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Item 5ECity of Southlake, Texas MEMORANDUM June 20, 2006 To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Public Works Director Subject: Authorize an Annual Purchase Agreement with Premier Chemical for odor control treatment at lift stations. Action Requested: Authorize an Annual Purchase Agreement with Premier Chemical for 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 60 -day trial, 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: The FY 06 has funding for this service in the amount of $63,800. Citizen Input/ Board Review: None Legal Review: None. Alternatives: The City Council may approve it, deny this proposal. Supporting Documents: Agreement Sole Source Documentation Staff Recommendation: Authorize an Annual Purchase Agreement with Premier Chemical for odor control treatment at lift stations. Staff Contact: Robert H. Price, P.E., Public Works Director Chuck Kendrick, Public Works Operations Manager CHEMICALS, LLC April 21, 2006 Chuck Kendrick Public Works Operations Manager City of Southlake Phone (817) 748 -8080 Fax (817) 748 -8103 ckendrickn_a ci.southlake.tx.us Re: Annual Contract Pricing Chuck: Pursuant to your request for an annual contract for Thioguard, I am submitting this letter and a copy of the original trial proposal to outline the terms of agreement, as an extension of the trial. As noted in the proposal and with the project extension, Southlake will be invoiced $5,000.00 for installation and set -up. 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.. 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 HAS gas odor /corrosion results. On a daily basis, we are estimating 40 -70 gallons of Thioguard consumed per day for the 0.7 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: 7/1/2006 — 6/30/2007 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. *With the completion of a successful 60 -day trial period, the use of Thioguard can be extended at the $2.35 per gallon rate (FTL only). Southlake would be assessed a one -time recuperative $5, 000.00 equipment installation and project start -up fee. 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 13325 Kingman Dr. Austin, TX 7872910: 512- 331 -4368 1 F: 512- 996 -8461 http: //N�ANA� I mmadolora� 'apremierchemicals.com � L 7 jr�) � J � • d � 4'iii��� � CHEMICALS, LLC 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 0 230/460 3 -phase 20 amp disconnect located near the Thioguard units o Contact closure indicating when lift station pumps are running, where applicable 0 4 -20 ma output signal indicating lift station pump speed for VFD stations or variable metered flow conditions • WATER o Fresh -water hose bib • FEED POINT o Premier designated access point for Thioguard feed injection • ACCESS o Unencumbered access to feed units: key to gate and doors with unlimited hours of access • DELIVERIES o Adequate access and safety for delivery by tanker truck. • TRIAL COMPLETION o Cleanout of equipment upon completion of trial in preparation for pick -up by Premier Proposal Acceptance: Signature Title Print Name 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 13325 Kingman Dr. Austin, TX 7872910: 512- 331 -4368 1 F: 512- 996 -8461 http : /h�Avw.Premierchernicals.com I mmadolora� 'apremierchemicals.com