Resolution 7808 .ESO ,IO O. 7808
WHEREAS, the City Council of the City of Miami Beach,
Florida, (hereinafter referred to as "The City Council") passed
and adopted Resolution No. 7434 on the 7th day of February, 1951,
calling a public hearing to be held at the time and place speci-
fied in said resolution to consider the request theretofore made
by Miami Beach Railway Company (hereinafter referred to as "The
Company") for authority to increase the fare to be charged and
'collected by it for transportation service rendered within the
corporate limits of the City of Miami Beach, and
WHEREAS, in accordance with the provisions of said Reso-
lution No. 7434, the City Council, after due notice thereof, held
a public hearing on February 14, 1951, and held adjourned sessions
thereof on the 5th day of March, 1951, and on the 6th day of March,
1951, and held a supplementary hearing on October 4th, 1951, and
an adjourned session thereof on October 6th, 1951, during which
hearings testimony was given by witnesses under oath and pertinent
exhibits were admitted in xidence, and
HF.hj AS, the City Council has given careful consideration
to such testimony and exhibits, and
WHEREAS, the City Council is now fully advised in the
premises,
NOW, THEREFORE BE IT LESOLV'{,.D BY T E CITY COUNCIL OF '21-1E
CITY OF MIAMI BEACH, FLORIDA :
That the City Council has found and determined, and does
hereby declare:
(a) During said public hearing it was established by com-
petent evidence that the rates of fares now being charged and col-
lected by the Miami Beach Railway Company for transportation service
rendered within the corporate limits of the City of Miami Beach have
been in the past, and will be in the future, inadequate to provide
to the Miami Beach Railway Company a fair rate of return upon the
value of its property used and useful in rendering transportation
service within the corporate limits of the City of Miami Beach,
Florida;
(b) During said public hearing it clearly appeared that
no justifiable separation had been made of the value of the portion
of the property of the Company used and useful for rendering service
to Miami Beach from the value of the Company' s property used and use-
ful for rendering service to aurfside and that there has been no
justifiable determination of what portions of the operating revenues
and what portions of the operating costs should be allocated and
charged to the rendering of service in Miami Beach and to the ren-
dering of service in Surfside;
(c) By reason of the failure by the Company to make just .
separation of values and just allocation of revenues and operating
costs as between Miami Beach and Surfside, the City Council has
been and is unable to establish a rate base applicable to Miami
3each alone but has been and is compelled to fix a rate base for
the entire territory within which the Company renders service and
has been and is compelled to base its computations and determinations
of past and prospective revenues and operating expenses upon the
operations of the Company in rendering service throughout such entire
territory;
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OFFICE OF CITY ATTORNEY - CITY HALL - MIAMI BEACH 39, FLORIDA
(d) That the rate base for rendering such transportation
service throughout the corporate limits of Miami Beach and Surfside
amounts to 44;1,156,443.30;
(e) That based upon (1) the amount of fares charged and
collected by the Miami Beach Railway Company for the year .ending
Docember 31, 1950, and (2) an estimated decrease of 9.625,E in the
number of passengers on account of the proposed increase in fares
and (3) an estimate that 10, of the passengers will pay cash fares
and (4) an estimate of operating expenses based upon wage rates
prevailing at the time of the hearings and price levels prevailing
at the time of the hearings, which estimate of operating expenses
includes an allowance of X153,835.00 for the annual cost of injuries
and claims and (5) a gross operating revenue tax of 6, instead of
which was being collected by the City of Miami Beach at the time
of the hearings; rates of fares as follows:
1. Fare for any school child certified by proper authority
for a single trip in the same general direction between
any two points within the City limits at a rate of
Forty (40) tickets for ; 2.00, said school tickets to be
honored by the Company on all school days. This fare
shall not apply to college or university students .
2. Token fare for a single trip in the same general direc-
tion between any two Points within the City limits at
the rate of two tokens for 250.
3. Cash fare for a single trip in the same general direc-
tion between any two points within the City limits, 150.
will produce sufficient revenues to give the Company an annual return
of at least .; 39, ;30.00 after paying all legitimate operating expenses,
including Federal Income Taxes ;
(f) That an annual net return to the Miami Beach Railway
Company of at least ,A91930.00 upon a rate base of no more than
,'?1,1560113.30 represents a rate of return to the Company which is
just and reasonable under prevailing economic conditions.
PASSED and ADOPTED this 11th day of October, A. J.
1951.
''/K7-1-G
lqayor
Attest: C. Tomlinson M ��
City Clerk
By .Z
Deputy City/ lerk
OFFICE OF CITY ATTORNEY - CITY HALL - MIAMI BEACH 39, FLORIDA
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