Loading...
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