HomeMy Public PortalAboutAgreement_2012-12-10_Los Angeles Engineer Inc_Escrow Agreement in Lieu of RetentionESCROW NO.: 2041
ACCOUNT NO.: 14-911550
I:SC'ROW AGRFE.MENT FOR
Sl-Ci1R1TY DEPOSITS IN LIEU OF RE`1ENI'ION
THIS ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RE I"LNTION (hereinalter
called the "Agreement") is made and entered into on this 10th day of December, 2012, by and between City
of Temple City, whose address is 9701 Las Tunas Drive. Temple City (hereinafter called "Owner"), Los
Angeles Engineering, Inc., whose address is 633 N. Barranca Avenue. Covina, CA 91723 (hereinafter
called "Contractor"), and Community Bank, a California banking corporation, whose address is 505 E.
Colorado Boulevard, Pasadena. California 91101 (hereinafter called "E:scrow Agent").
WHEREAS, the parties desire to establish an escrow account with Escrow Agent (the "E'scrow
Account") pursuant to the provisions of Section 22300 of the Califarn�a Public Contract Code.
NOW. THERE TOR) , for the consideration hereinafter set forth, the Owner, Contractor, and EscrovV
Agent agree as follows:
1. Pursuant to Section 22300 of the Public Contract Code of the State of California, the
Contractor has the option to deposit securities with Escrow Agent as a substitute for retention earnings
required to be withheld by the Owner pursuant to the Construction Contract entered into between the Owner
and the Contractor, for Enhancements & Beautification Project in the amount of 515,773,914.50
(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
ten (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 the Contractor. Securities shall be held in the name of City of Temple City, 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 L"•scrow
Agent holds securities in the forni and amount specified above.
3. When the Owner makes payment of the 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 Agreement 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. The Contractor shall be responsible for paying all fees for the expenses incurred by the Escrow
Agent in administering the Escrow Account and all expenses of the Owner. These expenses and payment
terms shall be determined by the Owner, the Contractor and the Escrow Agent.
CnCR-Agrnnni
5. The interest earned on the securities or the money market accounts held in escrow and all
interest earned on that interest shall he for the sole account of the Contractor and shall be subject to
withdrawal by the Contractor at any time and from time to time without notice to the Owner.
6. 'clic Contractor shall have the right to withdraw all or any part of the principal in the Escro",
Account only by written notice to the Escrow Agent accompanied by written authorization from the Owner to
the EscroNN Agent that the Owner consents to the withdrawal of the amount sought to be withdrawn by the
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.
9. 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, the lascrow Agent shall release to the 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. The 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 the Contractor shall hold the
F'scrow Arent harmless from the 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 Owner and on behalf of the Contractor in connection with the foregoing, and exemplars of
their respective signatures are as follows:
On behalf of the Owner:
City of Temple City
Name�r•l- L�l L . H • - —
'title: C M
Signature:
1Z-1—► IZ
Address: 9701 Las Tunas Drive
`temple City, CA 91780
C B R-Agrntnl
On behali'of the Contractor:
Los Angeles Engineering, Inc.
Name: Angus O'Brien
`title: President
Signature __._
Address: 633 N. Barranca Ave.
Covina, Ca 91723
On behalf of the f .~crow Agent:
COMMUNITY BANK
Name: Leslie K. Buhl
Title: Vice P esident
Signatu
Addres 05 . Colorado Blvd.
Pasadena, Ca 91101
(6 26) 568-22 32
At the timc the escrow Account is opened. the Owner and the Contractor shall deliver to the
Fscrow Agent a fully executed original of this Agreement.
IN WITNESS WI IFI FO1'. the Parties have executed this Agreement by their proper
officers on the date first set forth above.
OWNER. CONTRACTOR:
City of Temple City Los Angeles Engineering, Inc.
'title: �( 'I"� Cl� C LLL c . "title: President
Name: - - —`-� � k I - u� _��. Naine: Angus O'Brien
Signature: U •'_" =�J W ✓'c`
T Signature: �,
03CR-Agmint 3