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Home My WebLink AboutAgreement_General_11/10/2022_Odyssey Manufacturing FIFTH ADDENDUM TO THE AGREEMENT FOR THE PURCHASE OF SODIUM HYDROXIDE BY AND BETWEEN THE VILLAGE OF TEQUESTA AND ODYSSEY MANUFACTURING COMPANY CO. THIS FIFTH ADDENDUM, made and entered into this 10th day of November 2022, effective immediately,by and between the Village of Tequesta, Florida, a municipal corporation organized and existing in accordance with the laws of the State of Florida with offices located at 345 Tequesta Drive,Tequesta, Florida 33469,hereinafter referred to as the "Village", and Odyssey Manufacturing Company CO., a Florida corporation with offices located at 1484 Massaro Blvd., Tampa, Florida 33619,hereinafter referred to as the "Contractor" (and collectively the "Parties"),both of whom agree that the current Agreement for Purchase of Sodium Hydroxide,pursuant to RFQ No. UTIL 04-19, (hereinafter the "Agreement"), made and entered into by the Village and the Contractor on the 9th day of January 2020, is hereby amended in the following manner: Section 1: The above-referenced Agreement shall be amended by increasing the pricing upon mutual agreement of the Parties from Nine Hundred Forty-Five Dollars ($945.00) to One Thousand One Hundred and Ninety Dollars($1,190.00)per dry ton of 50%sodium hydroxide,as provided in Contractor's September 22nd, 2022, letter,which is fully incorporated into this Fifth Addendum and attached hereto as Exhibit "1". Section 2: The above-referenced Agreement shall further be extended by an additional year and shall now expire on September 30th, 2023. Section 3: All other Sections and recitals of the above-referenced Agreement and amendments thereto shall remain in full force and effect. Section 4: This Fifth Addendum shall be attached to the current Agreement and shall become a part thereof. IN WITNESS WHEREOF,the Contractor and the Village have signed and executed this Fifth Addendum on the second page of this Fifth Addendum,with an effective date as noted above. Page 1 of 2 ODYSSEY MANUFACTURING CO. C2y4...._ By: Patrick I I. Allman General Manager y (Corporate Seal) ATTEST: • f�� Corp Secretary VILLAGE OF TEQUESTA u`uuwuumnumuni� By: Molly II . , . ayor "'�G� F ic',,,,, ATTEST: `\PGORPo Q N SEA LORP\,, °RATE D i (nVF �q4: 4 19 . ,P ___L_Mtj/2(l OF R nikniumilintto Lori McWilliams, Village Clerk Page 2 of 2 ODYSSEY MANUFACTURING CO. By: Patrick H. Allman General Manager (Corporate Seal) ATTEST: Corporate Secretary VILLAGE OF TEQUESTA ,,,,,,,��i��,,,,,,F, By: Molly Young,Mayor QF T GRPO ATTEST: N,76 �QG SEAL D= INCORPORATED:` /(14/F 4 19�'Q- &111.4: r()w)(t'.),- Lori McWilliams, Village Clerk Page 2 of 2 EXHIBIT 1 ODYSSEY MANU=ACTLRrNC CO. September 22. 2022 Mr.Nate Litteral Water Treatment Plant Superintendent Village of Tequesta 901 North Dixie Highway Tequesta,Florida 33469 Re: CONTRACT TO SUPPLY BULK SODIUM HYDROXIDE TO THE VILLAGE OF TEQUESTA UTILITIES DEPARTMENT—RFQ urn,04-19 End: (I)Olin Price Increase letter dated July 15, 2022 (2)Producer Price Index PCU3 25 1 80325 1 804 Dear Nate. As you know,Odyssey Manufacturing Co. is currently supplying the Village of Tequesta sodium hydroxide(a_k.a.caustic)out of our rail terminal in Lantana, Florida for the past three years. The current pricing is$940 per ton. Odyssey oilers to renew its agreement for another year with the Village of'requests a$1,190 per dry ton(this is equivalent to$3.80 per gallon). "11iis price is fixed and there are no fuel surcharges,delivery,fees or other hidden charges. The new pricing would be effective October 1,2022 through September 30,2023. As you know,there are no sodium hydroxide manufacturers in Florida. There are thur companies in North America that ship caustic into Florida by either barge(three terminals in Tampa and one in Jacksonville)or rail(Odyssey has a rail terminal in Lantana and Sentry has one in Miami). This past quarter, Odyssey's price for sodium hydroxide was raised by S250 per ton(see Enclosure(1)). As you can see from Enclosure(2),caustic costs have increased 65.4% in the past twelve months. Factoring in the previous increase earlier this year,your overall increase is 59.7%which is still less than the PPI. We will also assume the risk ot'future increases for the upcoming fiscal year. Staying with Odyssey,the Village of Tequcsta will achieve improved reliability over other suppliers in that the caustic will be delivered from our terminal less than 30 minutes away. We also have access to a barge terminal in Tampa as a backup. Lastly,our drivers practice sale handling practices and do not put the wrong chemical in the wrong tank(something you have experienced on more than one occasion with other companies). Additionally, Odyssey is proposing to sell the Village of Tequcsta membrane grade caustic. This is much purer and has fewer heavy metals than the diaphragm caustic used by other utilities. Thank you for your consideration. We look forward to the opportunity to serve your sodium hydroxide 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. Sincerely, L?aTnck II. Allman A General Manager MANUFACTURERS OFUa�R CHLOR (800) ODYSSEY �+ www.odysseymanutacturfng.com .-see. '9 U.S.BUREAU OF LABOR STATISTICS Somd t.-aticr Stathats>rata T.sois>Date Retrieva;Toch s Mutti-Screen Databases, Tables & Calculators by Subject Change Outpat Options: From 2012•• To: 2022••0 include graphs 11 include ar n ua I averages YloW0.E111711uLt big Opt jolts ma. Dar,:F:d17,nPC Sprt=frbpr21,.th2Ji1dP DPI Industry Data Series Id: PCL3251ratrA2.004 Series Title: PPI indvstry data for Other basic inorganic chemical man:eat-m:1 lig-Sodi UM hydroxide(caustic 9)(1a oot seasona h adjusted Industry: Other bask inrrlc cherrical ma nu tarturir,e Prodiett Sodium hydroxice:caustic soda: Base Dam 1911012 Dow nleath Wider Year JainApr 4 -May - Jun 1 Jul Arg I sep Oct Dec 2016 -4- 301.1 311.1 314.4 2017 322_7 339.8 337.0 340.0 338.1 337.6 1313.9 348.9 3SIL7 3574 373.5. 377.9. 20191- 378_9 430.7 435.6 423.4 440.5 443.47 4382 4364 4371 4339 J23.9 417.6: j9 42.3 I 411.4 425.2 417.71 411.7 406.0 403.3 404.71. 401.5 390.3 397.6 309.61 2920 3133.4 i 375.5 322.9 I 323.91 381.5 38L7 386.5 38/-8i 364.8 396.9 374.6 37311 2223. 3729 371.6 376.1 397.51 3913 403.1 I 418.12fi /126.90244L086 469.401 475.901 5029661 2522315,75J380:562.775 592568 5119.7141 643303(P) 6.57.848R) 702 519:P: 7061150(P) P Preliminary.AU 1id93c84e subiect ta monthly revisions up to four months&tor original pubtication. U.S.BUREAU OF LABOR STA I is I ICS anal 5cLara Sultrg 2 14,...zachuszilLs**me hE Wash eon.DC 20212-00n Telephone:1-202-691-520k Telerlinrraxiharior a May Sex.ritm:7-I 1erydrcbts_c.-_--; Cri-14:1 US • Nhaff CHLOR ALKALI "C SLLEr:Road.NE.Clevel.3-id Tennessee 373'2 Phone: 231'6-4550•7-ex 4231333-4830 PRODUCTS AND VINYLS Internet %mew.nren ra:rc wr can July 15,2022 SUBJECT: Caustic Soda Price Increase Announcement Dear Customer: Olin Corporation's Chlcr Alkali Products and Vinyls Division (Olin) is amending and restating its Caustic Soda Price Increase Announcement dated June 30, 2022. Effective immediately, or as contract terms permit, Olin :s increasing the off-schedule prices of caustic soda as follows: Commercial Grade (diaphragm) caustic soda by$200 per dry short ton (DST) in the U.S_ and C$280 per dry metric ton (MIT)in Canada; and Membrane Grade caustic soda by $250 per DST in the U.S. and C$355 per DMT in Canada, not to exceed our list price. Prices are per net ton,76% Na2O basis, ex.works. Olin will continue to strictly adhere to an order control program and will be revising cur allocation percentage to iess than IOC%, as contract terms permit Lead times for aF orders wilt be strictly adhered to in the following manner. 72 hours for trick shipments, 14 days for railcar shipments, and 30 days For barge shipments. Your account manager will be in contact with you to answer any questions you may have regarding this price increase announcement and factors driving the current price increase. We appreciate your business and your confidence in selecting Olin as your supplier. Sincerely, s Todd Tessier Marketing Director, North America Caustic Soda Olin Chlor Alkali Products and Vinyls