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HomeMy WebLinkAboutContracts & Agreements_198-2005_CCv0001.pdf MINUTES of a regular meeting of the City Council of the City of Redlands held in the I City Council Chambers, Civic Center, 35 Cajon Street, on October 18, 2005, at 3:00 P.M. PRESENT Gilberto Gil, Mayor Pro Tem Pat Gilbreath, Councilmember Gary George, Councilmember Jon Harrison, Councilmember ABSENT Susan Peppler, Mayor STAFF John Davidson, City Manager; Daniel J. McHugh, City Attorney; Beatrice Sanchez, Deputy City Clerk; Michael Reynolds, City Treasurer; Jim Bueermann, Police Chief, Jim Drabinski, Fire Chief, Don Gee, Redevelopment Agency Director; Tina Kundig, Finance Director; Ronald C. Mutter, Public Works Director; Marjie Pettus, Administrative Services Director; Gary G. Phelps, Municipal Utilities Director; and Jeffrey L. Shaw, Community Development Director The meeting was opened with an invocation by Councilmember Harrison followed by the pledge of allegiance. CONSENT CALENDAR Minutes - On motion of Councilmember Harrison, seconded by Councilmember George, the minutes of the regular meeting of October 4, 2005, were approved as submitted. Bills and Salaries - On motion of Councilmember Harrison, seconded by Councilmember George, payment of salaries and bills was acknowledged. Planning Commission Report - On motion of Councilmernber Harrison, seconded by Councilmernber George, the report of the Planning Commission Z�' scheduled for October 11, 2005, was acknowledged as received. Notice of Environmental Actions - On motion of Councilmember Harrison, seconded by Councilmember George, the report on pending environmental actions received from surrounding jurisdictions was acknowledged as received. Bridee Replacement Project - On motion of Councilmember Harrison, seconded by Councilmember George, the City Council accepted, by AYE votes of all present, substitution of securities documents from MCM Construction for the Alabama and Orange Street Bridge Replacement Project and authorized the Mayor Pro Tern to execute, and the Deputy City Clerk to attest to, the document on behalf of the City. October 18,2005 Page I Z> ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into by and between City of Redlands whose address is 35 Cajon Street, Suite 222, Redlands, CA 92373 hereinafter called "Owner," and MCM Construction whose address is P. O. Box 620, North Highlands, CA 95660 hereinafter called "Contractor," and U.S. Bank National Association whose address is 633 West Fifth Street, 24' Floor, Los Angeles, CA 90071, hereinafter called "Escrow Agent." For the consideration hereinafter set forth, the Owner, Contractor, and Escrow Agent agree as follows: (1) Pursuant to Section 22300 of the Public Contract Code of the State of California, 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 the Owner and Contractor for Alabama Street and Orange Street Bridge Replacement in the amount of$7,626,738.00 (hereinafter referred to as the "Contract"). Alternatively, on written request of the Contractor, the Owner 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 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 the Owner and Contractor. Securities shall be held in the name of City of Redlands and shall designate the Contractor as the beneficial owner. (2) The Owner 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 Owner makes payments of 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 contract 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 Owner pays the 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 the Owner. These expenses and payment terms shall be determined by the Owner, Contractor and Escrow Agent. 5) The interest earned on the securities or the money market accounts held in escrow and all interest earned on that interest shall be for the sole account of Contractor and shall be subject to withdrawal by Contractor at any time and from time to time without notice to the Owner. Public Contract Code§22300 Rev.T99 1 (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 accompanied by written authorization from the Owner to the Escrow Agent that Owner consents to the withdrawal of the amount sought to be withdrawn by Contractor. (7) The Owner 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 owner of the default, the Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the Owner. (8) Upon receipt of written notification from the Owner certifying that the Contract is final and complete, and that the 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 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 the Owner and the Contractor pursuant to Sections (5) to (8), inclusive, of this agreement and the Owner and Contractor shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the securities and interest as set forth above. Public Contract Code§22300 Rev,7/98 2 (10) The names of the persons who are authorized to give written notice or to receive written notice on behalf of the 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: Mayor Pro Tem �uGrr+ Ptrit7 C�er�rtu. , nr�ce+� Title Title Gilberto Gil AAPR y Rc ' Signature � ��Signa e P.O. Box 3005 Redlands CA 92373 l44t .0Sid v rti t CA Address Address Date: October 18, 2005 On behalf of Escrow Agent: V i.0 -I — Title am 633 Nest 5" Street 24`' Floor Los Angeles, CA 90071 Address Public Contract Code§22300 Rev. 7198 3 At the time the Escrow Account is opened, the Owner and Contractor shall deliver to the 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. Attest to Owner Contractor Deputy City Clerk �ice ?an,up, � UL A i- Title Title Beatrice Sanchez I\,\ - �Name Signa re Sigma re Public Contract Cade§22300 Rev, 7198 4