HomeMy WebLinkAboutResolution 3335-04-2006A Resolution
NO 3335-04-2006
WHEREAS a need has arisen to address various claims and other legal issues m Birch Telecom,
Inc et al bankruptcy Case No OS-12237 and
WHEREAS the law firm of Stevens & Lee has expertise m Delaware bankruptcy law•
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS
That the engagement of Steven & Lee as outside legal counsel be confirmed pursuant to Chapter
VI, Section 3 of the City Charter m order to provide legal consultation to the Crty Attorney's Office
concerning legal issues, including but not limited to rts claims m the Birch Telecom bankruptcy case
2.
That the Crty Manager or his designee be authorized to compensate Steven & Lee m an amount
not to exceed $15 000 ,
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ADOPTED `thts~~~ ~~-11'.~ day of April , 2006
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Marty Hendrix
City Secretary''^~.,,
-,;
ern
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APPROVED
CITY COUNCIL
APR 1 1 2006
City Sec~of the
City of Fort Worth, Texas
APPROVED AS TO FORM AND LEGALITY
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 4/11/2006 Resolution No 3335-04-2006
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DATE Tuesday April 11 2006
LOG NAME 12BIRCH REFERENCE NO **G-15154
SUBJECT
Adopt a Resolution Authorizing Employment of Outside Counsel to Prosecute the City's Claims in
the Birch Telecom Inc. et al Bankruptcy Case No 05-12237
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RECOMMENDATION
It is recommended that the City Council
1 Authorize the City Manager to retain the law firm Stevens & Lee as outside counsel pursuant to Chapter
VI Section 3 of the City Charter to assist the City Attorney in representing the City and prosecuting Cause
No Case No 05-12237 and
2. Adopt the attached resolution fixing in advance as far as practicable the amount to be paid to Stevens
& Lee in an amount not to exceed $15 000 00
DISCUSSION
Birch Telecom pays the City access line fees for each of its Fort Worth customers Birch filed bankruptcy in
Delaware in August 2005 and scheduled a $111 575 65 priority claim on behalf of the City In January
2006 Birch amended the claim to anon-priority status. Birch has submitted a reorganization plan that
would pay the City only 7-8% of its claim
Under Delaware bankruptcy rules the City must hire local counsel to prosecute its claims Stevens & Lee
will represent the City in its objection to the reorganization plan and its motion to allow a priority claim
The City Attorney therefore requests the Council to authorize the City Manager to retain the law firm of
Stevens & Lee as outside counsel to assist the City Attorney's Office in the representation and prosecution
of its claims in the Birch Telecom bankruptcy case
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that funds are available in the current operating budget, as appropriated in
the General Fund
TO Fund/Account/Centers
FROM Fund/Account/Centers
GG01 538110 0121000 $15.000.00
Submitted for City Manager's Office b~_
Originating Department Head
Additional Information Contact:
Logname 12BIRCH
Richard Zavala (Acting) (6122)
David Yett (7623)
Christopher B Mosley (7603)
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