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Wit,,, .,, ... 9 j'L£�1Sf�NTONe CITY COUNCIL AGENDA REPORT October 1, 2013 Finance Department Operation Services TITLE: APPROVE LED STREET LIGHT RETROFIT LOAN AGREEMENT WITH THE HACIENDA BUSINESS PARK OWNERS ASSOCIATION SUMMARY The Hacienda Business Park Owners Association (HBPOA) is responsible for the operation and maintenance of approximately 783 street lights within the business park. The proposed loan agreement allows the HBPOA to upgrade its street lights to more energy efficient light emitting diode (LED) lights by using the same contractor and cost per LED light and related items from the City's larger LED Retrofit Capital Improvement Project (CIP) 135056 awarded on September 17, 2013. The loan would be made from the North Pleasanton Improvement District No. 3 (NPID No. 3) account. The business park is within the NPID No. 3, there are no further assessment payments due, and its remaining funds are for improvement projects which have not yet been scheduled. The loan would be repaid with interest levied at the Local Agency Investment Fund rate annually (the interest rate that the idle funds are currently earning) so that the NPID No. 3 Fund is made whole. RECOMMENDATION 1. Approve the loan agreement with the Hacienda Business Park Owners Association and authorize the City Manager to execute the agreement in generally the form as attached, with modifications for final loan amount based on the number of LED street lights selected for upgrade, and related installation costs using CIP 135056 prices. 2. Appropriate funds from NPID No. 3 (Account 165-165900-4485) for the loan. FINANCIAL STATEMENT The proposed loan to the Hacienda Business Park Owners Association is estimated as $285,325 with the final amount to be determined after installation. The loan would be funded with NPID No. 3 funds and repaid with interest.