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BACKGROUND As part of the City's Climate Action Plan, the City Council on September 17, 2013 awarded a contract for LED street light retrofit (CIP 135056). That contract allows the Hacienda Business Park Owners Association (HBPOA), which is responsible for approximately 783 street lights within the 833 acre business park, to benefit from the CIP's economies of scale and the City's contract administration by electing to install energy efficient LED street lights based on the pricing and terms of the CIP. The HBPOA seeks to enter into a loan agreement with the City to fund the LED street light upgrade. The loan funds are proposed to be funded from the North Pleasanton Improvement District No. 3 (NPID No. 3) No. 1986-9 account. NPID No. 3 was an assessment district formed in 1986 to fund road improvements within the district, including lighting. In 1995, the City Council closed the fund as the large projects were complete, and the account balance (approximately $1 .8 million) was held to fund remaining landscaping and landscape maintenance in 1-580 projects. No further assessment payments are due. The Hacienda Business Park is located within the boundaries of NPID No. 3, lighting was an approved use for funds, and the loan agreement includes interest such that the NPID No. 3 Fund will remain whole when the loan is repaid. DISCUSSION The attached LED Upgrade Agreement sets out the terms of the proposed loan to the HBPOA from NPID No. 3 funds, summarized as follows: 1 . The HBPOA receives same LED lights, item prices, and warranties as CIP 135056 2. The HBPOA pays a pro-rata share of GPS data collection 3. The City administers the CIP project 4. The HBPOA and City will consult if charge orders are significant 5. Final loan amount will be based on the number of LED street lights selected by HBPOA for upgrade with photocell for each + pro rata share of GPS + number of brackets and shields installed based on field conditions (with the current estimate at $285,325 based on 783 lights) 6. HBPOA will execute a promissory note for the final loan amount 7. Interest will be computed based on the California Treasurer's Local Agency Investment Fund (LAIF) rate (for the quarter ending 6/30/2013, the rate was 0.25%), adjusted annually 8. Payments due twice yearly with twenty one total payments (which is a term similar to the loan that the City has received from the California Energy Commission) 9. No prepayment penalty Because interest will be paid by the HBPOA at the same interest rate currently earned by the NPID No. 3 Fund, that account remains whole for remaining projects. None of the remaining projects are scheduled during the current CIP cycle, so the NPID No. 3 funds are available for this loan. Page 2 of 3