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Home My WebLink About941120 RESOLUTION RE: APPROVE ESCROW AGREEMENT AMONG LUNA CONSTRUCTION COMPANY, INC., GULF INSURANCE COMPANY, AND SECURITY ESCROW SERVICES, INC., AND AUTHORIZE CHAIRMAN TO SIGN - BRIDGE 32.5/21B PROJECT WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with an Escrow Agreement among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Weld County Department of Purchasing, and Luna Construction Company, Inc., Gulf Insurance Company, and Security Escrow Service, Inc., for the Bridge 32.5/21 B Project, with terms and conditions being as stated in said agreement, and WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy of which is attached hereto and incorporated herein by reference. NOW,! THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Escrow Agreement among the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Weld County Department of Purchasing, and Luna Construction Company, Inc., Gulf Insurance Company, and Security Escrow Service, Inc., for the Bridge 32.5/21B Project, be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 9th day of November, A.D., 1994. BOARD OF COUNTY COMMISSIONERS ATTEST: Alate WELD COUNTY, COLORADO pgast Weld County Clerk to the Board W. H. Webster, Chairman BY: 1)J1jL cxX /' �1d P.L. L- EXCUSED DATE OF SIGNING JAYE) Deputy C1erk to the Board Dale . Hall, Pro-Tarp App RO D AS TO FOR :' /<1�� y� ct. 4, �c r' ' t Gegcpe E Baxter County Attorney Constance L. Harbert EXCUSED DATE OF SIGNING 11YEI Barbara J. Kirkmeyer 941120 cµ�'� tc6OO33 • ESCROW AGREEMENT In thin agreement on this 26th day of Ocarina 1994 the parties and elements of this agreement as listed are heroin known as the following Principal: Luna Construction Co.,Inc P.O.Box 480562 Denver,CO.80248-0562(303)433-2600 Obligee:Weld County Dept of Purchasing 915 Tenth St. Greeley,CO.80631(303)356-4000 Ex 4221 Owner Weld County Co. Project Bridge 32.5-21B Bid Request No.400264-94 Contract Purchase Order No. 401747 ContractAmount 5116,694.00 EsaowAgency.Security Escrow Service,Inc 5231 S.Quebec St.Englewood CO.80111 303-770-6069 Fax 779-1678 EsanwAgent George J.Carter Surety Gulf Insurance Co. Bank: Key Bank of Colorado,3300E 1st Ave. Denver,CO.80206(303)321-1234 EscrowAccounNumber. 060450003557 Bond No. GE5641.579 1)The Principal and the Obligee have entered into a contract whereby the Principal will perform the following for the Obligee Construct Bridge 3215-21B as per plans and specifications. 2)The Surety requires the Principal and the Escrow Agency to establish an Escrow Account at the Bank for the purposes of receiving and disbursing Contract funds for this Project only. The parties referenced herein have agreed that Security Escrow Service, Inc shall act as that Escrow Agency. Agency.The Obligee shall issue all Contract funds pertaining to this project jointly payable to the Principal and the Escrow The Principal shall inform the Escrow Agency upon receipt of Contract funds and place said funds into the Escrow Account. 4)The Escrow Agent shall be authorized to co-sign checks issued from the Escrow Account. Checks issued Lune this account shall bear the signatures of both the Escrow Agent and the Principal's authorized agent. 5)The Principal shall submit a schedule of values to the Escrow Agent showing all anticipated project expenses. Prior to disbursement of funds issued from the Escrow Aciumtt, the Principal shall submit to the Escrow Agent all pertinent invoices, receipts, delivery tickets,payroll records and all other such requests for payment(or certified copies thereof)and a written summary of all general and administrative expenses related to the Project All expenses associated with the Project as referenced above shall be paid for by Contract funds deposited into and issued from the Escrow Aiwont. The Principal shall be reimbursed for general and administrative and out-of-pocket expenses associated with the Project from Contract fonds issued from the Escrow Accomitupon submission of proof of payment. It is the sole responsibility of the Principal to issue payroll to employees of the Principal and all, taxes associated therewith. The Principal shall provide proof of payment of payroll and associated payroll taxes and will be reimbursed from the Escrow Account thereon, A mechanic's lien waiver,release of claim or restrictive endorsement shall be affixed to the endorsement side of the check. 6) The Principal is solely responsible for the profitability of the Project. Neither the Escrow Agency nor the Escrow Agent shall assume responsibility of the relative success or failure of the Project or completion of the Contract. Neither the Escrow Agency nor the Escrow Agent shall assume responsibility of the past, present or future debts of the Principal or the Obligee. The responsibility of Security Escrow Service,Inc shall be limited to the receiving and disbursement of Contract funds,the monitoring of Contract funds and the monitoring of the physical progress of the Project only. 7) At the completion of the Project,funds remaining in the escrow auowit shall be released to the Principal only after the Principal submits to the Escrow Agent the following 1) proof of payment for all Contract related expenses, 2) associated lien waivers and releases of claim,3)completed Project Status Report Form or Certificate of Substantial Completion Lout the Obligee, and 4)completed Contractor's Affidavit form by the Principal The Escrow Agency thence shall make a reasonable search to ascertain that all - outstanding liens,claims, and/or unpaid Contract related expenses have been fully satisfied. After such reasonable search,remaining Contract funds may be released to the Principal upon the consent of Surety. Upon completion of the Contract by the Principal and upon proof of payment of all outstanding Project expenses the Surety shall authorize the Escrow Agent to release all funds remaining in the Escrow Account to the Principal 8)A fee shall be paid to the Escrow Agency by the Principal in the amount of 51,985.00(One thousand nine hundred eighty-five and 00/100ths). All fees for escrow services will be due upon the signing of this agreement. Should the original Contract Amount change, the final escrow service fee shall be proportionally adjusted at the rate of.25% (one quarter of one percent) of the total Contract Anoint. A rate of$55.00 per hour will be charged for services rendered that lie outside the scope of this agreement as outlined in paragraph 6 of this agreement page 1 of 2 941120 • page 2 of 2 9)It is the sole responsibility of the Principal to fully disrdose.to the Escrow Agent all transactions associated with the Project. 10)The Principal shall at all times indemnify and hold Security Escrow Service, Inc and its agents harmless from and against every expense,lien,claim,judgment,loss,charge,fee,and/or demand for payment arising out of this Project or Contract. 11)This agreement shall not amend,abridge or alter any prior contractual agreement between the Principal and Obligee nor does this agreement amend,abridge or alter the bonding requirements or rights afforded the Obligee or Owner. Nothing in this agreement is.or shall be deemed to be,a waiver of any rights the Obligee or Owner has under the Contract with the Principal 12)Changes to this Escrow Agreement shall be effected by written notice at least 30 days in advance to each of the rmdersierted. 13) The Principal shall be solely responsible to pay fees due the Escrow Agency. Neither the Obligee nor the Owner shall assume responsibility to pay the Escrow Agency with Contract funds amsingfrom the above cited Praia The undersigned do hereby agree to the terms as stated in this Escrow A t. Principal: Luna Construction Co. By Title: Prsident V tine Q_ Surety:Gulf Insurance Co. y \ Title: Attorney-in-Fact son B Escrow Agency:SecuityliscrowService,Inc. Title: President George J. w Agent / ��',, Chairman, Weld County Obligee Weld County CO. By �� nriz� �� n/d �)iitie: Board of omnissioners Aut ed Agent U/14/94 ACKNOWLEDGEMENTS For the Principal State of Colorado, County of Valentine G.Luna being first duly sworn on oath,deposes and states that he is the President of LunaConstructionCo.,Inc.and he is duly authorized to.execute and deliver the foregoing obligation. Subscribed and sworn before me this ,...day of 1994. Notary Public My commission expires. For the Obligee State of Colorado, County of Weld _ W. H. Webster being first duly sworn on oath, deposes and states that hePsho is the Chairman of Weld County CO. andhe$she is duly authorized to execute and deliver the foregoing obligation. Subscribed and sworn before me this 9th day of Nov. p9fh, I Notary Public ;let 0 0t 1- Y U/It 1L J MY commission expires. Q/ ,01 4' X For the Surety . State of Colorado,County of Arapahoe Sharon Bedwell being first duly sworn on oath,deposes and states that she is the Attorney-in-Fact of Gulf Insurance Co. and she is duly authorized to execute and deliver the foregoing obligation. Subscribed and sworn before me this a lS day of o<!eb es- 1994. Notary Public—V.,,a, ,m. A..,,,.-#+ My commission expires. 2-24-cis For theEscrow Agency State of Colorado, County of cur „1..-D George J.Carter being first duly sworn on oath,deposes and states that he is the president of Security Escrow Service,Inc and he is duly authorized to execute and deliver the-foregoing obligation. Subscribed and sworn before Militia as 4 day of ot}e1,. - 199d { Notary Public-3, a1 s , 14r- My commission expires. a-a° -98 9 -41120 Security Escrow Service, Inc. 5231 S. Quebec Street, Suite 200 Englewood, Colorado 80111 Phone 303-770-6069 Security Escrow Service, Inc. is a construction escrow and disbursement agency. Its function is to jointly receive and disburse contract funds for construction projects. This service is valuable to all contracting parties in that it provides risk reduction to owners, suppliers, architects, prime contractors, subcontractors, government agencies and since these projects are usually underwritten for performance and payment, particularly to sureties. Throughout the term of the contract, Security will carefully monitor the physical and financial status of the project and assist in the disbursement of contract funds. The agent will become thoroughly familiar with the project and all parties involved with the execution of the contract. Prior to the release of profit tc the escrow client, funds will be released to only legitimate project expenses. A small percentage of funds may be retained jointly in the joint escrow account until it has been demonstrated that all outstanding contract related expenses have been Fully satisfied. By assuring that contract funds are firstly applied to contract expenses, the escrow function reduces the risk of liens or claims being filed against the project and expedites the payment of profit to the subcontractor. The escrow function thereby secures the financial interests of all parties involved in the project and as a result, may be used by the escrow client to obtain additional credit or bonding capacity. For the successful management of contract funds, Security Escrow requires a joint check agreement between the contracting parties and Security Escrow Service, Inc. Prior to the start of the project, Security Escrow's clients are required to submit a construction schedule, a schedule of values and a list of suppliers, subcontractors and any other party supplying material or services to the project An escrow account will then be opened for the purpose of receiving and disbursing contract funds for the project Upon the submission and review of invoices, payroll records and other pertinent job related expense information, checks will be issued from this account bearing the signatures of both the subcontractor and Security Escrow's escrow agent. Therefore, neither the contractor nor the escrow agent can withdraw funds unilaterally from the joint escrow account. Over the past seven years Security Escrow has established a very successful track record in escrow fund management This has resulted in significantly less claims and greater financial security for all contracting parties on the projects with which it has been affiliated. 9411 ?0 Security Escrow Service, Inc. 5231 S. Quebec Street, Suite 200 Englewood, Colorado 80111 Phone 303-770-6069 October 29;1994 Weld County Attorney GreeleyColorado P.O. Box 1948 Greeley, CO.8063 2 Attr.: Bruce Barker. Please find the enclosed Escrow Agreement for the 32.521 B Bridge Project, Luna Constructiol. contractor I've added section no. 13 which I think addresses your concerns, Bruce. Please sign and return the original to me at the above address. If you have any further questions, please give me a call. Thank you for your efforts on this matter. I'm looking forward to working vv Weld County in the future. Sincere-, . jGeorge .Caner ties., Security Escrow Service, Inc. cc. 6ulf Insurance Co., Sharon Bedwell Luna Construction. Val Luna 941120 Hello