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HomeMy WebLinkAbout2015 CON Fordoyce Construction / California United Bank - Escrow AgreementESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION I 1 Escrow Retention Account # 1124186524 ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION This Escrow Agreement is made and entered into, as of 1/12/2015, by and between City Of National City, whose address is 1243 National City Blvd National City CA 91950 hereinafter called "City," Fordyce Construction, Inc, whose address is, 9932 Prospect Ave #138 Santee CA 92071 hereinafter called "Contractor," and California United Bank whose address is 2400 East Katella Avenue Suite 125, Anaheim, CA 92806, hereinafter called "Escrow Agent." For the consideration hereinafter set forth, the City, 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 City pursuant to the Construction Contract entered into between the City and Contractor Morgan Tower Repairs & City Hall Remodel CIP 14-04 in the amount of $128,200.00 dated 12/17/2014 (hereinafter referred to as the "Contract"). Alternatively, on written request of the Contractor, the City 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 City 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 City and Contractor. Securities shall be held in the name of Fordyce Construction Inc, Escrow - Morgan Tower Repairs & City Hall Remodel CIP 14-04, and shall designate the Contractor as the beneficial owner. (2) The City 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 City makes payment of retention 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, subject to the City's rights under Paragraph 7 below. 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 City 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 City. These expenses and payment terms shall be determined by the City, 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 the Contractor at any time and from time to time without notice to the City. ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION Escrow Retention Account # 1124186524 2 (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 City to the Escrow Agent that City consents to the withdrawal of the amount sought to be withdrawn by Contractor. (7) The City shall have a right to draw upon the cash or securities in the event that the OvmsnE declares the Contractor to be in default/breach of the Contract. Upon seven days' written notice to the Escrow Agent from the City declaring that the Contractor is in default/breach of the Contract, the Escrow Agent shall immediately convert the securities to cash and shall distribute the cash as instructed by the City. (8) Upon receipt of written notification from the City 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 City and the Contractor pursuant to Sections (5) through (8), inclusive, of this agreement and the City 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 the City and on behalf of Contractor in connection with the foregoing, and exemplars of their respective signatures are as follows: On behalf of City: Mayor Title Ron Morrison On behalf of Contractor: WCW1Car Title Pion FrAtirce, Na Name F-c< og, S nature Signature �o` 1243 National City Blvd. c ✓ . FkKrct I \�V .1 Address National City, CA 91950 Address Backe, 9 A l ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION 13 Escrow Retention Account # 1124186524 On behalf of Escrow Agent: 12ELATib4NteatitP MiMtktiEt2- Title bet4N O.OeLFW Na Signature 74Po E K1 s'EE 125 ',IvANE Si R2 Address 7/1/-*r70-4l 3 Telephone # At the time the Escrow Account is opened, the City and Contractor shall deliver to the Escrow Agent 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. City: Mayor Title Ron Morrison On behalf of Escrow Agent: 1.,'fro*r3mP MA-NAAM Title t0N11/411/4r Name Signature Contractor: Pr.ca'1 Title b(ItV) tire/ Name Fir Signature CITY OF NATIONAL CITY Office of the City Clerk 1243 National City Blvd., National City, California 91950 619-336-4228 phone / 619-336-4229 fax Michael R. Dalla, CMC - City Clerk FORDYCE CONSTRUCTION / CALIFORNIA UNITED BANK Escrow Agreement for Security Deposits in Lieu of Retention Morgan Tower and City Hall Remodel Project Judy Hernandez (Engineering) Forwarded Copy of Agreement to Fordyce Construction / California United Bank