HomeMy WebLinkAboutCJW CONSTRUCTION, INC.A-2023-184
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NOV'0 6 2023
ESCROW AGREEMENT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement is made and entered into by and between the City of Santa Ana,
California, hereinafter called "Owner", and CJW Construction, Inc. whose address
is eoawrent,ff�A� S IU=A®CAsrro] hereinafter called "Contractor", and Royal Business Bank whose
address is 1055 wi,n+. Blvd, niuo, rw A.84, CA 900nhereinafter 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 Construction Contract entered into between the Owner and Contractor
for 18-2681 Centennial Lake Circulation Renovation in the amount of $4,942,135.00 dated April 18th 2023
(hereinafter referred to as the "Contracf). Alternatively, on written request of the Contractor, the Owner
shall make payments of the Retention earnings directly to the escrow agent. When Contractor deposits the
securities as a substitute for Contract earnings, the Escrow Agent shall notify the Owner within ten (10)
days of 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 the Owner, and shall designate the
Contractor as beneficial owner.
2. 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.
3. When the Owner makes payments of Retentions earned directly to the Escrow Agent, the Escrow
Agent shall hold them for the benefit of the Contractor until such time as 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 ofthe parties shall be equally applicable
and binding when the Owner pays the Escrow Agent directly.
4. Contractor 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, 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.
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 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 (7) days' written notice to the Escrow Agent from the Owner of the notice of default under
Article 2.2, Article 9.6 or Article 14, 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
moneys and securities on deposit and payment of fees and charges.
9. 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 Contractor shall hold Escrow Agent
harmless from 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 Contractor in connection with the foregoing, and exemplars of their
respective signatures are as follows:
On behalf of Owner:
Steven A. Mendoza
Acting City Manager
Name
20 Civic Center Plaza, M-29, Santa Ana, CA 92702
Address
On behalf of Contractor:
President
Title
Daniel Duarte
Name
Signature
841 East Washington Avenue, Suite B, Santa Ana, CA 92701
Address
On behalf of Agent:
SVP, Underwriting Manager
Title
Jessica Y
Name
Signature
1055 Wilshire Blvd, Suite 1220, Los Angeles, CA 90019
Address
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 officers on
the date set forth above.
LiLUM"
Steven A. Mendoza
Acting City Manager
CONTRACTOR
President
Title
Daniel Duarte
Name N
Signature Signature
Approved to form:
Jose Montoya
Assistant City Attorney
Recommended for Approval
��o��vioa i.�o�os1 OIL
$ G Kathryn Down, CPA
Executive Director,
Finance and Management Services Agency
Clerk of the Council
Title
Jennifer L. Hall
Name
ignature