HomeMy WebLinkAboutOrdinance Book 18, Page 104, Ordinance Number 73-3-774ORDINANCE NO. 73-3-774
AN ORDINANCE AMENDING SECTION 13 OF AN ORDINANCE ENTITLED
"AN ORDINANCE GRANTING AN AUTHORIZATION TO KELLEY TRANSPORTATION
COMPANY, INC., FOR THE ESTABLISHMENT, MAINTENANCE AND OPERATION OF A
MOTOR BUS TRANSPORTATION SYSTEM IN THE CITY OF PADUCAH, KENTUCKY, FOR
THE TRANSPORTATION FOR HIRE OF PASSENGERS AS A COMMON CARRIER; FIXING
THE TERMS AND CONDITIONS OF SUCH GRANT, AND DECLARING AN EMERGENCY
TO EXIST", WHICH WAS ADOPTED BY THE BOARD OF COMMISSIONERS OF THE
CITY OF PADUCAH, KENTUCKY, ON JANUARY 30, 1973
BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY:
SECTION 1. That Section 13 of an ordinance containing the title
quoted above, which was adopted by the Board of Commissioners on
January 30, 1973, be amended and reordained so that same as amended
and reordained shall read as follows:
"SECTION 13. Performance The Grantee shall immediately, prior to
the commencement of any operations hereunder, deposit and maintain
throughout the term of the operation hereunder with the City, performance
bonds in the sum of $25,000.00 running to the City, which shall be made
in the form of a $10,000.00 performance bond with corporate surety, and
a $15,000.00 performance bond evidenced by the personal bond of Claude
Kelley III, and Curtis Kelley, and their respective spouses, said bonds
shall be conditioned as follows:
1. That the Grantee shall fulfill the obligations of this
ordinance during its entire life.
2. That the Grantee will pay to the City all sums due the City
for any license, tax or other liability including all fines
and forfeitures assessed against such Grantee by the final
judgment of any court from which or after which judgment no
appeal lies, and also to indemnify, defend and save harmless
the City against any loss or damage for accidents arising
out of negligence in the operation of any vehicles of
the holder of this franchise.
3. That said bond shall not be void upon Hirst recovery but
recoveries may be had thereon until the full penal sum
thereof is exhausted.
Provided, it is further agreed and understood that the outstanding
1
liability on the personal performance bond shall be reduced in an j
amount equal to 1/48th for each completed month during the contract
period, and it is further agreed and understood that the requirement
for corporate surety may annually be reduced by the sum of $2,500.00
upon the anniversary date of the contract. It is further understood
and agreed that the Grantee shall not be held liable for failure to
perform under this contract in the event that fuel shall be rationed
or otherwise be made unavailable to the Grantee by public authorities,
making it impossible to operate its buses as agreed.
Provided, however, that should the Grantee, at any period during
the term of this agreement, fail to execute and have in effect the
aforesaid corporate surety bond or equivalent deposit in cash or
United States Government Bonds as herein provided, or fail to make good
any impairment of such bond, cash or United States Government Bonds,
then, and in that event, after sixty days written notice to the Grantee,
unless said default or impairment is made good within said sixty days,
the Board may at its option declare this ordinance void and inoperative.
Delivery to the City of a new approved corporate surety bond, bonds,
cash or United States Government Bonds, shall, upon the Board's approval,
release all prior bonds except as to liabilities then outstanding against
said prior bonds or any of them or as prior liabilities if the new bond
is made applicable thereto."
SECTION 2. This ordinance shall be in full force and effect from
and after its adoption, and should any sentence, clause or portion of
this ordinance be declared invalid, such invalidity shall in no way affect
the remainder of the ordinance.
// //i /l -T�—
mayor
Passed by the Board of Commissioners, March 6, 1973
Recorded by Sarah Thurman, City Clerk, March 6, 1973.