HomeMy WebLinkAboutContract 1696-2c - X69 6 - z.
ESCROW NO.: 2486
ACCOUNT NO.: 14917330
ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
THIS ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
(hereinafter called the "Agreement") is made and entered into on this rlth day of Awl \ ,-y
and between the City of Cathedral City whose address is: 68-700 Avenida Lalo Guerrero,
Cathedral City, Ca 92234 (hereinafter called "Agency"), Riverside Construction Company, Inc.
whose address is: 4225 Garner Road, Riverside, Ca 92501-1057 (hereinafter called
"Contractor"), and Community Bank, a California banking corporation, whose address is 460
Sierra Madre Villa Avenue, Pasadena, CA 91107-2967 (hereinafter called "Escrow Agent").
WHEREAS, the parties desire to establish an escrow account with Escrow Agent (the
"Escrow Account") pursuant to the provisions of Section 22300 of the California Public Contract
Code.
NOW, THEREFORE, for the consideration hereinafter set forth, the Agency, Contractor,
and Escrow Agent agree as follows:
1. Pursuant to Section 22300 of the Public Contract Code of the State of California,
the Contractor has the option to deposit securities with Escrow Agent as a substitute for retention
earnings required to be withheld by the Agency pursuant to the Construction Contract entered into
between the Agency and the Contractor, for the Date Palm Drive Bridge Over Whitewater
River project in the amount of $15,570,139.30 (hereinafter referred to as the "Contract").
Alternatively, on written request of the Contractor, the Agency shall make payments of the
retention earnings directly to the Escrow Agent. When the Contractor deposits the securities as
a substitute for Contract earnings, the Escrow Agent shall notify the Agency within ten (10) days
of the deposit. The market value of the securities at the time of the substitution shall be at least
equal to the cash amount then required to be withheld as retention under the terms of the Contract
between the Agency and the Contractor. Securities shall be held in the name of N/A, and shall
designate the Contractor as the beneficial owner.
2. The Agency shall make progress payments to the Contractor for those funds which
otherwise would be withheld from progress payments pursuant to the Contract provisions,
provided that the Escrow Agent holds securities in the form and amount specified above.
3. When the Agency makes payment of the retentions earned directly to the Escrow
Agent, the Escrow Agent shall hold them for the benefit of the Contractor until the time that the
escrow created under this Agreement is terminated. The Contractor may direct the investment of
the payments into securities. All terms and conditions of this Agreement and the rights and
responsibilities of the parties shall be equally applicable and binding when the Agency pays the
Escrow Agent directly.
4. The Contractor shall be responsible for paying all fees for the expenses incurred by
the Escrow Agent in administering the Escrow Account and all expenses of the Agency. These
expenses and payment terms shall be determined by the Agency, the Contractor and the Escrow
Agent.
5. The interest earned on the securities or the money market accounts held in escrow
shall be for the sole account of the Contractor and shall be subject to withdrawal by the Contractor
at any time and from time to time without notice to the Agency.
6. The Contractor shall have the right to withdraw all or any part of the principal in
the Escrow Account only by written notice to the Escrow Agent accompanied by written
authorization from the Agency to the Escrow Agent that the Agency consents to the withdrawal of
the amount sought to be withdrawn by the Contractor.
7. The Agency shall have a right to draw upon the securities in the event of default by
the Contractor. Upon seven days' written notice to the Escrow Agent from the Agency of the
default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the
cash as instructed by the Agency.
8. Upon receipt of written notification from the Agency certifying that the Contract is
final and complete, and that the Contractor has complied with all requirements and procedures
applicable to the Contract, the Escrow Agent shall release to the Contractor all securities and
interest on deposit less escrow fees and charges of the Escrow Account. The escrow shall be
closed immediately upon disbursement of all moneys and securities on deposit and payments of
fees and charges.
9. The Escrow Agent shall rely on the written notifications from the Agency and the
Contractor pursuant to Sections 5 to 8, inclusive, of this Agreement and the Agency and the
Contractor shall hold the Escrow Agent harmless from the Escrow Agent's release and
disbursement of the securities and interest as set forth above.
10. To help the government fight the funding of terrorism and money laundering
activities, Federal laws requires all financial institutions to obtain, verify and record information
that identifies each individual or entity that opens an account. Therefore, the Escrow Agent must
obtain the name, address, taxpayer or other government identification number, and other
information, such as date of birth for individuals, for each individual and business entity that is a
party to this Agreement. For individuals signing this Agreement on their own behalf or on behalf
of another, the Escrow Agent requires a copy of a driver's license, passport or other form of photo
identification. For business and other entities that are parties to this Agreement, the Escrow Agent
will require such documents, as it deems necessary in its sole discretion to confirm the legal
existence of the entity. The Escrow Agent may investigate prior banking history and obtain
reports from consumer reporting agencies on signers to this agreement.
11. The names of the persons who are authorized to give written notice or to receive
written notice on behalf of the Agency and on behalf of the Contractor in connection with the
foregoing, and exemplars of their respective signatures are as follows:
On behalf of the Agency: City of Cathedral City On behalf of the Contractor: Riverside Construction
Name:
Title: err!yl4 4140--
Signature
Si
g It Cx
Address:
68-700 Avenida Lalo Guerrero
Cathedral City, Ca 92234
(760) 770-0340
On behalf of the Escrow Agent:
COMMUNITY BANK
Name: Aubrey T Walden
Title: SVP, International & Treasury Banking
Manager
Signature: C7
Address:
460 Sierra Madre Villa Avenue
Pasadena, California 91107-2967
(626) 568-2006
Company, Inc.
Name:
Title:
Signature
Address:
U/i L. Sm H -1i
Secretary/Treasurer
4225 Garner Road
Riverside, Ca 92501-1057
(951) 682-8308
Notwithstanding anything contained herein to the contrary, Escrow Agent may accept and
rely such other authorized person(s) on behalf of Agency to sign documents, notifications,
instructions, or provide or receive written notice in connection with the terms, conditions, and
requirements of this Agreement, subject to verification of such authorized persons on behalf of
Agency in Escrow Agent's sole and absolute discretion.
At the time the escrow account is opened, the Agency and the Contractor shall deliver to
the Escrow Agent a fully executed original of this Agreement.
[SIGNATURE PAGE FOLLOWS]
IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officers on
the date first set forth above.
AGENCY: City of Cathedral City_
CONTRACTOR: Riverside Construction
Company, Inc.
Si ature. Lti{, tJ--• tL-
gn
Printed Name: £?Lsaed to. /h 6-C14%4144)
Title: gi r n9,q,. yam„
Signature:
rzbe
Printed Name: Sill c, 6. ,sem,
Title: Secretary/Treasurer