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HomeMy WebLinkAboutMinutes City Council - 01/27/1982( MINUTES )e, CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING JANUARY 27, 1982 8:30 A. M. PRESENT: Mayor Luther Jones Council Members: Jack K. Dumphy Bob Gulley **Herbert L. Hawkins * Dr. Charles W. Kennedy Cliff Zarsky ABSENT: Mayor Pro Tem Betty N. Turner Ass't. City Manager James K. Lontos City Attorney J. Bruce Aycock City Secretary Bill G. Read Mayor Luther Jones called the meeting to order in the Council Chambers of City Hall. The invocation was given by Reverend Jess White of Glad Tidings Assembly of God, following which the Pledge of Allegiance to the Flag of the United States was led by Council Member Jack Dumphy. In the temporary absence of City Secretary Bill G. Read, Acting Assistant City Secretary Dorothy Zahn called the roll of required Char- ter Officers and verified that the necessary quorum was present to conduct a legally constituted meeting. A motion was made by Council Member Dumphy, seconded by Council Member Gulley, and passed unanimously that the Minutes of the Special Council Meeting of January 6, 1982 and the Regular Council Meetings of January 6 and January 13, 1982 be approved as presented. * * * * * * * * * * Mayor Jones called for the City Manager's Reports. Assistant City Manager James K. Lontos presented the following items with related comments and explanations and recommended that: 1. A public hearing be held February 24, 1982, on the adoption of both a Sanitary and Storm Sewer Master Plan for an approximate six square mile area along FM 624 west of Highway 77. The plans were prepared by Naismith Engineers, Inc. under contract to the City and are basically an extension to currently adopted plans east of the area. Existing developments such as Wood River, River Hills, Valley View and Quail Valley are within the areas of the Master Plans. Both plans were presented to and approved by the Planning Commission on January 19, 1982. MLBQ JLMED SSP i 91484 January 27, 1982 Page 2 * Council Member Charles W. Kennedy arrived at the meeting at 8:40 a.m. ** Council Member Herbert Hawkins arrived at the meeting at 8:41 a.m. In regard to item 1, Council Member Zarsky requested copies of the plan and maps prior the public hearing. Assistant City Manager Lontos explained the drainage and sewer plans for this area, which will be designed to assure that no pollution will enter the river since there will be no sewer intake above the Nueces River intake. City Attorney J. Bruce Aycock inquired if notices will be sent to residents of these areas and Mr. Lontos replied that there will be no notices sent in regard to this. He explained that his Staff is still working on a policy to notify property owners of various public hearings. He pointed out that there are six square miles affected by this change. Mr. Lontos stated that the Staff will place notices on public buildings and schools in the area. Discussion followed on appropriate drainage for this area. Council Member Gulley noted that Nueces County has some problems in that area and suggested that their plans need to be coordinated with the City's. Assistant City Manager Lontos assured the Council that he will pro- vide the County with a copy of the map and plans for this area. 2. A contract for $54,549.45 be awarded to Preis Properties, d/b/a Coastal Bend Sales, for repair of Hurricane Allen damage to the Oso Fishing Pier. Repairs include restoring the pier, located on Ocean Drive near the Naval Air Station, to its original elevation before the storm. The timber pier will be reconstructed in two sections with a total length of 525 feet and a width of 7 feet. Four shelter bays will be reconstructed. Preis Properties is the second low bidder. Award to the low bidder, Harbor Company of Robstown, is not recommended due to unsatisfactory performance on a previous contract at the Airport. An appropriation of $62,000 is needed for contract award which includes approximately $52,000 from FEMA and $10,000 from the Park bond funds. Assistant City Manager Lontos explained that the Staff is recom- mending award of bid to the second low bidder on this project; the low bidder, Harbor Company of Robstown, performed some work at the Airport; Minutes Regular Council Meeting January 27, 1982 Page 3 it seemed to be satisfactory; but the City had a large number of problems with the company in that they required more days than was anticipated. He stated that the Staff was very unhappy with the way this company operated at the Airport; therefore, the Staff is recommending that the bid be awarded to the second low bidder. Council Member Gulley stated that he understood -that there are some problems with the roof, the carpeting, air conditioning and other things at the Airport and inquired if that was the fault of the architect. Mr. Lontos explained that he did not feel that they are serious problems and pointed out that there are always some problems after a project is completed and they hope to resolve the problems at the Airport. 3. 10 acres of vacant land (Parcel 1) be acquired from the Catholic Diocese for future expansion and protection of the 0. N. Stevens Water Treatment Facility. This parcel is located on Hearn Road just north of Brooklane Drive between Five Points and Callicoatte Road. An appropriation of $95,775 from the Water System Bond Construction Fund is recommended including $92,750 for acquisition, $2,275.53 for appraisal services for Parcels 1 and 2 by Mr. John A. Erickson and $749.47 for closing costs. The acquisition is based on Mr. Erickson's appraisal. Parcel 2 is the Tucker property recently discussed with Council on which an additional report will be forthcoming in 2-3 weeks. Assistant City Manager Lontos referred to the proposed acquisition of the 26 -acre tract known as the Tucker Property which was discussed with the Council recently. He stated that the Staff is still working on alternate plans for the acquisition of Parcel 2. He explained that they have discussed the possibility of moving the house towards the front of the property and possibly acquiring a smaller portion of the tract. He stated that the developer has plans to develop the land for a residential subdivision and the City may be faced with a large amount of damages. In regard to Parcel 1 which is recommended for acquisition, Mr. Lontos assured the Council that this is vacant property and stated that the recommended purchase price is the exact appraisal. * * * * * * * * * * Minutes Regular Council Meeting January 27, 1082 Page 4 Mayor Jones interupted the presentation of the City Manager's Reports in order to conduct the bid opening on the following project which was scheduled for 9:00 a.m.: West Oso Outfall Box Culvert crossing at Old Brownsville Road. The box culvert will be an 8' by 6' structure which will later be supplemented by another box of equal size as the area develops. The City is committed to construct this crossing as part of the agreement with Sitterle approved by the City Council on May 6, 1981. The agreement pertains to the development of a 113 -acre business park bounded by S. Padre Island Drive, Bear Lane and Old Brownsville Road. The Sitterle contractor has begun off-site drainage work on the West Oso Outfall drainage channel wherein the box culvert will be constructed. The State Department of Highways and Public Transportation has indicated that they will construct steel guard rails at the structure. Assistant City Manager Lontos opened bids on this project from the following firms: Goldston Corporation; Heldenfels Brothers; E. J. Netek,Construction Company; and Civil Constructors, Inc of Katy, Texas. Mayor Jones expressed appreciation to the bidders who had submitted bids and stated that the bids will be tabled for 48 hours, pursuant to the requirements of the City Charter, and referred to the Staff for tabulation and recommendation. Mr. Lontos continued with the City Manager's Reports and presented the following items: 4. Purchase of a new engine for Unit 2193 or 1975 Wayne three -wheel street sweeper be noted., The unit's engine requires major overhaul estimated to cost $6,418.98. Cost of engine replacement is $6,200 which is less than the overhaul of the old engine. Engine installation will be done by the City Service Center. 5. Bids be received February 16, 1982, for a twelve months supply agreement for approximately 620,000 pounds of hydrogen peroxide for the Wastewater Services Department. The chemical is used for odor and corrosion control and in line treatment at the Broadway and Westside Treatment Plants and the McArdle trunk main. * 6. The property at 613 So. Shoreline Blvd. (former Tourist and Convention Bureau Bldg.) be leased to Ribs and Beef, Inc. for a barbecue restaurant for a term of three (3) years at a monthly rental of either $725 with a 10% annual escalation clause or 4% of the gross sales less sales tax whichever is greater with said lease subject to a sixty-day cancellation clause in case of sale of the property. Four bids were received. is item was withdrawn from consideration Minutes Regular Council Meeting January 27, 1982 Page 5 Assistant City Manager Lontos explained to the Council that he had received a call from Mr. Heffler who withdrew his bid on behalf of Ribs N Beef, Inc. because they felt that they would have to spend too much money to operate this business and they hesitated to do this consi- dering the fact that the Council has the prerogative to cancel the lease with only 60 days notice. Council Member Gulley stated that he was under the impression that at the time the building for the Tourist Bureau was donated to the City, there were provisions in connection with how the building should be used. City Secretary Read explained that the provision was that the building was to be retained by the City but he did not recall any other provision • in connection with the donation. Mayor Jones suggested that the lease be examined to be sure that there were no other provisions. 7. Bids be received February 23, 1982 for the sale of Lots 5 and 6 and a 10' wide strip adjoining the west portion of Lot 6, Block 6, Hampton Addition (110' x 150' total land area) located at 823 Furman Avenue. This property was acquired by the City on November 24, 1959 from the Childrens Services Board as a gift. It has been rented to the Nueces County MH -MR since February 9, 1972. The property is located on Furman Avenue between S. Staples Street and S. Tancahua Street. On December 9, 1981, the City Council approved the concept of selling the property with the proceeds to be used by MH -MR toward the purchase of the old American Legion Building adjacent to the Center's offices at 1626 South Brownlee. 8. A micro -computer system be purchased from Van Horn Office Supply Co., Van Horn, Texas for the Water Division on the basis of best bid of $7,580. The apparent low bid of $6,960 by Copy Distributing Company is on equipment which is not compatible with the equipment purchased for the Health Department. Both activities plan to share common programs. The Commodore unit offered by Copy Distributing would require separate programs with costs exceeding the $620 price difference. Bids were received from four firms. Price comparison shows a decrease of 15% over the purchase of a similar computer for the Health Department laboratory approximately a year ago. The Water Division will use the computer, which is included in the 1981-82 Budget, to develop procedures to obtain the most effective pump combinations, establish chemical feed rates for different raw water conditions and demand rates for more effective chemical use, develop statistical data for reports made to various agencies and automate meter and tap records. 9. Bids be received February 23, 1982 for six replacement refuse trucks for use by the Sanitation Division. The trucks will be diesel -powered. Minutes Regular Council Meeting January 27, 1982 Page 6 10. Bids be received February 16, 1982 for a one-year contract for field tire repair service for City -owned equipment to supplement service provided by the Maintenance Services department. The contract will establish unit prices for approximately 4,235 tire repairs. 11. Bids be received February 23, 1982 for repalcement pickup trucks and vans for the various City activities as follows: a. 3 compact pickups for Maintenance Services and the Sanitation Division. b. 16 1 -ton pickups for Street, Park and Recreation, Water, Vector, Animal and Air Pollution Control, Gas, Marina, and Wastewater Services. c. 4 3/4 -ton pickups for the Park and Street Divisions and the Warehouse d. A one ton pickup for the Gas Division. e. 3 vans for the Fire, Police and Traffic Engineering Departments Bids will be evaluated on the basis of price and estimated fuel costs over a five-year period on the basis of EPA gas mileage ratings, gasoline at $1.50 per gallon and mileage at 15,000 miles per vehicle per year. Council Member Gulley deviated from the consideration of the City Manager's Reports to read the resolution/letter from the Southside Kiwanis Club expressing support of Mayor Jones' position in connection with the acquisiton of land to protect the Naval Air Station. :Ie objected to the premise that the Council was considering moving the airfield. He stated that the Council is concerned about keeping the Navy here but they recognize their responsibility to all citizens of the City. 12. The deferred compensation plan for City employees be amended as follows: a. Set the maximum contribution at $7,500 or 33 1/3% of includible income whichever is less b. Add a "catchup" provision allowing an employee in any one or more of the last three years prior to retirement to make an additional contribution not to exceed a total of $15,000 if he has not made the maximum contribution in the prior years. c. Allow the employee to elect the method of distribution of benefits when he first becomes eligible for benefits. Currently the plan requires an employee to make an irrevocable selection of how the benefits will be distributed upon his entering the plan. d. Allow entry to the plan or c:hanges in contribution levels in the beginning of any month. Currently, entry or changes are allowed only at the beginning of the year. These attachments are recommended so that the plan will conform to the Internal Revenue Service Code. Minutes Regular Council Meeting January 27, 1982 Page 7 Mayor Jones inquired if this represented any cost to the City. Mr. Chuck Speed, Director of Personnel, assured the Council that there would be no cost to the City and explained that this amendment is to comply with the recent changes in the Internal Revenue Service Code. He explained the changes listed in the agenda item. Council Member Hawkins inquired as to why this change in the com- pensation plan was not delayed until the new budget was considered to be used as a part of the collective bargaining procedures. Mr. Speed explained that this has never been a part of negotiation procedures since it is not considered to be a benefit and the change is just to comply with the Code. Council Member Gulley stated that he is concerned that the City employees should have the best retirement plan possible, but he did not want to approve something that might become a burden on taxpayers in the future. Mr. Speed stated that the Staff appreciates his concern but explained that many hours are spent considering these requests and the Staff never recommends any changes that would create future expenses. He pointed out that this City's retirement program is certainly not the best one in Texas, and there are a number of cities that have much better benefits than the City of Corpus Christi. He again assured the Council that the Staff is not obligating citizens in the future. City Attorney Aycock pointed out that there will be no additional cost to the City if this is approved and the only cost would be adminis- tration time to handle the program. Discussion followed in regard to the City's retirement system. City Secretary Read referred to the item before the Council and pointed out that this is not the retirement system since it is taken out of each employee's salary and is their choice for a retirement pro- gram which is similar to the IRA. Council Member Kennedy referred to an article in the newspaper in regard to former City Manager Marvin Townsend's retirement and the fact Minutes Regular Council Meeting January 27, 1982 Page 8 that it would be necessary for him to work one day during 1982 in order to retain his benefits. Mr. Speed explained that in the process of negotiation with the firefighters, the Staff was under the impression that any employee who wanted to participate in the program would have to be employed for a certain period of time in 1982. He stated that they have since become aware that an employee could just decline to withdraw his funds from the system, therefore, it is no longer necessary for an employee to still be employed by the City in order to collect their benefits. Council Member Kennedy inquired as to the date that Mr. Townsend's vacation will expire and Mr. Speed replied that it will be about the middle of June. Mayor Jones called for comments from the audience on the City Manager's Reports. Mr. John Stensland, 337 Primrose Drive, referred to item llb, which recommends that bids be received for replacement pickup trucks for several divisions, including the Marina. He inquired about the source of funds for this vehicle. Mr. Lontos stated that it would be from the general fund, not the Marina fund. Mr. Stensland stated that he objected to having Marina funds spent for a pickup truck. Mayor Jones pointed out to Mr. Stensland that the rental on Marina boat slips is much cheaper in this City than in the surrounding communities He suggested that the Marina Board consider higher rates moreAin line to those in nearby cities. He stated that he realized that the rates were increased during this budget year but requested a comparison of the City's rates with that of other cities. Mr. Stensland explained that the Marina Board has recommended the increase of lease rentals in order to pay expenses and pointed out that at this time, the pleasure boat rate is average as compared to other cities; they recommended raising rates on charter boats and work boats; and the Marina Advisory Board is attempting to keep up with rates charged h" other cities. He expressed the opinion that the Marina Advisory Bn"rd Minutes Regular Council Meeting January 27, 1982 Page 9 did not feel that rates should be increased so much that no one but wealthy people could afford the slip rentals. Assistant City Manager Lontos stated that he wanted to correct his previous statement in regard to the purchase of the pickup truck for the Marina. He stated that rather than from the General Fund, the pickup truck will be purchased out of the operating fund of the Marina. Council Member Kennedy asked about the possibility of putting some type of temporary gasoline service at the Marina. Mr. Stensland explained that the Staff is waiting for a proposal from a private source to provide office space for the Marina in their building as well as a gasoline station. Mr. Lontos explained that before a service station could be in oper- ation, it would be necessary to tear out the pumps and storage tanks and this cannot be done until FEMA has approved this work. He explained that they have recently approved the rebuilding of the baitstand and the Kiwanis Park renovation but the City cannot go into the gasoline business until FEMA has approved it. Council Member Kennedy again inquired if a floating type of gasoline service station could be provided. Mr. Lontos indicated that this will be investigated. Council Member Gulley expressed the opinion that the boat slip rental rates should be increased somewhat but not priced so high that it would be prohibitive for citizens to have their boats docked there. Mr. Stensland concurred with this remark and stated that the Advisory Board did not feel that the Marina should be operated strictly for wealthy people, and as long as the City can pay expenses with the current rates, he was of the opinion that the rates should be kept reasonable. Mayor Jones stated that he had received a telephone call from Mr. Leon Loeb, Jr. about his boat having been moved, stating that he had also informed him that he had subleased the slip. Mr. Stensland explained the limitations on subleases. Mr. Stensland also stated that the ordinance has helped the Marina Supervisor control use of the slips and the subleasing which was under question. Minutes Regular Council Meeting January 27, 1982 Page 10 Mayor Jones stated that if the Marina Superintendent has difficulty in enforcing the ordinance, then the Council should know about it. He $ asked that a Staff report be provided on this particular complaint. Assistant City Manager Lontos stated that Mr. Tom Utter is investi- gating this incident and information will be provided the Council. There were no further comments on the City Manager's Reports. A motion was made by Council Member Zarsky that the City Manager's Reports, items 1 through 12, with the exception of item 6 which was with- drawn, be approved; seconded by Council Member Hawkins and passed by the following vote: Jones, Hawkins, Kennedy and Zarsky,voting "Aye"; Turner, absent from the meeting; Dumphy and Gulley, absent from the Council Chamber at the time the vote was taken. Mayor Jones called for the ordinances. Assistant City Manager Lontos explained the ordinances on the agenda and informed the Council that the ordinance authorizing the annexation contract between the City and Allied Development Company will be withdrawn because there are some problems with the contract. Mayor Jones ascertained that no one in the audience wished to comment on the ordinances; City Secretary Read polled the Council for their votes; and the following ordinances were passed: FIRST READING: AMENDING ORDINANCE NO. 13193 APPROVING A RATE SCHEDULE FOR THE RENTAL, SALE, AND MAINTENANCE OF CABLE TELEVISION CONVERTERS TO SUBSCRIBERS OF COMMUNITY ANTENNA TELEVISION SERVICES WITHIN THE CITY OF CORPUS CHRISTI BY ATHENA CABLEVISION OF CORPUS CHRISTI, INC.; PROVIDING FOR PUBLICATION. The foregoing ordinance was read for the first time and passed to its second reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, absent. SECOND READING: AMENDING THE CORPUS CHRISTI CITY CODE, AS AMENDED BY ADDING TO SECTION 36-89 A SUBSECTION N, ADOPTING RENTAL FEES FOR DISHES GLASSES, AND FLATWARE AT THE CONVENTION CENTER. (First Reading - 1/20/82) The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, "absent". tutes __.;gular Council Meeting January 27, 1982 Page 11 SECOND READING: AUTHORIZING THE CITY MANAGER TO EXECUTE A SUPPLEMENTAL LEASE AGREEMENT WITH THE DEPARTMENT OF TRANSPORTATION, FEDERAL AVIATION ADMINISTRATION, TO LEASE NUMBER DOT-FA76SW-1198, BY WHICH THE FEDERAL AVIATION ADMINISTRATION WILL PERMANENTLY RELINQUISH FORTY (40) PARKING SPACES FOR USE BY THE CORPUS CHRISTI INTERNATIONAL AIRPORT AND THE HENCEFORTH REDUCE THE ANNUAL RENT BY $1,863.60 PER ANNUM FOR THE REMAINING NINE (9) YEARS OF THE LEASE, ALL AS SHOWN IN EXHIBIT "A", A SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND MADE A PART HEREOF. (First Reading - 1/20/82). The foregoing ordinance was read for the second time and passed to its third reading by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, "absent". THIRD READING - ORDINANCE NO. 16836: AMENDING THE CORPUS CHRISTI CITY CODE, AS AMENDED BY AMENDING SECTION 53-252, SCHEDULE III - PARKING PROHIBITED AT ALL TIMES ON CERTAIN STREETS, BY DELETING THE FOLLOWING: SOUTH ALAMEDA STREET, BOTH SIDES, FROM HOFFMAN STREET TO A POINT 300 FEET SOUTH OF TEXAN TRAIL. SOUTH ALAMEDA STREET, BOTH SIDES, FROM MIRAMAR PLACE TO A POINT 300 FEET SOUTHEAST OF THE II'TERSECTION OF AVALON STREET. SOUTH ALAMEDA STREET, NORTH SIDE, BETWEEN MONTCLAIR DRIVE AND COUNTRY CLUB DRIVE. SOUTH ALAMEDA STREET, SOUTH SIDE, BETWEEN PARADE DRIVE AND OCEAN DRIVE. AND IN LIEU THEREOF ADDING: SOUTH ALAMEDA STREET, BOTH SIDES, FROM SOUTH LOUISIANA PARKWAY TO OCEAN DRIVE. AND AMENDING SECTION 53-253, SCHEDULE IV, STOPPING, STANDING OR PARKING PROHIBITED DURING CERTAIN HOURS ON CERTAIN STREETS, BY ADDING THERETO: BAHAMA DRIVE, BOTH SIDES, FROM WEBER ROAD TO MANHATTAN DRIVE - BETWEEN 9:00 A.M. AND 3:00 P.M. - SCHOOL DAYS ONLY. (First Reading - 1/13/82, Second Reading - 1/20/82) The foregoing ordinance was read for the third time and passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye" Turner, absent. \ ORDINANCE NO. 16837: AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PREIS PROPERTIES, d/b/a/ COASTAL BEND SALES, FOR REPAIR OF HURRICANE ALLEN DAMAGE TO THE OSO FISHING PIER; APPROPRIATING $62,000 OUT OF THE NO. 291 PARK BOND FUND OF WHICH $54,549.45 IS FOR THE CONSTRUCTION CONTRACT AND $7,450.55 IS FOR ADDITIONAL ENGINEERING, LEGAL ADVERTISING, CONTINGENCIES AND RELATED EXPENSES APPLICABLE TO PROJECT ' NO. 291-77-16, OSO FISHING PIER REPAIRS (HURRICANE ALLEN); AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, "absent". Mi nutes Regular Council Meeting January 2T, 1982 Page 12 ORDINANCE NO. 16838: AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS NECESSARY FOR THE ACQUISITION OF A 10 -ACRE TRACT IN CONNECTION WITH THE FUTURE EXPANSION OF THE O. N. STEVENS WATER TREATMENT PLANT, ,/'PROJECT NUMBER 205-81-4; APPROPRIATING OUT OF THE WATER SYSTEM BOND CONSTRUCTION FUND THE SUM OF $95,775 OF WHICH $92,750 IS FOR THE ACQUISITION AND $3,025 IS FOR APPRAISAL SERVICES FOR TWO PARCELS AND INCIDENTAL COSTS RELATED TO CLOSING; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, "absent". ORDINANCE NO. 16839: AMENDING THE DEFERRED COMPENSATION PLAN FOR CITY EMPLOYEES, ORDINANCE 13405, BY SPECIFYING THE MAXIMUM AMOUNTS WHICH MAY BE DEFERRED UNDER THE PLAN; CHANGING THE TIMES AT WHICH EMPLOYEES MAY JOIN THE PLAN; ALLOWING EMPLOYEES TO CHANGE THE METHOD OF DISTRIBUTION; AND DECLARING AN EMERGENCY. The Charter Rule was suspended and the foregoing ordinance passed by the following vote: Jones, Dumphy, Gulley, Hawkins, Kennedy and Zarsky voting, "Aye"; Turner, "absent". Mayor Jones called for discussion of current concerns and the status of pending items. Council Member Kennedy stated that he had attempted to contact Mr. John Keeling with the firm of Loventhol & Horwath. He stated that he had discussed the decisions with members of that firm that the Council was confronted with in regard to approving inducement resolutions for financing for outlying hotels through the use of "IRBs" and what effect such a practice would have on the establishment of hotels in the down- town area. He stated that he had also discussed with them the possibility of actions to encourage the large hotels to locate downtown in the City of Corpus Christi. He stated that the gentleman he talked with indicated that he would have a supplemental report for the Council. Dr. Kennedy stated that he had discussed the alternative financing and the ramifi- cations the use of the "IRBs" would have on large hotel development. Minutes Regular Council Meeting January 27, 1982 Page 13 He also stated that the Council had received a letter from Mr. Hob Conwell on the amount of income revenue being produced by the Convention Center. He pointed out, however, that there is a loss of convention bookings because of the fact that the City does not have enough hotel rooms. He suggested that a professional group such as Loventhol & Horwath be re- quested to make a presentation to the City Council in regard to hotel financing. He stated that the Council would need to determine the exact cost of such a presentation and suggested that this be scheduled for a special evening meeting. Dr. Kennedy informed the Council that the tentative date suggested for_this presentation was Monday, February 15, 1982, provided the Council decides to proceed to allow this presentation. He suggested that the Staff contact this company to determine the cost. He explained that he had discussed costs with the firm and an estimate of a presentation on the hotel issue which would require 8 hours of preparation would be approximately $640, and the other matter in regard to "IRBs", land mass and alternative financing would be approximately $800. He expressed the opinion that for less than $2,000, the Council could hear the entire report and he recommended that this be approved. Mayor Jones agreed that the Council should issue a directive to the Staff to investigate this. He stated that he had made a trip to Hershey's and discussed their contemplated hotel here in Corpus Christi. He stated that they had informed him that they would like to have an updated Loventhol Report. He therefore agreed with Dr. Kennedy that the City should contact that firm in regard to the cost of updating their report. Dr. Kennedy pointed out that the updated report suggested by Mayor Jones would cost more than the presentation he had suggested. Council Member Gulley stated that it was his understanding that this City does not have a major hotel interested in locating here be- cause they do not have the money or they cannot obtain the financing. He inquired as to how a study would offset those problems. 6 Minutes Regular Council Meeting January 27, 1982 Page 14 / Mayor Jones stated that the reason the hotels are not interested is because the local hotel rates are too low and interest rates are too high. Council Member Kennedy stated that he felt that what the Council neeced to know is if the "IRB" financing for outyling hotels will deter the possibility of attracting large hotels to the downtown area. He stated that he also felt that any City assistance for small hotels needed to be evaluated. Mayor Jones stated that while he was visiting with the Hershey representatives, he also talked to ALCOA, which is beginning to invest money in hotels and the real estate business. He stated that they agreed the average room rate in Corpus Christi was low and this is having an effect on hotels which might be interested in locating here. He stated that at the time he was there,•he suggested that ALCOA and Hershey discuss financing with the City of Corpus Christi, and if an updated Loventhol Report indicates that higher rates for rooms were possible here, they would be willing to construct a large hotel. Mayor Jones commented that an investor from the Phillipines has purchased a great deal of land on the bayfront and he has hurt this City by purchasing so much land unless it is developed. Council Member Dumphy suggested the possibility of reexamining the taxes on that property to ascertain if they are in line with the asking price. A motion was made by Council Member Kennedy that the Staff contact Loventhol & Horwath about the possibility of providing a report on hotel financing on Monday night, February 15, 1982, for a cost not to exceed approximately $2,000 for either one or two representatives to address the Council. The motion was seconded by Council Member Hawkins and passed unanimously by those present and voting. Mayor Jones called for discusion of the schedule of speaking engagements by the Council Members in support of the February 20 Bond Election. Minutes ' Regular Council Meeting January 27, 1982 Page 15 Mayor Jones mentioned the Harvey Weil lawsuit and inquired about the possibility of a closed session to discuss this subject. City Attorney Aycock stated that he felt that this would be helpful and agreed that next Wednesday would be satisfactory. Council Member Hawkins stated that he has been asking for a report on the transit system; his request has still not been addressed; and stated that he wants to know from the City Attorney if, he can file charges in accordance with the Freedom of Information Act. He stated that it is a very serious problem when the Council's requests are ignored and stated that he has had no response at all to his request. City Attorney Aycock explained to Mr. Hawkins that the Freedom of Information Act applies only to the Federal Government, but the City does comply with the State's Open Meeting Law. He stated it was his under- standing the Transit report is being prepared and will be available very soon. Mayor Jones pointed out -Co Mr. Hawkins that his accusation that the Staff is deliberately withholding information from the Council is simply not true because the Staff has responded to every Council request for information, and that Mr. Hawkins' suggestion that he must resort to invoking the Freedom of Information Act is ridiculous. He 'suggested to Mr. Hawkins that he visit the Transit Office to find out what he needed to know. Council Member Hawkins stated that he did not always agree with all of the Members of the Council and he did not believe that it was proper or ethical for the kayor to criticize him. He expressed the opinion that the report he requested is available and has been for seven months but the Staff has refused to provide it to him. He stated that he\has written down other requests that Council Members had made that are not being complied with and he will not stop until the Council is provided with the information as requested. ' Minutes Regular Council Meeting January 27, 1982 Page 16 /Council Member Gulley inquired of Mr. Lontos if there was actually / a report that had been available for seven months. Mr. Lontos replied that he has requested Mr. Tom Stewart, Director of Traffic & Transit, to prepare this report and it was his understanding that these reports were to be available for the Council on February 17, . 1982, prior to the public hearing. He stated that if the report is available now, he will provide a copy as soon as possible. Council Member Hawkins stated that Mr. Stewart had informed him at the time the public hearing was set that the report had been prepared and he would provide it for Mr. Hawkins. Council Member Kennedy referred to the problems that some people are having in regard to their not being allowed to rebuild a hunting camp. Mayor Jones suggested that this be listed as a discussion item next week. Council Member Kennedy suggested that an agenda item be prepared to discuss the direction that AID Ambulance System should take. He stated that the entire process should be studied in depth, primarily in relation to the transfer of non -emergency patients which the Medical Society is recommending be discontinued. * * * * * * * * * * i Mayor Jones called for petitions from the audience on matters not scheduled on the Agenda. City Secretary Read asked about the Council's plans to attend various dinners and events. He then stated that he will be out of the City for two days attending an Election School in San Antonio. Mr. Lewis Lovelace, representing the Corpus Christi Taxpayers' Association, referred to the action taken by the Council on January 14, at which time they designated the sparkling bayfront as a "blighted area". He suggested that the entire City be designated as a blighted area in fairness to all areas of the City. Mayor Jones stated that it was his understanding that the Council could declare the entire City as an eligible blighted area for the pur- , pose approving financing through the use of "IRBs". Minutes Regular Council Meeting January 27, 1982 Page 17 Mr. Lovelace stated that designating only two areas as blighted areas prevents other citizens from taking advantage of tax-exempt bonds. Discussion followed on this subject. Council Member Gulley asked the Staff to determine what interest rates were on regular legitimate municipal bonds at this time. Mr. J. E. O'Brien, also of the Taxpayers' Association, explained that the average price of municipal bonds as of January 15, 1982 was 13.44%. Assistant City Manager Lontos informed the Council that he had an update of information in regard to the matter referred to earlier in the meeting in connection with the moving of Mr. Loeb's boat. He explained that Mr. Loeb's boat was not moved on December 31, 1982, but it was tagged to inform him that the slip rental had not been paid. He stated that t Mr. Loeb was contacted on January 11 in a further attempt to obtain the rental, and after no action was taken by Mr. Loeb, the boat was moved and chained but no charges have been filed against him. * * * * * * * * * * There being no further business to come before the Council, on motion bi Council Member Gulley, seconded by Council Member Dumphy, and passed unanimously, the Regular Council Meeting was adjourned at 11:15 a.m., January 27, 1982.