Item 4B Memo-Final CITY OF Item 413
SOUTH LAKE
MEMORANDUM
(January 17, 2017)
To: Shana Yelverton, City Manager
From: Rob Cohen, Director of Public Works
Subject: Approve an annual purchase agreement with Martin Marietta
Materials, Inc. for aggregate street materials through an
interlocal agreement with the City of Grapevine in an amount
not to exceed $150,000
Action
Requested: Approve an annual purchase agreement with Martin Marietta
Materials, Inc. for aggregate street materials through an interlocal
agreement with the City of Grapevine in an amount not to exceed
$150,000.
Background
Information: Various divisions of Public Works require the purchase of
aggregate materials such as cement treated road base (CTB),
cement treated sand (CTS), and rock. These materials are
necessary to repair street failures and to facilitate utility repairs
under pavement.
The City's bidding process for this contract award was met through
an interlocal agreement (ILA) with the City of Grapevine. Chapter
271 of the Texas Local Government Code allows governmental
entities to enter into an ILA with other governmental entities to
share contracts which have met the statutory bidding requirements
as prescribed by the State of Texas. The City of Southlake has
such an agreement with the City of Grapevine (Attachment A).
In September 2012, the City of Grapevine awarded RFB 392-2012
to Texas Industries, Inc. (TXI) based on lowest price in the Bid
Tabulation Sheet (Attachment B). In July 2014, aggregate
producers Martin Marietta Materials, Inc. and TXI merged
(Attachment C). In September 2016, the City of Grapevine renewed
existing contract number 392-2012 for the purchase of aggregate
materials with Martin Marietta Materials, Inc. (Attachment B).
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Martin Marietta Materials, Inc. is the sole source provider of CTB
and CTS produced in a pug mill plant in the DFW Metroplex and its
trademark SuperSlurryTm roadway product (Attachment E). These
materials have a shelf life of approximately three hours and
therefore, must be purchased locally.
With the favorable pricing received in this contract and our
experience with the vendor, staff recommends approval of the
annual purchase agreement with Martin Marietta Materials, Inc.
This renewal includes no increase in the cost of the Martin Marietta
Materials, Inc., line items on the original bid.
Financial
Considerations: Funding for this contract is provided in the FY 2017 annual
operating budget for Streets Division and the FY 2017 CIP budget.
Expenditures will not exceed budgeted funds.
Prior to Martin Marietta Materials, Inc. purchasing TXI on July 1 ,
2014, the City purchased street materials from Martin Marietta
Material, Inc. and TXI. In FY 2014, the City spent a combined total
of $163,253 with Martin Marietta Materials, Inc. and TXI. In FY
2015, the City spent $154,087, in FY 2016, the City spent
$149,225, and in FY 2017 to date, the City has spent $9,470 with
Martin Marietta Materials, Inc.
Strategic Link: This Item relates to the City's strategy map focus areas of
Infrastructure and Partnerships & Volunteerism. It specifically
relates to the City's Corporate Objectives to (132) collaborate with
select partners to implement service solutions and (F2) invest to
provide and maintain high quality public assets.
Citizen Input/
Board Review: N/A
Legal Review: N/A
Alternatives: The City Council may approve or deny this purchasing agreement.
Supporting
Documents: Attachment A: Inter-local Government Agreement for Purchasing
Attachment B: Grapevine 2016-2017 Contract Renewal Letter
Attachment C: Announcement of Martin Marietta Materials, Inc. and
TXI Merger
Attachment D: Grapevine Award #392-2012 and Renewal History
Attachment E: Sole Source letter(s)
Item 4B
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Staff
Recommendation: Approve an annual purchase agreement with Martin Marietta
Materials, Inc. for aggregate street materials through an interlocal
agreement with the City of Grapevine in an amount not to exceed
$150,000.
Staff Contact: Rob Cohen, Director of Public Works
Cristina McMurray, M.P.A, C.P.M, Deputy Director/Operations