HomeMy WebLinkAboutPW Essential Facilities Demolition Escrow AgrESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into by and between the Citv of San Rafael, whose address is 1400
Fifth Avenue. San Rafael. CA 94901, hereinafter called "Owner," Alten Construction. Inc. whose address is 720
121 Street, Richmond. CA 94801 hereinafter called "Contractor" and Bank of Marin whose address is 4460
Redwood Hwv., San Rafael, CA 94903 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 Construct Contract entered into between the Owner and Contractor for the "City of
San Rafael Essential Facilities Construction Proiect — Fire Station #52 and Fire Station #57". in the amount of
$19,940,000 dated Mav 10. 2017 (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 Contactor. Securities shall be held in the name of, Citv of San Rafael 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 payment 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) Contactor 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, Contactor, 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.
6) Contactor 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 monies and securities on
deposit and payments of fees and charges.
9) Escrow Agent shall rely on the written notifications from Owner and the Contractor pursuant to
Sections (5) and (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.
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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:
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Title J
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Name
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Signature
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Address (j _ C4 9 qq 0
On behalf of Escrow Agent:
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Title
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Name
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Signature
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Address
On behalf of Contractor:
Vice President
Title
Shannon M. Alten
Name
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Signature
720 12' Street. Richmond. CA 94801
Address
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Account #
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 offices on the date first set
forth above.
Owner: Contractor:
Citv ManaEer Vice President
Title Title
Jim Schutz Shannon M. Alten
Na)J Name
Si re Signature
e:ALTEN
CONSTRUCTION
SlAl C- j9n,`'�
1 I I A t 1r
June 6, 2017
Ms. Cindy Ray
Project Manager
City of San Rafael
111 Morphew Street
San Rafael, CA 94901
RECEIVED
JUN 07 i i,,
PUBLIL WORKS DEPT,
CITY OF SAN RAFAEL
RE: Escrow Agreement for Security Deposits in Lieu of Retention
City of San Rafael Essential Facilities Construction Project — Fire Station #52 & Fire Station #57
Hi Cindy,
Enclosed, please find three (3) originals of the Escrow Agreement for the above noted project.
Could you please have all 3 signed, keep one for your records and return 2 signed originals to me (1 for us and 1 for
Bank of Marin)? I will forward the original to Bank of Marin.
Please let me know if you have any questions about the above noted documents. Thank you!
Sincerely,
��-t.
Karin M. Romeo
RID COORDINATOR
Enclosures
720 121h Street, Richmond, CA 94801 510-234-4200 Phone • 510-234-4402 Fax License#705713
CONTRACT ROUTING FORM J.
INSTRUCTIONS: Use this cover sheet to circulate all contracts for review and approval in the order shown below.
TO BE COMPLETED BY INITIATING DEPARTMENT PROJECT MANAGER:
Contracting Department: Department of Public Works
Project Manager: Cindy Ray
Extension: x5326
Project Name: Escrow Agreement
Contractor Name: Alten Construction
Contractor's Contact: Shannon Alten
Contact's Email: salten@altenconstruction.com
❑ FPPC: Check if Contractor/Consultant must file Form 700
Step
1
2
3
4
RESPONSIBLE DESCRIPTION
DEPARTMENT
Project Manager a. Email PINS Introductory Notice to Contractor
b. Email contract (in Word) & attachments to City
Atty c/o Laraine.Gittens@cityofsanrafael.org
City Attorney a. Review, revise, and comment on draft agreement
and return to Project Manager
b. Confirm insurance requirements, create Job on
PINS, send PINS insurance notice to contractor
Project Manager Forward three (3) originals of final agreement to
contractor for their signature
Project Manager When necessary, * contractor -signed agreement
agendized for Council approval
*PSA > $20,000; or Purchase > $35,000; or
Public Works Contract > $125,000
PRINT
5 Project Manager
6 City Attorney
7 City Attorney
8 City Manager/ Mayor
9 City Clerk
G(-1- 7o/ -)t /2--a?--
Date of Council approval
CONTINUE ROUTING PROCESS WITH HARD COPY
Forward signed original agreements to City
Attorney with printed copy of this routing form
Review and approve hard copy of signed
agreement
Review and approve insurance in PINS, and bonds
(for Public Works Contracts)
Agreement executed by Council authorized official
Attest signatures, retains original agreement and
forwards copies to Project Manager
COMPLETED
DATE
na
5/21/2017
REVIEWER
Check/Initial
10 .
5/22/2017 N LAG
5/22/2017 N LAG
N/A
❑ CR
® N/A
Or ❑ CR
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enter a date.
06/12/2017