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Home My WebLink About14-Public Works CITY OF SAN BER~RDINO - -, From: ROGER G. HARDGRAVE REQUEST 'FbR COUNCIL ACTION File No. 1.653 Authorization to Execute Escrow Subject: Agreement -- Widening South -E- Street Bridge over Santa Ana River Dept: Public Works Date: 9-16- 9 2 Synopsis of Previous Council action: 08-07-9l Authorization granted to advertise for bids. 09-04-9l Allocation of $1,000,000 in bond proceeds approved. 1l-04-91 Resolution No. 91-452 adopted awarding a contract to Brutoco Engineering & Construction for low bid price of $3,599,452.80. 03-16-92 -- Resolution No. 92-105 adopted authorizing execution of an Agreement with NBS/Lowry relative to Resident Engineer Services. Recommended motion: That the Director of Public Works/City Engineer be authorized and directed to execute, on behalf of the City of San Bernardino, Escrow Agreement for Security Deposition in Lieu of Retention, Escrow #92-- 002, with Brutuco Engineering & Construction, Inc. and Western Community Bank. cc: Shauna Clark Fred Wilson Contact person: Roger G. Hardgrave Staff Report and Agreement Phone: 5025 Supporting data attached: Ward: 3 FUNDING REQUIREMENTS: Amount: N/A Source: (Acet, No.) (Aeet, DescriPtion) Finance: Council Notes: 75-0262 Agenda Item No, /Lj - - CITY, OF SAN BER,QRDINO - , '! REQUEST POR COUNCIL ACTION STAFF REPORT Ten percent of the cost of work accomplished by a Contractor is normally retained by the contracting agency, and paid to the Contractor after expiration of the 3D-day lien period. However, Section 10263, of the State of California Public Works Contract Code allows the Contractor to direct the agency to deposit the retention funds into an escrow account. These funds will be held by the Escrow Agent until such time as the agency gives notice in writing that the funds, plus interest, can be withdrawn by the Contractor. The proposed Escrow Agreement provides that the retention funds will be paid to Western Community Bank, who will serve as Escrow Agent. Since this arrangement for payment of retention funds is mandated by State law, we recommend that the Escrow Agreement be approved. 9-16-92 75-0264 ~ \......... -. / ESCROW AGREEMENT FOR SECURITY DEPOSITION IN LIEU OF RETENTION (option B) Escrow t 92-002 WIDENING THE "E' STREET BRIDGE OVER THE SANTA ANA RIVER This Escrow Agreement is made and entered into by and between The citv of San Bernardino ("DEPARTMENT" herein), Brutoco Enqineerinq & Construction. Inc. ("CONTRACTOR" herein), and Western Communitv Bank ("ESCROW AGENT" herein). For the consideration hereinafter set forth, DEPARTMENT, CONTRACTOR, and ESCROW AGENT agree as follows: (1) Pursuant to Section 10263 of the Public Contract Code of the State of California, on written request of CONTRACTOR, DEPARTMENT shall make payments of retention earnings directly to ESCROW AGENT as a substitute for retention earnings required to be withheld by DEPARTMENT pursuant to Contract No. 8347 between DEPARTMENT and CONTRACTOR dated 11-14-91 (hereinafter referred to as the "Contract"). (2) When DEPARTMENT makes payment of retention earned directly to ESCROW AGENT, ESCROW AGENT shall hold them for the benefit of CONTRACTOR until such time as the escrow created under this agreement is terminated. (3) CONTRACTOR may direct the investment of the payments into securities. (4) CONTRACTOR shall be responsible for paying all fees for the expenses incurred by ESCROW AGENT in administering the escrow account. These expenses and payment terms shall be determined by CONTRACTOR and ESCROW AGENT. (5) The interest earned on the securities or the money market accounts held in escrow and all interest earned on the interest shall be for the sole account of CONTRACTOR and shall be subject to withdrawal by CONTRACTOR any anytime and from time to time without notice to DEPARTMENT. (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 DEPARTMENT to ESCROW AGENT the DEPARTMENT consents to the withdrawal of the amount sought to be withdrawn by CONTRACTOR. ,'" /,' - - c ~ /' (7) DEPARTMENT 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 DEPARTMENT of the default, ESCROW AGENT shall immediately convert the securities to cash and shall distribute the cash as instructed by DEPARTMENT. (8) Upon receipt of written notification from DEPARTMENT upon 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 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 form DEPARTMENT and CONTRACTOR pursuant to Sections (1) TO (8), inclusive of this agreement and DEPARTMENT and CONTRACTOR shall hold ESCROW AGENT harmless from ESCROW AGENT'S release, conversion, 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 DEPARTMENT, on behalf of CONTRACTOR, and on behalf of ESCROW AGENT in connection with the foregoing and exemplars of their respective signatures are as follows: On Behalf of DEPARTMENT: City of San Bernardino DIRECTOR OF PUBLIC WORKS/CITY ENGINEER Executive Vice President TITLE TITLE ROGER G. HARDGRAVE NAME)) ~. .~~' ftGNATURE -[ 300 North "D" Street San Bernardino. CA 92418 ADDRESS On behalf of CONTRACTOR: ;'hJflv ~ S~TURE On behalf of ESCROW AGENT: P.O. Box 429 ADDRESS Fontana, Calif. 92334 Senior Vice President TITLE Charles R Wood N::----- ..---::::::" SIGNATURE ~ 321 E 6th Street ADDRESS Corona, Calif. 9l7l9 r v ~- At the time the escrow account is opened, CONTRACTOR shall deliver to ESCROW AGENT a counterpart of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement by their proper officer. DEPARTMENT and fully executed DATED DEPARTMENT City of San Bernardino T'Wf10eR eF Pl:JBLIC lJeRKS/CITY ENGINEER ROGER G. HARDGRAVE CONTRACTOR Executive Vice President TITLE RO._G~ ~" SI ATURE =-- ~ ~ / ~ / NAT ( ESCROW AGENT Senior Vice President TITLE Charles R Wood N~ ~--t- ___SIGNATURE -