HomeMy WebLinkAbout08/20/1996, C-8 - SURPLUS CARBON FILTRATION TANKS council `fit 20 1996
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CITY OF SAN LUIS OBISPO
FROM: John Moss, Utilities Director
Prepared By: Gary W. Henderson, Water Division Manager
SUBJECT: Surplus Carbon Filtration Tanks
CAO RECOAE%IENDATION
1. Adopt resolution declaring two sets of carbon filtration tanks as surplus.
2. Authorize staff to advertise for formal bids and authorize the CAO to sell the tanks to
the-most responsive bidder.
DISCUSSION
In response to the ongoing drought, the City initiated an aggressive pursuit for additional water
supplies from the San Luis Obispo groundwater basin in 1989. Two of the largest producing
wells, Auto Park and Dalidio, were found to be contaminated with an organic solvent,
tetrachloroethylene, which is commonly referred to as PCE. This compound can effectively be
removed using granular activated carbon (GAC)which absorbs the compound. Two units, each
consisting of two tanks and associated piping, were purchased and installed at the Auto Park and
Dalidio well sites.
The Dalidio well was a private well which the City developed a temporary agreement to utilize.
The well site was immediately adjacent to the Embassy Suites and the filtration tanks partially
blocked the sign for the hotel. The well also experienced production problems and therefore
when the agreement expired, the filtration tanks were removed from the site and placed in
storage at the Corporation Yard.
The Auto Park well was placed in service in October 1989 and was the largest producing well
that the City had available during the drought. In November of 1992, the well was taken out
of service following routine water sampling which indicated elevated nitrate levels in the water.
The nitrate contamination is likely due to past agricultural practices in the area. The nitrate
contamination requires additional treatment using reverse osmosis or an ion exchange process.
This level of treatment requires a larger site than is available in the immediate area. There also
were concerns raised by property owners in the area relative to the visual impacts of the GAC
facilities. Therefore, the facilities were removed and placed in storage at the Corporation Yard.
Staff does not envision utilizing the filtration tanks in the near future and the tanks and piping
are beginning to show signs of deterioration. Staff was contacted by Northwest Carbon, Inc.
concerning potential purchase of the tanks. Northwest Carbon submitted an informal bid of
approximately $15,000 to purchase both sets of tanks. Staff believes that the proposal may not
Council Agenda Report - Surplus Carbon Filtration Tanks
Page 2
represent the true value of the equipment and would recommend that the City advertise for
formal bids for sale of the equipment.
The City typically utilizes the services of an auctioneer to sell surplus materials. Staff has
discussed this situation with the City's auctioneer and he indicated that they are not aware of
what agencies or companies might be interested in this equipment. Therefore, staff recommends
that their services not be utilized and that staff advertise in trade journals and notify companies
that may be interested in purchasing these facilities.
FISCAL IMPACT
Approval of the recommendation would recover a portion of the original investment
(approximately $130,000 for equipment) which would be returned to the Water Fund.
Attachment: 1. Resolution declaring carbon tanks surplus
gAcarkrbntank.car
RESOLUTION NO. (1996 SERIES)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SAN LUIS OBISPO
DECLARING EQUIPMENT AS SURPLUS PROPERTY
BE IT RESOLVED that the City Council of the City of San Luis Obispo as follows:
Section 1. That the City Council hereby declares two sets of carbon filtration tanks
as surplus property.
Section 2. Disposal of the property shall be made by formal bid and actual sale of
property approved by the City Administrative Officer to the most responsive bidder.
On motion of , seconded by
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing Resolution was adopted on this day of , 1996.
ATTEST: Mayor Allen Settle
City Clerk, Bonnie Gawf
APPROVED AS TO FORM:
WittAo ey Je y rgensen
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