HomeMy WebLinkAboutResolution 4213-06-2013 A Resolution
NO. 4213-06.2013
AUTHORIZING AN INCREASE IN THE MAXIMUM AMOUNT
TO BE PAID TO KELLY, HART & HALLMAN, L.L.P. AS OUTSIDE
LEGAL COUNSEL TO REPRESENT THE CITY IN THE LAWSUITS
ENTITLED CITY OF FORT WORTH v. EMPLOYEES' RETIREMENT
FUND OF THE CITY OF FORT WORTH, CASE 342-262392-13, AND
RICHARD VAN HOUTEN, JR. AND STEPHEN HALL v. CITY OF
FORT WORTH, A TEXAS MUNICIPAL CORPORATION,
CASE 4:12-CV-00826, AND ANY OTHER RELATED LITIGATION
WHEREAS, on October 23, 2012, the City Council adopted Ordinance No. 20471-10-2012,
which amended the Retirement Ordinance to reduce benefits for future police officers and for fixture
service accruals for existing police officers and general employees; and
WHEREAS, on October 23, 2012, the City of Fort Worth filed a declaratory action against the
Employees' Retirement Fund of the City of Fort Worth (Fund) requesting a Court to declare that the
election called for police officers only to increase their contributions to the Fund was in violation of
Article 6243i, and that the pension benefit changes adopted by the City Council are constitutional; and
WHEREAS, on November 6, 2012, the City Council adopted Resolution No. 4142-11-2012,
ratifying the filing of the declaratory action against the Fund and the employment of Kelly, Hart and
Hallman, L.L.P., as outside legal counsel to represent the City in the lawsuit against the Fund, and
authorized compensation in an amount up to $100,000.00; and
WHEREAS, on November 19, 2012, a lawsuit was filed against the City by Richard Van
Houten, Jr. and Stephen Hall related to the pension benefit changes adopted by the City Council on
October 23, 2012; and
WHEREAS, on December 4, 2012, the City Council adopted Resolution No. 4152-12-2012,
authorizing the employment of Kelly, Hart and .Hallman, L.L.P., as outside legal counsel to represent the
City in the Van Houten, et al. v. City of Fort Worth lawsuit, and authorizing compensation in an amount
up to $200,000.00 for both lawsuits and any other litigation related to the Retirement Ordinance changes
adopted by Council on October 23, 2012; and
WHEREAS, to date, the total cost of legal services to represent the City of Fort Worth in the
subject lawsuits have totaled $158,000,00; and
WHEREAS, due to the complex nature of the this lawsuit it is estimated that an additional
amount of approximately $200,000.00 beyond the current authorized cost of$200,000.00 will be needed
for the legal services necessary to bring these lawsuits to a successful conclusion;
FORT WORTi�
Resolution No.4213-06-2013
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT:
1.
The City is authorized to retain the law firm of Kelly, Hart and Hallman, L.L.P., as outside legal
counsel pursuant to Chapter V1, Section 3, of the City Charter to represent the City in the above
referenced lawsuits, and any other litigation related to the Retirement Ordinance amendments adopted
by City Council on October 23, 2012.
2.
The City is hereby authorized to increase the maximum to be paid to Kelly, Hart and Hallman,
L.L.P., for its representation of the City in all litigation related to the pension benefit changes adopted
by City Council on October 23, 2012 in an amount up to $400,000.00.
Adopted this 4'h day of June, 2013.
ATTEST: roar�4
A:Y U000000 A
ofy 0
Aj AL, 00 0
MMQ
By:
Mary Kayser, ity Seer 5 0 tary 000 0000 Ay
�4�4
'A--j—r
FORT WORT .11161....................
4'111�
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 614/2013 Resolution No. 4213-06-2013 & Ordinance No
20783-06-2013
lrlLFI!%(YUl d f(h11L:tt /,4f(II//.// 4 R N�/e://l /e,.i�r /iiia.a ;!¢.v.2 i.nf� /l iadd� escA/ t /mime Nov iiiamd. - -IIIIlb
DATE: Tuesday, June 04, 2013 REFERENCE NO.: G-17913
LOG NAME: 12KHHAMEND
SUBJECT:
Adopt Resolution Authorizing Increase of$200,000.00 to the Maximum Amount to be Paid to Kelly, Hart
and Hallman L.L.P., as Outside Counsel to Represent the City in the Lawsuits Entitled City of Fort Worth v.
Employees' Retirement Fund of the City of Fort Worth, Cause No. 342-262392-12, and Richard Van
Houten, Jr. and Stephen Hall v. City of Fort Worth, a Texas Municipal Corporation, Cause No. 4:12-CV-
00826, and Any Other Litigation Related to the Pension Benefit Changes Adopted by the City Council on
October 23, 2012, for a Total of$400,000.00, and Adopt Supplemental Appropriation Ordinance Increasing
Appropriations in the Risk Management Fund in the Amount of$200,000.00 and Decreasing the Assigned
Risk Management 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 the appropriations in the Risk
Management Fund in the amount of$200,000.00 and decreasing the Assigned Risk Management Fund
Balance by the same amount; and
2. Adopt the attached Resolution authorizing an increase in the amount of$200,000.00 to the maximum
amount to be paid to Kelly, Hart and Hallman L.L.P., as outside counsel to represent the City in the
lawsuits entitled City of Fort Worth v. Employees' Retirement Fund of the City of Fort Worth, Cause 342-
262392-12, and Richard Van Houten, Jr. and Stephen Hall v. City of Fort Worth, a Texas Municipal
Corporation, Cause 4:12-CV-00826, and any other litigation related to the pension benefit changes
adopted by the City Council on October 23, 2012, for a total amount of$400,000.00.
DISCUSSION:
On November 6, 2012, the City Council adopted (M&C G-17724) and Resolution No. 4142-11-2012, the
City Council ratified the employment of Kelly, Hart and Hallman, L.L.P., as outside legal counsel to
represent the City in the lawsuit entitled City of Fort Worth v. Employees' Retirement Fund of the City of
Fort Worth, Cause 342-262392-12, and authorized compensation in the amount up to $100,000.00.
On December 4, 2012, the City Council adopted (M&C G-17752) and Resolution No. 4152-12-2012,
approving the employment of Kelly, Hart and Hallman, L.L.P., as outside legal counsel to represent the
City in the lawsuit entitled Rick Van Houten and Stephen Hall v. City of Fort Worth, a Texas Municipal
Corporation, Cause 4:12-CV-00826, and authorized compensation in the amount up to $200,000.00 for
both lawsuits and any other litigation related to the Retirement Ordinance amendments adopted by the
City Council on October 23, 2012.
Because of the numerous issues addressed in the lawsuits, and the complexity of the issues involved in
Logname: 12KHHAMEND Page 1 of 2
both lawsuits, it is necessary to increase the maximum amount to be paid to Kelly, Hart and Hallman,
L.L.P. Adoption of this resolution will increase the amount of compensation to be paid to Kelly, Hart and
Hallman, L.L.P., by $200,000.00 for a total in the amount of$400,000.00.
FISCAL INFORMATION /CER"l-IFICATION:
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 Risk Management Fund. Upon approval, the fund balance of the
Risk Management Fund will be in compliance with the minimum reserved as outlined in the Financial
Management Policy Statements.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Accou nVC enters
FE71 534050 0137120 $200,000.00 FE71 534060 0137120 $200,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Sarah Fullenwider (7623)
Additional Information Contact: Gerald Pruitt (7616)
Logname: 1.2KHHAMEND Page 2 of 2