2022 Ortiz Enterprises - Project 2011-05 Dune Palms Bridge - American Bus Bank Escrow Agr for Security Deposits in Lieu of RetentionESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into by and between the City of La
Quinta whose address is 78-495 Calle Tampico, La Quinta, California, 92253,
hereinafter called City, and Qv t .L Fait.roe. , hereinafter
called Contractor whose address is 1.„).&241y.,r c rl.• Ck`itz/t and
American Business Bank hereinafter called Escrow Agent whose address is: 400 S. Hope St.
#300; Los Angeles, CA 90071
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 which meet the
requirements set forth in said Section 22300, with Escrow Agent, as a
substitute for retention earnings required to be withheld by City pursuant to
the Construction Contract entered into between City and Contractor for City
Project No. 2011-05, Federal Project No. BRNBIL (537), Dune Palms
Road Bridge Improvements, in the amount of kat, [� 510
Dollars, dated f hereinafter referred to as the
Contract. When 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 City of La Quinta and
shall designate the Contractor as the beneficial owner.
2, City shall make progress payments to 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.
3. Alternatively, City may make payments directly to Escrow Agent in the
amount of retention for the benefit of the City 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 City.
Appendix A Pape 1
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 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 securities in the event of default
by the Contractor. Upon seven days' written notice to the Escrow Agent from
the City of the default, 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 (4) to (6), inclusive, of this Agreement, and
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 marries 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:
fiVflLt Nuty
On Behalf of Contractor:Qvh La6h ' •
Qv
Title Title
Name
CIc.utia m t itt.
Signature
Name
IV) 'IS 0 cA m i° lA 9t,1?:to,A1 c,6,4;11, S.-1, Cz
Address opt °12-i Address 7-(Q j 6,
Appendix A Page 2
On Behalf of Escrow Agent:
FVP & Client Experience Aministrator
Title
400 S Hope St., #300; Los Angeles, CA 90071
Address
At the time the Escrow Account is opened, City 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
officers on the date first set forth above.
CITY:
CONTRACTOR: Ov4►�, E")frRPv4L9 fie'
Title Title
Name
Signature
NK -b-.1. CIA
Name
61 -
Appendix A page 3