HomeMy WebLinkAboutResolution No. 15-7551-Sign Escrow Agreements for Construction ContractsRESOLUTION NO. 15 -7551
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING THE DIRECTOR OF FINANCE OR DIRECTOR OF PUBLIC
WORKS TO SIGN ESCROW AGREEMENTS FOR CONSTRUCTION
CONTRACTS RETENTION FUNDS PURSUANT TO CALIFORNIA PUBLIC
CONTRACT CODE SECTION 22300
WHEREAS, the City of Downey ( "City ") routinely enters into construction contracts
( "Construction Contracts ") with contractors and material suppliers ( "Contractors ") in connection
with public works projects and other construction projects; and,
WHEREAS, state law generally requires the City to withhold certain percentages of the
funds due to Contractors under the Construction Contracts ( "Retention Funds ") until the project
has been completed and certain other conditions have been met; and,
WHEREAS, in lieu of the City's withholding of such Retention Funds, California Public
Contract Code Section 22300 gives Contractors the right to require the City to pay the Retention
Funds to a state or federally chartered bank located in California, which bank then converts
those Retention Funds to securities and holds them in escrow for the benefit of the City and the
Contractor; and,
WHEREAS, in those cases, the City, contractor, and bank are required to enter into
escrow agreements in the form set forth in subsection (f) of said Section 22300 ( "Escrow
Agreements "); and,
WHEREAS, the Downey City Council desires to authorize the Director of Finance or
Director of Public Works, to execute any and all such Escrow Agreements, provided that those
Escrow Agreements are in the form authorized and required by Public Contract Code Section
22300(f) and are approved by the Downey City Attorney.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES
HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The above recitals are all true and correct and incorporated herein by this
reference.
SECTION 2. Upon the request of any Contractor in connection with any Construction
Contract, the Director of Finance or Director of Public Works is authorized to execute on behalf
of the City one or more Escrow Agreements, subject to the provisions of Sections 3, 4 and 5
hereof.
SECTION 3. Subject to Sections 4 and 5 below, an Escrow Agreement executed
pursuant to Section 2 above shall be binding upon the City if it is signed by the Director of
Finance or Director of Public Works.
SECTION 4. The authority granted to the Director of Finance or Director of Public
Works herein is limited to Escrow Agreements which are substantially similar to the form set
forth in Public Contract Code Section 22300(f).
SECTION 5. The authority granted to the Director of Finance or Director of Public
Works herein is further limited to Escrow Agreements which have been approved by the City
Attorney.
RESOLUTION NO. 15 -7551
PAGE 2
SECTION 6. The City Clerk shall certify to the adoption of this Resolution which shall
be effective upon its adoption.
APPROVED AND ADOPTED this 10th day of March, 2015.
LUIS H. MA QU M y r
ATTEST:
IA M. J ENE CMC
City Clerk
HEREBY CERTIFY that the foregoing Resolution was adopted by the City Council
of the City of Downey at a regular meeting held on the 10th day of March, 2015, by the following
vote, to wit:
AYES:
Council Members:
Ashton, Brossmer, Vasquez, Saab, Mayor Marquez
NOES:
Council Members:
None.
ABSENT:
Council Members:
None.
ABSTAIN:
Council Members;
None.
AD IA M. JIMENEZ, C C
City Clerk