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HomeMy WebLinkAboutResolution 4844-09-2017 A Resolution NO. 4844-09-2017 TO INCREASE THE AMOUNT TO BE PAID TO THE LAW FIRM OF KELLY HART & HALLMAN,LLP, AS OUTSIDE COUNSEL FOR LEGAL SERVICES RELATED TO LAWSUITS CHALLENGING THE CITY'S GAME ROOM ORDINANCES WHEREAS, on October 14, 2014, the City of Fort Worth adopted Ordinance Nos. 21499-10-2014 and 21500-10-2014 to regulate game rooms through licensing and zoning; and WHEREAS, the City has been sued in three separate lawsuits, to date, challenging the City's Ordinance Nos. 21499-10-2014 and 21500-10-2014, in Cause No. 48-276440- 15, Apolonio Garcia, et ux. v. City of Fort Worth, Cause No. 17-276483-15, Jack Davis, et al. v. City of Fort Worth, and Cause No. 352-276568-15, AFAD Investments, Inc. v. City of Fort Worth; and WHEREAS, the City, on August 18, 2015 hired the Law Firm of Kelly Hart & Hallman, LLP, as outside counsel to provide legal representation regarding any lawsuit filed challenging the City's game room ordinances. WHEREAS, to date, the cost of legal services by Kelly Hart & Hallman, LLP, as outside counsel to provide legal representation regarding any lawsuit filed challenging the City's game room ordinances, has been approximately $277,000.00; and WHEREAS, the subject litigation is still pending and it is estimated that an additional amount of approximately $50,000.00 beyond the current authorized $300,000.00 will be needed for the legal services necessary to bring these lawsuits to a successful conclusion. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: That the compensation authorized to be paid to the Law Firm of Kelly Hart & Hallman, LLP, as outside counsel, to provide legal representation regarding any lawsuit filed challenging the City's game room ordinances, is hereby increased from $300,000.00 to an amount not to exceed $350,000.00. Adopted this 191h day of September 2017. SOF FOR)• ATTEST: '2 B y: — -- -- T�S Mary J. Kayser, Ci ecretary FORTWORTH City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 9119%2017 Resolution No, 4844-09-2017 DATE: Tuesday, September 19, 2017 REFERENCE NO.: **G-19097 LOG NAME: 12GAMEROOM LITIGATION-ADDL FUNDS SUBJECT: Adopt Resolution Authorizing an Increase of$50,000.00 in the Total Amount to be Paid to the Law Firm of Kelly Hart & Hallman, LLP, as Outside Legal Counsel for Legal Matters Relating to Lawsuits Challenging the City's Game Room Ordinances for a Total Amount of$350,000.00 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached resolution authorizing an increase in the amount of$50,000.00 to the maximum amount to be paid to the law firm of Kelly Hart & Hallman, LLP, as outside legal counsel for legal services related to lawsuits challenging the City's Game Room Ordinances, for a total amount of$350,000.00 DISCUSSION: On August 18, 2015, Mayor and Council Communication (M&C G-18529 and Resolution No. 4501-08- 2015), the City Council approved the Law Firm of Kelly Hart & Hallman, LLP, as legal counsel to provide legal representation regarding any lawsuit filed challenging the City's game room ordinances. The City has been sued in three separate lawsuits challenging the City's new game room ordinances. The three separate lawsuits are as follows: Cause No. 48-276440-15, Apolonio Garcia, et ux. v. City of Fort Worth, Cause No. 17-276483-15, Jack Davis, et al. v. City of Fort Worth and Cause No. 352-276568-15, AFAD Investments, Inc. v. City of Fort Worth. Because of the complex nature of the litigation and the importance to the City, the City hired the Law Firm of Kelly Hart & Hallman, LLP, to represent the City in any litigation related to the game room ordinances. On May 3, 2016, Mayor and Council Communication (M&C G-18724 and Resolution No. 4621-05-2016), the City Council approved an additional $100,000.00 beyond the original $100,000.00 for a total of $200,000.00 to represent the City in this litigation. On February 21, 2017, Mayor and Council Communication (M&C G-18949 and Resolution No. 4746-02- 2017), the City Council approved an additional $100,000.00 for a total of$300,000.00 to represent the City in this litigation. The litigation is still pending and it is estimated that an additional amount of approximately $50,000.00 beyond the current authorized $300,000.00 will be needed for the legal services necessary to bring these lawsuits to a successful conclusion. Adoption of this Resolution will increase the amount of compensation to be paid to the Law Firm of Kelly Hart & Hallman, LLP, by $50,000.00, for a total amount of$350,000.00. This M&C does not request approval of a contract with a business entity. Logname: 12GAMEROOM LITIGATION-ADDL FUNDS Page I of 2 The Director of Finance certifies that upon approval of these recommendations, funds are available within existing appropriations in the current operating budget of the Risk Management Fund. FUND IDENTIFIERS (FIDs): TO Fundl Department ccoun Project JProgram ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department Accounl Project ProgramActivity Budget Reference # Amount ID ID Year Chartfield 2 60111 0147120 5520114 2018 $50,000.0 CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Sarah Fullenwider (7606) Additional Information Contact: Christopher B. Mosley (7603) Logname: 12GAMEROOM LITIGATION-ADDL FUNDS Page 2 of 2