HomeMy WebLinkAboutResolution 3526-09-2007A Resolution
NO 3526-09-2007
A Resolution for the Continued Employment of the law firm of Kelly, Hart &
Hallman LLP as Outside Legal Counsel to Advise the City Regarding the
Management of City Gas Well Revenue.
WHEREAS On April 17 2007 the Ctty Council approved Resolution No 3475-04-2007 creating the
Gas Well Revenues Financial Management Strategies Ad Hoc Committee and
WHEREAS, The Committee was charged with considering and making recommendations to the City
Council on gas well revenue management strategies, and
WHEREAS, On August 9 2007 the City Council adopted Resolution No 3509-08-2007 retaining the
law firm of Kelly Hart & Hallman, LLP to assist the City Attorney regarding investment
law and in the undertaking of certain procedures related to the management of the City's
gas well revenue, and authorizing compensation to be paid to Kelly Hart & Hallman, LLP
in an amount not to exceed $25 000 and
WHEREAS There are numerous issues still pending, and it is anticipated an additional sum of $15 000
will be needed to reimburse Kelly Hart & Hallman, LLP•
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS
That the City Manager or his designee be authorized to compensate the law firm of Kelly Hart &
Hallman LLP as outside counsel pursuant to Chapter VI Section 3 of the City Charter to assist and
advise the City Attorney m an amount not to exceed $40 000
ADOPTED this 18th day of September, 2007
APPROVED
-~~~ ^ CITY COUNCIL
~~~ -,, ~ ± ~ ` S E P 1 8 2007
.~' V ` ~ -
~Marty Hendrix ~ ~ ~~,"~'~^~^^f~
City Secretary ~ `"~ City Secretary of the
~,, City of Fort worth, Texas
~~~'
G
~'~~
~~~ ~~ ~~1~~ ~~~~
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 9/18/2007 Res. No 3526-09-2007 Sz Ord No 17772-09 2007
DATE Tuesday September 18 2007
LOG NAME 12KHHGASREVENUE REFERENCE NO **G-15868
SUBJECT
Adopt Resolution Authorizing an Increase in the Maximum Amount to be Paid to Kelly Hart &
Hallman LLP as Outside Legal Counsel to Provide Legal Representation to the City Regarding the
Management of City Gas Well Revenue and Adopt Appropriation Ordinance
RECOMMENDATION
It is recommended that the City Council
1 Adopt the attached resolution authorizing an increase in the maximum the aggregate amount to be paid
to Kelly Hart & Hallman LLP for representation to the City regarding the Management of City Gas Well
Revenue and
2. Adopt the attached supplemental appropriation ordinance increasing appropriations in the General Fund
in the amount of $15 000 and decreasing the unreserved undesignated fund balance by the same amount.
DISCUSSION
On April 17 2007 the City Council approved Resolution No 3475-04-2007 creating the Gas Well
Revenues Financial Management Strategies Ad Hoc Committee The Committee was charged with
considering and making recommendations to the City Council on gas well revenue management strategies
that would maximize the impact of the City's gas revenues create the most effective expenditure and
investment model to provide substantial benefits to the citizenry in perpetuity and design a productive
effective and dependable endowment management plan which would ensure the perpetual growth of the
fund's corpus
Thereafter the City Council adopted Resolution No 3509-08-2007 authorizing the employment of Kelly
Hart & Hallman LLP as outside counsel with expertise in complex legislative and investment issues related
to addressing the Committee s charge from the City Council and to assist the City Attorney
The Committee has recommended that a Section 115 trust be created to establish and manage the
endowment and to ensure growth of the fund's corpus As a result of the Committee s recommendations a
trust document and a ruling from the IRS will be needed It now appears that the amount paid to Kelly Hart
& Hallman LLP should be increased by $15 000 to an amount not to exceed $40 000
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that upon approval of the above recommendations and adoption of the
attached supplemental appropriation ordinance funds will be available in the current operating budget, as
appropriated of the General Fund Upon approval the unaudited unreserved undesignated fund balance
of the General Fund will be $1 162 672 which is the amount available above the minimum reserve fund
balance of $46 845 951 required by the City's Financial Management Policy Statements (i a 10 percent of
the current-year adopted budget expenditures less the annual transfer from the General Fund to the Debt
Logname 12KHHGASREVENUE Page 1 of 2
Service Fund)
Logname 12KHHGASREVENUE Page 2 of 2