HomeMy WebLinkAbout20141251.tiff RESOLUTION
RE: APPROVE PARTIAL CANCELLATION AND RELEASE OF COLLATERAL FOR USE
BY SPECIAL REVIEW PERMIT #1787 - PAWNEE WATER MANAGEMENT/
HALLIBURTON ENERGY SERVICES, INC.
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, by Resolution dated August 24, 2011, the Board approved the application of
Dietzler Water Resources Corporation, 4970 Varsity Drive, Lisle, Illinois 60532, for an Oil and Gas
Support and Service Facility (water supply and storage) on the following described real estate,
to-wit:
N1/2 NW1/4 of Section 13, Township 10 North,
Range 61 West of the 6th P.M., Weld County,
Colorado, and
WHEREAS, on April 23, 2012, the Board of County Commissioners of Weld County,
Colorado, approved 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 Pawnee Water Management / Halliburton Energy
Services, Inc., with terms and conditions being as stated in said agreement, and accepted
Performance Bond #K08358989 from Westchester Fire Insurance Company, 436 Walnut Street,
Philadelphia, Pennsylvania 19106, in the amount of$270,283.00, and
WHEREAS, staff from the Weld County Departments of Public Works and Planning
Services have conducted a visual inspection and recommend partial release of said collateral, in
the amount of$229,740.55.
WHEREAS, the Board has been presented with replacement collateral in the form of a
Bond Rider to Performance Bond#K08358989, from Westchester Fire Insurance Company in the
amount of$40,542.45, to serve as warranty collateral for a period of two years.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that partial release of Performance Bond #K08358989, from Westchester Fire
Insurance Company, 436 Walnut Street, Philadelphia, Pennsylvania 19106, in the amount of
$229,740.55, be, and hereby is, accepted, and replacement collateral in the form of a Bond Rider
to Performance Bond #K08358989, from Westchester Fire Insurance Company in the amount of
40 542.45 for warranty collateral be accepted.
$ P
CC: ?W(R+L, AFLLK0)
4015626 Pages: 1 of 2
05/13/2014 10:56 AM R Fee:$0.00
Steve Moreno, Clerk and Recorder, Weld County, CO
MIEN Ail li4�Yl�'l'diI'fhiri I�,��'htF'��;Yi,h 111111
2014-1251
PL2125
CANCEL COLLATERAL - PAWNEE WATER MANAGEMENT/ HALLIBURTON ENERGY
SERVICES, INC
PAGE 2
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 21st day of April, A.D., 2014.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: th J s ,,z&o;
rry Douglas Rademach r, Chair
Weld County Clerk to the Boar \:‘, '�a /
wY ' lr IL Lu{ l i/p'df I.c�
�J l6l (`��`-' �� (jrbara Kirkmey r, Pro-Tem/
BY: t_.IQ0.Pn 9 & kji'
I` � '� real
Dept* Clerk to the Boa iM ,�
Ii � an P. Conway
AP E FORM:
Mike Freema
ounty Attorney
C
William F. Garcia
/Date of signature: 5/7 /14
4015626 Pages: 2 of 2
05/13/2014 10:56 PM R Fee:$0.00
Steve Moreno. Clerk and Recorder, Weld County, Co
Sill k1�1�;fth'Ii+INtiIf}'Ei'�IL4i1';�[N+h 0 III III 2014-1251
PL2125
MEMORANDUM
TO: Clerk to the Board
,� igb
DATE: 4/15/2014
,� FROM: Richard Hastings, Public Works Department
V] G f r \ SUBJECT: BOCC Agenda Item: Partial Release of Collateral
t Pawnee Water Management/Halliburton Energy
Services - (USR-1787)
Request for Partial Release of Collateral:
The Department of Public Works received a request from the applicant, David
Kasnoff/Halliburton Energy Services, requesting an inspection of the property in order to obtain
the partial release of collateral, for the Oil & Gas Support and Service Facility for(USR-1787),
located at CR's 95 & 118, southeast of the town of Grover.
Weld County Public Works Department performed a site inspection, at the above mentioned site,
and observed the following:
• All Public Works related items on Exhibit A, of the Improvements Agreement According
To Policy Regarding Collateral For Improvements Document#2012-1064, have been
completed and are found to be acceptable.
Weld County Collateral List:
Pawnee Water Management/Halliburton Energy Services, Inc.
(#2012-1064 -PL2125, USR#1787) 04/23/2012 Improvements
Agreement - Performance Bond#K08358989 from Westchester
Fire Insurance Company
Noncancellable--Renews Annually Automatically $270,283.00
Recommendation:
The Departments of Public Works and Planning Services are recommending partial release of
collateral, as shown above from the Weld County Collateral List, in the amount of$229,740.55
Weld County will retain a balance of$40,542.45 to serve as Warranty Collateral for a period of
two years from the date the Board of County Commissioners approves this request. Halliburton
Energy Services has submitted replacement/warranty collateral in the form of a Bond Rider to the
original Bond (#K08358989) from Westchester Fire Insurance Company, reducing the original
amount of$270,283.00 to $40,542.45
2014-1251
pc: Elizabeth Relford,Weld County Public Works
Kim Ogle,Weld County Planning Services
M:\PLANNING—DEVELOPMENT REVIEW\—Pre-Accela Referrals(Old Numbering)\USR-Use by Special Review\USR-1787 Dietzler Water
Resources\Improvements Agreement\Partial Collateral Release-Pawnee Water Mang-Halliburton(USR-1787)-MEMO.docx
From: Richard Hastings
To: "David Kasnoff"
Cc: Wayne Brookshire-Real Estate Services.;Woody Kemo(Carrollton);.Ed Groff;Todd Bessler;Elizabeth Relford:
Donald Carroll;Tim Taft P;Kim Dale
Subject: RE: USR#1787-Halliburton Energy Services
Date: Wednesday,March 05,2014 4:08:00 PM
Attachments: 2012-1064-USR1787 Improvements Agreement-Pawnee Water Management.odf
Dave,
As per your response below, following our phone conversation today,you have the topics we
discussed covered for the initial partial release of collateral. Following, please find a few additional
comments/clarifications,further described in the attached"IMPROVEMENTS AGREEMENT
ACCORDING TO POLICY REGARDING COLLATERAL FOR IMPROVEMENTS" (Doc.#2012-1064),as
detailed in Section E.-8.0, pages 14-15.
In addition to those items you listed below, please submit:
1. A letter/email from the participants (Halliburton Energy Services, Inc.), requesting a partial
release of collateral and indicating the dollar amount to be released. Generally this amount is
equal to eighty-five (85%) of the project collateral that was originally submitted. In this case,85%
of the original project collateral of$270,283.00 would come to$229,740.55 to be released.
2. "Warranty Collateral" in the amount of fifteen percent (15%) of the value of the improvements
as shown in the agreement. In this case,15%of the original project collateral of$270,283.00 would
come to$40,542.45 to be submitted. Collateral requirements can be found in Section E.-7.0, pages
10-14 of Doc.#2012-1064. As we discussed on the phone, perhaps Halliburton would prefer to
procure a bond reduction rider for: Performance Bond#K08358989 from Westchester
Fire Insurance Company.
Upon receipt of the above-mentioned documents, and those you mentioned below, the County
will review the documents. Following acceptance of the documents,the Weld County Clerk to the
Board will be contacted and the collateral release request placed on the BOCC (Board of County
Commissioners) Hearing Agenda. I will then present the request to the BOCC for their approval.
Please feel free to contact me if you have any questions or concerns regarding this matter and let
me know if you require any further information.
Thanks,
Rich
Richard Hastings
Compliance Analyst&Construction Inspector
Weld County Public Works
1111 H Street, P.O. Box 758
Greeley, CO 80632
(970)304-6496 Ext.3727
Confidentiality Notice:This electronic transmission and any attached documents or other writings
are intended only for the person or entity to which it is addressed and may contain information
that is privileged,confidential or otherwise protected from disclosure. If you have received this
communication in error,please immediately notify sender by return e-mail and destroy the
communication.Any disclosure, copying, distribution or the taking of any action concerning the
contents of this communication or any attachments by anyone other than the named recipient is
strictly prohibited.
From: David Kasnoff[mailto:David.Kasnoff@halliburton.com]�
Sent: Wednesday, March 05, 2014 11:00 AM
To: Richard Hastings
Cc: Wayne Brookshire - Real Estate Services; Woody Kemp (Carrollton); Ed Groff; Todd Bessler
Subject: USR#1787 - Halliburton Energy Services
Importance: High
Rich—First off thank you very much for the time and explaining the bond release process this
morning. I've jotted down the notes from our call below and please let me know if this is
consistent with our discussion. As indicated I'll work on tracking down items 1 & 2 listed below.
1. Halliburton to provide a stamped set of final as built drawings
2. Halliburton to provide a Letter of Substantial Compliance from the Engineer of Record
3. Submit this information to you via email(do you need original hard copies?)You can email
a copy of the documents to initiate the process, but I will need the signed originals for final
acceptance by the Board of County Commissioners(BOCC).
4. Public Works will initiate initial bond release and get in front of County Commissioners for
signature
5. If initial release is granted it will reduce bond to 15%of original and start two(2)year timer
for warranty period
6. At the end of two(2)year period final release can be requested
Thanks again Rich and I'll try and round this information ASAP...
Dave Kasnoff
Halliburton Energy Services
Regional Real Estate Manager
David.kasnoff(Shalliburton.cQln
C:970.623.9359
O:970.523.3615
VOIP:88 2713615
n*AIADocument G704 - 2000
Certificate of Substantial Completion
PROJECT:(Name and address) PROJECT NUMBER: 21373.007
OWN
CO_Grover_Pawnee Phase_1ER El
CONTRACT FOR: Construction of Phase 1
57748 County Road 95,Grover,CO ARCHITECT❑
CONTRACT DATE: March 5th,2012 CONTRACTOR
El
TO OWNER:(Name and address) TO CONTRACTOR:(Name and address)
1.lalliburton Energy Services,Inc Patrick Engineering Inc. FIELD El
8432 South I-35 West 1400 West 122nd Ave Suite 102 OTHER El
Alvarado,TX 76009 Westminster,CO 80234
Project or portion of the Project designated for partial occupancy or use shall include:
Completed Water Load-Out Facility as per contract documents incorporated hem by reference.
The Work performed under this Contract has been reviewed and found,to the Architect's best knowledge,information and
belief,to be substantially complete.Substantial Completion is the stage in the progress of the Work when the Work or
designated portion is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize
the Work for its intended use.The date of Substantial Completion of the Project or portion designated above is the date of
issuance established by this Certificate,which is also the date of commencement of applicable warranties required by the
Contract Documents,except as stated below:
Warranty Date of commencement
1 year March 6th,2013
PAT(2-•c.k. it►J ty:✓ ►JCS � _ J �
. c- t) iEQ‘1 �' � Mph 'tea
ARel uTEeT• E,,j e ;,.._,6_4.Z oar) DATE OF ISSUANCE
A list of items to be completed or corrected is attached hereto.The failure to include any items on such list does not alter the
responsibility of the Contractor to complete all Work in accordance with the Contract Documents.Unless otherwise agreed to
in writing,the date of commencement of warranties for items on the attached list will be the date of issuance of the final
Certificate of Payment or the date of final payment.
Cost estimate of Worst that is incomplete or defective: S 0.00
The Contractor will complete or correct the Work on the list of items attached hereto within thirty
( 30 )days from the above date of Substantial Com lotion.
Patrick Engineering Inc. C March 6th,2013
CONTRACTOR BY(Signature) DATE
The Owner accepts the Work or designated portion as substantially complete and will assume full possession at
12:00 PM (time)on March 6th,2013 /J
Hallibutton Energy Services,Inc. %� _ March 6th,2013
OWNER BY DATE
The responsibilities of the Owner and Contractor for security,maintenance,heat,utilities,damage to the Work and insurance
shalt be as follows:
(NOTE:Owner's and Contractor's legal and insurance counsel should determine and review insurance requirements and coverage.)
Owner assfines responsibility for security,maintenance,heat,utilities,damage to the Work and insurance as stipulated
in the contract documents.
AIA Document G704"'-2000.Copyright 01983,1978,1992 and 2000 by The American Institute of Architects.An rights reserved.WARNING:This
AlAe Document in rrotected by U.S.Copyright 4av and International Treatios,I:nauthorixd reproduction or diciribution of this A'A''Document,
or any portion of it,may result in seven civil and criminal 7t.nettles,and wilt be prosecuted to the maximum extent possible urde:thc law.This
document was crested on 04/03/2013 00:48:16 unri'rtha tonne ofAIA Documents-on-Demand'"'order no. 200858206e ,and is not for resale.The
document Is licensed by the American institute of Architects for one-time use only.and may not be reproduced prior to Its completion_
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Westchester Fire Insurance Company
436 Walnut Street, Philadelphia, Pennsylvania 19106
Rider to be attached to and form a part of Bond Number K08358989 on
behalf of Halliburton Energy Services, Inc. and in favor of the Board
of County Commissioners of Weld County, Colorado, executed by the
Company indicated above Westchester Fire Insurance Company In the
amount of Two Hundred Seventy Thousand Two Hundred Eighty Three and
00/100 Dollars ($270,283.00) .
The Principal and the Surety hereby consent to changing the said bond
as follows:
The bond amount of this bond is amended:
From: Two Hundred Seventy Thousand Two Hundred Eighty Three and 00/100
Dollars ($270,283.00)
To: Forty Thousand Five Hundred Forty Two & 45/100 - - ($40,542.45)
This change is effective the 2"a day of April, 2014.
Nothing herein contained shall vary, alter or extend any provision or
condition of the bond other than as above stated.
Sign, Sealed and dated this 27th day of March, 2014.
By: Hallburto Ener Services, Inc.
)
George E. Attorney-lfl-Fact
(Principal)
AP _ 1 its!'.
Weld County By: Wes a ster Fide Insurance Company
Pblic 9d� Works Dept
LFSJ(/J p y
Vickie Lacy, Att-act
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Attorney .:
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• ' Know Alt Mt 4hese,prey is:O3iat`W. lf:FGYRE.INSURANCE COMPANY,a-cortwratiuTrOriltp mffi�we of: e , TVatityt pursuant to the
foitowin R ol p.i0iiopteti b;th&Bo 4 ODirectors hf tpie.eaid Company on Dkeember 11 i W r.to wit .,. '; :
`l.
i°± Vt ;that the,•}11otri ng:Jpthoriattiortq.relnteio the cric aI1gfl for and on behalf of the C :of n derijaing;1s recogniantes,Cottsicts an tintrwnttbh conurrrlpdenls,: the Company
course of business each a"..- 'Lien. t.ttrd7nldy .( iVl!.. .t�omnaSmar'):
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tmaxt the presf�pit sad.tfre�Vtoq'Rmsidaros e8ake Company is hereby authorized to e>ieelde, WI/ritwt Comihi� f�'araFseh behal... „et'mn - {, .,....-.tlta cal of the Company or
*(2) &y lt.dit(viiappoit(I�fd ettb)hey-irfAit of the CtiIo tarty lterebyt to a,.ecuia kii s W daee Commitment for and on baltdfroTdte Cerifp y.'t hider thriiit oflbc(bnbgny'pr terwrea to:lhe mogul]he
ri*b olio at is rizerktty lire gt $o1•puirere proyided for u emeeS'rtiifen appointment as such attorney-in-fact.
(3) Essit ofthp Chatanao,he psesidalt and the Vroe P srdqus of)rtp Cl*tipaiii.is hereby authorized•for and on behalf of the Cotnp.ony appoint MOM*a person the:plioo$y-etGt ct of he tpntpgpy with
fill
IdAwatradcuihontrltoe;tecnte for andonbehalfoftheCorijpen)!,ttnnderthesealoftheCompanyorotherwise,suchWrittin ofiddbnentsortheCompanyasmaybespe(:iliedihsuch*titbgl
. appollameid;,ttitaich at'ectftcatloo MO,*bry,rinet>it typed elaaeof)tram Commtnrienuo'r by specification of one or more pebleuli!,Witlei emmiunenls. -•
(4) Each o(din tpifintln,the President .•yce*Esidat%i efJha fSitmaiYA In hcinte ithiarized•for and on behalf or the Company,t6.oitim heir•Writing mry 90tet offiatn brth*Cardyenytheilufluitity to '
*emote,for`addon behalf of the Compdny;under theCompay's seal or 811+We1ie:auoh Written Commitments of the Company as are spadifred in such written Jeteiatim4 which**Ili Cation may be 3y''
general type or class of Written Commitments or by.specification of one or TOR par ieWar Written Commitments.•(5) The signehre•¢rany of iitlur ppson��!'icecutmG mty 9ttt�en Ctbrmralo(eta a 31)1Potnggpil or-delegation pursuant to this Resoa*1 the feel of CoRplty,Ipq be alined by 1'snrmfl2 oq 50th
Wmten.Comgdtmentoc Writte appoitatment or deleitatd(t'. ^•" •
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i 3 FURTHE'R.Rts'$Q4vVD,tltd dleffatiYtggtLfg s.00iiltioit shalt nob tie 'tit beak ti, se stakdient of thepowers and authority;gf ofltrers,ergtloy0.atrd other mars toad 1`oP#amCon*mil•;the: t;
P . �`, •:
Cornpmry,.and igob•RallQlisiQtt algll nat'hail;q[otherwisgi<#fed]herPlereiss:of ally's power or.authoriq'otherwise validly grinned or vitiated.
Does hereby nominate,cor�jitute.nd appoint Joseph R�)>ulben Marti~W aopts,,WOAD Zuniga,P.T.Osburn,Richard Covington ficicie Lal r 81l of the Citlt of •
HOUSTON,Texas,each individually if there be more than one tamed,its tine and'lawful attorney-in-fact,to make,execute,seal and detiver`on its behaff•aiid as its ict
:.;8nd de .afty;and aIk bonds undertakings,recognizaneesi Contracts and other wntings in.the nature thereof rnpenalties not Ming Ten million dollars&zero cents
l 0,QQQ,OODt00)and the:execut on.of such Writings.n:ptpratiauce of these presents.shall be as bindin upon spill(oin{ ,iy as fully and'amply as if'tbey had been duly
e) cuttd andaeknowd}ryledge t at-ly:regul - ectt d officers otthe Company at its paince al of)'Ice, , a,
,:+1RI N S NHC REOF04 d S e� y.Haim,r ice-President,has hereunto*. 1bsGnbetf had name agtl affrxocl:ingCotporateseal o the said WESTCHESTER
,.. WESTcitES7 {FIRifi•lt+is[ GQ11�PANY
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COMMONWEAL'il t`tF PENNSYLVANIA. •'...." '..'<•••:'`s
COUNTY OF PHILADELPHIA ss.
On this 16 day of July`AD.2013,before me;:a Notafy'Public of the Commonwealth of Pennsylvania in and for the County of Philadelphia- 1ic Stephan-M:^•.'„.,
Haney,Vice-Presidentof the WESTCHESTER FIRE INSURANCE COMPANY to me personally known to bethe individual and officer i'hoscxeciated t e '
preceding instrument ind t�acknowledged tttat he execute .tllFi same rind that the seal affixed to the precede Ins rumeilt is tttecorporate seal of_ itlCompany;loin ,:# tt`
the said corporate seal apd his signature werbki�luly affixed by the authprttq and direction of the said corporatiotq ancf that#tesgluteon,adopted by'the Btt rd ofDiectttks ,•
of said Company,referico total.the,precedi g instrument is notY in force.'. ; t•
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IN TESTIMONY WHEREOF:tttave hereuritiiSbt-sny hand and.affixed iii :b'fftelaf seal at the City of Philadelphialfiettliiitnd year titst'aboi4 written::': --:••i{,...•:..-: ` •
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THIS POWER OF ATTORNEY MAY tI0J BE 1.1.W.,.,TO EXECUTE ANY BOND-WITH AN,i,NcEPTION,DA E AFTER duly 16,2015;•
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