Item 4BCITY OF
SOUTHLAKE
MEMORANDUM
(June 4, 2013)
To: Shana Yelverton, City Manager
From: Robert H. Price, P.E., Director of Public Works
Subject: Approve an annual agreement for providing odor control
treatment at lift stations with Premier Magnesia, LLC in the
amount of $127,977
Action
Requested: Approve an annual agreement for providing odor control treatment
at lift stations with Premier Magnesia, LLC in the amount of
$127,977
Background
Information: Since the construction of the Shady Lane and Lonesome Dove
Sanitary Sewer Lift Stations in 2000, the city has had to treat the
wastewater to prevent hydrogen sulfide production in the sewer
system from affecting the residents of the Kirkwood Hollow
neighborhood. Premier Magnesia has been providing this service
for Southlake and Trinity River Authority since 2006 because
previous attempts to control the hydrogen sulfide with other
products were not successful. Under the proposed agreement, the
cost per gallon will increase from $2.53 to $2.55 per gallon.
Premier Magnesia is a sole source provider and patent holder 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.
Staff is recommending that Council accept the proposal offered by
Premier Magnesia, LLC to guarantee a rate $2.55 per gallon for
their services for a 12-month period with an estimated annual cost
of approximately $127,977.
Financial
Considerations: Funding for this program is available in the current operating
budget of the Waste Water Division.
Strategic Link: The annual purchase agreement for the Magnesia treatment of
wastewater links to the city's strategy map relative to the strategic
focus area of Performance Management and Service Delivery. The
specific corporate objectives that are met by this agreement
include: Providing high quality customer service by eliminating
odors released in the collection system and optimizing the use of
technology with state of the art treatment of wastewater.
Citizen Input/
Board Review: N/A
Legal Review: None
Alternatives: The City Council may approve or deny the agreement to provide
odor control treatment at lift stations.
Supporting
Documents: Annual Contract Pricing Renewal Letter
Patent Documentation
Staff
Recommendation: Approve an annual agreement for providing odor control treatment
at lift stations with Premier Magnesia, LLC in the amount of
$127,977
Staff Contact: Robert H. Price, P.E., Public Works Director
Chuck Kendrick, Deputy Director of Public Works - Operations
Q Q DOD Q QQOQ fl
MAGNESIA, LLC
April 17, 2013
Chuck Kendrick
Public Works Operations Manager
City of Southlake
Phone (817) 748-8080
Fax (817) 748-8103
ckendrick@ci.southlake.tx.us
Subject: 2013-2014 Thioguard — Magnesium Hydroxide Pricing
Chuck:
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 $2.55 effective July 1st through and ending June 30tn
2014.
At the current combined rate of usage for Lonesome Dove and Shady Lane of 125 gallons per day, plus
or minus 10% for seasonal variability, estimated annual costs are between $104,709 and $127,977.
Premier Magnesia very much appreciates your cooperation and looks forward to a continued long-
term relationship as a quality supplier.
Sincerely,
Mary P. Evans
South Central Regional Account Manager
Premier Magnesia, LLC
Thioguard TST
Phone: 903.245.6316
20108 CR 186
Flint, Texas 75762
Email: mevans@premiermagnesia.com
http://data.bls.gov/timeseries/PCU325---325---?data tool=XGtable
Q Q DOD Q QQOQ fl
MAGNESIA, LLC
April 17, 2013
Subject: 2013-2014 Thioguard — Magnesium Hydroxide Pricing
Acceptance:
Signature
Title
Print Name
Date
Databases & Tools w
Databases, Tables & Calculators by Subject
Change Output Options. From, 2609 To: 2412
ginclude graphs
Data extracted on. February 24, 2012 (3,02,20 PM)
Producer Price Index Industry Data
series Id: FCU325--- 325---
Industry: Chemical Mfg
Product: Chemical Mfg
Base Data: L984L2
260-
r� 25
m
24
C 23
2201 1
01 J09 05J09 0909 01 A 0 05A 0 09l10 01 A 1 05A 1 09l11 01I12
Month
Download: 1 ,xis
Year
3ien
Feb
Mar
r
M
Nn
N,
Au
Se
Oct
Nov
D0C
Annual
2009
226.7
225.1
224.6
223.6
222.8
222.4
224.1
224.0
225.1
225.0
225.4
227.3
224.7
2010
228.7
231.3
232.0
234.1
233.4
232.6
233.5
233.7
234.6
236.3
236.8
237.6
233.7
2011
242.6
245.0
247.6
250.2
252.8
253.4
255.1
255.2
256.7
255.9 P
256.2 P
255.7 P
252.1 P
2012
257.0 P
P : Preliminary.
All
indexes are su b)ect to revision four months arter o Mg
inal p ubIication.
htLI2:://www.eia.gov/12etroleum/gasdiesel/
3
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMD EPD2DXL0 PTE NUS DPG
&f=W
Weekly U.S. No 2 Diesel Ultra Low Sulfur (0-15 ppm) Retail Prices
(Dollars per Gallon)
4.25
4
3.75
3.5
3.25
3
2.75
2.5
2.25
2
—Weekly U.S. N❑ 2 Diesel Ultra
Low Sulfur (0-15 ppm ] Retail
Prices (Dollars per Gallon)
a a a a o o a o ti ti� ti ti
0 o v o ti ti ti ti ti ti ti ti ti
0 0 0 0 0 0 0 0 0 0 0 0 0
o'o'a'o'o'o'o'o'o'o'o'o'a'
0
--4
PETROLEUM & OTHER LIQUIDS J-00,; #,mm
OVERVIEW I DATA - ANALYSIS & PRQIECTIONS - GLOSSARY i FAQS
View History: (DWeekly OMenthlyAnnua] Download Data ME File}
Weekly U.S. No 2 Diesel ultra Low Sulfur [0-15 ppm] Retail Prices
5.0
4.5
c� 4.0
R3.5 tea'
0 tiw J'
3.0 r'4..�.+
c ..yam
2.5
2.0
2007 2008 2009 2010 2011 2D12
Week 1 WaLk 2 Week 21 Week 4 Wee
Year -Month I End data I Value End date I Value I End date I Value End data I Value End date
2010,Jan
01104
2.801
01111
2.882
01118
2.874
01125
2.838
2010-Feb
02101
2.787
02108
2.775
021I5
2.761
02122
2.834
2010-Mar
03MI
2.865
03108
2.906
03115
2.926
03122
2.949
03129
2.942
2010-Apr
04M5
3.017
04112
3.073
04119
3.078
M26
3.082
2010-May
05103
3.126
05110
3.131
05117
3.098
05124
3.025
05131
2.983
2010-Jun
06A)7
2.949
06114
2.930
06121
2.962
0612 8
2.957
201"u l
07105
2.925
07112
2.904
07119
2.899
07126
2.919
2010-Aug
08102
2.928
08109
2.991
08116
2.979
OM23
2.957
OV30
2.938
2010-Sep
09M6
2.931
09113
2.943
09120
2.%0
09127
2.951
2010 W
1 Wm
3.000
1 & 1 1
3.OW
1011E
3.073
10125
3.067
2010-Nov
11101
3.067
11108
3.116
11115
3.184
11122
3.171
11129
3.162
2010-Dec
12146
3.197
ID13
3.231
1D20
3.24E
ID27
3.294
2011-Jan
01103
3.331
01110
3.333
01117
3.407
01124
3.430
01131
3.438
2011-Feb
02107
3.513
OD14
3.534
02121
3.573
02128
3.716
2011-Mar
03107
3.871
03114
3.908
03121
3.907
0312E
3.932
2011-Apr
04M
3.976
o4111
4.07E
OV18
4.105
OV25
4.09E
2011-May
05102
4.124
05109
4.104
05116
4.061
05123
3.997
05130
3.948
201I-Jun
0&%
3.940
OW13
3.954
OW20
3.950
W27
3.888
2011 tit u I
07M
3.850
0711 1
3.899
07118
3.923
07125
3.949
2011-Aug
OEM
3.937
0810E
3.897
08115
3.835
08122
3.810
08129
3.820
2011-Sep
09105
3.868
09112
3.862
09119
3.833
OW26
3.786
2011 W
1 OM3
3.749
10110
3.721
1 & 17
3.801
10124
3.825
10131
3.892
2011-Nov
11107
3.887
11114
3.987
11121
4.010
11128
3.964
2011-Dec
12105
3.931
12112
3.894
12119
3.828
12126
3.791
2012-Jan
01102
3.783
01149
3.828
01116
3.854
01123
3.848
01130
3.850
2012-Feb
02106
3.856
02113
3.943
02120
3.960
5
Ka^w_ :, -III D =-^1 , yypeyyy Retail! On-Hgheay Dead Pneea
Release Schedule
Weekl Retail On-Highwa
Diesel
Prices *
Printer -Friendly Version
J 27 �
on-uo
Siior emailnotiiieation
24-hour hotline: 202-586.6966
Notice: UDCOMiPQ Charoes tothe Gasolineand ❑kmel Fuel Update, the Weekhr U.S. Retail Gasolire and the Weekfv Retail
Or-Hiahkva� diesel Price ro rts
Weekly Retail On -Highway Diesel Prices
Reference
(Dollars per gallon. Including all taxes)
prices for Last 53 Weeks
Region ICM4111 10f31111
I If0711I
Change from
Change from
(html) (text)
week ago
year ago
Spreadsheet of Complete
U.S. 3.825 3.892
3.887
-0.005
C.771
Diesel Historical Data (,xls)
East Coast 3.832 3.886
3.875
-0.011
0.761
Diesel ruel Taxes
New England 3.925 3.935
3.950
0.015
0.780
Does EIA Calculate Diesel
Central Atlantic 3.946 3.994
3.997
0.003
C.772
Fuel Surcharges?
Lower Atlantic 3.775 3.836
3.816
-0.020
0.755
States in each Region
Midwest 3.782 3.866
3.863
-0.003
C.761
Data Collection Procedures
and Statistical Methodology
Gulf Coast 3.745 3.808
3.796
-0.012
0.766
Coefficient or Variation
Rocky Mountain 3.909 3.959
3.978
0.010
0.779
Report
matcaaat 4.049 4.1107
4.109
0.002
0.836
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U.S. East Coast New England Central Atlantic Lawer Atlantic
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Weekly U_S Retail On -Highway Diesel Prices
4.50
4.40
4.30
4.20
4.10
a.00
Sou
3.80
3.70
c 3.60
m 3.50
ca 5.,10
3.ou
n 3.20
3.10
3.00
a 2.00
0 2 00
2.70
2.80
2.50
2.40
2.30
2.20
210
2.00
a a o o a a
Same: Energy lnIarrne6mAaninwtratm
0