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CITY OF COLTON <br />CITY COUNCIL AGENDA REPORT <br />For Council Meeting of March 17, 1998 <br />TO: Honorable Mayor and City Co ncil Plembers <br />APPROVAL: Henry T. Garcia, City Manage <br />IV <br />FROM: Thomas K. Clarke, Utility Director� <br />SUBJECT: Approval of ThermoEnergy Corporation Demonstration Project at Wastewater <br />Treatment Plant <br />DATE: March 10, 1998 <br />BACKGROUND <br />For several months, Staff has been in discussions with ThermoEnergy Corporation regarding the siting of <br />a federally funded demonstration project at the Colton treatment facility. This project is a sludge -to -oil <br />technology, which would use the plant's primary effluent and recover an oil derivative similar to diesel oil. <br />ThermoEnergy contacted the City because of the size of effluent volumes, land availability, and ready <br />market for the oil product. They have tested the technology on a smaller scale and are looking for a <br />cooperative site to construct the demonstration plant. ThermoEnergy has assured the City that there will <br />be no cost to the City to construct and run the facility. In addition, the process will actually save the <br />treatment plant some operating costs while the plant is functioning. <br />This will be a highly visible project. It will have national and international attention. If it works as <br />anticipated, there will be considerable favorable exposure for the City of Colton. <br />This matter came before the Utilities Commission at the regularly scheduled meeting of March 9, 1998. <br />Following discussion and a question/answer session, the Commissioners voted unanimously to proceed <br />with this project. <br />ALTERNATIVES <br />This is either a yes or no proposition. The only option to letting them set up at the plant is to turn down <br />their proposal. <br />FINANCIAL <br />ThermoEnergy will assume all of the costs of locating the demonstration project in Colton. This will <br />include site preparation, facilities operation (sludge -to -oil only), materials handling, reporting, and any <br />ancillary costs associated with the treatment plant. <br />ENVIRONMENTAL IMPACTS <br />There are no anticipated environmental impacts as a result of this demonstration project. <br />Page 1 of 2 <br />Item # 16 <br />