Item 4I MemoCITY OF
SOUTI-HLAKE
MEMORANDUM
(June 7, 2022)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Item 41
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 $130,000
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 $130,000 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 41
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 in the amount of grease that enters 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
$3.25 per gallon to $3.34 per gallon for the upcoming year due to the
cost in materials and fuel for delivery. 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
remain constant due to the efforts of the Wastewater and
Environmental Divisions.
The last four fiscal years, the cost per gallon for Thioguard has been:
• FY 2018, $2.77/gallon
• FY 2019, $2.84/gallon
• FY 2020, $2.91 /gallon
• FY 2021, $3.25/gallon
In addition, in the last four fiscal years, the City has spent the
following with Premier Magnesia, LLC.:
• FY 2019, $ 73,162
• FY 2020, $ 89,818
• FY 2021, $ 101,773
• FY 2022, $ 64,200 — to date
Funding for providing odor control treatment at the City's wastewater
lift stations is budgeted in the Utility Fund via the Wastewater
Operating budget.
Strategic Link: This item links to the City's Strategy Map strategic focus areas of
Infrastructure and 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
Page 2 of 3
Item 41
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 2022
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 $130,000 for a 12-month
period.
Staff Contact: Rob Cohen, Director of Public Works
Jack Thompson, Deputy Director of Public Works — Operations
Page 3 of 3
Attachment A
.?...REMIER
MAGNESIA, LLC
May 9, 2022
Jason Arellano
City of Southlake
Wastewater Supervisor
1950 E. Continental Blvd.
Southlake, Tx. 76092
Re: Premier Magnesia, LLC — Contract Extension
Dear 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 $3.34/gallon effective July 1, 2022. This reflects a 3% increase over
last year's pricing of $3.25 this is an effort to recoup some of the additional costs we have seen in transportation and
fuel over the last year. This does not reflect a PPI Index increase of 16% that everyone is feeling right now.
I trust you will find this acceptable,
Regards,
Steven LeBlanc
South Central Regional Account Manager
Premier Magnesia, LLC
214.226.7797
sleblanc@premiermagnesia.com
Attachment B
7731-
ar-wREWIER
MAGNESIA, LLC
May 9, 2022
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,
.5&"w Zeg&w
Steven LeBlanc
South Central Regional Account Manager
Premier Magnesia, LLC
214.226.7797