Item 4JCity of Southlake, Texas
M E M O R A N D U M
June 5, 2007
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Public Works Director
Subject: Approve an agreement with Premier Chemicals, L.L.C. to provide
odor control treatment at lift stations
Action
Requested:
Approve an agreement with Premier Chemicals, LLC to provide odor
control treatment at lift stations.
Background
Information:
Since the construction of the Shady Lane and Lonesome Dove Sanitary
Sewer Lift Stations in 2000 the city has spent approximately $65,000 per
year to prevent Hydrogen Sulfide production in the sewer system affecting
the residents of the Kirkwood Hollow neighborhood. Because the old
technology was failing to produce acceptable results staff found another
treatment process which has been in place on a trial basis since the middle
of April. Because of the successful performance during the last year, staff
is recommending that council accept the proposal offered by Premier
Chemical, LLC to guarantee a rate for their services for a 12-month period
with an estimated annual cost of approximately $60,000.00. Premier
Chemical is a sole source provider of this technology.
An additional benefit to this technology is the prevention of grease
buildup in the lifts stations eliminating the need for City crews to remove
and dispose of excess grease.
Financial
Considerations:
Funding for this item in the amount of $65,000 is available in the current
operating budget.
Citizen Input/
Board Review:
None
Legal
Review:
None.
Alternatives:
The City Council may approve or deny this agreement.
Supporting
Documents:
Agreement
Sole Source (Patent) Documentation
Staff
Recommendation:
Approve an agreement with Premier Chemicals, LLC to provide odor and
corrosion control treatment in the sanitary sewer collection system.
Staff
Contact:
Robert H. Price, P.E., Public Works Director
Chuck Kendrick, Deputy Director of Public Works - Operations
April 30, 2007
Chuck Kendrick
Public Works Operations Manager
City of Southlake
Phone (817) 748-8080
Fax (817) 748-8103
ckendrick@ci.southlake.tx.us
Re: Annual Contract Pricing Renewel
Chuck:
Pursuant to your request for a renewal of the annual contract for Thioguard, I am submitting this letter to
outline the original terms of agreement. You can submit Purchase Orders on a per load basis, or a Blanket
PO for the duration of the price in effect. Pricing after the term noted may change due to changes in
production costs, freight, etc. Please note, annual usage may go up as a result of increased flows through
the treated Southlake system, since we currently feed proportionally to flow. Prior to the previous contract
year, flows were estimated at 0.7 mgd. Please adjust accordingly if flows have changed.
Expected Thioguard Costs
Dosing:
Product dosages may range from 40-95 gallons of Thioguard per million gallons of wastewater
treated. An initial dosage rate is calculated by taking the total dissolved sulfide measurement and
multiplying by 1.7. In this case, a range of 10-25 mg/L dissolved sulfides measured at the Lonesome Dove
and Shady Lane FM discharge times 1.7 would equate to an initial dosage of 17-42.5 gallons of Thioguard
per MGD of wastewater to be treated. Additional Thioguard is added to account for certain wastewater
factors such as initial pH, FOG, CO, retention time and desired HS gas odor/corrosion results. On a daily
22
0.7
basis, we are estimating 40-70 gallons of Thioguard consumed per day for the mgd treatment lines
associated with the Lonesome Dove and Shady Lane LS.
THIOGUARD: $2.35/gallon delivered to Southlake
Truckload of material (~3,650 gallons of Thioguard)
Valid: 7/1/2007 – 6/30/2008
Estimated Annual Cost (at max dosage): $60,042.50
On an annual basis, at a maximum dosage rate of 100 gallons of Thioguard per mgd of
wastewater treated, total cost is estimated at 70 gpd x $2.35 x 365 = $60,042.50, although the
maximum dosage rate may not be necessary to obtain the desired results.
NOTE: The figures contained herein are based on approximate dosing schedules, as actual consumption
rates are typically verified during the trial period. In the absence of a trial, actual consumption rates can
only be determined during an initial adjustment period. The price per gallon is based on the following
assumptions:
Two feed locations (Lonesome Dove LS, Shady Lane LS)
Feed unit configuration allowing full-truckload deliveries
13325KingmanDr.Austin,TX78729|O:512-331-4368|F:512-996-8461
13325KingmanDr.Austin,TX78729|O:512-331-4368|F:512-996-8461
http://www.premierchemicals.com | mmadolora@premierchemicals.com
http://www.premierchemicals.commmadolora@premierchemicals.com
Premier will provide:
Storage tank/feed units appropriate for designed dosing requirements
(Premier retains ownership of all Thioguard feed equipment unless specifically
purchased by Southlake
Parts/Labor for regular interval maintenance
Material (Thioguard)
Data collection (w/ assistance from Southlake)
Reporting of Data Analysis
Requirements – To be provided by Southlake
SITE PREPARATION
Level firm pad to set the Thioguard feed units in place (a level gravel pad formed using 2x6
lumber 10x10 is adequate)
Boom truck or backhoe (w/ operator) to unload Thioguard equipment. (Approximate weight
empty = 2,500 lbs; approximate weight loaded = 37,000 lbs)
ELECTRICAL
230/460 3-phase 20 amp disconnect located near the Thioguard units
o
Contact closure indicating when lift station pumps are running, where applicable
o
4-20 ma output signal indicating lift station pump speed for VFD stations or variable
o
metered flow conditions
WATER
Fresh-water hose bib
o
FEED POINT
Premier designated access point for Thioguard feed injection
o
ACCESS
Unencumbered access to feed units: key to gate and doors with unlimited hours of
o
access
DELIVERIES
Adequate access and safety for delivery by tanker truck.
o
TRIAL COMPLETION
Cleanout of equipment upon completion of trial in preparation for pick-up by
o
Premier
Proposal Acceptance:
_________________________________ ________________________
Signature Print Name
_________________________________ ________________________
Title Date
Please do not hesitate to call if you have any questions or require additional information.
I look forward to working with you and Southlake.
Sincerely,
Matt
Matthew Madolora
Premier Chemicals
THIOGUARD
13325KingmanDr.Austin,TX78729|O:512-331-4368|F:512-996-8461
13325KingmanDr.Austin,TX78729|O:512-331-4368|F:512-996-8461
http://www.premierchemicals.com | mmadolora@premierchemicals.com
http://www.premierchemicals.commmadolora@premierchemicals.com
850 First Avenue
King of Prussia
PA 19406
Tel: (610) 962-8954
Fax: (610) 962-8958
February 6, 2006
Teresa Dryer
Department of Public Works
1950 E. Continental Blvd.
Southlake, Texas 76092
Re: Premier Chemicals, LLC’s THIOGUARD® Magnesium Hydroxide Slurry
Proposal to City of Southlake
Dear Ms. Dryer,
I have been asked to provide you a brief description of the claim coverage for U.S.
Patent No. 5,833,864, entitled METHOD FOR THE REDUCTION AND CONTROL OF THE
RELEASE OF GAS AND ODORS FROM SEWAGE AND WASTE WATER, (the "'864
Patent").
The patent relates to using magnesium oxide or hydroxide to control odor in
municipal sewerage or wastewater.
The '864 Patent includes 26 claims directed towards controlling odor in sewers by
adding magnesium hydroxide or magnesium oxide. For example, claim 1 broadly claims
controlling odor in municipal sewerage or wastewater that includes at least one compound
which can be reduced to form hydrogen sulfide. Odor is controlled by simply adding an
effective amount of magnesium hydroxide or magnesium oxide to the municipal sewerage or
wastewater.
I have included a copy of the patent with this letter.
Premier has spent a great deal of effort, research, time, trial and error, as well as
significant funds, in order to obtain the patent rights described above and to develop a
product of the quality that our customers require. We believe the efforts expended to obtain
such patent is indicative of the effort our Company will put forward to insure the City of
Southlakewill receive a competitive, efficient and high quality product that will produce
superior results.
I hope that this helps in your understanding of Premier’s patent position, however, if
you wish to discuss the enclosed or have any questions please do not hesitate to contact
me.
SOUTHLAKE THG PATENT LTR.
Very truly yours,
Stephen A. Becker
Vice President, General Counsel
and Secretary
cc: P. Ahl
R. Chase
M. Madalora
T. Miller
SOUTHLAKE THG PATENT LTR.