HomeMy WebLinkAboutResolution 5033-01-2019A Resolution
NO. 5033-01-2019
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, in 2017, the Court entered a judgment in the Davis litigation. Both
parties filed an appeal and the Second Court of Appeals heard oral arguments in January;
it issued its opinion in October and the City has filed a petition for review in the Texas
Supreme Court; 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; and
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 $354,903.58; 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
$360,000.00 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 $360,000.00
to an amount not to exceed $410,000.00.
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Adopted this 29th day of January 2019. ��;
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ATTEST-
By:
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Mary J. Kayser, C' Se etary %�`j�®S
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City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved on 1./2912n'19 - Resoluuon .hyo. 503�0'2Q,'19 -. F
DATE: Tuesday, January 29, 2019 REFERENCE NO.: **G-19453
LOG NAME: 12GAMEROOM LITIGATION-ADDL FUNDS19
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 $410,000.00 (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 $410,000.00.
DISCUSSION:
On August 18, 2015, by 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. In 2017, the Court entered a judgment in the Davis litigation. Both
parties filed an appeal and the Second Court of Appeals heard oral arguments in January; it issued its
opinion in October and the City has filed a petition for review in the Texas Supreme Court. 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, by 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, by 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.
On September 19, 2017, by Mayor and Council Communication M&C G-19097 and Resolution No. 4844-
09-2017, the City Council approved an additional $50,000.00 for a total of $350,000.00 to represent the
City in this litigation.
On June 5, 2018, by Mayor and Council Communication M&C G-19288 and Resolution No. 4941-06-2018,
the City Council approved an additional $10,000.00 for a total of $360,000.00 to represent the City in this
litigation.
Logname: 12GAMEROOM LITIGATION-ADDL FUNDS 19 Page 1 of 2
The litigation is still pending and it is estimated that an additional amount of approximately $50,000.00
beyond the current authorized $360,000.00 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 $4t0,000.00.
This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
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. Prior to an
expenditure being incurred, the participating department has the responsibility to verify the availability of
funds.
FUND IDENTIFIERS (FIDS):
TO
Fund
Department
ccoun
Project
Program
ctivity
BudgetReference
#
mount
5520114
ID
1 1 2019
ID
1$50,000.001
Year 'I
(Chartfield 2)
FROM
Fund
Department
ID
ccoun
Project Program
ID
ctivity Budget
I Year
Reference #
Chartfield 2
Amount
601111
0147120
5520114
1 1
1 1 2019
1
1$50,000.001
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Jesus Chapa (5804)
Sarah Fullenwider (7606)
Christopher B. Mosley (7603)
Logname: 12GAMEROOM LITIGATION-ADDL FUNDS 19 Page 2 of 2