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Item 4G MemoCITY OF SOUTHLAKE Item 4G MEMORANDUM (June 15, 2021) To: Shana Yelverton, City Manager From: Rob Cohen, Director of Public Works Subject: Approve annual purchase agreements with Martin Marietta Materials, Inc. for street materials through Interlocal Agreements (ILAs) with the City of Grapevine and Tarrant County in an amount not to exceed $175,000. Action Requested: Approve annual purchase agreements with Martin Marietta Materials, Inc. for street materials through Interlocal Agreements (ILAs) with the City of Grapevine and Tarrant County in an amount not to exceed $175,000. Background Information: Various divisions of Public Works require the purchase of street materials such as cement treated road base (CTB), cement treated sand (CTS), cement slurry and cementitious slurry, and rock. These materials are necessary for street repairs and reconstruction, for drainage maintenance, and to facilitate utility repairs under pavement. In addition, these materials provide soil stabilization and increase pavement strength which contributes to completing any paving project faster. Martin Marietta Materials, Inc. is the sole source provider of CTB, CTS, and its trademark SuperSlurry; all produced in a pug mill plant in the DFW Metroplex. These materials have a shelf life of approximately three hours, and therefore must be purchased locally. Financial Considerations: The City's purchasing policy for these products are met through ILAs with the City of Grapevine and Tarrant County. On October 7, 2020, the City of Grapevine renewed its contract RFB458-2017 for cement treated street materials; this renewal is the third of four one-year renewal options (Attachment A). On January 26, 2021, Tarrant County renewed its contract 2020-086 for cement slurry and cementitious slurry street materials; this renewal is the first and final renewal option (Attachment B). With Page 1 of 3 Item 4G the favorable pricing received in these contracts and our experience with the vendor, staff recommends approval of these annual purchase agreements with Martin Marietta Materials, Inc. For the past four fiscal years, the City has spent the following with Martin Marietta Materials, Inc. for the purchase of street materials: • FY 2018, $ 23,835 • FY 2019, $ 22,039 • FY 2020, $ 32,226 • FY 2021, $ 16,867 — to date In FY 2021, the City will be utilizing Martin Marietta Materials, Inc. for its major roadway rehabilitation of N. Carroll Avenue from SH 114 to Burney Lane. This reconstruction effort will require additional material that is above and beyond what is normally required for a roadway reconstruction project. Funding for street material purchases is provided in the FY 2021 Streets & Drainage and Water Operating budgets and the Capital Improvement Program budget. Expenditures will not exceed budgeted funds. Strategic Link: This item links to the City's Strategy Map strategic focus areas of Mobility, Infrastructure, and Partnerships & Volunteerism. It specifically relates to the City's Corporate Objectives, 132: Collaborate With Select Partners To Implement Service Solutions, and F2: Invest To Provide & Maintain High Quality Public Assets. The Critical Business Outcome is, CBO2: Enhance Mobility Through Aggressive Traffic Management Initiatives And Capital Project Implementation. Citizen Input/ Board Review: None. Legal Review: These agreements conform to previous ILAs that have been reviewed by the City Attorney. Alternatives: The City Council may approve or deny these purchase agreements. Staff Recommendation: Approve annual purchase agreements with Martin Marietta Materials, Inc. for street materials through Interlocal Agreements (ILAs) with the City of Grapevine and Tarrant County in an amount not to exceed $175,000. Page 2 of 3 Item 4G Supporting Documents: Attachment A: City of Grapevine Renewal Contract RFB458-2017 Attachment B: Tarrant County Renewal Contract 2020-086 Attachment B: Sole Source Letters Staff Contact: Rob Cohen, Director of Public Works Jack Thompson, Deputy Director of Public Works — Operations Page 3 of 3 Attachment A ikAP, `ENTE Renewal Notification Martin Marietta Materials, Inc. Chris Moretti Christopher. Moretti(a-)martinmarietta.com 10615 Spangler Road Dallas, Texas 75220 October 7, 2020 Re: CONTRACT RENEWAL LETTER City of Grapevine Contract with Renewals: RFB 458-2017 Contract Title: Aggregate Materials -Cement Treated Renewal Options: Third of four one-year optional renewals Renewal period: October 4, 2020 through October 3, 2021 Renewal Purchase Order: PO-22723 The City of Grapevine has decided to renew this contract based on your renewal confirmation with documented increases in pricing under the same Terms and Conditions for the renewal period noted. All invoices must reference the current Purchase Order. Please return the attached renewal documents by email and an updated current Insurance Certificate if required in the contract. The City appreciates your excellent service and commitment to our needs on this contract and we look forward to continuing this successful business relationship. Please sign this Contract Renewal letter and return to Lance Wright at Iwripht@orapevinetexas.gov_ or fax 817-410-3066 within five business days of notification. Please let me know if you have any questions. Sincerely, Lance Wrigh Purchasing Agent Purchasing (8t7) 410-3335; Fax (817) 410-3066 Office Address: 501 Shady Brook Drive, Room 4108, Grapevine, Texas 76051 Page 1 of 2 0"r ACCEPTANCE Date: Signed, - Printed nam Attachment: Renewal Purchase Order Purchasing (817) 410.3335; Fax (817) 410-3066 Office Address: 501 Shady Brook Drive, Room 4108, Grapevine, Texas 76051 Page 2of2 1 'i S CITY OF GRAPEVINE P.O. Box 95104 Grapevine, TX 76099 Purchasing OfrfFi'ce Phone. (817)410-3336 Fax: (817)410-3066 DELIVERY ADDRESS: PUBLIC WORKS - ADMIN 200 S MAIN ST 1ST FLOOR GRAPEVINE, TX Vendor No.: 633E 76051 PURCHASE ORDER P.O. No.: 22723 Date: 09/30/20 This is a confirmation: ❑ This is an order: ❑ MARTIN MARIETTA MATERIALS INC PO BOX 677061 DALLAS, TX 75267-7061 LWRIGHT Delivery Date: 10/03J21 ITEM ENO. �n DESCRIPTION ACCOUNT N0. UNIT AMOUNT TOTAL AMOUNT 1 1 Renewal of Annual .05 .05 Contract for Aggregate Materials for line items 2,3,13,14,16,17, 18,19 and 20 per the Terms, Conditions and Specifications of RFB 458-2017. Renewal 3 begins 10-4-2020 through 10-3-2021. 1 Optional renewal. Requ# 4784 $0.1 10042205312003 .05 Requ# 4 784 $0.1 1.1643301535001 .05 Requ# 4784 $0.1 1744330141SO90 .05 Requ# 4784 $0.1 21043301340002 .05 Recju# 4784 $0.1 21042205340002 .05 Requ# 4784 ua on racts ax crareaa a Ma aria s R- CONDITIONS OF PURCHASE • 40 G.D.D. SHIPMENTS OF ANY CHARACTER WILL. Be ACCEPTED. • PACKING SLIPS MUST ACCOMPANY SHIPMENT. s PURCHASE ORDER NUMBER MUST APPEAR ON ALL INVOICES AND PACK#NG SLIPS. • SUBMIT INVOICES TO ACCOUNTS PAYABLE, P.O. BOX 95104, GRAPEVINE, TX 76099. + THE CITY OF GRAPEVINE IS TAX EXEMPT. 0 ALL INFORMATION RELATING TO ANY REFERENCED BID DOCUMENTS APPLY TO THIS PURCHASE. Martin Marietta August 20, 2020 Lance Wright Purchasing Coordinator City of Grapevine 501 Shady Brook Drive Grapevine, TX 76051 Lance, As was the case last year, and has been for several years, North Texas and particularly Tarrant County continue to outpace the rest of the country in growth and development. This trend is not expected to change in the foreseeable future. Due to this activity, the demand for materials used in construction is large, resulting in higher prices on materials, freight, labor, etc. Although our costs are proprietary, I can share that the price of cement will increase by a minimum of 5% in 2020-2021. In order to cover those increases as well as the anticipated increase in labor, and production costs, we will need to increase our prices to the City of Grapevine by 1.35% on the cement treated products we offer. We thank and appreciate the City of Grapevine for allowing Martin Marietta to service your needs. Please contact me if you have any questions. Sincerely, 4�J Chris Moretti Martin Marietta — Cement Treated Materials Group Cement Treated Materials 10615 Spangler Road, Dallas, TX 75220 M. 214-502-4935 — 0.972-409-3240 Christopher.Moretti@MartinMarietta.com Martin Marietta 10/1/19 To our valued customer: Martin Marietta appreciates your confidence in our ability to serve your needs. We truly value your business, and will continue to focus on delivering excellent quality product and service to you, as well as improving your customer experience. In an effort to assist you in your planning and budgeting process, Martin Marietta is announcing the following price increase effective April 1, 2020 for all locations in Texas. All Types of Bulk Cements $ 8.00/ton Delivered prices will be furnished to your location(s) upon request and are subject to applicable fuel surcharges. All Martin Marietta sales are subject to our Standard Terms and Conditions of Sales. Due to the advance notice of this increase, no price protection will be allowed. Thank you for your business, and we look forward to supplying your cement needs well into the future. If you have any questions, please do not hesitate to call us. Sincerely, Kirk Light President Cement Division Office: (972) 647-3389 Martin Marietta 1503 LBJ Freeway, Suite 400, Dallas, TX 75234 www.martinmarietta.com David Mitteis General Manager —Sales Cement Division Office: (972) 647-3836 Martin Marietta Lance Wright Purchasing Coordinator City of Grapevine 501 Shady Brook Drive Grapevine, TX 76051 La n ce, I hope this Ietterfinds you well. Thank you for allowing Martin Marietta the chance to renew this contract with City of Grapevine for aggregate materials for another contract year. Since the last years contract renewal Martin Marietta has had an increase on aggregate materials. This price increase helps to ensure we can service our customers at the top tier level you deserve. We have elected onIyto increase price on the "Rap Rock 9 to 12 inches". Price per ton on this material has increased $1.00 per ton. All other material prices will remain the same as the prior contract year. We thank and appreciate the City of Grapevine for allowing Martin Marietta to serviceyour needs. Please don't hesitate to contact me if you have any questions. Sincerely, Zach Bean Senior Sales Representative Cement &Aggregate Sales- North TX Martin Marietta 1503 LBJ Freeway, Suite 400, Dallas, TX 75234 (214) 543-3597 zach.bean@martinmarietta.com 1AMartin Marietta September 30, 2019 Dear Valued Customer: Martin Marietta (MM) would like to express our appreciation for your business during the 2019 business year. We are committed to continual investment in our operations to improve product availability, quality and the overall customer experience. In order to continue the aforementioned investments in our operations and to mitigate continued labor, rail and supply costs increases, MM is announcing the following prices increases for products at the operations listed below effective April 11, 2020: Products Quart Yards Concrete Stone (#57, #67 and #467) $1.00/ton $1.75/ton Asphalt Stone (0, C, D, Belt Run) $1.00/ton $1.75/ton Class A Stone (All Sizes) $1,00/ton $1.75/ton Decorative Cob bles/Gravel (All Sizes) $3.00/tan N/A Pea Gravel {All Sizes) $1.00/ton N/A Rip Raps (All Sizes) $1.00/ton $1.75/ton Manufactured Sand & Screenings Limestone/Granite $0,75/ton $1.50/ton Utility Stone (1 inch, % inch, 3/8ths inch) $0.75/ton $1.50/ton Masonry Sand $1.00/ton $1.75/ton Concrete Sand $1.00/ton $1.75/ton USGA Sand $2.00/ton Tee Sand $3.00/ton Price increases will apply to following fixed plant and rail locations. 'Quarries Sand & Gravel Quarries Rail Yards Bridgeport Bells/Savoy Celina Chico Tin Top Miller Mill Creek Granite Dallas/Dallas Sand Mill Creek Limestone Corsicana Tyler Midlothian No pricing protection will be extended beyond currently active purchase orders orcontracts. Price Increase will apply to quoted projects beginning April1", 2020. We value your business and thank you for your continued support and patronage. Sin ly, Mar Morgan General Manager-S les North Texas/Oklahoma District —Southwest Division 15M LBJ Freeway, Dallas, Texas 75234 T. (9721 350-8221 f. (972) 988-7592 www.m artin marl etta. cow RFB 458-2017 Line Quantity UOM Description Award Response Renewal 1 Renewal 2 Renewal 3 Award Quantity Awarded Supplier 3 200 ton Top Dressing Sand Bells Savoy, Delivered $33.00 $ 35.00 $ 36.50 $ 36.50 200 Martin Marietta Materials 16 1500 ton Flexible Base, Pickup $8.00 $ 8.00 $ 8.00 $ 8.00 1500 Martin Marietta Materials 17 1500 ton Rap Rock 6 to 8 inches, Delivered $23.00 $ 23.00 $ 24.00 $ 24.00 1500 Martin Marietta Materials 18 1500 ton Rap Rock 6 to 8 inches, Pickup $13.00 $ 13.00 $ 14.00 $ 14.00 1500 Martin Marietta Materials 19 250 ton Rap Rock 9 to 12 inches, Delivered $28.00 $ 29.00 $ 30.00 $ 31.00 250 Martin Marietta Materials 20 250 ton Rap Rock 9 to 12 inches, Pickup $16.501 $ 16.50 $ 17.50 $ 18.50 250 1 Martin Marietta Materials RFB 458-2017 Line Quantity UOM Description Award Response Renewal 1 Renewal 2 Renewal 3 Award Quantity Awarded Supplier 2 1000 ton 2:27 Sand Cement, Pickup $32.50 $34.50 $36.23 $36.72 1000 Martin Marietta Materials 13 3000 ton Cement Treated Base CTB, Delivered $38.00 $39.00 $40.95 $41.50 3000 Martin Marietta Materials 14 3000 ton Cement Treated Base CTB, Pickup $26.50 $27.50 $28.86 $29.25 3000 Martin Marietta Materials Attachment B COUIV,?,�.• COMMISSIONERS COURT • * COMMUNICATION REFERENCE NUMBER % 3 ! % i 9 1 PAGE I OF 4 DATE: 1 /26/2021 SUBJECT: BID NO.2020-086 - ANNUAL CONTRACT FOR CEMENT SLURRY AND CEMENTITIOUS SLURRY PRODUCTS - COUNTYWIDE - MARTIN MARIETTA MATERIALS, INC. - EXERCISE FIRST AND FINAL OPTION FOR RENEWAL - SAME FIRM FIXED PRICES *** CONSENT AGENDA *** COMMISSIONERS COURT ACTION REQUESTED: It is requested that the Commissioners Court approve renewal of Bid No. 2020-086, Annual Contract for Cement Slurry and Cementitious Slurry Products, for the first and final optional twelve (12) month period at the same firm fixed prices. BACKGROUND: On March 17, 2020, through Court Order 9132412, the Commissioners Court awarded Bid No. 2020- 086, Annual Contract for Cement Slurry and Cementitious Slurry Products, Countywide, to Martin Marietta Materials, Inc. The award was based upon low bid per item and contained an option to renew for one (1) additional twelve (12) month period. The vendor notified Purchasing in writing that their prices will remain firm through April 29, 2022. The four (4) Maintenance Precincts notified Purchasing in writing that they are pleased with the vendor and want to renew. Therefore, it is the joint recommendation of the four (4) Maintenance Precincts and Purchasing that the Commissioners Court approve the renewal of Bid No. 2020-086, Annual Contract for Cement Slurry and Cementitious Slurry Products, for another twelve (12) month period. FISCAL IMPACT: Expenses for last year were approximately $315,181.00. Orders are placed on an as -needed basis. SUBMITTED BY: Purchasing PREPARED BY: Brandie Bingham, CPPB /,)n APPROVED BY: ((�� TARRANT COUNTY PURCHASING DEPARTMENT MELISSA LEE, C.P.M., A.P.P. ACTING PURCHASING AGENT December 22, 2020 Martin Marietta Materials, Inc. Chris Moretti 10615 Spangler Rd. Dallas, TX 75220 Christopher. Moretti(a)_martinmarietta.com Re: BID No. 2020-086 — Annual Contract for Cement Slurry and Cementitious Slurry Products Dear Mr. Moretti: The referenced bid was awarded for twelve (12) months with one 1 options to renew for additional twelve (12) months each. The original contract was for the period of April 30, 2020 through April 29, 2021. The effective dates for the first and final renewal option will run from April 30, 2021 through April 29, 2022. Tarrant County Purchasing Department hereby extends an invitation to Martin Marietta to accept the first and final option for an additional one (1) year period as a vendor for this bid as awarded on March 17, 2020. Please mark the appropriate response below and provide your signature. All prices must remain firm for the Option Renewal period through April 29, 2022. ( X ) Yes, Martin Marietta will accept the offer to extend the same contract pricing and discounts. (Please include a current year 1295 Form) U No, Martin Marietta will NOT accept the offer to extend the same contract pricing and discounts. Are any other governmental entities currently utilizing this contract? X Yes No If yes, please include a listing of the participating entities with this letter. Please email your signed response and 1295 Form no later than January 15, 2021. Sincerely, PO Brandie Bingham, CPPB, Senior Buyer Tarrant County P 817-884-3246 F 817-212-3043 E bibingham(a�tarrantcounty.com -4:::-- Signature Christopher C. Moretti - Governmental/Contract Sales Printed Name & Title CO I— U D a O J CO D O z W w 0 `z} D Y� LJ r LU LU I..f� O LL U a z O U J a D z co O O N O N M co LL w 2 0 U CD 0 0 C 0 N ( Q O LO N O (a f�} ~ 00 1 r V �- O U ° U o Cl x H i s o ~ .wUT N G M SO L ^^L 11. O Z 0 O LL S� G 1 FJ = L m E i Mi W Z U L cc C _ o 0 0) NT V) ti LO 'd' = U CO- 69- r CD rn -05 c C C c w LIj i- 0 I— 0 CO CO c U O J 6 =) 0 0 0 J = 0 o cu a) Q L Q L o 4- C cu U N _ � O L p� <n o U 0 E° uNi m CO U 0) 0 a c c � Q N E N E N E 3 , 0 0 ca N M d Lo Cfl U C c O E w 10 Q c O 1.1., E 0 a U it a c 0 Q L to 0 Z TAKINGS IMPACT ASSESSMENT CHECKLIST Complete this form for any county action that involves the adoption of a regulation, policy, guideline, court resolution, or order. Bid No. 2020-086, Annual Contract for Project/Regulation Name: Cement Slurry and Cementitious Slurry Products County Department: PURCHASING Contact Person: Melissa Lee, C.P.M.. A.P.P. Phone Number for Contact Person: (817) 884-3245 Type of TIA Performed: SHORT TIA or FULL TIA. Circle one after answering the questions in Sections II and III belo . Stated Purpose Attach to this checklist an explanation of the purpose of the regulation, policy, guideline, court resolution or order. Note: The remainder of this Takings Impact Assessment Checklist should be completed in consultation with the Criminal District Attorney's Office. Potential Effect on Private Real Property 1. Does the county action require a physical invasion, occupation or dedication of real property? Yes No 4 2. Does the county action limit or restrict a real property right, even partially or temporarily? Yes No If you answered yes to either question, go to Section Ill. If you answered no to both, STOP HERE and circle SHORT TIA at the top of the form. Attachment C Martin Marietta June 2, 2021 City of Southlake 1400 Main Street — Suite 420 Southlake, TX 76092 Attn: Lydia Ruiz 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, 4�� Chris Moretti Senior Sales Representative Cement Treated Materials 10615 Spangler Road, Dallas, TX 75220 t. (972) 409-3240 www.MartinMarietta.com www.SuperSlurry.com www.CementTreatedMaterial.com SUPERSLURRY- Martin Marietta June 8, 2021 City of Southlake 1400 Main Street, Suite 320 Southlake, TX 76092 Attn: Lydia Ruiz 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 types 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 twin shaft pug mill plant to provide the best consistency. Martin Marietta, (previously known as TXI until 2014) has been operating pug mills for over 42 years. We have two stationary pug mill plants, one located in Dallas, TX and the other located in Hurst, TX, that produce these types of materials for the general public. We have 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 2 pug mill plants located in the DFW area that produce 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 972-409-3240. Sincerely, 4�� Christopher C. Moretti Sr. Contract Sales Representative Email — Christopher.Moretti(@MartinMarietta.com Cement Treated Materials 10615 Spangler Road, Dallas, TX 75220 t. (972) 409-3240 www.MartinMarietta.com www.CementTreatedMaterial.com www.SuperSlurry.com �k SUPERSLURRY-