HomeMy WebLinkAboutAGENDA REPORT 2025 1105 CC REG ITEM 10DCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of November 5, 2025
ACTION APPROVED STAFF
RECOMMENDATION.
BY A. Hurtado.
D. Consider Escrow Agreement for Deposits in Lieu of Retention with Citizens
Business Bank and AMG & Associates, Inc. Staff Recommendation: Approve
Escrow Agreement for Deposits in Lieu of Retention with Citizens Business Bank
and AMG & Associates, Inc., and authorize the City Manager to execute the
Agreement, subject to final language approval of the City Manager. (Staff: Jessica
Sandifer, Deputy Parks and Recreation Director)
Item: 10.D.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Jessica Sandifer, Deputy Parks and Recreation Director
DATE: 11/05/2025 Regular Meeting
SUBJECT: Consider Escrow Agreement for Deposits in Lieu of Retention with
Citizens Business Bank and AMG & Associates, Inc.
BACKGROUND
On August 5, 2025, the City Council approved the award of the bid for the New Moorpark
City Library to AMG & Associates, Inc. (AMG) after obtaining competitive bids pursuant
to the requirements of the Public Contract Code.
Typically, when progress payments are made to the contractor, the City will withhold 5%
of the payments until completion of the project, at which point, the contractor would be
paid the 5%. Public Contract Code Section 22300 allows, at the request and expense of
the contractor, an escrow account to be set up where the contractor can deposit securities
of their own, equaling the 5% retention or the City can deposit the 5% retention payment
with the escrow company. For a high cost, long duration project this allows the contractor
to earn interest on the retention withheld, rather than it sitting in a deposit account with
the City. The funds in the escrow account cannot be released to the Contractor without
the City’s approval.
DISCUSSION
AMG has requested that the City be a party to an escrow arrangement as described
above, and to deposit the withheld retention with Citizens Business Bank. An Escrow
Agreement has been drafted by the bank, and reviewed by the City Attorney. The City
Attorney has confirmed that the form of the Agreement is consistent with the statute in
the Public Contract Code. Due to the fact that the amount of money to be withheld for
the Moorpark City Library project exceeds the City Manager’s signing authority, the City
Council is being requested to approve the agreement and authorize the City Manager to
sign the agreement.
Item: 10.D.
116
Honorable City Council
11/05/2025 Regular Meeting
Page 2
ENVIRONMENTAL DETERMINATION
This action is exempt from the California Environmental Quality Act (CEQA) as it does
not constitute a project, as defined by Section 15378 of the State CEQA Guidelines.
Therefore, no environmental review is required.
FISCAL IMPACT
There is no fiscal impact associated with this action. The Contractor will pay all fees
associated with opening and maintaining the escrow account throughout the duration of
the project and until the withheld retention funds can be released.
COUNCIL GOAL COMPLIANCE
This action is consistent with City Council Goal 1, Objective 1.2: “Construct New Moorpark
Library.”
STAFF RECOMMENDATION
Approve Escrow Agreement for Deposits in Lieu of Retention with Citizens Business Bank
and AMG & Associates, Inc., and authorize the City Manager to execute the Agreement,
subject to final language approval of the City Manager.
Attachment 1: Escrow Agreement Request from AMG & Associates, Inc.
Attachment 2: Escrow Agreement for Deposits in Lieu of Retention with Citizens
Business Bank
117
ATTACHMENT 1
__________ AM11 .. ;,,_ ________ _
Jessica Sandifer
City of Moorpark
323 Science Dr.
Moorpark, CA 93021
Jessica,
Please accept this letter as an official notification/authorization to have the City of
Moorpark directly deposit the retention withholding. Please withhold the proper
retention from AMG's monthly progress payments for the Library Project and
deposit directly to the escrow account held at Citizens Business Bank.
Please reach out if you have any additional questions.
Sincerely,
Tony Tumasone
Vice President Finance
26535 SUM MI T CIRC LE
S ANTA CLARITA, CA 91350
CLSB LIC. No. 881 824
WWW.AMGASSOC IATES I NC.COM
T: 661.251.7401
F : 661 .251 .7405 118
ATTACHMENT 2
1111111111111111
7401 -CITIZENS
-BUSINESS BANK
/ , Estrnon ~gueement fou Deposits in Mien of1 Retention
This Escrow Agreement dated 08/25/2025 is made and entered into by and between the _____ _
CITY OF MOO RP ARK hereinafter called "Owner" whose
address is 323 Science Dr., Moorpark, CA 93021 and
AMO & ASSOCIATES INC hereinafter called "Contractor" whose address is
26535 Summit Circle Santa Clarita, CA 91350 and Citizens Business Bank
hereinafter called "Escrow Agent" whose address is 505 E Colorado Blvd, Pasadena CA 91101
For the consideration hereinafter set forth, the Owner, Contractor and Escrow Agent agree as follows:
I. Pursuant to section 22300 or 10263 of the Public Contract Code of the State of California (with
section 22300 applying to public entities generally, and 10263 applying to state public agencies),
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 the Owner and Contractor for, _N_e=w~M=o=o_rp=a=r_k~C=i=ty=L-=ib~ra_ry..,_ __________ _
___________________________________ in
the amount of _______________ ~ (hereinafter referred to as the "Contract").
Alternatively, on written request of the Contractor, the Owner shall make payments of the retention
earnings directly to Escrow Agent. When Contractor deposits the securities as a substitution for
Contract earnings, Escrow Agent shall notify the Owner within ten (10) calendar days of 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 the Owner and
Contractor. Securities shall be held in the name of_O_wn_e_r ______________ _
________________ 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 Contract provisions, provided that Escrow Agent
holds securities in the form and amount specified above.
3. When the Owner makes payments of retention earned directly to Escrow Agent, 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 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 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 securities or 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 any time and from time to time without notices 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 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 securities in the event of default by the Contractor.
Upon seven (7) days written notice to Escrow Agent from the 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 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 securities and interest on deposit less escrow fees and
charges on the escrow account. The escrow shall be closed immediately upon disbursement of all
monies and securities and payment of fees and charges.
9. Escrow Agent shall rely on the written notifications from the Owner and the Contractor pursuant to
Sections (5) to (8) inclusive, of this agreement and the Owner and Contractor shall hold Escrow
Agent harmless from Escrow Agent's release and disbursement of the securities and interest set forth
above.
AG-027 10/16/2020 Page 1 of2
119
-CITIZENS
-BUSINESS BANK
" " " : " IJJsero:n ,,;\\g1mement for Denosits in IBieu of Retention
10. The names of the persons who are authorized to give written notice or receive written notice on behalf
of the Owner and on behalfofthe Contractor in connection with the foregoing, and exemplars of their
respective signatures are as follows:
On behalf of Owner:
Title: _______________ _
Name: ______________ _
Signature: _____________ _
Address: _____________ _
On behalf of Escrow Agent:
Address: 505 E Colorado Blvd
City, State, Zip: Pasadena, CA, 91101
On behalf of Contractor:
Title: Executive Vice President
Signature:
City, State, Zip: Santa Clarita, CA 91350
Please forward payments to Escrow Agent:
Title: VP Sales & Service Manager SBG
Name: Claudia A Cuadra
Address: 505 E Colorado Blvd
City, State, Zip: Pasadena, CA, 91101
Direct Phone: 626-568-2096
Reference Account: 6741162375 Escrow 2852
At the time Escrow Account is opened, the Owner and Contractor shall deliver to 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: ______________ _ Title: Executive Vice President
Name: _____________ _
Signature: _____________ _
AG-027 10/16/2020 Page 2 of2 120