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HomeMy WebLinkAbout0224NORDINANCE NO. 224 (New Series) AN ORDINANCE GRANTING TO JOHN G. JONES A FRAN- CHISE TO ESTABLISH, AND, FOR A PERIOD COMMENCING WITH THE EFFECTIVE DATE OF THIS ORDINANCE AND CON- TINUING FOR A PERIOD OF TWENTY YEARS. THEREAFTER, TO CONDUCT, MAINTAIN.AND OPERATE, ON REGULAR SCHE- DULES, INTRA- MUNICIPAL MOTOR BUS LINES FOR THE TRANSPORTATION OF PASSENGERS AND THEIR HAND BAG - GAGE, FOR HIRE, WHOLLY WITHIN THE CITY OF SAN LUIS OBISPO, OVER, UPON AND ALONG THE STREETS, HIGHWAYS, ALLEYS, BOULEVARDS, AVENUES, ROADS AND OTHER PUB - LIC PLACES HEREINAFTE.R PRESCRIBED: FIXING THE COM- PENSATION TO BE PAID TO THE CITY OF SAN LUIS OBISPO AND SPECIFYING THE TERMS AND CONDITIONS OF SAID \FRANCHISE. BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. DEFINITIONS. Whenever the following terms are used herein, they are intended to mean as follows: CITY: The City of San Luis Obispo, a municipal corporation, organized and existing under and by virtue of Section 8, .Article XI, of the California Constitution: CITY CLERK: The duly qualified and acting City Clerk of the City of San Luis Obispo, or such person as may hereafter, by law, be authorized to perform the duties now being performed by that official: CITY COUNCIL: The City Council of the City of San Luis Obispo, as it is now, or may hereafter be, constituted, or its successor as the legislative body of such city: CITY ENGINEER: The'duly qualified and acting City Engineer of the City of San Luis Obispo, or such person as hereafter may, by law, be authorized to have charge of the city streets and sidewalks for said city: CITY ATTORNEY: The duly qualified and acting City Attorney, or such other official as may be hereafter, by law, designated as the official legal advisor of the City of San Luis Obispo: GRANTOR: The City of San Luis Obispo, a municipal corporation, organized and existing under and by virtue of Section 8, Article XI, of the California Constitution: - 1 - _- _-5" ) / GRANTEE: John G. Jones and his successors and assigns, in the event this franchise shall be assigned as in this ordinance provided: PERSON: Any person, firm, corporation, copartnership, joint stock or other business association, and including the plural thereof, when the singular is used, and the singular thereof when the plural is used: STREETS: All streets, lanes, alleys, courts, ways and other public places as they now exist or may hereafter be established within the City of San Luis Obispo. SECTION 2. NATURE OF FRANCHISE GRANTED: There is hereby granted to John G. Jones (hereinafter referred to as the "grantee ") a franchise to establish, and for a period commencing with the effective date of this ordinance and continuing for a period of twenty (20) years thereafter, to conduct, maintain and operate, on regular schedules, intra- municipal motor bus lines for the transportation of passengers and their hand baggage, for hire, wholly within the City of San Luis Obispo, over, upon and along all of the streets, highways, alleys, boulevards, avenues, roads and other public places, and portions there- of, within said city, over, along and upon which such lines may be hereafter, during the term of this franchise, be established and operat- ed by grantee with the consent, or at the direction of the City Council of the City of San Luis Obispo; subject, however, to all of the coven- ants, conditions, restrictions and limitations elsewhere contained in this franchise. SECTION 3. ROUTES: Prior to the commencement of operations under this franchise the grantee shall file with the City Council a schedule of the particular route or routes over and along which such bus lines are to be operated, which schedule shall be approved by the City Council prior to the commencement of operations. SECTION 4. COMPENSATION TO CITY: The permission and author- ity herein granted is upon the express condition that the grantee, as consideration therefor, shall pay to the City of San Luis Obispo Two (2) per cent of the gross annual receipts arising from the use, opera- - 2 - A4 4 C tion or possession of such franchise, including- receipts from advertis ing, provided that no.percentage shall be paid for the first five (5) yea -r -s- succeed-ing the date of the franchise but that thereafter such per- tentage shall be paid.annually, and in event said payment is not made said franchise shall be forfeited. The gross annual receipts shall not include the following: (a) Those receipts derived from the operation of its motor busses under, in conformity with, or as contemplated by its license, if any, from the City of San Luis Obispo for the operation of autos for hire; -(b) Rentals on equipment leased to other companies -; (c) Such miscellaneous receipts, if any, as may be received from sources which clearly do not result from operations under this franchise, but in case of doubt or uncertainty, such receipts shall be presumed to have been received by reason of its operations hereunder. The grantee shall file with the City Clerk within three (3) months after the expiration of the calendar year, or fractional calen- dar year, following the effective date of this franchise, and within three ) months after the expiration xpiration of each and every calendar year - thereafter a statement or report, duly verified, showing in detail the total gross receipts of such grantee arising from the use, operation or possession of this franchise, the calendar year immediately preced- ing such statement or report,; odor- - -- -such fractional calendar year. -vStm ggrantee `shall pay to said city at the time of- filing such statement, in lawful money of the United States, the aforesaid percentage of gross receipts for such calendar p years or-such--fractional- -calendar= year,• cover- ed by such statement. Any neglect, omission or refusal by said grantee to file such verified statement, or to pay said percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and of all rights of grantee hereunder. For the purpose of verifying such statement, the City of San Luis Obispo shall have the privilege of inspecting the books and records of the grantee at any and all reasonable times during office hours. - 3 - 7 � i A4 4 C tion or possession of such franchise, including- receipts from advertis ing, provided that no.percentage shall be paid for the first five (5) yea -r -s- succeed-ing the date of the franchise but that thereafter such per- tentage shall be paid.annually, and in event said payment is not made said franchise shall be forfeited. The gross annual receipts shall not include the following: (a) Those receipts derived from the operation of its motor busses under, in conformity with, or as contemplated by its license, if any, from the City of San Luis Obispo for the operation of autos for hire; -(b) Rentals on equipment leased to other companies -; (c) Such miscellaneous receipts, if any, as may be received from sources which clearly do not result from operations under this franchise, but in case of doubt or uncertainty, such receipts shall be presumed to have been received by reason of its operations hereunder. The grantee shall file with the City Clerk within three (3) months after the expiration of the calendar year, or fractional calen- dar year, following the effective date of this franchise, and within three ) months after the expiration xpiration of each and every calendar year - thereafter a statement or report, duly verified, showing in detail the total gross receipts of such grantee arising from the use, operation or possession of this franchise, the calendar year immediately preced- ing such statement or report,; odor- - -- -such fractional calendar year. -vStm ggrantee `shall pay to said city at the time of- filing such statement, in lawful money of the United States, the aforesaid percentage of gross receipts for such calendar p years or-such--fractional- -calendar= year,• cover- ed by such statement. Any neglect, omission or refusal by said grantee to file such verified statement, or to pay said percentage at the time and in the manner specified, shall be grounds for the declaration of a forfeiture of this franchise and of all rights of grantee hereunder. For the purpose of verifying such statement, the City of San Luis Obispo shall have the privilege of inspecting the books and records of the grantee at any and all reasonable times during office hours. - 3 - SECTION 5. COMENCEMENT OF OPERATIONS. The complete opera- tion of all lines in full accordance with this franchise shall commence on the day upon which this ordinance becomes effective. SECTION 6. EQUIPMENT: All motor busses placed or maintained in service under this franchise shall be neat and attractive in design and passenger accommodation, modern and up to date in all respects, in eluding motive power, of safe construction and reasonably suited to operations contemplated by this franchise. All busses introduced into the service, shall be new and unused and no used or second hand busses shall be brought into service, without special permission of the City Council of the City of San Luis Obispo. All equipment shall be subject to constant inspection by the City Engineer, and shall be kept in the highest practicable working order by grantee at all times. All equipment that shall become unsafe, unserviceable, or inadequate, shall be retired from regular service upon the order of the City Council determining such unsafe condition or such inadequacy or unserviceability. The amount of equipment and number of busses, giving due con- sideration to their individual seating capacity, shall at all times be reasonably sufficient to provide for all traffic offered and to main- tain the prescribed schedules and to keep the service at the highest practicable standard of efficiency. Additional new busses shall be added, from time to time, as may be reasonably necessary at the dis- cretion, and upon order of the City Council. SECTION 7. TEPHINATION OF FRANCHISE- PURCHASE BY CITY: The City of San Luis Obispo shall have the right, at its election at the expiration of the aforesaid period of twenty (20) years or at anytime prior thereto, to purchase in its entirety the property and grant of the grantee, or-his successors in interest, used or useful in the operations under this franchise, at a fair valuation. The valuation of the property covered by the aforesaid option or right to purchase shall be determined by a board of three (3) arbitrators, of whom one shall be appointed by the city, one by the grantee or his successors - 4 - in interest, and.the third by the two arbitrators so appointed. Said arbitrators shall be appointed within thirty (30) days after the decla- ration by the city of its option to purchase said property. In case said arbitrators fail to make and file an award within the time here - inbefore limited, a new board of three (3) arbitrators shall be appoint- ed in the same manner as hereinbefore prescribed, to determine the valuation of said property. The board of arbitrators shall immediately upon the appointment of its members enter upon the discharge of its duties. Any vacancy in the board of arbitrators shall be filled by the party who made the original appointment to the vacant place. The award of the arbitrators must be made out and filed with the City Clerk of said city within three (3) months after the appointment, and a majority of the arbitrators who agree thereto may make such award. The amount of the valuation of said property determined by the arbitrators as here - inbefore provided, shall be paid by the city to the grantee, his suc- cessors or assigns, in lawful money of the United States. Upon the making of said payment the title and right of possession of all of said property shall pass to the city and shall become the property of the city by virtue of the grant in payment thereunder, and without the ex- ecution of any instrument or conveyance. The option to make such pur- chase shall be declared by resolution of the City Council of said city. The value of this franchise (exclusive of the amount originally paid to the city therefor) shall not be considered or taken into account in fixing the aforesaid valuation. SECTION 8. The drivers of all motor busses, while operating the same as carriers of passengers, shall wear a, distinctive badge or emblem indicating the fact that they are such drivers. SECTION 9. TRANSFERS. The grantee hereof by the acceptance - of this franchise, shall be deemed to have made a valid, binding, con- tinuing and irrevocable offer to, and a condition is hereby imposed upon said grantee to, issue and to receive from -every connecting passenger transportation line for hire within the City of San Luis Obispo here- after put into operation, transfers good for passage within the city - 5 - limits of the City of San Luis Obispo in the same general direction over the lines of said grantee, and such connecting transportation lines, upon the order of and under such terms and conditions as the City Council of the City of San Luis Obispo may hereafter, from time to time, by resolution, establish or impose. SECTION 10. FARES - SCHOOL TICKETS AND PASSES. The fare, ex- elusive of school tickets, one way, over any of the routes and any and all extensions, reroutings or additions thereto, within the limits of the City of San Luis Obispo shall be seven cents; such fare, round trip, over any of such routes shall be fourteen cents. Children under five (5) years of age, while not occupying seats, shall be transported free of charge. Pupils, regardless of age who attend the day.sessions of any Senior High School or Junior College in the City of San Luis Obispo, and pupils under twenty -one years of ago who attend other pub- lic schools or. parochial schools in the City of San Luis Obispo shall be required to pay a fare of five cents, one way. In order to take advantage of such reduced rates, such pupils shall be required to pur- chase tickets in quantities of at least One ($1.00) Dollar's worth at one time. Such tickets shall be good only in actual passage to and from school, and grantee may establish regulations from time to time in order to effectively carry out this provision, subject, however, to the approval of the City Council. However, grantee shall be required to sell such tickets only to pupils by this Section 10 authorized to secure the benefit of such reduced fares, and in no event shall any such pupil be authorized to purchase such tickets except upon presenta- tion of a certificate from a principal or teacher of one of such schools certifying that such pupil is in attendance thereat. Grantee shall issue no passes nor sell any tickets at reduced fares other than as herein specifically provided; nor shall grantee transport.any person, other than its officers, or employees, without payment of the prescribed fare or without presentation of a valid pass issued by the grantee upon re- quest of the City Council. Grantee, by the acceptance of this franchise, agrees that it will issue passes-to Policemen and Firemen employed by -b- '' the City of San Luis Obispo who shall have need for such transportation in connection with their official duties, and will likewise issue passes to employees of the United States Post Office Department engaged in the delivery of United States mail, which passes shall be issued upon con- dition that they shall be used only when such employees are actually on official duty. SECTION 11. GRANTEE NOT TO SEEK FARE INCREASE. Grantee shall not make or file, nor permit to be made or filed in its behalf, any application to the Railroad Commission of the State of California, nor to any other regulatory body of like jurisdiction, nor to any court of this State nor of the United States of America, whereby permission or authority shall be requested to increase the fares herein in Section 10 of this ordinance provided, unless written permission of the grantor shall be evidenced by resolution of the City Council duly adopted; nor shall grantee do any act designed to divest grantor of any or all of the regulatory authority reserved to it by this franchise, or which it now or may hereafter have in law. In the event grantee shall seek such fare increase in violation or contravention of this section, then, and in that event, this franchise may, at the election of the City Council, evidenced by resolution thereof, declare a breach of the franchise, and upon such a declaration, said franchise and the rights and privileges enjoyed thereunder shall immediately and ipso facto terminate, and the performance bond as hereinafter provided for in Section 28 shall there- upon be forfeited to said grantor, and all rights and privileges of the grantor pursuant to the provisions of this franchise shall there- upon be at an end and said grantee shall thereupon and immediately sur- render all rights and privileges in and to said franchise without bene- fit of the sixty (60) day period to cure such breach as provided in Section 20 hereof. SECTION 12. SCHEDULES. From and after the commencement of operations under this franchise, the grantee hereof shall operate motor busses every day, over the whole length of each of its routes, except as may be herein otherwise specifically provided, at sufficiently fre- quent intervals and at such hours as may be necessary to reasonably - 7 - accommodate the traffic offered, in accordance with regulations of grantee made from time to time and filed in the office of the City Council and which regulations shall be subject to the approval of said City Council by order thereof; provided, however, that such schedules shall not be operated if said grantee be prevented from complying there- vrith by causes beyond the control of said grantee; and provided further, that such schedules may be altered, waived, or changed by said grantee by and with the consent, or at the direction of the City Council. All schedules shall be in writing, or printed, and filed in the office of said City Council. AlLschedules shall be made known to the public, in accordance with the reasonable orders of the City Council issued from time to time. SECTION 13. ROUTE AND OPERATION DESIGNATIONS. There shall be displayed on the front of every motor bus operated for the carriage of passengers under this franchise, signs indicating the route, or line, over which such motor bus is being operated. SECTION 14. USE OF TOBACCO. Operators of motor busses here- under shall not use tobacco in any form while operating a bus for the carrying of passengers. SECTION 15. INTOXICANTS. No person shall be permitted to operate a motor bus while under the influence of intoxicating liquor. SECTION 16. OPERATORS. No person shall be permitted to operate a motor bus for the carriage of passengers who is under the age of twenty -one (21) years. Operators shall under no circumstances carry on unnecessary conversations with passengers. SECTION 17. TEMPORARY ROUTES. In the event that any street, may be closed, or may, for any other reason, be impassable, motor busses may make detours around the portions so closed or impassable, using the nearest possible parallel streets or avenues therefor. SECTION 18. REGULATORY ORDINANCES. All motor busses operat- ing under the terms of this franchise shall at all times be operated in accordance with the traffic laws of the State of California, and in accordance with the traffic ordinances of the City of San Luis Obispo - 8 - L i. in force at the time of the operation thereof; and in accordance with the Ordinances of the City.of San Luis Obispo regulating the operation of jitney or motor busses applicable to the operation under this fran- chise. SECTION 19. INSURANCE. The grantee, before the operation of any motor bus under this franchise, shall acquire, and thereafter at all times shall keep in full force and effect, public liability and property damage indemnity of insurance covering personal injury or death to any one person in any one accident up to and including Five Thousand Dollars ($5,000.00), and property damage to any one per- son in any one accident up.to and including One Thousand Dollars ($e1,000.00); and covering all personal injury and death, regardless of the number of persons, up to and including Twenty -five Thousand Dollars ($25,000.00) for any one accident, and property damage, regard- less of the number of persons, up to and including Five Thousand. Dollars ($5,000.00) for any one accident. All policies shall be first approved by the City Attorney of the City of San Luis Obispo, as to form, and by the City Council of said city as to sufficiency, and thereafter shall be filed with the City Clerk. SECTION 20. FRANCHISE TO BE STRICTLY CONSTRUED AGAINST GRANTEE. This franchise is granted upon each and every covenant, con- dition, restriction and limitation herein contained and shall ever be strictly construed against the grantee. Nothing shall pass thereby unless it be granted in plain and unambiguous terms. Upon failure to correct any infraction of the terms and conditions of the franchise, or refusal to comply with any of the conditions thereof, after sixty (60) days' written notice by the legislative body of said grantor, said legislative body may thereupon declare a breach of the franchise, and upon such declaration, said franchise and the rights and privileges en- joyed thereunder shall immediately and ipso facto terminate and the per- formance bond as hereinafter provided for in Section 28 shall thereupon be forfeited to said grantor. SECTION 21. ASSIGMATENTS. The franchise granted hereby shall not be leased, assigned or otherwise alienate without the express con- - 9 - sent of the city, and no dealings with a lessee or assignee or grantee on the part of the city to require the performance of any act or pay- ment of any compensation by such lessee or assignee shall be deemed to operate as such consent; provided that nothing herein contained shall be construed to prevent the grantee of said franchise from including the franchise in a mortgage or deed of trust affected for the purpose of obtaining money to continue the operation of his business. SECTION 22. RESERVATION OF RIGHTS. In addition to all of the powers herein granted or reserved unto the city, the city shall have the following rights: (a) To repeal this franchise, by ordinance, at any time for misuse or nonuse, or for failure to comply with the terms prescribed; (b) To temporarily close any or all of the streets or other public places embraced within this franchise for paving or repairing, or laying sewer pipe, gas pipe, or water pipe therein, or for other purposes; (c) To require proper and adequate additions or modifications of equipment, schedules and service and to require proper and adequate extensions, reroutings of existing routes, and establishment of new routes, and to require maintenance of grantee's plant and equipment at the highest practicable standard of efficiency, all in accordance with the orders of the City Council; (d) To establish reasonable standards of service and to prevent unjust discrimination in service or rates; (e) To impose such other regulations as may be conducive to the safety, welfare and accommodation of the public. No reservation herein contained shall ever be construed as limiting, because not herein specified, any right which the City of San Luis Obispo would have in law to regulate or curtail the operations of grantee if this franchise had not been granted. SECTION 23. GRAF'T'ED SUBJECT TO CHARTER. This franchise is granted subject to all the rights, powers and privileges reserved to the City of San Luis Obispo, or to the City Council of said city, by - 10 - the Charter of the City of San Luis Obispo, whether the reservation of any such right, power or privilege be expressed in this ordinance or not. SECTION 24. INFOR19ATIVE DATA AND REPORTS. For the purpose of effectively carrying out and performing the supervisory powers and duties of the city and its officers under this franchise, grantor may require the grantee to supply free of cost to the grantor copies of such tariffs, schedules, maps, rules and regulations, statistical and financial data or reports affecting grantee's operations within the city, as grantor may from time to time request, including the right and-privilege at all reasonable times to examine the books, records and accounts of grantee relating to his operations within the city. SECTION 25. FRANCHISE NOT EXCLUSIVE. This franchise shall not be understood or construed to be exclusive in the rights and privileges granted herein. SECTION 26. ACCEPTANCE OF FRANCHISE. The filing by the grantee of the performance bond herein provided for shall be deemed to be the acceptance of this franchise by said grantee, and by such accept- ance said grantee shall become obligated to render service contemplated a by the provisions of this franchise-for the term thereof but subject, nevertheless, to all the covenants,.conditions, restrictions and limi- tations elsewhere contained herein. SECTION 27. GRANTEE TO HOLD CITY HARMLESS. The grantee of this franchise shall indemnify, and save free and harmless, the City of San Luis Obispo against and from all damages, judgments, decrees, costs and expenditures which said city may suffer, or which may be re- covered from, or obtained against, the grantor during the term hereof, for or by reason of acts done by grantee during said term, or growing out of, or resulting from, the exercise by said grantee of any, or all, of the rights and privileges granted by this franchise, or any act, or acts, of the servants or agents thereof, under or by virtue of the pro- visions of this franchise. ✓ SECTION 28. BOND. The grantee hereof within five (5) days after this franchise is awarded, and as a condition precedent to the exercise of any of the rights herein granted shall make, execute and deliver unto the grantor, and shall, at all times during the life of this franchise, maintain in full force and effect, a good and suffic- ient bond, in the principal sum of Five Hundred and No /100 Dollars, ($500.00). Said bond shall be approved by the City Council and be filed with the City Clerk. Such bond shall be conditioned that the grantee shall well and truly observe, fulfill and perform each and every term and condition of this franchise, and that in case of any breach of condition of such bond, the whole amount of the penal sum therein named shall be taken and deemed to be liquidated damages and shall be recoverable from the principal and sureties upon said bond. SECTION 29. The grantee of this franchise shall be required to provide and maintain all signs necessary at all bus stops and to paint all curbs and lines indicating such bus stops. All such bus stops shall be designated by the City Council. The City of San Luis Obispo shall not be required to expend any money nor be put -to any. expense whatever in connection with the operation of bus lines under this franchise. SECTION 30. EFFECTIVE DATE. This ordinance shall become effective thirty (30) days after its final passage, unless suspended by a referendum petition filed as provided by law. SECTION 31. PUBLICATION. This ordinance, together with the ayes and noes shall be published for two days before its final passage in the Telegram- Tribune, a daily newspaper printed, published and circulated in said city. IIJTRODUCED.•AND PASSED TO PRINT this 14th day of April, 1941, by the following vote: AYES: W.H.Brazil,R.P.Hoviell,Ralph C.Kennedy,F.C.Kimball,Joeeph Leary NOES: None ABSENT: None Mayor ATTEST: Ci y ler - 12 - Finally passed this day of 1941 by the folloy,ring vote: Ayes: 7y Noes: Absent: AL City Clerk T -1ayor