HomeMy WebLinkAbout05.b.01.a CA Chemical Supplier Contract 20-21-A5 5th Renewal EXECUTIVE SUMMARY
AGENDA ITEM:
Proposed Approval of the Fifth Chemical Supplier Contract Renewal ITB# 2020/2021-A5
Date: February 26, 2026
BACKGROUND:
The Chemical Supplier Contracts with Thatcher Chemical of Florida, Inc. and Odyssey
Manufacturing Co. are scheduled to expire on March 8, 2026. The contracts allow for annual
renewals for a maximum of six (6)years, contingent upon the mutual consent of both parties.
Both suppliers are interested in renewing the contract with the requested rate increases shown
below. Per the contract terms, CCUA may consider price increases during renewal periods based
on verifiable changes in the marketplace. Staff reviewed the requested increases and compared
them to current market conditions and determined the proposed rates are consistent with verifiable
market changes.
ITB# 20/21-A5 Old New
Chemical Supplier Description Unit Type Price Price
Odyssey Sodium Hypochlorite (NaOCI)- 12.5
Manufacturing Co. Trade Percent Non-Tanker Deliveries Gallon $1.53 $1.60
Thatcher Chemical
of Florida, Inc. Sodium Bisulfite 38%-40% Gallon $2.44 $2.68
BUDGET IMPACT:
Staff budgeted $965,000 for the above chemicals in the current fiscal year. The proposed price
increases can be accommodated within the approved operating budget.
RECOMMENDATION:
Staff respectfully requests the Board of Supervisors approval of the fifth renewal of the Chemical
Supplier Contracts, ITB #2020/2021-A5, for an additional one (1) year term, including the
proposed rate increases.
ATTACHMENTS:
Odyssey Manufacturing Co. Renewal Letter and Rate Increase Request
Thatcher Chemical of Florida, Inc. Renewal Letter and Rate Increase Request
//CS (Author)
//CS,DP,AE(Review)
II DM(Final)
&t„, couNT Clay County Utility Authority Working together to
C / _ 3176 Old Jennings Rd. protect public health,
Middleburg,Florida 32068-3907 conserve our natural
���� Telephone(904)213-2413 resources,and create
U p' Facsimile(904)213-2436 long-term value for
our ratepayers.
February 6, 2025
Mr. Patrick H. Allman
Odyssey Manufacturing Company
1484 Massaro Blvd.
Tampa,FL 33619
RE: Fifth Renewal of ITB No. 20/21-A5 Chemical Supplier Contract for Sodium Hypochlorite
Dear Mr. Allman:
The above referenced contract is scheduled to expire on March 7,2026.The contract terms allow for
a renewal period of 12 months, contingent upon the mutual agreement of both parties. The Clay County
Utility Authority(CCUA)is hereby providing written notice of interest in renewing the existing contract for
an additional 12-month period, continuing from March 8, 2026 - March 7, 2027. Please provide any
requested price adjustments to accompany this letter for the contract renewal. Please notify CCUA and
advise if you agree and would like to renew the existing contract for an additional 12 months before
February 2,2026 by signing this letter below and returning it to our office.
CCUA appreciates your cooperation. We look forward to continuing business with you and your
organization in the coming years.
Sincerely,
CLAY COUNTY UTILITY AUTHORITY ACCEPTANCE: YES NO OTHER
Odyssey Manufacturing Company
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Claire Smith -NAME:
Procurement Buyer q�f Lc1 i. N I Ati.6i
TITLE: A/
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DATE: .I -7 j20Z4
cc: Jeremy D. Johnston
Darryl Muse
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ODYSSEY
MANUFACTURING" 18, 2026
Mr. Darrin G.Parker
Contract&Procurement Specialist
Clay County Utility Authority
3176 Old Jennings Road
Middleburg,FL 32068-3097
Re: RENEWAL REQUEST FOR CHEMICAL SUPPLY CONTRACT 20/21-A5
FOR SODIUM HYPOCHLORITE
Dear Darrin,
As you know, Odyssey Manufacturing Co. has been supplying the Clay County Utility Authority
(CCUA)sodium hypochlorite under the current subject contract since March 9, 2020. The contract
initially expired on March 8,2022,and has been renewed four times through March 8,2026 and has
two more one-year renewals remaining. Odyssey Manufacturing Co.hereby offers to renew the
subject agreement for an additional year effective March 9,2026 through March 8, 2027, at a revised
unit price of$1,60 per gallon (an increase 4.6%), This price is fixed for the water and wastewater
treatment plants and there are no fuel surcharges, delivery fees or other hidden charges. As part of
the chemical supply, Odyssey will continue to provide technical assistance to your facilities as
required as we have done in the past at your Water and Wastewater Treatment facilities.
Odysseys production costs have continued to go up this past year. Our salt contract escalates at 3%
per year. Our electricity cost went up over 12%earlier this year(our electric bill is over$350,000 per
month)and more rate hikes arc on the way. Our wages have increased 4.5%and we project to
continue to increase at this amount in future years,which in this tight labor market,is necessary to
keep plant operators and tanker drivers. Unfortunately, our insurance premium for liability insurance
increased over$700,000 with the recent renewals. This alone represents the equivalent of just over a
$.01 per gallon cost increase. Transportation costs continue to escalate as we have to continue to add
drivers each year to deliver the same number of gallons because of the transportation gridlock around
Florida. Each driver with its equipment, fuel, salary and benefits add about$250,000 to our costs
each year and last year we had to add three additional drivers to deliver the same volume of chemicals
as the year before. There is also a bleach manufacturing shortage in the State of Florida which is
keeping prices up. Odyssey(and other State of Florida suppliers)arc having to import bleach into the
State of Florida to make up this shortfall,putting further upward pressure on pricing. We are in the
middle of a major plant expansion to solve this problem,but the new facility will not be up and
naming until the Fall of 2027. I have also attached a summary of all of the bleach bids in Florida in
the past 12 months so you can see the proposed increase is very reasonable (Clay County uses about
760,000 gallons per year).
Bid Date Utility Annual Allied Odyssey
Gallons
8/5/2024 Hernando County—Bulk Deliveries 354,500 $1.89 $1.75
8/7/2024 Seacoast Utilities 250,000 $1.68 No Bid
8/13/2024 City of St. Augustine 260,000 $1.84 $1.60
8/14/2024 Charlotte County 586,000 $1.67 No Bid
Pa elof2
MANUFACTURERS OFMd4RA CHLOR (800) ODYSSEY
www.odysseymanufacturing.com
8/28/2024 New Smyrna Beach WTP/WWTP 425,000 $1.89 $1.55
10/17/2024 Tampa Bay Water 10,760,868 $1.85 $1.45
11/20/2024 City of Tallahassee 906,000 $1.94 $1.73
2/21/2025 Volusia County 270,000 $1.67 No Bid
3/11/2025 Peace River Manasota 750,000 $1.64 $1.82
4/1/2025 City of Tarpon Springs 150,000 $1.97 $1.63
4/22/2025 City of Cape Coral 1,372,000 $1.96 • $1.58
5/15/2025 City of Palm Coast 580,000 $1.74 $1.89
6/10/2025 Town of Jupiter WTP 310,000 $1.66 $1.78
6/10/2025 Town of Jupiter Pump Station 4,000 $2.25 $2.95
6/12/2025 Emerald Coast Utilities 500,000 $1.72 $1.95
6/17/2025 The Villages 600,000 $2.08 $1.84
7/1/2025 City of Palm Bay(Treatment Plants) 328,000 $1.72 $1.90
7/1/2025 City of Palm Bay(Booster Stations) 14,400 $1.99 $2.50
7/23/2025 Okeechobee County 30,000 No Bid $1.95
8/4/2025 South Martin County Regional Utilities 185,000 No Bid $1.73
8/5/2025 Marion County 290,000 $1.86(*) $1.84
8/14/25 City of Sanibel 100,000 $1.79 $1.92
9/5/25 City of Fort Lauderdale (Broward Coop)F 11,730,000 $1.66 $1.82
9/5/25 City of Fort Lauderdale (Broward Coop)P 417,000 $1.76 $1.98
9/23/25 City of Melbourne (WTP) 425,000 $1.71 $1.80
9/23/25 City of Melbourne (Booster Stations) 75,000 $1.83 $2.00
11/19/2025 City of Orlando 613,000 $1.98 $1.75
12/11/25 TOHO Water Authority 2,700,000 No Bid $1.59
Thank you for your consideration. We value our supplier relationship with the City of Edgewater
both as a customer and business partner. We look forward to the opportunity to serve your sodium
hypochlorite needs in the future. Please do not hesitate to contact me at(813)ODYSSEY or cellular
(813) 335-3444 if I can be of further assistance.
S ,
Patrick H. Allman
General Manager
Page 2 of 2
THATCHER CHEMICAL OF FLORIDA, INC. Phone (386) 490-1638
245 Hazen Road Fax (386) 490-1641
Deland, FL 32720
O
February 3, 2026
Darrin Parker
Clay County Utility Authority
3176 Old Jennings Road
Middleburg, Florida 32068
dgparker@clayutility.org
Re: Chemical Supplier Contract No. 20/21-A5 for Sodium Bisulfite : Renewal 5 of 5
Period: 3/8/26 through 3/7/27
Dear Mr. Parker:
Thatcher Chemical of Florida, Inc. is appreciative of the opportunity to serve the Clay
County Utilities Authority for the chemicals listed below. We are interested in renewing our
contract to provide the chemicals listed below for another year. This year has seen historic
inflation in the chemical raw materials required to manufacture Sodium Bisulfite (SBS).
Chemical Package Current Price New Price
Sodium Bisulfite 38%-40% bulk $2.44 $2.68/ gallon
We are requesting an increase due to the continuing commodity inflation of the chemicals used
to manufacture Sodium Bisulfite. Sodium Bisulfite is manufactured from Sulfur and a base,
either Sodium Carbonate or Sodium Hydroxide. Sulfur has increased in price 167% over prior
year according to Green Markets Tampa Sulfur Index (see pg. 2)
Another indicator is the December 2025 PPI which observed an increase in Sulfuric Acid of 10%
(06-13020T1).
If you require additional information, please contact Mike Jackson at mike.jackson@tchem.com
We appreciate your business and look forward to meeting your chemical requirements in the
coming months and years.
Sincerely,
Michael T Mitchell
President
Green Markets' FertilizerPricing.com 16
HOME NITROGEN PHOSPHATE -.-i SULFUR '-:F I I-. ALERTS
Market Watch SULFUR
SULFUR Sulfur 1/9/2026 Last Week Year Ago
Tampa:
Negotiations for first-quarter Tampa molten sulfur contracts were Tampa c It^ 310 310 116
reportedly stalled during the week,with buyers and sellers remaining Houston DEL c It A 295 295 101
far apart.Fourth-quarter contracts were valued at$310/It CFR,a 23%
increase from$252/It in the third quarter. US Gulf NOLA c It A 299 299 105
US Gulf: US Gulf Prill mt 515-520 530-535 160-165
US Gulf sulfur prices retreated to$515-$520/mt FOB from $530- West Coast mt I 480-490 480-490 154-155
$535/mt at last report
West Coast Molten 475.00- 281.00- ________
Chemicals and allied products 06 - 0.7 0.1 0.0 -0.4 -02 -0.3
Industrial chemicals 06 1 -1.8 -0.8 02 -0.9 -0.6 -02
Basic inorganic chemicals 06 13 3.4 -0.3 -0.6 0.5 0.6 0.0
Inorganic chemicals,other than alkalies and chlorine 06 1302 4.3 -0.4 -0.4 0.7 1.1 02
Aluminum compounds 06 130209 6.7 0.4 -0.3 -0.9 02 -0.1
Inorganic acids,inc.hydrochloric,sulfuric acid,and other 06 13020T 3.7 0.1 -1.8 1.6 25 -0.5
Sulfuric acid 06 I 13020T1 10.0 0.0 -2.7 3.5 4.3 0.0
Potassium and sodium compounds,excluding bleaches,alkalies,and
alum 06 130217 -2.8 -0.8 -0.1 0.3 0.5 0.0
Rock sal 06 130271 - 10.7 - - - -
Other inorganic chemicals,nec 06 130283 42 -0.9 -02 0.7 1.1 0.5
All other inorganic chemicals 06 1302833 2.9 -1.1 -0.3 0.0 0.3 0.6
Alkalies and chlorine,including natural sodium carbonate and sulfate 06 1303 0.6 02 -12 -0.1 -12 -0.9
Chlorine,sodium hydroxide,and other alkalies 06 130302 12 02 -1.0 -0.1 -1.3 -1.1
Sodium hydroxide(caustic soda) 06 1303024 0.9 -0.6 0.1 -02 -1.3 -2.1
Other alkalies 06 1303028 1.7 1.5 -2.8 0.1 -1.3 0.6