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18 Franchise CITY COUNCIL AGENDA ITEM BRIEFING SHEET Agenda Item No.: Submittal Date: Originating Department: Presented By: 03/18/09 Janice Ellis 18. Council Date: City Clerk 03/23/09 RECOMMENDED MOTION: of an ranchise Move to approve an ordinance granting Lone Star Company an ParisXtfor lthe purpose tof t ansporting use the public streets, alleys and highways of the City of -passengers. POLICY ISSUE(S): Franchise BACKGROUND: Lone Star Cab Company is one of three taxi cab services that has had a taxicab fr n tise City of mberfof years. The franchise allows them to use the public streets, alleys and highways the purpose of transporting passengers. Lone Star Cab Company has paid their 2009 franchise fees and has filed a current certificate of insurance with the City Clerk. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: Ordinance ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense Is ❑ Department Report ❑ Resolution Budgeted Amt. $ ❑ Presentation ® Ordinance yTD Actual $ ❑ Public Hearing ❑ Other Acct. Name Acct. Number FISCAL NOTES: REVIEWED AND APPROVED BY: EMS/IT ❑ Finance ❑ Fire ® Administration ® City Clerk ❑ Community Development ❑ ❑ Municipal Court ® Legal ❑ Library ❑ Police ❑ Eng./Public Works ❑ Utilities Revised 2/04/08 City of Paris w 000() 6; attorney\ordwork\current\Franchise - Lone Star Cab Co. - David Th mPDRAFT son 2009 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS TEXA GRANTING TO DAVID THOMPSON, DBA LONE STAR CAB COMPANY, N AN EXTENSION OF AN EXISTING FRANCHISE TO USE THE PUBLIC STREETS, ALLEYS, AND HIGHWAYS OF THE CITY OF PARIS FOR THE PURPOSE TRANSPORTING PASSENGERS FOR HIRE IN MOT OR VEHICLES FOR A PERIOD OF ONE (1) YEAR, BEGINNING JANUARY 11, 2009 AND ENDING JANUARY 10, 2010, UPON THE TERMS AND CONDITIONS HEREINAFTER PRESCRIBED; THE PROVIDING FOR THE REGULATION OF SAID BUSINESS; PROVIDING FOR THE PAYMENT OF A FRANCHISE FEE FOR SUCH PRIVILEGE AND USE OF SUCH STREETS, ALLEYS, AND HIGHWAYS; PROVIDING FOR THE TERMINATION OF SUCH GRANT UPON SPECIFIED CONDITIONS; PROVIDING FOR TAXICAB STANDS FOR USE OF SAID GRANTEE; PROVIDING FOR MINIMUM LIABILITY INSURANCE REQUIRED FOR GRANTEE; PROVIDING FOR THE SUPERVISION OF SAID BUSINESS AND INSPECTION OF ITS VEHICULAR EQUIPMENT BY THE OFFICIALS OF THE CITY OF PARIS; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS; Section 1. That there is hereby granted to David Thompson, dba Lone Company, hereinafter called Grantee, an extension of an existing right, rivile Star Cab for a period of one (1) year, beginning P ge, and franchise January 11, 2009 and ending January, 10 2010, to operate a taxicab service in the City of Paris and on the streets, alleys, and public was wit limits of said city for the transportation of passengers for hire. The Gran hin the city tees he maintain their principal office and place of business within the corporate limits of t rein shall Paris, where the headquarters of said business shall be maintained. he City of Section 2. That the right, privilege, and grant herein contained shall not be transferred or assigned by Grantees without first obtaining the formal action and written consent of th e City Council of the City of Paris, and any attempted assignment or transfer of sai d rights and privileges by the Grantees without first having had and obtained such consent and permission from the City Council of the City of Paris shall operate, ipso facto, as a termination privileges, and grant herein contained. of the rights, Section 3. That the taxicabs operated or maintained under this franchise shall be for the purpose of the transportation of passengers and the personal luggage of such used passengers. Section 4. That all automobiles or vehicles used in connection with this taxicab service shall be maintained and operated in accordance with the laws of the State of Texas and ordinances of the City of Paris, and any amendments thereto, or either of them, re y regulating the maintenance and operation of motor vehicles upon streets or highwa slating to or Pagel of 6 • 000016 ; Section 5. That the City of Paris, in granting this franchise, fully retains the rights, privileges, and immunities that it now has under the law to full Y use us and reserves all the public streets, alleys, and right-of--ways within the City, ' Patrol and police shall right- in in no ways way for any interfere other with the public utility rights of the City is and the granting this franchise of- or public s to fully use said streets, alleys, and interfere with the City's right to impro a or maintain uany streets, salle this franchise in any way ways City of Paris, and the rights of the Grantees herein to use said streets ' or right at all i the subservient to the right of the City Council of the City of Paris to fully exercise its rights over said streets, alleys, and public ways. shall, at all times , be or control Section 6. That the Grantees shall, prior to the effective date of agreement, pay to the City of Paris, at the office of the City Clerk of the City of P franchise Street S.E., Paris, Texas, in lawful money of the United States a sum equal to $50.00 this per vehicle used in the operation of said taxicab business. This payment ~ aris, 150 1st payment due the City of Paris and failure to pay said franchise eellwheneduet the franchise result in forfeiture of this taxicab franchise. No reimbursements will be made to Grantee ~f Grantee reduces the number of taxicabs during the franchise year. Section 7. That the City of Paris expressly reserves the right to modi change, or eliminate any of the provisions of this franchise, during the life of following purposes, to-wit: f1'. amend, alter, the same, for the (1) To eliminate or delete from the same such conditions as then rove obsolete or impractical; and, p (2) To impose such additional conditions or requirements upon the Grantees as may be deemed necessary and reasonable, such condition or requirements to be those as may be deemed necessary for the purpose of insurin adequate service to the public or protecting the health, safety and general welfare of the citizens of Paris. g Section. 8. That, notwithstanding what may be said in any other portion instrument with reference to the termination hereof, this right is rante of this provisions of Article I, Sections 17 and 26 of the Constitution of the State of Texas al the state laws, City Charter provisions, and any other laws that may be granted enacted in d the subject future to by the Texas Legislature, or amendments to the Constitution and the Charter of all applicable Furthermore, the City Council of the City of Paris reserves the absolute ri htthe City of Paris. hearing, which said notice shall be given to the Grantees not less than ten 10) ' days upon notice and hearing, to absolutely terminate this grant and franchise for any violation before such provisions of this ordinance. of the terms and Section 9. That it shall hereafter be unlawful for the Grantees, their a employees, while operating any automobile for hire within the City of Paris, to cruis gents or shall consist of seeking, searching, or soliciting employment while operating an t Cruising g n automobile for Page 2 of 6 ~)0006iS hire by repeatedly and persistently driving such automobile for hire to of the city of Paris and offering accommodations thereof to pos d fro pective on the public whether by signal, word of mouth, or by carrying a sign with the word "Vac passengers, other word of similar import, or otherwise, or in any manner whatsoever operating said upon the public streets of the city of Paris for the ur o ant" thereon, or some vehicle automobile for hire upon the public streets whitepurpose unoccupied bicamg passengers, or driving an fixed destination thereof. Y passenger without having a Section 10. That Grantees shall, at all times during the effective period of keep and maintain, in full force and effect, a policy or policies, of auto this franchise, mobile liability insurance coverage which fully meets or exceeds the State of Texas minimum financial responsibility requirements for operators of motor vehicles in the state. he provide coverage for bodily injury to passengers and/or p oper y insurance policy shall also the City of Paris, its elected officials, officers and employees from and damage and against shall indemnify damages, personal injuries, or property damages sustained as a result of t any and all of any motor vehicle by the Grantees, their agents or employees, and shall p negligent operation thereon when due. Said policy shall also list the City of Paris, its elect pay all premiums due employees as additional insured under the required coverage. cers and It is ed expressly officials, officers such insurance policy, or policies, shall, and must, be written and issued by a re provided that underwriter, or underwriters, authorized to do business in the State of Texas subject approval by the City Attorney of the City of Paris; and the Grantees, or theince Y reputable insurance shall deliver a copy of any such policies to the City Clerk of the Cir 1 of Paris, carrier o or carriers, Paris, Texas 75460, or furnish to said City Clerk a current letter or c rtificat 150 1st Street S.E., or companies, evidencing the fact that such insurance is in full force and effect at all times the effective period of this franchise. All such e from such company, will be notified of cancellation or of any material policies to shallthe pof ides written fParig at so least that the City thirtyty o(30) days prior to the effective date of such cancellation or amendment. Notice shall be by return receipt requested, addressed to the City of Paris at the followin addres certified mail, City of Paris, P. 0. Box 9037, Paris, Texas 75461-9037, g s City Clerk, The Grantees shall promptly respond to all claims filed against them for in' to property arising from the operator of their taxi-cabs; and well and truly a Jury or damage judgment creditor who has been injured through the negligent operation of any directly h every the Grantees, their agents or employees, or whose property has been damaged, motor vehicle by amounts, of money that shall have been awarded by final judgment of any court tnof amount, or jurisdiction against such Grantees on account of any such injury or dama e. competent g Section 11. That in the event Grantee fails to provide the City with a curren of Insurance with appropriate insurance coverage for all vehicles operated u Certificate nder t this Franchise Ordinance and/or Grantee fails to fully discharge any claim for dama es es judgment of a court of competent jurisdiction within six g tablished by final ty (60) days after the established, such failure shall constitute grounds for termination of ths franchise.me has been so Section 12. That every taxicab operated by Grantees under this franchise times, have painted, or otherwise impressed upon the front doors thereof, ea shall, all easily visibles si gns Page 3 of 6 • 0()0(16') bearing proper identification of the company operating under this franchise. All such vehicles shall be owned by and registered in the names of the Grantees, and no other vehicle may be used or operated by Grantee on the streets of the City of Paris under this Franchise ordinance. Each of such vehicles shall be registered with the City Clerk of the City of Paris by motor vehicle in numerical order, beginning with the number 1, which number shall, at all times, be displayed at some convenient location on both sides of said vehicles. Section 13. That in accepting this Franchise, Grantee agrees that they shall not discriminate against or refuse taxicab service to any person on the or national origin. Any proven violation of this section of thebFranch seemay result dinsan immediate suspension or forfeiture of this taxicab franchise. Section 14. That it shall be the duty of the City Council of the City of Paris, by and through its City Manager, to enforce the provisions of this ordinance and all applicable regulations, which, when approved by the City Council, shall become binding upon the Grantees herein. Among other things, the City Council shall, from time to time during the term of this franchise, have the power and authority to promulgate effective regulations concerning the following, to-wit: (1) To make reasonable orders respecting character, extent, quality, safety and standard of service of Grantees to be provided under this franchise; (2) To fix such rates for service to the public as are not in conflict with the express provisions hereof and as will provide for Grantees a reasonable and fair rate of return upon the fair value of the property used and useable in connection with the rendering of service to the public under this franchise; and, (3) To make such other rules and regulations as may be reasonably necessary to facilitate clean and professional taxicab service to be rendered to the public under this franchise, any such rules and regulations, when adopted, to be binding upon the Grantees herein. Section 15. That motor vehicles operated by Grantees under this franchise shall be known as "taxicabs" and, when not in use in the exercise of the privileges granted herein, shall be stationed or parked at the headquarters of the Grantees, which headquarters shall be located on private property. Section 16. That the word "taxicab," as used in this ordinance, shall mean any passenger vehicle with not more than three rows of seats and a normal capacity not in excess of seven passengers which is not operated over a fixed route or routes and which is engaged for the purpose of carrying a passenger, or passengers, by special trips to and from specified addresses as designated by any such passenger or passengers. Section 17. That the Grantees shall promptly pay all lawful ad valorem taxes and such other levies and assessments, if any, that may be lawfully imposed upon them. Failure to pay Page 4 of 6 any of such charges, or either of them, shall be deemed a breach of the privilege granted herein, and the City, upon the happening of such event, may declare the rights of the Grantees hereunder forfeited for such breach. Section 18. This grant is made upon the express condition that the non-exercise of the power to regulate rates and charges which the Grantees may charge to the public in the operation of their business shall never be construed as an acquiescence or recognition of the justness or correctness of said Grantees' established rate, and that, so long as the City Council of the City of Paris does not exercise its legislative and governmental power to fix and regulate the rates that the Grantees shall charge to the public, the question of property values used and useful in the rendering of the service prior to rate regulation shall never stop the City from determining the real or actual value of property used or useful in rendering such service. If, and when, the City Council or other governing body shall exercise the power to fix the rates to be charged for such service in the City of Paris, no allowance in the way of said rate shall be made as compensation for any property used or consumed in rendering the service by the Grantees for such service. If, and when, the City Council decides to regulate rates, then, at such time, the Council will fully exercise its rate regulatory power under the provisions of law applicable thereto, and the failure to provide under this ordinance the machinery for the administration, legislative, or executive control of such matter shall not preclude the Council from fully exercising that power and providing suitable provisions to enforce such power. Section 19. That any unwarranted and intentional neglect, failure, or refusal of the Grantees to comply with any of the conditions and stipulations contained in this franchise shall thereupon immediately, ipso facto, effect a forfeiture hereof, and the City Council may, thereupon, declare this franchise forfeited and may exclude the Grantees from further use of the streets of the city under this franchise, and the Grantees shall thereupon and immediately surrender all rights in and to the same, and this franchise shall become null and void and of no effect. Section 20. That the grant of this franchise shall be and is hereby expressly conditioned upon the right of the City Council to adopt an ordinance or ordinances regulating the activities authorized herein, and upon adoption of said ordinance or ordinances, the City Council reserves the right at its discretion to supersede this ordinance with the requirements of said regulatory ordinance or ordinances, even if the term of this ordinance has not expired. Section 21. That within ten (10) days after the passage of this ordinance by the City Council, the Grantees herein shall file with the City Clerk, in writing, the acceptance of the terms and provisions of this grant. Section 22. That this taxicab franchise ordinance was introduced, read, and passed on first reading on February 9, 2009, at a regular meeting of the City Council of the City of Paris; read and passed on second reading on March 9, 2009, at a regular meeting of the City Council of the City of Paris; and, read and passed on third and final reading on March 23, 2009, at a regular meeting of the City Council of the City of Paris, the same being three (3) separate regular meetings of the City Council of the City of Paris, and the last reading being not less than thirty Page 5 of 6 (30) days from the first. Section 23. That all provisions of the ordinances of the City of Paris, Texas in conflict with the provisions of this ordinance are hereby repealed, and all other provisions of the ordinances of the City of Paris not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 24. That, should it be determined that any clause, condition, or covenant of this franchise is, for any reason, illegal or unenforceable, such clause, condition, or covenant shall be disregarded, and the existence of the same shall not affect the remaining clauses, conditions, or covenants of this franchise. Section 25. That this ordinance shall become effective in accordance with the terms and provisions of the City Charter of the City of Paris, and shall be effective for a period of time as stated herein. PASSED AND ADOPTED on third and final reading this 23rd day of March, 2009. ATTEST: Jesse James Freelen, Mayor Janice Ellis, City Clerk APPROVED AS TO FORM: W. Kent McIlyar, City Attorney Page 6 of 6