Item 4E Memo Item 4E
M E M O R A N D U M
(January 16, 2018)
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 (ILA) 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 (ILA) 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 October 2017, the City of Grapevine City Council awarded
contract number RFB458-2017 for the purchase of aggregate
materials to Martin Marietta Materials, Inc. (Attachment B). This
contract contains four one-year renewal options. Line item pricing is
provided in the City Council packet (Attachment B).
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 SuperSlurry™ roadway product (Attachment D). These
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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.
Financial
Considerations: Funding for this contract is budgeted in the FY 2018 annual
operating budget for the Streets and Drainage Division and the FY
2018 CIP PMA 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. For the last four fiscal years, the City has
spent the following with Martin Marietta Materials, Inc.:
• FY 2014, $ 163,253
• FY 2015, $ 154,087
• FY 2016, $ 149,225
• FY 2017, $ 69,643
• FY 2018, $ 2,194 (to date)
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 of (B2) 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 contract.
Supporting
Documents: Attachment A: Inter-local Government Agreement for Purchasing
Attachment B: Grapevine 2017-2018 Contract Award
Attachment C: Grapevine RFB 458-2017 Bid Tab
Attachment D: Sole Source letter(s) – January 2, 2018
Attachment E: 2014 Announcement of Martin Marietta Materials,
Inc. and TXI Merger
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Staff
Recommendation: Approve an annual purchase agreement with Martin Marietta
Materials, Inc. for aggregate street materials through an Interlocal
Agreement (ILA) 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 of Public Works