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HomeMy WebLinkAbout14579 ORD - 10/25/1978jkh:10- 25- 78;lst AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENGAGE THE CERTIFIED PUBLIC ACCOUNTANT FIRM OF LAVENTHOL AND HORWATH TO PROVIDE AN UPDATE OF THE 1974 "VISITOR HOUSING STUDY" TO PROVIDE A CURRENT ANALYSIS OF THE LODGING MARKET, AS MORE FULLY SET FORTH IN THE PROPOSAL LETTER, A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF, MARKED EXHIBIT "A "; AND DECLARING AN EMERGENCY. ' BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be and he is hereby authorize to engage the Certified Public Accountant firm of Laventhol and Horwath to provide an update of the 1974 "Visitor Housing Study" to provide a current analysis of the lodging market, as more fully set forth in the proposal letter, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A ". SECTION 2. The necessity to authorize engaging of the aforesaid firm for the purposes set forth at the earliest practicable date creates a public emergency and an imperative public necessity requiring the suspen- sion of the Charter rule that no ordinance or resolution shall be passed finally on the date of its introduction but that such ordinance or resolution shall be read at three several meetings of the City Council, and the Mayor having declared that such emergency and necessity exist, and having requested that said Charter rule be suspended, and that this ordinance be passed finally on the date of its introduction and take effect and be in full force and effect from and after its passage, IT IS ACCORDINGLY SO ORDAINED, this the 2Y?day of Octo b 1978. ATTEST: _Ilcdw 'le City'Secretary MAYOR THE APPROVED: 25th DAY OF OCTOBER, 1978: J. BRUCE AYCOCK, CITY ATTORNEY By 14) Assistant Attorney 14579 CITY OF CORPUS RISTI, TEXAS rJUL 0 8 NO LAVENTHOL & HORWATH [F CERTIFIED PUBLIC ACCOUNTANTS June 21, 1978 2001 BRYAN TOWER SUITE 2550 DALLAS. TEXAS 75201 (214) 741 -1600 A MEMBER OF HORWATH & HORWATH INTERNATIONAL WITH AFFILIATED OFFICES WORLDWIDE 2324255 A- ZS� w BUT+ 1313 � Mr. Archie N. Walker cg Mp�ypGER w Assistant City Manager 1st City of Corpus Christi, Texas 302 S. Shoreline 2� <<0: b' 53 9 P. O. Box 9277 Corpus Christi, Texas 78408 Dear Mr. Walker: In response to your request, we are pleased to present this engagement letter to prepare a report on the current lodging market conditions in the Corpus Christi area_ OBJECTIVES The primary objective of this project will be to provide the City of Corpus Christi with an independent assessment of the current status of the market and the need for additional rooms in the Corpus Christi area. Accordingly, the specific objectives of this engagement will be to: - Determine the current status of the lodging market as it relates to both the volume of business and the market mix. - Assess the general economic conditions in the com- munity and determine the probable growth rates in demand for lodging facilities. - Determine the number of rooms which could be supported by the Corpus Christi lodging market over the next five years and thereby determine how many new rooms could be market justified. - Estimate the average room rate which would be attainable in 1983. txj ,4 it Page 2 Mr. Archie N. Walker June 21, 1978 SCOPE Based on these objectives, the scope of our engagement letter will include, but not necessarily be limited to, the following pro- cedures. We will: - Meet with you and other representatives of the City to discuss the project and obtain any material which you have available concerning the status of the convention center project and the overall economy of the City. - Interview the management of the principal hotel properties in the market to obtain their assess- ment of the present market conditions. - Review the general economic conditions in the City which would provide a basis for establish- ing growth rates for future demand potential. - Project the demand for lodging facilities for the next five years and based on this analysis, estimate the number of new hotel rooms which could be supported by the market. - Project the probable increases in average room rates over the five year period. - Prepare a written report summarizing the results Of our analyses, conclusions and recommendations. RESTRICTIONS Our report will be based on estimates, assumptions and other informa- tion developed from research of the market, knowledge of the industry and meetings during which you will provide us certain information. The sources of information and bases of the estimates and assumptions will be stated in the appropriate report. The terms of this engagement are-such a e- suchthatewelwillohaverno obligation to revise this report to reflect events or conditions which occur subsequent to the last day of our fieldwork. However, we will be available to discuss the necessity Project. for revision in view of changes in the economic or market factors affecting the proposed We will not ascertain the legal and regulatory requirements appli- cable to this project, including zoning, other state and local government regulations, permits and licenses. 'Further, no effort J � Page 3 Mr. Archie N. Walker June 21, 1978 will be made to determine the possible effect on this project of present or future federal, state or local legislation including environmental or ecological matters or interpretations thereof. With respect to market demand analysis, our work will not include an in -depth analysis of the potential impact of possible energy shortages. Since the resultant market penetration projections will be based on estimates and assumptions which are inherently subject to vari- ation depending upon evolving events, we will not represent them as results that will actually be achieved. The reports and financial'projections are intended for the infor- mation of the officers, directors and management of the City of Corpus Christi or designated representatives, and neither the report nor its contents are to be referred to or quoted in any registration statement, prospectus, loan or other agreement or document. This report may be submitted to a bank or an insurance company for the purpose of securing financing. If you desire, we will, upon request, furnish you with written authorization to review this report with mortgage bankers or other commercial lend- ing institutions. If there is reason to believe that the desig- nated party or parties is not sufficiently sophisticated to under- stand the limitations on the scope of our engagement and the reason for our disclaimer of opinion, you will inform us and we Will provide the designated party with the appropriate explanation. FEES Our fees for this engagement will be based on the actual time expended at our standard rates, plus out -of- pocket costs. Based on the scope of work outlined in this letter, our fees would range between $4,000 and $5,000 and out -of- pocket expenses would not exceed $1,000. It should be noted that this fee estimate is based on the issuance of 100 copies of our report on our standard sta- tionery. Should you require additional copies or want to prepare specially printed reports similar to those produced in our ori- ginal engagement, the actual cost would be borne by the City of Corpus Christi in addition to the fees quoted above. Invoices for our services and out -of- pocket expenses will be rendered on a biweekly basis as the work progresses. Our invoices will be due and payable upon presentation. We appreciate the opportunity to present this engagement letter to the City of Corpus Christi and we look forward to renewing the fine working relationship which we enjoyed during our original - Page 4 Mr. Archie N. Walker June 21, 1978 study. If this letter is satisfactory, please sign the enclosed copy and return it to us as authorization to proceed with the engagement. Very truly yours, LAVENTHOL & HORWATH I)&-,I " J. Peter Kline, Partner JPK /ejw Enclosure 0 Corpus Christi, Texas c� day of CQJ �, 19 b TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, a public emergency and imperative necessity exist for the suspension of the Charter rule or requirement that no ordinance or resolution shall be passed finally on the date it is introduced, and that such ordinance or resolution shall be read at three meetings of the City Council; I, therefore, request that you suspend said Charter rule or requirement and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, MAYOR THE CITY OF CO CHRISTI, TEXAS The Charter rule was suspended by the following vote: Gabe Lozano, Sr. Bob Gulley David Diaz Ruth Gill Joe Holt Tony Juarez, Jr. Edward L. Sample The above ordinance was passed by the following vote: Gabe Lozano, Sr. Bob Gulley David Diaz Ruth Gill Joe Holt Tony Juarez, Jr. Edward L. Sample 1�� 145'