HomeMy WebLinkAboutIR 9312INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9312
y To the Mayor and Members of the City Council October 12, 2010
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SUBJECT: FLEET SERVICES ENHANCEMENTS
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On your agenda for today's City Council meeting is M &C C -24537 authorizing the execution of a
contract amendment with AutoZone to extend the contract for six months, reduce the AutoZone
staffing levels and reduce the management fee to realize the cost savings listed in item number 1
below under primary cost savings.
As part of being retained for FY2011, the Equipment Services Department has been requested to
implement all cost savings identified in their proposal. These cost savings total $1.7 Million
dollars (approximately $900,000 towards the General Fund). The cost savings were realized
through four primary actions.
1. Amend the AutoZone contract with a six month extension and a reduction in the AutoZone
staffing from 25 to 16 personnel with a proportionate savings in the associated
management fee. The annual contract management fee is $702,000 currently. A six
month extension at that rate would be $351,000. At the amendment contract rate ($37,440
x 6), the City would pay $224,640. Therefore, the six month savings would be $126,360.
2. Implementation of 30 of the 45 recommendations from the Competitiveness Study.
Thirteen recommendations are being evaluated and may occur in the future. The other
two were considered not feasible.
3. Consolidation of facilities. Closure of one Service Center (Brennan Avenue) and the Tire
Shop (Bolt Street) to consolidate crews and eliminate overhead costs related to utilities,
building maintenance, etc. This consolidation was realized on October 1St. The
consolidation also allows for some of the Fire Reserve fleet to be housed within the former
Tire Shop, thereby, preventing deterioration of hoses due to exposure to the elements.
Also, closure of the Brennan Service Center allows the Police Department Auto Pound to
expand their operations back to the size previously utilized at the former Northside Drive
Auto Pound location.
4. Reduction in staffing of 15 City of Fort Worth positions based upon the Vehicle Equivalent
Unit (VEU) Analysis and the consolidation of facilities. These 15 positions are included in
the City of Fort Worth Reduction In Force (RIF) process.
Additional cost savings and revenue enhancements will be pursued in FY2011 through the
following actions:
Issue a Request for Proposal for Parts Supply, Staffing and Management. This process
generally requires six months; therefore, the amendment with AutoZone was negotiated to
extend the current contract by six months. The current contract with AutoZone is
scheduled to terminate on October 15, 2010.
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9312
To the Mayor and Members of the City Council October 12, 2010
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Page 2 of 2
• SUBJECT: FLEET SERVICES ENHANCEMENTS
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2. Explore additional revenue streams through in sourcing fleet maintenance. The
Equipment Services Department has already been approached by FEMA, the City of
Southlake and the Federal Marshall's Office in Fort Worth about providing fleet
maintenance.
3. Determine the feasibility of restructuring compensation and benefits to identify some cost
savings.
If you have any questions regarding this information, please contact Wayne Corum, Equipment
Services Director, at (817) 392 -5118.
Dale A. Fiss , P.E. i
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS