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Home My WebLink AboutOrdinance - 1554-1954 - Amending Section 9 Of Ordinance 654 - 04/30/1954..... Copy 6-3-54 to Lynn Andrews, Albert ]'ortenbe li ty A tty· 04--36-\~54 ORDINANCE NO. 1554 0 5 -J 3-\.5) s u AN ORDINANCE AMENDING SECTION 9 OF ORDINANCE NO. 6~4 ENTITLED, 11AN ORDINANCE TO BE ENTITLED AN ORDINANCE GRANT- ING TO J. A. FORTENBERRY AND RAY FARMER A FRANCHISE OVER THE STREETS, ALLEYS AND PUBLIC THOROUGHFARES OF THE CITY OF LUBBOCK, TEXAS, FOR OPERATING BUSSES; PROVIDING FOR A COM- PENSATION AND FIXING CHARGE FOR SAME; PROVIDING FOR EFFICIENCY OF SERVICE AND REASONABLE RATES: PROVIDING FOR FORFEITURE OF SAID FRANCHISE AND REPEALING ALL ORDINANCES OR PARTS OF ORDI- NANCES IN CONFUCT WITH THIS ORDINANCE AND PROVIDING FOR ACCEPTANCE OF THIS ORDINANCE WITHIN THIRTY DAYS FROM THE DATE OF FINAL PASSAGE, 11 SO AS TO PROVIDE AND PERMIT THE FRANCHISE HOLDER TO MAINTAIN A SELF-INSURANCE PROGRAM BY THE ESTAB- LISHMENT OF A RESERVE FUND IN A MINIMUM AMOUNT OF $10,000 FOR THE PAYM.ENT OF~l.. LIABILITY AND PROPERTY DAMAGE CLAIMS; REQUIRING EXCESS SURANCE COVERAGE FOR LIABILITY AND PROP- ERTY DAMAGE CLA OF $10, 000 TO $100, 000; PROVIDING FOR AUTO- MATIC TERMlNATION AND CANCELLATION OF FRANCHISE AT OPTION OF CITY COMMISSION ON FAILURE TO MEET THE REQUIREMENTS OF THIS ORDINANCE; RATIFYING AND CONFIRMING THE FRANClllSE GRANTED BY ORDINANCE NO. 654 AS AMENDED; PROVIDING FOR PUBLICATION AND THE EFFECTIVE DATE OF THIS·ORDINANCE. WHEREAS • the franchise holder, Lubbock Bus Company, under Ordinance No. 654 has made application to the City Commission of the City of Lubbock to amend its franchise so as to provide, as an alternate to the require- ment for minimum public liability and property damage insurance ' on each bus operated under said franchise, a self-insurance plan for the handling and pay .. m•~nt of all claims under $10, 000; and if said franchise is amended, the fran::his holder will pay all cost of publication of said amending ordinance, as required by the Charter; and, WHEREAS • the City Comrpission, having consi?ered s~aid application and plan for self-insurance, finds that 'it' would be in the public interest to amend Section 9 (Nine) of Ordinance No. 654 so as to establish a method of self-insurance with a requirement of excess coverage to be carried with a re-insurance company; N 0 W , T HERE F 0 R E, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LUBBOCK: SECTION 1. That Section 9 {Nine) of Ordinance No. 654 is hereby amended, and the same shall hereafter read as follows : 11SECTION 9. (a). The Grant~es are required and shall at all times keep each and every bus operated by them, under the terms of this franchise fully insured with a minimum of 'public liability insurance in the sum of Five Thousand Dollars ($5, 000) for any one (1) single personal injury to one (1) person, T~· Thot~sand Dollars ($1 0, 000) for personal injuries growing out of any one (1) single accident, and property damage insurance in the amount of Five Thousand Dollars ($5, 000) for any one (1) single accident, such insurance to be carried in force at all times with som.-~ reliable and thoroughly solvent insur- ance company authorized to do business in the State of Texas. 11(b). As .an alternate to the requirement stated in Section 9 (a) above, the Grantee may establish and maintain a self-insurance program, the requirements of which are as follows: -/ P. Z 111. Grantee shall establish an independent reserve fund in the 1 ' ' · amount of Ten Thou$and Dollars {$10, 000) for the payment of all liability claims on account of personal injuries or property damage, said fund to be deposited in any bank or savings and loan association in the City of Lubbock, Texas, said bank or savings and loan asso• ~ ~ ciation being hereinafter referred to as trustee. Said fund shall ....,..~ ~ consist of either cash or negotiable securities in the form of govern·-J3 ... 1 mentor municipal bonds or both such cash and securities. Said fund shall be at all times maintained at a minimum balance of Ten Thousand Dollars ($10, 009), and in the event it shall be reduced below t .. t sum~ the Grantee shall immediately reimburse said fund. The cash and/or securities forming a part or all of said fund shall be held by said trustee, and no payments shall ever be made out of ·said fund unless and unti~1 rante~'s inability to pay any judgment or claim out of its general f d and assets has been es.ta.bllshed to the satisfaction of the truste or until such payments are ordered by a court of co~petent jurisdiction. Any securities held by said trustee may be converted into cash by the duly authorized agent of the Grantee, and the cash obtained-from such securities deposited in said fund. "The trustee shall immediately notify the City Secretary of the City of Lubbock of any withdrawal from said fund which will reduce it below the minimum balance of Ten Thousand Dollars ($10, 000), and failure of Grantee to immediAtely reimburse said fund to a minimum balance of Ten Thousand Dollars ($10, 000) or to furnish the City Secretary with a certificate of insurance as required in Section 9 (a) shall, at the option of the City Commission, automati- cally terminate and cancel its franchise and all rights and equities thereby granted. 11Z. In addition to the requirement for the reserve funct, Grantee shall maintain at all times in its general operations an adeqn;te reserve fund for the payment of allliaoility claims, losses and legal expenses incidental to liability claims against Grantee growing out of operation UAder its franchise. u3. Grantee shall employ a reliable and experienced claims adjust- ing concern for the handling and processing of all liability and property damage claims against Grantee growing out of its operation under its franchise, and employ competent legal counsel for the defense of such claims and actions, and shall proQlptly pay all liability and property damage claims for which it may be found liable. "4. In addition to the reserve fund provided for in 9 (b) 1., Grantee shall provide and at all times keep each and every bus operated by it under the terms of this franchise fully insured with excess coverage. liability and property damage insurance in some reliable and thor- oughly solvent re-insurance company authorized to do business in the State of Texas, in amounts of Ten Thousand Dollars ($10, 000} to One Hundred Thousand Dollars {$100, 000}. ns. Grantee shall furnish and provide the City Secretary with a letter in writing from the trustee, stating that said trustee holds said independent reserve fund for the purposes herein mentioned and in accordance with the provisions of this ordinance. P. 3 "{c). Grantee shall fur~ish and provide the City Secretary with certifi- cates of insurance, signed by a ...duly authorized agent or ollic:er of the ,ins~ra_~c_e company, providing the insurance required of Grantee by any of the provisions of this Section, showing such insurance to be in force. 11 SECTION z. The franchise granted by O.rdinance No. 654 and as there- after am·ended and amended by this .ordinance, is hereby in all things ratified and confirmed and shall continue in force in accordance with the provisions thereof and. all amendments thereto, including this amendment. SECTION 3. This ordinance shall be published once a week for three (3) consecutive weeks in a newspaper published in this city, and Grantee shall pay all expense in connection with the publication of this ordinance. SECTION 4. This ordinance shall be and become effective upon the expiration !)f thirty (30) days from the date of the last publication hereof as herein required. AND IT IS SO ORDERED. On motion of Commissioner Carpenter , seconded by Commis- sioner ___ ;.._.....;:F;..;o;.;r~r..;e..;;'s~t~-, this Ordinance was passed on first reading, this the 30 day of Apr~ ·-•. 195.4, and ordered published upon the franchise holder's paying the publication fees, and upon written notice to the City Secre- tary that the franchise holder accepts the provisions .of this ordinance as an amendment to its franchise, by the followi:ag vote of the Com1nission: Commissioners voting "YEA11 : Carpenter, Forrest and 1-Jayor Tripp Commissioners voting "NAY": None - ----~&~~--------ATTES:M: Lave · we, Cit{tfcretary On motion of Commissioner _ _.c ... a_r.:;..p..;.e;;.;nt..,er.;,;.... ____ , seconded by Com.mis- sioner ____ T_h_o_rna_s ______ , this Ordinance was passed on second reading this the -l3 day of _·i-fa--=y~· ___ , 1954, by the following vote: C.ommissioners voting "YEA": Carpenter and Thomas· and Mayor Pro-tem Baker Commissioners voting "NAY 11 : None I. ,. u P. 4 On m otion of Commissioner _T~h=oma=s=-------, seconded by Commi s• sioner Carpenter , this Ordinance was passed on third reading this ------------------- day of May , 1954, by the following vote: _ _..;;,. ___ _ Commissioners voting "YEAn: Baker, Carpenter, Forrest, Thomas and Mayor Tripp Com.m issioners voting "NAY11 : None I Laven!a owe, Cityl!l tJ£.r y -Treasurer ATTES#.T. 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