HomeMy WebLinkAboutOrdinance 14580~-
Ordinance No.
• AN ORDINANCE APPROPRIATING $1,200,000 TO INSURANCE FUND AND DECREASING
THE UNRESERVED, UNDESIGNATED INSURANCE FUND BALANCE BY THE SAME
AMOUNT FOR PURPOSE OF PAYMENT OF THE FIRST INSTALLMENT AND ATTORNEYS
FEES, COSTS AND EXPENSES RELATED TO THE SETTLEMENT OF THE FORT WORTH
INDEPENDENT SCHOOL DISTRICT AND SOUTHWESTERN BELL TELEPHONE
COMPANY LAWSUIT, PROVIDING FOR A SEVERABILTTY CLAUSE, MAKING THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES AND REPEALING ALL PRIOR
ORDINANCES IN CONFLICT HEREWITH, AND PROVIDING AN EFFECTIVE DATE.
BE TT 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 the Fiscal Year 2000-01 and in the
Budget of the City Manager, there shall also be increased appropriations in Insurance Fund in the amount of
$1,200,000; thereby decreasing the unreserved, undesignated Fund balance by the same amount for the purpose of
payment of the first installment and attorneys fees, costs and expenses related to the settlement of the Fort Worth
Independent School District and Southwestern Bell Telephone Company lawsuit.
SECTION 2.
That should any portion, section or part of a section of this ordinance be declazed 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 No. 14286 and all other ordinances and appropriations amending
the same except in those instances where the provisions of this ordinance aze in direct conflict with such other
ordinances and appropriations, ui which instance said conflicting provisions of said pnor ordinances and appropriations
are hereby expressly repealed.
SECTION 4
This ordinance shall take effect upon adoption.
APP OVED AS TO F AND LEGALITY
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City Attorney
ADOPTED AND EFFECTIVE. ~`}' ~ r ~ -~~
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City o. f Fort Worth, Texas
~1~Ayar And ~auncil cai»mun~cAtian
DATE REFERENCE NUMBER LOG NAME PAGE
4/3/01 G-13198 12FWISD 1 of 2
SUBJECT AUTHORIZE FINAL SETTLEMENT AGREEMENT IN LITIGATION STYLED FORT
WORTH INDEPENDENT SCHOOL DISTRICT V CITY OF FORT WORTH AND
SOUTHWESTERN BELL TELEPHONE COMPANY, CAUSE NO 348-156227-94, AND
ADOPT RELATED APPROPRIATION ORDINANCE
RECOMMENDATION
It is recommended that the City Council
1 Authorize the City Manager to execute a final Settlement Agreement in the above referenced
lawsuit; and
2 Adopt the attached supplemental appropriation ordinance increasing appropriations in the Insurance
Fund in the amount of $1,200,000 and decreasing. the unreserved, undesignated fund balance by
the same amount to pay the first annual installment payment of $1 1 million to the Fort Worth I S D
under the Settlement Agreement and to pay attorneys fees, costs and expenses in the case, which
are estimated to be $100,000
DISCUSSION
The City of Fort Worth adopted two ordinances in December 1936 (Ordinance Nos. 1933 and 1935),
the terms of which were approved and accepted by the Fort Worth I S D (FWISD) and Southwestern
Bell Telephone Company (SWBT), and which had the effect of settling certain ad valorem tax disputes
and related litigation involving taxation of SWBT facilities in the City The ordinances provided for the
assessment and collection of specified payments from SWBT and provided for the sharing of those
revenues between the City and FWISD
In September 1992, the City adopted Ordinance No 11163 which (among other things) excluded
FWISD from further participation in the revenues derived by the City under the 1936 ordinances
On October 31, 1994, FWISD sued the City and Southwestern Bell in the 348th District Court, Tarrant
County, asserting several causes of action based on the 1936 revenue sharing arrangement. The trial
court granted a summary judgment in favor of the City and SWBT, which was affirmed by the Court of
Appeals FWISD appealed to the Texas Supreme Court, which affirmed the summary judgment in part
and reversed in part, remanding a portion of the case back to the trial court for further proceedings As
a result of the Supreme Court's ruling, the sole remaining issue between the City and FWISD was
FWISD's claim of underpayments under Ordinance No 1935 for the period from 1966 to 1992
The City and FWISD agreed to mediate their dispute and a mediation session was held on August 3,
2000 As a result of the mediation, on August 8, 2000, a Compromise and Settlement was executed
which outlined the terms and conditions upon which the City and FWISD agreed to settle the case, and
this action was ratified by the FWISD Board on August 8, 2000, and the City Council on August 15,
2000 Subsequent discussions have centered on fleshing out the terms of the final settlement, and
principally have concerned the clauses involved with the release of the reverter interest described
below '
City of Fort Worth, Texas
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DATE REFERENCE NUMBER LOG NAME PAGE
4/3/01 G-13198 12FWISD 2 of 2
SUBJECT AUTHORIZE FINAL SETTLEMENT AGREEMENT IN LITIGATION STYLED FORT
WORTH INDEPENDENT SCHOOL DISTRICT V CITY OF FORT WORTH AND
SOUTHWESTERN BELL TELEPHONE COMPANY, CAUSE NO 348-156227-94, AND
/ADOPT RELATED APPROPRIATION ORDINANCE
The attached Settlement Agreement incorporates the final terms of settlement between the City and
FWISD in the litigation The Settlement Agreement can be summarized as follows
• The City will pay FWISD $5 5 million (in equal annual installments of $1 1 million) over the next
five years, and
• The City will release its reversionary interest in the approximately 17 acre tract of land located
east of Farrington Field, in return fora 50% interest in the net proceeds of disposition of the
property, as defined in the Settlement Agreement; and
• The City and FWISD will release all claims against each other in the litigation, as specified in the
Settlement Agreement.
FISCAL INFORi1/IATION/CERTIFICATION
The Finance Director certifies that upon adoption of the attached supplemental appropriation ordinance
funds will be available for this agreement in the current operating budget, as appropriated, of the
Insurance Fund.. Upon approval of the above recommendations, the unreserved, undesignated fund
balance of the Insurance Fund will be $5,575,205
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Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) ~_
FE71 534050 0157120 $1,100,000 00 ~ppRpVED
Charles Boswell 8511 FE71 534060 0157120 $ 100,000 00 ~~~~~~~
Originating Department Head: , ~
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David Yett 7606 (from) ~-PR ~
FE71 534050 0157120 $1,100,000.00 y ~
Additional Information Contact: FE71 534060 0157120 $ 100,000 00 ~ ~~''"^"'"''
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