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1 <br /> RESOLUTION NO. R-67-23 <br /> 2 <br /> 3 APPROVE AND ADOPT A RESOLUTION TO APPROVE SECOND <br /> 4 AMENDMENT TO DREWS SUBSTATION LEASE AGREEMENT BETWEEN <br /> THE CITY OF COLTON AND COLTON POWER LLC AND AMENDING THE <br /> 5 FISCAL YEAR 2022/2023 REVENUE BUDGET <br /> 6 WHEREAS,On December 20,2000,the City entered into a lease agreement with Alliance Colton,LLC for <br /> the Drews Substation;and <br /> WHEREAS,The City and Alliance Colton,LLC amended the lease on April 4,2001 to modify the lease <br /> 8 renewal procedure;and <br /> WHEREAS,On July 20,2001,the City consented to an assignment of the lease from Alliance Colton,LLC <br /> to the current lessee,Colton Power,LLC(Colton Power); and <br /> 9 WHEREAS,On May 12,2015,Colton Power exercised its renewal option for the first additional 5-year <br /> term through January 31,2021;and <br /> 10 WHEREAS,In January 2022,the City agreed to extend the agreement through June 2022 and monthly <br /> thereafter;and <br /> 11 WHEREAS,On December 6,2022,the City Council adopted Resolution No.R-122-22 extending the term <br /> through December 31,2027 so the parties could negotiate a long-term extension of the lease.Unfortunately,Colton <br /> 12 Power weas not aware of those terms and didn't agree to them either. <br /> WHEREAS,The current lease agreement continues to remain in place in providing revenue to the City;and <br /> 13 WHEREAS,in accordance with the City's Municipal Code, Section§3.08.140(J),City Council may extend <br /> the original lease agreement;and <br /> 14 <br /> NOW,THEREFORE,BE IT RESOLVED,THAT THE COLTON CITY COUNCIL HEREBY <br /> 15 APPROVES; <br /> Section 1 The Second Amendment to Drews Substation Lease Agreement <br /> 16 Section 2 The City Council authorizes the following amendment for the Fiscal Year <br /> 2022-2023 budget: <br /> 17 • Increase revenues by$1,000,000 in Electric Utility Fund Lease Revenue Account Number 520- <br /> 7898-000 to recognize the one-time revenue <br /> 18 <br /> PASSED,APPROVED AND ADOPTED THIS 28t''DAY OF JUNE 2023. <br /> 19 <br /> 20 <br /> 21 �a, <br /> 22 74 ' NAVARRO <br /> Mayor <br /> 23 <br /> ATTEST: <br /> 24 <br /> 25 <br /> 26 <br /> 27 STEP NIE M. VARG <br /> Deputy City Clerk <br /> 28 <br />