HomeMy WebLinkAboutResolution 3968-02-2011A Resolution
NO. 3968 -02 -2011
Authorizing Employment of Outside Legal Counsel for Assistance to the City Attorney's Office
for Preparation of Loan Documents for the Finance Department.
WHEREAS, on January 25, 2011 (M &C G- 17186), the City Council authorized the execution
of a Loan Agreement with the Fort Worth Air and Space Museum Foundation for Up to $3 million from
the General Fund and other agreements necessary to secure such loan; and
WHEREAS, because this project involves specialized and complex legal issues, it is necessary
to retain outside legal counsel to assist the City; and
WHEREAS, the law firms of Kelly Hart & Hallman, LLP and McCall Parkhurst & Horton LLP,
have expertise in the legal processes and state and federal law requirements concerning this project.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS:
I.
That pursuant to Chapter VI, section 3 of the City Charter the law firms of Kelly Hart & Hallman
LLP and McCall Parkhurst & Horton LLP, are hereby employed to provide legal services to the City in
relation to the preparation of a loan agreement and other instruments necessary to secure a loan to the
Fort Worth Air and Space Museum Foundation.
II.
That, as far as practicable the compensation to be paid to the law firms of Kelly, Hart & Hallman
and McCall Parkhurst & Horton LLP for their services is hereby fixed in an amount not to exceed
$15,000.00.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS:
Adopted this 15th day of February, 2011.
ATTE
By' -- - - – \` -- -- – ---- - - - - -- —
Marty Hendrix, City Secretary
FoRTWoRTH
T
APPROVED
CITY COUNCIL
FEB 15 2011
City Secretary of the
City of Fort Worth, Texas
City of Fort Worth, Texas
Mayor and Council Communication
DATE: Tuesday, February 15, 2011 REFERENCE NO.: * *G -17205
LOG NAME: 12AVIATION MUSEUM OUTSIDE COUNSEL
SUBJECT:
Adopt Resolution Authorizing the Employment of Kelly Hart & Hallman, LLP and McCall Parkhurst & Horton
LLP as Outside Legal Counsel in an Amount Not to Exceed $15,000.00 to Assist and Advise the City on
Legal Issues Related to the Preparation of a Loan Agreement and Other Instruments Necessary to Secure
a Loan to the Fort Worth Air and Space Museum Foundation
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution authorizing the City Attorney to
retain the law firms of Kelly Hart & Hallman, LLP and McCall Parkhurst & Horton, LLP as outside legal
counsel pursuant to Chapter VI, Section 3, of the City Charter to assist the City Attorney with legal issues
related to the preparation of a loan agreement and other instruments necessary to secure a loan to the
Fort Worth Air and Space Museum Foundation, as far as practicable, the compensation to be paid to Kelly
Hart & Hallman, LLP and McCall Parkhurst & Horton, LLP will be an amount not to exceed $15,000.00.
DISCUSSION:
On January 25, 2011, the City Council approved M &C G -17186 which authorized the execution of a Loan
Agreement with Fort Worth Air and Space Museum Foundation (the Foundation) for up to $3 million from
the General Fund and other agreements necessary to secure such loan.
The purpose of the loan is to provide the Foundation with money necessary to fund construction and
installation of a temporary exhibition in the Fort Worth Museum of Science and History. The maximum
amount of the loan is $3 million, although City staff and the Foundation will review cash flow projections to
determine whether the Foundation requires the full $3 million loan for the exhibition. All loan proceeds
must be repaid by the Foundation in full by September 30, 2011. Interest on the outstanding principal
balance of the loan shall accrue at the rate of three percent per annum based on a 360 -day year
consisting of twelve 30 -month days. From and after the occurrence of any default, interest will accrue at
four percent per annum.
The loan will be a general obligation of the Foundation and shall be further secured by a lien on and
security interest in all personal property and real property owned by the Foundation, including the exhibit
and any pledges received by the Foundation.
In order to minimize legal fees, the City Attorney's Office will undertake the actual negotiation and drafting
of the majority of the documents, which is expected to constitute the bulk of the time devoted to this
project. However, outside legal expertise is needed for complex commercial and financial issues such as
perfecting a security interest and filing of necessary security agreements to secure the City's interest in the
loan.
Therefore, it is recommended that the City Council authorize the hiring of Kelly Hart & Hallman, LLP and
McCall Parkhurst & Horton, LLP to assist the City Attorney with complex legal issues related to securing
Logname: 12AVIATION MUSEUM OUTSIDE COUNSEL Page 1 of 2
the loan to the Fort Worth Air and Space Museum Foundation.
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the General Fund.
FUND CENTERS:
TO Fund /Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
FROM Fund /Account/Centers
GG01 538110 0121000
Karen Montgomery (6222)
Sarah J. Fullenwider (7606)
Lena Ellis (8517)
Maleshia B. Farmer (7647)
$15.000.00
Logname: 12AVIATION MUSEUM OUTSIDE COUNSEL Page 2 of 2