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RESOLUTION: 2004-62
SUBJECT: Authorizing a lease purchase contract with Banc of America Leasing
& Capital, LLC for an LED signal light conversion project.
RECOMMENDATION: The Traffic Engineering Division of the Public Works Department has identified a money and energy saving opportunity for the City that requires an up front investment. The investment will change certain signal lights throughout the City to more cost and energy efficient systems. The City will hereby borrow the money to replace the existing infrastructure with updated materials that will save the City money. The City will then use the money saved to repay the money borrowed. It is estimated that it will take the City 6 years to repay the money borrowed, which will be funded entirely by money saved. It is estimated that the life of the materials replaced is as much as 10 years. Staff recommends approval.
SUMMARY AND BACKGROUND OF SUBJECT MATTER: By changing certain lighting facilities to more energy efficient bulbs the City can save both energy and money. In so doing, there is a cost for changing the existing bulbs. This resolution provides a method by which the funds for changing the existing bulbs may be financed. All payments to Banc of America Leasing will come from energy savings.
Banc of America Leasing competed against several other financial services providers for this lease purchase and was the lowest bidder. The City will repay on this lease purchase each year, subject to annual appropriation. The interest rate proposed is 3.39%.
PROJECT DESCRIPTION: Dave Baskett, the City's Traffic Engineer outlined this project in a memorandum to Council dated March 19, 2004, copy attached. This project will provide for a change, on certain signal lights, from incandescent light bulbs to Light Emitting Diode ("LED") light bulbs. LED bulbs are more energy efficient and cost less to replace, over time. This will save the City money and reduce energy consumption as outlined in the memorandum.
RESOLUTION ADOPTION DATE: June 28, 2004
ATTACHMENTS: Resolution 2004-62
Memorandum Dated March 19, 2004
ORIGINATED BY: Finance Department
STAFF PERSON RESPONSIBLE: Larry Dorr, Director of Finance, 303-987-7601
SUBMITTED BY:
Larry Dorr, Finance Director
REVIEWED BY:
Joni Inman, Director Mayor and City Manager's Office
Michael J. Rock, City Manager
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