The project calls for Siemens to replace more than 9,000 streetlights, retrofit the exterior and interior lighting at 16 city facilities at a total cost of $10.39 million, which includes the interest. A city report suggests the city could borrow $8.4 million over 15 years at 2.75 percent interest to pay for the work. But the report says the city would save more than $14 million because of lower utility bills and reduced maintenance and operations costs. The city would use those savings to pay off the project’s debt and would net about $4 million. The agreement calls for Siemens to pay Modesto for any shortfalls in expected savings or provide operational upgrades at its own expense to make up for a shortfall.
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