HomeMy WebLinkAboutResolution 4431-04-2015 I
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A Resolution f
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NO. 4431-04-2015
AUTHORIZING THE EMPLOYMENT OF
KELLY, HART & HALLMAN, L.L.P., AS OUTSIDE LEGAL
COUNSEL TO REPRESENT THE CITY IN THE LAWSUIT
ENTITLED JAMES TATE, DONALD CLARK AND BRIAN RAY v.
CITY OF FORT WORTH, A TEXAS MUNICIPAL CORPORATION,
CASE 4:15-CV-00115, AND ANY OTHER RELATED LITIGATION,
AND AUTHORIZING PAYMENT OF COUNSEL FEES
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WHEREAS, on October 21, 2014, the City Council adopted Ordinance No. 21510-10-2014,
which amended the Retirement Ordinance to reduce benefits for future firefighters and for future service
accruals for existing firefighters; and
WHEREAS, on March 12, 2015, the City was served in a lawsuit filed against the City by James
Tate, Donald Clark and Brian Ray related to the pension benefit changes adopted by the City Council on
October 21, 2014; and
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WHEREAS, it is possible that there will be additional lawsuits filed against the City related to
the pension benefit changes adopted by the City Council on October 21, 2014; and
WHEREAS, because of the extraordinary complexity of this area of law, the City Manager and
the City Attorney recommend that the City retain outside legal counsel with knowledge and expertise in
matters involving pension law; and
WHEREAS, the law firm of Kelly, Hart and Hallman, L.L.P., possesses the required knowledge
and expertise in pension law; and
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WHEREAS, the law firm of Kelly, Hart and Hallman, L.L.P., is currently representing the City
in similar litigation related to pension changes for police officers and general employees.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FORT WORTH, TEXAS, THAT:
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oRTWo TH
Resolution No. 4431-04-2015
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The City is authorized to retain the law firm of Kelly, Hart and Hallman, L.L.P., as
outside legal counsel pursuant to Chapter VI, Section 3, of the City Charter to represent the City in the
above referenced lawsuit, and any other litigation related to the Retirement Ordinance amendments
adopted by City Council on October 21, 2014.
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The City is hereby authorized to compensate 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 21, 2014 in an amount up to $100,000.00.
Adopted this 7th day of April, 2015.
ATTEST: ,c,'°' 000 0000 a a
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By
Mary ayse , ty Se etary �a ��000000°o ap
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ORT WORT i
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION:_ 4pproved on,�4/7L2015'� Resolutionallo. 4431-04=2015 ;
DATE: Tuesday, April 07, 2015 REFERENCE NO.: G-18451
LOG NAME: 12FIREFIGHTER PENSION BENEFITS LITIGATION
SUBJECT:
Adopt Resolution Authorizing the Employment of Kelly, Hart, and Hallman L.L.P., as Outside Counsel to
Represent the City in the Lawsuit Entitled James Tate, Donald Clark, and Brian Ray v. City of Fort Worth, a
Texas Municipal Corporation, Case No. 4:15-CV-00115, and any Litigation Related to the Pension Benefit
Changes Adopted by the City Council on October 21, 2014, and Authorizing Payment of Counsel Fees in a
Total Amount Up to $100,000.00 (ALL COUNCIL DISTRICTS)
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RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution authorizing the employment of Kelly,
Hart, and Hallman L.L.P., as outside counsel to represent the City in the lawsuit entitled James Tate,
Donald Clark, and Brian Ray v. City of Fort Worth, a Texas Municipal Corporation, Case No. 4:15-CV-
00115, and any other litigation related to the pension benefit changes adopted by the City Council on
October 21, 2014, and authorizing payment of counsel fees in a total amount up to $100,000.00.
DISCUSSION:
In 1945, the City of Fort Worth established the Employees' Retirement Fund of the City of Fort Worth
(Fund) which is a tax-qualified government pension plan (Plan). The Fund is administered by the Board of
Trustees of the Fund (Board). Since 2007, the Plan has been governed by 62431 of the Texas Revised
Civil Statutes. The statute permits both the Board and the City Council to make rules governing the Plan.
However, only the City Council can make changes to benefits. The Plan is also subject to Article 16,
Section 66 of the Texas Constitution.
On October 21, 2014, the City Council adopted Ordinance No. 21510-10-2014, which amended the
Retirement Ordinance to reduce benefits for future firefighters and to reduce benefits for future service
accrual for existing firefighters.
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On March 12, 2015, the City was served in a lawsuit filed against the City by James Tate, Donald Clark,
and Brian Ray, firefighter members of The Plan. The lawsuit challenges the constitutionality of the pension
benefit changes adopted by City Council on October 21, 2014 under both the Texas and U.S.
Constitutions.
The City Manager and the City Attorney agree that, because of the extraordinary complexity of this area of
law it is necessary to retain outside legal counsel with significant knowledge in pension law to ensure that
the City's interests are protected. Kelly, Hart, and Hallman L.L.P., has agreed to represent the City in this
litigation. The attorneys with this law firm have experience in a wide range of benefit matters, including
pension, and are currently representing the City in similiar litigation in federal court filed by police officer
members of The Plan. Chapter VI, Section 3 of the City Charter requires the City Council to approve the
retention of any outside legal counsel for assistance to the City Attorney. Accordingly, it is recommended
that the City Council adopt the attached resolution authorizing the retention of Kelly, Hart, and Hallman,
L.L.P., to represent the City in the above referenced lawsuit, and in any other litigation related to the
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Logname: 12FIREFIGHTER PENSION BENEFITS LITIGATION Page 1 of 2
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pension benefit changes adopted by City Council on October 21, 2014. It is also recommended that the
City Council authorize payment of$100,000.00 in counsel fees for all litigation related to the pension
benefit changes made on October 21, 2014.
FISCAL INFORMATION /CERTIFICATION:
The Fiscal Year 2015 budget includes appropriations of$600,000.00 in the Risk Management Fund for
Lawsuit Expenses. To date, $352,104.13 of those appropriations have been expended. Upon approval of
these recommendations, the Financial Management Services Director certifies that funds are available
within the existing appropriations for this expenditure.
FUND CENTERS:
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TO Fund/Account/Centers FROM Fund/Account/Centers
FE71 534060 0137120 $100,000.00
CERTIFICATIONS:
Submitted for City Manager's Office by: Susan Alanis (8180)
Originating Department Head: Sarah Fullenwider (7623)
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Additional Information Contact: Gerald Pruitt (7616)
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Logname: 12FIREFIGHTER PENSION BENEFITS LITIGATION Page 2 of 2