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Volume 3 Number 1 OAKLAND, MAY 1960

$7,500,000 SETTLEMENTDistrict and Key System Reach PriceAgreement; Long Court fightA oidedThreats of long delay in the improvement of East Bay public transportationwere eliminated this month when theTransit District reached agreement withKey System Transit Lines on a purchaseprice of $7,500,000 for its complete facilities.

The settlement, which clears away apossible delay of two years in court action, was recommended to the districtboard of directors by General ManagerJohn R. Worthington.Worthington, who negotiated the settlement with Glen L. Stanley, Key Systempresident, said that by taking advantageof the agreement, the district could expect to replace Key and be in operationby next October.An early settlement also should help inavoiding the possibility of a transit shutdown May 31 when the labor contractbetween Key and the Carmen's Unionexpires, he added.Agreement StudiedBoth the district board and directors ofthe privately owned transit companyhave yet to approve the agreement. However, the transit board was expected todecide on whether to approve the negotiated price before the end of the month.Initial reaction of the transit directorscame from William J. Bettencourt, Ala-

meda and San Leandro representative,who declared the agreement is both"reasonable and fair" to the taxpayers ofthe district and Key System stockholders."This settlement is a far cry from theold allegations that this district was created to bail out the Key System," Bettencourt said.

He cited last year's high earnings ofKey System, its increased patronage andrevenues, and observed that the districtwould be "extremely fortunate" to obtainthe entire Key holdings for the $7,500,000price.Initial Key PriceThe negotiated figure is approximately$3,000,000 less than the initial askingprice of Key representatives when negotiations began four months ago, W orthington told the board.

The settlement is based on values ofKey equipment and real estate as determined by engineers of the State PublicUtilities Commission as well as districtengineering consultants, he said.Key System maintenance terminals,storage yards and rolling stock, including296 gasoline buses not originally soughtby the district, are contained in the package agreement."By the purchase of all of Key's facilities," Worthington said, "the district will

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What the Editors Are Saying About TransitSan Francisco Chronicle:

Better Service Increases Transit UseAMONG arguments gloomily advanced.t\. against th e practicability of a BayArea rapid transit system the most fre

quent contends that the American publichas become wedded to the privacy andconvenience of the automobile and couldnever be lured back by mass transportation.It now appears that this argument,plausible as it may seem, runs contraryto fact. The public is already returningto mass transit, and the trend that beganwith World War II has been reversed,according to statistics now available.

Nationally, the increase in transit patronage and revenues has varied frommoderate to "astounding." Increasingcongestion of freeways and city streets,plus mass transit that provides modern,

fast, frequent service, is deemed responsibleIn San Francisco, for example, theMunicipal Railway that carried 140,-300,000 passengers in 1958 carried 141,-609,000 last year. The increase in Oak

land was somewhat higher.One Philadelphia line increased pa-tronage 126 per cent through new equip

ment and faster service. A Boston linedoubled patronage in less than a year.In Los Angeles, the so-called "freewayflyer" serving San Fernando Valley uppedpatronage in one year from 1,300 to 5,000daily.

Here is persuasive testimony that thepublic is ready to forsake the expenseand annoyance of commuting by automobile where cheap, fast, convenientmass transit is available.

Bids on New Buses Delayed to June 15Bids on a maximum of 300 new ultra

modern motor coaches, estimated to cost$8,000,000, will no t be opened by the

BeHencourt: Named t:o I-IeadSan Leandro Development:

William J. Bettencourt, transit districtdirector. representing San Leandro andAlameda, and East Bay civic leader, ha.sbeen named general chairman of the SanLeandro Development Committee.

Th e committee is charged by the CityCouncil with the study of ideas for therevitalization of the San Leandro centralbusiness district.2

transit board of directors until June 15.Th e original bid deadline of May 4was extended following a change in planning schedule that calls for the commencement of operation October 1.Bids on the new motor coaches will be

based on manufacturers' offer of coachesat a firm price for 90 days with provisionfor adjustments for buses delivered after90 days.By delaying the bid opening date,maximum advantage can be taken of thefixed price offers without delaying thestart of operations, General ManagerJohn R. Worthington reported.Th e bids will be opened at 4:30 p.m.in district headquarters.

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Transit Annexation Up for June VoteVoting unanimously this month toplace the proposed annexation of WestContra Costa to the Transit District on

the June 7 ballot were the city councilsof Richmond and San Pablo and the transit district board of directors.The annexation proposal, requeste d byRichmond, San Pablo and adjacent unincorporated area, requires a simple majority vote for passage.By joining the district, West ContraCosta would be assured of local transitservice when the District replaces the

operation of Key System Transit Lineslater this year.Th e annexation agreement, approved

by the various public agencies involved,provides for a maximum tax rate of onecent per $100 of assessed property valuation. West Contra Costa residents wouldbe eligible to vote on three of the sevenmembers on the transit board of directors. The terms of two of the three directors expire the end of this year.

Latest of the many community organizations to lend full support to the annexation proposal are the merchants division of the Richmond Chamber of Commerce, San Pablo Chamber of Commerce,Richmond Development Foundation,Richmond Urban Renewal Committee,East Richmond Heights ImprovementAssociation.

Key System Price Accord Under Study by DistrictDirectors; Early Date Seen for Start of Operations

(Continued from Page 1)have within its control the ability topromptly remove from the streets antiquated equipment and replace it withcoaches of superior design an d comfort.

"Lengthy court proceedings could delay our operation by as much as two years,prolonging just that much farther Key'suse of th e older equipment," he said.A total of $550,000 has been allowedby the district for the used gasolinecoaches. But their purchase by the district eliminates the possibility of severance damages which could "approach theprice paid for the equipment," Worthington said."In other words, we are trading thepayment of severance damage for theused coaches and thereby getting something of value in return."The official pointed out the older busesare needed to commence immediate operation, bu t that they will be used onlyuntil delivery can be obtained on some

300 new, streamlined "Transit Liners"during the first 18 months of districtoperation.

"I am firmly convinced," Worthingtonsaid, "that the acquisition of Key Systemat the price proposed is an exceedinglyfair and equitable solution, and will proveof great and lasting benefit not only totransit riders but also to the taxpayers ofthe district."

Besides providing funds for the purchase of Key System, Worthington saidthe $16,500,000 bond issue approved lastyear is adequate to "carry out every detailof the district program as approved by thevoters, including $8,000,000 for the purchase of a modern motor coach fleet."

In addition to the modern "TransitLiners," the district plans to improve public transit with a network of fast expresslines an d more than 200 miles of newor improved local routes in the variousEast Bay cities.

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Exclusive Freeway Lanes for Express BusesUrged for Los Angeles I,y Traffic Engineer

Rush-hour express lanes for buses havebeen advocated by Los Angeles' city traffic engineer, S. S. Taylor, as the bestmethod of making "rapid transit" systemsreally rapid at least expense.

Such study was urged by Taylor be fore further consideration of a monorailor other method of bringing thousands ofdaily commuters in and out of downtownLos Angeles.These special lanes, on freeways an d

major streets, would be available for automobile and truck use during non-rushhour periods."A comparable railroad track or monorail lines, on the other hand, would beused largely for some tw o or three morning an d evening hours for only some 250weekdays," Taylor said. "Each trackwould be used largely for only about 750

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Improved Public TransitCited Among Top CountyNeeds in Chamber Study

Better public transportation is one ofthe major needs of Alameda County according to a business climate appraisalconducted recently by a special committee of the Oakland Chamber of Com-merce.

The committee, headed by Thad McCarty, manufacturer and civic le;lder,submitted questionnaires to 1,100 representative businessmen.

Some 87 per cent of those answeringdeclared that public transit facilities areinadequate and called for immediate improvement. Better transit also was citedas a key issue in the revitalization of Oakland's central business district.

hours out of a total of 8,760 hours in ayear."A pair of expressway lanes allocatedexclusively for inter-urban buses in themorning an d afternoon rush hours andavailable for cars and trucks as well asbuses in the remaining hours would thusbe utilized far more extensively in thecourse of a year than would a pair ofrailroad tracks," he said.

"The lanes, particularly the curb lanes,of our streets an d highways are no t working nearly as efficiently as they can," headded.Central Terminal

Also needed to speed up public transportation, in Taylor's view, is a centrallylocated passenger terminal for these express buses, along with pedestrian conveyor belts from the terminal to majorbusiness areas.

Taylor predicated several major stepsthat will be undertaken during the nextfive years to solve Los Angeles' transitdilemma, including:

I - A planned, integrated mass rapidtransit system.

2- A transportation master plan combined with a pedestrian-vehicle separation in order to get commuters in and outof the downtown area quickly and effi-ciently.

3- An increase in th e quantity of masstransportation, regardless of its quality.New York Buses Boost: Earnings

NEW YORK - Operations of the FifthAvenue Coach system resulted in substantial gains in 1959 as compared withthe year before. Net income last year was$512,554 in contrast to a loss in 1958 of$582,830.

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95,500,000 _ ._- '-.

47,500,00046,600,000

49 50 51 52 53 54 55 5 6 5 7 58 59 60MORE RIDERS-Chart shows first upturn in number of riders using Key System Transit Lines since patronage began steady 'decline at end of World War II. Patronagesince 1949 dropped from 95,500,000 to a low of 46,600,000 in 1958. Passengerscarried last year increased 900,000 to a total of 47,500,000.

Key System Patronage, Revenues GainPassenger revenues collected last year

by Key System Transit Lines increasedmore than 6 per cent on East Bay linesand 4 per cent on transbay service ascompared to 1958.

Th e higher revenues, reported in thecompany's annual report issued thismonth, provided Key with an operatingprofit of $1,428,510.

Deductions of $116,948 for track removal an d $753,000 for federal incometaxes, plus other minor adjustments, leftthe company with a ne t income of$753,961.

Th e number of passengers carried byKey increased for th e first time since theen d of World War II.

East Bay patronage increased nearly 2pe r cent-from 37,812,000 in 1958 to

38,500,000 last year. Riders on Key'stransbay lines increased 1 pe r cent, from7,972,000 to 8,051,000.

In his report to stockholders, Key President Glen L. Stanley attributed the increased transbay patronage to faster service, occasioned by the substitution ofmotor coaches on the former bridge raillines.

"When the bridge rebuilding projectis completed, and we are able to keepentirely off San Francisco city streets, weanticipated still further savings in schedule times," Stanley added.

Th e high earnings for th e year wereattributed in large measure to th e important economies effected by the complete motorization of th e bridge railwayservice.

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Bridge Terminal Renovation Moves AheadRemodeled T ransbay T ransit Terminal to Become One ofNation's Finest; Escalators Among Many Innovations

Another major project soon will beginin the remodeling of the Bay Bridge terminal into one of the nation's to p facilitiesfor accommodating interurban transitpassengers.

The entire granite and concrete exterior of the huge structure, more than20 years old, is about to undergo a complete face scrubbing and painting, according to Norman Raab, State projectengineer.Faster ServIceBy the time all of th e remodeling workis completed next year, Raab said, theterminal should be one of the finest inthe country-both from the standpoint ofpassenger comfort and convenience aswell as rapid movement of motor coachesin an d out of he facility.

The new improvements and faster transit service to the East Bay should inducelarger numbers of persons to use publictranspOltation, he added.6

"With buses transporting an averageof 22 passengers per trip, compared withless than two persons per car, th e trafficcongestion on the bridge, particularlyduring the peak periods, would be somewhat relieved."More than 54,000 transit riders passthrough the terminal each day. Last year,the number of transbay passengers carried by Key System Transit Lines totaled8,051,800.

The terminal facilities will be used bythe Alameda-Contra Costa Transit District and its fleet of streamlined "TransitLiners" when the District replaces KeySystem later this year.

Work on the terminal building, to convert it from train to bus use, began nearlytwo years ago, with a number of majorimprovements already finished.

The elevated track area from the SanFrancisco bridge anchorage, around theterminal loop and through the building,

has now been repaved and the 14 motor Recent improvements include the incoach lines of Key System operate in an d stallation of fluorescent lights in the mainou t of the terminal, thus speeding up waiting room and on the mezzanine Hoor,service and relieving city street traffic. the opening of various previously closed

New indicator lights have been in- areas fo r freer movement of pedestrianstalled at various points in the building, traffic throughout the building, the conwhich clearly show waiting passengers struction of a new ticket office, and thethe lines that are loading and upon which installation of a new stairway flanked onramps. both sides by escalators, leading from theNew, brighter lighting and a coat of lobby to the mezzanine level.paint are planned throughout the interior Bright Illuminationof th e terminal, including the passenger In addition to Key System, the terminalloading deck. At night, th e outside of the is being used by Greyhound Lines forterminal will be brightened with a system commuters traveling to Central Contraof floodlight illumination. Costa County.A program providing for the general Raab said the terminal is so constructedrearrangement and refurbishing of res- that it can be expanded to accommodatetaurant and other services of the building another 10 loading stations, increasingalso is underway. the present 30 loading points to 40.TRANSIT IMPROVEMENTS-Fourteen transbay motor coach lines carrying 54,000 riders a day now use fast, elevated transit loop between Bay Bridge anchorage in SanFrancisco and the Transbay Transit Terminal. Repaving of the former bridge rail areaplus installation of modern passenger escalators and convenient loading indicatorsare part of a $2,500,000 remodeling program of the transit terminal due to be com.pleted next year.

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At an adjourned regular meeting April20, 1960, the Board of Directors: Approved agreements for annexationof cities of Richmond, San Pablo and ad-

jacent unincorporated area to the TransitDistrict, on motion of Director Coburn.(Details, Page 3.) Called special annexation election to

be held in unincorporated area in consolidation with June 7 primary election,on motion of Director Copeland. Authorized three members of theBoard to inspect plants of major busmanufacturers together with transit operations in other communities, on motionof Director Copeland. Authorized directors and staff to at

tend a regional meeting of the AmericanTransit Association in Sacramento May9-11, on motion of Director McDonnell.* * *At the regular meeting May 4, 1960, theBoard of Directors: Referred to Committee on Financefor study a recommendation of the General Manager that a proposed agreementfor purchase of Key System Transit L i n e ~ be approved, on motion of Director McDonnell. (Details, Page 1.) Declared intention as to terms andconditions for annexation of Richmondand San Pablo to Special Transit ServiceDistrict No.1 providing voters of the areaapprove annexation to theovetall district

Transit TimesAlameda-Contra Costa Tran,it District

700 plaza BuildingOakland 12, California

Transit TimesPublished monthly by the

ALAMEDACONTRA COSTA TRANSIT DISTRICT

BOARD OF DIRECTORSROBERT K. BARBER . . PresidentDirector at LargeWM. J. BETTENCOURT . Vice PresidentWard IVAlameda, San Leandra and East OaklandROBERT M. COPELAND Director at LargeWILLIAM H. COBURN, JR. . . Ward IBerkeley, EI Cerrito and KensingtonJ. HOWARD ARNOLD . Ward IIAlbanyJOHN McDONNELL . . . Ward II IEmeryville, Oakland and PiedmontPAUL E. DEADRICH . . Ward VCastro Valley, Hayward and San Lorenzo

ADMINISTRATIVE OFFICERSJOHN R. WORTHINGTONROBERT E. NISBETJOHN F. LARSON GEORGE M. TAYLOR

General Manager . AttorneyTreasurer-ControllerSecretary~ l D June 7, on motion of Director McDonnell.

Adjourned meeting to May 25 at 8p.m. in supervisors chambers of AlamedaCounty Court House for purposes of acting on recommended Key System pur-chase agreement, on motion of DirectorCopeland.

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l HOMAS l:\ BOLO5687 MILES AVE.O.AKLAND 18 . CALIF.U- 1l,

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