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If surplus Sales Tax revenues not generated, it was recommended that construction funds for the new station be budgeted in the 1968-69 Budget. Report also included study of operation costs by way of subsidization which might be expected during early years of program, and Committee's firm belief that system would eventually be self-supporting. Projection made on estimates of this initial subsidization cost reported to be approximately $2,500 per month, or an anticipated expenditure of $10,000 for the last four months of the current fiscal year. Report further covered details of specifications which had been developed for purchase of the vehicles, and proposal for operation of the system by contract with a private _ organization. Report concluded with recommendation of Committee that appropriation ordinance for $100,000, equipment specifications, and authorization to call for bids, be approved by Council at this meeting. In summary, Committee's report stated need for a modern, dependable public transportation system in the City, which had been under consideration for a number of years, and that recommendations made would result in a reasonable and practical solution, meeting the needs of City's residents, (For full text of Committee Report see City Clerk's File - Transportation) Councilman Bury questioned possibility of offering alternate bids for bus system operation, in that one be offered with City providing the vehicles, and other allowing option for bidder to provide both vehicles and operation, this latter option might possibly work to offset a subsidy, Councilman Petersen stated this proposal would preclude any action being taken at this meeting as bidding procedure prepared ormly for a contract with an operator and City furnishing the buses. He did state this would not, however, preclude the operator from purchasing the vehi- cles from the City at a later time. Councilman Granger requested consideration be given for Council's acting only on appropriating funds as recommended for this sytem, thereby assuring PUC of City's intentions sufficiently for hearing on September 25th, and not act on other recom- mendations at this time, Councilman Petersen advised since Council had approved a municipal bus system on July 17th, delay at this point would preclude the schedule now proposed for system being in operation some time next year at earliest because of normal time consuming procedures necessary to put operation into effect, and City faced with possibility of no bus service. — Councilman Keckley also elaborated on consideration given to proposal for City -owned vehicles for better control by the City and tax -saving which also might result to City. Committee was also asked vh ether finances would be available for operational costs by City long enough to get the system on its feet. Councilman Petersen stated funds were not being requested for operational costs at this time. SEP 20 IT