Approve a one-year renewal  for the "ANNUAL SUPPLY OF SODIUM HYDROXIDE (LIQUID CAUSTIC SODA) Bid No. 025-2821-15/JMA to Brenntag Mid-South Inc. of Orlando, FL with a $45.00 per ton increase from $498 per ton to $543 per ton. This product will be ordered on an "As Needed" basis for the estimated annual expenditure of $150,000.    

BID RENEWAL TERM:  MARCH 2, 2017 TO MARCH 1, 2018

On February 17, 2015, City Commission approved the bid award to Brenntag Mid-South, Inc. to provide the City with Sodium Hydroxide (Liquid Caustic Soda).  The awarded bid price was $498.00 per ton.  The price has remained the same for the two year period March 2, 2015 thru March 1, 2017.  Brenntag Mid-South’s supplier of caustic soda has increased their product pricing six (6) times in 2016 and is requesting an increase in accordance with the City's bid documents and renewal options. 

Our bid document allowed for “Cost Adjustments” provided that the vendor notifies the City in writing and includes documentation of the requested price increase.  Brenntag has complied with this requirement and has provided copies of letters from their supplier notifying Brenntag of the cost per ton increases.  Effective March 2, 2017, Brenntag's price per ton for caustic soda would be $543.00, an increase of approximately 9%. 

Finance has reviewed the request and recommends approval of the increase for the renewal period March 2, 2017 thru March 1, 2018.

Feed water to the West Water Treatment Plant (West WTP) has a high pH and contains the dissolved gas hydrogen sulfide. Sulfuric acid is therefore added to the feedwater before the membrane filtration system to lower the pH, thereby aiding in reducing the formation of calcium carbonate scale on the membranes. However, this produces carbon dioxide which, along with hydrogen sulfide, remains dissolved in the water and is not separated out by the membrane system. During the degasification process that follows, sodium hydroxide is added to the system to neutralize the corrosive and noxious odors associated with the release of hydrogen sulfide to the atmosphere. This addition also raises the pH which prevents scaling of the pipelines to the consumer. Thus, minimal adjustment of pH or removal of hydrogen sulfide would pose great risks to the City’s infrastructure and to public health.

Funds are available in account number 401-2811-536-52-35.

 Actual Expenditure for Sodium Hydroxide in FY 2014/2015:   $66,300.00

 Actual Expenditure for Sodium Hydroxide in FY 2015/2016:   $80,000.00

The lower than normal usage over the last fiscal years was due to the West WTP operating at a lower capacity.  The projected expenditure for the renewal year is anticipated to be approximately $150,000.

The City of Boynton Beach could explore the use of other neutralizing agents or anti-scalants. However, this may lead to higher water treatment costs or possible water quality infractions.