HomeMy WebLinkAbout07854 ORD - 12/29/1965fi i 12/28/65
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AN ORDINANCE "
& AUTHORIZING AND DIRECTING ^'THE CITY MANAGER TO EXECUTE,
FOR AND ON BEHALF OF THE 00TY, A LEASE CONTRACT AGREE-
` A MENT WITH NUECES TRANSPORTATION COMPANY ACCORDING TO
THE .TERMS AND PROVISIONS OF THE - CONTRACT BETWEEN THE
CI,TY OF CORPUS CHRISTI ANW'THE,NUECES TRANSPORTATION
COMPANY, A COPY OF -WHICH AGREEMENT IS ATTACHED�AND '
INCORPORATED HEREIN AS FULLY AS IF SET*OUT.VERBATIM;
PROVIDING THAT NO FRANCHISE TAXES,WILL BE DUE UNDER
THE FRANCHISE WITH-THE CITY OF CORPUS CHRISTI FOR THE
DURATION OF THIS CONTRACT; AND DECLARING AN EMERGENCY.
BE IrT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ,CORPUS CHRISTI,
TEXAS:
SECTION'1. THE CITY MANAGER BE, AND HE IS HEREBY., AUTHORIZED AND
DIRECTED TO EXECUTE, FOR AND ON BEHALF OF THE CITY -OF CORPUS CHRISTI, A
SF -
LEASE CONTRACT AGREEMENT WITH NUECES TRANSPORTATION COMP.'ANYJ'A000RD NG:TO
THE TERMS AND PROVISIONS OF THE CONTRACT BETWEEN THE CITY OF CORPUS CHRISTI
AND THE NUECES TRANSPORTATION COMPANY,, A COPY OF WHICH AGREEMENT IS ATTACHED
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AND INCORPORATED HEREIN AS FULLY AS IF SET OUT VERBATIM. _ .A,;rq
SECTION 2. THERE IS HEREBY SPECIFICALLY PROVIDED THAT NO FRANCHISE--
TAXES,'WILL BE DUE AND PAYABLE BY NUECES TRANSPORTATION COMPANY UNDER THE
FRANCHISE WITH THE CITY OF CORPUS CHRISTI FOR THE DURATION OF THIS CONTRACT.
A '
SECTION 3. THE NECESSITY TO ENTER INTO THE AFORESAID LEASE
CONTRACT AGREEMENT IN ORDER TO PROVIDE CONTINUOUS BUS SERVICE FOR THE CITIZENS
_ OF THE CITY OF CORPUS CHRISTI CREATES A PUBLIC EMERGENCY AND AN IMPERATIVE
T,
PUBLIC NECESSITY REQUIRING THE SUSPENSION OF THE CHARTER RULE THAT NO ORDI-
NANCE OR RESOLUTION SHALL BE PASSED' FINALLY ON THE DATE OF ITS INTRODUCTION
AND TAKE EFFECT AND BE IN FULL FORCE AND EFFECT FROM AND A R ITS PASSAGE,
IT IS ACCORDINGLY SO ORDAINED, THIS THE _� DAY of
ATTEST:
MAYOR
_ THE CITY OF CORPUS CHRISTI, TEXAS
CITY SECRE A `-
APPROVED AS TO LEGAL FORM THIS / '
�%�DAY OF�v�/�atc��t�, 191°
SISTANT CITY AT 6 EY x
IV
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12-28-65
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THE STATE OF TEXAS
COUNTY OF NUSCES
THIS LEASE AGREEMENT is made and entered into by and
between Nueces Transportation Company, hereinafter referred to:-%
as Company, and the City of Corpus Christi, acting herein-.by
and through its duly authorized officers, hereinafter called
City, and for such,
W I T N E S S E T H
Purpose: The underlying purpose of this agreement is -�i-
to provide an interim operating arrangement between'Company and is
City, to prevent interruption•of bus service to the citizens of
Corpus Christi, pending determination of the feasibility of the
undertaking the operation of public transportation in the
future. Both parties hereto recognize the public necessity of
adequate public transportation:
The Term of this lease shall be for a maximum period
of,twelve (12) months, from and after•midnight, December 31,
'1965,,to midnight, December 31, 1966, unless the period of'time
be extended by mutual agreement of the parties,'provided, how-
ever, that either party reserves the right to cancel,this
agreement upon sixty (60) days written notice to the other
party.-
For the term of the lease- Company hereby leases and
lets unto City all of the assets of the Company, as reflected
by the balance sheet and financial statements of the Company,
as determined by an audit by a Certified Public Accountant as
of midnight, December 31, 1965, including but not limited to
real estate, office buildings, shops, inventories, buses, trucks
and rolling equipment, cash and accounts receivable, and the
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certificate for charter service and equipment used in such
service. The audit shall be at Company's expense,
Commencing at midnight,'December 31, 1965, City will
be entitled to all cash receipts from fares, accounts recPiv -
able, and receipts from charter service, which receipts shall
be Handled out of an operating fund to be established by City
and be applied to operating expenses as hereinafter provided. -
From and after midnight, December 31, 1965, City will'-
pay the usual and customary operating expenses, including
salaries, wages, gasoline, oils, repairs and other operating
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expenses, including payments as they accrue on.equipment notes,
and also including payment of any established claims which may
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arise during the term of the lease,,resulting from events'
occurring after December 31,,1965, and during the term of this
contract.
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IV.
It is agreed that, should City expend any sum of money
in excess of the cash on hand and actual'collection on accounts
receivable as of midnight, December 31, 1965, in retiring the
outstanding bills or operating expenses of Company, as ref2cted ,
by the books as of midnight,,December 313 1965, and which are
ordinarily payable during the fo''llowing month, in the event of
the purchase of the assets of Company by City, or any part of
them, upon any satisfactory figure, such excess amount of money
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so advanced by City will be credited against the agreed purchase
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price for such assets as are or may be purchased by the City.
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Should City not purchase any of the assets-of Company upon such
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agreed basis, such difference in moneys so advanced by City "' '
shall be repaid by Company to City upon termination of this '3
agreement, however determined, -and shall be secured by a
priority lien against the assets of Company and shall become •4
payable as of date of termination of this agreement, however' �!
the same maybe determined.' '
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V. _ t.
It is agreed that, upon the expiration of the lease
term, whether at the end of the 12 -month period or upon some
interim date within that year, brought about by the aforesaid'
written notice from one party.to the other of intention to ter- J i!
minate, the City will pay all operating expenses of every.'
character, excepting as herein reflected, to midnight of the f
date of the termination, and shall have the right to apply all
cash on hand as of that date, together with collections from
accounts receivable accrued as of that time, whether collected
or'not, to the payment of such operating expenses. If there be
a� surplus remaining, an amount 'up to the difference between
book depreciation for the. term of the contract as reflected by I,
the depreciation table shown on Exhibit 1, and payments on
equipment notes, such surplus shall be paid to Companyy Any
balance in excess of such difference between book depreciation
and equipment note payments shall 'remain property of City.
VI
•It is further agreed that City will pay Company during '
the lease term an•amount equivalent to ad valorem property taxes
assessed against the land or equipment and properties of Company.
The amount of'the ad valorem taxes assessed against the real
property of Company shall be prorated and be based upon such
taxes as were assessed for the yeax 1965, it being understood
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'that other assessments, such as gas. i
taxes, are considered
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be operating expenses.
VII.
It is' agreed that during the term of the lease an
Operations Committee, consisting of five (5) persons; will be
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lished three to be appointed,by;City and'two by the Pre...
sident of Company. This 'Committee shall have complete charge i
of the operation of Company„ under the supervision of the City.
Manager of City and'its City Council. •The members Com..
f.
o the
mittee will receive'no additional'compensation for seiving�on ?,,. ;
'Committee. i,
VIII.
_It is understood that all personnel presently em -'' ;;,r'
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ployed by Company on a permanent basis and available for work•'•
as•of midnight, December•311'1965, will be retained by City at,
present wages, salaries and fringe benefits,• as neatly as may
be practicable within the discretion of the Operations Committee',.,:.•
it being understood that it'will be the policy and purpose'of
'the Operations Committee to adjust operating expenses, including :,
•compensation to employees and /or management of employees, in
such manner as to bring the operational expense in line or equal =`
,,•� .• ' to operational income. ' The Operations Committee shall have 'full,
authority,to carry out any changes it deems necessary for the.,
sound management of the system, including changes in personnel,"
compensation and other benefits. It is understood that'during'
V.
the lease period, no salary or compensation shall b'6-paid to
E. C. Ekstrom nor to Mary Ann Gaines,'who are officers o£ the. ,''a' E,
Company, It is understood, however,'that E. C. Ekstrom shall;,.
have the right and privilege,.during the lease period, to the
` use of his personal office located upon the lease premises ,•and '
that he shall have free'access to all the books and records'of `
717"- F �_-
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Company, as well as access to the books and other data main-
tained by the Operations Committee and City, covering the
operation during the lease term., All employees retained shall
become temporary employees of City, shall be carried upon the
City's payroll and shall be paid by vouchers issued by the City
in due course of business, City to handle and deduct and remit,y
such withhplding and other taxes as are required by law.
Ix.
It is agreed that all insurance presently in effect.
.Upon Company's properties and operations will be maintained in
full force and effect, and that proper endorsements upon said-
.policies will be put in effect where possible making City an
additional insured thereunder during the continuance of the
lease term, provided that the Operations Committee shall have
the right to continue if possible, cancel, increase or modify,
,any policy and/or'add'the bus system to City insurance 'coverage,
at its sole discretion., In-this regard, City agrees to indemni-',,
fy Company from my claim arising from-events occurring after
-December 31, 1965,•and'during the term.of this contract. City
expressly does not obligate itself to assume any '.contract obli-
gations of Company, or liabilities resulting.from breach of any
Company contract.
X.
City agrees to maintain the buses and rolling equip-:'
ment, as well as the buildings and real property; in•the same
condition as they exist on midnight December 31, 1965, usual
wear and tear excepted. It is understood in,this connection
that maintenance of tires on the rolling equipment shall be
considered to be a part of the operating expense. City agrees
to compensate Company fully for any decrease in the value of
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inventories, including parts inventories and other assets ? ~
:leased hereunder, excluding buses, other vehicles, office and
i shop equipment and improvements,
so that the value o£ such assets
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when returned to Company at the termination of -this lease agree.. 4
' ment will be made to be identical to the value of such assets,`,`
excluding buses,'other vehicles, office and shop equipment and`.;'• +
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improvements as they existed at midnight, December 31,•1965,.
except that any assets,used.by City for the benefit of Company,.; 4
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as provided in Paragraph IV shall not be restored by City,';•;; >;';
XI.
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:'It is agreed that City, through its Operations Com..'1
mittee to be established as aforesaid, will set up what'shall :• ;r t::,,;' 'i'•
be designated as a Transit Fund or other fund, in-which all+
revenues'received will be deposited and from which operating
expenses will be paid, City will furnish to Company monthly,,.; „`
during the term of the lease 'a full statement, showing all re Ii;d,; "•, ::• ' i"
ceipts and disbursements for the period, it being,unders•tood,';
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that such statement will be',rendered within a reasonable 'time
-after the'end of such monthly period.
_ X11.
It is understood that during the term of this lease,`
whether for the full year or for the shorter term, as herein
above provided, City shall have the right to attempt to
Hy. purchase the assets of Company or such portion of them as it
may elect to purchase, if the terms of purchase can'be mutuall y.
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- agreed upon, it being understood in this connection that such'
j purchase may be subject'to a vote of the citizens'of Corpus _ iI;•
' Christi, and that it is the main object of this operating agree
4 ment to afford City time within which to study and undertake +i
' the acquisition -of Company in such manner'as may be feasible, i;'•
i and during such interim to enable bus service to be continued',
without interruption,
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XII I .
It is agreed that Company will pay and/or renew any,, r''^
outstanding notes of Company,'excluding equipment notes, and
interest', which may mature thereon during the lease term,., ands ;:•,`,'*, -, %,,.
that such notes and/or interest shall not be paid,by City as. '
part of the operating cost or, otherwise.
IN TESTIMONY WHEREOF,.Witness the hands and seals of
the parties hereto this
'day of December, -1965.
`NUECES TRANSPORTATION COMPANY "
ATTEST:
By
President �•
Secretary
CITY OF CORPUS CHRISTI•'
- ATTEST:
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City Secretary
;.
APPROVED AS TO LEGAL FORM
,.
this�,�Q da p of December,
1965
Assistant Ciiy�Atto 'ey
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CORPUS CHRISTI, TEXAS
DAY OF Q 19
TO THE MEMBERS OF THE CITY COUNCIL
CORPUS CHRISTI, TEXAS . t
FOR THE REASONS SET FORTH IN THE EMERGENCY CLAUSE OF THE FORE-
GOING ORDINANCE, A PUBLIC EMERGENCY AND - IMPERATIVE NECESSITY EXIST FOR `
THE SUSPENSION OF THE CHARTER RULE OR REQUIREMENT THAT NO ORDINANCE OR
RESOLUTION SHALL BE PASSED FINALLY ON THE DATE IT IS INTRODUCED, AND THAT
SUCH ORDINANCE OR RESOLUTION SHALL BE READ AT THREE MEETINGS OF THE CITY
COUNCIL; 1, THEREFORE, HEREBY REQUEST THAT YOU SUSPEND SAID CHARTER RULE
OR REQUIREMENT AND PASS THIS ORDINANCE FINALLY ON THE DATE IT IS INTRO-
DUCED, OR AT THE PRESENT MEETING OF THE CITY COUNCIL.
RESPECTFULLY,
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
v`
THE CHARTER RULE WAS SUSPENDED B Y'THE FOLLOWING VOTE:
DR. MOVER FURMAN
JACK BLACKMON
,f• * PATRICK J. DUNNE
DR. P. JIMENEZ, JR.
KEN MCDANIEL
RONNIE SIZEMORE
WM. H. WALLACE
4 THE ABOVE ORDINANCE WAS PASSED BY THE FOLLOWING VOTE:
DR. MCIVER FURMAN
JACK BLACKMON
PATRICK J. DUNNE
F
DR. P. JIMENEZ, JR.
3 KEN MCDANIEL ,
RONNIE SIZEMORE
WM. H. WALLACE
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