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RESOLUTION FOR MEMORANDUM TO CONTRACT WITH THE CHAMBER OF COMMERCE TO PURCHASE, FINANCE AND OPERATE BUSES IN JONESBORO.
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This memorandum concerning the purchasing, financing and operation of buses in Jonesboro, shall be a contract between the City of Jonesboro and the Chamber of Commerce of Jonesboro, when approved by the governing bodies of the organization.
It is found that many and long efforts to continue the operation of buses in Jonesboro have failed except and unless the bus facilities are acquired by the City of Jonesboro and that the public interest and welfare require and demand the continuance of the operation of buses. Further, that the acquisition of the transportation facilities is possible only through the cooperation of citizens through the Chamber of Commerce of Jonesboro and according to the terms and provisions of this Memorandum.
The City of Jonesboro shall:
1. Purchase the seven buses and the parts and equipment of the City Transit Company from C.A. Johnson.
2. Authorize execution and delivery of bonds or evidences of indebtedness in the total sum of $10,000 for the purchase of such equipment and for operating capital. Such bonds to bear 4% interest, payable annually and be in denominations of $50,100 secured by mortgage on the buses and equipment, and payable only from net operation revenues after payment or provision for payment of all operating expenses and establishment of reserves for depreciation, according to standard accounting practices and as determined by the commissioners herein provided.
3. The bonds and mortgages shall be in a form and shall contain provisions as shall be approved by attorneys chosen by the Chamber of Commerce and shall provide that payments when made shall be appointed ratably among all holders of bonds and that the entire principal shall be due in five years. Also, that in the event the bus operations fail to show any net profit for three consecutive months the Chamber of Commerce or holders of a majority of the bonds or City Council may declare the entire amount then outstanding to be due and in default.
4. Pass an Ordinance appointing five commissioners of public transportation who shall be recommended by the Chamber of Commerce and authorizing and empowering them to:
a. Determine all policies of operation of the bus system and details of such operation; including, but not limited to, determination of schedule, routes and fares.
b. Employ all personnel that the commissioners shall deem required to operate the bus transportation system.
c. To make such contracts, purchases or sales for cash or credit payable only from operating revenues as they shall deem advisable in the interest of operation of a public transportation system.
d. To hold office until death or resignation or removal by the Council for cause involving stated failures to perform the duties set out herein or in the ordinance appointing commissioners. Appointments in succession are to be of persons recommended by the Chamber of Commerce so long as any of above indebtedness is unpaid.
5. The commissioners shall be required by said ordinance to make or cause to be made and delivered to the City Council and the Chamber of Commerce monthly operating statements and a yearly audit. They shall receive no compensation other than $10.00 each per month and shall have no power to pledge or spend any funds or assets of either the City of Jonesboro or the Chamber of Commerce, except such as accrue from the operation of buses or the handling of equipment under their control.
6. In event a net operating less has occurred in any month the Commissioners certifies to the City Council that the operation of buses is imperiled by lessees and that there are no reserves in debt service accounts nor in depreciation accounts, then the City Council shall appropriate sums required for such operations net exceeding $1,000.00 for any 30-day period, $2,000.00 in any 90-day period; nor $3,000,000 calendar year.
Provisions of the above memorandum are adopted and approved by resolution of the City Council this 5th day of July, 1955