Item 4E MemoMEMORANDUM
(June 16, 2020)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Item 4E
Subject: Approve an annual purchase agreement for providing odor
control treatment at the City's wastewater lift stations with
Premier Magnesia, LLC. in an amount not to exceed $120,000
for a 12 -month period.
Action
Requested: Approve an annual purchase agreement for providing odor control
treatment at the City's wastewater lift stations with Premier
Magnesia, LLC. in an amount not to exceed $120,000 for a 12 -month
period.
Background
Information: The City pre -treats the wastewater flows at the Shady Lane and
Lonesome Dove lift stations before it flows to the Trinity River
Authority (TRA) treatment plant. The pre-treatment with Thioguard is
necessary for 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 prevention 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 this chemical treatment,
it eliminates the need for City crews to remove and dispose of excess
grease.
Page 1 of 3
Item 4E
Over the last few years, the Wastewater and Environmental Divisions
have been working collectively to reduce the amount of grease that
enter the wastewater system. The FOG program was created to
address the large amount of grease that derive from food
establishments. The FOG team has met with over 100 food
establishments within the City to educate on the proper maintenance
of their grease trap. Through enforcement and cooperation from
these food establishments, the Wastewater Division has seen a
decrease of grease that enter the system, therefore has reduced its
dosage amount of Thiogard as pre-treatment.
Financial
Considerations: Under the proposed agreement, the cost per gallon will increase from
$2.91 per gallon to $3.25 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
continue to decrease in usage levels due to the efforts of the
Wastewater and Environmental Divisions.
The last four fiscal years, the City has spent the following with
Premier Magnesia, LLC.:
• FY 2017, $ 115,173
• FY 2018, $
• FY 2019, $
• FY 2020, $
144,919
73,162
64,870 — To date
Funding for providing odor control treatment at the City's wastewater
lift stations is budgeted in the FY 2020 Utility Fund budget.
Strategic Link: This item links to the City's Strategy Map strategic focus areas of
Performance Management & Service Delivery. It specifically relates
to the City's Corporate Objectives, 132: Collaborate with Select
Partners to Implement Service Solutions, and F2: Invest to Provide
& Maintain High Quality Public Assets.
Citizen Input/
Board Review: None
Legal Review: None.
Alternatives: The City Council may approve or deny the agreement.
Page 2 of 3
Item 4E
Documents: Attachment A: Premier Magnesia, LLC — Thioguard Annual Contract
Pricing
Attachment B: Premier Magnesia, LLC — Sole Source Letter 2019
Staff
Recommendation: Approve an annual purchase agreement for providing odor control
treatment at the City's wastewater lift stations with Premier
Magnesia, LLC. in an amount not to exceed $120,000 for a 12 -month
period.
Staff Contact: Rob Cohen, Director of Public Works
Kyle D. Hogue, P.E., Deputy Director/City Engineer
Jack Thompson, Operations Manager
Page 3 of 3
Jason Arellano, Wastewater Supervisor,
City of Southlake, TX
ig �Ilano�@cj.s�outhlg�ke.tx�.us
Re: Annual Contract Pricing Renewal
Mr. Arellano:
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 $3.25/ gallon effective July 1,
2020 through and ending June 30, 2021.
The biggest change we see this year with our product is that we have closed our facility
in El Dorado AR that was suppling at 56% concentration of Thioguard to your facilities.
We are now supplying a 60% concentration of Thioguard from our Houston location to
your two lift stations. You will find with this higher concentration the daily usage will
reduce by the gallon. The dry tonnage will stay the same. To explain this further we
have entered your estimated daily data in the tables on the following page. Overall,
you will see a net savings of $1,883.00 per year.
Premier Magnesia very much appreciates your cooperation and looks forward to a
continued long-term relationship as a quality supplier.
Product
Thioguard HR
Thioguard
Thioguard Costs Savings/Year
Chemical Formula
Mg(OH)2
Mg(OH)2
$1,883.16
MW
58.32
58.32
100.09
Alk Equivalence
1.72
1.72
1
Product Concentration
60%
56%
Lbs/Gallon
12.72
12.28
Thioguard to Thioguard HR
Lbs Chem/Dry Gallon
7.632
6.8768
11%
Lbs Alk/Gallon
0.13
0.12
11%
Gallons/Dry Ton
262.05
290.83
Total Daily Usage
55
100
-10%
Total Daily Lbs of Alk Added
12
12
Annual Dry Tons
126
126
Annual Truckloads
9
10
-10%
Cost Per Dry Ton
$852
$867
Cost Per Dry Pound
$0.43
$0.43
-2%
Cost Per Gal
$3.25
$2.98
Cost Per lbs of Alkalinity
$24.83
$25.27
Daily Cost
$292.84
$298.00
Thioguard HR savings/yr
Annual Cost
$106,886.84
$108,770.00
$1,883.16
Thioguard: Non -Hazardous
MgWater
ESSEWML -10 LIFE
Annual Cost Savings with Thioguard HR
Thioguard HR Thioguard Cost Savings Per Year
Product
Thioguard HR
Thioguard
Cost Savings Per Year
Annual Cost
$106,886.84
$108,770.00
$1,883.16
;card HR
;card
Savings Per Year
r
15�TY OF
OUTHLAKE
Date 11/0712019
To: Shana Yelverton, City Manager
From: Jason Arellano, 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
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
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.
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 ole source
Director Approv,
Shana Yelverton, City
)m
,rues is accurate and complete to the best of my knowledge and belief.
, I authorize the sole source acquisition of the goods or services specified,
November 7, 2019
Jason Arellano
City of Southlake
Wastewater Supervisor
1950 E. Continental Blvd.
Southlake, Tx. 76092
Re: Premier Magnesia, LLC -- Thioguard® Sole Source Procurement
Dear Jason:
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