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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