HomeMy WebLinkAbout04- Development Department DEVELOPMENT DEPARTMENT OF THE
CITY OF SAN BERNARDINO
REQUEST FOR COMMISSION/COUNCIL ACTION
From: Roger G. Hardgrave, Dir. Subject: Authorize Escrow
of Public Works/City Engr. Agreement - Substi-
tution of Securities
Main Street Revitali-
Date: May 10 , 1993 zation Program, Phase
II - MARINA CONTRAC-
TORS: INC_
Synopsis of Previous Commission/Council/Committee Action: - -
04-17-89 - Agreement with Main Street, Inc. approved, and
allocation of $2 , 250 , 000 approved.
10-15-90 - Components of Main Street streetscape plan approved.
03-18-91 - Negative Declaration adopted.
05-06-91 - Plans approved and authorization granted to advertise
for bids .
08-05-91 - Resolution No. 5296 adopted awarding a contract for
Phase I for low bid price of $1 , 665 , 550 .
07--06-92 - Authorization granted to prepare contract documents
for Phase II and to advertise for bids .
02-15-93 - Plans approved and authorization granted to advertise
for bids .
04-19-93 - Resolution No. 5360 adopted awarding a contract to
Marina Contractors, Inc. for the low bid price of
$1 , 028, 810 . 00 .
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Recommended Motion:
Adopt resolution.
Rog r a grave t5ir. of P. . /C.E.
cc: K. Henderson
Timothy to ftlrattA, Agencv Administrator
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Contact Person: Roger G. Hardgrave Phone: 5025
Project Area: CCN - Main Street Ward(s) : 1
Staff Report,
Supporting Data Attached: Report of Bids & Resolution
CCN Bond Issue
FUNDING REQUIREMENTS: Amount: $ N/A Source: 650-0105
Budget Authority:
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Commission/Council Notes:
Agenda Item No. :
Commission Meeting
Date: 06/07/1993
0 0
DEPARTMENT OF PUBLIC WORKS
STAFF REPORT
Execution of Agreement to Authorize
Substitution of Securities
Main Street Revitalization Program - Phase II
Section 10263 provides that a Contractor has the option to
deposit securities with an escrow agent as a substitute for the
retention earnings required to be withheld by the City under
terms of the contract. An amount of 10% is normally retained
from the amounts paid to a Contractor, until 30 days after
acceptance of the work.
Marina Contractors, Inc. has given notices by letter dated 5-3-
93 , that they would like for retention earnings to be paid to the
escrow agent. Since the contract price is $1 , 028, 810 , retention
earnings will be about $102 , 881 . The Contractor will, therefore,
have to deposit acceptable securities totaling this amount with
the escrow agent, before the City can pay the retention earnings .
The Bank of America has been designated by Marina Contractors,
Inc. as the escrow agent for this project.
Since substitution of securities is mandated by State law, we
recommend that the Agreement be approved.
5-10-93
r
1 RESOLUTION NO.
E
2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE
CITY OF SAN BERNARDINO AUTHORIZING EXECUTION OF AN ESCROW
3 AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION, WITH MARINA
CONTRACTORS, INC. AND THE BANK OF AMERICA.
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BE IT RESOLVED BY THE COMMUNITY DEVELOPMENT COMMISSION,
5 ACTING ON BEHALF OF THE ECONOMIC DEVELOPMENT AGENCY OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Chairman of the Community Development
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Commission of the City of San Bernardino is hereby authorized and
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directed to execute, on behalf of the Economic Development
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Agency, an Escrow Agreement for Security Deposits in Lieu of
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Retention, with Marina Contractors, Inc. , and the Bank of
11
America, relating to retention earnings for the revitalization of
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Main Street - Phase II, a copy of which is attached hereto,
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marked Exhibit "A" and incorporated herein by reference as fully
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as through set forth at length.
15
SECTION 2 . This Agreement and any amendment or modifica-
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tions thereto shall not take effect or become operative until
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fully signed and executed by the parties and no party shall be
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obligated hereunder until the time of such full execution. No
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oral agreements, amendments, modifications or waivers are
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intended or authorized and shall not be implied from any act or
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course of conduct of any party.
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SECTION 3. This resolution is rescinded if the parties
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to the contract fail to execute it within ninety (90) days of the
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passage of this resolution.
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5-10-93
RESO: AUTHORIZING EXECUTION OF ESCROW AGREEMENT WITH MARINA
CONTRArmORS, INC. AND THE BANK OF "'MERICA.
j I HEREBY CERTIFY that the foregoing resolution was duly
2 adopted by the Community Development Commission of the City of
3 San Bernardino at a meeting thereof, held on the
4 day of 1993, by the following vote, to-wit:
5 Commission Members: AYES NAYS ABSTAIN ABSENT
6 NEGRETE
7 CURLIN
8 HERNANDEZ
9 OBERHELMAN
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11 POPE-LUDLAM
12 MILLER
13
14 Secretary
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The foregoing resolution is hereby approved this
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day of , 1993.
17
18 Tom Minor, Chairman
19 Community Development
Approved as to form Commission of
20 and legal content: City of San Bernardino
21 By
22 Agen Counsel
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ESCROW AGREEMENT FOR
SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into by and between
the Economic Development Agency of the City of San Bernardino,
whose address is 201 North "E" Street, San Bernardino, CA
92401, hereinafter called "Owner," and Marina Contractors, Inc. ,
whose address is P. 0. Box 18410, Irvine, CA 92714, hereinafter
called "Contractor," and the Bank of America, hereinafter called
"Escrow Agent. "
For the consideration hereinafter set forth, the Owner,
Contractor, and Escrow Agent agree as follows:
(1) Pursuant to Section 10263 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 the Main Street Revitalization Program, Phase II,
in accordance with Plan No. 8812, in the amount of
$1,028 , 810 . 00, dated , 1993 (hereinafter
referred to as the "Contract") .
(2) When Contractor deposits the securites 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 Owner ,
and shall designate the Contractor as the beneficial owner.
(3) The Owner shall make progress payments to the Contractor
for such 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. Alternatively, the Owner may make payments directly to
Escrow Agent in the amount of retention for the benefit of the
Owner until such time as the escrow created hereunder is
terminated.
(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 the 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.
EXHIBIT "A"
(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 Owner to
the Escrow Agent that Owner consents -o 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 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 money 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 (4) to (6)
inclusive, of this agreement and the Owner and Contractor shall
hold Escrow Agent harmless from Escrow Agent's release and dis-
bursement 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: On behalf of Contractor:
Dir. of Public Works/City Engr. Contract Administrator
Title Title
Roger G. Hard rave Nancy C. Roach
Name Name
Si a ure Signature
300 No. "D" St. , San Bernardino P. 0. Box 18140, Irvine, CA
Address 92418 Address 92714
On behalf of Escrow Agent:
Title
Name
Signature
Address
At the time the escrow account is opened, Owner and Contactor
shall deliver to Escrow Agent a fully executed counterpart of
this Agreement.
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S"
ESCROW AGREEMENT: SECURITY DEPOSITS IN LIEU OF RETENTION
IN WETNESS WHEREOF, the parties have executed this
Agreement by their proper officers.
CITY OF SAN BERNARDINO
Attest:
Tom Minor, Chairman
Community Development
Commission of City of
San Bernardino
CONTRACTOR
Approved as to form
and legal content:
By
Agency Counsel ESCROW AGENT
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