HomeMy WebLinkAboutResolution 4058-01-2012A Resolution
NO. 4058 -01 -2012
AUTHORIZING THE CITY ATTORNEY TO RETAIN
THE LAW FIRM OF KELLY, HART AND HALLMAN L.L.P.
WHEREAS, 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. and
WHEREAS, one task of the committee is to report on options to structure a VEBA within the
provisions of the CBA; and
WHEREAS, because of the extraordinary importance of the issues raised, it is necessary to
retain outside legal counsel to represent the City in this matter; and
WHEREAS, the law firm of Kelly, Hart and Hallman, L.L.P. possesses the required knowledge
and expertise in tax and trust issues and has agreed to represent the City;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS:
I.
That the City Attorney is hereby authorized to retain the law firm of Kelly, Hart and Hallman
L.L.P. as outside counsel pursuant to Chapter VI, Section 3, of the City Charter to represent the City in
advising the VEBA Trust Committee.
II.
That, as far as practicable, the compensation to be paid to Kelly, Hart and Hallman, L.L.P. for
services is hereby fixed in an amount not to exceed $20,000.00.
AND IT IS SO RESOLVED.
Adopted this 24`h day of January, 2012.
ATT
nald P. Gonzales, Assistant City Secretary
9_1
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 1/24/2012 - 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.
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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 F u nd/Accou nt/C enters FROM Fund /Account/Centers
GG01 539120 0121000 $20.000.00 GG01 539120 0121000 $20,000.00
CERTIFICATIONS:
Susan Alanis (8180)
Submitted for City Manager's Office by: Tom Higgins (6575)
Originating Department Head: Sarah Fullenwider (7606)
Additional Information Contact: Christopher A. Troutt (7609)
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