AC Transit Annual Report 1973-1974

8/14/2019 AC Transit Annual Report 1973-1974

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I II I I


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0/ )ifl!etof9

Kimi FujiiVice P dent

John McDonnell

William E. Berk

Roy Nakadegawa

William J. Bettencourte e

Robert M. Copeland

Ray Rinehart


3/16

More people rode AC Transit busesduring the year, boosting patronage figuresto the highest point in District history.More miles of service were provided.Buses scheduled for retirement were kept

on the road to carry the additional riders usingpublic transit. The work load increased,as planning moved into high gear onexpansion into new areas.It was a top year for safe driving, with thehighest safe driving records ever achievedon the property.In this year in which everything went up,costs also increased, swept along on aninflationary surge.Yet it was an outstanding year forAC Transit, a real year of achievement.

This message, carried on AC Transit buses and outdoor billboards,helped assure thousands of new riders who turned to public transitduring the year. The poster, with its theme: "We get you whereyou want to go," won first place in "Best in the West" competitionsponsored by American Advertising Federation.


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C U ( J a r ~ fiAeeordRevenue passengers totaled,051, an increase of 89 percent

previous fiscal year.38,546,969, up 7.3 percentto the 1972173 period.

riding totaled 16,674,082,12.8 percent over a year ago.Revenue collected in fare boxes$16,575,903 up 10.0 percentyear before. East Bay revenueto $8,291,426, an increase of

percent compared to the previousperiod. Transbay revenue was,477, an increase of 13.2 percentto the previous fiscal period

came to $686,070,of 10.8 percent aboveyear before.

The District had total passenger and$17,261,973 anof 10.0 percent compared to

previous fiscal period.Total operating revenue, includings advertising, was $18,115,618,

of 9.7 percentProceeds from the consolidatedtax rate of 31.1 cents per $100assessed valuation came toadditional $4,434,974local transportation funds was

giving the propertyperating and non-operating incomef $32,406,591.Total expenses, including

depreciation and repayment of bondeddebt came to $35,519,126, leaving$3,112,535 to come from uncommittedcash reserves.AC Transit operated 27,612,921miles of service, including charter,up 4.8 percent compared toyear-ago mileage.One-way route miles increased,with a total of 1572.8, compared tothe year-ago total of 1488.2. Systemexpenditures per mile rose to 128.63cents from 108.24 cents for the yearbefore, an increase of 18.8 percentThe bus fleet count was 801, com-pared to 762 during the prevIOus fiscalperiod. The number of employees atyear end rose to 1758, and increase of111 workers over a year ago

ueflfiewA surge in riding and increasedactivity in different areas made 1973-74a I vely, pace-setting fiscal year forAC Transit.Inflationary costs also made it a yearof financial challenge.Growth in riding was a heartening,month-by-month experience, as effortsto attract people from cars to buses proved successful. High prices of fueland parking, topped off by a seriousfuel shortage, put cars back intogarages and new riders on buses.The fuel crisis was credited with apatronage peak in March that reachedrecord-breaking highs. But evenafter fuel began flowing again fromservice station pumps, people went onriding buses and AC Transit main-tai ned a steady growth that lasted unti Ithe end of the fiscal year.

PASSENGERS-REVENUE-MI LEAGE%

1973-74 1972-73 Chg.Revenue PassengersEast Bay .. 38,546,969 35 ,939,411 7.3Transbay 16,674,082 14,783,062 12.8

Total . .. . 55,221 ,051 50,722,473 8.9Passenger Revenue

East Bay .. $ 8,291,426 $ 7,748,505 7.0Transbay .. 8,284,477 7,319,997 13 .2Charter .. .. 686,070 618,932 10.8

Total . . . . $17,261,973 $15,687,434 10.0Service Miles

East Bay .. 16,655,485 16,063,400 3.7Transbay .. 10,442,237 9,780,522 6.8

Total . . . . 27 ,097,722 25,843,922 4.9

Record RidingNew passenger records were set theweek ending March 7 when transbayrid ing was up nearly 26 percentcompared to the same week in 1973.East Bay riding was up over 20 percent and overall riding was upover 22 percent.

Two records were set during thesame week in daily ridership.The bus system carried 240,460passengers on March 4 and toppedprevious daily revenue records on thsame day when $71 ,340was collectedA new transbay peak was reachedon March 5, when 73 ,082 passengerstraveled between East Bay citiesand San Francisco.Operating expenses, plus payments on bond debt and interest,were $35,519,126, an increaseof $6,998,119 or 24.5 percentover the previous year.Funds to balance the expenditures included $18,115,618 inoperating revenue , $9,855,999 inproperty tax proceeds, $4,434,974in revenue from the State retailsales tax and $3,112,535 inuncommitted cash reserve.Capital grants of $1,597,478from the Urban Mass TransportationAdministration assisted the Districtin purchasing 55 new buses,plus associated equipment.At the end of the fiscal year,facing still higher operating costs,the Board took action on new tariffs.Transbay cash fares were increaseeffective July 1 by five cents acrossthe board. Fares on buses whichoperate to special events, suchas buses wh ich carry riders to theOakland Col iseum for Raiders'games, were raised 25 cents,effective the same date.The raise in transbay fares isexpected to offset the deficit by $1million, while the increase in faresfor special events is expected toincrease revenue by $63,000.While riding growth was anexciting and satisfying experience,the money to help pay for resultingincreases in service and skyrocketincosts clouded otherwise sunny skies


5/16

Rising CostsAt the beginning of the 1973-74fiscal year, the Board of Directors wasable to hold the I ne on fares and taxes,anticipating the year's operatingestimate would be balanced withFederal and State grants, plus the useof some uncommitted cash reserves.Fares remained at a basic 25 centsfor local adu It travel and 55 cents cashor 50 cents commute for transbaytrips-the same fare structure in effectsince July 1, 1969.Property taxes were set at aconsolidated rate of 31.1 cents per$100 of assessed valuation-thethird straight year at the same rate.Escalating costs and a laborarbitration award, just before theend of the year, changed thefinancial picture.As an example of inflation , dieselfuel costs increased from 12 .24cents a gallon early in the fiscal yearto 30.7 cents a gallon in June.The arbitration award , concerning aninterpretation of the labor agreementover the method of calculating cost ofliving pay, added over $2 million toexpenses for the year.

Maintenance workers remove a six-footsection from standard size bus, one of 13converted for use in Dial-A-Rlde. The buswas cut from 35 feet long to 29 feet.

New Services, New PlansIn addition to the regular business ofproviding transportation to nearly 5million passengers a month, the Distr ictwas busy with a variety of projectsinvolving new services or plans for newservices. They included : Preparat ions for start of anexperimental Dial-A-Ride operationin Richmond. Preparations for new middayfixed route service to be operatedunder contract in the City of Fremont,forerunner of expanded serviceslated for the Fall. Negotiations on an agreementwhereby AC Transit, under contract,would operate express bus extensionsfrom BART stations to suburbanareas outside the AC Transitservice district. Countdown on service changesand other projects connected with startof BART operations to San Francisco. Participation by AC Transit instudies in Contra Costa County and thetri-city area of Fremont-Union CityNewark on what is needed in thoseareas in the way of local transportation.

Fabric-covered bucket seats, carpeting onfloor and ceiling, and a parcel rack at the doorcontribute to comfort and convenienceaboard Dlal-A-Ride bus.

Dial-A-RideOf the new projects, Dial-A-Ridewas the most innovative.To obtain a small bus with thehigh degree of reliability, maneuveabil ity and passenger comfortnecessary for operation of personalized , door-to-door transportation,the maintenance department cutdown a regular 35-foot busseating 45 passengers to a smallmodel, 29 feet long .A cut was made crossways behinthe front wheels, a six foot sectionwas removed and the bus fitted batogether again. The first small bus wdesigned to seat 16 passengers wian extra amount of seat width and room-so much extra, in fact, thatseats were designated for 12 remainvehicles . Even the seats are speciaThe fabric-covered bucket-type seaare 21 inches wide, while loungetype seats across the back are evewider-22 inches. The floor andcei ling were carpeted to reduceinterior engine noise; acousticalmaterial was added to theengine compartment.A parcel rack was located nearthe door; the exterior paint scheme wmodified to give the "little bus" anindividualized appearance, and amusical tape was installed to announthe arrival of the bus atpick-up points.

A merry mood greeted the Dial-A-Rlde buwhen it was introduced to Richmondresidents. Coffee and doughnuts servedunder a portable awning added to festivit


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The bus also has a spotlight topick out house numbers and assistpeople in moving safely at nightbetween the bus and thei r front door.Lighting over the bus entranceilluminates the loading andunloading area.The bus has the same six cylinderpower plant, automatic heatingand ventilation and the completeair-ride suspension now furnished inlarger buses. Mechanically it is inexcellent condition.Adaptation of 12 additionalbuses was faci I tated by Federalgrant funds of $125,482.

As the fiscal year ended , driversand controllers were in training forDial-A-Ride service and boundarieswere set to encompass a five squaremile area of Central Richmond.Brochures, describing how the serviceworks, were being distributeddoor-to-door by workers from theRichmond Model Cities program .Posters also were being taken to business establishments within theDial-A-Ride area.The experimental project involvessome 44,000 residents in Richmond. Itis estimated 460,000 passengers willbe carried during the first full yearof operation, with a net operatingdeficit of $677,000. An estimated700,000 passengers will be carried thesecond year. Experience gained inRichmond will help determine futuretransit operations.Fremont ServiceNegotiations with the City of Fremontculminated in an agreement to operateinterim midday bus service in thatcommunity of nearly 125,000 people.

Jack Rutherford of the MaintenanceDepartment shows headsign readied forinstallation for Fremont service.

The City of Fremont proposed servicebased on local funds provided byrevenue sharing monies. The city'sshare of approximately $150,000 willgenerate nearly $500,000 inMetropolitan Transportation Commission funds. Federal fundsare expected to be available laterto purchase new equipment.In the interim, the city unanimouslyapproved contracting with AC Transitinitially to operate midday service.Fares were set at 25 cents per person .

Fremont city traffic engineer yron Harmonchecks list of bus stop sign locations asGeorge P. Spinella, center, and Lonnie L.Kelly right prepare to make an ns allationBecause of equipment demandswithin District boundaries (Fremont isoutside the boundaries), AC Transit

planned to use ten surplus coaches forinitial service. Buses were scheduled tooperate over six basic lines at 30minute intervals midday Mondaythrough Friday, and hourly on Saturday.When new buses arrive on the propertyin November, additional surplusequipment wi II be freed to extend hoursof operation.Brochures describing the newFremont bus routes were mailed toapproximately 25,000 area householdsby East Bay Disposal Company. Cityoffices, stores and banks also weredistributing the leaflets.

Ray Damele, left, manager, and JosephBiasotti, president of East Bay DisposalCompany, cooperate by enclosing leaflet oFremont interim bus service in summergarbage collection bill.AC Transit/BART CoordinationContinuing the pol icy of cooperatiofor maximum transportation effectiveness, AC Transit and BART directorsagreed to work together to provide buservice from suburban areas to BARTContra Costa and Alameda countiesA joint agreement calls for theDistrict, as an independent contractoto own, operate and maintain 32 buseto be used in the service. BART willreimburse AC Transit for costs andwill establish routes, levels of servicfare structure and marketing programwith the advice and counsel ofAC Transit.Planning was proceeding onexpress bus routes from BART stationto Pinole, Martinez-Pittsburg-AntiochBrentwood, Alamo-Danville andDublin-Pleasanton-Livermore. Allthese areas are outside AC Transit'sservice district but within BART'soperational boundaries.AC Transit directors also authorizefiling application with the UrbanMass Transportation Administrationfor a grant to cover the $2.5 mil lionprojected costs of new buses andrelated capital expenses. (After reviewthe number of buses was changedto 36 and the grant applicationto $3.6 million.)Meanwhile, various Districtdepartments were moving along onplans for service changes and otherprojects connected with the start ofBART operations to San Francisco.Anticipat ing a start of transbay trainservice, four bus routes were adjusteto serve BART/Oakland West stationLines 12, 82, 83, 88.Planning is predicated on Boardpolicy that transbay bus lines willcontinue in operation until BART isrunning full reliable operation betweeboth sides of the Bay. All routes willbe maintained during initial months,with a gradual reduction of commutebuses as transit riders switch overto the rail system.


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General Manager Alan L. Binghamsaid AC Transit is trying to put tobest use the experience gained whenBART opened its Fremont line andlater extended operations toRichmond. Commuters en masse atthat time protested the announcedabandonment of express bus service."Wethinkwhatwe learned from thoseactions can better hel p us servetransbay patrons by gradual ly phasingout service rather than abandoninglines overnight," Bingham said.AC Transit was participating instud ies and meeti ngs in Contra CostaCounty and in the tri-city area ofFremont-Union City and Newark onwhat is needed in the way oftransportation. All are now outsideDistrict boundaries and areconsidering propositions for theNovember ballot to create a transitsystem, establ ishing their own tax rate.Both regions are considering acombination of fixed route serviceand Dial-A-Ride.

New BusesArrival of new equipment at thebeginning of the fiscal year brought anew look in coaches. The 55 busesfeatured a new interior arrangement,with seats, except those overwheel housings, mounted on singlepedestals-allowing stretch out roomfor passengers. The seats themselveswere padded, bucket-type,upholstered in attractive material.This 31-passenger Twin Coach was testedon 12 different East Bay lines in line withAC Transit's continued investigation intoacquisition of small buses. Its sizeand expanded window space met withenthusiastic response from surveyed riders

Engines in the buses have factoryinstalled Environmental ImprovementPackages (EIP), including a newfuel injector, and meet California'sair pollution emission standards.As riding continued to grow, theDistrict took another look andtelescoped a two-year equipmentpurchasing program into one year,instead of seeking 42 buses this yearand 78 in 1975, Directors decided toseek 120 new buses immediately,bringing the total fleet to 933.The contract was awarded toFlxible Company at $42,372 busdelivered, plus taxes.Riding GrowthTo accommodate new riders , servicewas added to 14 transbay lines,providing 29 more morning trips and34 additional afternoon trips. On EastBay lines, 11 morning and sevenafternoon trips were added.A new line W-2 was inauguratedto provide peak-hour service from WestAlameda to San Francisco.Senior citizens were prime beneficiaries of new "customerized " serviceoperating from the Spanish Ranch ,Eden Roc and Lum Lodge developments to a major shoppingcenter in Hayward. Buses stoppedto take residents to the center onpreferred shopping days, waitingto return them when shoppi ngwas completed.

Widening and striping of the exclusive buslane onto the Bay Bridge in March provideseasier and safer access for buses leaving theTransbay Transit Terminal to return to theEast Bay.

A resident of Hayward's Spanish RanchMobile Home Park welcomes driver Otis Lat inauguration of special "customerizedservice between Spanish Ranch and a malocal shopping center. Similar service,of prime benefit to senior citizens, wasestablished for Eden Roc and Lums.

Although traditionally service toindustrial plants has not resulted inexpected riding, the District expandinto this type of operation, again as tenergy crisis brought home theadvantages of public transportationService was either added orextended on seven lines to routebuses to industrial areas of HaywarSan Leandro, Hegenberger RoadOakland Airport, along East 14th Strand San Leandro Blvd. , Berkeleyand Richmond.

A contract for 120 buses was awardedin March to Flxible Co. of Loudonville, OhEach new coach, like the one shown herseats 51 passengers. Delivery is expectethe Fall.

Bay Area residents al designs for TRANSBUS-th n experimental schedule board ayward BART stationbus of the future- -during eight-day traveling exhibition. Prototypebuses are being developed by three manufacturers under Federal grant. shows destinations, departure times, and key to boarding poiAC Transit has 18 lin s s rVlng the station.


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Shuttle buses which were carrying/MacArthurSan Francisco continued toaul capacity crowds. The shuttle

percent, patronage that wi II disappearcommuters from the Concord line

In July, 1973,31 trips were operatedSan Francisco duringommute hours on the MacArthurshuttle. In June, 1974, 65 trips werein service, carrying approximately,000 passengers a day.Ridership also was growing onconnector buses serving BARTstations. Last fiscal year, in theand May, with all East Bay BART linesin operations, 565,856 BART/ACTransit transfers were turned in to busdrivers. For the same period in 1974,863,880 transfers were collected.With the anticipated BART openingto San Francisco in early Fall, thecountdown continued on managementlevel toward completion of activitiesfor the final phase of coordination.

ervice ChangesFour lines were adjusted to serveBART/Oakland West station preparatory to start of transbay service.Other service changes were made toprovide better feeder service as theDistrict continued its job of tailoringlines to meet the passenger needs.In addition to new routes, re-routes,extensions and additional service,12 routes had major travel ti me andfrequency adjustments to provide forincreasing ridership and changesin traffic conditions.The maximum a.m. peak-hourequipment requirements increasedby 35 coaches or 4.8 percent , makinga total of 717 coaches in operationduring the morning commute. Of theincrease, 28 coaches were addedto transbay service for a total of 334and seven were added to East Bayservice, for a total of 383.The entire operating fleet, includingspares, came to 801 , compared to762 during the previous fiscal period.One-way street miles increasedfrom 656.9 to 679.3, up 22.4 miles.One-way route miles rose from 1,488.2to 1,572.8, up 84.6 miles Total weekday schedule miles increased from87,816 to 92,713, up 4,897 miles.

Distribution of pocket timetablesjumped 19.8 percent, from 2,399,000to 3,231 ,000. In addition, 90 ,000pocket timetables were printed forCity of Fremont use.

PBX!lnformati handled a record 13,212telephone calls within a single 24-hour periodon March 14 as worried riders called toask whether buses would be in service duringSan Francisco city employees' strike.Expanded facilities and addition of new trunklines enable information center to deal withever-increl'sing number of calls.Exclusive Lanes

Effectiveness of a special lane, whichpermits morning commute buses tozoom through the toll plaza area withoutstopping, was further increased atthe end of the fiscal year withimplementation of special meteringsystem of lights 1,000 feet west of thecollection gates. A steady green lightgives priority to buses and car pools,while other traffic proceeds accordingto red or green lights. The systemsmooths the flow of traffic, meteringcars onto the bridge one at a time, at arate exactly equal to bridge capacity.Special permit lanes also were setaside for westbound buses during theevening commute, effective July 1.Quicker and easier access to the BayBridge from the Transbay TransitTerminal was achieved with thewidening and restriping of the lowerdeck of the bridge on the west end .The exclusive bus lane onto the lowerdeck was extended 200 additional feet.Moving a guard rail to widen the laneand the restriping eliminated onemerge and provided better sightdistance for the bus operators.

Special ServiceLike the Oakland A's, AC Transitcame out a winner in carryingthousands of sports fans to and fromthe Coliseum for the AmericanLeague play-offs and the WorldSeries last October. BART providedservice for the play-offs only , withbuses performing shuttle service fromthe BART/Col iseum station to thestadium. District buses carried thewhole load for the World Series.

Under a trial program , AC Transitinaugurated direct bus service to fiveEast Bay Regional Parks to providethe public with access to recreationaareas between Richmond and Haywarwithout depending on cars.Initial service operated weekendsonly to Don Castro, Point Pinole, TildenLake Chabot and Roberts/Redwoodregional parks. Subsequently dailyservice was offered to the latter threeThe Tilden bus was outfitted withinterior bike racks to carry cyclists intthe hilltop park. AC Transit's regular"Pedal Hopper" bus continued to makweekend runs across the Bay Bridgeferrying bicyclists and their wheelsto and from San Francisco.

Experimental direct service from BARTstations to five East Bay Regional Parksgot underway in May. The Tilden Park buswas outfitted with ten racks, enablingtwo-wheel enthusiasts to explore bikewayshigh in the hills of Berkeley.Senior CitizensA survey taken in October 1973showed senior citizen ridership holdinfairly steady, with a three-day total o25,696 as compared to 25,116recorded for the same period in theprevious fiscal year. The special1O-cent fare for sen ior citizens-peopl65 and over-was continued.The District agreed to participatein a demonstration project to providefree off-peak bus service to seniorcitizens over 60 in San Leandro, fora period of three months. Plans wereunderway for issuance of "GoldCard" passes to identify eligibleriders, with the City of San Leandroto assume total cost of theexperimental service.Senior citizens were also theprime beneficiaries of AC Transit'sSummer Fun Tours, which last yearwere extended for the first time on alimited basis into the Fall. A total of5,355 riders enjoyed 25 differentexcursions in the summer, while 2,30passengers took in the sights during12 Fall tours.


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People to PeopleCommunicating with present andpotential riders is an importantpart of maintaining a "peopleresponsive" transit system.The PBX /Information Center wasaveraging more than 4,500 calls perday, with many days peaking at 5,000or more requests for information.Calls in the calendar year of 1973increased by 11 percent over theprevious year, with 1,319,041 requestsfor assistance in 1973.

The average time to handle callstripled, indicating many questions arecoming from new riders.Phone calls jumped 600 a dayafter AC Transit initiated a new promotional and advertising campaigngeared to the theme of "call andwe 'll tell you where to catch your bus ,and at what time. " Marketing efforts,which began in 1960, initially wereaimed at conveying the "why" ofbus riding . The switch to "how"to ride the bus began in the summerof 1973 and was reinforced by thefuel and energy crisis.A traveling information boothcarried the message directly topotential riders with person-to-personassistance provided by two AC Transitdrivers. The drivers were speciallytrained at the PBX /Information center,then went out to industrial plants,government buildings, hospitals andother offices in a cooperative effortbetween the District and employers tobring tailor-made transit assistancedirectly to workers.Printed transit guides, detailingboth bus and BART train schedules,were produced for the Universityof California, Chabot College,the Oakland Museum andAlameda County offices.

Drivers Ronald Johnson and Billy Bishopprovide transit information to employees ofSinger Business Machines Co. in SanLeandro. The traveling information boothvisited industrial plants, government officesand other high traffic locations to answertransit questions on a person-to-personbasis. The program was featured onnational television.

Morethan 80,000 "Welcome Aboard "leaflets were distributed directly bybus drivers, AC Transit's mostimportant "people to people"communicators. The leaflets helpoperators answer questions on fares ,zone changes and riding bargains,such as the stop-off and go-againtransfer plan, the shop-around passand the Sunday and holidayexcursion pass .Searching for new ways to reachoff-peak service riders, two four-pageinserts were published in an unusualmedium, The Classified Flea Market.The inserts contained informal articleson places to go and things to do bybus. The Flea Market is distributed freeat local grocery chains, liquor storesand various small retail outlets.Circulation is estimated at 190,000.Thearticles were being reprinted in anattractive brochure.

Searching or new ways to reach off-peakservice riders, two four-page inserts werepublished in an unusual medium: TheClassified Flea Market. Inserts containedinformal articles on places to go and thingsto do by bus; articles were reprinted in ahandy pocket-si e brochureTwo Oakland Raiders ' football starsadded verbal and visual punch to a newhuman relations program. Defensivetackle Otis Sistrunk and linebacker Phi IVillapiano visited junior high schoolsthroughout the East Bay, along with anAC Transit driver.

Oakland Raiders stars Phil Villa piano, lefand OtiS Sistrunk VISited East Bay Junior hischools as part of a n w human relationsprogram sponsored by AC Transit.'Teamwork was the theme, with emphason Improvmg r lations betw en bus driveand students like these from Juan Crespi

The theme of thei r tal ks was"teamwork," with an emphasis onestablishing a feeling offriendship aimproving communications betweendrivers and students.The program was designed toincrease driver security, reduce vandal ism and promote a better understanding of the bus system's role in tcommunity-including the vitalfunction of providing transportationfor school children.

f a continuing program to aid blpeople in their use of public transportatioAC Transit d spatched a bus and team ofemployee to Castro Va I y to teach 50 byoungsters what o p e r a t m ~ and riding a busall about Her they learn how a bus feel


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Safety and TrainingFiscal 1973-74 was a record-settingyear in the safe-driving category .June 1974 marked the District-wideachievement of 19 ,259 safe milesper accident in one month , with theEmeryville Division alone totaling25,574 safe miles. These are thehighest one-month safety records everachieved on the property.Traffic accidents showed a reduc

tion of 5.3 percent compared to theprevious year, whi Ie passengeraccidents dropped 1.16 percent.Traffic accidents per 100,000 milestraveled were 5.27 , a decrease of 8.9percent below the previous year'saverage of 5.79 ; passenger accidentfrequency per one mill ion riders carriedwas 7.45, down 8.4 percent.

Charles R. Bosted, Jr. became the first driverto post 25 years of safe driving with ACTransit. Bosted credits defensive drivingtactics for his success behind the wheel.Another safety landmark wasreached when driver Charles R. Bosted,Jr ., became the first AC Transit operatorto achieve 25 years of safe driving.Individual awards for 12 months ofdriving without an "at fault" accidentwere presented to 860 drivers .

For the 12 h year n ro , it'sMaintenance Department won the FleetOwner Magazine Maintenance EfficiencyAward, shown here by maintenance workersBi I H Is ea e , an 0 n.Meetings were held with theMaintenance , Claims, Transportationand Safety Departments to developa record-keeping system andinspection procedure as required by

the Cal ifornia Occupational Safety andHealth Act, effective Ju Iy 1, 1974.In addition to new driver trainingand refresher courses for veteranoperators , the Training Departmentinstructed 25 operators and 9controllers for Dial-A-Ride operation.Approximately 200 operators receivedtrai ni ng on Fremont streets and routesin preparation for commencementof service.

Mail messenger Cleve Moore receives theGolden Wheel Award pin from GeneralManager Alan L. Bingham. Moore receivedAC Transit's highest award for 30 yearsof dedicated serviceAs part of the application procedureto select new bus drivers, AC Transitbegan using a pre-employment"Self-Evaluating Program" Jan. 1. Theprogram 's sole purpose is to selecttrainees with the most potential for jobsuccess, and to be non-discriminatory.It has been val idated by the Civi IRights Division of the Urban MassTransportation Administration asrequired by law under Title VII of theCivil Rights Act of 1964, as amended .

AcquisitionsAlong with writing specificationsfor buying 120 new buses , Purchaseand Stores was involved in bids for25 bus shelters , with an optionfor another 35.Installation of the free-standingshelters in eight different cities wasexpected by Fall , in keeping witha program of improvements forpassenger comfort.A new bus washer also waspurchased for the Richmond Divisiongiving all three divisions the wraparound type of bus washer.The four-year changeover frommanual to computerized inventory wacompleted during the fiscal year.Thefinal addition offuel and oil contrto the system was of obvious benefiin I ght of the energy crisis andthe increase in fuel costs.

Equipment acquisitions during the past fiscyear included this bus washer installed at tRichmond Division. The machine housesnine-foot nylon brushes which can clean a bexterior during a 63-second pass-through.


11/16

MaintenanceThe Maintenance Departmentcontinued its reputation for top qualitywork, receiving the Fleet OwnerMaintenance Efficiency Award for the12th consecutive year.The department made news in thetransit industry by cutting down 13GMC buses originally purchased in1961. The buses, to be used for

Dial-A-Ride, not only were reducedin size from 35 feet to 29 feet-theinteriors also were completelyrefurbished.Along with getting equipment readyfor Dial-A-Ride, workers remodeledtransportation facilities at theRichmond division to house theDial-A-Ride control room and offices.In coordination with expansionwithin the District, 88 additionalpassenger stop poles and signs wereerected; another 286 poles andsigns were installed within the Cityof Fremont.The total number of passengerstops increased in the fiscal yearfrom 5,143 to 5,517.

ClaimsPaid losses for the fiscal year were$308,750 for bodil y injury and $62,759for property damage, a total of$371 ,509, compared to the previ-ous year's experience of $242,859.Settlement of claims amountedto 2.4 percent of operating revenue,compared to 1.80 percent for the1972-73 period.Rising medical, hospital, repairand related costs contributed to thisincrease, but the largest factor was$100,000 paid out in settlement ofa 1971 accident claim.Paid losses for Workmen's Compensation cases under the District'spermissibly uninsured program totaled$274,935, compared to $170,290 forthe prioryear .The increase is attributedto rising medical costs and increasedbenefits for temporary and permanentdisability. Additionally, AC Transitincurred its first fatal employee injury

during the fiscal year.Recoveries amounted to $21,119,compared to $6,934 in 1973-74.

A Good YearThis year stands out as one ofaccomp I shment.Our people have worked hard,achieving their tasks with the expertisof professionals.Riding growth was promising andexciting. Years of effort to providethe ki nd of transportation that wouldattract and keep passengers seemedto be paying off more than ever.The future demands we do evenmore.Wewill be involved in new modeof travel and in expanding into newareas. There is no doubt, in considerinpast years, our workers have the apil ito anticipate change, plan for it andshape it for the benefit of all.

Vehicle Miles System Expenditures Per Mile Average Monthly Employee Earnings Bus FleetFiscal year ending June 30 Fiscal year ending June 30 Fiscal year ending June 30 Fiscal year ending June 30 New Transit Lines D Former Key System

MILLIONS OF MILES CENTS HUNDREDS OF DOLLARS "Reflects 19-day strike . HUNDREDS OF BUSES

1212027

11110

2610

10025

90

2' I 80 U3 Idl022 601965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1965 1966 1961 1968 1969 1970 1971 1972 1973 1974 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1965 1966 1967 1968 1969 1970 1971 1972 1973 19One-Way Route Miles Revenue Passengers Passenger RevenueFiscal year ending June 30 Fiscal year ending June 30 Fiscal year ending June 30

HUNDREDS OF MILES MILLIONS OF PEOPLE MILLIONS OF DOLLARS

15 1654

15

52

13 14

502 13

48 I 12'965 1966 1967 1968 1969 1970 1971 1972 19 73 1974 1965 1966 1967 1966 1969 1970 1971 1972 1973 1974 1965 1966 1967 1968 1969 1970 1971 1972 1 973 1974


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ALAMEDA-CONTRA COSTA TRANSIT DISTRICTSPECIAL TRANSIT SERVICE DISTRICT NO.1BALANCE SHEETJune 30, 1974 and 1973

ASSETSProperty, plant and equipment, at cost (Note C):

Property, plant and equipmentacquired October 1, 1960

Less accumulated depreciationOther property and equipment :Motor coachesShop, office and other equipment, servicevehicles and building improvements

Less accumulated depreciationTotal property, plant and equipment

Current assets:Cash :On hand and in commercial accountsTime deposits

U.S. Government securities, atamortized cost (approximates market)Accounts receivableMaterials and supplies, at costPrepaid expenses

Total current assets

LIABILITIES AND CAPITALGeneral obligation bonds: Due serially to1980 at various interest rates (1% to 3.25%) ,less amounts due within one yearCurrent liabilities:

Accounts payableSalaries and wagesAccrued payroll taxes and amountswithheld from employeesAccrued pension costs (Note A)Accrued interest on bonded debtUnredeemed tickets and tokensSelf-insurance reserves :

Public liability and property damageWorkmen 's compensation

Amount due within one yearon long-term debtTotal current liabilities

Capital (Note A):District equityFederal contributed capital

Total capital

See accompanying notes.

1974

$ 6,205,7873,115,1213,090,666

19,448,8821,443,804

20,882,68611,238,7319,643,955

12,734,621

82,4034,125,0004,207,4035,162,228914,027306,24169,361

10,659,260$23,393,881

$ 6,675,000588,925564,195356,7962,135,82170,900188,847400,000400,000925,000

5,630,4847,147,3173,941 ,080

11 ,088,397$23,393,881

1973

$ 6,295,4892,940,2443,355,245

17,291,0861,157,131

18,448,2179,963,5848,484,633

11,839,878

649,8008,100,0008,749,8002,677,836590,512235,07469,977

12,323,199$24,163,077

$ 7,600,000552,269394,861194,4501,508,33379,900176,864500,000233,000

1,240,7794,880,4569,080,0472,602,574

11,682,621$24,163,077

ALAMEDA-CONTRA COSTATRANSIT DISTRICTSPECIAL TRANSIT SERVICEDISTRICT NO.1NOTES TOFINANCIAL STATEMENTSJune30 , 1974A. Summary of accounting policiesProperty, plant and equipmentProperty, plant and equipment, acquiredOctober 1, 1960 from Key System TransitLines and its parent, Bay Area Public ServicCorporation, is being amortized on acomposite basis over assigned lives whichrange from ten to thirty-five years.

Other property is depreciated on thestraight-line method over the estimateduseful lives of the assets which are as followMotor Coaches 15 yearsShop, office and otherequipment 5 to 20 years

Building improvements 27 and 30 yearsSelf-insurance reserves-The Districtself-insured for public liability and properdamage and workmen 's compensation

claims up to $50,000 fo r anyone occurrencClaims in excess of these amounts areinsured with commerical carriers and theState Compensation Insurance Fund. It is tDistrict's policy to provide, in each periodreserves to cover the estimated charges fothe self-insured portion of these claims.

Pensions-The District has a pensionplan covering all union employees andprovides similar retirement benefits fornon-union employees . In accordance with tterms of the current agreement with theAmalgamated Transit Union, annualcontributions (provisions in the financialstatements) by the District to the union plare to be made atthe discretion of the Distriexcept that they shall not be less than$552,000. The pension provisions for 1974($1 ,305,000) and 1973 ($797,000) were basprincipally on percentages of gross payroas reviewed annually by theBoard of Directors .

These funding practices do no t providfor complete funding of future pensionliabilities. Based on the latest actuarialvaluations, the 1974 provision for pensionsestimated to be $1,200,000 less than theminimum provision for 1974 as determineunder generally accepted accountingprinciples. The 1973 provision was estimatto be $1,300,000 less than the minimumprovision fo r that year. Correspondingly ,accrued pension costs at June 30, 1974and 1973 are $3,100,000 and $1 ,900,000less than the minimum amounts required

The unfunded prior service cost of theplans at December 31 , 1973, the date of tmost recent actuarial valuations, wasapproximately $25,500,000. The actuariallcomputed value of vested benefits is notdetermined under the actuarial cost methused. Increased pension benefits includedthe September, 1974 agreement with theAmalgamated Transit Union have not beereflected in the actuarial determinations.


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ALAMEDA-CONTRA COSTA TRANSIT DISTRICTSPECIAL TRANSIT DISTRICT NO.1STATEMENT OF REVENUE,EXPENSE AND CAPITALYears ended June 30, 1974 and 1973Revenue:PassengerCharterAdvertisingInterest earned

Other operationsExpense:

TransportationMaintenanceDepreciation and amortization (Note A)Operating taxes and licensesAdministrative and generalWelfare and pensions (Note A)Insurance and safetyPublic information and advertisingOperating lossNon-operating items:Proceeds from taxationLocal transportation funds (Note B)

Less :Provisions fo r current year'sredemption of bond principalInterest and fees on bonded debtNet proceeds from taxationavailable for operations

Increase (decrease) in equity afterprovision for bond principal redemptionCapital :Balance at beginning of yearRestoration of provision for bond

principal redemption deducted aboveFederal grant funds for capitalacquisitions (Note C)

Balance at end of yearSTATEMENT OF CHANGESIN FINANCIAL POSITIONYears ended June 30, 1974 and 1973Sources of working capital:Proceeds from taxationLocal transportation fu ndsFederal grant fundsSale of equipmentApplications of working capital:

Operating lossLess depreciation and amortizationInterest on bonded debtCurrent installments due on bonded debtCurrent installments on lease-purchase agreementAcquisition of property, plant and equipment

Increase (decrease) in working capitalSummary of changes in working capital:CashU.S. Government securitiesAccounts receivable

Other current assetsAccounts payable and accrued liabilitiesAccrued pension costsSelf-insu rance reservesAmount due within one year on long-term debt

Increase (decrease) in working capitalSee accompanying notes.

1974

$16,575,903686,070184,373618,29150,98118,115,618

21,367,4053,851,3141,599,8011,280,9711,674,3713,069,0091,203,417331,97634,378,26416,262,6469,855,9994,434,974

(920,833)(220,029)13,150,111(3,112,535)11,682,621

920,8331,597,478

$11,088,397

1974

$ 9,855,9994,434,9741,597,47814,15115,902,60216,262,6461,599,80114,662,845220,029925,000

2,508,69518,316,569

$(2,413,967)$(4,542 ,397)2,484,392323,51570,551(371,319)(627,488)(67,000)315,779$(2,413,967)

1973

$15,068,502618,932227,952399,752195,92616,511,064

16,878,4423,255,1491,456,366941,9361,327,5202,204,3301,015,730300,63227,380,10510,869,0419,315,4973,417,185

(895,833)(245,069)11,591,780

722,7398,364,919

895,8331,699,130

$11,682,621

1973

$ 9,315,4973,417,1851,699,13028,21514,460,02710,869,0411,456,366

9,412,675245,069900,000340,7792,577,78813,476,311

$ 983,716$ (646,169)2,286,22266,1754,030(271,605)(196,938)(233,000)(24,999)$ 983,716

The District 's consulting actuary haspresented a proposal under which annualcontributions to the plans as a percentageof gross payroll would be increased ratablyover a five-year period . This program woulresu It, in 1979, in a contribution rate whichwould provide fo r normal cost of the plansand amortize unfunded prior service overa period of forty years from that date. TheBoard of Directors has approved contributions under this program for theyears ended June 30, 1974 and 1975.

Federal contributed capital-The Distriperiodically receives federal grants fromthe Urban Mass Transit Administration of thU.S. Department of Transportation for theacquisition of motor coaches and otherequipment and improvements. Federal granfunds earned , less the related portion ofdepreciation on the assets , is creditedannually to federal contributed capital.Changes in federal contributed capital forthe years ended June 30, 1974 and1973 are as follows :

1974 1973Balance at

beginning of year $2,602,574 $1,052,528Federal grant

funds earned 1,597,478 1,699,130Depreciationcharges included

in operatingexpenses,transferred fromDistrict equity (258 ,972) (149,084

Balance atend of year $3,941 ,080 $2,602,574B. Local transportion funds

Pursuant to the TransportationDevelopment Act of 1971, the Districthas received an apportionment of localtransportation funds generated withinAlameda and Contra Costa Counties to meein part, its operating and capital requirements. The funds are apportioned based oan annual claim filed by the District andapproved by the Metropolitan TransportatioCommission . Local transportation fundsare used for operating expenses, principaland interest on bonded debt and the acqusition of property , plant and equipment.C. Federal grantsThe District currently has two grantsin process from the Urban Mass TransitAdministration which provide federal fundfor the acquisition of motor coaches andother equipment and improvements over afive-year period th rough 1977. Budgetedcapital additions applicable to the grantprojects are $12 ,922,312. The related federparticipation is two-thirds , or $8,614,874,of which $3,395,588 had been earned at Jun30, 1974. In connection with the grantprojects , the District has contracted topurchase 120 new motor coaches at a cosof approximately $5,443,000, of whichtwo-thirds will be provided by federal fund

At June 30,1974, motor coaches andother equipment with a cost of $7,277,000had been purchased under federal grants.Under the terms of the grants , two-thirdsof the proceeds f rom equipment soldduring its useful life is refundable to thefederal government unless reinvestedin like equipment.


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ARTHUR YOUNG & COMPANY

The Board of DirectorsAlameda-Contra Costa Transit DistrictSpecial Transit Service District No . 1

1330 BRO ADWAYOAKLAN D , CA L I FORN IA 9 4 6 1 2

We have examined the accompanying balance sheet of Alameda-Contra CostaTransit District , Special Transit Service District No.1 at June 30 , 1974 and the relatedstatements of revenue, expense and capital , and changes in financial positionfor the year then ended . Our examination was made in accordance with generallyaccepted auditing standards , and accordingly included such tests of the accountingrecords and such other auditing procedures as we considered necessary in thecircumstances . We have previously made a similar examination fo r the prior year.

As explained in Note A, accrued pension costs at June 30, 1974 and the relatedpension provision for the year then ended are respectively $3,100,000 and $1 ,200 ,000less than the minimum amounts required under generally accepted accountingprinciples . The pension accrual and provision for 1973 were respectively $1,900,000and $1,300 ,000 less than the minimum amounts required.

In our opinion , except as stated in the preceding paragraph , the statementsmentioned above present fairly the financial position of Alameda-Contra Costa TransitDistrict. Special Transit Service District No. 1 at June 30 , 1974 and 1973 and the resultsof operations and changes in financial position for the years then ended , in con-formity with generally accepted accounting principles applied on a consistentbasis d u ri ng the peri od .

Arthur Young & CompanyOakland , CaliforniaDecember 13, 1974

A "Save Gas" poster, developed anddistributed by AC Transit, encouraged EastBay residents to use public transportation toget to work. The message was posted bybusiness firms, retail stores and city andcounty offices during the energy crisis.


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@t;tanayement

Alan L. BinghamGeneral Manager

Assistant General Managerfor Personnel anager

res Manager

nTransportation Manager

LawrenceDist ct Secretary andAdministrative Projects Manager


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fC Transit508 16th StreetOakland, California 94612

AC Transit Annual Report 1973-1974

Documents

Transcript of AC Transit Annual Report 1973-1974