Placement: Consent Agenda
Action Requested: Motion / Vote
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Approve Amendment #3 for Contract #20180029 to Purchase Magnesium Hydroxide and Equipment Services from Premier Magnesia, LLC.
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Submitted By: Nadia Tourjee, Procurement Management Department (PMD)
Strategic Plan Link: The City's Goal of high-quality infrastructure and facilities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Nadia Tourjee, (PMD).
2. Parties: City of Port St. Lucie and Premier Magnesia, LLC.
3. Purpose: Thioguard is used to control odor, reduce corrosion, reduce collection system gas binding, and to help maintain minimum alkalinity levels for the nitrification process at the Wastewater Treatment Plants (WWTP).
4. New/Renewal/Modified: Modified.
5. Duration: Continuing Contract.
6. Benefits to Port St. Lucie: Thioguard is well suited for our wastewater plants and collection system to control odors and gases and enhance biological treatment processes safely.
7. Cost to Port St. Lucie (Annual and Potential): The previous price per gallon was $3.11 per gallon. At $3.11 per gallon, the estimated annual expenditures for these goods and services were $520,000 based on the City's ordering volume. This Amendment #3 contemplates a price increase to $3.73 per gallon. The price increase to $3.73 per gallon revises the City's estimated annual expenditures to $650,000.
Presentation Information: N/A.
Staff Recommendation: Move that the Council approve Amendment #3 for Contract #20180029 to purchase Magnesium Hydroxide and Equipment Services from Premier Magnesia, LLC.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve Amendment #3 for Contract #20180029.
2. Move that the Council not approve Amendment #3 for Contract #20180029 and provide staff with direction.
Background: The City of Port St. Lucie entered into Contract 20180029 with Premier Magnesia, LLC for the supply of magnesium hydroxide and equipment. Thioguard is a sole-source as Premier Magnesia, LLC is the only supplier of Thioguard technical grade magnesium hydroxide slurry. Thioguard adds additional alkalinity and raises the pH of the raw wastewater to shift the sulfide species from H2S to HS- (Bisulfide), thereby decreasing the concentration of aqueous phase H2S.
Adding Thioguard to the collection system significantly decreases the amount of destructive hydrogen sulfide in the collection system, which protects the vulnerable iron pipe portions from degradation. Degraded pipe is more likely to rupture, which causes leaks and reportable events to Florida Department of Environmental Protection. It is essential in the longer line run from Northport BPS to the Glades Wastewater Treatment Facility. Adding Thioguard to the collections system also benefits the Glades Wastewater Treatment Facility process by adding valuable alkalinity and raising the pH of the influent wastewater. The chemical characteristics of the influent wastewater are such that the designed biological processes at the plant can mitigate and treat higher nitrogen levels and adapt to more significant fluctuations in nutrient levels without adverse effects. The addition of the chemical is beneficial in a way that is hard to quantify due to the variable nature of repair costs and environmental impacts from a line break in the collection system. Optimized treatment processes are also challenging to put a number on when assessing compliance parameters at the treatment facility. Until process and operational improvements can be made to the system, it benefits the City to add the chemical.
Issues/Analysis: Staff reviewed the price increase request from Premier Magnesia, LLC and found it fair and reasonable. The indexes have increased since the last price quote and index graphs can be found in Attachment 2. The Utilities System Department requires a firm to supply all the equipment necessary for the injection of this chemical. While there are other firms that sell magnesium hydroxide, Premier Magnesia is the only firm that provides all the equipment associated with injecting the product. Purchasing the equipment separately would be costly both from an acquisition and maintenance perspective.
Financial Information: Funds are appropriated in the Utility Op Fund / Westport Wastewater Plant / Chemicals (#431-3512-552300-00000) and Utility Op Fund / Glades Wastewater Treatment Plant / Chemicals (#431-3513-552300-00000).
Special Consideration: N/A.
Location of Project: Various Lift Stations throughout the City.
Attachments:
1. Vendor Executed Amendment #3.
2. Premier Magnesia Price Increase Request.
3. Amendment #2.
4. Amendment #1.
5. Original Contract.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 23282-04
Legal Sufficiency Review:
Reviewed by Alyssa Lunin, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.