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1 <br /> RESOLUTION NO. R-122-22 <br /> 2 <br /> 3 APPROVE THE SHORT TERM EXTENSION TO THE LEASE <br /> 4 AGREEMENT BETWEEN THE CITY OF COLTON AND COLTON <br /> POWER L.P. (C/O ALLIANCE ENERGY LLC) THROUGH DECEMBER <br /> 5 31ST OF 2027 EXEMPTED FROM A COMPETITIVE BIDDING <br /> PROCESS IN ACCORDANCE WITH COLTON MUNICIPAL CODE <br /> 6 §3.08.140(J) <br /> 7 <br /> WHEREAS, in December of 2000, the City of Colton and Colton Power L.P (Alliance <br /> 8 Power LLC) agreed to terms leasing Colton's surplus lands on the Drews and Century Substation <br /> 9 sites ; and <br /> WHEREAS,in May of 2015, the City of Colton agreed to extend the original agreement <br /> 10 for five years; and <br /> WHEREAS,in January of 2022,the City of Colton agreed to extend the original <br /> 11 agreement through June of 2022 and each month thereafter ; and <br /> 12 WHEREAS,the original agreement provides for additional lease term extensions; and <br /> WHEREAS, City staff and Colton Power L.P. (Alliance Power LLC)will use the short <br /> 13 term lease period to negotiate a longer term extension; and <br /> WHEREAS,the current lease agreement continues to remain in place providing long <br /> 14 term revenue security to the City; and <br /> WHEREAS, in accordance with the City's Municipal Code, Section §3.08.140(J), City <br /> 15 Council may extend the original agreement to lease City's Real Property. <br /> 16 NOW, THEREFORE,BE IT RESOLVED,that the Colton City Council hereby <br /> authorizes the extension of the Drews/Century Substation site to Colton Power L.P. (Alliance <br /> 17 Power LLC)until December 31St, 2027,thus increasing the City revenue stream to $698,500 <br /> annually with an escalation of 4% each year thereafter. <br /> 18 <br /> PASSED, APPROVED and ADOPTED THIS 6TH DAY OF DECEMBER 2022. <br /> 19 <br /> 20 <br /> 21 <br /> 22 K . A RR <br /> Mayor <br /> 23 <br /> ATT . <br /> 24 <br /> 25 CAROLINA R. PADILLA <br /> 26 City Clerk <br /> 27 <br /> 28 <br /> 23152.06020\32617662.1 <br />