Res 346 1/26/1959C.C.M.DONALD GEO-W.ANDERSON LYLE B.CHERRY
MCDONALD, ANDERSON & CHERRY
ATTORNEYS AND COUNSELORS
SUITE 711 OIL AND GAS BUILDING
WICHITA FALLS,TEXAS
February 10, 1959
he : Resolution No . 346 , Operating
Permit , Wichita City Lines , Inc.
Mr. George T . Henderson
City Clerk
City of Wichita Falls , Texas
Dear Mr. Henderson :
I hand you resolution No . 346 granting an operating permit
to Wichita City Lines , Inc. , properly executed by the Mayor
on January 26, 1959 , attested by you as City Clerk and ac-
cepted on the 4th day of February , 1959, by Wichita City
Lines , Inc. , by K . E. Totten, Vice-k- resident .
Yours very truly,
Geo . W . Anderson
G'WA : ns
RESOLUTION 3- -7-
GRANTING AN OPERATING PERMIT TO WICHITA CITY LINES,
INC. , A CORPORATION, ITS SUCCESSORS AND ASSIGNS, THE RIGHT
TO CONTINUE TO MAINTAIN AND OPERATE A SYSTEM OF MOTOR BUS
SERVICE FOR THE TRANSPORTATION OF PASSENGERS FOR HIRE AND
FIXING THE TERMS AND CONDITIONS OF SAME.
PREAMBLE
WHEREAS, the Wichita City Lines , Inc. (hereinafter
called Company) has operated a motor bus system for the
transportation of passengers for hire within and between
the City of Wichita Falls , Texas, and its suburbs, and
continues to operate said system under authority granted
to it by this Council by a franchise ordinance duly adopted
on November 6th, 1950, amendments thereto, and extensions
thereof; and,
WHEREAS, said Company has faithfully performed all
its duties and obligations under said franchise and the
City desires to retain for its people the continued opera-
tion of local transit service; and ,
WHEREAS, the Company and the City have agreed upon
the terms of an Operating Permit , temporary in its nature
under Section 125 of the Charter of the City :
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS :
SECTION 1
Definitions
As used in this Operating Permit the following words
and phrases shall have the meaning ascribed to them in this
section unless the context in which used clearly indicates
otherwise:
a) "City" shall mean the City of Wichita Falls,
a municipal corporation of the State of Texas ; the words
in the city" or any similar reference to the territorial
limits of the City of Wichita Falls shall mean the area with-
in the corporate limits of the City of Wichita Falls as they
now exist or as they may hereafter be lawfully modified.
b) "Company" shall mean the Wichita City Lines ,
Inc. , a Texas corporation, its successors and assigns.
c) "Motor bus" shall mean a vehicle designed and
used for the transportation of persons, propelled by power
generated within itself by gasoline, fuel oil , electricity
or similiar means.
d) "Streets" shall mean and include all the pub-
lic highways , streets alleys , bridges, public travel areas
and other public ways in the City of Wichita Falls, Texas
and adjacent territory however they may be designated.
e) "Route" shall mean a route over which buses
of the Company are regularly operated between a terminal
downtowninthedown or central business dis-
trict
Dint located
trict of the City and a terminal point located at or near the
perimeter of the City and shall include initial routes
and new routes or additional routes both in their original
form and as modified or extended pursuant to the terms
hereof.
f) "Initial routes" shall mean the routes over
which service of the Company is being operated at the
effective date hereof.
g) "Gross operatingting revenue" shall mean all the
revenue received by Wichita City Lines , Inc. , for the
2 -
transportation by motor bus of passengers for hire, includ-
ing charter fees .
h) "Gross operating expense" shall mean all the
costs and expenses incurred by Wichita City Lines , Inc.
in the operation and maintenance of its motor bus system
for the transportation of passengers , including the oper-
ation and maintenance of charter service. Said costs and
expenses shall include but not be limited to items such as
the costs of operation, maintenance, depreciation, financ-
ing, insurance, administration, management , engineering,
contributions, wages, and salaries of personnel and any and
all taxes , licenses , permits, registration or other fees
and any and all expense incident thereto.
i) "Operating ratio" shall mean the ratio of the
gross operating expense for a stated period to the gross
operating revenue for the same period calculated by divid-
ing the gross operating expense by the gross operating
revenue.
SECTION 2.
Nature of Permit
The authority, right and privilege, is hereby
granted to the company for and in consideration of, and
subject to the conditions and provisions of this Operating
Permit hereinafter set forth for a period of one year and
from year to year thereafter unless sooner terminated ac-
cording to the terms hereof, beginning with the passage of
a resolution granting this Operating Permit signed by the
Mayor of the city, and attested by its Secretary, to continue
to maintain and operate over and upon the streets of the city,
a motor bus system for the transportation of passengers for
hire.
3 -
v .
SECTION 3.
Competition
So far as within its power lies, the City shall
protect the Company from competition by street railway
lines , motor bus lines , jitney bus operations or taxicabs
doing other than a strictly taxicab business which would
tend to interfere with the profitable and economical op-
erations as a whole of the motor bus system of the Company.
SECTION 4.
Routes
Regular motor bus transportation service shall be
operated and maintained by the Company over and upon the
initial routes or as said routes may be changed as herein-
after provided . In the event of interference with or ob-
struction to the said transportation service by reason of the
physical condition of the streets , the nearest available
and conveniently operative temporary alternate route shall
be used until such interference or obstruction shall have
been removed or eliminated by the City. If the City shall
not maintain the streets used by the Company in reason-
ably suitable condition for the operation of its service,
the City shall provide an alternate route over which the
Company can operate with no substantial or material increase
in the cost of operation and with no substantial or mater-
ial reduction of revenue.
SECTION 5. -
New Routes or Extension of Routes
New or additional routes and extension of and mod-
ifications to or abandonment of all or a portion of any
4 -
route may be established or effected by the Company as the
patronage thereof may require with the approval of the City.
Upon presentation to the Company of evidence that
an area within the City has approximately the same density
of population as the area served generally by the Company,
the City may request the Company to survey such area and
to operate motor bus service into said area on an experi-
mental basis via an additional route or via an extension
to or modification of an initial or additional route as
the Company may elect , providing such experimental service
can be furnished without additional investment . If after
thirty (30) days operating experience the revenue on the
additional , extended or modified route is less than the
cost of producing the service, the Company may at once
either discontinue the experimental service or at its op-
tion revise the said route and continue its operation for
such additional experimental period as the facts and circum-
stances warrant . The continued operation of experimental
service by the Company beyond the thirty (30) days' experi-
mental period shall not be construed as a waiver by the
Company of its right to thereafter discontinue or abandon
said service.
In the event that any experimental service is oper-
ated over a route or portion thereof and subsequently discon-
tinued pursuant to the provisions of this section, the
Company shall not be requested to again operate service over
said route or portions thereof or over a similar route
in substantially the same area except after one ( 1) year
from the date of discontinuance of experimental service
and then only upon evidence of a substantial increase in
population of the area proposed to be served.
5
SECTION 6.
Service
The Company shall provide, furnish and run a
sufficient number of buses to provide reasonable , adequate
service on its routes to accommodate the traveling public;
the Company may from time to time increase the hours of
service or the frequency thereof on any route or decrease
or so alter the hours of service or the frequency thereof,
on any route when the patronage of such route indicates ,
or when necessary to yield the company a fair return as
provided herein.
SECTION 7.
Tripper Service
The Company shall furnish and provide additional
service known as "tripper service" at such times and over
such routes as it deems advisable, said additional or
tripper service and the routes to be followed to be such
as, in the opinion of the company, conditions require from
time to time. The Company shall charge the same rate or
rates of fare for such tripper service as the Company is
permitted to charge for its regular service.
SECTION 8.
Equipment and Motive Power
The Company shall use buses of improved design
and equipment and shall at all times keep them in clean
and comfortable condition. The buses shall at all times be
trackless vehicles and be propelled by power generated
by gasoline, oil , electricity, or other improved sources
6 -
of power, provided , however, that nothing herein contained
shall be construed to prevent the company from substitut-
ing some other modern trackless system of transportation
for the motor bus system herein authorized , if during the
period of this Operating Permit such proposed substitute
system shall provide a more modern system of transportation
for the City.
SECTION 9.
Bus Stop Zones
The Company may select the location of bus stop
zones subject to the approval of the City. The bus stop
zones shall be suitably marked to indicate to the travel-
ing public where the buses stop. At all designated stops
on the bus routes of the Company, the City shall set aside
and mark by appropriate "No Parking" signs or markers an
adequate space or zone for each route using said stop or
stops. The City, by appropriate police action, shall pro-
hibit the use of said bus stop zones by vehicles other
than vehicles of the Company and otherwise prevent in-
terference by other vehicles with the use of said bus stop
zones by Company vehicles to the end that safety, conven-
ience and welfare of the public may be assured . The City
shall also establish and enforce such traffic rules and
regulations as will serve to expedite the movement of the
Company' s buses.
SECTION 10.
Rates of Fare
Except as hereinafter otherwise provided , the rates
of fare for one ( 1) continuous ride on the routes of the
7 -
V
Company between any two (2) points within the City of
Wichita Falls, Texas shall be as follows :
KINDS OF FARE RATE OF FARE
A. Regular cash fare 15$
B. Student Fare - Valid only when purchased
in a single lot good for 20 rides
at the rate of 73$ per ride, at a
total cost of 1.50
School children and students
twelve ( 12) or more years of
age who are residents of the
City of Wichita Falls and who
are regularly attending pub-
lic, parochial or private grade
or high schools located within the
City of Wichita Falls will be carr-
ied to or from said schools at the
student fare, but only between the
hours of 7 :00 a.m. and 4: 30 p.m. on
days when said schools are in sess-
ion between September and June, and
only upon presentation of an identi-
fication card signed by the principal
of the school being attended or some
person holding an office comparable
thereto certifying that the school
child or student is in regular at-
tendance at the school . Under any
conditions other than those herein
specified said passengers shall pay
the regular fare.
C. Children's Fare 5$
Children between the ages of five
5) and twelve ( 12) years.
D. Child' s Fare free
All children under five years of
age when attended by a fare-paying
passenger above such age and not
occupying a seat to the exclusion
of fare-paying passengers.
E. Transfers -- A transfer will be issued to a
fare paying passenger upon payment
of 1$ and shall be valid for one
continuous ride in the same general
direction and will be honored only
on the first bus passing the trans-
fer point after the last time shown
on the transfer. A transfer will
8 -
not be accepted from anyone other
than the person to whom issued. The
Company may establish such rules and
regulations as are reasonably nec-
essary to prevent the abuse or misuse
of transfers .
F. Zone Fares -- The Company shall have the right
to continue in effect the zone fares
in existence at the effective date
hereof and to establish new zone fares
as the City may authorize from time
to time. The zone fare shall be in
addition to the basic fares herein-
above set forth and shall be appli-
cable upon entering or leaving the
fare zone.
SECTION 11 .
Adjustment of Fares
The rates of fare herein established may be chang-
ed from time to time either by changing the basic fares
or by the establishment of zone fares in addition to the
basic fares in such manner as to promote the best interests
of the public with due regard to the efficient operation
of the equipment involved, and shall be determined so as
to maintain an operating ratio of 90.
In the event the operating ratio at the close of
the most recent six month period for which operating data
is available falls below 88 or if at any time the current
operating experience of the company indicates that the
operating ratio during the ensuing 6 months will fall
below 88, the Company shall certify this fact to the City
and advise the City of the proposed decreased rates of fare
which it deems necessary to restore the operating ratio to
90. Not later than two weeks after the receipt by the
City of said certification, the proposed decreased rates
of fare shall become effective.
9 -
In the event the operating ratio for the most recent
preceding six months period for which operating data is
available exceeds 92, the company shall certify this
fact to and advise the City of the proposed increased
rates of fare which it deems necessary to restore the
operating ratio to 90, not later than two weeks after the
receipt by the City of said certification, the proposed
increase rates of fare shall become effective.
Not less than forty-eight (48) hours before any
change in the rates of fare are to become effective, the
Company shall post in each of its motor buses then in
service a notice of the increase or decrease in fares ,
stating the new rates of fare and the date upon which they
are to become effective.
Upon the increase of rates of fare, outstanding
tickets or tokens shall not be valid for transportation,
but such tickets or tokens shall be redeemed by the Company
at its office at the rate paid therefor as near as may be
without loss to the Company. Upon the decrease of rates
of fare, outstanding tickets or tokens for which a higher
rate was paid than the fare then in force may, at the op-
tion of the holder, be accepted for transportation or pre-
sented at the office of the Company for redemption, as
aforesaid.
SECTION 12.
Office and Financial Data
The Company shall keep and maintain an office
within the City continuously during the life of this
Operating Permit. Upon request by the City, the Company
shall furnish to the City detailed operating statements
10 -
and statements showing the financial condition of the
Company.
SECTION 13.
Compensation and Taxes
By the acceptance of this Operating Permit , the
Company agrees and obligates itself to pay to the City
1.00 per month as compensation to the City for the
Operating Permit and for the use of the streets over which
it travels .
The provisions of this Section shall never be
construed to affect the right of the City to levy and
collect ad valorem taxes on the property of said Company
located and situated within the limits of the City.
SECTION 14.
City Indemnified
The Company assumes, and shall at all times as-
sume, full responsibility for the operation of its said
buses upon the streets of the city of Wichita Falls , and
shall at all times hereunder defend , indemnify and hold
harmless the city and its officers from any and all loss-
es, damages, suits , claims and demands for injury to per-
sons or property to which the Company and/or the City may
be subject by any proceedings at law, in equity or other-
wise growing out of the grant of the privileges in this
Operating Permit granted, or growing out of the wrongful
exercise or enjoyment of the same by the Company.
The Company shall at its own cost defend against
such actions either in its own name or in the name of the
11 -
City. The City shall promptly, and a reasonable time be-
fore the return day thereof, deliver by registered mail to
the Company any and all summons or process at law or in equity,
received by it in actions required to be defended by the
Company under the terms hereof. In the event of the fail-
ure of the City to so deliver said summons or process ,
the Company shall not be liable under the terms of this
section.
SECTION 15.
Insurance
The Company, its successors and assigns shall deposit
with the City Clerk of the City, a good and sufficient bond
or insurance policy, such as may be approved by the City
Attorney as to form, and approved by the Mayoras to suffic-
iency and in the amount hereinafter required , and condi-
tioned that it , its successors and assigns, shall well
and truly pay to the Mayor of said City, and to his successors
in office for the benefit of any person or persons injured
by reason of the negligent operation of its buses any
amount or amounts which may be awarded by final judgment
of any court of competent jurisdiction, against said company,
its successors and assigns , not exceeding , however, for any
injuries to any one person the sum of Five Thousand Dollars
5,000) or the sum of Twenty Thousand Dollars ($20,000)
for all persons injured in any one accident or occasion ;
such bond or insurance policy shall provide that each claim
and cause of action shall survive in case of the death of
the person injured , for the benefit of the legal beneficiaries
of such person; and that such bond or insurance policy shall
not be exhausted by the first recovery but shall be subject
12 -
S
to successive recoveries and shall be subject to any
alterations of the routes or termini of said buses during
the time which same shall continue in effect . Said bond
or insurance policy shall further provide for and operate
to the benefit of any person suffering damage to his
property through negligent operation of said buses in a
sum not exceeding Five Hundred Dollars ($500) for each ac-
cident or occasion.
Instead of said bond or insurance policy , as
above provided, the Company, its successors or assigns ,
may if it so elects, set up a special reserve fund of
Ten Thousand Dollars ($10,000) to be deposited in some
bank in City, and which reserve shall be maintained for
the benefit of any person or persons injured or suffering
property damage by reason of the negligent operation of
its buses and who shall recover a final judgment in some
court of competent jurisdiction against the Company, its
successors or assigns. All sums paid out of such re-
serve by reason of any such final judgment shall be im-
mediately replaced by said Company, its successors or as-
signs , so that said reserve shall at all times be maintained
at the said sum of $10,000.
SECTION 16.
Termination
The City may at any time terminate this Permit for
the violation or default by the Company of any terms there-
of provided that none of its terms shall be deemed to be
violated so as to permit such termination unless the com-
pany shall first be given notice of such violation or de-
fault and of the intent to declare a termination and there-
after such violation or default shall continue for a period
13 -
i
of more than thirty days, and in such event all rights and
privileges had by said company under the provisions of
this Operating Permit may , by the City, be forthwith
terminated and revoked, provided, however, that the Com-
pany shall not be deemed to be in default for the per-
formance of any provisions of this Permit nor shall any
termination be invoked solely for the violation or fail-
ure to perform any provisions hereto due to strikes, lock-
outs, insurrections, boycotts, acts of God or other cause
beyond the control of the Company.
However, both parties shall have the right without
cause to terminate this Operating Permit by giving to
the other party in writing a thirty days' notice of such
intention, said notice shall be mailed to the City by
addressing same to :
City of Wichita Falls, Texas
City Auditorium
1300 --- 7th Street
Wichita Falls, Texas
and to the Company by addressing same to :
Wichita City Lines , Inc.
2800 Kemp Blvd.
Wichita Falls , Texas
SECTION 17.
Non-Exclusive Grant
This Operating Permit is not exclusive and nothing
herein contained is intended to or shall ever be construed
so as to prevent the City from granting other, different
or similar Operating Permits or franchises to any other
person, firm, association or corporation.
14 -
SECTION 18.
Acceptance
The Company agrees to accept this Operating Permit
when resolution authorizing same has been duly passed and
same has been officially signed by the Mayor of the City
and attested by its Secretary and to evidence said acceptance
in writing within ten days of such passage.
SECTION 19.
Separability and Amendment
If any of the terms, conditions and provisions or
any part of this Operating Permit be held void or uncon-
stitutional , such holding shall not affect the validity
of any of the other provisions hereof, and said other pro-
visions shall remain in full force and effect .
SECTION 20.
This resolution has been duly made, seconded and
passed by the Board of Aldermen of the City.
o4/
PASSED AND APPROVED this the -'6 d ay /of / -
19
A)
Mayof
4.
001EST :
City C1 - rk
ACCEPTANCE:
Wichita City Lines, Inc. , by its duly authorized
officer accepts the terms of the above Operating Permit .
Dated day of 1ft ,1 , , , 19 3 9.
Afti
WICHITA CI j7V 24 INC.
By
1
Jor President
15 -