First Amendments to Drews Substation & Century Substation Lease w Alliance Colton LLC

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FINANCIAL IMPACT As previously noted, the leases will each provide the Electric Utility with annual revenues of $80,000 escalated annually by 4%. The present value of the first 15 years at a discount rate of 6% is $1,002,000. The sum of these payments is $1,601,887. In addition, the land portion returned could now be leased to another entity thus generating more revenue. ENVIRONMENTAL IMPACT Most improvements will still take place within the Century substation. There will be three turbines that will need to be installed within the substation property presently containing the 66kV transmission line exit. The Drews substation does not require additional equipment due to availability of 12kV interconnection facilities. The substations have previously been approved for electric utility uses. The Air Quality Permit and any other required permits will be the tenant's responsibility. LEGAL REVIEW 741c 11 A2 Cit Attorney RECOMMENDATION Staff recommends that the City Council approve the amendments to the Drews Substation and Century Substation Lease Agreements with Alliance Colton, LLC. Attachments: Drews Substation Lease Agreement Amendments Century Substation Lease Agreement Amendments Report prepared by Timothy C. Trewyn, P.E., Assistant Electric Utility Director Page 2 of 2 (w/Attachments)