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1 <br /> RESOLUTION NO. R-66-23 <br /> 2 <br /> 3 APPROVE AND ADOPT A RESOLUTION TO APPROVE SECOND <br /> 4 AMENDMENT TO CENTURY 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 <br /> Colton,LLC for the Century Substation; and <br /> WHEREAS,The City and Alliance Colton,LLC amended the lease on April 4,2001 to modify <br /> 8 the lease renewal procedure; and <br /> WHEREAS,On July 20, 2001,the City consented to an assignment of the lease from Alliance <br /> 9 Colton,LLC to the current lessee, Colton Power,LLC(Colton Power); and <br /> WHEREAS,On May 12,2015,Colton Power exercised its renewal option for the first additional <br /> 10 5-year term through January 31,2021; and <br /> WHEREAS,In January 2022,the City agreed to extend the agreement through June 2022 and <br /> 11 monthly thereafter; and <br /> WHEREAS,On December 6,2022,the City Council adopted Resolution No. R-122-22 extending <br /> 12 the term through December 31,2027 so the parties could negotiate a long-term extension of the lease. <br /> Unfortunately, Colton Power weas not aware of those terms and didn't agree to them either. <br /> 13 WHEREAS,The current lease agreement continues to remain in place in providing revenue to the <br /> City; and <br /> 14 WHEREAS,in accordance with the City's Municipal Code, Section §3.08.140(J), City Council <br /> may extend the original lease agreement;and <br /> 15 <br /> 16 NOW,THEREFORE,BE IT RESOLVED,THAT THE COLTON CITY COUNCIL <br /> HEREBY APPROVES; <br /> 17 Section 1 The Second Amendment to Century Substation Lease Agreement <br /> Section 2 The City Council authorizes the following amendment for the Fiscal Year <br /> 2022-2023 budget: <br /> 18 • 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 /> 19 <br /> 20 PASSED,APPROVED AND ADOPTED THIS 28' OF JUNE 2023. <br /> 21 <br /> 22 .NAV RRO <br /> 23 Mayor <br /> 24 <br /> 25 ATTEST: <br /> 26 WIND <br /> 27 STEPHANIE M. VARGAS / <br /> 28 Deputy City Clerk <br />