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HomeMy WebLinkAboutResolution 4944-06-2018 A Resolution NO. 4944-06-2018 AUTHORIZING THE EMPLOYMENT OF KELLY, HART & HALLMAN, L.L.P., AS OUTSIDE LEGAL COUNSEL TO ADVISE AND REPRESENT THE CITY IN MATTERS RELATED TO EMPLOYEE PENSION MODIFICATIONS AND AUTHORIZING PAYMENT OF COUNSEL FEES WHEREAS, the City is considering making amendments to the City's Retirement Ordinance that may modify pensions for retirees, vested terminated members, and current and future members of the Employees' Retirement Fund; and WHEREAS, any pension modifications must be in accordance with Article 16, Section 66 of the Texas Constitution and Article 62431 of the Texas Revised Civil Statutes; and WHEREAS, it is possible that pension modifications could lead to litigation; and WHEREAS, because of the extraordinary complexity of this area of law, the City Manager and the City Attorney recommend that the City retain outside legal counsel with knowledge and expertise in matters involving pension law; and WHEREAS, the law firm of Kelly, Hart & Hallman, L.L.P., possesses the required knowledge Iand expertise in pension law; and IWHEREAS,the law firm of Kelly,Hart&Hallman,L.L.P.,has successfully represented the City in past litigation related to pension modifications. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, THAT: 1. The City is authorized to retain the law firm of Kelly, Hart & Hallman, L.L.P., as outside legal counsel pursuant to Chapter VI, Section 3, of the City Charter to assist and represent the City in matters related to employee pension modifications. ORT WO T Resolution No.4944-06-2018 2. The City is hereby authorized to compensate Kelly, Hart & Hallman, L.L.P., in an amount not to exceed $150,000.00 Adopted this 12th day of June, 2018. ATTEST: F�RT� U � B y' Mary J. Kayser, S & ary �S ORTWOin City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/12/2018 - Resolution No. 4944-06-2018 DATE: Tuesday, June 12, 2018 REFERENCE NO.: **G-19298 LOG NAME: 12KELLY HART& HALLMAN PENSION COUNSEL SUBJECT: Adopt Resolution Authorizing the Employment of Kelly Hart & Hallman, L.L.P. as Outside Counsel, in an Amount Not to Exceed $150,000.00, to Assist the City with Pension-Related Legal Issues (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council adopt the attached Resolution approving the retention of the law firm of Kelly Hart & Hallman, L.L.P. as outside legal counsel to assist and represent the City in pension- related legal issues. DISCUSSION: The City Manager is in the process of reviewing and preparing recommendations to the City Council to improve the health of the City of Fort Worth Employees' Retirement Fund (the Fund). The recommendations may include pension modifications for retirees, vested terminated members, future and current employees. Recommendations to make pension modifications must be made in accordance with Article 16, Section 66, of the Texas Constitution, and Article 6243i of the Texas Revised Civil Statutes. Due to the extraordinary complexity of this area of the law, the City Manager recommended that the City retain outside legal counsel with extensive knowledge and expertise in public pension law. The law firm of Kelly Hart & Hallman, L.L.P. has experience in pension matters, and successfully represented the City in defending the modifications made to the pension system in 2012 and 2014. Chapter VI, Section 3 of the City Charter requires the City Council to approve the retention of any outside legal counsel for assistance to the City Attorney. Accordingly, it is recommended that the City Council adopt the attached Resolution to retain Kelly Hart & Hallman, L.L.P. to assist City Staff and to represent the City in matters related to potential modifications to the Fund. Legal fees are not expected to exceed $150,000.00. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as appropriated, of the Risk Management Fund. Prior to an expense being incurred, the participating department has the responsibility to validate the availability of funds. FUND IDENTIFIERS (FIDs): TO r und Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 Logname: 12KELLY HART HALLMAN PENSION COUNSEL Page I of 2 CERTIFICATIONS: Submitted for City Manager's Office by: Susan Alanis (8180) Originating Department Head: Sarah Fullenwider (7606) Additional Information Contact: Laetitia Brown (6639) Logname: 12KELLY HART HALLMAN PENSION COUNSEL Page 2 of 2