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M E M O R A N D U M
(June 18, 2019)
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. 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 and is highly corrosive to
concrete manholes and the cast iron manhole ring and lid . Treating
with Thioguard provides odor control that would otherwise have an
impact on residents. In addition, it aids in the reduction of said gas,
so the integrity of the wastewater infrastructure is not compromised.
Premier Magnesia has been providing Thioguard for Southlake
since 2006 because previous attempts to control the hydrogen
sulfide with other products were not successful.
Another benefit to this technology is the preventio n of grease
buildup in the wastewater lift station wet-wells and downstream
sewer mains. Grease causes blockage in the mains that may lead
to potential sewer overflows and Texas Commission on
Environmental Quality (TCEQ) fines. Additionally, TRA charges the
City a surcharge for high levels of BOD (Biochemical Oxygen
Demand) attributed to grease in the wastewater flows. In utilizing
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this chemical treatment, it eliminates the need for City crews to
remove and dispose of excess grease.
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 $2.84 per gallon to $2.91 per gallon for the
upcoming year. Premier Magnesia is a sole source provider for
Thioguard technical grade magnesium hydroxide slurry.
The increase per gallon will not affect the overall annual costs, as
the usage between Lonesome Dove and Shady Lane lift stations
will decrease from previous usage levels.
Strategic Link: This item links to the City’s Strategy Map strategic focus area of
Performance Management and Service Delivery. It specifically
relates to the City’s Corporate Objective, B2: Collaborate with
Select Partners to Implement Service Solutions and F2: Invest to
Provide & Maintain High Quality Public Assets.
Citizen Input/
Board Review: N/A
Legal Review: N/A
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 2018
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
6/3/19
Rob Cohen
Director of Public Works
1950 East Continental Blvd
City of Southlake, Texas 76092
Re: Premier Magnesia, LLC – Thioguard® Annual Contract Pricing FY 2019-2020
Rob:
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 $2.91 effective July 1, 2019 through and
ending June 30, 2020. Price increase is being driven by a rise in delivery costs associated with
deliveries into the City of Southlake. Annualized transportation delivery costs for 2018 were
$0.56/gallon. Current transportation and delivery costs for 2019 (to date) are $0.65/gallon,
necessitating the increase.
In addition, manufacturing costs for Chemical Products (PPI) have shown an increase in
Chemical production costs from 275 in 2018 to 282 in 2019, resulting in a 2.54% change. That
index can be found at the end of this letter.
At the current combined rate of usage for Lonesome Dove and Shady Lane of 120 - 130 gallons
per day, estimated annual costs are between $127,458 and $138,080 if the current BOD loading
to these stations stays constant. However, ongoing analysis points to a higher BOD level in the
collection system line that feeds Shady Lane, and consequently Round Hollow, which may result
in the need to feed additional chemical to treat these lines in the future. Current levels of
treatment measured by pH values indicate good Hydrogen Sulfide and corrosion control in the
collections system at this time.
Compilation of Testing Data
Date Location
Analysis Results
pH Std/Units BOD mg/L
10/31/2016 Lonesome Dove NT 74
10/31/2016 Shady Lane NT 433
10/31/2016 Round Hollow NT 221
10/31/2016 Dove Road NT NT
3/2/2017 Lonesome Dove NT NT
3/2/2017 Shady Lane 8.14 386
3/2/2017 Round Hollow 8.15 170
3/2/2017 Dove Road 7.94 140
6/7/2017 Lonesome Dove NT NT
6/7/2017 Shady Lane 7.96 188
6/7/2017 Round Hollow 8.44 186
6/7/2017 Dove Road 8.54 81
3/22/2018 Lonesome Dove 9.23 100
3/22/2018 Shady Lane 9.27 264
3/22/2018 Round Hollow 9.52 324
3/22/2018 Dove Road 9.35 38
5/28/19 Lonesome Dove 8.44 Pending
5/28/19 Shady Lane 8.37 Pending
5/28/19 Round Hollow 8.22 Pending
5/28/19 Dove Road 8.59 Pending
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
Phone: 903.245.6316
20108 CR 186
Flint, Texas 75762
Email: mevans@premiermagnesia.com
;�PREWIER
MAGNESIA LLC
UNITED STATES DEPARTMENT OF LABOR
BUREAU OF LABOR STATISTICS
Data ToolsPublications T Economic Releases - Students 'r Beta
Databases, Tables & Calculators by Subject
Change Output Options: From: 2ov: To: 2019:
0 include graphs 0 include annual averages
Data extracted on:June 3,2019(1:25:01 PM)
PPI Commodity Data
Series Id: WPU0613
Not Seasonally Adjusted
Series Title: PPI Commodity data for Chemicals and allied products-Basic inorganic chemicals, not seasonally adjusted
Group: Chemicals and allied products
Item: Basic inorganic chemicals
Base Date: 198200
°0 280
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270
N
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X
'a' 260
c
250
01/17 04/17 07/17 10/17 01/18 04/18 07/18 10/18 01/19 04/19
Month
Download:it xlsx
Year Tan Feb Mar Apr May Tun ]ul Aug Sep Oct Nov Dec
2017 251.3 252.7 252.7 253.9 253.8 254.4 255.5 258.2 258.5 261.7 264.2 264.6
2018 268.9 273.9 275.5 274.8 276.9 278.7 278.9 279.0 279.2 279.5 278.5 279.0
2019 278.7(P) 283.0(P) 285.3(P) 283.3(P)
P:Preliminary.All indexes are subject to revision four months after original publication.
Acceptance:
_________________________________________________________
Laura Hill, Mayor Date
Attested By:
_________________________________________________________
Amy Shelley Date
City Secretary
CITY OF
SOUTH LA10E ORIGINAL DOCUMENT
CITY OF SOUTHLAK.E
Council Action:Y4
Sole Source Memo Ord./Res. No. �-
Date 10/4/2018 Date Approved !� 1
To: Shana Yelverton, City Manager
From: Jack Thompson, PW 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
FFCompatibility-must match existing brand or equipment for compatibility
RReplacement part-for a specific brand of existing equipment
✓ Unique design -must meet physical design or quality requirements
F Other-
Describe the purpose of the purchase of goods or services and why this is a sole source:
Thioguard 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 pro ure nt re u t 'accurate and complete to the best of my knowledge and belief.
Director Approva
Based upon the above, I authorize the sole source acquisition of the goods or services specified.
/ w
Approved Date /0 ! ��
Shana YelveUn, City Manager
/� -
CAROL ANN SORGES, MC
CITY SECRETARY *�
s�Rk`�4,0®r;;0Z 4q,4er��
?REMIER
MAGNESIA, LLC
10/11/2018
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@premiermagnesia.com