AC Transit Annual Report 1962-1963

8/14/2019 AC Transit Annual Report 1962-1963

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ANNUAL REPORT1962/1963


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ANNUAL REPORT1962/ 1963

BOARD OF DIRECTORSRobert M. CopelandPresidentWilliam H. Coburn, Jr.Vice Presiden tRobert K. BarberResigned Ja nu ary 30.1963William E. BerkWilliam J. BettencourtJohn L. McDonnellRa y H. RinehartAppoin ted March 27. 1963E. Gu y Warren

Members of Board of Directors study one of many proposals fo r improved service recommended fo r considerationduring the year. Seated, left to right : Vice President William H. Coburn, ,r ., President Robert M. Copeland an d William ,.Bettencourt. Standing, left to right: E. Guy Warren , 'ohn L. McDonnell, William E. Berk an d Ray H. Rinehart.

ADMINISTRATIVE OFFICERSKenneth F. HenselGe ner a l M anage rRobert E. NisbetA tt orneyGeorge M. TaylorSecretaryJohn F. LarsonT reasu re r- Co n tro I erAlan L. BinghamPu bli c Inform ation Manager

THE COVER- City of Albany is second East Bay community in a lphabetical order to be recognized in AC Transit annua l reports fo r contributionto progress of th e District. Like other sister cities , Albany ha s an en viab le "past an d a present." First inhab i ted by Indians, th e ci tyalso knew a romantic in te rlude of Spanish occupancy b efor e becoming a " city of homes." Albany . with a popu lation of 19.000. standsas a symbo l of successfu l , cooperative living. Hom e ow n er s are happy with their surro un di n gs , located on th e sh o reline of Sa nFrancisco Bay. A growi ng indust r ia l area adds to th e city's eco n omy; research centers provide employment, in terest a n d ac hievement. Albany Hill stands as a lan dmark on he r we s ter n bo un da ry. A n d Golden Gate Fie lds , a n ationall y -know n horse rac ing trac k ,brings v isitors from far and wide - forming a pa n oramic backdrop with the Go lde n Gate Bridge for AC T ransit express buses speedin galon g Eastshore Freeway.


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TO THE CITIZENS OF THE TRANSIT DISTRICT:

The Board of Directors proudly reports another year of accomplishment.We have fulfilled our fundamental objectives, have provided you with anexcellent bus system, better service and efficient and pleasant transportation.The network of bus service, owned and supported by you as patrons and taxpayers, shows steady growth. It proves that people will use public transportation when it is efficient, comfortable, economical, taking them when andwhere they want to go.

With this growing and effective public transit system, we have had nationalacclaim for our high quality of passenger service and our patronage gains. Thetransit industry, faced with a continuing loss of riders, generally looks to usin the East Bay now for ideas. Elements of our success are, simply: We aregiving the public service it needed and wanted, and the public responds withhelp, friendliness, appreciation and warmth far more than mere "support."

Your system's growth as shown in figures is demonstrated better by thefleet of modern buses now on our routes; by service expanding to every cotnerof the district; by constant improvement and by the steady rise in passengertrips.

Out of possibly 450,000 available riders, only about 100,000 daily makeround trips. At the same time our expenses-like most-have continued torise, faster than revenues due to growth.

Operating costs for the year of $12,369,500, gaining 8.4 per cent on lastyear, were covered by operating revenues of $12,739,800. Not enough remained to cover purchase of ne w equipment for replacing old buses, to servenew areas, and to pay the full year's share on the District's bond issue cost.The District did break even on the current year's Estimate with funds fromprior-year operations and savings from a new self-insurance program. So, forthe year we did give citizens of the District a real benefit-bargain fares onone of the nation's best transportation systems.

In the year to come are more challenges-an Estimate with a tax increasefor necessary progress-addition of at least 30 new "Transit Liner" coachesto your bus fleet - expansion of service to areas needing it - more speedgreater efficiency-and greater use of our entire system.

Without the remarkable and gratifying help of the public, the Governor,Bay area newspapers, chambers of commerce and other civic organizations,labor groups, and city, county and state representatives, this tax increasewould have been greater. This bill to put AC Transit out of charter bus servicevetoed in May by Governor Edmund G. Brown, was a measure cutting an

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important source of revenue from District operations and adding to tax problems. Perhaps of greater significance, from the point of personal rights, itwould have prevented you, as private citizens, from chartering your ownbuses.

By re-election in November. four incumbent members of the Board werereturned to service by sweeping majorities. Director William J. Bettencourt,San Leandro business executive, as Board President completed two yearswhich encompassed much of the District's outstanding history of operation.

Veteran board member, Robert K. Barber, left to accept appointment asJudge on the Oakland-Piedmont Municipal Court bench. To fill Mr. Barber'sunexpired term as Director-at-Large, Ray H. Rinehart of Piedmont, certifiedpublic accountant, was appointed-bringing experience as a laboring man andbusiness executive, with long dedication to public service.

We are optimistic about the year ahead, our third full year of operations .We are determined to provide the best possible bus service, meeting obliga-tions of the present and the future. We plan to take advantage of new ideasand new ways to improve transit with day-to-day efficiency. We believe moreof you can find satisfaction riding your own buses.

Central Dispatch keeps buses moving. Withai d of radio network, calls send supervisorswherever assistance is needed.

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BOARD OF DIRECTORSr C ~ ~ - ~ j Robert M. CopelandPresident


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REVIEW OF THE YEAR BY THE GENERAL MANAGER

The past fiscal year has been a busy year, and a yearof change. It marked the completion of one stage ofAlameda-Contra Costa Transit District development- the completion of basic plans for transit modernization. I t has also been a year in which the energies andresources of the Board of Directors and the staff of theDistrict have turned toward new objectives, towardbetter ways of doing things, toward refinements inservice and development of new ideas. These effortshave gone fa r toward reestablishing the habit ofutilizing public transit. We have proceeded during theyear toward these objectives:o Improving service in keeping with the changing

needs of the public, including the streamlining andrerouting of lines to adjust to population changes.

o Planning services for areas of potential annexation,looking toward future needs.o Studying latest improvements in equipment, withthe purpose of obtaining buses needed for presentand future service which can provide the utmostin comfort, safety and efficiency.o Achieving levels of maintenance which reflect goodpractice, while reducing costs.

o Establishment of improved standards in employ-ment practices ; driver training and supervision de-signed to improve technical skills and safety-andalso to develop the important attitudes of courtesyand service which have resulted in congenial rela-tions between operators and passengers.

o Achieving increased riding through constant im-provements and through programs of advertising,public relations and promotion to keep the publicfully informed of District activities.

PASSENGER REVENUEImprovements in service an d equipment, togetherwith an aggressive promotion program have continuedto account for the increased use of transit here in theEast Bay despite the downward trend experienced bymost of the nation's transit properties.

During the past year we carried 51,710,155 riders,

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a growth of 3.45 per cent. Nationwide, patronage de-clined an average of 2.45 per cent.Passenger revenue totaled $12,392,647, an increaseof $479,208 or 4.02 pe r cent over the 1961-62 fiscal year.On our East Bay lines, revenue increased 3.39 per

cent, while transbay operations showed an increaseof 5.11 per cent.Transbay operations were stimulated during halfof the year by the State's continuance of an exclusive

bus lane on the lower deck of the Sa n FranciscoOakland Bay Bridge which gave homeward boundcommuters an unhindered ride during the peak ofcongestion. With the help of this traffic-free lane,transbay patronage boomed, as indicated by a 9 percent increase in commute book sales during the cal-endar year of 1962 when the lane was in use by buses .Although the exclusive lane was opened to all trafficin February of this year, during construction repaving,buses have continued to move freely, resulting in aspeed-up in travel time on most trans bay lines.

Transbay commute travel has continued to grow,as indicated by the increase in commute book salesfor the fiscal year , up 6.3 per cent over the year before.To maintain this growth, efforts are being made tohave established a permanent exclusive lane on thebridge during commute hours, after the full recon-struction program is completed.MAJOR IMPROVEMENTSService expansion has continued on three majorfronts : improvements to transbay service, includingextensions into ne w areas; establishment of newneighborhood lines and improvements and extensionsto existing local and trunk lines; improvements andadditions to the area's system of intercity expressservice.By the end of the fiscal year, the District ha d in-creased its total local mileage from 15,172,200 to15,577,200, a boost of 2.67 per cent. Transbay mileagehad grown from 6,677,000 annual miles to 6,901,600,an increase of 3.36 pe r cent. In all, the District oper-ated 22,478,800 miles of scheduled service .


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Four new lines were inaugurated, including twonew East Oakland lines; new service to Leroy Heightsand San Pablo and a new intercity express line-thefifth for the district-to Washington Manor and Bonaire.

In addition, "Sunshine Specials" were put intooperation in June to provide the first public transportation to hill area activities at Charles Lee TildenRegional Park and the Thomas J. Roberts_!ecreationalarea.New service included inauguration of Line 83-A,to provide direct service between downtown Oaklandand Metropolitan Oakland International Airport. Theother, Line 83-B, operates via East 14th St. to 98thAve., then via 98th to MacArthur Blvd., to bring transi t to that residential area. Inauguration of Line 70brought service to residents of Leroy Heights andSan Pablo and improved transportation for studentsattending Contra Costa College.

With the addition of Line 36 to provide peak hourintercity express service between downtown Oakland,Washington Manor an d Bonaire, the District's totalof one-way express route miles was boosted to 67.6miles. The growth of express lines has been fairlysteady, showing a revenue increase of 19.68 per centover a year ago .In addition, there were service improvements onalmost every linB; including extensions, additionalschedules and more frequent service. Greater use wasmade of the MacArthur and Nimitz Freeways, withresulting speed-up in transbay operations. CastroValley residents were given their first direct transbaycommute service. through an extension of a commuterbranch of Line R. El Sobrante received direct transbayservice through inauguration of a Line L express.Opening of the historic Northbrae railroad tunnelto surface traffic revived a transportation tradition of50 years standing an d gave riders on Line F -Berkeleyand Line 33 - Berkeley Express faster and more directservice between North Berkeley and the downtownarea .Opening of historic Northbrae Tunnel in Berkeley gives AC Transitfaster route for transbay and intercity express service.

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PASSENGERS. R EVENUE. MILEAGE0/ 0

REVENUE PASSENGERS 1962-63 1961-62 CHANGEEast Bay 40,999,107 39,700,200 + 3.27Transbay . 10,711,048 10,286,399 +4.13

PASSENGER REVENUEEast Bay $7,791,556 $7,536,228 + 3.39Transbay $4,601,091 $4,377,211 +5 .11Charter $ 233 ,332 $ 232,485 + .36

VEHICLE MILESEast Bay 15,577,203 15,172,234 +2 .67Transbay . 6,901,584 6,677,036 +3 .36

Treasure Island service was expanded into th eNaval Base, as a result of change in Navy policy. Atthe same time, basic fares for the island service werebrought into conformity to- help pay for the 20,000additional annual miles involved in the expandedservice .

Typical of the District's program of taking a "newlook" at each line, Line C-Piedmont Express servicewas rerouted to the MacArthur Freeway, cutting traveltime by one-third between Piedmont and San Francisco, while bringing transbay commute service to the


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"Parade of Progress" introduces 30 new Transit Liners in longest bu sparade in East Bay history.

new area of Oakland Ave. and Harrison St. Basic LineC operations, at the same time, were extended into thecenter of Piedmont, changing that community's statusfrom the only city in the District which did not havetransbay service to the main part of the community.OTHER DEVELOPMENTSThe fleet of new buses continued to grow, with another 30 pu t into operation after a mile-long paradethrough the cities served by the District. Of the 280new coaches, 112 are air-conditioned for use on trans-

bay, intercity express and major trunk lines. Bids wereauthorized for the acquisition of an additional 30 newcoaches, at an estimated cost of $820,000 after conclusion of a study into latest innovations in motocoach design. At the end of the year a total of 636buses were in operation.

Rehabilitation of al l usable equipment acquiredfrom Key System Transit Lines was completed andthe last of the Key System orange made its appearance on East Bay streets on November 2.

Southern Alameda County residents received theadvantage of a five cents reduction in fares betweenSan Francisco, Hayward, Castro Valley, San LorenzoPalma Ceia and parts of San Leandro, when savingsfrom repeal of the 10 per cent Federal transportationtax were passed along to riders.A transit plan for the cities of Fremont, Newarkand Union City, designed to help solve the transportation needs of Washington Township, was presentedby the engineering firm of DeLeuw, Cather & Co. aftean eight-month study jointly financed by AC Transi

MAJOR EXPENSES AND REQUIREMENTS1962-63 1961-62

AMOUNT PERCENT AMOUNT PERCENSalaries, Wages and Fringe Benefits $9,453,780 65.30 $8,639,921 65.43Bond Principal and Interest 1,214,218 8.39 966,023(1) 7.33Taxes an d Tolls 925,381 6.39 839,627 6.36Provisions for Equipment Renewal 892,963 6.17 829,861 6.28Claims . 274,930 1.91 467,984(2) 3.54Fuel and Oil 455,815 3.15 434,106 3.29Materials and Supplies 523,658 3.62 395,225 2.99Tires and Tubes 178,668 1.23 187,578 1.42Insurance. 162,703 1.12 145,431 1.10Public Information and Advertising 121,901 .84 122,777 .93Miscellaneous 272,701 1.88 176,136 1.33(1) Bond interest expense chargeable to operations commenced September 1, 1961 .(2) Figure no t comparable with 1962-63; District commenced self-insurance program January 1, 1962.

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and the three cities. The plan, still under study by theofficials of the cities, proposed annexation to the District and inauguration of four local bus lines in thetri-city area.INNOVATIONSFree bus rides were being provided fo r Berkeleyshoppers through a unique "Ride & Shop" validationplan developed by AC Transit and the Berkeley Downtown Center, representing more than 40 downtownBerkeley concerns. The courtesy, offered first on atwo-month trial period, was extended at the requestof participating firms as a result of shopper enthusiasm-and nationwide interest in the experiment.Success of the Sunday and Holiday excursion pass,which allows riders to travel at will on any line in theEast Bay for 60 cents, resulted in a decision by theDirectors to continue the pass on a year-round basis.As a good neighbor gesture, the District commencedselling Sunday passes of the San Francisco MunicipalRailway at the Transbay Transit Terminal for the convenience of its East Bay passengers who wanted togo sightseeing in San Francisco.

Another experiment in passenger service, establishment of a "Park & Ride" center in Berkeley, continued to draw capacity parkers and was improvedand enlarged, with a new stairway erected and busloading zone moved to accommodate the drivers whowere leaving their cars to board Line F and Line 33express buses.

Additional "Park & Ride" facilities were madeavailable at the Fairway Park Shopping Center, Mission Blvd. and Gresel St., at the southern limits ofHayward, through cooperation of the Toro Development Co.San Pablo Station, busy transfer point in Emeryville for more than half a century, got the modernlook as a result of the district's program to erect passenger shelters in appropriate locations. The ne wshelter, built at 40th st. and Yerba Buena Ave., is of

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Buses travel from Bay Bridge into Transbay Transit Terminal in SanFrancisco on exclusive elevated roadway.

"butterfly roof" design and large enough to accommodate two buses and the many passengers who makeuse of this point for local and transbay service.

Special services operated by the District during theyear included "opera coaches" to the summer lightopera series at Woodminster Theater; football specials to Youell Field for the home games of the Oakland Raiders; racing specials to Golden Gate Fields inAlbany and increased service to the home games atthe University of California.

One of the District's most complicated weekendoperations also turned out to be one of its biggest,when buses carried 44,000 passengers to open houseand dedication ceremonies at the new MetropolitanOakland International Airport. The service was swift,smooth, carried off without a delay-and without asafety mishap.A new radio communications system was acquiredby the District, with the old-style wide-band FM radioconverted to narrow-band FM, in accordance withFCC regulations. The station at 1106 Broadway wasabandoned, along with satellite receivers at Emery-


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ville and Seminary divisions and a new base stationwa s installed on Round Top Mountain in the Berkeleyhills.ATTAINMENTSA ne w labor contract, which became effective Decembe r 1, 1962, wa s reached after nine weeks of bargaining, giving both the public an d union members assurance of labor peace for the next two and a half years.It awarded bus drivers a 32-cent hourly wage increase over the period in a three-step wage hike andliberalized retirement provisions and increased health,welfare and other benefits. Th e agreement alsoboosted wages for other organized employees. Inaddition, supervisory personnel and non-union officeemployees were voted comparative salary increasesand benefits over the same period, effective January 1of this year. The contract with the union raised thedistrict's costs by $1,819,500 over the life of the agreement, while benefits to non-union personnel boostedcost by $57,200 annually. In May, clerical workersdecided to remain unorganized by rejecting membership bids from two labor unions.

The public and workers were provided with moremodern and efficient facilities when th e Districtmoved its general headquarters to the Latham SquareBuilding at 16th St. and Telegraph Ave. Decision tomove from the building at 1106 Broadway, used bythe Key System since 1943, was made after a committee investigated more than 40 proposed sites anddecided public money could be saved by obtaining

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additional space, improved building service and amore efficient layout. As a result of the move, all public transit needs are now being handled at one locationthrough a customer's service bureau, which includestoken and Sunday pass sales , information, schedulesand lost an d found.

One of the coveted awards of the industry, the 1962Fleet Owner Maintenance Efficency Award, was presented to the District for its excellent maintenanceperformance, in competition with other leading transibus operators.

Stepped-up conceiItration on safety and trainingresulted in an increase of 5.27 per cent in miles operated per accident, as compared to the previous fiscayear. Some 490 bus operators, who completed 12 consecutive months of safe driving while maintainingsatisfactory attendance records, were presented withgold pins during annual ceremonies in October.

The purchasing department spent a busy yearusing 2750 purchase orders to 452 vendors for materials, supplies, capital improvements and replacements necessary to maintain stores stock of approximately 8000 items. Among major orders handled were4,000,000 gallons of diesel fuel, 50,000 gallons omotor oil, 464,000 gallons of gasoline; an d 28,000,000transfers were purchased.RELATIONS WITH PEOPLEWe have continued to make full use of newspaperradio and billboard channels to keep the public informed about its bus system and improvements beingmade, and to maintain a most important asset, a relationship with passengers which has been mutuallypleasant and gratifying.To help residents make the most of its transportation possibilities, the District distributed free guidebooks during the year, pointing the wa y to "TransiTrails" of adventure. It also prepared, for the summeof 1963, a similar 32-page "Sunshine Trails" bookletfeaturing 14 illustrated bus tours. A ne w edition oSleek streamlining of AC Transit buses contributes modern functionaappearance to entrance of 28-story Kaiser Center beside Lake Merritt


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the route map, showing expanded service, was distributed-and work begun on another edition, to keepup with constant District improvements and expansions.In line with the District's growth in service, the

Transit Information Bureau was expanded to a staffof 14 to increase the already noteworthy efficency ofthe question-answering service.FINANCESWe have continued to maintain our role as one of thefew major transport properties to enjoy a healthy andsteady patronage growth and financial results of thepast twelve-month period were heartening and favorable. However, operating expenses have increasedmore than the growth of passenger revenue . Our revenue for the next year will be sufficent to meet theseexpenses, but will not pay for the interest and principal on the bonded debt, no r for the ne w equipmentand service improvements we are pledged-and determined-to continue.

We will continue to strive to do a better job, tooperate more profitably, employing techniques to increase administrative efficiency, as well as operatingefficiency. We plan to continue ou r high level ofservice and our program of evaluating and perfectingpresent bus service. We plan to maintain our presentfare structure , to initiate no major expansions or newlines unless the prospects are favorable for them tobe self-supporting within a relatively short period oftime.As General Manager, I again wish to thank the1 ,44 9 men and wom en of AC Transit who haveworked enthusiastically, and often beyond expectedlimits, to further the District's growth and well-being.

K. F. HenselGeneral Manager

FAST express bus service goes into operation with opening of newMacArthur Freeway.

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ALAMEDA-CONTRA COSTA TRANSIT DISTRICT Special Transit Service District No.1COMPARATIVE BALANCE SHEET JUNE 30,1963 and 1962EXHIBIT A

ASSETS

1963 1962CURRENT ASSETS:

Cash :On hand and in commercial accounts $ 556,668 $ 579,777Time deposits (of which $500,000 is reserved

for self-insured claims settlements) . 1,595,358 $ 2,152,026 1,967,360 $ 2,547,137Accounts and accruals receivable 110,552 119,284Investment in U. S. Treasury obligations,

at amortized cost which approximatesmarket value 315,111 942,276Prepaid expense:

Materials and supplies $ 200,751 $ 178,181Insurance and other . 119,482 320,233 129,484 307,665

Total current assets $ 2,897,922 $ 3,916,362

PROPERTY, PLANT AND EQUIPMENT-AT COST:Property and equipment acquired

October 1, 1960-Note 1 $ 7,516,559 $ 7,516,559Less accumulated amortization 925,712 $ 6,590,847 595,917 $ 6,920,642

Other property and equipment:Motor coaches $ 8,507,051 $ 7,712,460Parts, service cars, shop and

miscellaneous equipment 92,342 69,709Office furniture and equipment 28,414 26,842

Subtotal $ 8,627,807 $ 7,809,011Less accumulated depreciation 1,305,320 7,322,487 722,305 7,086,706

Total property, plant and equipment-net $13,913,334 $14,007,348Total assets $16,811,256 $17,923,710

The accompanying notes are an integral part of this statement.

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LIABILITIES AND ACCUMULATED NET REVENUE

CURRENT LIABILITIES:Accounts payableSalaries and wages payablePayroll taxes collected and accruedProvision for public liability claims-self-insured portion-Note 2Accrued interest on general obligation bondsUnredeemed tickets and tokensOther current liabilities

Total current liabilities

GENERAL OBLIGATION BONDS-NOTE 3:

1963

$ 239,925183,334185,391

195,79674,03512,293

$ 890,774

1962

$ 233,106166,835187,123

272,220207,796

64,30211,623

$ 1,143,005

Maturing within one yearMaturing after one year

$ 625,000 $ 600,000

ACCUMULATED NET REVENUE-EXHIBIT B

Total liabilities andaccumulated net revenue

15,275,000 15,900,000

20,482

$16,811,256

The accompanying notes are an integral part of this statement.

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15,900,000 16,500,000

280,705

$17,923,710


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ALAMEDA-CONTRA COSTA TRANSIT DISTRICT Special Transit Service District No.1COMPARATIVE STATEMENT OF REVENUE, EXPENSE ANDACCUMULATED NET REVENUE For the Years Ended June 30,1963 and 1962EXHIBIT B

REVENUE:PassengerCharterAdvertisingOther operations

Total operating revenue .Proceeds from taxationTotal revenue

EXPENSE:Maintenance of equipment, shops, garages, buildings and groundsTransportationSa n Francisco terminal and other station expenseTraffic solicitation and special servicePublic information an d advertisingInsurance and safetyWelfare and pensionsAdministrative and general.Operating taxes and licensesOperating rents

Total expenseNet operating revenue before depreciation and amortization

DEPRECIATION AND AMORTIZATIONNet operating revenue or (loss)

OTHER EXPENSE AND INCOME:Interest on bonded debtLess interest earned and other income-net

Total other expense and incomeNET REVENUE OR (EXPENSE) .ACCUMULATED NET REVENUE:

Balance, beginning of year .Add: Refunds of prior years' workmen's compensation insurance premiumsRestoration of provision for public liability claims-Note 2

SubtotalLess items paid from bond proceeds:

Rehabilitation costsBond interest

SubtotalBalance, end of year .

The accompanying notes are an integral part of this statement.12

1983

$12,392,647233,332

89,55324,277

$12,739,809478,504$13,218,313

$ 1,889,9117,810,873

64,048114,112143,770545,304497,711645,674601,503

56,631$12,369,537$ 848,776

892,963$( 44,187)

$ 593,38866,475

$ 526,913$( 571,100)

280,70538,657272,220

$ 20,482$$$ 20,482

1962

$11,913,439232,485

60,25115,041

$12,221,216455,165$12,676,381

$ 1,669,2987,194,404

62,535103,504143,188665,683409,828589,433523,666

47,245$11,408,784$ 1,267,597

829,861$ 437,736

$ 466,02499,386

$ 366,638$ 71,098

465,301122,316$ 658,715$ 66,316

311,694$ 378,010$ 280,705


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NOTES TO FINANCIAL STATEMENTS

NOTE 1: On October 1, 1960 the District purchased thephysical operating assets of the Key System Transit Linesan d its parent company, Bay Area Public Service Corporation. The cost column in the schedule below allocates thepurchase price in accordance with an engineering reportrendered by Arthur C. Jenkins & Associates of Sa n Francisco, California under date of January 10 , 1961:

AccumulatedCost AmortizationLand $2,332,400 $Buildings and other structures. 1,473,242 122,529Motor coaches, parts an dequipment 3,336,475 725,821Service cars, shop an dmiscellaneous equipment 324,372 63,080Office furniture an d equipment 50,070 14,282

Totals $7,516,559 $925,712Th e assets acquired by this purchase as well as all assets

subsequently acquired are being charged against operationsaccording to amortization and depreciation schedules prepared for th e District by the same firm of consulting engi-neers. When certain property acquired in the initial acquisition was sold or salvaged subsequently, proceeds from thesale were added to the accumulated amortization account,thereby not disturbing current amortization charges bu t reducing amounts to be written off at the end of the amortization period. These proceeds totalled $73,355 as of June 30,1963.

NOTE 2: On January 1, 1962 the District began to self-insureal l liability claims for personal injury and property damageup to a maximum of $50,000 pe r anyone accident or occurrence. Claims in excess of this amount are insured withcommercial insurance carriers. As of January 1, 1963 th eDistrict discontinued making provision for unsettled claimsbu t began to charge claim settlements directly to operations.Unsettled claims at June 30, 1963 would have been providedfor at $320,OO(} under the method previously used althoughpast experience has been that settlements have averagedabout one-half of the amounts so provided. Since $272,220ha d been provided for by charges against the prior year'soperations, this amount was restored to accumulated ne trevenues.NOTE 3: The District voters authorized a general obligationbond issue of $16,500,000 at an election held on October 20,1959. The bonds mature serially in amounts ranging from$600,000 on September 1, 1962 to $1,400,000 on September 1,1980. Interest on these bonds ranges from 1% for the longestseries up to 6% for the shortest series.NOTE 4: The Board of Directors has authorized purchase ofthirty new motor coaches at a cost of approximately $820,000to be delivered by December 1963.NOTE 5: Claims have been filed against the District for it sshare of certain election costs . In the opinion of counsel,settlements, i f any, of this contingent liability are expectedto be of amounts readily me t from anticipated revenue.

LYBRAND, ROSS BROS. & MONTGOMERYCertified Public Accountants

1330 BROADWAYOAKLAND 12, CALIFORNIA

To the Board of Directors,Alameda-Contra Costa Transit DistrictSpecial Transit Service District No.1:

August 19, 1963

We have examined the balance sheet of th e ALAMEDA-CONTRA COSTA TRANSIT DISTRICT,SPECIAL TRANSIT SERVICE DISTRICT NO.1 as of June 3D, 1963, and the related statement ofrevenue, expense and accumulated ne t revenue fo r the year then ended. Our examination wa smade in accordance with generally accepted auditing standards, and accordingly included suchtests of the accounting records and such other auditing procedures as we considered necessary inthe circumstances.

In ou r opinion, th e accompanying balance sheet and statement of revenue, expense and accumulated net revenue present fairly th e financial position of the Alameda-Contra Costa Transit District,Special Transit Service District No.1 at June 3D, 1963, and the results of its operations for the yearthen ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

LYBRAND, ROSS BROS . & MONTGOMERY


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ALAMEDA-CONTRA COSTA TRANSIT DISTRICTLATHAM SQUARE BUILDING OAKLAND , CALIFORNIA 94612

AC Transit Annual Report 1962-1963

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Transcript of AC Transit Annual Report 1962-1963