Loading...
Item 4B CITY OF SOUTHLAKE Item 413 MEMORANDUM (June 7, 2016) To: Shana Yelverton, City Manager From: Robert M. Cohen, P.E., Director of Public Works Subject: Approve an annual agreement for providing odor control treatment at lift stations with Premier Magnesia, LLC. in the amount of$138,000 for a 12 month period Action Requested: Approve an annual agreement for providing odor control treatment at lift stations with Premier Magnesia, LLC. in the amount of $138,000 for a 12 month period. Background Information: Since the construction of the Shady Lane and Lonesome Dove sanitary sewer lift stations in 2000, the City has had to treat the wastewater to prevent hydrogen sulfide production in the sewer system from affecting residents. Hydrogen sulfide gas has a very strong "rotten egg" odor and is highly corrosive to concrete manholes and the cast iron manhole ring and lid. Premier Magnesia has been providing this service for Southlake and Trinity River Authority since 2006 because previous attempts to control the hydrogen sulfide with other products were not successful. An additional benefit to this technology is the prevention of grease buildup in the lift station wet-wells and downstream sewer mains eliminating the need for City crews to remove and dispose of excess grease. Grease causes blockage in the mains that may lead to potential sewer overflows. Under the proposed agreement, the cost per gallon will remain at $2.73 per gallon. Premier Magnesia is a sole source provider for Thioguard technical grade magnesium hydroxide slurry. Staff is recommending that Council accept the proposal offered by Premier Magnesia, LLC. to guarantee a rate $2.73 per gallon for their services for a 12-month period with an estimated annual cost of approximately $138,000. City of Southlake Values: Integrity Innovation♦Accountability♦Commitment to Excellence ♦Teamwork Item 4B Page 2 of 2 Financial Considerations: Funding for this program is provided in the FY 2016 operating budget of the Waste Water Division. Strategic Link: The annual purchase agreement for the magnesia treatment of wastewater links to the City's strategy map relative to the strategic focus area of Performance Management and Service Delivery. The specific corporate objectives that are met by this agreement include: 132 collaborate with select partners to implement service solutions, PW132 minimize environmental pollution and promote public health (132), and PWF2 invest to provide and maintain high quality City facilities and City infrastructure (F2). Citizen Input/ Board Review: N/A Legal Review: None Alternatives: The City Council may approve or deny the agreement to provide odor control treatment at lift stations. Supporting Documents: Annual Contract Pricing Renewal Letter Sole Source Letter Staff Recommendation: Approve an annual agreement for providing odor control treatment at lift stations with Premier Magnesia, LLC. in the amount of $138,000 for a 12 month period. Staff Contact: Robert Cohen, P.E., Public Works Director Cristina McMurray, C.P.M, Public Works Dep. Director/Operations City of Southlake Values: Integrity♦Innovation♦Accountability♦Commitment to Excellence ♦Teamwork giREMIER MAGNESIA, LLC May 20, 2016 Cristina McMurray Deputy Director of Public Works - Operations 1950 East Continental Blvd City of Southlake, Texas 76092 Re: Premier Magnesia, LLC —Thioguard® Annual Contract Pricing Cristina: Pursuant to your request for a renewal of the annual contract for Thioguard, I am submitting this letter to update you on the terms of the agreement. You may submit Purchase Orders either on a per load basis, or a Blanket PO may be issued for the duration of the price in effect. The price per gallon for the upcoming year will be $2.73 effective July I"through and ending June 30th 2017. At the current combined rate of usage for Lonesome Dove and Shady Lane of 125 gallons per day, plus or minus 10%for seasonal variability, estimated annual costs are between $124,556 and$137,012. Premier Magnesia very much appreciates your cooperation and looks forward to a continued long-term relationship as a quality supplier. Sincerely, Mary P. Evans South Central Regional Account Manager Premier Magnesia, LLC Thioguard TST Phone: 903.245.6316 20108 CR 186 Flint, Texas 75762 Email: mevans rerrierma nesia.com giREMIER MAGNESIA, LLC ACCEPTANCE: Laura Hill, Mayor Date ATTESTED BY: Lori Payne,TRMC Date City Secretary APPROVED AS TO FORM AND LEGALITY: City Attorney Date _7_9Five Tower Bridge !?E 300 Barr Harbor Drive,Suite 250 mi� MIER West Conshohocken,PA 19428-2998 MAGNESIA, LLC Tel: (610)962-8954 Fax: (610)962-8958 May 26,2016 Mr. Jack Thompson Wastewater Supervisor 1950 East Continental Blvd City of Southlake,Texas 76092 Re: Premier Magnesia, LLC—Thioguard® Sole Source Procurement Dear Jack: Thioguard is the highest quality technical grade magnesium hydroxide slurry available in the marketplace today. Through our proprietary manufacturing process,we are able to provide a safe,non-hazardous slurry,which when properly applied to municipal wastewater collection systems or treatment plants,has been proven to provide plant alkalinity and buffering, safe control of hydrogen sulfide evolution,prevention of organic odors and corrosion, and a reduction/elimination of FOG (fats,oils and grease). In addition,manufactured Thioguard is a quality technical grade of magnesium hydroxide slurry that: • Is produced and derived from highly reactive magnesium chloride brine • Is sourced and proprietarily processed exclusively by Premier Magnesia LLC in the USA • Has the highest available surface area and reactivity as a result of Premier's proprietary manufacturing process • Provides a reduction in plant sludge generation typically associated with lime and lower grade magnesium hydroxide products Since wastewater treatment is performed in a sensitive biological environment wherein operation is at near-neutral or slightly alkaline condition,the processes require the highest reactive grade magnesium hydroxide available for proper operations. Lower reactive grades are incapable of sufficiently neutralizing the acid generated in these environments,and will pass through the system unused. Finally,Thioguard is manufactured to exacting particle size,particle size distribution,and specific surface area to provide the highest reactivity and stability for transportation,pumping, and handling of our product. This manufacturing process ensures consistent performance,better dispersion and suspension stability,all of which are critical to collection system and treatment plant operations. Premier Magnesia LLC is the only supplier of Thioguard technical grade magnesium hydroxide slurry. Regards, ""f Mary Evans South Central Regional Account Manager Premier Magnesia,LLC 903-245-6316 mevans@premiermagne sia.com