HomeMy WebLinkAboutOrdinance 20054-01-2012Ordinance No.20054 -01 -2012
AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE GENERAL FUND IN THE AMOUNT OF $20,000.00,
AND DECREASING THE UNAUDITED, UNRESERVED, UNDESIGNATED FUND
BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF PAYMENT FOR
LEGAL COUNSEL FROM KELLY HART & HALLMAN LLP IN THE EVALUATION
AND CREATION OF A RETIREE HEALTH CARE TRUST PROGRAM FOR
FIREFIGHTERS HIRED AFTER JANUARY 1, 2009; PROVIDING FOR A
SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR
ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION 1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2011 -2012 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
General Fund in the amount of $20,000.00, and decreasing the unaudited, unreserved, undesignated fund
balance by the same amount, for the purpose of payment for legal counsel from Kelly Hart & Hallman LLP
in the evaluation and creation of a Retiree Health Care Trust Program for Firefighters hired after January 1,
2009.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or
void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way
impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining
provisions shall be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance No. 19911 and all other ordinances and appropriations
amending the same except in those instances where the provisions of this ordinance are in direct conflict
with such other ordinances and appropriations, in which instance said conflicting provisions of said prior
ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
ss tant Ci y Attorney
ADOP "1'ED AND I FF1:('TR'F:Jativaa 24, 2012
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/24/201`2 - Ordinance No. 20054 -01 -2012 &, Resolution
No. 4058 -01 -2012
DATE: Tuesday, January 24, 2012 REFERENCE NO.: * *C -25408
LOG NAME: 12ARTICLE 15KHH
SUBJECT:
Adopt Resolution Authorizing Employment of Kelly, Hart & Hallman, LLP, as Outside Legal Counsel and
Authorizing Payment to Kelly, Hart & Hallman, LLP, in an Amount Not to Exceed $20,000.00 for Assistance
in the Evaluation and Creation of a Retiree Health Care Trust Program for Firefighters Hired After January
1, 2009 and Adopt Supplemental Appropriation Ordinance Increasing Appropriations in the General Fund
By $20,000.00 and Decreasing the Unaudited, Unreserved, Undesignated Fund Balance By the Same
Amount (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Adopt the attached supplemental appropriation ordinance increasing appropriation in the General Fund
by $20,000.00 and decreasing the unaudited, unreserved, undesignated fund balance by the same
amount; and
2. Adopt a resolution authorizing payment to Kelly, Hart and Hallman, LLP, in an amount not to exceed
$20,000.00 for assistance in the evaluation and creation of a Retiree Health Care Trust Program for
firefighters hired after January 1, 2009.
DISCUSSION:
The Collective Bargaining Agreement (CBA) between the City of Fort Worth and the Fort Worth
Professional Firefighters Association (Association) calls for the formation of a Voluntary Employee
Beneficiary Association (VEBA) Trust Committee to evaluate VEBA Trust rules, IRS Code provisions,
actuarial evaluations or other existing prefunded programs for firefighters hired on or after January 1,
2009. The Committee has the responsibility to report on options to structure a VEBA within the provisions
of the CBA. The Committee was established in accordance with the Agreement, three members were
appointed by the City Manager and three members were appointed by the Association.
The Financial Management Services Department requested assistance from the Law Department
regarding the establishment of the VEBA trust, and related tax matters. The attorneys in the Law
Department lack the required expertise in trust and tax matters and in order to assist the Committee and
the City, the Law and the Financial Management Services Departments are recommending that outside
counsel be retained.
The law firm of Kelly, Hart and Hallman, LLP, possesses the required knowledge and expertise in tax and
trust issues needed to assist the City and the Committee and has agreed to represent the City. The Law
Department will use in -house attorneys where possible to minimize the expenditure of funds for outside
counsel.
Logname: 12ARTICLE 15KHH Page 1 of 2
FISCAL INFORMATION / CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached supplemental appropriation ordinance, funds will be available in the current
operating budget, as appropriated, of the General Fund. Upon approval, the unaudited, unreserved,
undesignated fund balance will exceed the minimum reserve as outlined in the Financial Management
Policy Statements.
FUND CENTERS:
TO Fund /Account/Centers
GG01 539120 0121000
CERTIFICATIONS:
Submitted for City Manager's Office by:
Originating Department Head:
Additional Information Contact:
Logname: 12ARTICLE 15KHH
FROM Fund /Account/Centers
$20,000.00 GG01 539120 0121000
Susan Alanis (8180)
Tom Higgins (6575)
Sarah Fullenwider (7606)
Christopher A. Troutt (7609)
$20,000.00
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