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Progress Report of the Transportation Committee. Councilman Petersen, Chairman of the Transportation Committee, briefly reviewed the history of the bus trans- portation problem, including the gradual decrease in service and the demands made by citizens for improved service. He stated because of curtailment of trans- portation services by the present bus the serving City, Peninsula Transit Lines, it was determined that Committee with aid of Staff would make an investigation and survey, instead of hiring of consulting firm with its resultant high costs as had been done by other cities. He reported on the questionnaire that Staff had been directed to submit to various cities concerning transportation services and of the cities which had been visited by the Committee throughout the State, the most recent trip having been to San Diego where a municipal system of transportation is being planned. He stated on these trips Committee had observed the transpor- tation system in Santa Monica which is running at a profit, whereas the one pro- posed in San Diego was expected during first five years of their operation, to run to a deficit of over two million dollars. He also commented on the fact that City faced another drastic reduction in transportation service or possible elimination of service completely as had been indicated in most recent communication from the Peninsula Transit Lines, representing City's sole means of local bus transportation. Councilman Petersen quoted excerpts from Management Information Service, divison of the International City Managers' Association, stating public transportation to be a national problem and indicating tfend that taxing transit systems was gradually giving way to devising tax support methods to subsidize transit losses. Councilman Petersen reported on Committee's meeting with Mr. Prine, owner and Manager of the Peninsula Transit Lines, since receipt of the last notification that further reduction of service was contemplated, and of the statistics which had been presented indicating Company was suffering losses of approximately $1,000 per month. He stated that Mr. Prine has, however, assured Committee that sufficient notice would be given to City prior to the actual initiating of any action with the PUC to reduce the present schedule. In summary, Councilman Petersen stated he felt Committee was making satisfactory progress in their efforts to formulate a sound approach to alleviating the trans- portation problems and that it was their hope they would be able to make a final report, including appropriate recommendations to the Council, within the next ninety days. Councilman Henderson agreed on the importance of City's transportation problem being resolved but questioned whether recommendation in 90 days would allow for study of a financing plan during budget study for the coming year. Councilman Petersen indicated need for 90 days to prepare all information which would be necessary in making a final report and recommendation he approved additional Councilman Bury indicated PR a BI