HomeMy WebLinkAbout26-6387 - City Council - ResolutionRESOLUTION 26-6387
AUTHORIZING THE RETENTION OF THE LAW FIRMS OF MCCALL,
PARKHURST & HORTON L.L.P. AND KELLY HART & HALLMAN,
LLP AS OUTSIDE LEGAL COUNSEL FOR AN INTERNAL REVENUE
SERVICE INQUIRY RELATED TO WATER & SEWER SYSTEM
REVENUE BONDS AND AUTHORIZING PAYMENT OF COUNSEL FEES
IN AN AMOUNT NOT TO EXCEED $20,000.00
WHEREAS, the City of Fort Worth (City) is in need of short-term assistance in connection
with an inquiry from the Internal Revenue Service (IRS) related to revenue bonds issued by the
City's Water & Sewer System for which it is necessary to seek outside legal counsel with expertise
in public finance, tax law, and IRS procedures and regulations;
WHEREAS, City desires that the law firms of McCall, Parkhurst & Horton L.L.P.
and Kelly Hart & Hallman, LLP be retained to assist and represent the City in connection with the
IRS inquiry; and
WHEREAS, the law firms of McCall, Parkhurst & Horton L.L.P. and Kelly Hart &
Hallman, LLP possess the required knowledge and expertise to assist the City with the IRS inquiry.
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 firms of McCall, Parkhurst & Horton L.L.P.
and Kelly Hart & Hallman, LLP as outside legal counsel pursuant to Chapter VI, §3 of the
City Charter, for legal services related to the Internal Revenue Service Inquiry; and
2. The City is authorized to pay counsel fees to the law firms of McCall, Parkhurst &
Horton L.L.P. and Kelly Hart & Hallman, LLP in an amount not to exceed $20,000.00.
Adopted this September 29, 2026.
ATTEST:
By:
Jannette Goodall, City Secretary
FORT WORTH.
MAYOR AND COUNCIL COMMUNICATION
7.1.42 OUTSIDE COUNSEL IRS INQUIRY
DATE: 09/29/26 M&C FILE NUMBER: M&C 26-1148
DEPARTMENT: LAW
SUBJECT
(ALL) Adopt a Resolution Authorizing the City Attorney to Retain the Law Firms of McCall,
Parkhurst & Horton L.L.P. and Kelly Hart & Hallman, LLP as Outside Legal Counsel to Provide
Representation Related to an Internal Revenue Service Inquiry Involving Revenue Bonds of the
City's Water and Sewer System for a Cost Up to $20,000.00
RECOMMENDATION
It is recommended that the City Council adopt the attached resolution approving the
retention of the law firms of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman, LLP as
outside legal counsel to provide representation related to an Internal Revenue Service inquiry
involving revenue bonds of the City's Water and Sewer System for a cost up to $20,000.00.
DISCUSSION
The purpose of this Mayor and Council Communication (M&C) is to authorize engagement of
two law firms to represent the City in connection with an inquiry of the Internal Revenue Service
(IRS) regarding City of Fort Worth, Texas Water and Sewer System Revenue Bonds, Series 2009
(the Bonds).
In early September the IRS contacted the City requesting documents and information about
the Bonds. While there is currently no reason to believe this inquiry is anything more than a
routine, random audit, the Law Department is recommending engagement of outside attorneys
who specialize in public finance tax matters to aid in navigating IRS processes and regulations.
The law firms of McCall, Parkhurst & Horton L.L.P. and Kelly Hart & Hallman, LLP have successfully
served as co -bond counsel for the City on its general obligation and water system revenue
bonds for many years. Their co -bond counsel engagement addresses debt issuance and
related matters but does not encompass IRS inquiries or audits.
Therefore, a separate, matter -specific engagement is required. Stefano Taverna, a partner
with McCall, is a recognized expert in the field of public finance and tax law and will be leading
the engagement. Jonathan Cranz, a public finance partner with Kelly Hart, will be assisting.
Services will be billed at an hourly rate plus reimbursement of out-of-pocket expenses. The
attached resolution authorizes a cost up to $20,000.00. The Water Department anticipates
being able to absorb the costs of this engagement in its Fiscal Year 2027 operating budget.
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FORT WORTH.
Funding is budgeted in the Consultant & Other Prof Service account within the Water & Sewer
Fund in the Wastewater Administration Department.
This contract requires a Form 1295.
FISCAL IN FORMATION/CERTIFICATION
The Director of Finance certifies that funds are available in the current operating budget, as
previously appropriated, in the Water & Sewer Fund to support the approval of the above
recommendation and execution of the contract. Prior to any expense being incurred, the
Water Department has the responsibility to validate the availability of funds.
SUBMITTED FOR CITY MANAGER'S OFFICE BY: Jesica L. McEachern, # 5804
ORIGINATING BUSINESS UNIT HEAD: Leann Guzman # 8973
ADDITIONAL INFORMATION CONTACT: Denis McElroy, # 2758
ATTACHMENTS
1. MPH KHH IRS Resolution 2026 [7.1.42.1 - 1 page]
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