CHAPTER 4-12 BUS FRANCHISES

All applications for a franchise shall be addressed to the City Council and filed with the City Clerk.

Section 4-12.06 Investigation and Council consideration.

All persons desiring to operate a bus or buses in this City shall make application for a license, which application shall contain the following information:

(1)

Name, business address, residence address, business telephone number, and residence telephone number of the applicant;

(2)

The number of buses owned and proposed to be operated on the date of the application, if any;

(3)

The number of buses for which such a license is desired;

(4)

The make, type, year of manufacture and rated capacity of each bus for which a certificate is desired, or if the buses have not been procured, the anticipated data with regard thereto;

(5)

The description of the proposed color scheme, insignia, trade style and any other distinguishing characteristics of the proposed buses;

(6)

A description of the proposed routes, stops, schedules of operation and terminals of routes desired by the applicant;

(7)

The schedule of fares proposed to be charged;

(8)

A general statement that the applicant has complied or will comply prior to the date of the commencement of his operation with all of the provisions of this chapter, including conditions imposed by the City Manager by the authority vested in him under the terms of this chapter;

(9)

In the case of an applicant who is operating an intercity bus service anywhere in the State, a statement informing the Council that the applicant is so doing, and affirming that the applicant has applied for a certificate of public convenience and necessity from the Public Utilities Commission of the State to operate an intercity bus system in Santa Maria, and setting forth the date of the application and the date of hearing thereon;

(10)

A statement under penalty of perjury in the proper form prescribed by the laws of the State, that the statements made in the application are true, together with the date of the application and the signature of the applicant subscribed thereto;

(11)

A statement agreeing to provide such additional information as the City Manager may require; and

(12)

A list of all persons to be permitted by the applicant, if the franchise is granted to him, to drive a bus upon any street in the City. The list shall include the name and address of all such persons, indicate the type of operator's license which such person holds, together with the number of that license, and the statement of the applicant that upon request by the City Manager all persons so listed will appear at the Police Department of the City for fingerprinting and other identification procedures, and that any persons not so listed will be so identified to the City Manager and will appear at the Police Department for the same purpose prior to any such person being permitted to drive a bus on the streets of the City.

(Prior Code § 14B-5)

Upon receipt of an application for a franchise for the operation of a bus line in the City, the City Clerk shall refer the same to the City Manager, who shall investigate the application, including but not limited to the following matters, and make recommendations thereon to the City Council:

(1)

The financial responsibility and experience of the applicant;

(2)

The character and fitness of the applicant;

(3)

The probable effect of granting the application with the routes, schedules and stops set forth therein upon traffic and parking conditions and upon public safety; and

(4)

The number, kind, color, markings and trade style of proposed buses in relation to any bus lines already in operation.

Upon completion of the City Manager's report he shall forward the application to the City Council with his recommendations as to the location of the routes, the schedules which the bus line should be required to maintain, and the location where the bus stops should be permitted, and the effect on the traffic in the City in general. If any are found to be objectionable as not in the best interests of the community or of the health, safety or welfare of its citizens, and under applicable law the applicant is required to obtain a certificate of convenience and necessity for the operation of an intracity bus system within the City of Santa Maria, the City Attorney or other person specially designated thereto by the Council, upon order of the Council, shall appear before the Public Utilities Commission at the time of hearing for the applicant's certificate of public convenience and necessity as set forth in his application, and request the Commission's consideration of the needs of the City.

Upon receipt of the report on the application from the City Manager, the City Council will take steps, in accordance with the procedures set forth in this chapter, to deny or grant such franchise. If, in due course, the issuance of the franchise is approved, the Council shall determine such terms and conditions in addition to those required by this chapter, upon which the franchise is to be issued, such terms and conditions not to conflict with any applicable regulations of the Public Utilities Commission, but to be limited to those matters within the City's lawful powers, the terms and conditions to be embodied in a resolution passed by the Council at the time it approves the grant of the franchise.

(Prior Code § 14B-6)

Section 4-12.07 Call for bids.

Applications for a franchise to operate a bus system may be received and steps initiated with regard thereto, prior to the effective date of the ordinance codified in this chapter, but there shall be no opening of bids or grant of franchise prior to the effective date of the ordinance codified in this chapter.

Following the report of the City Manager upon the application, as set forth in Section 4-12.06, the City Clerk upon the direction of the City Council shall prepare a notice stating the intention of the Council to grant a franchise to the applicant, calling for bids for a franchise under this chapter to be filed with the City Clerk on or before a date certain to be determined by the City Council. The date shall in no event be less than 20 days, nor more than 30 days following the completion of the publication, as required in this chapter. The clerk shall take such additional steps necessary to advertise for such bids as may be requested by the City Council in its discretion, in order to give the widest publicity thereto.

(Prior Code § 14B-7)

Section 4-12.08 Bid specifications.

All bids shall include all information required in this chapter in the case of an application, shall state that the bid is made in accordance with and subject to all the terms and conditions of this chapter, and that the applicant will meet all the terms and conditions of any resolution granting a franchise under this chapter.

All bids shall be cash bids.

(Prior Code § 14B-7(a), (b))

Section 4-12.09 Public hearing.

The public hearing shall be held with regard to the bids called for under Section 4-12.07, and notice of the hearing, setting the date thereof to be the time of opening of the bids and consideration thereof, shall be included in the notice described in Section 4-12.07 (b), to be published by the City Clerk calling for bids, and shall be published in a newspaper of general circulation published within the City not less than once a day for 10 successive days, excluding Sundays, giving the time and place of such public hearing and opening of bids, which shall be not less than 20, nor more than 30 days following the last date of such publication.

(Prior Code § 14B-7(d))

Section 4-12.10 Award to bidder.

The City Council upon the date set forth in the notice published by the clerk shall open all bids and shall award the same to the highest responsible bidder. In determining such responsibility, the City Council may give consideration to, but shall not necessarily be limited to, the following factors: The financial responsibility, experience and past record of the applicant, as well as the degree and extent of the services proposed, having regard for the maximum service for the benefit of the residents of the City.

Section 4-12.11 Acceptance: Transfer or assignment.

The Council, in granting a franchise to the highest responsible bidder, as provided in this chapter, shall do so by resolution, and shall in such resolution provide such additional terms and conditions as it deems reasonable and necessary in the interest of the public health, safety and welfare.

(Prior Code § 14B-7(c), (e))

A franchise granted, as provided in this chapter, shall not be effective until the grantee files his written acceptance thereof with the City Clerk, which acceptance must be so filed within 30 days after the date of the resolution. By such acceptance the grantee shall be bound by, and subject to, all of the provisions of this chapter, and of the resolution granting the franchise. Any such franchise shall be a privilege to be held in personal trust by the original grantee. It shall in no event be sold, transferred, leased, assigned or disposed of by any means whatever without the prior consent of the Council expressed by resolution, and then only under such conditions as may be in the resolution prescribed. Application for approval of a transfer or assignment by any means of the franchise shall be by written application addressed to the City Council and filed with the City Clerk, and the proposed transferee or assignee shall provide the City Manager with such information as he may require in order to report to the City Council as to the desirability of approving such transfer or assignment.

(Prior Code § 14B-7(f))

Section 4-12.12 Open bidding at hearing.

At the public hearing at the time of the opening of the bids, any responsible person present or represented may bid for the franchise a sum not less than 10% above the highest sealed bid therefor, and the bids so made may be raised not less than 10% by any other responsible bidder, and the bidding may so continue until the franchise is finally awarded to the highest responsible bidder therefor in lawful money of the United States.

(Prior Code § 14B-7(g))

Section 4-12.13 Bid deposit.

Each sealed bid shall be accompanied with cash or a certified check payable to the treasurer of the City for the full amount of the bid, and no sealed bid shall be considered unless the cash or check is enclosed therewith. In the case of a bid made at a hearing, above the amount of the highest sealed bid, the successful bidder shall deposit at least 10% of the amount of his bid with the City Clerk during the hearing, and before the franchise may be awarded to him. If he fails to make the deposit immediately, bid shall be void and the franchise shall then and there be awarded to the second highest bidder, subject to the same conditions as to deposit. The successful bidder must thereafter deposit with the City Clerk within not more than 24 hours of the acceptance of his bid, the remaining 90% of the amount thereof. If he fails to do so, the award to him of the franchise shall be set aside and regarded as void. The 10% deposit made by him shall be forfeited and no further proceedings for award of the franchise shall be had unless it is again re-advertised and offered for bid in the manner provided in this chapter.

(Prior Code § 14B-7(h))

Section 4-12.14 Scope: Commencing service.

Any franchise granted pursuant to the provisions of this chapter shall permit the grantees to engage in the business of operating a bus system on the City streets in the City for a period of 20 years, in accordance with the application made by the franchise as to the number of buses, routes, frequency of service and rates to be charged therefor, and to maintain at the places designated in the application bus stops permitting the stopping and starting of buses for the purpose of loading and unloading passengers, which shall be suitably marked and closed to other parking during the hours of bus operation. Additional buses, routes, hours and frequency of service, and bus stops, may be provided by the franchisee upon written approval thereof by the City Manager, and subject to such conditions as the City Manager may prescribe in granting such approval. Reduction or elimination of the numbers of buses, hours of operation, routes or bus stops may not be made without the approval of the City Council expressed by resolution, upon written application by the franchisee, which application shall be made not less than 20 days prior to such approval.

The grantee shall commence service with the full number of buses, routes, hours of service and bus stops set forth in his application within not more than 30 days following his written acceptance of the franchise as provided in this chapter.

(Prior Code § 14B-8)

Section 4-12.15 Revocation.

Any franchise granted under the terms of this chapter may be revoked by the City Council for violation of any of the terms of this chapter, or for any failure on the part of the franchisee to maintain all of the service, including but not limited to the numbers of buses, hours of operation, routes, maintenance of bus stops or changes in the rate schedule, and any and all other terms or conditions of this chapter, the resolution granting the franchise or subsequent orders, terms or conditions established by the Council or the City Manager under the terms of this chapter.

Section 4-12.18 Change of routes or stops.

Any franchise granted under this chapter may be revoked upon the grounds stated in subsection (a) of this section, upon not less than 20 days' written notice, mailed to the franchisee at the business address stated by him in his application, ordering him to appear and show cause on a date certain, at a hearing before the Council, why the franchise should not be revoked.

(Prior Code § 14B-9(a))

Section 4-12.16 No recourse to City.

The grantee shall have no recourse whatsoever against the City for any loss, cost, expense or damage arising out of any provision or requirement of this chapter, the resolution granting the franchise, or the enforcement of any of the terms or conditions thereof or made pursuant thereto.

(Prior Code § 14B-9(b))

Section 4-12.17 Public costs.

The franchisee shall pay to the City on demand the cost of all repairs to public property made necessary by any of its operations, in addition to such other costs which the franchisee may be required to pay under the terms and conditions of this chapter or the resolution granting the franchise.

(Prior Code § 14B-9(c))

In any case when the public health, safety or welfare require, the franchisee may be required by the City Manager to change routes or the location of bus stops, and to pay any cost which may be involved therein within 10 days after the receipt of such written request from the City Manager. The franchisee may appeal from the request in writing to the City Council, which may in its discretion rescind the request, modify the same or uphold the request. In this regard the decision of the City Council shall be final and conclusive.

(Prior Code § 14B-9(d))

Section 4-12.19 Free service to mail carriers.

The franchisee shall permit and allow mail carriers in the employ of the United States Government, at all times while engaged in the actual discharge of their duties, to ride on the buses of the bus system so enfranchised, without paying any sum of money whatever, for fare or otherwise.

(Prior Code § 14B-9(e))

Section 4-12.20 Drivers and operation.

The owner or driver of a bus for hire must obey all laws of the state and ordinances of this City dealing with motor vehicles, and comply with all regulations of the Public Utilities Commission.

The operator of a bus for hire must report immediately to the Chief of Police any lost or mislaid property found by him in such vehicle.

All drivers of buses must wear a distinctive cap, suitable to the occupation of a driver of a bus, that wearing apparel to be uniform in color, make and design for all of the drivers employed by a single owner.

(d)

Every driver of a bus for hire must wear a numbered badge attached to the cap.

(Prior Code § 14B-10(a, b, d, e))

Section 4-12.21 Adherence to route.

The driver of any bus shall not deviate from the route along which a certificate to operate the same has been granted, or stop and turn back before reaching the terminus of the route, except that if the regular traffic over the street on which the route of the bus exists has been diverted or detoured by proper authority due to construction or maintenance work on the street, or any other lawful reason, in which event the driver of the bus traveling on the route may follow the established detour route; provided, however, that any bus may deviate not more than five blocks from the route to a church or school, or to any public attraction or demonstration; provided further, that the City Council may, upon application, where it appears necessary, issue a temporary authority to deviate from the established route. In any case of deviation from its authorized route, except pursuant to diversion or detour by proper authority, a bus must return at once to the point of diversion and proceed from that point in the same direction in which it was going before such deviation, until a terminus of the route is reached.

No driver of a bus shall stop for the purpose of picking up or discharging passengers at points along the established route for the bus other than at the regularly designated stops specified in his application as the same was finally approved at the time of granting the franchise.

(Prior Code § 14B-10(f, g))

Section 4-12.22 Refusal to pay fare.

It is unlawful for any person to refuse to pay the lawful charge for transportation in a bus for hire after employing or hiring the same.

(Prior Code § 14B-10(c))

Section 4-12.23 Buses.

Every bus shall be painted in the colors and according to the trade style specified in the license issued to the owner.

Every bus shall have displayed within full view of all passengers, a conspicuous card indicating the name and badge number of the driver.

Every bus shall have displayed a sign within conspicuous view of the passengers therein, showing the streets traversed by the bus, the termini of its route, the route number and the amount of the charge for riding therein.

(Prior Code § 14B-11)

Section 4-12.24 Franchise fee. [1]

Any person, firm, association or corporation carrying on the business of bus service in the City shall pay an annual franchise fee equal to 2% of the total gross annual receipts of the grantee arising from the operation of such bus service by the grantee within the City.

The grantee shall file with the City Clerk, within three months after the expiration of the first calendar or fiscal year as required in the resolution granting the franchise to the grantee, and within three months after the expiration of each and every calendar or fiscal year thereafter, a financial statement prepared by a Certified Public Accountant, showing in detail the total gross receipts of such grantee during the preceding calendar or fiscal year, for all bus service rendered within the City. It shall be the duty of the grantee, its successors or assigns, to pay to the City within 15 days after the time for filing of such statement, in lawful money of the United States, the specified percentage of its gross receipts for the calendar or fiscal year or any fractional part of the calendar or fiscal year covered by such statement. Any neglect, omission or refusal of the grantee to file such verified statement, or to pay the percentage at the times or in the manner provided in this section, shall be grounds for forfeiture of the franchise and all rights thereunder.

Section 4-12.25 Ownership of equipment immaterial.

The right is reserved to the City to audit and recompute any and all amounts payable under this chapter, and no acceptance of any payment shall be construed as a release or as an accord and satisfaction of any claim the City may have for further or additional sums payable under this chapter or for the performance of any other obligation under this chapter. The bond required in this chapter shall secure the payment of the franchise fee.

(Prior Code § 14B-12(a))

[1]

Editor's Note: Section 4-12.24 was amended by request of the City Attorney.

Performance of the duty of rendering compensation under any franchise granted pursuant to this chapter and of any or every other obligation under the franchise shall not be excused by the fact that the grantee may utilize under any arrangement whatsoever any buses, equipment or facilities required by it in maintaining its services and operations from any other person or entity. The grantee, by accepting the franchise as provided in this chapter, agrees that its obligations under the franchise, including the day of payment of compensation thereunder, shall apply to all such buses, equipment and facilities so utilized, whether owned by it or not, whenever such buses, equipment or facilities constitute all or any part of the bus system operated within the City by the grantee, including any buses, equipment and facilities installed or maintained outside the City, but which form a part of the grantee's bus system operation within the City, including but not limited to such facilities as maintenance shops or standby equipment.

(Prior Code § 14B-12(b))

Section 4-12.26 Business license.

The gross receipts fee paid by the franchisee in accordance with the provisions of Section 4-12.24 is a payment for the privilege of operating a bus system on the City streets and is not a business license fee. The franchisee must therefore pay a business license fee in accordance with the terms of Chapter 4-1; provided, however, that after the first five years of operation the payment of the franchise fee by the applicant shall be regarded as a sufficient payment in lieu of a business license fee, and thereafter no business license fee shall be charged the applicant for operating the business in accordance with the franchise granted under this chapter.

(Prior Code § 14B-13)

Section 4-12.27 Bond.

The grantee shall, concurrently with the acceptance of any franchise granted under this chapter, file with the City Clerk, and at all times thereafter maintain in full force and effect for the term of the franchise, at its sole expense, a corporate surety bond, issued by a surety licensed to issue such bonds in this state, and in a form to be approved by the City Attorney, in an amount approved by the Council, renewable annually and conditioned upon the faithful performance by the grantee of all obligations imposed by such franchise and this chapter and all applicable laws, and specifically including the payment of the annual franchise fees and business license fees as provided in this chapter.

Section 4-12.28 Indemnification of City: Insurance.

Neither the provisions of this section, nor the acceptance of any bond by the City pursuant to this section, nor any damages actually recovered by the City, shall be construed to excuse faithful performance by the grantee or limit the liability of the grantee for damages for any act or omission violating the terms of this chapter or of any provision of this Code or the resolution granting the franchise, or any law of the state.

(Prior Code § 14B-14)

The grantee shall indemnify and hold harmless the City and its officers, employees and agents from any and all liability for damages resulting from any operations under its franchise, and agree that at all times during the existence of the franchise it will maintain in force, furnish and file with the City, at its own expense, a general comprehensive liability insurance policy, provided by a company authorized to do business in the state, in the form approved by the City Attorney, protecting the City, its Council, board, commissions, members thereof, and all officers, employees and agents against liability for loss or damages for personal injury, death and property damage occasioned by the operations of the grantee, with minimum liability limits of $100,000 for personal injury or death of any one person, and $300,000 for personal injury or death of two or more persons in any one occurrence, and $50,000 for damage to property resulting from any one occurrence.

Section 4-12.29 Compliance with law: Conflicting laws.

The policies described in subsection (a) of this section shall name the City, its Council, boards, commissions, members thereof, officers, employees and agents as co-insured, and shall also contain a provision that a written notice of any cancellation or reduction in coverage of the policy shall be delivered to the City 30 days in advance of the effective date thereof. No franchise granted under this chapter shall be effective unless and until each of the policies of insurance, as required in this section, and bonds, as required by Section 4-12.27, have been delivered to the City.

(Prior Code § 14B-15)

Any person operating a bus under a franchise granted under the terms of this chapter shall be required to comply with all applicable laws and regulations of the state and the United States Government in addition to the requirements of this chapter and of the resolution granting the franchise and orders and conditions imposed upon the franchisee under the terms of this chapter.