Administrative
Report
H.6., File # 22-3653 Meeting Date: 2/1/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE ESCROW AGREEMENT NO. 1982 WITH TORO ENTERPRISES, INC. TO SECURE THE ALTA VISTA SEWER PUMP STATION CONSTRUCTION PROJECT’S PROGRESS PAYMENT
RETENTION THROUGH PROJECT COMPLETION AND ACCEPTANCE
EXECUTIVE SUMMARY
On November 2, 2021 the City Council awarded, Toro Enterprises, Inc., a public works contract in the amount of $3,044,650 to complete the Alta Vista Sewer Pump Station Project, Job No 50300.
Construction will begin in February and is estimated to be complete by January 2023.
As part of the contract payout, the City typically retains 5% of the monthly progress payments until the end of the work. Section 22300 of the Public Contract Code provides contractors the option of having retention funds deposited into a joint escrow account rather than being retained by the administering public agency. Toro Enterprises, Inc., has requested the contract retention payments be placed in escrow pursuant to Escrow Agreement No. 1982, with Banner Bank, a state Chartered Bank, named as the Escrow Agent. The Escrow Agreement gives the City the right to draw upon the funds in escrow in the event of default by the Contractor. Upon the City's written notice that the Contract is final and complete, the escrow will be closed and all funds held therein less the escrow fees and charges will be returned to the Contractor. The Escrow Agreement requires the Contractor to pay all fees and costs incurred by the Escrow Agent. There is no additional project cost to the City to deposit the retention funds in the escrow account.
COORDINATION
The City Attorney’s Office approved the Escrow Agreement as to form.
FISCAL IMPACT
There is no cost to the City to hold the retention payment in the escrow account.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENT
Escrow Agreement No. 1982-Toro Enterprises, Inc.