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HomeMy WebLinkAbout11314a October 30, 1962 City of Little Rock City Hall Little Rock, Ark. Please be advised that Twin City Transit, Inc. hereby accepts Ordinance No. 11, 314, duly passed by the Board of Directors of the City of Little Rock on September 21, 1962. This acceptance is filed in accordance with the pro- visions of Section 16(a) of such Ordinance. FILED OCT 30 1962 PAULINE G. &, SON QTY CLERK - TRE_AsuREW Very truly yours, TWIN CITY TRANSIT, INC. cretary C-� l • .1 V y�1 , i • .I r• t 'i.� • ` t _ 1 c t ORDINANCE NO. 11 , 31!� M `; AN ORDINANCE GRANTING TO TWIN CITY TRANSIT, INC. OF M LITTLE ROCK, ARKANSAS, ITS SUCCESSORS AND ASSIGNS, THE AUTHORITY, RIGHT AND PRIVILEGE TO MAINTAIN AND OPERATE MOTOR PASSENGER BUSES, CONSTITUTING A UNIFIED TRANSPORTATION SERVICE, IN, OVER, UPON, ALONG AND ACROSS CERTAIN STREETS, AVENUES, BRIDGES AND OTHER PUBLIC HIGHWAYS AND PLACES IN THE CITY OF LITTLE ROCK, N ARKANSAS, ESTABLISHING AND FIXING ROUTES, SCHEDULES o AND RATES THEREFOR, AND FIXING THE TERMS AND CONDITIONS ,U) OF THE EXERCISE OF SAID GRANT. v 1" P R E A M B L E N WHEREAS, a modern and efficient bus transportation system operating within the City is essential not only to the thousands of citizens and school children who rely upon public transportation, but is also essential to the proper operation of the schools, factories, 0 >1 retail establishments and other business activities encompassing the A a entire economic life of the City as well as to the City itself, insofar b Z as it reduces the traffic on the city streets and thereby street a) construction and maintenance costs, the costs of off - street parking facilities, and is a substantial factor in maintaining real property valuations, not only in the central business district but also in the various industrial and residential districts; and WHEREAS, a modern and efficient bus transportation system adequate to meet the needs of the public and the City can be maintained only if operating revenues of the system are sufficient to pay all operating expenses and provide a reasonable return to the Company; and WHEREAS, the public interest demands that the fares charged for transportation must be as low as is consistent with the continued efficient operation and maintenance of the system; and WHEREAS, a fare schedule based upon the ratio of operating revenues to operating costs, and adjusted periodically in the light of these factors, is best designed to insure lowest fares to the public as well as the continued efficient operation of a modern trans- portation system allowing only a reasonable return to the Company; and WHEREAS, upon consideration by the Board of Directors of all the foregoing factors, the City and Twin City Transit, Inc. have now ccc- .7 r fI - 11 Page 2 agreed upon the terms and conditions of a new franchise providing fares at cost of service, which it is believed will tend to stabilize fares, reduce costs to be borne by the system riders and tend to produce a fair and more certain return to the Company; NOW THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. DEFINITIONS Whenever in this ordinance the words defined in this section are used, they shall be held to mean as follows: The word "City" or "The City" means the City of Little Rock, Arkansas, but whenever the word "City" is used in a territorial sense, it shall be held to mean and include not only the present corporate limits of the City of Little Rock, Arkansas, but the corporate limits as they may hereafter be extended, and such adjacent territory as may for the purpose of this ordinance come under the jurisdiction of said City. The word "Company ", "The Company ", or grantee means Twin City Transit, Inc. its successors or assigns. The word "motor bus" means and includes any self - propelled motor vehicle which is used in the furnishing of local passenger transportation service over fixed or regular routes. The word "street" means and includes any public thoroughfare or part thereof, however designated, including streets, avenues, boulevards, bridges and any other public ways. The word "headway" means the interval of time lapsing after the passage of any given point on any route of the motor bus and before the passage at the same point of the next motor bus serving the same route and traveling in the same direction. The words "base headway" mean headway during those hours or periods of the day when traffic is the lightest and when the minimum number of motor buses is required to be in service. The words "rush headway" mean headway at periods of the day when traffic is heaviest and the maximum number of motor buses are required. .�. .� r !. r.} r '• Page 3 The words "local transportation system" mean motor bus lines, garage facilities and other property owned or leased by the Company that are used to furnish local transportation service within the limits of the City of Little Rock, the establishment and operation of which are provided for in this ordinance. SECTION 2. NATURE OF GRANT The Company, its successors and assigns, is hereby granted upon the terms and conditions hereinafter set forth, from October 21, 1962, or the earliest time allowed by law, to October 21, 19723, subject to earlier termination dates as herein set forth, the auth- ority, right and privilege to establish, maintain, and operate motor passenger buses constituting a unified transportation system, in, over, upon, along and across the streets designated in the routes herein described as follows, to wit: . Page 4 LITTLE ROCK ROUTES ROUTE NO. 1 - PULASKI HEIGHTS -SOUTH MAIN OPERATES INDEPENDENTLY. ROUTE NO. 2 - MEMORIAL PARK IS CONNECTED WITH PARK HILL IN NORTH LITTLE ROCK. ROUTE NO. 3 - FIFTEENTH STREET IS CONNECTED WITH EAST NINTH - WALNUT IN NORTH LITTLE ROCK. ROUTE NO. 4 - WEST SEVENTH - AIRPORT OPERATES INDEPENDENTLY. ROUTE NO. 5 - BIDDLE IS CONNECTED WITH LEVY IN NORTH LITTLE ROCK. ROUTE NO. 6 - LILAC CIRCLE - SEVENTEENTH & COLLEGE OPERATES INDEPENDENTLY. ROUTE NO. 7 - SOUTH HIGHLAND IS CONNECTED WITH WASHINGTON AVENUE - PROTHO JUNCTION IN NORTH LITTLE ROCK. ROUTE NO. 8 - WEST NINTH -EAST SIXTH OPERATES INDE- PENDENTLY. ROUTE NO. 9 - OAK FOREST OPERATES INDEPENDENTLY. ROUTE NO. 1 PULASKI HEIGHTS- OUTH MAIN PULASKI HEIGHTS From apitol and Main Street - North on Main Street to Second Street, West on Second Street to Center Street, North on Center Street to Markham Street, West on Markham Street to Victory Street, South on Victory Street to Third Street, West on Third Street to Summit Street, North on Summit Street to Second Street, West on Second Street to Boone Street, North- west on Boone Street to Markham Street, West on Mark- ham Street to Kavanaugh, follow Kavanaugh to University Avenue, north on University Avenue to Longwood Road, West on Longwood Road to Audubon Street, North on Audubon Street to Greenwood Road, West on Greenwood Road to Pine Valley Road, follow Pine Valley Road to Kavanaugh and McKinley. (North Loop). South on Uni- versity Avenue to Highway #10, West on Highway #10 to Keightly Street, North on Keightly Street to Dickson Drive, Northeast on Dickson Drive to Ridge Road South- east on Ridge Road to Pine Valley Road, follow Fine Valley Road to Kavanaugh and McKinley, East on Kavan- augh and return following same route as outbound. SOUTH MAIN From Capitol and Main Street - South on Main Street to Twenty -Third Street, West on Twenty -Third to Ringo Street, South on Ringo Street to Twenty- Eighth Street, East on Twenty- Eighth Street to Gaines Street, South on Gaines Street to Thirty -Third Street, East on Thirty - Third Street to Arch Street, North on Arch Street to Twenty -Third Street, East on Twenty -Third Street and return following same route as outbound. Page 5 ROUTE NO. 2 MEMORIAL PARK From south end of Main Street Bridge - South on Main Street to Capitol Avenue - West on Capitol Avenue to Woodlane Street, South on Woodlane Street to Seventh Street, West on Seventh Street to Wolfe Street, South on Wolfe Street to Eleventh Street, West on Eleventh Street to Park Avenue, South on Park Avenue to Thirteenth Street, West on Thirteenth Street to Lewis Street, South on Lewis Street to Sixteenth Street, West on Sixteenth Street to Green Meadow Drive, follow Green Meadow Drive to Seventeenth Street, West on Seventeenth Street to Jackson Street, South on Jackson Street to Eighteenth Street, West on Eighteenth Street to Fair Park Blvd., North on Fair Park Blvd. to Eighth Street, East on Eighth Street to Private Drive, South on Private Drive to Eleventh Street, East on Eleventh Street to Lewis Street, South on Lewis to Thirteenth Street, East on Thirteenth Street and return same route as outbound. (Note) This route may be run in reverse from Thirteenth Street and Lewis. ROUTE NO. 3 FIFTEENTH STREET From south end of Main Street Bridge - South on Main Street to Seventeenth Street, West on Seventeenth Street to State, North on State to Sixteenth Street, West on Sixteenth Street to Park Avenue, South on Park Avenue to Wright Avenue, East on Wright Avenue to Summit Street, South on Summit Street to Twenty- Fourth Street, East on Twenty- Fourth to Battery, South on Battery to Twenty- Seventh Street, West on Twenty- Seventh Street to Summit Street, South on Summit Street to Twenty -Ninth Street, East on Twenty Ninth Street to Battery, North on Battery and return same route as outbound. ROUTE N0. 4 WEST SEVENTH - AIRPORT WEST SEVENTH From Capitol and Main Street - West on Capitol Avenue to Arch Street, South on Arch Street to Seventh Street, West on Seventh Street to Johnson Street, South on Johnson Street to Lamar Street, West on Lamar Street to Valentine Street, North on Valentine Street to Markham Street, West on Markham Street to University Hospital Drive, South on University Hospital Drive to Medical Center Entrance and return to Markham Street, West on Markham Street to Van Buren Street, North on Van Buren Street to Lee Street, West on Lee Street to Tyler Street, North on Tyler Street to "H" Street, West on "H" Street to University Avenue, South on University Avenue to Markham Street, East on Markham Street to Valentine Street and return same route as out- bound. (Note) This line operates via University Medical Center on the outbound trips until 3:00 P.M. After 3 :00 P.M. this line operates via University Medical Center on the inbound trip. (Note) Brookfield and Wingate Area served by West Seventh Street Route at less frequent intervals than regular service. AIRPORT From Capitol and Main Street - South on Main Street to Ninth Street, East on Ninth Street to Bond Street, South on Bond Street to Thirteenth Street, East on Thirteenth Street to Airport Administration Building, West on Airport Drive to Cal- houn Street, North on Calhoun Street to Eleventh Street, West on Eleventh Street to Bond Street, and return same route as out- bound to Ninth and Scott Streets, North on Scott Street to Eighth Street, West on Eighth Street to Main, North on Main to Capitol. 7 Page 6 ROUTE NO. S. BIDDLE From south end of Main Street Bridge - South on Main Street to Eleventh Street, East on Eleventh Street to Rock Street, South on Rock Street to Twenty -First Street, East on Twenty -First Street to McAlmont Street, South on McAlmont Street to Roosevelt Boulevard, East on Roosevelt Boulevard to Confederate Boulevard, South on Confederate Boulevard to Booker Homes. Return following same route as outbound. ROUTE NO. 6 LILAC CIRCLE - SEVENTEETH & COLLEGE LILAC CIRCLE From Capitol and Main Street - West on Capitol Avenue to Chester Street, North on Chester Street to La Harpe Boulevard, West on La Harpe Boulevard and follow Cantrell Road to Magnolia Street, North on Magnolia Street to Lilac Terrace, West on Lilac Terrace to Cantrell Road, Northwest on Cantrell Road to Harrison, North On Harrison to Kavanaugh, East on Kavanaugh to Cantrell Road, East on Cantrell Road to Cross Street, South on Cross Street to Capitol Avenue, East on Capitol Avenue to Main Street. SEVENTEENTH & COLLEGE From Capitol and Main Street - South on Main Street to Fourteenth Street, East on Fourteenth Street to College Street, South on College Street to Fifteenth Street, East on Fifteenth Street to Security Street, South on Security Street to Twenty -First Street, East on Twenty - First Street to Bolton Street, South on Bolton Street to Twenty -Sixth Street, West on Twenty -Sixth Street to the 2000 Block and return same route as outbound to Twenty -First and Boyce Streets, North on Boyce Street to Fifteenth Street. Return same route as outbound to Fourteenth and Scott Streets, North on Scott Street to Capitol Avenue, West on Capitol Avenue to Main Street. ROUTE NO. 7 SOUTH HIGHLAND From south end of Main Street Bridge - South on Main Street to Fourteenth Street, West on Fourteenth Street to Woodrow Street, South on Woodrow Street to Twentieth Street, West on Twentieth Street to Cedar Street, South on Cedar Street to Twenty -Fifth Street, West on Twenty - Fifth Street to Washington Street, South on Washington Street to Twenty -Ninth Street, West on Twenty -Ninth Street to Fair Park Boulevard, North on Fair Park Boule- vard to Twenty- Second Street, East on Twenty- Second Street to Lewis Street, North on Lewis Street to Twentieth Street, East on Twentieth Street and return same route as outbound. ' Page 7 ROUTE NO. $ WEST NINTH SIXTH WEST NINTH From Sixth and Main Street - South on Main Street to Eighth Street, West on Eighth Street to High Street, South on High Street to Thirty - Fourth Street, West on Thirty - Fourth Street to Bishop Street, North on Bishop Street to Thirty -Third Street, East on Thirty -Third Street to High Street, North on High Street to Ninth Street, East on Ninth Street to Main Street, North on Main Street to CapitolAvenue. EAST SIXTH From Capitol and Main Street - North onMain Street to Fourth Street, East on Fourth Street to Byrd Street, South on Byrd Street to East Sixth Street, East on Sixth Street to Picron Street, South on Picron Street to Tenth Street, West on Tenth Street to Harrington Street, North on Harrington Street to Sixth Street, West on Sixth Street to Main Street. OAK FOREST From Capitol and Main Street - South on Main Street to Eleventh Street, West on Eleventh Street to Broadway, South on Broadway to Twentieth Street, West on Twentieth Street to Wolfe Street, South on Wolfe Street to Twenty - First Street, West on Twenty -First Street to Park Avenue, South on Park Avenue to Roosevelt Road, West on Roose- velt Road and Asher to University Avenue, North on University Avenue to Point O'Woods, West on Point O'Woods to Berkshire, follow Berkshire to Lakeshore, follow Lakeshore to University Avenue, South on University Avenue to Thirty- Second Street, West on Thirty - Second Street to Bryant, South on Bryant to Highway #5, East on Highway #5 to University Avenue, South and East through Village Shopping Center to Asher Avenue, East on Asher Avenue. Return same route as outbound to Eleventh and Center Streets, North on Center Street to Capitol Avenue, East on Capitol Avenue to Main Street. ` I i Page 8 The Company shall operate its motor buses upon, over and along said routes, with reasonable accuracy and headway so as to provide adequate service as requested by the City, it being under- stood that the Company shall have the right to earn sufficient revenue to pay for the cost of its operation, including the cost of maintenance, depreciation, taxes and assessments, together with a reasonable return to the Company. In the event the Company's return, as hereinafter defined,is impaired at any time, the Company shall have the right to adjust service or abandon routes to a degree necessary to enable it to earn a return as hereinafter authorized and shall give immediate notice to the City of such adjustments. In the event of dispute between the City and the Company as to adequacy of service over said routes, the City shall have the right to require additional service so long as the Company's return as hereinafter defined is not impaired thereby. If the City and the Company shall not agree as to the pro- priety of a request by the City to increase service or in regard to adjustments in service made by the Company, the dispute shall be arbitrated as set forth in Section 9 hereunder. SECTION 3. ROUTE CHANGES - INITIAL or ADDITIONAL ROUTES Additional routes and extensions and modifications to or abandonment of all or a portion of initial routes may be established or effected by the Company with the approval of the City. The initial routes and additional routes as well as any extensions or modifications to either the initial or additional routes may be modified or all or portions thereof abandoned by the Company if between the beginning of service and 6:30 p.m. on each weekday and Saturday, the average revenue passengers per bus mile on all or any separable portion thereof is less than five (5) or if between 6:30 p.m. and the close of service on weekdays and Saturdays, and all day on Sundays the average revenue passengers per bus mile on all or any separable portion thereof is less than four (4). Page 9 Upon presentation to the Company of evidence that an area within the City proposed to be served has approximately the same density of population as the area served generally by the Company, the City may require the Company to operate motor bus service via additional routes or via extensions to or modifications of initial or additional routes on an experimental basis. If after thirty (30) days operating experience, the average revenue passengers per bus mile on the additional, extended or modified route is less than the standard set out in the paragraph next above in this section, the Company may at once either discontinue the experimental service or at its option revise the schedule of service and continue its oper- ation for such additional experimental period as the facts and cir- cumstances warrant. The continued operation of experimental service by the Company beyond the thirty (30) days experimental 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 operated over a route or portion thereof and subsequently discontinued pursuant to the provisions of this Section 3, the Company shall not be required to again operate experimental service over said routes 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. SECTION 4. EMERGENCY ROUTES Whenever it shall become necessary for the City to exclude vehicular traffic over any street or portion of street named in Section 2 of this ordinance, whether for the purpose of reconstruction or repairing such street, or for any other public emergency purpose, or whenever through accident or emergency or on account of construction work of any kind or character, it is impracticable to operate such service efficiently on any street or portion of street so designated, then the Company shall have the right, with the approval of the City, Page 10 to continue such service by the use of other streets serving sub- stantially the same territory or substantially paralleling the same route until the causes compelling such change in services shall be removed. SECTION 5. 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 shall 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 it is herein- after permitted to charge for its regular service. SECTION 6. EQUIPMENT AND STOP ZONES The Company shall at all times use motor buses of modern design, produced by a recognized manufacturer of motor buses, fully equipped with safety appliances and shall maintain the same in a good state of repair and in a clean, sanitary condition, and shall in the operation of said motor buses comply with all police regulations of the City and State. The Company shall have the right to designate, subject to the approval of the City, bus stops and shall have the right to equip same with markers, subject to the approval of the City, indicating to the traveling public where the buses stop. At all designated stops on the motor bus lines of the Company the City shall set aside an adequate space or zone in which it shall be unlawful for vehicles to interfere with the bus operation to the end that the safety, con- venience and welfare of the patrons and public may be safeguarded. SECTION 7. TRANSFERS A transfer shall be issued by the Company, as hereinafter provided from motor bus to motor bus, which transfer shall be accepted when presented by such passenger to the operator of the next connecting bus not going to or returning by the same route or any other route Page 11 which would enable the passenger to return to the vicinity from which he started without paying a second fare. The Company may make such reasonable regulations not inconsistent with the provisions of this ordinance as may be necessary to prevent misuse of transfer, and shall file with the City a copy of such regulations. SECTION 8. INSURANCE The Company shall obtain and file with the Director of Finance of the City of Little Rock, Arkansas, and continue to keep the same in full force and effect during the period of this grant, liability insurance policy or policies, or bond or bonds of indemnity, conditioned for the benefit of persons suffering injury, loss or damage in person or property by virtue of the negligent operation and maintenance of motor bus transportation equipment used by said Company. Such liability policy or policies, indemnity bond or bonds, shall be in the sum of not less than One Hundred Thousand Dollars ($100,000.00) for injury or death to any one person, and not less than the sum of Three Hundred Thousand Dollars ($300,000.00) for the death or injury to all persons affected by any one accident, and not less than the sum of Twenty Five Thousand Dollars ($25,000.00) for damage to pro- perty in any one accident, such coverage to be for all transportation vehicles used for service herein authorized, and shall continue un- diminished. Insurance or bonds to the amount required in this ordinance shall be in effect during the entire time such motor buses are in operation under this grant. In the event that, as a result of the Company's experience, it is either granted a rebate of premiums paid, or is assessed for additional premiums, such rebate or assessment shall be credited to or debited from the Company's operating expenses, and such adjustment shall be pro -rated on a monthly basis for the six (6) months following the receipt or payment of such rebate or assessment. SECTION 9. RIGHT TO PURCHASE The Company by the acceptance of this ordinance hereby grants Page 12 to the City, and the City reserves unto itself the right at any time during the life of this grant or any renewal thereof, upon giving at least ninety (90) days previous notice in writing of its intentions so to do, to acquire by purchase, condemnation or otherwise, the entire property of the Company within the City, used in or useful for the operation of the local transportation system within the City. The price to be paid for the property of the local transpor- tation system in case of acquisition by the City shall exclude all value of this grant or any renewal thereof. The price to be paid by the City in the event it should exercise its option to purchase said property, shall be agreed upon by the City and the Company, and in the event of their failure to agree, the price shall be determined and fixed by arbitrators to be appointed as follows: Each party shall choose an arbitrator (and the two thus chosen shall choose a third arbitrator), and upon failure for five (5) days to agree on the third arbitrator, the Chairman of the Public Utilities Commission of Arkansas shall submit three (3) names of persons who are to serve as arbitrators. The Company arbitrator shall strike one name. The City arbitrator shall strike one name. The person remaining shall become the third member of the arbitration board, and said Board of Arbitrators shall make a valuation of the property of said Company, which valuation shall be made within thirty (30) days after they are chosen. The parties choosing an arbitrator shall pay the compensation and expense of such arbitrator together with the expense of the hearing and investigation shall be borne equally by the parties. Within one (1) month after said value shall have been agreed upon or fixed as aforesaid, the City of Little Rock shall pay the amount thereof to this Company, whereupon the City shall be entitled to have conveyed to it and shall be given possession of said property free and clear of all liens, and any grant conferred upon the Company by this ordinance shall thereupon cease. The City may refuse to be bound by the price fixed by the Board of Arbitrators, in which event the City shall pay the cost and Page 13 expense of said arbitration, including the compensation of the arbitrator selected by the Company and no further proceedings shall be had under said notice to purchase. The provisions herein set forth for arbitration for purchase and the arbitration procedures hereunder shall be applicable for arbitration on all matters in this franchise which may be legally the subject of arbitration and concerning which the Company and the City have agreed to arbitration procedures. SECTION 10. COMPANY TO SAVE CITY HARMLESS It is understood and agreed that the City shall not be liable to the Company for any delay that may be caused by the construction or laying of sewers, water, gas or other pipe or lines, or from the necessary repairing of the same, or from any delay that may be caused by fire, or the repair of any street or streets. SECTION 11. SPECIAL TAXES The City will not require the Company to pay the City any tax or fee based on its assets, or or net receipts or earnings of the ad valorem property taxes levied of perty which the Company might own. section to exempt the Company from application throughout the City. SECTION 12. COMPETITION. its operations, or on the gross Company, other than the normal 1 any real and /or personal pro - It is not intended by this any tax of uniform and general The City shall, so far as within its power lies, protect the Company from competition with other motor bus lines which would tend to interfere with the profitable and economical operation of the transportation system as a whole, but this grant shall not be construed as an exclusive grant for the transportation of passengers for hire. Nothing herein contained shall prevent the operation of interurban buses which do not carry local passengers whose rides originate and terminate within the corporate limits of the City. The City further agrees that it will, so far as within its power lies, Page 14 not permit during the hours of operation by the Company the trans- portation of passengers by interurban buses whose rides begin and end within the corporate limits of the City and will not permit said interurban bus lines to pick up passengers within the corporate limits for transfer to any other connecting interurban lines situated within the corporate limits. SECTION 13. FORFEITURE AND TERMINATION The City shall have the right to investigate the manner of operation of the service of the Company for the purpose of securing to the City efficient service by said Company. The City may at any time declare a forfeiture of this franchise for the violation or default by the Company of any of the terms thereof, provided that none of the terms of this franchise shall be deemed to be violated so as to permit such forfeiture unless the Company shall first be given notice of such violation or default and of the intent to declare a forfeiture, and thereafter such violation or default shall continue for a period of more than sixty (60) days, and in such event all the rights and privileges of said Company under the pro- vision of this franchise may be forthwith declared forfeited and revoked. Provided, however, that the Company shall not be deemed to be in default for performance of any provision of this franchise nor shall any forfeiture be invoked for any violation of or failure to perform any provision hereof due to strikes, insurrections, act of God or any other causes beyond the control of the Company. SECTION 14. REGISTRATION OF MOTOR BUSES All motor buses used by the Company shall be registered with the City. The Company shall pay the City a registration fee of Two and 50/100 Dollars ($2.50) per year for each bus to be regis- tered, payable at the beginning of the year on motor buses used for the entire year or any part thereof. The City will not require the Company to pay the City any other tax or fee based on the gross or net receipts or earnings of the Company and no city license fee or tax shall be levied against the Company or its motor buses or equip- ment, nor shall the Company be required to pay any portion of any paving or street improvement cost. Page 15 SECTION 15. EXTENSION OR RENEWAL OF FRANCHISE In the event the Company should desire an extension or re- newal or modification of this grant it shall notify the City of its willingness and readiness to contract for such extension or renewal or modification of said grant at least six (6) months before the expiration of this grant, and in the event the City should desire an extension or renewal or modification of this grant it shall so notify the Company of its willingness and readiness to contract with the Company for such extension or renewal or modification at least six (6) months before the expiration of this grant. Provided, however, that the failure of the City or the Company to give such notice shall not constitute a bar to an agreement being entered into between the City and the Company for an extension or renewal or modification of this grant. SECTION 16. ACCEPTANCE OF FRANCHISE BY COMPANY (A) The Company, within forty (40) days from and after the passage date of this ordinance shall have the right to file with the City Clerk of the City of Little Rock a written acceptance of the same and when the ordinance shall have been accepted by the Company such ordinance and acceptance shall constitute a contract between the City and the Company for all the uses, and purposes set forth in this ordinance and such acceptance together with the ord- inance shall be deemed an agreement to perform all and singular the conditions and requirements of the ordinance. The Company, by its acceptance of this ordinance, hereby agrees to provide the necessary motor buses, and to establish, operate and maintain the local trans- portation service contemplated in this ordinance over and along the routes named in Section 2 of this ordinance, beginning on October 21, 1962, or the earliest time allowed by law. (B) The ordinance shall be in full force and effect from the date of acceptance of this franchise to October 21 , 19722 except that either the City or the Company shall have the right to terminate this franchise, with or without cause, with such termination becoming effective seventy -two (72) months immediately following said acceptance, by giving not less than twelve (12) months written notice of its intention to do so. Page 16 SECTION 17. TRANSFER OR ASSIGNMENT OF FRANCHISE The Company agrees that it will not transfer, assign or in any manner convey to another any right, privilege or franchise granted by this ordinance, unless such transfer, assignment or conveyance shall have first been submitted to the Board of Directors together with a request for its approval, with all relevant information which the Board of Directors may require, and Board of Directors shall have approved such proposed transfer, assignment or conveyance, or unless the Board of Directors shall have failed to take action either approving or disapproving such transfer, assignment or conveyance within thirty (30) days after the Company shall have requested approval thereof. No transfer, assignment or conveyance of the rights, privileges and fran- chises granted by this ordinance shall be valid until there is filed with the City Clerk a transcript of all minutes, papers and documents affecting the same, together with transcripts of the application to the Board of Directors for the approval thereof and of the action of the Board of Directors thereon. SECTION 18. NOTICES Whenever by the terms of this ordinance notice is required to be given by the City to the Company, it may be given by leaving a paper writing thereof during the ordinary business hours at the prin- cipal office of the Company in the City of Little Rock, Arkansas. Whenever the Company is required to give notice to the City it shall do so by delivering a written notice to the City during ordinary business hours. SECTION 19. THE OPERATING RATIO The operating ratio shall be defined as follows: Operating ratio for the Company's operations shall be the sum of the Company's allowable operating costs, Federal Income Taxes, and allowances for depreciation and amortization, all in accordance with the Uniform System of Accounts as used by the Interstate Commerce Commission and items allowed by the United States Bureau of Internal Revenue, divided by the Company's Gross Revenue. For the purposes of determining the operating ratio as used above, the following definitions shall apply: (a) Gross revenues shall be defined as follows: All passenger i Page 17 revenue, including ticket and token sales on a cash basis, special and charter bus revenue, advertising revenue and all other operating revenue and non - operating income. Further, in determining gross revenue, all revenue, all revenues and income as determined by the Accounting,Procedure required by the United States Department of Internal Revenue shall be included. (b) The Term 'operating cost" shall include: 1. Operation and maintenance expenses. 2. Depreciation, amortization expenses and leasing expenses. Provided, however, leasing expenses or rental shall not exceed the current average charge in the industry. In computing depreciation on assets used and useful, the Company shall at all times use the schedule approved by the Interstate Commerce Commission. 3. Taxes and Licenses. The Company may set up on its books an amount which it reasonably believes will be its liability for the then calendar year.as taxes, licenses, or other governmental charges. One- twelfth (1/12) of such amount shall be considered as a cost for each month in computing the operating ratio. Adjustment shall be made during the year for any increases or decreases in taxes, licenses or other governmental charges. 4. Operating Rents. 5. All taxes, assessments, imposts, excises and all public charges of every character, whether chargeable to capital or not, legally levied, imposed or charged by any and all governmental authorities, whether upon pro- perty or earnings or income or profits. 6. Federal Income Taxes for any applicable period shall be computed in accordance with standard regulatory practices. Proper adjustments shall be made to the respective account in which items of expense of any kind are disallowed for the purposes of income tax computations. Page 18 7. Any rehabilitation costs of property, or changes chargeable to the capital account under regulations of the United States Bureau of Internal Revenue shall be excluded from such operating costs. 8. In the matter of any present or future reserve accounts, the monthly charges shall not exceed one - twelfth (1/12) of the actual or reasonably estimated annual amounts of the account for which the reserve exists or is created. Further, no such reserves shall exceed amounts which would be or are allowed by the United States Bureau of Internal Revenue, such excesses, if any, shall be credited back..to the account against which the original charge was made. In the conduct of its business, the Company shall practice all reasonable economics in keeping with the proper conduct of such business and shall purchase materials at the best price obtainable, quality and time of delivery considered. If a complaint in writing is made to the Company by the City, or its duly authorized representative, that any report provided pur- suant to Section 21 (a) hereof of the Company is inaccurate or in- correct or that actual expenditures reported by the Company in any month are excessive or not reasonably related to the operation of its business or that the gross revenue is not correctly stated, as required by the Bureau of Internal Revenue, or that amounts claimed by the Company as depreciation allowance, tax liabilities or its present or future reserves are improper or are not on a cash basis; or that the Bureau of Internal Revenue has changed or disallowed amounts claimed as deductions by the Company and that thereby the operating ratio should be adjusted; or that estimates for operations in the next fare adjustment period are likewise improper or unreasonable and if there- after the complaint cannot be settled between the parties, the matter shall be submitted to arbitration as provided for elsewhere in this ordinance. Page 19 SECTION 20. RATES OF FARE Subject to change as hereinafter provided, the service of the Company shall be at the following rates of fare: Adult Cash 20(,% Token Fare 5/90 Student Fare 10e, between hours of 7 and 4 SCHOOL DAYS ONLY Child over 5 and under 12 years 74� Children under 5 FREE if accompanied by Adult Transfer 2G The foregoing rates of fare shall be in force and effect only as long as the operating ratio of the Company does not exceed 95. In the event its operating ratio is between 95 and 97, the Company shall certify this fact to the City, together with a state- ment of the rates of fare it deems necessary in order to restore the operating ratio to 95. Within ten (10) days of the receipt thereof by the City, the Company and the Board of Directors shall arrange a meeting to negotiate the matter, and in no event shall the revised rates deemed necessary by the Company go into effect without approval of the Board of Directors. In the event the operating ratio exceeds 97, the Company shall certify this fact to the City, together with a statement of the rates it deems necessary in order to restore the operating ratio to 95. Fifteen (15) days after the receipt thereof by the City, the Company may put the new rates of fare into effect. In the event the operating ratio of the Company drops below 93, the Company shall certify this fact to the City, together with a statement of the rate of fare necessary in order to restore the operating ratio to 95. Within 15 (fifteen) days of the receipt thereof, the Company and the Board of Directors shall arrange a meeting to negotiate the matter. During the duration of this ordinance or any extension thereof, either Board of Directors or the Company may request a revision of the rate structure as above provided, but in no event will any revision be made sooner than six (6) months from the previous rate revision. Page 20 Any and all reports or certifications made by or required of the Company under this Section affecting operating ratio and changes in rates of fare shall be certified to and as determined by a Certified Public Accountant employed by the Company. SECTION 21. ADJUSTMENT OF RATES OF FARE (a) On or before the 30th day of each month following a month in which a fare period ends, the Company shall file with the City a statement certified to by two officers of the Company, setting forth in reasonable detail the following: 1. An operating statement for the fare adjustment period ending with the last day of the preceding month; and 2. An estimate of the gross revenues for the succeeding fare adjustment period adjusted to reflect the effect of any adjustment in fares which may become effective one (1) month after the beginning of such fare adjustment period, and further adjusted to reflect all increases, decreases, elimi- nations and additions to such gross revenues which may be based on factors reasonably predictable prior to the filing of the statement and which will be in effect during such succeeding fare adjustment period. The statement shall describe the nature, extent and basis for any such adjust- ments; and 3. An estimate of all operating expenses, as defined in paragraph (b) of Section 19 before return to the Company for such succeeding fare adjustment period which shall be based upon the normal operating expenses set forth in item 1 hereinabove, adjusted to reflect all increases, decreases, eliminations, and additions to such operating expenses before return to the Company which are based on factors reasonably predictable known prior to the filing of the statement and which will be in effect during the succeeding fare adjustment period. The statement shall describe briefly the nature, extent and basis for such adjustments; and 4. The return to the Company for such succeeding fare ad- justment period (item 2 minus item 3). Page 21 The City shall, within fifteen (15) days of the receipt of the statement filed pursuant to this section, either approve or dis- approve such statement and notify the Company in writing of its de- cision. In the case of the disapproval of such statement, or any items therein, such notice shall set forth its reasons for such dis- approval. Should the Company and the City fail to reach an agreement with regard to these matters in dispute within five (5) days from the date of the service on the Company of said disapproval, the matter shall be immediately submitted to arbitrators selected as set forth in Section 2 hereinabove. If any dispute is referred to arbitrators, no change in fares shall be instituted for at least fifteen (15) days after the Company has received notice of the City's desire to arbitrate. If an arbitration decision has not been made within fifteen (15) days from the receipt of such notice, then fare changes based upon the Company's statement may be put into effect. If the Board of Arbi- trators determines that the statement filed by the Company was correct, the matter shall be considered closed. If the Board of Arbitrators determines that the statement filed by the Company was incorrect, the Company shall immediately correct such statement. If the statement as corrected does not entitle the Company to the rates of fare put into effect, rates of fare based on the corrected statement shall be put into effect on the date specified in the award. (b) It shall be the further duty of the Company, during each fare adjustment period, to furnish the City monthly operating statements, in normal detail; including figures on passengers carried, classified as to types of passengers, figures showing the number of miles traveled by the buses of the Company and route breakdowns, and prepared by the Company in the usual course of its business. (c) Publication of Notice of Adjustments. At least five (5) days prior to the date on which a change in fares authorized herein is to be made, the Company shall give all necessary information regarding such adjustments by notice published in a newspaper of general circu- lation in the City and by notices posted in its motor buses, but the t Page 22 failure to publish or post any such notice shall not affect the right of the Company to make an increase in fares, or the obligation of the Company to make a decrease in fares as herein provided. SECTION 22. SCHEDULE OF ADJUSTMENTS OF FARES (a) (1) Whenever the Company is first required or permitted to adjust fares, whichever is applicable, such adjust- ments shall be made in the following order and in the following manner: (2) If such first adjustment shall be a decrease, the Company shall decrease the rate of fares in the order provided in the following schedule of adjustments set forth at the end of this section, commencing with Step 17, and including such additional lower numbered steps simultaneously in order of sequence as may be necessary to comply with the requirements of this ordinance. (3) If such first adjustment shall be an increase, the Company shall increase the rate of fares in the order provided in such schedule, commencing with Step 17 and including such additional higher numbered steps simul- taneously in order of sequence as may be permitted pur- suant to this ordinance. Thereafter, whenever the Company is required to make a decrease or permitted to make an increase, such decrease shall commence with the step next lower than the step then in effect, and such increases shall commence with the step next higher than the step then in effect. In both cases, such number of steps in order of sequence shall, in the case of a decrease, and may, in the case of an increase, be placed into effect simultaneously as are required or permitted by the provisions of this ordinance. (4) If the Company, in a fare adjustment period in which the rate of fare in effect is any one of the three (3) highest steps in the schedule of adjustments set forth r f ` Page 23 in subsection (a) of this section, fails to earn the return to which it is entitled hereunder, the Company shall have the right, by notice filed with the City, to require the addition by the City of further steps in said schedule, permitting fare structures adequate to accomplish the purpose of this ordinance. Said additional schedule shall include at least eight (8) steps, providing increased fares over the highest step as set forth in said schedule, and the increases in said new steps shall be approximately equal to the spread in the existing steps set forth in said schedule. In the event that within ninety (90) days, or within such longer period of time as may be agreed upon by Company, the City has not amended this ordinance by the addition of the above referred to supplementary steps, the Company may, but shall not be required to, terminate this fran- chise by notice of termination filed with the Clerk of the City, and upon the filing of any such notice of termination the Company shall thereupon be released from an,y and all obligations under this ordinance. SCHEDULE OF ADJUSTMENTS Adult Fare Adults Tickets or Tokens Children's School Fare Step Cash Per Tokens or Tickets Total Fare - Tickets or Cash Fare Ride No. in Units Sold Cost 6 to 12 yrs. Tokens 1. .20 .142 10 $1.45 .07 .10 2. .20 .142 10 1.45 .07 .10 3. .20 .14 -3/4 20 2.95 .07 .10 4. .20 .15 5 .75 .07 .10 5. .20 .15 10 1.50 .07 .10 6. .20 .15 -1/3 13 2.00 .07 .10 7. .20 .152 10 1.55 .07 .10 8. .20 .15 -5/6 6 .95 .07 .10 9. .20 .16 5 .80 .07 .10 10. .20 .16k 4 .65 .07 .10 11. .20 .16 -3/7 7 1.15 .07 .10 12. .20 .16 -2/3 6 1.00 .07 .10 13. .20 .17 5 .85 .07 .10 14. .20 .17 -1/3 6 1.05 .07 .10 15. .20 .172 4 .70 .07 .10 16. .20 .17 -6/7 7 1.25 .07 .10 17. .20 .18 5 .90 .07 .10 18. .20 .18 -1/3 6 1.10 .10 10/1.10 -.11 .15 19. .22 .19 5 .95 .10 10 /1.10 -.11 .15 Page 24 SCHEDULE OF ADJUSTMENTS (continued) Adult Fare Adults Tickets or Tokens Children's School Fare Step Cash Per Tokens or Tickets -Total Fare Tickets r Cash Fare Ride No. in Units Sold Cost 6 to 12 yrs. Tokens 20. .23 .19 5 .95 .10 10 /1.10 -.11 .15 21. .24 .20 5 1.00 .10 10 /1.10 -.11 .15 22. .25 .20 5- 1.00 .10 10 /1.10 -.11 .15 23. .25 .20 5 1.00 .15 10 /1.10 -.11 .15 24. .25 .20 5 1.00 .15 10 /1.10 -.11 .15 25. .25 .20 5 1.00 .15 10/1.15 -.11k .15 „Zk. .25 .20 5 1.00 .15 10/1.20 -42 .15 27: .25 .21 5 1.05 .15 10/1.25 -.1 .15 28. .25 .22 5 1.10 .15 10/1.25 -.12 .15 29. .25 .23 5 1.15 .15 10/1.25 -.12k .15 30. .27 .23 5 1.15 .15 10/1.30 -.13 .15 31. .27 .24 5 1.20 .15 10/1.35 -.13k .15 32. .27 .25 5 1.25 .15 10/1.35 -.13k .15 33. .30 .26 5 1.30 .15 10/1.40 -.14 .15 34. .30 .27 5 1.35 .15 10/1.45 -.14k .15 35. .30 .28 5 1.40 .15 10/1.50 -.15 .15 CHILDREN UNDER 5 FREE (WHEN ACCOMPANIED BY AN ADULT) Transfer - 2(,% SECTION 23. INVALIDITY Each section of this ordinance and every part thereof is hereby declared to be an independent section and parts of sections, and should any section or provision of this ordinance be decided by any court to be invalid, void or ineffective for any cause the same shall not affect the validity and effectiveness of this ordinance as a whole, or any part thereof, other than that particular section so held to be invalid, void or ineffective. SECTION 24. REPRESENTATIVE OF THE CITY The City Manager shall designate the legally constituted representative of the City to represent it in any matters coming within the preview of this ordinance, and wherever notices or statements are required to be filed by the Company, the same shall be filed with such representative of the City. SECTION 25. On or before the 28th day of each month the Company shall furnish the City, by delivery to the Director of Finance, an operating financial statement covering the period of the preceding calendar month. r-' _ w .. Page 25 SECTION 26. EFFECT This ordinance shall take effect and be in full force and effect from and after the earliest period allowed by law. PASSED: September 21, 1962 ATTEST: City Clerk FILED S E P 14 1962 PAULINE G. BEESON CITY CLERK • TREASURER y: 40 '-P x- APPROVED: