07-0522_PACIFIC HYDROTECH CORPORATION_Escrow AgreementpyPACIFIC HYDROTEARPORATION •
o 314 E. 3RD ST., PERRIS, CA 92570
(951)943-W03 FAX(951)943-1093
May 22, 2007
MAY 2 3 2007
Joe Mankawich
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, Ca 92675
Re: Escrow #3006897
Project: Cooks Reservoir Replacement Project (CIP #769)
Dear Joe.
Please find four original Escrow Agreements and Account Instructions for the above
referenced Escrow, enclosed for signature by Cindy Russell, City Manager. Please
execute all the Escrow Agreements. Retain two executed originals for your records and
return the remaining two originals as follows:
Sunwest Bank
17542 E 17`h Street Suite 200
Tustin, CA 92780-1960
Account #3006897
Escrow #3006897
2 Pacific Hydrotech Corporation
Attn-. Mary White
314 E 3`d Street
Perris, CA 92570
If you should have any questions, please do not hesitate to contact me at (951) 943-8803
or Sunwest Bank at (714) 730-4446
Sincerely,
rZia
Mary White, CFO
CONTRACTORS ENGINEERS FABRICATORS
L7sunwest
Bank
May 16, 2007
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, Ca 92675
Attention: Ms. Cindy Russell, City Manager
Escrow No.: 3006897
17542 East 17th Street • Suite 2W • Tustin. CA 92/80 1960
Project: City of San Juan Capistrano Cooks Reservoir Replacement Project (CIP
#769)
Pacific Hydrotech Corporation
Dear Ms. Russell:
An account has been opened in connection with the above referenced escrow. When
making deposits, please refer to the following information:
MAILING ADDRESS:
Sunwest Bank
17542 E. 17'h Street, Suite #200
Tustin, CA 92780
Account #3006897
Escrow #3006897
WIRE INSTRUCTIONS:
Sunwest Bank
17542 E. 17`x' St.
Tustin, CA 92781
ABA #122228003
Account #3006897
Escrow #3006897
If you have any questions, please, contact me at (714) 730-4464.
Sincerely,
Wally Rodriguez,
Vice President
C�
Escrow #3006897
ESCROW AGREEMENT FOR SECURITY DEPOSITS
IN LIEU OF RETENTION
This Escrow Agreement ("Escrow Agreement") is made and entered into by and between City of
San Juan Capistrano, whose address is 32400 Paseo Adelanto, San Juan Capistrano, CA 92675
(hereinafter called "Owner,") and Pacific Hydrotech Corporation, whose address is 314 E. 3rd
Street, Perris, CA 92570 (hereinafter called "Contractor") and Sunwest Bank whose address is
17542 E. 17' Street, Suite 200, Tustin, CA 92780 (hereinafter called "Escrow Agent").
For the consideration 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 Contract entered into
between the Owner and Contractor for Cooks Reservoir Replacement Project (CIP #769)
dated 3/20/2007 in the amount of $3,080,250.00 (Three million eighty thousand two
hundred fifty and no/100 US dollars, (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 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 Contractor. Securities shall be held in
the name of the Owner 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 Escrow Agent holds securities in the form and amount
specified above.
3) When the Owner makes payments of retention 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 Escrow Agreement is terminated. The Contractor may direct
the investment of the payments into securities. All terms and conditions of this Escrow
Agreement and the rights and responsibilities of the 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 in the securities or the money market accounts held in escrow and all
interest earned on that interest shall be 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) Contractor shall have the right to withdraw all or any part of the principal in the Escrow
Account only by written notice to the 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 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 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 notification from the Owner and the Contractor
pursuant to Sections (5) to (8) inclusive, of this Escrow 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 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 Owner:
City Treasurer
6itrmomeer
Title
Cindy Russell
Name
On behalf of Contractor:
President
Title
J. Kirk Hams
Name
&AA &
ignature & \ Signature
City of San Juan Capistrano
32400 Paseo Adelanto Pacific Hydrotech Corporation
San Juan Capistrano, CA 92675 314 E. 3itl St., Perris, CA 92570
Address Address
On behalf of Escrow Agent:
Vice President
Title
Wally Rodriguez
Name
Signature
Sunwest Bank
17542 E. 17" St., Suite 200,
Tustin CA 92780
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 Escrow Agreement.
C
C,
In Witness Whereof, the parties have executed this Escrow Agreement by their proper officers
on the date first set forth above.
On behalf of On behalf of
City of San Juan Capistrano: Contractor:
City Treasurer
Eit�3►fnneaef President
Title Title
CindRussell J. Kirk Hams
City t remurer President
awv
SiJdature ignature
Pacific Hvdrotech Corp
Business Name
0 0
Escrow #3006897
ESCROW AGREEMENT FOR SECURITY DEPOSITS
IN LIEU OF RETENTION
This Escrow Agreement ("Escrow Agreement') is made and entered into by and between City of
San Juan Capistrano, whose address is 32400 Paseo Adelanto, San Juan Capistrano, CA 92675
(hereinafter called "Owner,") and Pacific Hydrotech Corporation, whose address is 314 E. 3 d
Street, Perris, CA 92570 (hereinafter called "Contractor") and Sunwest Bank whose address is
17542 E. 17d' Street, Suite 200, Tustin, CA 92780 (hereinafter called "Escrow Agent').
For the consideration 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 Contract entered into
between the Owner and Contractor for Cooks Reservoir Replacement Project (CIP #769)
dated 3/20/2007 in the amount of $3,080,250.00 (Three million eighty thousand two
hundred fifty and no/100 US dollars, (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 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 Contractor. Securities shall be held in
the name of the Owner 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 Escrow Agent holds securities in the form and amount
specified above.
3) When the Owner makes payments of retention 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 Escrow Agreement is terminated. The Contractor may direct
the investment of the payments into securities. All terms and conditions of this Escrow
Agreement and the rights and responsibilities of the 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 in the securities or the money market accounts held in escrow and all
interest earned on that interest shall be 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) Contractor shall have the right to withdraw all or any part of the principal in the Escrow
Account only by written notice to the 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.
0 0
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 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 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 notification from the Owner and the Contractor
pursuant to Sections (5) to (8) inclusive, of this Escrow 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 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 Owner: On behalf of Contractor: On behalf of Escrow Agent:
City Treasurer
Eitrmotaw President Vice President
Title Title Title
Cindy Russell I Kirk Hams Wally Rodriguez
Name Name Name
-,ia AlAff
Sidiaiture \ tature Signature
City of San Juan Capistrano Sunwest Bank
32400 Paseo Adelanto Pacific Hydrotech Corporation 17542 E. 17" St., Suite 200,
San Juan Capistrano, CA 92675 314 E. 30 St., Perris, CA 92570 Tustin, CA 92780
Address Address 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 Escrow Agreement.
•
11
In Witness Whereof, the parties have executed this Escrow Agreement by their proper officers
on the date first set forth above.
On behalf of On behalf of
City of San Juan Capistrano: Contractor:
City Treasurer
EibrManatzer President
Title Title
Cindy Russell J. Kirk Hams
2ity himmger City Treasurer President
S9ture ignature
Pacific Hvdrotech Corp
Business Name