HomeMy WebLinkAboutContract 37796-A1 AMENDMENT NO. 1 CITY SECRETARY
To CONTRACT NO.
CONTRACT FOR THE PROVISION OF PARTS,SUPPLIES,
STAFFING AND MANAGEMENT FOR THE CITY OF FORT WORTH
THIS AMENDMENT NO. 1 is attached to and made a part of the Contract for the Provision of Parts, Supplies,
Staffing and Management for the City of Fort Worth(the"Contract")dated October 15,2008,by and between the City of
Fort Worth, a home-rule municipal corporation in Tarrant County, Texas, acting herein and through Karen L.
Montgomery, its duly authorized Assistant City Manager, hereinafter called "City", and AutoZone, Texas L.P., a
Delaware limited partnership, hereinafter called "Contractor." All capitalized terms not defined herein shall have the
meanings ascribed to them in the Contract.
The parties hereby agree that from and after February 9, 2010 ("Effective Date"), Contractor is authorized to
reduce its staffing level from 26 to 25, in furtherance of which the Contract is hereby modified as follows:
1. The last sentence in Subsection 5.E. is hereby deleted in its entirety and is replaced with the following:
"If Contractor fails to provide a staff of at least twenty-five (25) employees (or such other number as may be
required by this Contract or otherwise mutually agreed to by the parties in writing)for a period longer than thirty
(30) calendar days, the Parts Distribution Centers Management Fee shall be discounted by the percentage of
positions that were vacant for each day there was a failure to staff appropriately."
2. The last sentence in Subsection 9.A. is hereby deleted in its entirety and is replaced with the following:
"Staffing to be provided by Contractor includes a Project Manager and at least twenty-five (25) personnel to
provide full-time coverage for parts operations and staffing at the Parts Distribution Centers."
The Parts Distribution Centers Management Fee (Subsection 5.E) for year 2 (October 1, 2009 — September 30,
2010) has remained and shall remain unchanged in the amount of$702,000. This Amendment shall take precedence in
the event any terms or conditions of the Contract conflict herewith. Except as provided herein, all other terms and
conditions of the Contract shall remain in full force and effect and are hereby ratified and confirmed.
IN WITNESS WHEREOF,the parties have caused this Amendment to be duly executed to become effective as
of the 9t`day of February,2010.
CITY OF FORT WORTH,TEXAS AUTOZONE,TEXAS,L.P.
By: AZ Texas Operations,LLC,its general partner
� By: utoZone Stores,Inc.,its sole member
Karen L.Montgomery
Assistant City Ma a � B
Date Signed: O 4.0'0�oRaa Name:
a�►A gOOOOC, �Title: V 4�
ATTEST: "��► %�)ate:
APPROVED AS M LEt#�L FOR
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Marty Hend x °�°o0000O000 4), ame:
City Secretary �`�'x►a;S �y'�' Title:
11boo�'O' Date:_ 3 72,i /y
APP AS ORM AND LEGALITY:
OFFICIAL RECORD
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Assistant City Attorney �)9 1
Date
M&C Review Page 1 of 2
Off:ial site,of the City of Fort.V"ort[E, I I�Vls
CIT11f COUP141CIL AGENDA
FoRTWoRTw
COUNCIL ACTION: Approved on 2/9/2010
DATE: 2/9/2010 REFERENCE ,C-24081 LOG NAME: 21AUTOZONEREDUCTION
NO..
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize the Execution of an Amendment to City Secretary Contract No. 37796 Between
the City of Fort Worth and AutoZone Texas, LP, to Reduce the Contracted Staffing
Requirement for the City's Parts Distribution and Maintenance Centers from at Least
Twenty-Six Personnel to at Least Twenty-Five Personnel
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to amend City Secretary Contract
No. 37796 between the City of Fort Worth and AutoZone Texas, LP, to reduce the contracted staffing
requirement for the City's Parts Distribution and Maintenance Centers from at least twenty-six
personnel to at least twenty-five personnel.
DISCUSSION:
On September 16, 2008, the City Council approved M&C P-10844 authorizing the City Manager to
execute City Secretary Contract No. 37796 to supply parts, staffing and management for the City' s
Parts Distribution and Maintenance Centers with AutoZone Texas, LP (AutoZone). M&C P-10844
references the provision of 28 staffing members to manage the parts inventory. City Secretary
Contract No. 37796 was fully executed with AutoZone on October 15, 2008. During contract
negotiations, a final staffing level was agreed upon of at least 26 parts management personnel.
In August 2009, AutoZone approached the City of Fort Worth about increasing the Parts Distribution
Centers Management Fee by six percent or$42,120.00. The City of Fort Worth offered that rather
than increasing the costs to the city that AutoZone consider the reduction of expenses by the
reduction of one staffing position requirement.
Section 5.E. of City Secretary Contract No. 37796 between the City of Fort Worth and AutoZone
states " If Contractor fails to provide a staff of at least 26 employees (or such other number as may be
required by this Contract or otherwise mutually agreed to by the parties in writing)for a period longer
than 30 calendar days, the Parts Distribution Centers Management Fee shall be discounted by the
percentage of positions that were vacant for each day there was a failure to staff appropriately."
Under the current agreement, the staff reduction would require a reduction of the Management Fee of
$27,000. The City would waive the proportionate reduction of the management fee under Section 5.E
(above) in the amount of$27,000.00.
In Section 9.A. of the contract it states "Staffing to be provided by Contractor includes a Project
Manager and at least 26 personnel."
The City fleet was reduced by over 100 vehicles. This fleet reduction allows for a reduction in the
number of AutoZone staff members to support the Equipment Services Department.
This Mayor and Council Communication would reduce the minimum contract staffing requirement
from 26 personnel to 25 personnel. The Parts Distribution Center Management Fee would remain
http://apps.cfwnet.org/council_packet/me, review.asp?ID=12994&councildate=2/9/2010 4/5/2010
M&C Review Page 2 of 2
unchanged at$702,000.00 per year.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Karen Montgomery (6222)
Originating Department Head: Wayne Corum (5118)
Additional Information Contact: Wayne Corum (5118)
ATTACHMENTS
http://apps.cfwnet.org/council_packet/mc review.asp?ID=12994&councildate=2/9/2010 4/5/2010