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HomeMy WebLinkAboutAgenda Report - March 19, 1986 (72)r• r _ CITY COUNCIL MEETING M. RCH 19, 1986 0 GAS AMID OIL LEASE BIDS CC -27 (d) Council was reminded that at its regular meeting of .lanuary 15, 1986, the City Council authorized the advertisement for bids for an oil and gas lease on City -maned property at the Whine Slough Water Pollution Control Plant. This followed a request by an oil and gas development ecnl) ny for the granting of such a lease by the City. Knowing the City had at least one interested party, staff felt it was in the City's best interest to solicit bids. The process for advertising for and awarding such bids is precisely set forth in the Public Resources Code of the State of California. It specifically provides that bids shall be opened at a regular meeting of the City Council and may be awarded at that meeting or a future meeting. The bid opening had been set for this meeting. City Clerk Reimche announced that no bids had been received. CO ti'CIL COIVIIUNICATION TO: THE CITY COUNCIL DATE NO. FROM. THE CITY MANAGER'S OFFICE March 13, 1986 SUBJECT: OIL AMID GAS LEASE BIDS RECOMMENDED ACTION: That the City Council direct the opening of bids for an oil and gas lease on City of Lodi property, and award the bid to the highest bidder. BACKGROUND INFOF4WION. At its regular meeting of Januar, 15, 1986, the City Council authorized the advertisement for bids for an oil and gas lease on City -owned property at the White Slough Water Pollution Control Plant. This followed a request by an oil and gas development company for the granting of such a lease by the City. Knowing we had at least one interested party, staff felt it was in the City's best interest to solicit bids. The City Clerk has received a few telephone calls in response to our advertisements in an oil and gas industry publication. However, a lot depends on market conditions at the time of the bid opening. Having gone through this experience before, I would not be surprised if we received no bids. The process for advertising for and awarding such bids is precisely set forth in the Public Resources Code of the State of California. It specifically provides that bids shall be opened at a regular meeting of the City Council and may be awarded at that meeting or a future meeting. This is the reason for opening the bids at a Council meeting which is not our normal procedure. Respectfully submitted, r Therms A. Peterson City Manager TAP/lh