Item 4C - Final CITY OF
SOUTHLAKE Item 4C
MEMORANDUM
(June 20, 2016)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Approve an annual purchase agreement for providing odor
control treatment at City wastewater lift stations with Premier
Magnesia, LLC. in an amount not to exceed $140,000 for a 12-
month period
Action
Requested: Approve an annual purchase agreement for providing odor control
treatment at City wastewater lift stations with Premier Magnesia,
LLC. in an amount not to exceed $140,000 for a 12-month period.
Background
Information: The City pre-treats the wastewater flows at the Shady Lane and
Lonesome Dove wastewater lift stations before it flows to the Trinity
River Authority (TRA) treatment plant. These two lift stations are
the largest in the City and handle the largest volume of wastewater
flows. The pre-treatment with Thioguard is necessary for several
reasons including controlling odor, maintaining infrastructure
integrity, breaking up grease, and managing treatment costs.
The City has to pre-treat the wastewater to manage the effects of
hydrogen sulfide gas in the sewer system. Hydrogen sulfide gas
has a very strong "rotten egg" odor. Treating with Thioguard
provides odor control that would otherwise have an impact on
residents. Hydrogen sulfide gas is also highly corrosive to concrete
manholes and the cast iron manhole ring and lid. Pre-treatment
with Thioguard aids in the reduction of hydrogen sulfide gas in
order to maintain the integrity of wastewater infrastructure. Premier
Magnesia has been providing Thioguard for Southlake and the
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 wastewater lift station wet-wells and downstream
sewer mains. This chemical treatment eliminates 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
Item 4C
and Texas Commission on Environmental Quality (TCEQ) fines.
TRA also charges the City a surcharge for high levels of BOD
(Biochemical Oxygen Demand) attributed to grease in the
wastewater flows.
This year it has been necessary for the City to increase the
Thioguard dosing by 5-10 gallons per day at the Shady Lane Lift
Station due to the increase in the number of new restaurants in the
City and the subsequent increase in grease and BOD in
wastewater flows.
Financial
Considerations:
Funding for odor control treatment at the City's wastewater lift
stations is provided in the annual Public Works Wastewater
Operating Budget. Under the proposed agreement, the cost per
gallon will increase from $2.73 per gallon to $2.77 per gallon for the
upcoming year. Premier Magnesia is a sole source provider for
Thioguard technical grade magnesium hydroxide slurry.
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: (B2) collaborate with select partners to implement service
solutions, and (F2) invest to provide and maintain high quality
public assets.
Citizen Input/
Board Review: N/A
Legal Review: None
Alternatives: The City Council may approve or deny the agreement.
Supporting
Documents: Attachment A: Premier Magnesia, LLC - Thioguard Annual Contract
Pricing
Attachment B: Premier Magnesia, LLC - Sole Source Letter
Page 2 of 3
Item 4C
Staff
Recommendation: Approve an annual purchase agreement for providing odor control
treatment at City wastewater lift stations with Premier Magnesia,
LLC. in an amount not to exceed $140,000 for a 12-month period.
Staff Contact: Rob Cohen, Director of Public Works
Cristina McMurray, M.P.A, C.P.M, Deputy Director of Public
Works/Operations
Page 3 of 3
Attachment A
?REMIER
MAGNESIA, LLC
6/1/17
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 $2.77 effective July 1, 2017 through and
ending June 30, 2018.
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 $113,743
and $139,019 if the current BOD loading to these stations stay constant. However, ongoing
analysis points to an increasing BOD level in the collection system line that feeds Shady Lane,
which may result in the need to feed additional chemical to treat this line. Quarterly analysis of
BOD levels continues to identify potential increases and potential required changes to feed
rates.
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: mevansC@premiermagnesia.com
?I
REMIER
MAGNESIA, LLC
Acceptance:
Laura Hill, Mayor Date
Attested By:
Lori Payne, TRMC Date
City Secretary
CITY OF
SOUTHLAKE
Sole Source Memo
Date 10/18/206
To: Shana Yelverton, City Manager
From: Jack Thompson, Public Works Wastewater Supervisor
Subject: Sole Source Purchase Letter for Premier Magnesia, LLC
This memo is to obtain authorization of a Sole Source Purchase. This memo details the Sole Source
request.
This is a sole source because: (Check all that apply)
❑ One-of-a-kind—there is no competitive alternative on the market
Compatibility— must match existing brand or equipment for compatibility
Replacement part—for a specific brand of existing equipment
✓ Unique design—must meet physical design or quality requirements
Other-
Describe the purpose of the purchase of goods or services and why this is a sole source:
Thiogard is solely provided by Premier Magnesia. Thiogard is a controlled dosage of magnesium hydroxide
that is used to control sewer odors & corrosive gases in the wastewater collection system.
Thiogard also reduces the accumulation of fats, oils, and grease at lift station wet-wells.
Staff Recommendation:
The recommendation for sole source is based upon an objective review of the product/service required
and appears to be in the best interest of the City of Southlake.
Vendor Sole Source Letter Attached*(Required)
This sole source procurem t`requeis i curate and complete to the best of my knowledge and belief.
Director Approval
Based upon the above, I authorize the sole source acquisition of the goods or services specified.
Approved Date �f
Shana Yelv n, City Manager
Attachment B
iREM
Five Tower Bridge
300 Barr Harbor Drive,Suite 250 IER
West Conshohocken,PA 19428-2998
MAGNESIA, LLC Tel: (610)962-8954
Fax: (610)962-8958
October 4, 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,
Mary Evans
South Central Regional Account Manager
Premier Magnesia,LLC
903-245-6316
mevans@premierrnagnesia.com