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Item 4G - MemoItem 4G Page 1 of 3 M E M O R A N D U M (June 20, 2023) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works 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 $135,000 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 $135,000 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. Item 4G Page 2 of 3 Since 2017, the Wastewater and Environmental Services 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 coordinates with food establishments within the City to educate them on the proper maintenance of their grease trap. Through outreach, cooperation, and enforcement of these food establishments, the cognizant disposal of grease helps to reduce hydrogen sulfide levels in the sanitary sewer system aiding in the reduction of Thioguard needed. Financial Considerations: Under the proposed agreement, the cost per gallon will increase from $3.34 per gallon to $3.65 per gallon for the upcoming year due to the cost in materials and delivery. Premier Magnesia is a sole source provider for Thioguard technical grade magnesium hydroxide slurry. The last four fiscal years, the cost per gallon for Thioguard has been: • FY 2019, $2.84/gallon • FY 2020, $2.91/gallon • FY 2021, $3.25/gallon • FY 2022, $3.34/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, $110,300 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: These items link to the City’s Strategy Map by delivering on the focus area of Infrastructure & Development. It provides this by focusing on B2: 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. Item 4G Page 3 of 3 Supporting Documents: Attachment A: Premier Magnesia, LLC – Thioguard Annual Contract Pricing Attachment B: Premier Magnesia, LLC – Sole Source Letter 2023 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 $135,000 for a 12-month period. Staff Contact: Rob Cohen, Director of Public Works Jack Thompson, Deputy Director of Public Works – Operations