04-0921_GATEWAY PACIFIC CONTRACTORS_Escrow Agreement ESCRA AGREEMENT FOR SECURITY 4POSITS
IN LIEU OF RETENTION
This 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", Gateway Pacific Contractors, Inc., whose address is 8055 Freeport
Blvd., Sacramento, Ca. 95832 hereinafter called "Contractor" and First Bank & Trust
hereinafter called "Escrow Agent' whose address is 865 Howe Avenue, Sacramento, CA
95825.
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 Owner and Contractor for Terminal Reservoir No. 3 in the amount of $10,527,276.00
dated September 21, 2p*reinafter 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 or Contract earnings, 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 Owner and Contractor.
Securities shall be held in the name of First Bank & Trust, as Escrow Agent, and shall designate
the Contractor as the beneficial owner.
2) Owner shall make progress payments to 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 payment of 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 hereunder 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) Contractor shall be responsible for paying all fees for the expenses incurred by
Escrow Agent in administering the escrow account (hereinafter 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.
1
SD
y6) Contractor shave the right to withdraw all or anopart 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 to the withdrawal of the amount sought to
be withdrawn by Contractor.
7) Owner shall have a right to draw upon the securities in the event of default by
Contractor. Upon seven (7) days' written notice to the Escrow Agent from Owner of the default,
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 Owner certifying that the Contract is final
and complete, and that 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 fee s 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 Owner and Contractor
pursuant to Sections Five (5) through Eight (8), inclusive, of this Agreement and 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 Owner, on behalf of Contractor and on behalf of Escrow Agent in
connection with the foregoing, and exemplars of their respective signatures are as follows:
On behalf of Owner: On behalf of Contractor:
City of San Juan Capistrano Gateway Pacific Contractors, Inc.
Public Works Director Treasurer
Title Title
Amy Amirani Wayne P. Riley
Name Name
Signature Signatur
32400 Paseo Adelanto
8055 Freeport Blvd.
San Juan Capistrano, CA 92675 Sacramento, CA 95832
Address Address
2
On behalf of Escrow Agent:
First Bank&Trust
Vice President
Title
Jean Howard Schaffer
N e
ture
865 Howe Avenue, Suite 310
Sacramento, CA 95825
Address
At the time the Escrow Account is opened, the Owner and Contractor shall deliver to Escrow
Agent 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.
Owner: Contractor:
By: ;fity of San Juan Capistrano By: Gateway Pacific Contractors, Inc.
David F. Adams Wayne P. Riley
Name Name
City Manager Treasurer
Title Title
Signature Signature
ATTEST: I�
Marg re R. Monahan, City Clerk
APPROVED AS TO FORM:
3
John lvvvCity Attorney
d�au
32400 PASEO ADELANTO
SAN JUAN CAPISTRANO,CA 92675 mtnleMlF4 MEMBERS OF THE CITY COUNCIL
(949)493-1171 Ff111USXFA 1991 SAM ALLEVATO
(949)493-1053 FAX ' 1776 DIANE L.BATHGATE
www.sanjuancapistrano.org ART
JOE SOT
q JOE SOTO
October 13, 2004 DAVID M.SWERDUN
Gateway Pacific Contractors
8055 Freeport Blvd
Sacramento, CA 95832
Dear Sir or Madam:
Enclosed is an executed, escrow agreement related a substitute for retention earnings
withheld for the Terminal Reservoir No. 3 Construction Contract.
Pleasecontact the Project Manager, Peter Salgado, Senior Engineer (949) 443-6366
with any questions concerning the agreement
Yours truly,
4Mi
en, CMC
Citenreement
cc: Peter Salgado, Associate Engineer
Amy Amirani, Public Works Director
Jean Howard Schaffer, Vice President, First Bank & Trust (original agreement)
San Juan Capistrano: Preserving the Past to Enhance the Future
THIS IS NOT A LIEN. THIS NOTICE IS GIVEN CALIFORNIA
PURSUANT TO SECTIONS 3097 AND 3098, PRELIMINARY
CALIFORNIA CIVIL CODE. THIS IS NOT NOTICE
A REFLECTION ON THE INTEGRITY OF 11111111111111111111111
ANY CONTRACTOR OR SUBCONTRACTOR.
148275 7108 1800 8311 4827 5024 F28586
YOU ARE HEREBY NOTIFIED THAT...
UNITED RENTALS NORTHWEST INC 7068
OWNER or Reputed Owner(on private work) 02 2301 DUPONT DR#400
or PUBLIC AGENCY(on public work) IRVINE CA 92612
949443-6366
CITY OF SAN JUAN CAPISTRANO
VALLEY WATER DISTRICT
32400 PASEO ADELAN"TO has fumished or will furnish labor,services,equipment or
SAN JUAN CAPISTRANO CA 92675 materials of the following general description:
RENTAL EQUIPMENT
CONSTRUCTION LENDER or
Reputed Construction Lender,if any. for the building,structure or other work of improvement
located at
NONE/BOND#104328759/BOND CO: "CAPISTRANO TERMINAL RESERVOIR#3"
TRAVELERS CASUALTY&SURETY CO 26861 MISSION HILLS DR
OF AMERICA SAN JUAN CAPISTRANO CA
ONE TOWER SQUARE JOB/PO#04-111-562
HARTFORD CT 06183
ORIGINAL CONTRACTOR or 03
Reputed Contractor,if any.
916-6654100 F An estimate of the total price of the labor,services,
GATEWAY PACIFIC CONTRACTORS INC equipment or materials furnished or to be furnished is:
8055 FREEPORT BLVD $4,500.00
SACRAMENTO CA 95832
Trust Funds to which Supplemental Fringe Benefits
are payable:
SUB CONTRACTOR/person or firm who contracted for
the purchase of such labor,services,equipment or materials is:
949-367-1941
LT EXCAVATING INC
27601 FORBES RD#53
LAGUNA NIGUEL CA 92677
Cl)
m
L
C 7
OTHER INFORMATION,
D
BY: l 1(1L&IAJtYY--Q Agent Dated: 06/15/2006
(Signature) (Title)
I L
NOTICE TO PROPERTY OWNER
IF BILLS ARE NOT PAID IN FULL FOR THE LABOR,SERVICES, EQUIPMENT,OR MATERIALS FURNISHED OR TO BE FURNISHED,A
MECHANIC'S LIEN LEADING TO THE LOSS,THROUGH COURT FORECLOSURE PROCEEDINGS,OF ALL OR PART OF YOUR PROPERTY
BEING SO IMPROVED MAY BE PLACED AGAINST THE PROPERTY EVEN THOUGH YOU HAVE PAID YOUR CONTRACTOR IN FULL.
YOU MAY WISH TO PROTECT YOURSELF AGAINST THIS CONSEQUENCE BY(1)REQUIRING YOUR CONTRACTOR TO FURNISH A
SIGNED RELEASE BY THE PERSON OR FIRM GIVING YOU THIS NOTICE BEFORE MAKING PAYMENT TO YOUR CONTRACTOR OR(2)
ANY OTHER METHOD OR DEVICE THAT IS APPROPRIATE UNDER THE CIRCUMSTANCES.
OTHER THAN RESIDENTIAL HOMEOWNERS OF DWELLINGS CONTAINING FEWER THAN FIVE UNITS,PRIVATE PROJECT OWNERS
MUST NOTIFY THE ORIGINAL CONTRACTOR AND ANY LIEN CLAIMANT WHO HAS PROVIDED THE OWNER WITH A PRELIMINARY
20-DAY LIEN NOTICE IN ACCORDANCE WITH SECTION 3097 OF THE CIVIL CODE THAT A NOTICE OF COMPLETION OR NOTICE OF
CESSATION HAS BEEN RECORDED WITHIN 10 DAYS OF ITS RECORDATION. NOTICE SHALL BE BY REGISTERED MAIL,CERTIFIED
MAIL,OR FIRST-CLASS MAIL,EVIDENCED BY A CERTIFICATE OF MAILING. FAILURE TO NOTIFY WILL EXTEND THE DEADLINES
TO RECORD A LIEN.
PROOF OF SERVICE BY MAIL AFFIDAVIT
I,Cindee Wood,declare that I served copies of the above PRELIMINARY 20-DAY NOTICE(PRIVATE WORK/PUBLIC WORK)by First Class
Certified or Registered Mail service,postage prepaid,addressed to each of the parties at the addresses shown above on 06/15/2006. 1 declare
under penalty of perjury under the laws of the State of California that the foregoing is true and correct.r
BY: C alld&L1jMYY Cindee Wood, Agent
Executed at SAN DIEGO,California on 06/15/2006.
This form prepared by CAPRE*C 4345 Murphy Canyon Rd Suite 200,San Diego CA 921 W
854-211000,,FAX(858)560-7626