HomeMy WebLinkAboutContracts & Agreements_4-2016_CCv0001.pdf Bank Escrow No.: 1109
ESCROW AGREEMENT FOR
SECURITY DEPOSITS IN LIEU OF RETENTION
This escrow agreement for security deposits in lieu of retention ("Agreement") is made
and entered into this 14th day of December , 2015, by and among the City of Redlands, whose
address is Post Office Box 3005, Redlands, CA 92373 ("Owner"), Paso Robles Tank, Inc. whose
address is 825 20h Street, Paso Robles, Ca 93446 ("Contractor"), and Banner Bank, whose
address is 1750 Howe Avenue, Suite 100,Sacramento, CA 95825 ("Escrow Agent")
WHEREAS, the Owner and Contractor desire to establish an escrow account with Escrow
Agent(the "Escrow Agent")pursuant to Section 22300 of the California Public Contract Code;
NOW THEREFORE, for the consideration hereinafter set forth, the Owner, Contractor,
and Escrow Agent agree as follows:
1. Pursuant to Section 22300 of the California Public Contract Code, Contractor
has the option to deposit securities with Escrow agent as a substitute for retention earnings
required to be withheld by Owner pursuant to the Construction Contract entered into between
Owner and Contractor dated November 3, 2015, for Owner's Crafton Hills Reservoir Recoating
& Improvements Project, Project No. 71261 in the amount of **Six Hundred Twenty-Two
Thousand Sixty-Five Dollars and No Cents** ($622,065.00) ("Contract"). Alternatively, on
written request of Contractor, Owner shall make payments of the retention earnings directly to the
Escrow Agent. When Contractor deposits the securities as a substitute for Contract earnings, the
Escrow Agent shall notify Owner within 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 Owner and Contractor.
Securities shall be held in the name of City of Redlands, and shall designate Contractor as the
beneficial owner.
2. Owner shall make progress payments to Contractor for those funds which
otherwise would be withheld from progress payments pursuant to the Contract provisions,
provided that Escrow Agent holds securities in the form and amount specified above.
3. When Owner makes payment of retentions earned directly to Escrow Agent,
Escrow Agent shall hold them for the benefit of Contractor until the time that the escrow created
under this Agreement is terminated. 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 Owner pays Escrow Agent directly.
4. Contractor shall be responsible for paying all fees for the expenses incurred by
Escrow Agent in administering the Escrow Account and all expenses of Owner. These expenses
and payment terms shall be determined by Owner, Contractor, and Escrow Agent.
5. The interest earned on the securities or the money market accounts held in the
Escrow Account and all interest earned on that interest shall be for the sole account of Contractor
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Escrow Agreement for
Cration Hills Reservoir Recoating and Improvements Project,Project No.71261
Page—2 of 3
and shall be subject to withdraw by Contractor at any time and from time to time without notice
to Owner.
6. Contractor shall have the right to withdraw all or any part of the principal in
the Escrow Account only by written notice to Escrow Agent accoumpanied by written
authorization from Owner to Escrow Agent that Owner consents to the withdrawal of the amount
sought to be withdrawn by Contractor.
7. Owner shall have a right to draw upon the securities in the event of default
by Contractor. Upon seven days' written notice to Escrow Agent from Owner of the default,
Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as
instructed by Owner.
8. Upon receipt of written notification from Owner certifying that the Contract
is final and complete, and that Contractor has complied with all requirements and procedures
applicable to the Contract, Escrow Agent shall release to Contractor all securities and interest on
deposit less escrow fees and charges of the Escrow Account. The Escrow Account shall be
closed immediately upon disbursement of all moneys and securities on deposit and payments of
fees and charges.
9. Escrow Agent shall rely on the written notifications from Owner and
Contractor pursuant to Sections 5 to 8, inclusive, of this Agreement and Owner and Contractor
shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the
securities and interest as set forth above.
10. The names of the persons who are authorized to give written notice or to
receive written notice on behalf of Owner and on behalf of Contractor in connection with the
foregoing, and exemplars of their respective signatures are as follows:
On behalf of Owner On behalf of Contractor
City of Redlands Paso Robles Tank, Inc.
Title: Finance Director Title: President
Name: Tina T. Kundig Name: Leslie D. Scott
Address:Post Office Box 3005 Address: 825 26'h Street
Redlands, CA 92373 Paso Robles, CA 92446
On behalf of Escrow Agent:
Banner Bank
Title:Assistant Vice President
Relationship Manager
Name: Keith Parkes
Address: 1750 Howe Avenue, Suite 100
Sacramento,CA 95825
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Escrow Agreement for
Crafton Hills Reservoir Recoating and Improvements Project,Project No.71261
Page—3 of 3
At the time the Escrow Account is opened, Owner and Contractor shall deliver to Escrow Agent a
fully executed counterpart of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their proper
officers on the date first set forth above.
OWNER: CONTRACTOR:
City of Redlands Paso Robles Tank, Ind.
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Signature: - Signature:,% ✓
Paul Foster, Mayor 'L'eslie D. Scott, President
ESCROW AGENT
Attest:
Banner Bank
Signature: Signature: ���=✓`�
Sam Irwi Ity Ckerk Keith Parkes, Assistant Vice President
Relationship Manager
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