Loading...
HomeMy WebLinkAboutOrdinance Book 18, Page 27, Ordinance Number 73-1-74927 . V ORDINANCE NO. 73-1-749 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 1 WHEREAS, the City of Paducah, Kentucky, is now without a local III motor bus transportation service, and WHEREAS, the Board of Commissioners of the C ity of Paducah, Kentucky, has devoted considerable time and efforts toward the acquiring and establishment of a motor bus system which will best serve the needs of all the citizens of the City of Paducah, Kentucky, and WHEREAS, the City of Paducah has heretofore advertised and otherwise made known to persons and firms who provide such services, that the City of Paducah, Kentucky, was interested in having an efficient bus system established, and WHEREAS, the necessity and demand for such motor bus transportation service has created an emergency situation and crisis in some sections of the community, making time of the essence, and WHEREAS, the Board of Commissioners of the City of Paducah, Kentucky is of the opinion that the proposal of the Kelley Transportation Company, Inc., of Cape Girardeau, Missouri, is the best system now available to the City, and 1 WHEREAS, the Board of Commissioners of the City of Paducah is of jJ the opinion that said Kelley Transportation Company, Inc., is a duly qualified company and the Board desires to grant such authorization to it. I NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. Definitions Wherever the word "Grantee" shall appear it shall mean Kelley Transportation Company, Inc. The term "City" shall mean the City of Paducah, Kentucky. The term "Board" shall mean the present governing body of the City of Paducah, Kentucky, including the Mayor and Commissioners, and their successors. r The term "Streets" shall mean any street, avenue, alley, bridge, or other public places in the City however they may be designated. 2e SECTION 2. Nature of Authorization The authority, right and privi- lege is hereby granted to the Grantee for a period of four years from and after March 1, 1973, to establish, maintain and operate a motor bus service for the transportation for hire of passengers only, by trackless vehicles, over and upon the streets of the City; all in accordance with general traffic rules and regulations of the City, and the Commonwealth of Kentucky, and in accordance with the terms, conditions and provisions of this ordinance. SECTION 3. Routes A. Operation of motor bus transportation service shall be established, operated and regularly maintained over regular routes, with a minimum number of six routes to be established and determined by the Grantee in cooperation with the Board, subject to the approval by the Board. B. said routes and number of routes may be changed from time to time as experience requires and as recommended by the Grantee, subject to the approval by the Board, bur such approval shall not be unreasonably withheld. In the event the physical condition of a street on an established route is temporarily obstructed, the nearest available and conveniently operative temporary alternate route shall be used until such interference or obstruction shall be terminated. C. Trial service for a period of sixty (60) days may be required by the Board if there appears to be reasonable expectations of the services being operated profitably. However, when such trial service is ordered, it may be discontinued at the optopn of the Grantee at the end of the sixty day period if such trial service is being operated at a loss, or if both the Grantee and the Board agree the new routing is a failure, except that after one year's operation the service shall become a part of the overall system unless prior to that time the Grantee asks for and is granted an extension of the trial period by the Board. SECTION 4. Time and Schedules. For the first six (6) months of service commencing from and after March 1, 1973, the Grantee shall operate buses over those routes which constitute the operating system within the City of Paducah continuously between the approximate hours of 7:45 a.m., and 5:15 p.m., on weekdays and Saturdays, exclusing Sundays and holidays, which holidays so excluded are New Year's Day, Memorial Day, July 4, Labor Day, Thanksgiving Day and Christmas, and shall operate on schedules and at such additional hours and days as may be determined by the Grantee, 29 and approved by the Board, and as may be changed from time to time as i experience requires, and said approval by the Board shall not be unreasonably withheld. I The Grantee shall operate its buses over the aforementioned routes at headways not to exceed sixty (60) minutes, except for the routes of Guthrie and Noble Park which shall not exceed thirty (30) minutes, and if the time between vehicles is to be greater than specified, approval by the Board of the proposed change in headway shall be secured, but such approval shall not be unreasonable withheld. I I SECTION 5. Fares Fares covering one continuous ride within the city limits and on one route shall be thirty-five cents with a five cent transfer charge. The fares as herein established are to be per person, and such fares are subject to change for increases or decreases or exemptions for children with adult paying passengers as experience from time to time may dictate, and any fare change shall be upon recommendation by the Grantee and approval by the Board, and fare changes shall not be unreasonably withheld by the Board. SECTION 6. Equipment The Grantee shall operate at least four (4), air conditioned buses over the aforementioned routes. At least two (2) spare vehicles shall be made available by the Grantee. The Grantee shall + maintain all vehicles in good operating condition and clean. Deviation I from this equipment schedule shall require approval of the Board but such approval shall not be unreasonably withheld. SECTION 7. Bus Stops The Grantee may designate such bus stops as it may desire and shall have the right to equip same with markers. At all designated stops the City shall set aside an adequate space in which other vehicles shall not be permitted to park or in any manner interefer with the I bus operation to the end that the safety, convenience and welfare of the i patrons and public may be provided for and safeguarded. SECTION 8. .Insurance The Grantee shall obtain and file with the Department of Motor Transportation and continue the same in full force and effect during the period of this grant, a good and sufficient policy or I policies of liability insurance or a bond or bonds of.indemnity, as the Grantee may elect, and subject to the provisions of the Kentucky Revised I Statutes, conditioned for the benefit of persons suffering injury, loss or damage to persons or property, by reason of the negligent operation by the Grantee, which policy or policies, or bond or bonds, shall be in 30 companies or with sureties to be approved by the Department of Motor Transportation, and shall be carried upon each motor bus operated in a sum not less than that provided by the said statutes. SECTION 9. Taxes The Grantee shall pay to the City the sum of One Dollar per year in lieu of all occupational license taxes and wheel taxes during the term of this authorization or as the authorization may be continued hereafter: All property taxes and franchise taxes imposed by statutes shall be paid by the Grantee. SECTION 10. Indemnity The Grantee, by acceptance of this ordinance and the commencement of operation hereunder, covenants and agrees to indemnify and save the city harmless from any and all manner of suits, claims or other causes of action which arise during the period of this grant because of the operations of the Grantee, and in the event any suit should be brought against the City on account thereof, the Grantee upon notice to it by the City, shall then defend the City in any such suit at the cost of the Grantee, and in the event of a final judgment being obtained against the City, either independently or jointly with the Grantee, the Grantee shall pay such judgment and all costs and hold the City harmless therefrom, and to this effect, the City shall be named as an additional insured in all policies of insurance or bonds required by the Grantee as hereinabove set out in Section 8. To further guarantee the indemnification of the City, the Grantee shall post with the City a Certificate of Insurance naming the City as an additional insured for public liability in amounts of not less than $10,000 for property damage, $20,000 for personal injury per person, and $100,000 for personal injury per occurrence, but -in no event shall the limits of liability be less than the amount of insurance required by the Department of Motor Transportation of the State of Kentucky for the operation of a motor bus transportation system. SECTION 11, License Required for Drivers No person shall be employed by the Grantee as a driver within the City without having first obtained a bus driver's license for the current license year. Any person desiring to obtain such license shall submit to the Chief of Police a completed application on forms to be furnished by the City, containing the following information concerning the applicant: 1. Full name and home address 2. Address of all other residences during the last five (5) years. 3. Age, Color, height and color or eyes and hair. 31 4. Place of birth and marital status. 5. Length of time he has been a resident of the City. 6. Whether a citizen of the United States. 7. Places where employed and names of employers during the last five (5) years. S. Whether he has ever been convicted of a felony or misdemeanor and, if so, the nature, place and date of each conviction. 9. Whether he has been previously licensed as a bus driver or chaffeur and, if so, when and where. 10. If he has previously had a bus driver's or chauffeur's license or an ordinary state motor vehicle operator's license, whether any such license has ever been suspended or revoked and, if so, the date, place and cause of each suspension or revocation. 11. Whether he holds all state licenses required to qualify as a bus driver. 12. Whether he can read, write and speak the English language. 13. Such additional information as may be required by rules and regulations, or the Chief of Police. Each licensee shall display his license with a picture of the licen- see thereon, in a conspicuous place within the bus he is operating. The license required herein shall be renewed from year to year by the Chief of Police, either by endorsement upon the original license or by issuance of a new license. Any false statement made by the applicant in obtaining such a license shall invalidate the license. A license may be suspended for not to exceed thirty (30) days by the City Manager, or may be suspended or revoked by the Board, after ten (10) days written notice of a public hearing, for any of the following causes; 1. Use of a motor bus for any illegal purpose. 2. Failing to comply with any provision of this ordinance or with any rules and regulations issued hereunder, or of other ordinances of the city or of any state or federal law, rule or regulation. 3. Upon being arrested for driving while under the influence of intoxicating liquor, or other law authorizing the revocation of the license, and if convicted, his suspension shall be permanent, but if acquitted his license shall be immediately restored. Each such application shall be signed and sworn to by the applicant. Each applicant for such license must be of the age of 21 years or over, and must be clean in dress and person. The applicant must not have been convicted of a felony within the last five (5) years immediately preceding the date of his application, but this requirement may be waived by the Chief of Police if, in his opinion, the facts warrant such a waiver 32 The applicant must hold all state licenses required to qualify as a motor bus driver, and he must be able to read, write and speak the English language. There shall be attached to each application for a license two (2) front view photographs of the applicant taken within the last year and of the size specified on the application form, one of these photographs to be attached to the license, when issued. The fingerprints of an applicant for a license under this division shall be impressed on the application form by an officer of the Police Department. Each applicant for a license under this division shall furnish the names of two reputable residents of the City, who have known the applicant personally, as references for the applicant's character and reputation. The Chief of Police shall determine whether all requirements for such license have been complied with, and shall issue or deny all motor bus licenses and renewals thereof. The Chief of Police may issue a temporary permit authorizint the applicant to drive a motor bus for not to exceed thirty (30) days pending the completion of his investigation and examination relative to the application for such license. SECTION 12. Payment for Services The City shall pay the Grantee $1,000 per month for each month of service actually provided under the terms of this ordinance for the life of this Agreement. SECTION 13. Performance The Grantee shall immediately, prior to the commencement of any operations hereunder, deposit and maintain through- out the term of operation hereunder with the City a bond in the :sum of Twenty-five Thousand Dollars ($25,000) running to the City, with corporate surety or secured by a first mortgage on real estate in the City having a fair cash value of at least Twenry-five Thousand Dollars ($25,000), or, at its option, the sum of Twenty-five Thousand Dollars ($25,000) in cash or United States Government Bonds, 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 I any license, tax or other liability including all fines and for- I feitures assessed against such Grantee by the final judgment of f 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. I 3. That said bond shall not be void upon first recovery but , recoveries may be had thereon until the full penal sum thereof is exhausted. Provided, however, that should the Grantee fail to execute the bond 33 or deposit 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 bond, bonds, cash or United I States Government Bonds shall release all prior bonds except as to liabilities then outstanding against said prior bonds or anyof them or as to prior liabilities if the new bond is made applicable thereto. SECTION 14. Purchase of System If at any time within one (1) year before the expiration of this ordinance the City desires to purchase and take over the entire property, equipment and transportation system in existence under the terms of this franchise, it may do so at the fair market value thereof, provided that it shall give reasonable written notice of its desire so to do to the Grantee. In the event the City should exercise its option as herein provided, the fair market value shall be determined by three (3) persons, one to be 1 selected by the City, one to be selected by the holder of this francyise, and the other to be selected by these two. After the appraisers have fixed i the fair market value which the city shall be expected to pay for said pro- perty and have given notice thereof to the City and to the holder of this franchise, the City shall have six (6) months within which to pay the pur- chase price if the City desires to purchase the property at the value so fixed. In such case the City shall not be bound to purchase the property but shall have the option and right to do so. The City must, however, notify the Grantee, within sixty (60) days after the fair market value is fixed and notice thereof is given to it, whether or not it will exercise the option to purchase the property and pay for same within six (6) months. The City shall bear the cost incident to the appointment of its appraiser, the Grantee shall bear the cost incident to the appointment of its appraiser, and the City and the franchise holder shall bear equally the expense incident to the appointment of the third appraiser. This provision shall not restrict any right of purchase which the City may now or hereafter have by operation of law. SECTION 15. Accounting The accounting methods to be used by the Grantee are to be in accordance with sound accounting principles and in 1 accordance with the requirements of the Department of Motor Transportation of Kentucky or any successor regulatory agency. Subject to the foregoing, such accounting procedures shall be set up and agreed to between an accounting firm employed by the City and an accounting firm employed by the Grantee. In the case of disagreement between these two firms as to the method of accounting, a firm mutually agreeable, jointly employed by the City and the Grantee, shall act as an arbitrator, whose decisions shall be final and binding on both parties, and no change shall be made in the initially adopted accounting procedure except by the agreement of the accounting firms employed by the City and the holder of this franchise or by arbitration as above provided. Under the system of accounting in force from time to time, the holder of this ordinance will render to the City complete monthly written statements of its accounts, together with copies of any periodic reports required by and filed with the Department of Motor Transportation of Kentucky or its successor agency.' Said monthly written statements shall be supplied by the Grantee to the City in triplicate within sixty (60) calendar days of the last calendar day of the month being reported upon. The accountant or accounting firm designated by the City shall have access to all accounting books and records kept by the holder of this fran- chise in any way relating to its transportation business at any reasonable time during business hours, and refusal to permit such access shall bring the Grantee in default under the provisions of Section 16 of this ordinance. stockholders of the Grantee shall be entitled to receive either a salary as an officer of the Company or as a dividend as a stockholder an amount that will represent a return of five per centum (5%) per annum on their investment in the Grantee, said investment to be expressed as a market value of said stock based on the information provided on the monthly written statements of its accounts for the month of June of each year. Any amount received by a stockholder is to be included as an expense of the Grantee. SECTION 16. Penalty. In the event the Grantee breaches the terms of this ordinance, or any of them, then it is mutually agreed between the City and the Grantee that Ten Dollars ($10.00) for each offense, and each day's failure or refusal constituting a separate offense, shall be a reasonable sum for liquidated damages payable by Grantee to City. Any liquidated damages paid under this section shall be paid out of earnings 35 or surplus funds and shall not be considered an operating expense SECTION 17. Continuation of Authorization Notwithstanding the foregoing provision for a four year duration of this authorization, the authorization and permit shall continue thereafter from year to year unless terminated for cause, or unless either party shall give written notice to the other party prior to six (6) months before the anniversary of the effective date of an intent to terminate and discontinue. By acceptance of this authorization the Grantee agrees to continue the operation of a motor bus transportation system in the City of Paducah for the duration of the authorization and from year to year thereafter as may be extended, and shall not voluntarily terminate operations at the end of any such period without first giving six (6) months written notice of such intent. SECTION 18. Severability Clause If any section, paragraph or provision of this ordinance shall be found to be inoperating, ineffective or invalid for any cause, the deficiency or invalidity of such section. paragraph or provision shall not affect any other section, paragraph or provision hereof, it being the purpose and intent of this ordinance to make each and every section, paragraph and provision hereof separable from all other sections, paragraphs and provisions. SECTION 19. An emergency is declared to exist and this ordinance shall therefore be introduced and remain on file for one week for public inspection in the completed form in which it shall be put upon its final passage, and if adopted shall be in full force and effect immediately thereafter. mayor Introduced by the Board of Commissioners January 23, 1973 Passed by the Board of Commissioners January 30, 1973 Recorded by Sarah Thurman, city Clerk, January 30, 1973.