HomeMy WebLinkAboutOrdinance 27047-08-2024Ordinance No. 27047-08-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE RISK FINANCING FUND IN THE AMOUNT OF
$9,600,000.00, FROM AVAILABLE NET POSITION, FOR THE PURPOSE OF
FUNDING LAWSUIT EXPENSES; 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 2023-2024 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Risk
Financing Fund in the amount of $9,600,000.00, from available net position, for the purpose of funding
lawsuit expenses.
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 26453-09-2023 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said prior ordinances and appropriations are hereby expressly repealed.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:
Christopher Tr&tl (Aug 26, 2024 10:31 CDT}
Assistant City Attorney
ADOPTED AND EFFECTIVE: August 13, 2024
CITY SECRETARY
A Azu
Jannette S. Goodall
City Secretary
a4 *ORT�a
*01-11
000000
000 000000000�
aa� rExa�
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/13/24 M&C FILE NUMBER: M&C 24-0625
LOG NAME: 12B1RCHETT BURKE AND FITZGERALD SETTLEMENT
SUBJECT
(ALL) Authorize Settlement and Payment in the Total Amount of $9,600,000.00 for full and Final Settlement of All Claims Related to the Lawsuits
Styled William Birchett v. City of Fort Worth, No. DC-19-01941, in the 162nd District Court, Dallas County, Texas; Ronald Burke v. City of Fort
Worth, No.: DC-19-07139, in the 193rd District Court, Dallas County, Texas; and Joel Fitzgerald v. Cifyof Fort Worth, No.: DC-19-08184, in the
191st District Court, Dallas County, Texas, and Authorize City Personnel to Execute and File the Necessary Documents to Dispose of those
Lawsuits
RECOMMEND TION:
It is recommended that the City Council:
1. Authorize settlement and payment in the total amount of $9,600,000.00 to William Birchett, Ronald Burke, Joel Fitzgerald, and their attomey,
Stephen A. Kennedy, for full and final settlement of all claims related to the lawsuits styled William Birchett v. City of Fort Worth, No. DC-19-
01941, in the 162nd District Court, Dallas County,Texas ; Ronald Burke v. City of Fort Worth, No.: DC-19-07139, in the 193rd District Court,
Dallas County, Texas; and Joel Fitzgerald v. City of Fort Worth, No.: DC-19-08184, in the 191st District Court, Dallas County, Texas;
2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund in the amount of
$9,600,000.00, from available net position, for the purpose of funding lawsuit expenses; and
3. Authorize the appropriate City personnel to execute all releases, agreements and court filings necessary to complete the settlement.
DISCUSSION:
William Burchett, Ronald Burke and Joel Fitzgerald are all former City employees who sued the City in 2019 under the Texas Whistleblower Act,
claiming that their employment ended because of retaliation against them for reporting violations of law.
Burke's lawsuit went to trial in April 2024 and a jury returned a verdict in his favor. The Final Judgment in favor of Burke totaled approximately $2.4
million. The City has begun the process of appealing that Final Judgment. The Birchett and Fitzgerald lawsuits were scheduled to go to trial in July
and October of this year.
After the Burke trial concluded, the parties participated in mediation on July 3, 2024. Mediation was successful and the parties agreed to settle the
three cases, as follows: (1) Burke's claims were settled for a total of $2 million; (2) Birchett's claims were settled for $2.4 million; and (3)
Fitzgerald's claims were settled for $5.2 million. The total of all settlements is $9.6 million, and the settlements include a full and final release of all
claims that Birchett, Burke, and Fitzgerald have against the City. Other than attorneyl's fees, as part of the settlement, the parties will bear their own
costs. The settlement of these three cases will resolve all three cases, with no need for trials or an appeal.
Approval of this settlement should not be construed as an admission of liability by the City of Fort Worth, as any liability in all three matters is
denied.
Funding is available for appropriation from net position of the Risk Financing Fund. The beginning net position balance is $39,323,418.07 and
after appropriation the new net position balance will be $29,723,418.07.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION 1 CERTIFICATION:
The Director of Finance certifies that funds are currently available from net position of the Risk Financing Fund, and upon approval of the above
recommendations and adoption of the attached appropriation ordinance, funds will be available in the current operating budget, as appropriated,
in the Risk Financing Fund. Prior to any expenditure being incurred, the Human Resources Department and the City's Attorney's Office have the
responsibility to validate the availability of funds.
Submitted for City Manager's Office by; ALL ACMs 6122
Originating Business Unit Head: Leann Guzman 8973
Additional Information Contact: Christopher Troutt 7609