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HomeMy WebLinkAboutResolution 4001-07-2011A Resolution NO. 4001 -07 -2011 TO INCREASE THE AMOUNT TO BE PAID TO THE LAW FIRMS OF KELLY HART & HALLMAN, L.L.P AND MCCALL, PARKHURST & HORTON, L.L.P., AS OUTSIDE COUNSEL TO ASSIST THE CITY ATTORNEY'S OFFICE IN THE 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, on February 15, 2011, (M &C G- 17205) the City Council authorized the employment of Kelly Hart & Hallman, L.L.P and McCall, Parkhurst & Horton, L.L.P., as outside counsel 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; and WHEREAS, an additional amount of $2,274.20 beyond the current authorized amount of $15,000.00 will be needed for the legal services performed by Kelly Hart & Hallman, L.L.P. and McCall, Parkhurst & Horton, L.L.P. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: I. The compensation authorized to be paid to the Law Firms of Kelly Hart & Hallman, L.L.P. and McCall, Parkhurst & Horton, L.L.P., as outside counsel in the preparation of a loan agreement and other instruments necessary to secure a loan to the Fort Worth Air and Space Museum Foundation is hereby increased from $15,000.00 to $17,274.20. Ads AT C Ma FoRTWORTH APPROVED CITY COUNCIL JUN 12 2011 City Secretmy of the City of Fort Worth, Tom City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/1212011 - Resolution No. 4001 DATE: Tuesday, July 12, 2011 REFERENCE NO.: * *G -17309 LOG NAME: 12AVIATION MUSEUM OUTSIDE COUNSEL INCREASE SUBJECT: Adopt Resolution Authorizing an Increase of $2,274.20, for a Total of $17,274.20, to Be Paid to the Law Firms of Kelly Hart & Hallman, L.L.P., and McCall, Parkhurst & Horton L.L.P., as Outside Legal Counsel 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 an increase of $2,274.20 to the maximum amount to be paid to the Law firms of Kelly Hart & Hallman, L.L.P., and McCall, Parkhurst & Horton, L.L.P., as outside legal counsel 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. 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. On February 15, 2011, the City Council approved M &C G -17205 which authorized the employment of Kelly Hart & Hallman, L.L.P., and McCall Parkhurst & Horton L.L.P., as outside Legal Counsel to assist and advise the City on legal issues related to the preparation of the Loan agreement and other instruments necessary to secure such loan in an amount not to exceed $15,000.00. In order to minimize legal fees, the City Attorney's Office conducted the negotiations and preliminary review and drafting of the majority of the documents, which constituted the bulk of the time devoted to this project. However, outside legal expertise was needed for complex commercial and financial issues such as perfecting a security interest and drafting of documents for filing of necessary security agreements to secure the City's interest in the loan. Due to the complex legal issues related to the preparation of loan documents, the cost was slightly more than anticipated. Therefore, it is recommended that the City Council authorize additional funds in the amount of $2,274.20 to cover the cost of the legal services. 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 FROM Fund /Account /Centers Logname: 12AVIATION MUSEUM OUTSIDE COUNSEL INCREASE Pagel of 2 GG01 538110 0121000 CERTIFICATIONS: Submitted for City Manager's Office by: Karen Montgomery (6222) Sarah J. Fullenwider (7606) Originating Department Head: Lena Ellis (8517) Additional Information Contact: Maleshia B. Farmer (7647) $2,274.20 Logname: 12AVIATION MUSEUM OUTSIDE COUNSEL INCREASE Page 2 of 2