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Home My WebLink AboutEscrow Agreement - Larson Danielson Construction - Howard Park Redevelopment Project1316 COUNTY -CITY BUILDING 227 w.JEFFERSON BOULEVARD SOUTH BEND_ INDIANA 46601-1 930 1865 December 11, 2018 Patti O'Brien Larson -Danielson Construction Co., Inc. 302 Tyler Street LaPorte, IN 46350 RE: Escrow Agreement Dear Ms. O'Brien: PHONE 574/235-9251 FAx 574/235-9171 The Board of Public Works, at its meeting held on December 11, 2018, approved the above referenced escrow agreement for the Howard Park Redevelopment project. Enclosed please find the original of the agreement for your signature. Please sign and return the original agreement to our office, along with 1" Source Bank's signature, and retain a copy for your records. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, P Linda M. Martin, Clerk Enclosure GARY A. GILOT SUZANNA M. FRITZBERG ELIZABETH A. MARADIK JAMES A. MUELLER THERESE J. DORAU ESCROW AGREEMENT This Agreement is entered into this 11 day of December , 2018 , by and between City of South Bend Board of Public Works ("Owner"), .arson -Danielson Construction Co Inc ("Contractor"), and Ist Source !Bank N ("Escrow"), witnesseth: WHEREAS, Owner and Contractor entered into a contract providing for the construction by the Contractor of a public building, work or improvement subject to the provisions of IC 36-1-12-14; and WHEREAS, said construction contract provides that portions of payments by Owner to Contractor shall be retained (herein called "Retainage") by Owner, and placed in an Escrow Account; NOW, THEREFORE, it is agreed as follows: 1. Owner shall deposit with Escrow all sums retained from payments due to Contractor under the Contract between Owner and Contractor as sums are retained from time to time during the administration of the Contract and performance of services and furnishing of materials by Contractor. 2. Escrow shall invest all escrowed principal in such obligations and investments as may be selected by Escrow in its sole discretion, provided that said obligations and investments do not reduce the escrowed principal. Escrow may in its sole discretion commingle the escrowed funds with funds held pursuant to other escrow agreements. 3. The Escrow Agent shall hold the escrowed principal until receipt of written authorization from the Owner specifying the portions of the escrowed funds to be released from the Escrow. The Escrow Agent shall consider it a direction provided a written copy of the Contractor's claim is attached, at which time the remittance of the designated portion of escrowed principal will be released. 4. In event of controversy, the Escrow Agent shall pay over the sum held by it hereunder as follows: a.) Payment by Joint Authorization: Upon receipt of a joint written authorization executed by the Contractor and the Owner, the Escrow Agent will make distribution in accordance with such written direction. b.) Payment by Owner: Upon receipt from Owner of a copy of the architect's certificate pursuant to Article 14 of the General Conditions showing that the Owner has terminated the employment of the Contractor, the Escrow Agent shall pay to the Contractor such amount, if any, as the Owner directs and shall pay the balance to the Owner. c.) Upon receipt of a certified copy of a court order receiving the disputed claim or directing a specific distribution of all or any portion of said funds, Escrow Agent will make distribution in accordance with such order. *** Execute in triplicate — One copy with original signatures going to each of the three parties noted *** Page 1 of 3 5. The Escrow Agent shall pay interest on the net Retainage on deposit at the going rate or rates described in Paragraph 2 above, if any. Interest income to the Contractor shall be retained in the Escrow and paid to the Contractor with the final distribution. 6. This Escrow Agreement shall constitute the direction from the Owner and the Contractor to the Escrow Agent of the manner in which the Retainage is to be paid by the Escrow Agent pursuant to I.C. 36-1-12-14. 7. This Escrow Agreement and anything done or performed hereunder by either the Owner or Contractor shall not be construed to prejudice or limit the claims which either party may have against the other arising out of the aforementioned construction contract. Nothing herein contained shall constitute a limitation of any obligation of the parties to this agreement. 8. Escrow shall deduct, before any payment from the amounts received hereunder, its fee as Escrow Agent, which fee shall be payable from the income earned by the Retainage and which escrow fee shall not exceed fifty percent (50%) of the escrowed income of the escrow account. 9. Owner and Contractor agree to indemnify and hold escrow harmless against any liability, claims, actions or causes of action, including but not limited to the payment of attorney's fees of Escrow and affiliated costs, and the payment of any judgements which may be entered against Escrow and which may arise out of this Agreement other than claims against Escrow that it improperly invested the sums held in escrow or violated the terms of this Agreement. 10. Written accountings of the retainage deposited in the escrow and all earnings thereon shall be made to Owner and Contractor monthly. 11. Distribution from this escrow shall be requested in accordance with the Contract between Owner and Contractor regarding the project for which the retainage is withheld and deposited in this escrow. 12. This Agreement shall bind and inure to the benefit of the parties hereto, their successors in interest and assigns. 13. This instrument constitutes the entire agreement between the parties regarding the duties of Escrow with respect to the investment and payment of escrow funds; Escrow is not liable to Owner or Contractor for any loss or damages not caused by its own negligence or willful misconduct. OWNER: CITY OF SOUTH BEND, INDIANA BOARD OF PUBLIC WORKS Address: 227 W. Jefferson St, Suite 1316 South Bend, IN 46601 b By: e,. Gary,.1 Presidenj *** Execute in triplicate — One copy with original signatures going to each of the three parties noted *** Page 2 of 3 Escrow Account #: d.....Eliza s.• t a md Rk.M em a.. 1, Suzanna Fritzberg MeMbgr James A.Mueller, Member CONTRACTOR: LARSON-DANIELSON CONSTRUCTION CO, INC. By: Patti L. O'Brien, CFO Address: 302 Tyler Street LaPorte, IN 46350 ESCROW: 1ST SOURCE BANK, NA By: James R. Seitz, President Address: P.O. Box 1602 100 N. Michigan Street South Bend, IN 46634 Owner Project #: 117-047-B Larson-Danielson's Project #: 56445 Project Name & Location: Howard Park Redevelopment 219 South Saint Louis Blvd. South Bend, Indiana *** Execute in triplicate — One copy with original signatures going to each of the three parties noted *** Page 3 of 3 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date Name 12/11 /2018 Ken Glowacki Department VPA BPW Date Phone Extension mUMMUMIMMmm mmmm� m m m m aim wa�mmwww�u� ...w.WW _ ............_....�. ..W. ._....... ... _..�.�.� ....�.�.. Prior to Submittal Board _...... . Required P_ ttal tooa � ......._.. _ ....._. _..._.._.._._.....�. Legal Attorney Name Clara McDaniels Controller review is required for all Contracts $5,000.00 or more Controller and greater than one year in length per the City Purchasing Policy Purchasing Check W ck the p Agreement Professional Services [J Bid Opening El Quote Opening E] Chg Order No. [� Ease./Encroach. Other: Company or Vendor Name New Vendor MBE/WBE Contractor Project Name Project Number Funding Source Account No. Amount Terms of Contract Purpose/Description )ro r�iate Item Type — El Contract El Amendment Bid Award ❑ Quote Award ❑ C/O & PCA No. — Traffic Control 'for All Submissions Proposal ❑ Req. to Advertise red Information PCA Resolution Claim Addendum ❑ Title Sheet Larson Danielson construction Co., Inc. ❑ Yes If Yes, Approved by Purchasing ❑ No ❑ MBE Completed E-Verify Form Attached El Yes ❑ WBE ❑ No Howard Park Reconstruction 1 st Source Bank Escrow Agreement for HP Reconstruction pro lect For Change Orders O Amount of Increase Decrease Previous Amount $ Current Percent of Change: New Amount $ Total Percent of Change: Time Extension: Dispersal After Approval Copy Original ❑ 0 El