11/13/1951 Meeting - Laserfiche WebLink

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~ 5~1 -I -- ,-----. ._~-- -, _._--_.- -- -,-- <".",>._~,.. '......".._~.,~....~. -- " - - .-- _. - " --~- _. -,-, .-- .-...',. ._.- - .- -.---, _.~- - - --, .---- '. -'~.-., .-- ...- - Y' ~.. ..,...._.. "---'- -. - ~ '-'- . .,,__ u _..__ _.o....,.~ ,_..__ .__. _., . '-'_.'--- .... 12 COMMUNICATION FROM CITY TRANSIT LINES - RE: INCREASE IN FARES WAS SUBMITTED AND READ AS FOLLOWS: "IN ACCORDANCE WITH THE PROVISIONS OF OUR FRANCHISE, THE CITY TRANSIT LINES IS HEREBY MAKING APPLICATION FOR AUTHORIZATION TO INCREASE THE lOCAL BUS FARES WITHIN i THE CITY OF EUGENE. THIS IS A STEP WHICH WE HAVE ATTEMPTED TO AVOID BY FORMULATING I OPERATING ECONOMIES DURING THE PAST YEAR, BUT NOT WITHSTANDING THE DECREASE I N COSTS RESULTING FROM THESE ECONOMIES, THE CITY TRANSIT LINE HAS BEEN CONSTANTLY OPERATING AT A lOSS DURING THIS YEAR. IT I SOUR OPINION THAT ANY CUTS IN SERVICE TO THE PUBLIC WOULD BE FAR MORE DISTASTEFUL AT THIS TIME, THAN A SLIGHT INCREASE IN THE DAILY RATE OF FARE. I SINCE THE LAST INCREASE IN FARE WHICH TOOK EFFECT IN JULY OF 19.1!9, THERE HAVE I I BEEN TWO INCREASES IN WAGES TO OUR EMPLOYEES, A 50 PER CENT INCREASE IN THE COST OF I TIRES, A 30 PER CENT INCREASE IN THE COST OF GASOLINE AND OIL, AND 200 PER CENT I I INCREASE IN THE C OS T OF INSURANCE. WHILE THESE INCREASES WERE BEING SUSTAINED, THE REVENUE PASSENGERS HAVE DROPPED FROM 3,204,147 FOR THE FIRST NINE MONTHS OF 1949, TO , ! 2,048,259 OUR I_NG THE FIRST NINE MONTHS OF 1951. THIS IS A DECREASE OF I , 155,888 I REVENUE PASSENGERS IN TWO YEAR'S TIME, OR A DECREASE OF 36. I PER CENT. COMPARED TO I PASSENGERS CARRIED IN 1950, IN THE FIRST NINE MONTHS, THE CITY TRANSIT LINE CARRIED 2,586,358, THE DECREASE OF THIS YEAR OVER lAST YEAR, FOR THE FIRST NINE MONTHS AMOUNTING TO 538,099, REPRESENTING 20.9 PER CENT. I I ATTACHED TO THIS lETTER IS A FINANCIAL STATEMENT OF THE CITY TRANSIT LINES FOR THE FIRST NINE MONTHS OF 1951 . EXAMINATION OF THIS STATEMENT Will SHOW YOU THAT THE I REVENUE FROM OPERATIONS HAS FAilED TO MEET "OUT OF POCKET COSTS, " IN THE AMOUNT OF $3,125.79. As YOU KNOW, "OUT OF POCKET COSTS" ARE THOSE COSTS DIRECTLY CHARGED TO ! OPERATION. THE DEPRECIATION CHARGED, NECESSARY AS IT IS, IS NOT INCLUDED IN THESE I FIGURES AS YOU WilL NOTE FROM THE STATEMENT. DEPRECIATION CHARGES FOR THE FIRST I NINE MONTHS, IF EARNED, WOULD HAVE AMOUNTED TO $34,707.94, MAKING A TOTAL OPERATING i I lOSS FOR THE FIRST NINE MONTHS OF THIS YEAR, IN THE AMOUNT OF $37,833.73. IT IS THEREFORE, QUITE EVIDENT THAT THE COMPANY CANNOT CONTINUE TO OPERATE IN THE FACE OF I SUCH A CONTINUING DEFICIT. WE MIGHT FURTHER STATE THAT FOR THE PAST TWO YEARS THE CITY TRANSIT LINES HAVE NEVER EARNED THE NECESSARY DEPRECIATION FOR THE RETIREMENT I , AND REPLACEMENT OF ITS EQUIPMENT. i I I FOR I YOUR FURTHER I NFORMA T ION, THROUGH OPERATING ECONOMIES AND SCHEDULE CHANGES, I , THE CITY TRANSIT LINE OPERATION I N SALEM, OREGON, IS OPERATING AT APPROXIMATELY THE I I SAME RATE OF REVENUE PER MILE AS IS OBTAINED IN EUGENE. THE ACTUAL FIGURES FOR.THE I FIRST NINE MONTHS OF 1951, SHOW THAT THE OPERATING REVENUE PER MilE IN SALEM, IS i .3058 CENTS PER MILE, AND THE OPERATING REVENUE IN EUGENE, IS .3057 CENTS PER MilE, I i I FOR THE SAME PERIOD. I i I NORDER TO ATTEMPT TO BALANCE OUT-GO AGAINST INCOME, THE CITY TRANSIT LINE ! I PROPOSES THE FOLLOWING RATE OF FARE TO BE APPLIED LOCALLY IN THE CITY OF E GENE. I I I I I THE PRESENT 10~ CASH FARE WITH FREE TRANSFER, TO BE I INCREASED 12~ CASH, FOUR I TO WITH A RIDE TICKET TO BE ! OFFERED AT THE RATE OF FOUR RIDES FOR 45~ , AND FREE ! TRANSFER PRIVilEGES. i I I I I THE NET EFFECT OF THIS INCREASE IN FARES, PROVIDED THE SAME VOLUME OF BUSINESS i 1 IS MAINTAINED WILL, ACCORDING TO OUR BEST JUDGMENT RESULT IN AN OVER ALL PERCENTAGE I 11-1/2 PER I INCREASE TO OUR PATRONS OF CENT. THIS FIGURE IS ARRIVED AT BY ESTIMATING I THAT 65 PER CENT OF OUR REGULAR PATRONS WilL TAKE ADVANTAGE OF THE lOWER TICKET RATE I OFFERED UNDER THE NEW PROPOSAL. WE DO NOT BELIEVE, IN FACE OF EXISTING CONDITIONS, I THAT THIS IS AN EXCESSIVE INCREASE IN THE RATE OF FARE, AND IN ORDER TO FORESTAll FURTHER CUTS IN SERVICE TO THE PUBLIC, PARTICULARLY THOSE WHO ARE ABSOLUTELY DEPENDENT. UPON THE BUSES FOR TRANSPORTATION, WE SINCERELY HOPE THAT YOUR HONORABLE BODY WILL GRANT THIS APPLICATION FOR AN INCREASE IN FARE, TO BECOME EFFECTIVE DECEMBER I , 1951. " I I IT WAS MOVED BY CRUMBAKER, SECONDED BY SMITH RECEIVED AND I THA T THE COMMUNICATION BE i PLACED ON FILE, AND THAT PROPER ORDINANCE BE DRAWN FOR CONSIDERATION BY THE COUNCIL. MOTION CARRIED. I 13 COMMUNICATION FROM C.A.A. - RE: AllOCATION FOR EXPANSION OF ADMINISTRATION BUilDING I AT MAHlON SWEET FIELD WAS READ AND RECEIVED. i I I i . 14 COMMUNICATION FROM EUGENE AND VAllEY AMBULANCE SERVICES - RE: REQUEST FOR TRANSMITTER ! I STATION IN HENDRICKS PARK WAS SUBMITTED. , MOVED BY BOOTH, I IT WAS SECONDED BY WATSON THAT .THIS COMMUNICATION BE REFERRED TO THE I CITY MANAGER TO DETERMI NE IF THIS IS PERMISSIBLE AND Will NOT CONFLICT WITH PRESENT TRANSMITTER FACiliTIES IN HENDRICKS PARK. MOTION CARRIED. I I 15 COMMUNICATION FROM STATE LAND BOARD - RE: ISSUANCE OF QUIT CLAIM DEED TO M. S. BARKER I WAS SUBMITTED. ! I I I IT WAS MOVED BY CRUMBAKER SECONDED BY BOOTH THAT THE COMMUNICATION BE RECEIVED AND PLACED ON FILE, AND THA T THE DEED BE ISSUED. MOTION CARRIED. ~....:.ii;~_~"'; .".-.' ~.;;c;;.""-.""~.:;.;",,',.~',......~~~l'_"_,_~'~'_,,,;""~.,,:,,;,,..~~.':',...;;...,._.-,.;..,,:..;..l.~'''<.::6.....'~',--:. ~,_ ,.~."__..'~__,~.....,,...,:,_,.. 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