "Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 by New Operator: This Agreement shall terminate following County's execution of a new Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 with a new operator who has assumed the operation of the business on the Property which business activities are permitted by the then existing USR. 2.0 Termination Procedures: 14 M.U'LANNING - DEVELOPMENT REV IEWAUSR-Use by Special Review \USR-1767 Konig Gravelllmptovements Agreement\Konig Pit 1111111 111 111111 111111 III 1111 11111111 111 111111 111 IIII 3759198 03/30/2011 02:50? Weld County, CO 16 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder 2A Termination Procedures Following Cessation of Permit Related Activities: Following the events outlined in paragraph I.I above, County shall conduct its annual road inspection. Said road inspection shall be conducted on or before May 31 following the announcement or determination of the cessation of permit related activities on the Property. The results of the inspection shall be delivered in writing to the Property Owner and Operator. If the County determines that pursuant to the terms of this Agreement, the Operator must complete any of the improvements and/or road maintenance obligations outlined herein, said obligations must be completed within a reasonable period of time thereafter, but in no event later than six (6) months following the determination that permit related activities have ceased. Collateral shall not be released by County until such time as county determines that all of the improvements have been completed. 2.2 Termination Procedures Pursuant to Transfer of Ownership of the Property or Transfer of Operations: If the Property Owner or Operator desires to assign its rights and obligations under this Agreement to a successor Property Owner or Operator, the Property Owner or Operator shall, prior to the transfer, provide County with a written Notice to Transfer, stating the date of transfer, and identifying the party to. whom the transfer shall be made. Following receipt of the Notice to Transfer, County shall inspect the improvements required under the terms of this Agreement to determine whether the improvements have been completed. If the improvements have not been completed, the Property Owner and/or Operator shall either complete the improvements or post collateral equal to the cost of the completion of the improvements, if such collateral is not in place. If collateral is available at the time, County shall hold a hearing to determine whether the collateral should be called upon to pay County or a contractor of the County to complete the improvements. County shall also inspect the road(s) which are covered by this Agreement to assess the current condition of the road(s) and determine whether Operator and/or Property Owner would be required to perform road maintenance within the following twelve months had the Agreement not been assigned. If road maintenance is, in the opinion of County, required, Property Owner and/or Operator shall be required to either perform the road maintenance or to post collateral equal to the cost of said maintenance. County shall not execute a new Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 with a successor Property Owner and/or Operator prior to the performance of the road maintenance or the posting of collateral for said maintenance, unless the new Property Owner and/or Operator posts collateral for the required maintenance. 3.0 Consequence of Termination by Cessation of Permit Related Activities: Following County's confirmation that Property Owner and/or Operator has/have ceased all permit related activities and has/have completed previously uncompleted Improvements and or completed any required road maintenance, County shall release Property Owner and/or Operator from all further obligations under this Agreement. No Further permit related activities shall be permitted unless and until approved by County following execution of a new Improvements Agreement According to Policy Regarding Collateral for Improvements — USR-1767 with a Property Owner and Operator. 4.0 Consequence of Termination by Execution of Replacement Improvements Agreement: Following County's execution of an Improvements Agreement According to 15 M:U'LANNING - DEVELOPMENT REVIEW tlSR-Use by Special Review\USR-1767 Konig (imvelUmprovements Agreement\Konig Pit MID 11111 lilt 111111 III III 11111111 111 OHIO IIII 3759198 03/30/2011 02:50P Weld County, CO 17 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder Policy Regarding Collateral for Improvements — USR-1767 with a successor Property Owner and/or Operator, the predecessor Property Owner and/or Operator shall have no further rights and/or obligations under this Agreement or in USR-1767. 5.0 Consequence of Termination Pursuant to Paragraph E.I1.0: In the event that activities related to USR-1767 cease as a result of the revocation of the permit as described in Paragraph E.I 1.0 of this Agreement, neither Property Owner nor Operator will be released from any of the obligations imposed by the terms of this Agreement only after Property Owner's successful completion of all improvements required under this Agreement or after County accesses the collateral to the extent necessary to complete improvements County, in its sole discretion, deems necessary to preserve public interests. G. Governmental Immunity: No term or condition of this agreement shall be construed or interpreted as a waiver, express or implied, of any of the immunities, rights, benefits, protections or other provisions, of the Colorado Governmental Immunity Act §§24-10-101 et seq., as applicable now or hereafter amended. H. Enforcement: If, in the County's opinion, Property Owner has violated any of the terms of this Agreement, County shall notify property Owner of its belief that the Agreement has been violated and shall state with specificity the facts and circumstances which the County believes constitute violation. Property Owner shall have thirty (30) days within which to either cure the violation or demonstrate compliance. If, after thirty (30) days have elapsed, County believes in good faith that a violation of the terms and conditions of this Agreement still exists (despite cure), County may enforce by any legal means, including, but not limited to, legal action for equitable or monetary relief filed in the Weld District Court, execution upon submitted collateral (if applicable), and/or administrative action of the County to suspend or revoke the underlying land use permit or approval pursuant to the procedural provisions of Section 2-4-40 of the Weld County Code. Violations of the terms and conditions of this Agreement include, but are not limited to, violations of the agreements Property Owner must enter into as required by this Agreement, and/or failure to enter into such agreements in a timely manner. 1. 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 contained in this Agreement shall give or allow any claim or right of action whatsoever by any other person or entity not included in this Agreement. It is the express intention of the undersigned parties that any person or entity, other than the undersigned parties, receiving services or benefits under this Agreement shall be an incidental beneficiary only. J. Authority to Sign: Each person signing this Agreement represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this Agreement. Each party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such party's obligations hereunder have been duly authorized and that the Agreement is a valid and legal agreement binding on such party and enforceable in accordance with its terms. If requested by the County, Property Owner shall provide the County with proof of Property Owner's authority to enter into this Agreement within five (5) days of receiving such request. 16 MAPLANNING — DEVFIDPMENT REVIEW\USR-Use by Special Review\USR-1767 Konig GravelUmprovemeris Agreement\Konig Pit IIIIII VIII IIIIII IIIIII III III IIIIIIII III HI III IIII 3759198 03/30/2011 02:50P Weld County, CO 18 of 19 R 0.00 D 0.00 Steve Moreno Clerk & Recorder IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written. PROPERTY,..„, 1 OWNER: IN -040 p PROPERTY OWNER: Subscribed and sworn to before me this 8 day of i r`cbl— BOARD OF COUNTY COMMISSIONERS WELD COUNTY, COLORADO ATTEST: arbara Kirkmeyer, (ghair Weld County Clerk to the Board BY: Deputy Clerk to . e Board APPROVED AS TO FORM: IIIIIIIIIIIIIIIIIIIIIIIIII'IIIIII er 37591 8 030120111 U 00 Steveeld C00001, CO Moreno Clerk & Re 19 of 19 R00 17 M:\PLANNING — DEVELOPMENT REV IEW\USR-Use by Special Review \USR-1767 Konig Gravel\Improvements Agreement\Konig Pit (USR-1767) Improvements Agreement (3-4-I 1)_docx MEMORANDUM TO: Clerk to the Board DATE: 3/7/2011 FROM: Richard Hastings and Heidi Hansen, Public Works Department SUBJECT: BOCC Agenda Item - Approve Improvements Agreement and Accept Collateral For: Konig Borrow Pit — (USR-1767) Request for Approval of Improvements Agreement: The Department of Public Works and the Department of Planning Services received a request from the applicant's representative, Chris Rundall/Baseline Corp, requesting that the Board of County Commissioners consider approving the Improvements Agreement for the gravel pit facility (USR-1767), located at WCR's 81 and 120. Weld County Public Works Department reviewed the above -mentioned signed original document and observed the following: • All Weld County related items, of the "Improvements Agreement According To Policy Regarding Collateral For Improvements", are found to be acceptable. Request for Acceptance of Collateral: The Department of Public Works and the Department of Planning Services received a request from the applicant's representative, Chris Rundall/Baseline Corp, requesting that the Board of County Commissioners consider accepting collateral in the form of a Letter of Credit in the amount of $1,500.00, for the above -mentioned Improvements Agreement. Recommendation: The Department's of Public Works and Planning Services are recommending approval of the Improvements Agreement According To Policy Regarding Collateral For Improvements and the acceptance of collateral, in the amount of $1,500.00 for Konig Borrow Pit— (USR-1767). pc: Don Carroll, Engineering Administrator Kim Ogle, Planning Services C:\Documents and Settings \dbechler\Local Settings\Temporary Internet Files \Conten[.Outlook\HDO4AU84\Approve IA Accept Collateral (USR- 1767) - Konig Borrow Pit- MEMO.docx IRREVOCABLE STANDBY LETTER OF CREDIT FOR BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO March 8, 2011 Beneficiary: BOARD OF COUNTY COMMISSIONERS OF WELD COUNTY, COLORADO 915 Tenth Street Greeley, Colorado 80631 Attn: Clerk to the Board Konig Ag Co. 37231 Highway 14 Briggsdale, CO 80611 Ladies and Gentlemen: Effective immediately, at the request of and on behalf of Konig Ag Co, we, New West Bank, hereby issue this Letter of Credit #2033702 for On thousand five hundred dollars ($1,500.00) in favor of the Board of County Commissioners of Weld County, Colorado, (hereinafter "Beneficiary"). This Letter of Credit is issued to permit Konig Ag Co. to meet the requirements of the "Improvements Agreement According To Policy Regarding Collateral For Improvements" Konig Borrow Pit (USR-1767) dated 3/9/2011, (hereinafter "Improvements Agreement"). This amount may be drawn on at our office located at 3459 W. 20th Street, Suite 114, Greeley, CO 80634. We hereby undertake to honor your sight draft drawn on us bearing upon its face the clause: "Drawn under the Bank of New West Bank Letter of Credit Number 2033702, dated March 8, 2011", when accompanied by the following: 1. The original of this Letter of Credit and any subsequent amendments, if any; and 2. Original of Beneficiary's statement purportedly manually signed by a member of the Board of County Commissioners of Weld County, Colorado stating one or more of the following: a. "The Board of County Commissioners of Weld County, Colorado hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($ ) under the Bank of New West Bank, Letter of Credit Number 2033702 dated March 8, 2011 because Konig Ag Co. has defaulted on its obligations under the "Improvements Agreement According To Policy Regarding Collateral For Improvements" Konig Borrow Pit (USR-1767) dated 3/9/2011, by (State Nature of Default). b. "The Board of County Commissioners of Weld County, Colorado hereby certifies that it is entitled to draw US Dollars (Written Amount of Withdrawal) ($ ) under Bank of New West Bank, Letter of Credit Number 2033702 dated March 8, 2011 because Konig Ag Co. has not, to the satisfaction of the Board of County Commissioners of Weld County, Colorado, within sixty (60) days of the expiration date of this Letter of Credit replaced or renewed this Letter of Credit." The above statements are acceptable if presented in the form of a Resolution formally adopted by the Board of County Commissioners of Weld County, Colorado. Additionally, a copy of one or both of the above statements may be submitted by facsimile transmission or by electronic mail, if said transmission source can be verified by us. 3. It is a condition of this Irrevocable Letter of Credit that it be considered automatically extended without amendment for additional periods of one year from the present or any future expiration date unless we notify you, the Beneficiary, in writing, not less than ninety (90) days before such date that we elect not to extend this Letter of Credit for such additional term. This notice will be set to the address herein sent by certified mail, return receipt requested. Upon your receipt of said notice, you may draw on us at sight for the balance remaining under this Letter of Credit within the then applicable expiration date. 4. Partial drawings under this Letter of Credit are permitted. 5. For purposes of the Letter of Credit, Konig Ag Co. shall be deemed in default if one or more of its obligations under the "Improvements Agreement According To Policy Regarding Collateral For Improvements" Konig Borrow Pit (USR-1767) dated 3/9/2011 is/are not met within the time frame(s) set forth in said Improvements Agreement. 6. This Credit shall be transferable, as directed by an authorized representative of the Board of County Commissioners of Weld County, Colorado, in compliance with Article 48 of UPC 500. We hereby promise you that a draft drawn under and in compliance with the terms and conditions of this Letter of Credit will be duly honored by us if presented at this office or by registered mail on or before the current expiration date, currently March 8, 2012, or any future applicable expiration date as described herein. Draft presentation before 10:00 a.m. Mountain Standard Time on any Business Day shall be honored before 5:00 p.m. on the same Business Day by wire transfer in immediately available funds to any account designated by an authorized representative of Board of County Commissioners of Weld County, Colorado, (or any other reasonable means specified by said authorized representative). Draft presentation between 10:00 a.m. and 5:00 p.m. Mountain Standard Time on any Business Day shall be honored before 5:00 p.m. on the following Business Day by wire transfer in immediately available funds to any account designated by an authorized representative of Board of County Commissioners of Weld County, Colorado, (or any other reasonable means specified by said authorized representative). As used in this Credit, the term "Business Day" shall mean a day other than Saturday or Sunday or any day in which Banking Institutions in the State of Colorado are authorized or required by law to close. This Letter of Credit sets forth in full the terms of our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by reference to any document, instrument or agreement referred to herein or to which this Letter of Credit relates. Except to the extent terms hereof are inconsistent with its provisions, in which case this Letter of Credit shall govern, this Letter of Credit is subject to the Uniform Customs and Practice for Documentary Credits (1993 Revision), the International Chamber of Commerce Publication No. 500. 4CeePaul R. Knapp Vice President New West Bank 3459 W. 20th Street, Suite 114 Greeley, CO 80634 Phone: 970.378.1800 Fax: 970.378.1801 NEW WEST RANK Paul R. Knapp Vice ('resident 3459 West 20th Street Suite 114 Greeley, Colorado 80634 Tel 970-378-1800 Fax 970-378-1801 Cell 970-397-4900 www.newwestbank.biz Hello