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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 -