R-067-23 Approve Second Amendment to Drews Substation Lease Agreement Between the City of Colton and Colton Power LLC and Amending the Fiscal Year 2022/2023 Revenue Budget

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confidential • John Berke • Scotiabank • Dec 23.2015 14:45 • 3. TERMS. 3.1 Term. The term ("Term") of this Agreement shall be for fifteen (15) years commencing upon January 342001 (the"Commencement Date")and expiring on January 31,2016, unless terminated earlier, as provided herein. 3.2. Option to Renew. Provided Lessee is not in material default under any of the terms of this Agreement,Lessee may request renewal of this Agreement on the terms and conditions herein contained for 2 additional terms("Renewal Term")of 5 year periods upon written notice to City of Lessee's intent to do so at least one hundred eighty(180) days prior to the expiration of the Term or any Renewal Term. In its sole discretion, City may grant or deny the request for renewal within 90 days of receipt of Lessee's written notice requesting renewal. If the City does not respond to the written notice, this Agreement shall terminate in accordance with Section 3.1. The terms and conditions for each Renewal Term shall be the same terms and conditions of this Agreement,except that the consideration payable for the Renewal Terms shall be in accordance with the provisions of Section 3.6 herein. 3.3 Facilities;Utilities;Access. 3.3.1 Subject to the provisions of Sections 2.2,3.9.3 and 3.10 of this Agreement, Lessee has the right to erect,maintain and operate on the Premises the Lessee Facilities,including, without limitation,generating equipment and associated electrical and gas auxiliary equipment. The Lessee Facilities shall be used for electric generation purposes, and for no other purpose. A W schematic of the Lessee Facilities("Schematic")is attached as Exhibit"C"hereto and incorporated herein by reference. Lessee shall not deviate from the approved Schematic without the prior written approval of City. Provided all work shall comply with the Schematic,Lessee has the right to install the Lessee Facilities on the Premises. All of Lessee's construction and installation work shall be performed at Lessee's sole cost,expense and liability and in conformance with the latest editions of the "Green Book"or the Standard Specifications for Public Works construction, as written and promulgated by the Joint Cooperative Committee of the Southern California Chapter of the American Public Works.Association,the National Electrical Code,(NEC applicable to 600V class and below only)the Nationals Electrical Safety Code,and CPUC General Orders 95 and 128. Lessee agrees to obtain air, and other construction permits and to furnish and transport all necessary labor, materials, tools, implements, and appliances required to install and completely finish the Lessee Facilities in a good and workmanlike manner,to the satisfaction and approval of City, free of any and all liens and claims of laborers,materialmen,suppliers,and subcontractors,and in conformity with the Schematic and all applicable state, county, and municipal laws, codes, and regulations, including applicable standards of the American national Standards Institute,the American Society of Mechanical Engineers,and the Institute of Electrical and Electronics Engineers. The site is zoned for electrical infrastructure,which includes power generation. The City will be designated the lead agency to secure a finding of no significant impact or negative declaration for environmental impact. Title to the Lessee Facilities shall be held by Lessee. Lessee's Facilities shall remain Lessee's ,City of Colton Lease Agreement Execution Copy Page 2 conficential John Burke • Dec 23,2015 1 eA5