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HomeMy WebLinkAboutCity Council Resolutions (R-87-344)-10/21/1987 1 2 3 4 5 I I 6 I! 7 I! II 8 II II 9 II II 10 II 11 12 13 14 15 II II 16 II 17 I 18 19 20 21 22 23 24 25 26 . f\) r,f. \ ~n \ RESOLUTION R-87-344 A RESOLUTION SUPPORTING AMENDMENT NO. 17 ON THE NOVEMBER 3, 1987 GENERAL ELECTION BALLOT WHEREAS, the Texas Legislature has passed and the Governor has signed historic tort reform measures; and WHEREAS, those tort reform measures are highly advantageous for Texas cities and will provide a large measure of predictability and stability with regard to municipal liability; and WHEREAS, one of those tort reform measures has caused the following proposed Constitutional amendment to be placed on the November 3, 1987 general election ballot: "The constitutional amendment authorizing the legislature to define for all purposes the governmental and proprietary functions of a municipality;" and WHEREAS, such proposed amendment shall appear on the ballot as Amendment No. 17; and WHEREAS, the passage of Amendment No. 17 is needed to ensure meaningful and lasting tort reform for Texas cities; and WHEREAS, the Texas Municipal League has endorsed passage of Amendment 17; I I I I NOW, THEREFORE, BE IT RESOLVED by City Council that the Council passage of Amendment N. 17. the City of vigorously Colleyville support the ); ,J./ (day to d--.. on this the A-- of of October, ATTEST: CITY OF COLLEYVILLE LaVada Johnson City Secretary J. R. "Buck" Hubbard Mayor Amendment Number 17 - Tort Reform When Texas voters go to the polls on November 3, they will face twenty-five proposed amendments to the Texas Constitution, as well as two referenda. Several of the 25 proposed amendments, particularly Amendment 17, are extremely important to Texas cities. Amendment 17 was pi aced on the ballot when Senate Joint Resolution 26 was passed by the 70th regular session of the Texas legislature. S.J.R. 26 was an integral part of the TML-backed tort reform package. Amendment 17 would authorize the legislature--not the courts--to define the "governmental" and "proprietary" functions of Texas cities. The distinction between these two kinds of muni cipal functions is important from the standpoint of municipal liability exposure. A governmental function is generally understood to be one which a city performs as a political subdivision of the state and which benefits, directly or indirectly, all citizens of the state. A proprietary function, on the other hand, is one which a city undertakes purely for the benefit of its municipal citizens. When a city is engaged in a governmental function, its potential liabi I ity is limited. When it is engaged in a proprietary function, however, there are no limits to its potential liability. The distinction between the two kinds of functions, then, is a key determinant of a city's potential exposure to Iiabi I ity cl ai ms. Until the 1987 session of the legis I ature, state law did not provide lists of governmental and proprietary functions. As a result, the courts have decided, on a case-by-case basis, which municipal functions are proprietary <rid which are governmental. These court decisions have resulted in a crazyquilt of municipal I iabil ity. For example, proprietary functions--according to the courts--include street and sidewalk construction and maintenance, storm sewers, provision of water and electricity, parks <rid recreation activities, <rid more. I n other words, the courts had found that these functions were not governmental functions, <rid limited liability did not apply to them. To add to the confusion, maintenance of traffic signals has been held to be a governmental function, though street maintenance is proprietary. Provision of wastewater service is governmental, though water service is proprietary. Sanitary sewers are governmental, but storm sewers are proprietary. The operation of garbage trucks is governmental, but the repair of garbage trucks is proprietary. The examples go on <rid on. Tort reform measures passed this year will change that. S.B. 5, Fir st Called Session, actually lists governmental and proprietary functions. What's more, many functions which S.B. 5 lists as governmental had previously been classified by the courts as proprietary. In fact, the list of proprietary functions, for which a city has unl imited Iiabi I ity, includes only three activities: o Operation and maintenance of a public utility (but not water or sewer systems, which are classified as governmental);