HomeMy WebLinkAboutResolution 4590-02-2016 A Resolution
NO. 4590-02-2016
AUTHORIZING RETENTION OF THE LAW FIRM OF KELLY HART & HALLMAN LLP AS
OUTSIDE LEGAL COUNSEL IN CONNECTION WITH INTERPRETATION AND
APPLICATION OF FEDERAL TAX LAW AND SETTING MAXIMUM COMPENSATION
WHEREAS, the City of Fort Worth is a major employer and as such is subject to certain
documentation, reporting, and other obligations under federal tax law with accounting and legal staff
handling routine matters; and
WHEREAS, the assistance of outside attorneys who are tax specialists is required for questions
involving the more obscure areas of federal tax law; and
WHEREAS, Kelly Hart&Hallman LLP has special competency and recognized expertise in the
area of federal tax law and has agreed to assist the City with these issues.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
I.
That the engagement of the Law Firm of Kelly Hart & Hallman LLP as outside legal counsel be
confirmed pursuant to Chapter VI, Section 3, of the City Charter, in order to provide legal representation
to the City concerning interpretation and application of federal tax law.
II.
That the City be authorized to compensate the Law Firm of Kelly Hart &Hallman LLP in an amount not
to exceed$25,000.00.
Adopted this 16th day of February, 2016.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION:; Approved on 2/16/2016 -Resolution No. 4590-02-2016
DATE: Tuesday, February 16, 2016 REFERENCE NO.: **C-27622
LOG NAME: 12KHH TAX LAW COUNSEL
SUBJECT:
Adopt Resolution to Retain the Law Firm of Kelly Hart & Hallman LLP, as Outside Legal Counsel with
Compensation Not to Exceed $25,000.00 for Issues Related to Interpretation and Application of Federal
Tax Law (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution authorizing the City Attorney to
retain the law firm of Kelly Hart & Hallman LLP, as outside legal counsel in accordance with Chapter VI,
Section 3 of the City Charter to assist with matters related to the interpretation and application of federal
tax law and fixing compensation, as far as practicable, at an amount not to exceed $25,000.00.
DISCUSSION:
The Financial Management Services Department, the City Manager's Office and the City Attorney's Office
recommend that the City retain the firm of Kelly Hart & Hallman LLP (KHH) to provide legal services from
time to time related to interpretation and application of federal tax law. Over the years, the City has kept
KHH on a small retainer (most recently, a retainer of$20,000.00 in 2012) so that the firm could quickly
respond to a variety of federal tax and trust issues confronted by the City. This Mayor and Council
Communication would authorize a $25,000.00 retainer. KHH has extensive experience representing
public and private sector clients in federal tax matters and has previously provided the City with
satisfactory representation on matters involving tax and benefit issues.
Federal tax law represents some of the most complex and arcane material and consists of highly technical
statutes, regulations, cases, letter rulings and other formal and informal guidance. While the City's legal
and accounting staff routinely handle day-to-day matters in this area, complex issues periodically arise
such as determining the proper manner in which to make and report after-the-fact corrections if an error is
discovered in a subsequent tax year and the proper way in which to classify and report reimbursements or
other benefits to non-employee personnel.
Because these types of tax issues occur infrequently and involve application of tax rules that the City is
seldom required to interpret or apply, the assistance of attorneys who specialize in federal tax law is
needed to best represent the City's interests.
This project concerns ALL COUNCIL DISTRICTS.
FISCAL INFORMATION /CERTIFICATION:
The approval of this action provides spending authority up to $25,000.00 as specified. The Director of
Finance certifies that funds are available in the current operating budgets, as appropriated and that prior
to an expenditure being made, the using department has the responsibility to coordinate the availability of
funds with the Law Department.
Logname: 12KHH TAX LAW COUNSEL Page 1 of 2
FUND IDENTIFIERS (FIDs):
TO
Fund Department ccounj Project JProgram ctivity Budget Reference # moun
I ID ID Year (Chartfield 2)
FROM
Fund Department Accoun j Project JProgram ctivity Budget Reference # mounl
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (2689)
Originating Department Head: Sarah J. Fullenwider (7606)
Additional Information Contact: Denis McElroy (2758)
Logname: 12KHH TAX LAW COUNSEL Page 2 of 2