Resolution 03958Is
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RES01UTION NO. 3958
ADOPTING IK FRINCIPLE THE TER11,13 1' D CONDITIONS
U11DEIIR "4111C11 TEE CITY COUNCIL WOULD BE WILLING TO
GRANT A FRANCHISE TO KEY SYSTEE TRANAIT LINES
BE IT RESOLVED BY THE OOMCIL OF THE CITY OF ALA EDA as follows:
WHEREAS, the Key System Transit Lines and their predecessors have been
operating a transportation system in the East Bay cities for many years; and
WHEREAS, the transportation system now operated in the City of Alameda
consists of motor busses; and
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El the cities of the East may and the Key System Transit lines
have had under consideration for some time a new franchise agreement that would
supersede all existing aEreements and franchises; and
1a'IHMEAS, the administrative officials of the East Bay cities and the
officials of the Ley System Transit Lines have agreed, in principle, upon the mat-
ters that should be included in a transportation franchise for all of the East Bay
cities;
EOW THEREFORE, BE IT RESOLVED, that this Council hereby adopts in prin-
ciple the terms and conditions that have been agreed upon by the administrative
officials of all of the East Bay cities as the terms and conditions that should be
included in the new transportation franchise to be granted by each of the East Bay
cities to the Key Systen Transit Lines as follows:
1. EXTENT OF FRZACYTSE. Franchises shall cover all lines presently oper-
ated by the hey jystem Transit Lines and changes that may be authorized from time to
time by the Public Utilities �','Oimnission. The company shall commit itself to serve
all areas of the city with adequate transportation as may be determined by the Pub-
lic Utilities Commission.
2. EXCLUSIVE FEATURE OF TEE FRANCEISE. That the use of the word "ex-
clusive" by the hey jystem Mansit Lines in a franchise means that the cities will
not authorize transportation competition within the city limits without the consent
of either the key SYstem Transit LLnes or the Public Utilities Commission. That any
franchise entered into between the Key Mstem Transit Lines and the city will not
exclude the operation by anyone Of any type of transit service in the future, that
might be authorized by the lublic Utilities Commission, even though it be in compe-
tition with the hey System Transit Lines. Nor would it prevent any district, city,
county or public authority or any combination thereof from filing an application
with the Public Utilities Commission for furnishing transportation service. Any
new service involving trans -bay operations would require the consent of the Calif-
ornia Toll 3ridge Authority.
'U1.ATIO!1'3 �01) Cf?_L?,'HATlQ1q3 ON ONE-";",TZf STREETS.
3. OBEDIENCE TO TRAFFIC REC,'T
The Key System Transit Lines will agree to abide by all City police powers and traf-
fic regulation control that does not involve the relocation Of tracks located in
streets, and if they are required to change or modify a bus route because of any
police power or traffic reaulation such as a one-way street, they will promptly
apply to the Public Utilities Commission for re-routing of any bus line to conform
to CitY traffic regulations.
4. TER11-!, 01' GRANT AND OPTION TO REM. It is understood and agreed that
the term of the franchise would not exceed ten (10) Years, and that at the time a
franchise is entered into an agreement will be entered into with the cities for the
removal of all abandoned street car tracks and the repaving of the street areas)
and that the contract for the track removal and repaving will expire at least two
(2) years before the franchise. That the franchise will contain options to renew
for three (3) five-year periods, the option to renew only to be exercised with the
consent of the city. Notice of intention to exercise said option to be given to
the council not more then one (1) year nor less than six (6) months before the ter-
mination date.
5. PA NTS TO THE CITY Ley SYstem Transit Lines would agree to pay to
the cit Y a Proportionate share of 2 t
Q of the company's annual total Cross passenSer
revenue as to each type of service as reported to the Public btilities Commission.
The Proportion to be paid each city to be the ratio of the scheduled service miles
within the city to the total operations of the company for each class of service.
The percentage to be 2% from the date of filing application for a franchise by the
M System Transit Lines and to continue thereafter during the remaining life of
the franchise and any renewals thereof with the understanding that the portion of
the .Can FTancisco-Uakland My Bridge included within the total of scheduled miles
operated vould not be considered a portion of the scheduled miles operated within
the city; in other words, the My Bridge and any uninco2ponated area would partici-
pate in the allocation of franchise Payments in the same Manner as the cities.
"Gross receipts" as used in this section shall mean all receipts derived
from passenger revenue.
The semi-annual franchise payment shall constitute an in lieu tax for the
following:
(a) All obligations for the use of city streets by busses;
that is, the Hey System Transit Lines would not be ob-
ligated to repair any street due to the use of a bus
upon that street.
(b) All obligations on account of present existing or ex-
pired franchises.
(c) The franchise payment is in lieu of all business license
taxes, but not in lieu of
(1) Sales and Use Tax.
(2) Taxes on tangible personal property.
(3) Ad valorem taxes on real and personal property.
(4) Any future tax levied upon the community gen-
erally, such as income tax or a pay roll tax.
6. ROUTES.
(a) Abandonment. In the event the company seeks to abandon all or any
portion of any existing route, it will first discuss the matter with the cities in-
volved, giving them at least twenty (20) days in which to make a decision. If no
agreement can be reached, then the hey System Transit -pines may submit the matter
to the lublic btilities Commission for determination, which determination shall be
binding on both parties.
(b) Extensions. In the event that the city desires an extension of an
existing route or the creation of a new route, the city shall first submit its re-
quest to the hey System Transit Lines for consideration and an answer will be giv-
en to the city within twenty (20) days. If the parties cannot agree, the matter
may be submitted to the Public Utilities Commission for determination, which deter-
mination shall be binding upon both parties.
In the event that the company desires an extension of an existing line
or the creation of a new line, the company agrees to obtain the consent of the city,
and unless the consent of the city is obtained, the hey System Transit Lines will
not file an application with the Public Utilities Co.-inission for said extension.
(c) Change or modification. In the event that the city desires the com-
pany to make a change in any existing route, the company will be requested to do so,
and if it is unwilling to file an application for such a change, the city may file
the application with the Public Utilities Commission and the decision of the Commis-
sion will be binding on both parties.
In the event that the company desires to make a change in any existing
route, the company agrees to obtain the consent of the city, and unless the consent
of the city is obtained, the Key System Transit Lines will not file an application
with the Public Utilities CoLmission for said change in route.
7. TYPES OFEU1111.2111T. In the event that the city desires the company
to operate a different type of equipment on any of its routes, the city shall first
submit its request to the hey System Transit Lines and an answer will be 6iven to
the city within twenty (20) days. If no agreement can be reached, then the City
may submit the matter to the Public Utilities Commission for determination, which
determination shall be binding on both parties.
In the event that the company desires or wishes to operate a different
type of equipment on any of its routes, it will first discuss the matter with the
city, giving the city at least twenty (20) days in which to make a decision. If
no agreement can be reached, then the Key System Transit Lines may submit the mat-
ter to the Public Utilities Commission for determination, which determination shall
be binding on both parties.
8. SERVICE. The Public Utilities Commission shall continue to have final
jurisdiction over all operations, including the determination as to the adequacy of
service; provided, however, that no change in the frequency of service on basic
schedules will be made without Eiving the cities at least two (2) weeks notice on
the proposed change.
9. BUS STOPS. The city shall agree to provide adequate curb space for
reasonable operation, pay for painting of the curb and enforce reservation thereof
for company use.
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10. DAMAUE TO STREETS. The Key System Transit Lines will not be obligated
to repair any streets alleged to be damaged by bus operation; provided, however, the
Key System at its awn cost and expense will repair, replace or restore specific dam-
age to public property (ordinary wear and tear excepted) resulting from the sole or
negligent operation by Key System's equipment.
11. OPTION TO 1UURCHASE3. The Key System Transit Lines is willing to grant
to the cities or to cities' agents an option to purchase its entire used and useful
operating plant, equipment and facilities at historical cost less historical deprec-
iation on depreciable assets at depreciation rates fixed by the Public Utilities
Commission, plus 10% of such depreciated cost.
12. DEFAULT. The company will agree to a forfeiture of the franchise in
the event that default thereunder is not cured within sixty (60) days after notice
of such default, except when the default occurs by reasons beyond the company's
control, such as strikes, acts of God, etc. The company will be deemed to be in
default under the terms of the franchise as to any line uponwhichthe company
fails to render adequate service or to adequately maintain facilities in the Judg-
ment of the Public Utilities Commission.
13. APPROVAL OF FRANCHISE. The franchise when drawn shall be subject
to the approval of the Public Utilities Commission.
REESOLVED, FURTHER,, that upon receipt of an application from the Key System
Transit Lines for a franchise based upon the terms and conditions herein approved,
this Council will proceed to negotiate a franchise with the said Key System Transit
lines.
I, the undersigned, hereby certify that the fore6oing Resolution was duly
and regularly introduced and adopted by the Council of the City of alameda in reg-
ular meeting assembled on the 1st day of larch, 1949, by the following vote, to wit:
(5). KTES: Councilmen Anderson, Jones, Osborn, Sweeney and President Branscheid,
NOES: None.
ABSENT: None.
III'T !,W'ITNESS li'dYEREOF, I have hereunto set my hand and affixed the official
seal of said City this 2nd day of Zarch, 1949.
J. F. CLAIR1K
(SEAL) Clerk ---o-fT---Zth-FeE-"-C7Tl-TtYy�-iofT-�TAITaimaie�7a�
I hereby certify that the foregoinE is a full, true and correct copy of
I TS j7�
"Resolution No. 3958, ADOPTING IN PRINCIPLE THE TERLS AND CGAD.TI0I, jpj� DE , ICH
THE CZY CgUNCIL WOUID hE WILLING TO 3RANT A FRANChISE TO KEY SYSTEM TRANSIT
LINESJ introduced and adopted by the Council on the lst day of i,!arch, 1949.