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8 1 9 the City ' s Municipal Transit System . He felt it noteworthy that , instead of the deficit envisioned for some $ 100 , 0001 it was only for $ 63 , 699 , 491 or 64% of what had been forecast originally . He stated two main reasons why operation successful in limiting the deficit was greater use and tight control over operating expenses . He further advised preliminary staff budget for coming year included a provision for a new vehicle with a larger seating capacity for use on the Marsh Manor route , and also inclusion of funding for replacement of equipment . He stated it was Committee ' s feeling that next Annual Report will be even better as passenger counts increasing, and it was still hoped the system will eventually be self -supporting , In reply to question as to life expectancy of the buses , Councilman Petersen stated life of vehicle estimated at 7 years when originally purchased , and that in proposed budget the new bus was being requested at cost of $25 , 000 plus a $20 , 000 item for amortization of buses . Discussing any possible continuance of the Canada College bus service , he advised he had contacted Mr , Matt Fasanaro and he had advised no further funding seemed justified by the College because so few riders had used the service , and that it was not felt Redwood City could justify subsidy of this line as it was felt to be a School District problem . Councilman Rosselli moved to accept Annual Report of Transportation Committee and indicated appreciation of Council to Committee , Servicar Company , and Staff for the successful first year ' s operation of this system, seconded by Councilman Arnett and carried , ( MINUTE ORDER #69-- 84 ) In reply to question by Mayor Bury as to proposal for bus shelter in area near SP depot , as offers had been made by some of the service clubs to participate in such a project , Councilman Petersen advised this subject had been thoroughly re - viewed and even discussed with SP, who had recommended use of their depot by passengers awaiting bus service , It had therefore been the decision of Committee not to pursue subject at this time . Councilman Petersen also reported on the essay contest to publicize the First Anni - versary of the bus system and of the selection made of the contest winners , copy of both report and winning letters having been submitted to Council . Councilman Petersen reviewed the proposed rules and regulations which Committee had recommended be established for guidance of bus operators , not to be posted , but merely to act as a " tool " and guideline for the operators . A thorough and prolonged discussion held concerning range of rules , effectiveness , specific language questioned in various areas , authority of bus operators , use of discretion , whether such a listing is standard practice in other transit systems , etc . Councilman Petersen stated it was not known whether standard practice in other systems , but since Redwood City is leading the field in this type of system , it might be well to lead in this instance , also , as the rules had been requested by Servicar and in- tended to be included in a manual for the bus operators . City Attorney advised rules and regulations were designed only as sort of a condition of a contract for conveyance , thus the driver would be authorized to refuse transport - ation to persons violating the rules , Sntg