HomeMy WebLinkAboutResolution 6024-11-2024A Resolution
NO.6024-11-2024
AUTHORIZING THE CITY ATTORNEY TO INCREASE THE AMOUNT TO BE
PAID TO THE LAW FIRM OF KELLY HART & HALLMAN, LLP, AS OUTSIDE
COUNSEL FOR LEGAL SERVICES RELATED TO LAWSUITS
CHALLENGING THE CITY'S SHORT-TERM RENTAL ORDINANCES
WHEREAS, on March 2, 2018, and February 14, 2023, the City of Fort Worth adopted
Ordinance Nos. 23110-02-2018 and 26005-02-2023 to regulate short term rentals; and
WHEREAS, the City has been sued challenging the City's Ordinance Nos. 23110-02-
2018 and 26005-02-2023, in Cause No. 236-342969-23, Kelray LLC, et
al. v. City of Fort Worth; and
WHEREAS, because of the extraordinary complexity of this area of law and
importance to the City, the City hired the Law Firm of Kelly Hart &Hallman, LLP, to
represent the City in any Iitigation related to short term rentals; and
WHEREAS, the City, on September 26, 2024, hired the Law Firm of Kelly Hart &
Hallman, LLP, as outside counsel to provide legal representation regarding any Iawsuit filed
challenging the City's short-term rental ordinances; and
WHEREAS, to date, the cost of legal services by Kelly Hart & Hallman, LLP, as
outside counsel to provide legal representation regarding any Iawsuit filed challenging the
City's short-term rental ordinances, has been approximately $139,860.00;
WHEREAS, the subject litigation is still pending and it is estimated that an additional
amount of approximately $300,000.00 beyond the current authorized
$150,000.00 will be needed for the legal services necessary to bring these lawsuits to a
successful conclusion.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS:
That the compensation authorized to be paid to the Law Firm of Kelly Hart &
Hallman, LLP, as outside counsel, to provide legal representation regarding any lawsuit filed
challenging the City's game room ordinances, is hereby increased from
$150,000.00 to an amount not to exceed $450,000.00.
Adopted this 19'h day of November, 2024.
ATTEST:
By:
.lannette S. Goodall, City Secretary
City of Fort Worth, Texas
Mayor and Council Communication
DATE: 11/19/24 M&C FILE NUMBER: M&C 24-1013
LOG NAME: 12SHORT TERM RENTAL LITIGATION ADDL FUNDS
SUBJECT
(ALL) Adopt Resolution Authorizing an Increase of $300,000.00 in the Total Amount to be Paid to the Law Firm of Kelly Hart & Hallman LLP as
Outside Counsel to Assist and Represent the City in Matters Relating to Lawsuits Challenging the City's Short -Term Rental Ordinances for a Total
Amount of $450,000.00
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution authorizing an increase in the amount of $300,000.00 to the maximum
amount to be paid the law firm of Kelly Hart & Hallman LLP as outside legal counsel to assist and represent the City in matters related to lawsuits
filed challenging the City's short-term rental ordinances, for a total amount of $450,000.00.
DISCUSSION:
The City has historically not permitted short-term rentals in residential districts. The City Council adopted Ordinance Number'23110-02 2018 to
confirm this prohibition. This year the Fort Worth City Council adopted Ordinance Number 26005-02-2023 requiring registration of short term
rentals where are allowed by zoning. The City has been sued in a lawsuit challenging the.Clty's new short-term rental ordinances, Cause No. 236-
342969-23, Kelra y LLC, et al. v. City of Fort Worth.
Due to the complex nature of the litigation and the importance to the City and the current caseload of the City Attorney's Office, the City desires the
law firm of Kelly Hart & Hallman, LLP to represent the City in any litigation related to the short-term rental ordinances.
Litigation is still pending, and it is estimated that an additional amount of approximately $300,000.00 beyond the current authorized $150,000.00
will be needed for the legal services necessary to bring these lawsuits to a successful conclusion.
Adoption of this Resolution will increase the amount of compensation to be paid to the Law Firm of Kelly Hart & Hallman, LLP, by $300,000.00, for
a total amount of $450,000.00. Funding is budgeted in the Lawsuit Expenses account within the Risk Financing Fund forthe Human Resources
Department.
Legal fees are not expected to exceed $450,000.00.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION l CERTIFICATION:
The Director of Finance certifies that upon approval of the recommendation, funds are available in the current operating budget, as previously
appropriated, in the Risk Financing Fund. Prior to an expenditure being incurred, the Human Resources Department has the responsibility to
validate the availability of funds.
Submitted_for City Manager's Office W. ALL ACMs 6122
Originating Business Unit Head: Leann Guzman 8973
Additional Information Contact: Leann Guzman 8973