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Item 4D Item 4D Page 1 of 3 M E M O R A N D U M (January 15, 2019) 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 $75,000 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 $75,000. 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 2018, the City of Grapevine renewed its contract RFQ458-2017 for the purchase of aggregate materials to Martin Marietta Materials, Inc. (Attachment C). This renewal is the first of four one-year renewal options. Line item pricing is provided in the City Council packet (Attachment C). Martin Marietta Materials, Inc. is the sole source provider of CTB and CTS. These materials are produced in the DFW Metroplex and have a shelf life of approximately three hours. Therefore, the material must be purchased locally. Item 4D Page 2 of 3 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 2019 annual operating budget for the Streets & Drainage Division and the FY 2019 Capital Improvements Program (CIP) Pavement Management Assessment (PMA) budget. Expenditures will not exceed budgeted funds. For the past four fiscal years, the City has spent the following with Martin Marietta Materials, Inc.:  FY 2015, $ 154,087  FY 2016, $ 149,225  FY 2017, $ 69,643  FY 2018, $ 23,835  FY 2019, $ 9,682 (to date) Costs incurred for previous fiscal years (FY 2015 – FY 2017) were due to the fact that several major roadways needed to be reconstructed (S. White Chapel Blvd., Shady Oaks Dr., and N. Peytonville Ave). This reconstruction effort required additional material--above and beyond what is normally required for a simple mill and overlay project. The majority of completed projects from FY 2017 to present was specifically mill and overlay projects. 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 & maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: This agreement conforms to previous ILA that has been reviewed by the City attorney. Alternatives: The City Council may approve or deny this purchasing agreement. Supporting Documents: Attachment A: Inter-local Government Agreement for Purchasing Attachment B: Grapevine RFB 458-2017 Bid Tab Attachment C: Grapevine Renewal Contract RFQ458-2017 Attachment D: Sole Source letter(s) – December 26, 2018 Item 4D Page 3 of 3 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 $75,000. Staff Contact: Rob Cohen, Director of Public Works Cristina McMurray, M.P.A, C.P.M, Deputy Director of Public Works RFB 458-2017 Line Quantity UOM Description Award Response Renewal 1 Award Quantity Awarded Supplier 3 200 ton Top Dressing Sand Bells Savoy, Delivered $33.00 35.00$ 200 Martin Marietta Materials 16 1500 ton Flexible Base, Pickup $8.00 8.00$ 1500 Martin Marietta Materials 17 1500 ton Rap Rock 6 to 8 inches, Delivered $23.00 23.00$ 1500 Martin Marietta Materials 18 1500 ton Rap Rock 6 to 8 inches, Pickup $13.00 13.00$ 1500 Martin Marietta Materials 19 250 ton Rap Rock 9 to 12 inches, Delivered $28.00 29.00$ 250 Martin Marietta Materials 20 250 ton Rap Rock 9 to 12 inches, Pickup $16.50 16.50$ 250 Martin Marietta Materials RFB 458-2017 Line Quantity UOM Description Award Response Renewal 1 Award Quantity Awarded Supplier 2 1000 ton 2:27 Sand Cement, Pickup $32.50 $34.50 1000 Martin Marietta Materials 13 3000 ton Cement Treated Base CTB, Delivered $38.00 $39.00 3000 Martin Marietta Materials 14 3000 ton Cement Treated Base CTB, Pickup $26.50 $27.50 3000 Martin Marietta Materials Cement Treated Materials 10615 Spangler Road, Dallas, TX 75220 t. (972) 409-3240 f. (972) 501-9304 www.martinmarietta.com December 26, 2018 City of Southlake 1400 Main Street Southlake, TX 76092 Attn: Joe Walsh Martin Marietta has a division called Cement Treated Materials (CTM) that produces cementitious products such as cement treated base and cement stabilized sand (backfill). These type of materials are produced at an optimum moisture content that require compaction during placement. Due to the low moisture content, it is best for these products to be produced in a pug mill plant to provide the best consistency. Martin Marietta has been operating pug mills for over 37 plus years. We have one stationary pug mill plant located in Dallas, TX, and another in Celina, TX, that produces these type of materials to the general public, with the capability to produce a wide assortment of mixes, to cater to various requirements and specifications. To the best of my knowledge, Martin Marietta has the only pug mill plant located in the DFW area that produces cement treated base and cement treated sand to the general public. We currently produce materials for several municipalities throughout Dallas County and Tarrant County. If you a have any questions or need more information, please contact me at 214-502-4935. Sincerely, Chris Moretti Cement Treated Materials 10615 Spangler Road, Dallas, TX 75220 t. (972) 409-3240 f. (972) 501-9304 www.martinmarietta.com December 26, 2018 City of Southlake 1400 Main Street Southlake, TX 76092 Attn: Joe Walsh Martin Marietta has developed a slurry system called SuperSlurry™ which produces cementitious products. With the SuperSlurry system, Martin Marietta has two products that it produces into slurry. One product is cement slurry and the other is Cem-Lime. At significant cost to itself, Martin Marietta has developed the processes and components necessary to manufacture SuperSlurry through internal experimentation, expertise and inventiveness. However, because of the proprietary nature of the SuperSlurry products, manufacturing processes and delivery system, Martin Marietta believes that it is the sole supplier that can provide you with SuperSlurry or its equivalent in north central Texas and DFW metroplex. Martin Marietta will license the SuperSlurry production process so that SuperSlurry will be widely available wherever it is needed. However, we intend to protect the proprietary nature of the product and processes so that only licensed suppliers will be allowed to produce and sell the SuperSlurry products to the quality standards established by Martin Marietta. At the present time, Martin Marietta has not licensed any other suppliers of SuperSlurry within the north central Texas or DFW area, so it remains the sole supplier in these areas. If you have any questions or need more information, please contact me at 972-409-3240. Sincerely, Chris Moretti North/Central Texas Contract Sales