HomeMy WebLinkAboutOrdinance 7747 `
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ORDINANCE N0
AN ORDINANCE GRANTING THE PRIVILEGE APPLIED FOR BY
TRANSPORTATION SYSTEMS COMPANY T0 USE THE STREETS,
ALLEYS AND PUBLIC THOROUGHFARES OF THE CITY FOR THE
CONDUCT OF ITS SPECIALIZED CARRIER OPERATIONS UNDER
CONTRACT WITH THE STATE DEPARTMENT OF HUMAN RESOURCES
FOR THE PERIOD APRIL lst T0 SEPTEMBER 30, 1978; SPECIFY-
ING THE TERMS AND CONDITIONS OF THE GRANT; PROVIDING FOR
A ONE TIME STREET RENTAL FEE; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City Council has the authority, by Ordinance, to
fix and regulate the fares and charges of public carriages, hacks and
vehicles of every kind, under Section l of Chapter XXYDof the Charter
of the City of Fort Worth, as amended; and
WHEREAS, Transportation Systems Company, a Texas corporation, has
applied for a grant of privilege to use the streets, alleys and public
thoroughfares of the City to fulfill its contractual commitment with
the State Department of Human Resources during the period April lat
through September 30, 1978; and
WHEREAS, the City Council finds a need exists for the proposed
service under the terms and conditions of said contract for the time
thereof and no longer, Now, THEREFORE:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
SECTION l
That Transportation Systems Company, a Texas Corporation, herein-
after referred to as "Company", is hereby granted the limited operating
privilege of operating two (2) specially equipped vehicles for and in
the transportation of handicapped and elderly persons over the streets,
alleys and public thoroughfares of the City of Fort Worth during the
period April l , 1078 through September 30, 1978, under the terms
and conditions and for the fees provided in the contract for such service
with the State Department of Human Resources.
SECTION 2
That the Company shall pay a one time fee of $416.67 for the
privilege hereinabove granted in lieu of any "street rental" fee as
specified in Section 34-9 of Chapter 34 of the Code of the City of
Fort Worth,, Texas,
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SECTION 3
That the privilege herein granted shall he and remain subject to said Company's
full , complete and satisfactory continuing oomyliance with all Federal, State and local
laws and ordinances including but not limited to the Charter of the City of Fort Worth
and all relevant provisions of Chapter 34, Code of the City of Fort Worth, Texas (1964),
as amended, and such other ordinances as may be adopted by the City Council governing
and regulating specialized carrier operations such as contemplated by the Company.
SECTION 4
That the Company acknowledges the City assumes no liability in making this
grant and by acceptance does agree to hold the City harmless from all expense or
liability for any act or neglect in exercising the privilege granted.
SECTION 5
That the Company acknowledges its property and operations shall he and remain
subject to such reasonable regulation by the City as is or may be necessary to
protect the interests of the general public, and that suspension and/or revocation
of the privilege granted herein may be accomplished under the relevant provisions of
Chapter 34 of said City Cnde,
SECTION 8
That the Company shall be obligated to discharge any claim or judgment
against it finally established by law, and the failure so to do shall terminate
all authority under this grant.
SECTION 7
That nothing herein contained shall ever be held or construed to confer upon
the Company exclusive rights or privileges of any nature whatsoever'
SECTION 8
That the terms and provisions of this ordinance are severable and shall be
governed by Section 1-4 of Chapter l of the Code of the City of Fort North, Texas (1964),
as amended.
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SECTION 9
That within ten days after the adoption of this ordinance, grantee herein
shall file with, the City Secretary written acceptance of the terms and
provisions hereof.
SECTION 10
That this Ordinance shall be in full force and effect from the date of its
adoption and acceptance as hereinabnve provided.
APPROVED AS TO FORM AND LEGALITY:
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City of Fort Worth' Texas
sLIFF Mayor a Council Communi cation
DATE REFERENCE SUBJECT: Request for Limited Authority PAGE
A e,Jt as ! "5123178 NUMBER For Contract Transportation Systems 4
TUR"S
onm a of
'The City Council in session on April 14, 1978, denied M&C -3775 on the above
ub ect and requested that a full public hearing be held to determine the
"public convenience and necessity" of Transportation Systems Company to
operate in Fort Worth. Specifically the Staff sought to obtain information
to resolve the following questions:
I. Should Transportation Systems Co. be granted a permit
to transport passengers for a fee on the streets of the
City of Fort Worth?
2, Should this type of specialized "handicapped" service
be considered as taxicab service, and if so, dues the
present Taxicab Ordinance provide for control of such
operations?
3. Should the present ordinance be amended to provide a
section covering such specialized carriers?
The public hearing was :held on April 19,197€3, and representatives of all
affected parties were present. This included Fort Worth Cab and Baggage Co -
pang, Poor Boy Taxi Company, Transportation Systems Company, the Texas Depart-
ment of Human Resources (TDHR) , and the Director of the Fort Worth Area Council
of Churches "Special Transportation Services". Those testifying included Fart
Worth Cab and Baggage, Transportation Systems Company, TDHR, and the Council
of Churches.
Regarding the question of whether to permit Transportation Systems Company to
transport passengers, testimony revealed that Fort Worth Cab and Baggage would
be financially affected to its detriment by the loss of this business. Fort
Worth Cab and Baggage Company testified as to its successful performance under
a similar contract with TDHR for the year ending September 30, 1977. The
Company also stated that if Transportation Systems Company were permitted to
operate in Fort Worth, such action would have serious financial impact on
their company's continued ability to provide taxicab service. During the year
Fort Werth Cab and Baggage had the contract, revenues were approximately
$80,000.
Transportation Systems Comppny testified as to their ability to provide the
service needed. by TDHR and their past experience in handling similar trans-
portation contracts. The company indicated they had the necessary equipment
and personnel to take care of the estimated 25,000 eligible users of the
transportation service. The service will be provided on a countywide basis.
pnrs REFERENCE susiccr: Request for Limited ,authority PACE
m�ussr"
5/23/78 C-,i8 For Contract Transportation Systems �.._.W Of ._. .M_
_., Company m......
The Hearing Examiner requested information from the Department of Human
Resources representative as to whey TDKR decided, not to use local firms to
provide the needed services. The representative testified that:
1« The reasons that the TDHR had established a new
policy in letting the contract to only one prime
contractor Hovering time entire Metroplex was for
TDHR convenience only; and
. That it was not legislatively, mandated to contract
in this manner but the TDHR staff made the decision
to do so on its own initiative.- and
. TDHR did not consider the impact on the existing
local/ taxicab companies in Fort Worth or Dallas in
its consideration of bidder contractor; and
. TDHR assumed, but dived not require, that contract
bidders were licensed or certified couriers by
appropriate governmental authority.. The representative
also testified that Fort North Cab and Baggage Company
had performed adequately as the prior contractor under
contract ending august 51, 1977, when it was handled
on a single county basis
It was pointed out 'by T1iR that originally the contract had been awarded to
another firm, Transportation Enterprises, for the year 1977-78.. This company
was granted a permit by the City of Dallas to perform this service. The con:-
tract by TDHR was cancelled, because of "'inadequate service" in January, 1978,
effective April 1, 1978, New bids were requested for the balance of the con-
tract year ending September dC, 1978. Transporat.ion Systems Company was then
selected on the basis of its "bid responm e
The question of granting the permit to 'Transportation Systems Company revolves
around whether the service to be provided actually is a for-hire service as
defined in the City Code. The parties to the hearing stated that the inter-
pretation of the Code is that it does not cover the specialized service con-
templated under the TMcontract., The proposed service Is a pre-arranged
point-to-point pick-up and delivery service of a particular class of passenger
when their trips have been schedule 24 or more hours in advance,. While this
view does appear to be accurate, the fact is that the service is paid trans-
portation and is In fact competing for possible taxicab patrons.
In connection with this hearing, the Examiner reviewed previous testimony
given. in 1975 when time port Worth Cab and Baggage. Company had its certificate
renewed,. At that time, ,special and contract services being provided by the
Fort Worth Council. of Churches and Transportation Enterprises, Inc. were
discussed. In Informal Report Ho. 7606 (11,/21/75) the City Council was informed:
"The Consumer Affairs Director Band the Department of Law have
investigated the operation of the Fort Worth Council of Churches
and Transportation Enterprises, .and finds they are a financially
responsible organization and,, that inasmuch as they are not
DATE LRE l FE" NCE SUBJECT; Request for Limited Authority PAGE;IMBER For Contract Transporation Systems ems 4
,5/23178 G_3822 _,.m. or
'For Hire' carriers and are operating on a contractual or
charter basis, are not required to apply for Certificate
of Convenience and Necessity as a taxicab operator.''
Because of this earlier opinion, and a reasonable question as to whether or
not the Ordinance does in fact provide for the regulation of such companies,
the conclusion is that Transportation Systems Company should be permitted to
fulfill its contract with the TD HR until September 1, 1978, upon payment
of a one -time: street rental fee based on a proportionate rate of the $1,004
annual taxicab rental fee.
However, as a result of the testimony and subsequent findings, staff does
believe that farther action is necessary. Financial information submitted
by Fort Worth Cab and Baggage, indicates that the following losses have
been sustained;
1975 - 7,904
1976 - $14,000
1977 - $10,444
1978 -- $16,444
Of 125 permits authorized to Cab and Baggage, only 68 are currently in use.
Additionally, the other taxicab company permitted, Poor Boy Taxicab, has 30
permits authorized but only twelve in service.
Taxicab service in Fort Worth is faced with some significant problems and in
the long term may possibly not survive. Increased Federal, state and local
governments encroachment along with that of private community non-profit
organizations„ is taking its toll on ridership and the attendant economic
stability of private taxicab companies. Consequently, the current City
ordinance should be amended to provide specifically for vermitting private
non-profit transportation providers and for those companies providing contract
services for federal and state agencies. Such an amended ordinance should
address the question of a public hearing for such providers and require
testimony as to the potential number of riders the service will have and the
estimated economic impact it will have.
Recommendation
To authorize payment for work already performed and assure that the service
to needy patients can and will be continued, it is recommended that the
City Council:
�u. F .
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DATE NUWIVEIBRE�CF SUBJECT* Request for Limited Authority PAGE
5/23/78 FoIr Contract Transportation Systems � 4
G-;' 82
1) Approve an ordinance authorizing "transportation Systems Company to
operate on City streets under its current contract until September
1, 1978, upon payment of a one-time street rental fee of $416,67'
(5/12 of the $1,000 annual taxicab street rental fee)
2) Direct the staff to determine the necessary amendments of the
Taxicab Ordinance, to include drafting a new ordinance if
necessary, to provide for specialized carrier operations of
the type under consideration herein, to include holding such
hearings as may be necessary, to determine the public convert-
ience and necessity of such carrier operations and the impact
upon the public taxicab business if competition fro other pri-
vately funded carriers and transportation systems were to be
authorized.
J'li"T`.j c
Attachment; Ordinance
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SUBMITTED BY- DISPOSITt ._ __... . �............. �.w .......�. .W...____. _.__....... � a�m . .
o SY COUNCIL: PROCESSED BY
APPROVED 0 OTHER (DESCRIBE)
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DATE
CITY MANAGER S_-,73;>q,