HomeMy WebLinkAbout2016 CON California Statewide Communities Development Authority (CSCDA) Various Administrators - Open PACE ProgramsNOTE TO FILE
07-15-2019
IN THE MATTER OF: The 2016 Cleanfund Commercial Pace Capital dba
Clean Fund Agreement. Please note the following:
NO FULLY EXECUTED ORIGINAL AGREEMENT
WAS FILED WITH THE OFFICE OF THE CITY CLERK.
ORIGINATING DEPARTMENT:
NTF
CDC X Housing & Economic Development
City Attorney Human Resources
City Manager MIS
Community Svcs. Planning
Engineering Police
Finance Public Works
Fire
NOTE TO FILE
07-15-2019
IN THE MATTER OF: The 2016 Renewable Funding Agreement. Please note
the following:
NO FULLY EXECUTED ORIGINAL AGREEMENT
WAS FILED WITH THE OFFICE OF THE CITY CLERK.
ORIGINATING DEPARTMENT:
NTF
CDC X Housing & Economic Development
City Attorney Human Resources
City Manager MIS
Community Svcs. Planning
Engineering _ Police
Finance Public Works
Fire
INDEMNIFICATION AND INSURANCE AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
PACE FUNDING GROUP, LLC
d.b.a. "PACE Funding"
This Indemnification and Insurance Agreement ("Agreement") is entered into by and
between the City of National City, a municipal corporation ("City") and PACE Funding Group,
LLC, a California limited liability company, d.b.a. "PACE Funding" ("Administrator"), the
administrator of the California Statewide Communities Development Authority's PACE program
"CSCDA Open PACE Program" or "Program".
RECITALS
WHEREAS, the California Statewide Communities Development Authority
("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of
Division 7, Title 1 of the California Government Code (Section 6500 et. seq.) and the Joint
Exercise of Powers Agreement entered into on June 1, 1988, as amended from time to time
("Authority JPA"); and
WHEREAS, the Authority has established a property -assessed clean energy ("PACE")
Program ("Authority PACE Program") to provide for the financing of renewable energy
generation, energy and water efficiency improvements, seismic strengthening improvements,
electric vehicle charging infrastructure and such other infrastructure as may be authorized by law
from time to time (the "Improvements") pursuant to Chapter 29 of Division 7 of the California
Streets and Highways Code ("Chapter 29"), within counties and cities throughout the State of
California that elect to participate in the Program; and
WHEREAS, the City Council of the City of National City has approved the City joining
the Authority, has consented to the inclusion in the CSCDA Open PACE Program of all of the
properties in the jurisdictional boundaries of the City and to the acquisition, construction, and
installation of the Improvements, upon the request by and voluntary agreement of owners of such
properties, in compliance with the laws, rules and regulations applicable to the Program; and
WHEREAS, the Authority and the Administrator have entered into a Third Party
Administration Agreement, dated September 10, 2015 , in which the Administrator agrees to
administer the CSCDA Open PACE Program; and
WHEREAS, the Administrator agrees to indemnify the City and to provide insurance in
connection with the administration of the CSCDA Open PACE Program in the City of National
City.
NOW, THERFORE, in consideration of the Recitals above and of the City's agreement
to join the Authority and to participate in the CSCDA Open PACE Program, the parties agree as
follows:
1. Agreement to Indemnify. The Administrator agrees to defend, indemnify, and
hold harmless the City, its officers, elected or appointed officials, employees, agents, and
volunteers from and against any and all claims, damages, losses, expenses, fines, penalties,
judgments, demands, and defense costs (including, without limitation, actual, direct, out-of-
pocket costs and expenses, and amounts paid in compromise or settlement and reasonable
outside legal fees arising from litigation of every nature or liability of any kind or nature
including civil, criminal, administrative or investigative) arising out of or in connection with the
CSCDA Open PACE Program, except such loss or damage which was caused by the sole
negligence or willful misconduct of the City. The Administrator will conduct all defenses at its
sole cost and expense, and the City shall reasonably approve selection of the Administrator's
counsel. This indemnity shall apply to all claims and liability regardless of whether any
insurance policies of the Administrator, its affiliates or any other parties are applicable thereto.
The policy limits of any insurance of the Administrator, its affiliates or other parties are not a
limitation upon the obligation of the Administrator, including without limitation, the amount of
indemnification to be provided by the Administrator. The provisions of this section shall survive
the termination of this Agreement.
2. Insurance. The Administrator agrees, at no cost or expense to the City, at all
times during the administration of the CSCDA Open PACE Program, to maintain the insurance
coverage set forth in Exhibit "A" to this Agreement.
3. Amendment/Interpretation of this Agreement. This Agreement, including all
Exhibits attached hereto, represents the entire understanding of the parties as to those matters
contained herein. No prior oral or written understanding shall be of any force or effect with
respect to those matters covered hereunder. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by both parties hereto. This Agreement
shall not be interpreted for or against any party by reason of the fact that such party may have
drafted this Agreement or any of its provisions.
4. Section Headings. Section headings in this Agreement are included for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.
5. Waiver. No waiver of any of the provisions of this Agreement shall be binding
unless in the form of a writing signed by the party against whom enforcement is sought, and no
such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver. Except as specifically provided herein, no
Indemnification Insurance Agreement
2 City of National City and
2016 Pace Funding Group, LLC
failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a
waiver thereof.
6. Severability and Governing Law. If any provision or portion thereof of this
Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted
by law. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California applicable to contracts made and to be performed in
California.
7. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt, or mailed certified or registered mail and addressed as follows:
If to the Administrator:
If to the City:
obey+ Giles
rot M embe,r
Race, Fw c ►vis , Lt-G
"1 SD U n ► eirs Ave.. , Sle 24O
L.os 610 vs, CA g5o32_
Alfredo Ybarra
Director, Housing, Grants, and Asset Management
City of National City
1243 National City Boulevard
National City, CA 91950-4301
8. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original, which together shall constitute the same instrument.
9. Effective Date. This Agreement will be effective as of the date of the signature of
City's representative as indicated below in the City's signature block.
Indemnification Insurance Agreement 3 City of National City and
2016 Pace Funding Group, LLC
IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date
below.
CITY
CITY OF NATIONAL CITY
By:
Date:
on Morrison, Mayor
APPROVED AS TO FORM:
Nicole Pedone
Acting City Attorney
ADMINISTRATOR
PACE FUNDING GROUP, LLC
d.b.a. "PACE Funding"
By:
Za,e-
Name Title
Date: F/P, /4
Indemnification Insurance Agreement 4 City of National City and
2016 Pace Funding Group, LLC
INSURANCE
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
EXHIBIT A
1. The coverage provided by Insurance Services Office Commercial General
Liability coverage ("occurrence") Form Number CG 0001; and
2. The coverage provided by Insurance Services Office Form Number CA 0001
covering Automobile Liability. Coverage shall be included for all owned, non -
owned and hired automobiles; and
3. Workers' Compensation insurance as required by the California Labor Code and
Employers Liability insurance; and
4. Professional Liability Errors & Omissions for all professional services.
There shall be no endorsement reducing the scope of coverage required above unless approved
by the National City Risk Manager.
B. Minimum Limits of Insurance
Administrator shall maintain limits no less than:
1. Commercial General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to this project/location or the general aggregate limit shall be
twice the required occurrence limit; and
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage; and
3. Workers' Compensation and Employers Liability: Workers' Compensation limits
as required by the California Labor Code and Employers Liability limits of
$1,000,000 per accident; and
4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate
limit.
C. Deductibles and Self -Insured Retentions
Any deductibles or self -insured retentions must be declared to, and approved by the National
City Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such
deductibles or self -insured retentions as respects City, its officers, employees, agents, contractors
Indemnification Insurance Agreement
5 City of National City and
2016 Pace Funding Group, LLC
and volunteers; or Administrator shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses in an amount specified by the National
City Risk Manager.
D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
1. Commercial General Liability and Automobile Liability Coverages.
a. National City, its officers, employees, agents, contractors, and volunteers
are to be covered as additional insureds as respects: Liability arising out
of activities performed by or on behalf of Administrator; products and
completed operations of Administrator; premises owned, leased, or used
by Administrator; and automobiles owned, leased, hired or borrowed by
Administrator. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, employees, agents,
contractors, and volunteers.
b. Administrator's insurance coverage shall be primary insurance as respects
the City, its officers, employees, agents, contractors, and volunteers. Any
insurance or self-insurance maintained by City, its officers, employees,
agents, contractors, or volunteers shall be excess of Administrator's
insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by
Administrator shall not affect coverage provided to the City, its officers,
employees, agents, contractors, or volunteers.
d. Coverage shall state that Administrator's insurance shall apply separately
to each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability.
e. Coverage shall contain a waiver of subrogation in favor of the City, its
officers, employees, agents, contractors, and volunteers.
2. Workers' Compensation and Employers' Liability.
Coverage shall contain waiver of subrogation in favor of National City, its
officers, employees, agents, contractors, and volunteers.
3. All Coverages
Each insurance policy required by this AGREEMENT shall be endorsed to state
that coverage shall not be suspended, voided, cancelled, or reduced in limits
except after thirty (30) days' prior written notice has been given to the City,
except that ten (10) days' prior written notice shall apply in the event of
cancellation for nonpayment of premium.
Indemnification Insurance Agreement 6 City of National City and
2016 Pace Funding Group, LLC
E. Acceptability of Insurers.
Insurance is to be placed with insurers acceptable to the National City Risk Manager.
F. Verification of Coverage.
Administrator shall furnish the City with certificates of insurance and with original endorsements
affecting coverage required by this AGREEMENT. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its
behalf.
Proof of insurance shall be either emailed in pdf format to: eamaya@nationalcityca.gov or
mailed to the following postal address or any subsequent address as may be directed in writing
by the National City Risk Manager:
City of National City
Attn: Risk Manager
1243 National City Boulevard
National City, CA 91950-4301
G. Subcontractors
Administrator shall include all subcontractors as insureds under its policies or shall obtain
separate certificates and endorsements for each subcontractor.
Indemnification Insurance Agreement 7 City of National City and
2016 Pace Funding Group, LLC
INDEMNIFICATION AND INSURANCE AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
SPRUCE PACE, LLC
This Indemnification and Insurance Agreement ("Agreement") is entered into by and
between the City of National City, a municipal corporation ("City") and Spruce PACE, LLC, a
Delaware limited liability company, ("Administrator"), an administrator of the California
Statewide Communities Development Authority's PACE program "CSCDA Open PACE
Program" or "Program".
RECITALS
WHEREAS, the California Statewide Communities Development Authority
("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of Division
7, Title 1 of the California Government Code (Section 6500 et. seq) and the Joint Exercise of
Powers Agreement entered into on June 1, 1988, as amended from time to time ("Authority JPA");
and
WHEREAS, the Authority has established a property -assessed clean energy ("PACE")
Program ("Authority PACE Program") to provide for the financing of renewable energy
generation, energy and water efficiency improvements, seismic strengthening improvements.
electric vehicle charging infrastructure and such other infrastructure as may be authorized by law
from time to time (the "Improvements") pursuant to Chapter 29 of Division 7 of the California
Streets and Highways Code ("Chapter 29"), within counties and cities throughout the State of
California that elect to participate in the Program; and
WHEREAS, the City Council of the City of National City has approved the City joining
the Authority, has consented to the inclusion in the CSCDA Open PACE Program of all of the
properties in the jurisdictional boundaries of the City and to the acquisition, construction, and
installation of the Improvements, upon the request by and voluntary agreement of owners of such
properties, in compliance with the laws, rules and regulations applicable to the Program; and
WHEREAS, the Authority and the Administrator have entered into a Professional Services
Agreement, dated August 8, 2016 , in which the Administrator agrees to administer the CSCDA
Open PACE Program; and
WHEREAS, the Administrator agrees to indemnify the City and to provide insurance in
connection with the administration of the CSCDA Open PACE Program in the City of National
City.
NOW, THERFORE, in consideration of the Recitals above and of the City's agreement
to join the Authority and to participate in the CSCDA Open PACE Program, the parties agree as
follows:
1. Agreement to Indemnify. The Administrator agrees to defend, indemnify, and
hold harmless the City, its officers, elected or appointed officials, employees, agents, and
volunteers from and against any and all claims, damages, losses, expenses, fines, penalties,
judgments, demands, and defense costs (including, without limitation, actual, direct, out-of-
pocket costs and expenses, and amounts paid in compromise or settlement and reasonable
outside legal fees arising from litigation of every nature or liability of any kind or nature
including civil, criminal, administrative or investigative) arising out of or in connection with the
CSCDA Open PACE Program, except such loss or damage which was caused by the sole
negligence or willful misconduct of the City. The Administrator will conduct all defenses at its
sole cost and expense, and the City shall reasonably approve selection of the Administrator's
counsel. This indemnity shall apply to all claims and liability regardless of whether any
insurance policies of the Administrator, its affiliates or any other parties are applicable thereto.
The policy limits of any insurance of the Administrator, its affiliates or other parties are not a
limitation upon the obligation of the Administrator, including without limitation, the amount of
indemnification to be provided by the Administrator. The provisions of this section shall survive
the termination of this Agreement.
2. Insurance. The Administrator agrees, at no cost or expense to the City, at all
times during the administration of the CSCDA Open PACE Program, to maintain the insurance
coverage set forth in Exhibit "A" to this Agreement.
3. Amendment/Interpretation of this Agreement. This Agreement, including all
Exhibits attached hereto, represents the entire understanding of the parties as to those matters
contained herein. No prior oral or written understanding shall be of any force or effect with
respect to those matters covered hereunder. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by both parties hereto. This Agreement
shall not be interpreted for or against any party by reason of the fact that such party may have
drafted this Agreement or any of its provisions.
4 . Section Headings. Section headings in this Agreement are included for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.
5. Waiver. No waiver of any of the provisions of this Agreement shall be binding
unless in the form of a writing signed by the party against whom enforcement is sought, and no
such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver. Except as specifically provided herein, no
Indemnification and Insurance 2 City of National Cty and
Agreement Spruce PACE. LLC
failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a
waiver thereof.
6. Severability and Governing Law. If any provision or portion thereof of this
Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted
by law. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California applicable to contracts made and to be performed in
California.
7. Notices. All notices, demands and other communications required or pelmitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt, or mailed certified or registered mail and addressed as follows:
If to the Administrator:
If to the City:
Spruce PACE, LLC
Attn: Legal Department
50 Osgood Place, Suite 400
San Francisco, CA 94133
Alfredo Ybarra
Director, Housing, Grants, and Asset Management
City of National City
1243 National City Boulevard
National City, CA 91950-4301
8. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original, which together shall constitute the same instrument.
9. Effective Date. This Agreement will be effective as of the date of the signature of
City's representative as indicated below in the City's signature block.
Indemnification and Insurance • 3 City of National C:ty and
Agreement Spruce PACE, EEC
IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date
below.
CITY
CITY OF TIONAL CITY
By:
Ron Morrison
Mayor �/t3
Date:
APPROVED AS TO FORM:
ARIL P. MORRIS-JONES
City
By:
Rob€rto M. Contreras
Deputy City Attorney
ADMINISTRATOR
SPRUCE PACE, LLC
By:
Name: Stephanie Felix
Title: Vice President, Underwriting
Date: 6 g 124 )�
Indemnification and Insurance 4 City of National Cty and
Agreement Spruce PACE. LLC
EXHIBIT A
INSURANCE
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. The coverage provided by Insurance Services Office Commercial General
Liability coverage ("occurrence") Form Number CG 0001; and
2. The coverage provided by Insurance Services Office Form Number CA 0001
covering Automobile Liability. Coverage shall be included for all owned, non -
owned and hired automobiles; and
3. Workers' Compensation insurance as required by the California Labor Code and
Employers Liability insurance; and
4. Professional Liability Errors & Omissions for all professional services.
There shall be no endorsement reducing the scope of coverage required above unless approved
by the National City Risk Manager.
B. Minimum Limits of Insurance
Administrator shall maintain limits no less than:
1. Commercial General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to this project/location or the general aggregate limit shall be
twice the required occurrence limit; and
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage; and
3. Workers' Compensation and Employers Liability: Workers' Compensation limits
as required by the California Labor Code and Employers Liability limits of
$1,000,000 per accident; and
4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate
limit.
C. Deductibles and Self -Insured Retentions
Any deductibles or self -insured retentions must be declared to, and approved by the National
City Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such
deductibles or self -insured retentions as respects City, its officers, employees, agents, contractors
Indemnification and Insurance 5 C'ity of National Cty and
Agreement Spruce PACE. LI..0
and volunteers; or Administrator shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses in an amount specified by the National
City Risk Manager.
D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
1. Commercial General Liability and Automobile Liability Coverages.
a. National City, its officers, employees, agents, contractors, and volunteers
are to be covered as additional insureds as respects: Liability arising out
of activities performed by or on behalf of Administrator; products and
completed operations of Administrator; premises owned, leased, or used
by Administrator; and automobiles owned, leased , hired or borrowed by
Administrator. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, employees, agents,
contractors, and volunteers.
b. Administrator's insurance coverage shall be primary insurance as respects
the City, its officers, employees, agents, contractors, and volunteers. Any
insurance or self-insurance maintained by City, its officers, employees,
agents, contractors, or volunteers shall be excess of Administrator's
insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by
Administrator shall not affect coverage provided to the City, its officers,
employees, agents, contractors, or volunteers.
d. Coverage shall state that Administrator's insurance shall apply separately
to each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability.
e. Coverage shall contain a waiver of subrogation in favor of the City, its
officers, employees, agents, contractors, and volunteers.
2: Workers' Compensation and Employers' Liability.
Coverage shall contain waiver of subrogation in favor of National City, its
officers, employees, agents, contractors, and volunteers.
3. All Coverages
Each insurance policy required by this AGREEMENT shall be endorsed to state
that coverage shall not be suspended, voided, cancelled, or reduced in limits
except after thirty (30) days' prior written notice has been given to the City,
except that ten (10) days' prior written notice shall apply in the event of
cancellation for nonpayment of premium.
Indemnification and Insurance 6 City of National Cty and
Agreement Spruce PACE. EEC
E. Acceptability ofInsurers.
Insurance is to be placed with insurers acceptable to the National City Risk Manager.
F. Verification of Coverage.
Administrator shall furnish the City with certificates of insurance and with original endorsements
affecting coverage required by this AGREEMENT. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its
behalf.
Proof of insurance shall be either emailed in pdf format to: eamayarci?nationalcitvca.gov or
mailed to the following postal address or any subsequent address as may be directed in writing
by the National City Risk Manager: -
City of National City
Attn: Risk Manager
1243 National City Boulevard
National City, CA 91950-4301
G. ,Subcontractors
Administrator shall include all subcontractors as insureds under its policies or shall obtain
separate certificates and endorsements for each subcontractor.
Indemnification and Insurance Agreement 7 City of National City and
2018 Spruce PACE,LLC
INDEMNIFICATION AND INSURANCE AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
COUNTERPOINTE ENERGY SOLUTIONS (CA) LLC
d.b.a. "AllianceNRG Program"
This Indemnification and Insurance Agreement ("Agreement") is entered into by and
between the City of National City, a municipal corporation ("City") and CounterPointe Energy
Solutions (CA) LLC, a Delaware limited liability company, d.b.a. "AllianceNRG Program"
("Administrator"), an administrator of the California Statewide Communities Development
Authority's PACE program ("CSCDA Open PACE Program" or "Program").
RECITALS
WHEREAS, the California Statewide Communities Development Authority
("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of
Division 7, Title 1 of the California Government Code (Section 6500 et. seq.) and the Joint
Exercise of Powers Agreement entered into on June 1, 1988, as amended from time to time
("Authority JPA"); and
WHEREAS, the Authority has established a property -assessed clean energy ("PACE")
Program ("Authority PACE Program") to provide for the financing of renewable energy
generation, energy and water efficiency improvements, seismic strengthening improvements,
electric vehicle charging infrastructure and such other infrastructure as may be authorized by law
from time to time (the "Improvements") pursuant to Chapter 29 of Division 7 of the California
Streets and Highways Code ("Chapter 29"), within counties and cities throughout the State of
California that elect to participate in the Program; and
WHEREAS, the City Council of the City of National City has approved the City joining
the Authority, has consented to the inclusion in the CSCDA Open PACE Program of all of the
properties in the jurisdictional boundaries of the City and to the acquisition, construction, and
installation of the Improvements, upon the request by and voluntary agreement of owners of such
properties, in compliance with the laws, rules and regulations applicable to the Program; and
WHEREAS, the Authority and the Administrator have entered into a Program
Administration Agreement, dated May 7, 2015, as amended, in which the Administrator agrees
to administer the CSCDA Open PACE Program; and
WHEREAS, the Administrator agrees to indemnify the City and to provide insurance in
connection with its administration of the CSCDA Open PACE Program in the City of National
City.
NOW, THERFORE, in consideration of the Recitals above and of the City's agreement
to join the Authority and to participate in the CSCDA Open PACE Program, the parties agree as
follows:
1. Agreement to Indemnify. The Administrator agrees to defend, indemnify, and
hold harmless the City, its officers, elected or appointed officials, employees, agents, and
volunteers from and against any and all claims, damages, losses, expenses, fines, penalties,
judgments, demands, and defense costs (including, without limitation, actual, direct, out-of-
pocket costs and expenses, and amounts paid in compromise or settlement and reasonable
outside legal fees arising from litigation of every nature or liability of any kind or nature
including civil, criminal, administrative or investigative) arising out of or in connection with the
Administrator's administration of the CSCDA Open PACE Program, except to the extent such
loss or damage which was caused by the sole negligence or willful misconduct of the City. The
Administrator will conduct all defenses at its sole cost and expense, and the City shall reasonably
approve selection of the Administrator's counsel. This indemnity shall apply to all claims and
liability regardless of whether any insurance policies of the Administrator, its affiliates or any
other parties are applicable thereto. The policy limits of any insurance of the Administrator, its
affiliates or other parties are not a limitation upon the obligation of the Administrator, including
without limitation, the amount of indemnification to be provided by the Administrator. The
provisions of this section shall survive the termination of this Agreement.
2. Insurance. The Administrator agrees, at no cost or expense to the City, at all
times during its administration of the CSCDA Open PACE Program, to maintain the insurance
coverage set forth in Exhibit "A" to this Agreement.
3. Amendment/Interpretation of this Agreement. This Agreement, including all
Exhibits attached hereto, represents the entire understanding of the parties as to those matters
contained herein. No prior oral or written understanding shall be of any force or effect with
respect to those matters covered hereunder. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by both parties hereto. This Agreement
shall not be interpreted for or against any party by reason of the fact that such party may have
drafted this Agreement or any of its provisions.
4. Section Headings. Section headings in this Agreement are included for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.
5. Waiver. No waiver of any of the provisions of this Agreement shall be binding
unless in the form of a writing signed by the party against whom enforcement is sought, and no
such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver. Except as specifically provided herein, no
Indemnification Insurance Agreement 2 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a
waiver thereof.
6. Severability and Governing Law. If any provision or portion thereof of this
Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted
by law. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California applicable to contracts made and to be performed in
California.
7. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt, or mailed certified or registered mail and addressed as follows:
If to the Administrator:
If to the City:
David S. Schaefer
Chief Operating Officer
CounterPointe Energy Solutions (CA) LLC
6401 Congress Avenue, Suite 200
Boca Raton, FL 33487
Alfredo Ybarra
Director, Housing, Grants, and Asset Management
City of National City
1243 National City Boulevard
National City, CA 91950-4301
8. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original, which together shall constitute the same instrument.
9. Effective Date. This Agreement will be effective as of the date of the signature of
City's representative as indicated below in the City's signature block.
Indemnification Insurance Agreement 3 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date
below.
CITY
CITY OF NATIONAL CITY
B
Date:
Morrison, Mayor
APPROVED AS TO FORM:
Nicole Pedone
Acting City Attorney
ADMINISTRATOR
COUNTERPOINTE ENERGY
SOLUTIONS (CA) LLC
d.b.a. "AllianceNRG Program"
By:
David S. Schaefer
Chief Operating Officer
Date:
Indemnification Insurance Agreement 4 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
INSURANCE
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
EXHIBIT A
1. The coverage provided by Insurance Services Office Commercial General
Liability coverage ("occurrence") Form Number CG 0001; and
2. The coverage provided by Insurance Services Office Form Number CA 0001
covering Automobile Liability. Coverage shall be included for all owned, non -
owned and hired automobiles; and
3. Workers' Compensation insurance as required by the California Labor Code and
Employers Liability insurance; and
4. Professional Liability Errors & Omissions for all professional services.
There shall be no endorsement reducing the scope of coverage required above unless approved
by the National City Risk Manager.
B. Minimum Limits of Insurance
Administrator shall maintain limits no less than:
1. Commercial General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to this project/location or the general aggregate limit shall be
twice the required occurrence limit; and
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage; and
3. Workers' Compensation and Employers Liability: Workers' Compensation limits
as required by the California Labor Code and Employers Liability limits of
$1,000,000 per accident; and
4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate
limit.
C. Deductibles and Self -Insured Retentions
Any deductibles or self -insured retentions must be declared to, and approved by the National
City Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such
deductibles or self -insured retentions as respects City, its officers, employees, agents, contractors
Indemnification Insurance Agreement 5 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
and volunteers; or Administrator shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses in an amount specified by the National
City Risk Manager.
D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
1. Commercial General Liability and Automobile Liability Coverages.
a. National City, its officers, employees, agents, contractors, and volunteers
are to be covered as additional insureds as respects: Liability arising out
of activities performed by or on behalf of Administrator; products and
completed operations of Administrator; premises owned, leased, or used
by Administrator; and automobiles owned, leased, hired or borrowed by
Administrator. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, employees, agents,
contractors, and volunteers.
b. Administrator's insurance coverage shall be primary insurance as respects
the City, its officers, employees, agents, contractors, and volunteers. Any
insurance or self-insurance maintained by City, its officers, employees,
agents, contractors, or volunteers shall be excess of Administrator's
insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by
Administrator shall not affect coverage provided to the City, its officers,
employees, agents, contractors, or volunteers.
d. Coverage shall state that Administrator's insurance shall apply separately
to each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability.
e. Coverage shall contain a waiver of subrogation in favor of the City, its
officers, employees, agents, contractors, and volunteers.
2. Workers' Compensation and Employers' Liability.
Coverage shall contain waiver of subrogation in favor of National City, its
officers, employees, agents, contractors, and volunteers.
3. All Coverages
Each insurance policy required by this AGREEMENT shall be endorsed to state
that coverage shall not be suspended, voided, cancelled, or reduced in limits
except after thirty (30) days' prior written notice has been given to the City,
except that ten (10) days' prior written notice shall apply in the event of
cancellation for nonpayment of premium.
Indemnification Insurance Agreement 6 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
E. Acceptability of Insurers.
Insurance is to be placed with insurers acceptable to the National City Risk Manager.
F. Verification of Coverage.
Administrator shall furnish the City with certificates of insurance and with original endorsements
affecting coverage required by this AGREEMENT. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its
behalf.
Proof of insurance shall be either emailed in pdf format to: eamaya@nationalcityca.gov or
mailed to the following postal address or any subsequent address as may be directed in writing
by the National City Risk Manager:
City of National City
Attn: Risk Manager
1243 National City Boulevard
National City, CA 91950-4301
G. Subcontractors
Administrator shall include all subcontractors as insureds under its policies or shall obtain
separate certificates and endorsements for each subcontractor.
Indemnification Insurance Agreement 7 City of National City and
2016 CounterPointe Energy Solutions (CA) LLC
RESOLUTION NO. 2016 — 132
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S
JURISDICTION IN THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY OPEN PACE PROGRAMS; AUTHORIZING
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT
CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS WITHIN THE CITY'S JURISDICTION; AUTHORIZING
THE MAYOR TO EXECUTE INDEMNIFICATION AND INSURANCE AGREEMENTS
WITH PARTICIPATING ADMINISTRATORS; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
"Authority") is a joint exercise of powers authority, the members of which include numerous
cities and counties in the State of California, including the City of National City (the "City"); and
WHEREAS, the Authority is implementing Property Assessed Clean Energy
(PACE) programs, which it has designated CSCDA Open PACE, consisting of CSCDA Open
PACE programs each administered by a separate program administrator (collectively with any
successors. assigns, replacements or additions, the "Programs"), to allow the financing or
refinancing of renewable energy, energy efficiency, water efficiency and seismic strengthening
improvements, electric vehicle charging infrastructure and such other improvements,
infrastructure or other work as may be authorized by law from time to time (collectively, the
"Improvements") through the levy of contractual assessments pursuant to Chapter 29 of the
Improvement Bond Act of 1911, Division 7 of the Streets & Highways Code ("Chapter 29") within
counties and cities throughout the State of California that elect to participate in such program;
and
WHEREAS, the program administrators currently active in administering
Programs are Counterpointe Energy Solutions LLC, d.b.a. "AllianceNRG Program";
Counterpointe Energy Solutions (CA) LLC, d.b.a. "AllianceNRG Program"; Cleanfund
Commercial Pace Capital, Inc., d.b.a. "Clean Fund"; Pace Funding Group, LLC, d.b.a. "PACE
Funding"; Renewable Funding LLC; and Spruce Finance Inc., and the Authority will notify the
City in advance of any requested additions or changes to the manner in which the program
administrators operate within the City's jurisdiction; and
WHEREAS, the Legislature has authorized cities and counties to assist property
owners in financing the cost of installing Improvements through a voluntary contractual
assessment program; and
WHEREAS, the City desires to allow the owners of all of the property
("Participating Property Owners") in the incorporated area within the City to participate in the
Programs and to allow the Authority to conduct assessment proceedings under Chapter 29
within its jurisdiction and to issue bonds to finance or refinance Improvements; and
WHEREAS, the Authority will conduct all assessment proceedings under Chapter
29 for the Programs and issue any bonds issued in connection with the Programs; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings, the levy and collection of assessments or any required remedial action in the case
of delinquencies in the payment of any assessments or the issuance, sale or administration of
any bonds issued in connection with the CSCDA Open PACE Program.
Resolution No. 2016 — 132
Page Two
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
Section 1. This City Council hereby finds and declares that the foregoing recitals are
true and correct.
Section 2. The City Council finds and declares that properties located within the
City's jurisdiction will be benefited by the availability of the Programs to finance the installation
of Improvements.
Section 3. In connection with the Programs, the City hereby consents to the conduct
of special assessment proceedings by the Authority pursuant to Chapter 29 on any property
within the City's jurisdiction and the issuance of bonds under the 1911 Act to finance or
refinance Improvements; provided, that
(1) The Participating Property Owners, who shall be the legal owners of such
property, execute a contract pursuant to Chapter 29 and comply with other applicable provisions
of California law in order to accomplish the valid levy of assessments; and
(2) The City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in the case
of delinquencies in such assessment payments; or the issuance, sale or administration,
repayment or guarantee of any bonds or any other bonds issued in connection with the
Programs.
(3) The administrators of the CSCDA Open PACE Program listed in Section
5 below execute the City's Indemnification and Insurance Agreement on substantially similar
terms as presented herewith.
Section 4. The appropriate officials and staff of the City are hereby authorized and
directed to make applications for the Programs available to all property owners who wish to
finance or refinance Improvements; provided, that the Authority shall be responsible for
providing such applications and related materials at its own expense. The following staff
persons, together with any other staff persons chosen by the City Manager of the City from time
to time, are hereby designated as the contact persons for the Authority in connection with the
Programs: Alfredo Ybarra, Director of Housing, Grants, and Assessment Management, (619)
336-4254, aybarra(a�nationalcityca.gov.
Section 5. The Mayor is authorized to execute the Indemnification and Insurance
Agreement between the City and: Counterpointe Energy Solutions LLC, d.b.a. "AllianceNRG
Program"; Counterpointe Energy Solutions (CA) LLC, d.b.a. "AllianceNRG Program"; Cleanfund
Commercial Pace Capital, Inc., d.b.a. "Clean Fund"; Pace Funding Group, LLC, d.b.a. "PACE
Funding"; Renewable Funding LLC; and Spruce Finance Inc., the administrators of the CSCDA
Open PACE Program on substantially similar terms as presented herewith.
Section 6. The City Manager, or her designees, are hereby authorized and directed
to execute and deliver such certificates, requisitions, agreements and related documents as are
reasonably required by the Authority to implement the Programs.
Resolution No. 2016 — 132
Page Three
Section 7. The City Council hereby finds that adoption of this Resolution is not a
"project" under the California Environmental Quality Act, because the Resolution does not
involve any commitment to a specific project which may result in a potentially significant
physical impact on the environment, as contemplated by Title 14, California Code of
Regulations, Section 15378(b)(4).
Section 8. This Resolution shall take effect immediately upon its adoption. The City
Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the
Secretary of the Authority at: Secretary of the Board, California Statewide Communities
Development Authority, 1400 K Street, Sacramento, CA 95814.
PASSED and ADOPTED this 6'h day of Septe . -r, 16.
on Morrison, Mayor
ATTEST:
Michael R. Dalla, Cit Clerk
PPROVED AS TO FORM:
laudia Ga•'tua it
City Att
Passed and adopted by the Council of the City of National City, California, on
September 6, 2016 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
RON MORRISON
Mayor of the City of National City, California
A'
City Clerk of the City of National City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2016-132 of the City of National City, California, passed and
adopted by the Council of said City on September 6, 2016.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA C a o\ G- 2 G
COUNCIL AGENDA STATEMENT
MEETING DATE:
September 6, 2016
AGENDA ITEM NO. 11
ITEM TITLE:
Resolution of the City Council of the City of National City consenting to the inclusion of properties
within the City's jurisdiction in the CSCDA Open PACE Programs; authorizing the California
Statewide Communities Development Authority to accept applications from property owners,
conduct contractual assessment proceedings and levy contractual assessments within the City's
jurisdiction; authorizing the Mayor to execute indemnification and insurance agreements with
participating administrators; and authorizing related actions.
PREPARED BY: Carlos Aguirre, Housing & Economi
Development Manager
PHONE: 619 336-4391
EXPLANATION:
Please see Attachment No. 1.
DEPARTMENT: Housing & Economic
APPROVED
(
Dopmnt Dept.
FINANCIAL STATEMENT:
ACCOUNT NO.
There is no financial impact or liability on the City.
APPROVED
APPROVED:
Finance
MIS
ENVIRONMENTAL REVIEW:
This activity is not a project as defined in Section 57378 of the California Code of Regulations.
Therefore, no action is required under the California Environmental Quality Act.
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt the resolution.
BOARD / COMMISSION RECOMMENDATION:
ATTACHMENTS:
1. Background Report
2. Indemnification and Insurance Agreement for Participating Administrators
3. Resolution
Attachment No. 1
CSCDA Open PACE Program Background Report
CSCDA,1 the largest Joint Powers Authority in California, founded and sponsored by the League
of California Cities and CSAC, is implementing Property Assessed Clean Energy ("PACE") under the
provisions of Chapter 29 of Division 7 of the Streets & Highways Code (commonly referred to as "AB
811") on behalf of its member counties and cities. AB811 authorizes a legislative body to designate
an area within which authorized public officials (including a joint powers authority like CSCDA) and
free and willing property owners may enter into voluntary contractual assessments to finance the
installation of renewable energy, energy efficiency, water efficiency, and seismic strengthening
improvements as well as electric vehicle charging infrastructure, in each case affixed to real property
(the "Improvements").
CSCDA's Commissioners pre -qualified and appointed the PACE Administrators to manage the
CSCDA Open PACE program in order to offer members turn -key PACE solutions that provide
residential and commercial property owners the choice among prequalified PACE financing
providers, creating competition on terms, service and interest rates. The prequalified program
administrators operating the following programs are doing business as AllianceNRG Program' , the
Clean Fund, PACE Funding, Renew Financial (administering CaliforniaFIRST), and Spruce Finance.
The City of National City ("City") will require that each legal entity acting as program administrators
to enter into an Indemnification and Insurance Agreement in substantial conformance with the
Agreement attached to this staff report (Please see Attachment No. 2).
CSCDA's Open PACE program offers turnkey solutions to save California jurisdictions the time
and resources of developing standalone PACE programs. Jurisdictions only need to adopt the
form of resolution accompanying this staff report related to the CSCDA Open PACE program to
begin the process. There is no cost to approving the resolution. PACE has been a very successful
financing tool in California. PACE is operating in over 400 jurisdictions throughout the state, and
over a billion dollars in energy efficiency, water efficiency and renewable projects have been funded.
CSCDA Open PACE is being offered to allow property owners in participating cities and counties
to finance renewable energy, energy water efficiency improvements, seismic improvements and
electric vehicle charging infrastructure on their property. Participation in the assessment is 100%
voluntary by the property owner. The improvements installed on the owner's property are financed
by the issuance of bonds by CSCDA. The bonds are secured by a voluntary contractual
assessment levied on the owner's property. Property owners who wish to participate in PACE agree
to repay the money through the voluntary contractual assessment collected with property taxes. The
voluntary contractual assessments will be levied by CSCDA and collected in annual installments
through the applicable county secured property tax bill.
1 The California Statewide Communities Development Authority (CSCDA) was created in 1988, under California's Joint
Exercise of Powers Act, to provide California's local governments with an effective tool for the timely financing of
community -based public benefit projects. CSCDA has over 500 member agencies and is the Joint Powers Authority
and conduit bond issuer sponsored by the League of California Cities and the California State Association of Counties.
More information about CSCDA is available atwww.cscda.orq.
2 The AllianceNRG Program consists of Deutsche Bank Securities Inc., CounterPointe Energy Solutions LLC and
Leidos Engineering, LLC.
Page 1 of 4
Attachment No. 1
The benefits to the property owner include from the PACE Open PACE Program :
• Competition: CSCDA Open PACE provides multiple options to property owners:
AllianceNRG Program, the Clean Fund, PACE Funding, CaliforniaFIRST and Spruce
Finance. Property owners can shop for the best price and service through the
availability of the PACE administrators.
• Eligibility: In today's economic environment, alternatives for property owners to
finance renewable improvements may not be available. Many property owners do not
have financing options available to them to lower their utility bills.
• Savings: Energy prices continue to rise and installing energy efficient, water efficient
and renewable energy models lower utility bills.
• 100% voluntary: Only property owners who choose to finance improvements will have
assessments placed on their property.
• Payment obligation can stay with the property: Under Chapter 29, a voluntary
contractual assessment stays with the property upon transfer of ownership. Most
private loans are due on sale of the property. Certain mortgage providers will,
however, require the assessment be paid at the time the property is refinanced or
sold.
• Prepayment option: The property owner can choose to pay off the assessments at
any time, subject to applicable prepayment penalties.
• Customer oriented: Part of the success of the CSCDA Open PACE is prompt
customer service.
• Favorable Terms: The economic terms of PACE financing will often be more
favorable than other options.
• Not a personal loan or mortgage: The PACE assessment in effect is not a personal
obligation of the property owner through a conventional loan or mortgage but an
assessment on the property secured by an assessment lien and collected as part of
the regular tax roll on the property.
The benefits to the City include:
• Prequalified PACE Administrators. CSCDA has pre -qualified the PACE
Administrators based on their business practices, qualifications, experience, and
capital commitment to the PACE market.
• Single Resolution. The City can pass a single resolution and provide access to
Page 2 of 4
Attachment No. 1
residential and commercial property owners to highly qualified PACE administrators.
There is no need to pass multiple resolutions to approve the administrators.
• Project Eligibility. The CSCDA Open PACE platform can provide financing for all
aspects of PACE including: 1) Residential, 2) Commercial, and 3) Resilience
programs such as Mandatory Soft Story seismic strengthening programs,
• Increase local jobs. Property improvements provide jobs in the local economy.
• Increase in housing prices. Updated and higher efficient homes are generally more
valuable.
• Increase Revenue to the City. Property improvements result in an increase in sales,
payroll and property tax revenue to the City.
• No City Obligation. As in conventional assessment financing, the City is not obligated
to repay the bonds or to pay the assessments levied on the participating properties.
Unlike conventional assessment financing, the City has no administrative duties
and its name is not on the bonds, as CSCDA's name is on the bonds.
• No City staff support required. All CSCDA Open PACE and assessment
administration, bond issuance and bond administration functions are handled by
CSCDA and the Administrators. No City staff time is needed to participate in CSCDA
Open PACE.
• No internal management requirements. The City can provide access for its residents
to CSCDA Open PACE without the higher staff costs that an independent program
established by the City would require.
• Availability of Information on Projects Financed. The City may receive, at its option,
periodic updates on CSCDA Open PACE projects that have been completed in their
community.
• Demonstration of Community Commitment to the Environment. Participating in
CSCDA Open PACE demonstrates the City's commitment to do everything in its
power to improve the environment.
Page 3 of 4
Attachment No. 1
The proposed resolution enables CSCDA Open PACE programs to be available to owners
of residential and commercial property within the City to finance permanently fixed
renewable energy, energy efficiency, water efficiency, and seismic strengthening
improvements as well as electric vehicle charging infrastructure.
CSCDA (and not the City) will be responsible for entering into voluntary contractual
assessment agreements with participating property owners, levying the voluntary
contractual assessments, issuing bonds to finance the Improvements and taking remedial
actions in the event of delinquent assessment payments. The resolution expressly provides
that the county or city will not be responsible for the conduct of any assessment
proceedings, the levy of assessments, any required remedial action in the case of
delinquencies in assessment payments, or the issuance, sale or administration of any bonds
issued in connection with CSCDA Open PACE.
FISCAL IMPACTS:
There is no negative fiscal impact to the City's/County's general fund by consenting to the
inclusion of properties within the City limits in CSCDA Open PACE. All CSCDA Open
PACE administrative costs are covered through an initial administrative fee included in the
property owner's voluntary contractual assessment and an annual administrative fee, which
is also collected on the property owner's tax bill.
Page 4 of 4
Attachment No. 2
INDEMNIFICATION AND INSURANCE AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
CLEANFUND COMMERCIAL PACE CAPITAL, INC.
d.b.a. "Clean Fund"
This Indemnification and Insurance Agreement ("Agreement") is entered into by and
between the City of National City, a municipal corporation ("City") and Cleanfund Commercial
Pace Capital, Inc., a Delaware corporation, d.b.a. "Clean Fund" ("Administrator"), the
administrator of the California Statewide Communities Development Authority's PACE program
"CSCDA Open PACE Program" or "Program".
RECITALS
WHEREAS, the California Statewide Communities Development Authority
("Authority") is a joint exercise of powers authority established pursuant to Chapter 5 of
Division 7, Title 1 of the California Government Code (Section 6500 et. seq.) and the Joint
Exercise of Powers Agreement entered into on June 1, 1988, as amended from time to time
("Authority JPA"); and
WHEREAS, the Authority has established a property -assessed clean energy ("PACE")
Program ("Authority PACE Program") to provide for the financing of renewable energy
generation, energy and water efficiency improvements, seismic strengthening improvements,
electric vehicle charging infrastructure and such other infrastructure as may be authorized by law
from time to time (the "Improvements") pursuant to Chapter 29 of Division 7 of the California
Streets and Highways Code ("Chapter 29"), within counties and cities throughout the State of
California that elect to participate in the Program; and
WHEREAS, the City Council of the City of National City has approved the City joining
the Authority, has consented to the inclusion in the CSCDA Open PACE Program of all of the
properties in the jurisdictional boundaries of the City and to the acquisition, construction, and
installation of the Improvements, upon the request by and voluntary agreement of owners of such
properties, in compliance with the laws, rules and regulations applicable to the Program; and
WHEREAS, the Authority and the Administrator have entered into a Third Party
Administration Agreement, dated April 7, 2016, in which the Administrator agrees to administer
the CSCDA Open PACE Program; and
WHEREAS, the Administrator agrees to indemnify the City and to provide insurance in
connection with the administration of the CSCDA Open PACE Program in the City of National
City.
Indemnification Insurance Agreement
1 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
NOW, THERFORE, in consideration of the Recitals above and of the City's agreement
to join the Authority and to participate in the CSCDA Open PACE Program, the parties agree as
follows:
1. Agreement to Indemnify. The Administrator agrees to defend, indemnify, and
hold harmless the City, its officers, elected or appointed officials, employees, agents, and
volunteers from and against any and all claims, damages, losses, expenses, fines, penalties,
judgments, demands, and defense costs (including, without limitation, actual, direct, out-of-
pocket costs and expenses, and amounts paid in compromise or settlement and reasonable
outside legal fees arising from litigation of every nature or liability of any kind or nature
including civil, criminal, administrative or investigative) arising out of or in connection with the
CSCDA Open PACE Program, except such loss or damage which was caused by the sole
negligence or willful misconduct of the City. The Administrator will conduct all defenses at its
sole cost and expense, and the City shall reasonably approve selection of the Administrator's
counsel. This indemnity shall apply to all claims and liability regardless of whether any
insurance policies of the Administrator, its affiliates or any other parties are applicable thereto.
The policy limits of any insurance of the Administrator, its affiliates or other parties are not a
limitation upon the obligation of the Administrator, including without limitation, the amount of
indemnification to be provided by the Administrator. The provisions of this section shall survive
the termination of this Agreement.
2. Insurance. The Administrator agrees, at no cost or expense to the City, at all
times during the administration of the CSCDA Open PACE Program, to maintain the insurance
coverage set forth in Exhibit "A" to this Agreement.
3. Amendment/Interpretation of this Agreement. This Agreement, including all
Exhibits attached hereto, represents the entire understanding of the parties as to those matters
contained herein. No prior oral or written understanding shall be of any force or effect with
respect to those matters covered hereunder. No supplement, modification, or amendment of this
Agreement shall be binding unless executed in writing by both parties hereto. This Agreement
shall not be interpreted for or against any party by reason of the fact that such party may have
drafted this Agreement or any of its provisions.
4. Section Headings. Section headings in this Agreement are included for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose.
5. Waiver. No waiver of any of the provisions of this Agreement shall be binding
unless in the form of a writing signed by the party against whom enforcement is sought, and no
such waiver shall operate as a waiver of any other provisions hereof (whether or not similar), nor
shall such waiver constitute a continuing waiver. Except as specifically provided herein, no
Indemnification Insurance Agreement
2 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
failure to exercise or any delay in exercising any right or remedy hereunder shall constitute a
waiver thereof.
6. Severability and Governing Law. If any provision or portion thereof of this
Agreement shall be held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable, the remaining provisions shall remain enforceable to the fullest extent permitted
by law. This Agreement shall be governed by and construed and enforced in accordance with
the laws of the State of California applicable to contracts made and to be performed in
California.
7. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt, or mailed certified or registered mail and addressed as follows:
If to the Administrator:
If to the City:
Alfredo Ybarra
Director, Housing, Grants, and Asset Management
City of National City
1243 National City Boulevard
National City, CA 91950-4301
8. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be an original, which together shall constitute the same instrument.
9. Effective Date. This Agreement will be effective as of the date of the signature of
City's representative as indicated below in the City's signature block.
Indemnification Insurance Agreement
3 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
IN WITNESS HEREOF, the parties hereto duly executed this Agreement as of the date
below.
CITY ADMINISTRATOR
CITY OF NATIONAL CITY
By:
Ron Morrison, Mayor
Date:
APPROVED AS TO FORM:
Claudia G. Silva
City Attorney
Indemnification Insurance Agreement
CLEANFUND COMMERCIAL PACE
CAPITAL, INC.
d.b.a. "Clean Fund"
By:
Date:
Name Title
4 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
INSURANCE
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
EXHIBIT A
1. The coverage provided by Insurance Services Office Commercial General
Liability coverage ("occurrence") Form Number CG 0001; and
2. The coverage provided by Insurance Services Office Form Number CA 0001
covering Automobile Liability. Coverage shall be included for all owned, non -
owned and hired automobiles; and
3. Workers' Compensation insurance as required by the California Labor Code and
Employers Liability insurance; and
4. Professional Liability Errors & Omissions for all professional services.
There shall be no endorsement reducing the scope of coverage required above unless approved
by the National City Risk Manager.
B. Minimum Limits of Insurance
Administrator shall maintain limits no less than:
1. Commercial General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial Liability Insurance or other
form with a general aggregate limit is used, either the general aggregate limit shall
apply separately to this project/location or the general aggregate limit shall be
twice the required occurrence limit; and
2. Automobile Liability: $1,000,000 combined single limit per accident for bodily
injury and property damage; and
3. Workers' Compensation and Employers Liability: Workers' Compensation limits
as required by the California Labor Code and Employers Liability limits of
$1,000,000 per accident; and
4. Professional Liability Errors & Omissions $1,000,000 per occurrence/ aggregate
limit.
C. Deductibles and Self -Insured Retentions
Any deductibles or self -insured retentions must be declared to, and approved by the National
City Risk Manager. At the option of City, either: the insurer shall reduce or eliminate such
deductibles or self -insured retentions as respects City, its officers, employees, agents, contractors
Indemnification Insurance Agreement
5 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
and volunteers; or Administrator shall procure a bond guaranteeing payment of losses and related
investigations, claim administration and defense expenses in an amount specified by the National
City Risk Manager.
D. Other Insurance Provisions
The policies are to contain, or be endorsed to contain, the following provisions:
1. Commercial General Liability and Automobile Liability Coverages.
a. National City, its officers, employees, agents, contractors, and volunteers
are to be covered as additional insureds as respects: Liability arising out
of activities performed by or on behalf of Administrator; products and
completed operations of Administrator; premises owned, leased, or used
by Administrator; and automobiles owned, leased, hired or borrowed by
Administrator. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, employees, agents,
contractors, and volunteers.
b. Administrator's insurance coverage shall be primary insurance as respects
the City, its officers, employees, agents, contractors, and volunteers. Any
insurance or self-insurance maintained by City, its officers, employees,
agents, contractors, or volunteers shall be excess of Administrator's
insurance and shall not contribute with it.
c. Any failure to comply with reporting provisions of the policies by
Administrator shall not affect coverage provided to the City, its officers,
employees, agents, contractors, or volunteers.
d. Coverage shall state that Administrator's insurance shall apply separately
to each insured against whom claim is made or suit is brought, except with
respect to the limits of the insurer's liability.
e. Coverage shall contain a waiver of subrogation in favor of the City, its
officers, employees, agents, contractors, and volunteers.
2. Workers' Compensation and Employers' Liability.
Coverage shall contain waiver of subrogation in favor of National City, its
officers, employees, agents, contractors, and volunteers.
3. All Coverages
Each insurance policy required by this AGREEMENT shall be endorsed to state
that coverage shall not be suspended, voided, cancelled, or reduced in limits
except after thirty (30) days' prior written notice has been given to the City,
except that ten (10) days' prior written notice shall apply in the event of
cancellation for nonpayment of premium.
Indemnification Insurance Agreement
6 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
Attachment No. 2
E. Acceptability of Insurers.
Insurance is to be placed with insurers acceptable to the National City Risk Manager.
F. Verification of Coverage.
Administrator shall furnish the City with certificates of insurance and with original endorsements
affecting coverage required by this AGREEMENT. The certificates and endorsements for each
insurance policy are to be signed by a person authorized by that insurer to bind coverage on its
behalf.
Proof of insurance shall be either emailed in pdf format to: eamaya@nationalcityca.gov or
mailed to the following postal address or any subsequent address as may be directed in writing
by the National City Risk Manager:
City of National City
Attn: Risk Manager
1243 National City Boulevard
National City, CA 91950-4301
G. Subcontractors
Administrator shall include all subcontractors as insureds under its policies or shall obtain
separate certificates and endorsements for each subcontractor.
Indemnification Insurance Agreement
7 City of National City and
2016 Cleanfund Commercial Pace Capital, Inc.
RESOLUTION NO. 2016 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
CONSENTING TO THE INCLUSION OF PROPERTIES WITHIN THE CITY'S
JURISDICTION IN THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY OPEN PACE PROGRAMS; AUTHORIZING
THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
TO ACCEPT APPLICATIONS FROM PROPERTY OWNERS, CONDUCT
CONTRACTUAL ASSESSMENT PROCEEDINGS AND LEVY CONTRACTUAL
ASSESSMENTS WITHIN THE CITY'S JURISDICTION; AUTHORIZING
THE MAYOR TO EXECUTE INDEMNIFICATION AND INSURANCE AGREEMENTS
WITH PARTICIPATING ADMINISTRATORS; AND AUTHORIZING RELATED ACTIONS
WHEREAS, the California Statewide Communities Development Authority (the
"Authority") is a joint exercise of powers authority, the members of which include numerous
cities and counties in the State of California, including the City of National City (the "City"); and
WHEREAS, the Authority is implementing Property Assessed Clean Energy
(PACE) programs, which it has designated CSCDA Open PACE, consisting of CSCDA Open
PACE programs each administered by a separate program administrator (collectively with any
successors, assigns, replacements or additions, the "Programs"), to allow the financing or
refinancing of renewable energy, energy efficiency, water efficiency and seismic strengthening
improvements, electric vehicle charging infrastructure and such other improvements,
infrastructure or other work as may be authorized by law from time to time (collectively, the
"Improvements") through the levy of contractual assessments pursuant to Chapter 29 of the
Improvement Bond Act of 1911, Division 7 of the Streets & Highways Code ("Chapter 29") within
counties and cities throughout the State of California that elect to participate in such program;
and
WHEREAS, the program administrators currently active in administering
Programs are Counterpointe Energy Solutions LLC, d.b.a. "AllianceNRG Program";
Counterpointe Energy Solutions (CA) LLC, d.b.a. "AllianceNRG Program"; Cleanfund
Commercial Pace Capital, Inc., d.b.a. "Clean Fund"; Pace Funding Group, LLC, d.b.a. "PACE
Funding"; Renewable Funding LLC; and Spruce Finance Inc., and the Authority will notify the
City in advance of any requested additions or changes to the manner in which the program
administrators operate within the City's jurisdiction; and
WHEREAS, the Legislature has authorized cities and counties to assist property
owners in financing the cost of installing Improvements through a voluntary contractual
assessment program; and
WHEREAS, the City desires to allow the owners of all of the property
("Participating Property Owners") in the incorporated area within the City to participate in the
Programs and to allow the Authority to conduct assessment proceedings under Chapter 29
within its jurisdiction and to issue bonds to finance or refinance Improvements; and
WHEREAS, the Authority will conduct all assessment proceedings under Chapter
29 for the Programs and issue any bonds issued in connection with the Programs; and
WHEREAS, the City will not be responsible for the conduct of any assessment
proceedings, the levy and collection of assessments or any required remedial action in the case
of delinquencies in the payment of any assessments or the issuance, sale or administration of
any bonds issued in connection with the CSCDA Open PACE Program.
Resolution No. 2016 —
Page Two
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
Section 1. This City Council hereby finds and declares that the foregoing recitals are
true and correct.
Section 2. The City Council finds and declares that properties located within the
City's jurisdiction will be benefited by the availability of the Programs to finance the installation
of Improvements.
Section 3. In connection with the Programs, the City hereby consents to the conduct
of special assessment proceedings by the Authority pursuant to Chapter 29 on any property
within the City's jurisdiction and the issuance of bonds under the 1911 Act to finance or
refinance Improvements; provided, that
(1) The Participating Property Owners, who shall be the legal owners of such
property, execute a contract pursuant to Chapter 29 and comply with other applicable provisions
of California law in order to accomplish the valid levy of assessments; and
(2) The City will not be responsible for the conduct of any assessment
proceedings; the levy or collection of assessments or any required remedial action in the case
of delinquencies in such assessment payments; or the issuance, sale or administration,
repayment or guarantee of any bonds or any other bonds issued in connection with the
Programs.
(3) The administrators of the CSCDA Open PACE Program listed in Section
5 below execute the City's Indemnification and Insurance Agreement on substantially similar
terms as presented herewith.
Section 4. The appropriate officials and staff of the City are hereby authorized and
directed to make applications for the Programs available to all property owners who wish to
finance or refinance Improvements; provided, that the Authority shall be responsible for
providing such applications and related materials at its own expense. The following staff
persons, together with any other staff persons chosen by the City Manager of the City from time
to time, are hereby designated as the contact persons for the Authority in connection with the
Programs: Alfredo Ybarra, Director of Housing, Grants, and Assessment Management, (619)
336-4254, aybarra a(�nationalcityca.gov.
Section 5. The Mayor is authorized to execute the Indemnification and Insurance
Agreement between the City and: Counterpointe Energy Solutions LLC, d.b.a. "AllianceNRG
Program"; Counterpointe Energy Solutions (CA) LLC, d.b.a. "AllianceNRG Program"; Cleanfund
Commercial Pace Capital, Inc., d.b.a. "Clean Fund"; Pace Funding Group, LLC, d.b.a. "PACE
Funding"; Renewable Funding LLC; and Spruce Finance Inc., the administrators of the CSCDA
Open PACE Program on substantially similar terms as presented herewith.
Section 6. The City Manager, or her designees, are hereby authorized and directed
to execute and deliver such certificates, requisitions, agreements and related documents as are
reasonably required by the Authority to implement the Programs.
Resolution No. 2016 —
Page Three
Section 7. The City Council hereby finds that adoption of this Resolution is not a
"project" under the California Environmental Quality Act, because the Resolution does not
involve any commitment to a specific project which may result in a potentially significant
physical impact on the environment, as contemplated by Title 14, California Code of
Regulations, Section 15378(b)(4).
Section 8. This Resolution shall take effect immediately upon its adoption. The City
Clerk is hereby authorized and directed to transmit a certified copy of this resolution to the
Secretary of the Authority at: Secretary of the Board, California Statewide Communities
Development Authority, 1400 K Street, Sacramento, CA 95814.
PASSED and ADOPTED this 6th day of September, 2016.
Ron Morrison, Mayor
ATTEST:
Michael R. Dalla, City Clerk
APPROVED AS TO FORM:
Claudia Gacitua Silva
City Attorney
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950-4397
619-336-4228
Michael R. Dalla, CMC - City Clerk
COUNTERPOINTE ENERGY SOLUTIONS (CA) LLC
d.b.a AllianceNRG Program
Indemnification and Insurance Agreement
CSCDA Open PACE Program
Carlos Aguirre (Housing & Economic Development) Forwarded
Copy of Agreement to Counterpointe Energy Solutions dba AllianceNRG Program.
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950
619-336-4228 phone / 619-336-4229 fax
Michael R. Dalla, CMC - City Clerk
September 13, 2016
Secretary of the Board
California Statewide Communities Development Authority
1400 K Street
Sacramento, CA 95814
Dear Secretary of the Board,
Enclosed is a certified copy of Resolution No. 2016-132 for your files.
If you have any questions, please feel free to call me at 619-336-4226.
Michael Dalla
City Clerk
Enclosure
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950-4397
619-336-4228 phone / 619-336-4229 fax
Michael R. Dalla, CMC - City Clerk
February 7, 2018
Mr. Robert Giles
PACE Funding
750 University Ave., Suite 240
Los Gatos, CA 95032
Dear Mr. Giles,
On September 6th, 2016, Resolution No. 2016-132 was passed and adopted by the City
Council of the City of National City, authorizing execution of an Agreement with Pace
Funding Group, LLC d.b.a. PACE Funding.
We are enclosing for your records a fully executed original Agreement.
1
Sincerely,
alL
Michael R. Dalla, CMC
City Clerk
Enclosures
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950-4397
619-336-4228 phone / 619-336-4229 fax
Michael R. Dalla, CMC - City Clerk
April 26, 2018
Spruce PACE, LLC
Attn: Legal Department
50 Osgood Place, Suite 400
San Francisco, CA 94133
Dear Legal Department,
On September 6th, 2016, Resolution No. 2016-132 was passed and adopted by the City
Council of the City of National City, authorizing execution of an Agreement with
Spruce PACE, LLC.
We are enclosing for your records a fully executed original Agreement.
Sincerely,
/1
f/d.a
Michael R. Dalla, CMC
City Clerk
Enclosures