CONTRACT 5551A Amendment CLOSED Agreement No.5.5 I
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CONTRACT FOR SECURITY DEPOSITS IN LIEU OF RETENTION
[PURSUANT TO PUBLIC CONTRACTS CODE § 223001
This AGREEMENT is entered into this 24th day of July, 2018, by and between the CITY
OF EL SEGUNDO, a general law city and municipal corporation ("CITY"), ALL AMERICAN
,ASPHALT ("CONTRACTOR"), and COMMUNITY BANK ("AGENT").
1. RECITALS. This Agreement is made with reference to the following facts and objectives:
A. On or about June 20, 2018, CITY and CONTRACTOR entered into a public works
contract (Specifications No. PW 18-18) for FY 17/18 Pavement Rehabilitation
("Contract").
B. The Contract allows CITY to withhold a portion of the monies due to
CONTRACTOR to help ensure CONTRACTOR's performance of the Contract.
C. The Contract, in accordance with Public Contracts Code ("PCC") § 22300, allows
CONTRACTOR to substitute securities for the retention amount or establish an
escrow account for monies withheld by CITY.
2. SECURITY DEPOSITS IN LIEU OF RETENTION. In accordance with PCC § 22300,
CONTRACTOR may
A. Deposit securities with AGENT as a substitute for retention earnings required to be
withheld by CITY pursuant to the Contract. When CONTRACTOR deposits the
securities as a substitute for Contract earnings, AGENT will notify CITY within
ten (10) days of the deposit. The market value of the securities at the time of the
substitution will be at least equal to the cash amount then required to be withheld
as retention under the terms of the Contract. Such amount is calculated to be fifty-
two thousand, five hundred, thirty-eight Dollars and fifty Cents ($52,538.50).
Securities will be held in the name of the City of El Segundo, and will designate
the CONTRACTOR as the beneficial owner of such securities; or
B. Upon written notice, request CITY to make payments of the retention earnings
directly to AGENT.
3. PROGRESS PAYMENTS; SECURITIES. CITY will make progress payments to
CONTRACTOR for those funds which otherwise would be withheld from progress payments
pursuant to the Contract provisions, provided that the AGENT holds securities in the form and
amount specified above.
4. RETENTION EARNINGS; ESCROW ACCOUNT. When CITY makes payment of
retention earnings directly to AGENT, AGENT will hold them for the benefit of CONTRACTOR
until the time that the escrow created under this Agreement is terminated. CONTRACTOR may
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