Title
MOTION TO AUTHORIZE THE PURCHASE OF SODIUM HYDROXIDE 25% AND 50% BY WEIGHT ON AN AS-NEEDED BASIS FROM BRENNTAG MID-SOUTH, INC. UTILIZING THE PINELLAS COUNTY AGREEMENT BID# 23-0392-ITB FOR AN ANNUAL AMOUNT NOT TO EXCEED $47,080, PURSUANT TO SECTION 35.18(C)(5) OF THE CITY'S CODE OF ORDINANCES.
Summary Explanation and Background
PROCUREMENT PROCESS TAKEN:
- Chapter 35 of the City’s Code of Ordinance is titled “PROCUREMENT PROCEDURES, PUBLIC FUNDS.”
- Section 35.18 of the City's Code of Ordinance is titled "COMPETITIVE BIDDING OR COMPETITIVE PROPOSALS REQUIRED; EXCEPTIONS."
- Section 35.18(C) states that "Only the following situations are exempt from the competitive bid and competitive proposal requirements of this section:"
- Section 35.18(C)(5) states that "Commodities or services that are the subject of contracts with the state its political subdivisions or other governmental entities including the United States government, are exempt from the competitive procurement process.”
- Section 35.21 of the City's Code of Ordinances is titled "AWARD OF CONTRACT."
- Section 35.21(A) of the City's Code of Ordinances is titled "City Commission approval."
- Section 35.21(A)(1) states, "An initial purchase of, or contract for, commodities or services, in excess of $25,000, shall require the approval of the City Commission, regardless of whether the competitive bidding or competitive proposal procedures were followed."
SUMMARY EXPLANATION AND BACKGROUND:
1. The Utilities Department Wastewater Treatment Plant (WWTP) requires the use of sodium hydroxide (NaOH) as part of the treatment process for odor control. The WWTP East Scrubber uses NaOH 50% concentration by weight while the WWTP Central Air Scrubber uses NaOH 25% by weight.
2. On March 6, 2024, City Commission approved the purchase of NaOH 25% concentration from Brenntag Mid-South, Inc., utilizing pricing from the Pinellas County agreement, Bid No. ITB # 23-0392 for an estimated amount not to exceed $61,720.
3. On April 16, 2025, the Contracts Database report listed the caustic soda agreement as a non-renewal because the awarded vendor, Brenntag Mid-South, Inc., chose not to renew its contract with the City. Brenntag’s decision was based on the fact that the City did not purchase any caustic soda during the original contract term.
During that term, both scrubbers at the Wastewater Treatment Plant (WWTP) were inoperable, so caustic soda was not required for odor control. Now that the scrubbers are operational again, caustic soda is once more necessary for proper operation.
4. Pinellas County renewed its agreement (ITB #23-0392) with Brenntag Mid-South, Inc. for an additional 24 months, extending the term from July 17, 2025, through July 17, 2027. Under the terms of the contract, Brenntag Mid-South, Inc. is eligible to request an annual CPI-based price adjustment; however, the vendor has opted to maintain its original contract rates, as shown below.
|
|
NaOH by |
Price Per |
|
Description |
Weight |
Gallon |
|
Bulk Delivery (>3,500 gallons) |
50% |
$2.79 |
|
Non-Bulk Delivery (500-3,500 Gallons) |
50% |
$3.14 |
|
Bulk Delivery (>3,500 gallons) |
25% |
$1.22 |
|
Non-Bulk Delivery (500-3,500 Gallons) |
25% |
$2.44 |
5. The Central Air Scrubber, which uses NaOH 25%, has a 6,700-gallon holding tank and can accept bulk tanker loads. The annual estimated usage for NaOH 25% is 18,000 gallons at the bulk delivery rate of $1.22. The estimated annual cost is $21,960.
6. The City’s East Scrubber, which uses NaOH 50%, has a 900-gallon holding tank and can only accept non-bulk deliveries. The annual estimated usage for NaOH 50% is 8,000 gallons at the non-bulk delivery rate of $3.14, equating to an estimated annual cost of $25,120.
7. Staff recommends City Commission’s authorization of the purchase of sodium hydroxide 25% and 50% by weight on an as-needed basis from Brenntag Mid-South, Inc. utilizing the Pinellas County agreement bid #23-0392-ITB for an annual amount not to exceed $47,080, pursuant to Section 35.18(C)(5) of the City's Code of Ordinances.
Financial Impact
FINANCIAL IMPACT DETAIL:
a) Initial Cost: $47,080 annually
b) Amount budgeted for this item in Account No: Funds are budgeted in Account no. 471-535-6022-552430-0000-000-0000- (Operating chemicals)
c) Source of funding for difference, if not fully budgeted: Not Applicable.
d) 5 year projection of the operational cost of the project
|
|
FY 2026 |
FY 2027 |
FY 2028 |
FY 2029 |
FY 2030 |
|
Revenues |
$0 |
$0 |
N/A |
N/A |
N/A |
|
Expenditures |
$47,080 |
$37,272 |
N/A |
N/A |
N/A |
|
Net Cost |
$47,080 |
$37,272 |
N/A |
N/A |
N/A |
e) Detail of additional staff requirements: Not Applicable.
FEASIBILITY REVIEW:
A feasibility review is required for the award, renewal and/or expiration of all function sourcing contracts. This analysis is to determine the financial effectiveness of function sourcing services.
a) Was a Feasibility Review/Cost Analysis of Out-Sourcing vs. In-House Labor Conducted for this service? Not Applicable.
b) If Yes, what is the total cost or total savings of utilizing Out-Sourcing vs. In-House Labor for this service? Not Applicable.