Chlorinated Water or any water that has been treated with chlorine. (i.e. City Water/or a bag of store bought ice) will kill your bait. So, use a lid full of chlorine remover like Better Bait or Shad Keeper for best results
If I am out on a Striper Fishing Charter and the bait gets the red-nosed, I will do a 20% water change ASAP and add several hand fulls of salt. I evaluate the amount of bait I am keeping in the tank and discard excess bait. Overloading the tank can result in red-nose and the risk of bait dying is extremely high.