Live Oak is scaling back its arsenic removal project after high nitrate levels were found in one of five city wells.

The additional treatment required to bring the well up to standards cannot be covered by $2 million in grants the city received to fix the arsenic problems, Public Works Director Michael Bohlander told the City Council on Wednesday night.

The council unanimously voted to negotiate with the low bidder for the five-well treatment project - Waterworks Construction Inc. - for a four-well job.

“Early indications are they’re OK with that,” Bohlander said of the contractor.

The project was spurred by the tightening of arsenic levels in drinking water by the Environmental Protection Agency in January 2006 from 50 parts per billion to 10 ppb, an amount a city consultant said equaled a drop of water in a pool.

Live Oak’s drinking water averages 20 to 30 ppb, a level not considered a major health problem. The city has until September 2008 to comply with the federal standards.

The city applied for funds on an arsenic treatment program through Proposition 40, approved by state voters in 2002. Of $9.5 million in arsenic reduction money available statewide, Live Oak received $2 million.

Bids for treating five wells with a filtration system from seven companies ranged from $3.52 million to $2.6 million. Estimates earlier this year had the project being fully funded by the $2 million grant.

“I about passed out reading those numbers,” Bohlander said.

Then came the nitrate discovery, which forced City Well 5 to be taken offline entirely.

While numbers are not official, Bohlander said taking the fifth well out of the project will bring the contract down to around $2.1 million.

Bohlander said even with the lower number, $2.5 million is the target cost for repairs. The grant is not in danger because of the project change.

The city applied Tuesday for a different grant to correct the problems with Well 5 through Proposition 84, the 2006 measure which approved $5.4 billion in bond funding for water supply, flood and other natural resource issues.

“Hopefully, we’ll be able to get that grant to get back to five wells again,” Bohlander said.

Appeal-Democrat reporter Robert LaHue can be reached at 749-4713. You may e-mail him at rlahue@appealdemocrat.com.