HomeMy WebLinkAboutTrautwein Construction, Inc.-2006-14 (2) ESCROW AGREEMENT FOR DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement dated is made and entered into by and between the
City of Grand Terrace hereinafter called"Owner"whose address is 22795 Barton Road, Grand
Terrace, CA 92313-5295 and Trautwein Construction, Inc. hereinafter called"Contractor"whose
address is 19792 El Rivino Road,Riverside, CA. 92509 and Vineyard Bank hereinafter called"Escrow
Agent"whose address is 9590 Foothill Blvd., Rancho Cucamonga, CA 91730.
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 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,in the amount of$1,775,661.00, (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
as a substitution for Contract earning, the Escrow Agent shall notify the Owner within ten
(10)calendar days of deposit. The value of the deposit 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. Deposits shall be held in the
name of Trautwein Construction, Inc., 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 Contractor provisions,provided
that the Escrow Agent holds deposits in a Money Market account 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 such time as the escrow
created under this contract is terminated. The Contractor may direct the investment of the
payments into a Money Market account. 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 administrating 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 Money Market account(s)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 Contractor at anytime 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 deposits 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 deposits to 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 deposits and interest
on deposit less escrow fees and charges on the escrow account. The escrow shall be
collected immediately upon disbursement of all monies on deposit and payment of fees and
charges.
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9. Escrow Agent shall rely on the written notifications from the Owner and the Contractor
pursuant to sections(4)to(6)inclusive, of this agreement and the Owner and Contractor
shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the
deposits and interest set forth above.
10. The names of the persons who are authorized to give written notice or receive written
notice on behalf of the Owner and on behalf of the Contractor in connection with the
foregoing, and examples of their respective signatures are as follows:
On behalf of Owner: On behalf of Contractor:
Title: City Manager Title: President
Name: Thomas Schwab Name: Mark Trautwein
Signature: Signature:
Address: 22795 Barton Road Address:19792 E ivino Rd.
City, State,Zip: Grand Terrace, CA 92313 City,State,Zip:River side, CA 92509
On behalf of Escrow Agent: Please forward payments to
Escrow Agent:
Title: SVP, Senior Relationship Manager Title: SVP, Senior Relationship Manger
Major Accounts Major Accounts
Name: Lillia Teran Name: Lill'.,,;_ eran a
ttSignature: 0c 1 Signature 1��. .
Address: Vineyard Bank, o Address: 5455 Riverside
City,State,Zip: Rancho Cucamonga,CA. 91730 City,State,Zip: Chino, CA. 91710
Direct Phone: 909-364-1545
Reference Account: 2-718472
At the time 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.
Owner Contractor
Title: City Manager ('''-��� Title: President
'AJ/
Name: Name: Mark Trautwein
Signature: Thomas Schwab Signature:
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C
ESCROW AGREEMENT FOR DEPOSITS IN LIEU OF RETENTION
This Escrow Agreement dated is made and entered into by and between the
City of Grand Terrace hereinafter called"Owner"whose address is 22795 Barton Road, Grand
Terrace, CA 92313-5295 and Trautwein Construction, Inc. hereinafter called"Contractor"whose
address is 19792 El Rivino Road, Riverside, CA. 92509 and Vineyard Bank hereinafter called "Escrow
Agent"whose address is 9590 Foothill Blvd., Rancho Cucamonga, CA 91730.
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 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,in the amount of$1,775,661.00, (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
as a substitution for Contract earning,the Escrow Agent shall notify the Owner within ten
(10) calendar days of deposit. The value of the deposit 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. Deposits shall be held in the
name of Trautwein Construction, Inc., 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 Contractor provisions,provided
that the Escrow Agent holds deposits in a Money Market account 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 such time as the escrow
created under this contract is terminated. The Contractor may direct the investment of the
payments into a Money Market account. 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 administrating 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 Money Market account(s)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 Contractor at anytime 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 deposits 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 deposits to 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 deposits and interest
on deposit less escrow fees and charges on the escrow account. The escrow shall be
collected immediately upon disbursement of all monies on deposit and payment of fees and
charges.
I
9. Escrow Agent shall rely on the written notifications from the Owner and the Contractor
pursuant to sections(4)to(6)inclusive, of this agreement and the Owner and Contractor
shall hold Escrow Agent harmless from Escrow Agent's release and disbursement of the
deposits and interest set forth above.
10. The names of the persons who are authorized to give written notice or receive written
notice on behalf of the Owner and on behalf of the Contractor in connection with the
foregoing, and examples of their respective signatures are as follows:
On behalf of Owner: On behalf of Contractor:
Title: City Manager Title: President
Name: Thomasm�jjS�� �chwab Name: Mark Trautwein
Signature: ?.,7 `w'1- Signature:
Address: 22795 Barton Road Address: 19792 El Rivino Rd.
City, State, Zip: Grand Terrace. CA 92313 City,State,Zip:Riverside, CA 92509
On behalf of Escrow Agent: Please forward payments to
Escrow Agent:
Title: SVP, Senior Relationship Manager Title: SVP, Senior Relationship Manger
Major Accounts Major Accounts
Name: Lill' eras Name: Lil <t eran
Address: Vineyard Bank, oothill Address: 5455 Riverside r.
City,State,Zip: Rancho Cucamonga,CA. 91730 City,State,Zip: Chino, CA. 91710
Direct Phone: 909-364-1545
Reference Account: 2-718472
At the time 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.
Owner Contractor
Title: City Manager Title: President
Name: Thomas Schwab Name: Mark Trautwein
Signature: �� : ( Signature: t r
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