HomeMy WebLinkAbout02/03/2009, C3 - SETTING DATE FOR PUBLIC HEARING ON SLO TRANSIT FARE MODIFICATION council �
February 3,2009 j
j acenaa Report 1�Nd. G3
CITY OF SAN LUIS O B I S P O
FROM: Jay Walter, Public Works Director
Prepared By: John Webster, Transit Manager
SUBJECT: SETTING DATE FOR PUBLIC HEARING ON SLO TRANSIT FARE
MODIFICATION
RECOMMENDATION
Approve the date set for a public hearing on possible SLO Transit fare modifications.
DISCUSSION
Existing Policy
The City's current Short Range Transit Plan (SRTP) was adopted on August 23, 2003. As part of
that plan a policy was adopted to guide the City's hearings for public comment on SLO Transit
fare modifications (Attachment 2). More specifically, the Council will first be informed of the
need for a public hearing (as done by this Agenda item) and a legal notice will be published 30
days prior to the hearing.
MTC's Proposed Date for Public Hearing and Retroactive Council Approval
City staff is anticipating shortfalls in transit funding in fiscal year 2009. In anticipation of these
shortfalls, and the need to hold public hearings for comment on possible fare modifications, in
January staff proactively recommended to the Mass Transportation Committee (MTC) that it
tentatively set a date to receive such comments. The purpose of this Agenda Report is to notify
Council of the need for this hearing and to formalize the hearing date. Thus the hearing is
proposed for February 18, 2009 at 4:30pm in the Council Chambers at 990 Palm Street. Further,
consistent with City policy a thirty (30) day public notification of this hearing has been issued in
order to hold the scheduled public hearing
Issues Driving Fare Adjustments to be Discussed at the Public Hearing
Currently there are two issues which may contribute to the need to adjust transit fares. First, state
transit funding has been reduced for the current fiscal year and will likely be reduced or
maintained at lower levels for the foreseeable future. In the 2008-09 fiscal years, Local
Transportation Fund (LTF) amounts will be reduced to approximately$174,000 for SLO Transit.
This reduction of funding will most likely be accommodated within this fiscal year with a
reduction of service levels. This will be a difficult task for City staff to implement occurring
over half way through the fiscal year.
Second, the sharp increase in fuel costs has had a significant impact on the transit budget. While
fuel costs have temporarily stabilized, indications are that fuel prices for diesel will again
increase in spring and summer of 2009.
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CAR Fare Modification Public Hearing Page 2
Because two issues discussed above will reduce the ability of SLO Transit to fund current service
levels a discussion of transit fees as a possible fund balancer is needed. Following the MTC's
public hearing on February 18, 2009 staff will return to Council with recommendations.
ALTERNATIVES
Council could determine that it does not want to retroactively approve the February 18, 2009 date
set by the Mass Transportation Committee to receive comments for fare modification and set a
new date.
ATTACHMENTS
1. Draft Minutes of the MTC Meeting of January 14, 2009
2. Excerpt on Public Notification from the Short Range Transit Plan (SRTP)
3. January 14,2009 Staff Report to the MTC on possible fare modifications
T:\Council Agenda Repons\Public Works CAR\Transit\CAR-TRANSIT FARE INCREASE PUBLIC HEARING NOTICE 01-26-09 v3.doc
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ATTACHMENT 1-DR T MINUTES
CITY OF SAN LUIS OBISPO
MASS TRANSPORTATION COMMITTEE
REGULAR MEETING
990 PALM ST.
WEDNESDAY, JANUARY 14TH, 2009
CALL TO ORDER:
Chairperson Susan Rains called the meeting to order at 2:30 p.m.
ROLL CALL
Present: Susan Rains, D. Gregg Doyle, Denise Martinez,Margaret Crockett,
Robert Wolf, Elizabeth Thyne, and Stanley Yucikas
Absent: Tracey Amundson, Kathy Howard
Staff: John Webster, Tim Bochum,Dee Lawson
ANNOUNCEMENTS
None
PUBLIC COMMENTS
There were no public comments.
A. CONSENT ITEMS
A-1. Approval of November 12, 2008 Regular Meeting Minutes and
December 9, 2008 Special Meeting Minutes
Ms. Rains requested that the ANNOUNCEMENTS section of the November 12, 2008
minutes be amended to read "...Cal Poly Student and Cal Poly Representative"positions.
Ms. Martinez requested that the language in her Member Comment be amended to read
"Ms. Martinez suggested that customer service and relations training needed to be better
addressed for transit staff and drivers."
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ATTACHMENT 1-Db .T MINUTES
Mr. Wolf corrected the December 9, 2008 minutes regarding Route 2 modifications to
read"Los Verdes Park areas."
Ms. Crockett moved to approve both sets of minutes as amended.
Ms. Martinez seconded the motion.
The motion passed unanimously.
B. DISCUSSION ITEMS
B-1. , SLO Transit Website - Marketing
Mr. Webster discussed the transit website marketing and web page. He suggested the
MTC review other transit web pages for design and content ideas to submit for
consideration of inclusion.
He noted that changes and maintenance of a more extensive, interactive website would
require someone dedicated to maintaining the presence. He suggested coordinating with
the person who handles the RTA site.
He noted there was a marketing budget of approximately $19K which could be
strategically used.
There was MTC discussion on the need for Internet interaction of transit information and
email lists, etc. and members agreed to send staff emails suggestions and to ultimately
form an ad hoc committee to investigate ways to utilize distribution lists and networks.
C. ACTION ITEMS
C-1. Start SLO Transit Fare and Pass Increase Process
Mr. Webster and Mr. Bochum discussed the last fare increase in 2003 and current budget
issues, including funding reductions, rising fuel costs and farebox and service ratios.
Staff discussed the submitted fare increase chart, allowing that the senior/disabled pass
increase would be the most challenging to address.
Mr. Yucikas felt there were too many pass options and suggested keeping only the 3-day
pass and price it more attractively.
Mr. Wolf felt a reduced fare should be available to verified low-income residents.
Louise Justice, 3000 Augusta,was concerned about raising fares if services were going to
be reduced and submitted letters expressing concerns about modifications to Routes 1 and
ATTACHMENT 1-DR T MINUTES
3. She also stated that the Ride-On shuttle was being discontinued and seniors would be
relying on buses more and did not favor increases to senior rates.
The MTC recommended notifying the SLO Mayor and Council of the intent to hold a
special public hearing/open house meeting on February 18 from 4p—6p.
Ms. Crockett moved to recommend that Council establish a public hearing on fare
increases to be held on or about February 18, 2009.
Mr. Doyle seconded the motion.
The motion passed unanimously.
C-2. Review/Approve Short Range Transit Plan Draft
Staff recapped the process and report and asked MTC to consider the report and system
impact in light of the next five years.
There was general MTC discussion.
Mr. Doyle moved to recommend that the report contain direction that when the plan was
implemented, Routes 1 and 3 operate north (clockwise) on Laurel Lane.
Ms. Martinez seconded the motion.
The motion passed unanimously.
Mr. Yucikas moved to recommend the modified plan be adopted and forwarded to the
Planning Commission for review and approval.
Mr. Doyle seconded the motion.
The motion passed unanimously.
D. INFORMATION ITEMS
D-1. Transit Manager's Report
D-2. Operating—Performance Report
Mr. Webster noted that ridership was increased even with fuel costs being lower and that
in December, there was a 50%increase.
He recapped the reports with highlight discussion.
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ATTACHMENT 1-DFS .T MINUTES
The meeting adjourned at 4:15 p.m. to the special meeting on Wednesday, February 18,
2009 at 4:00 pm in the Council Chambers at 990 Palm Street.
Respectfully submitted,
Lisa Woske, Recording Secretary
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ATTACHMENT 2
City of Son Luis Obispo Final Report
APPENDIX F
Draft San Lacs Obispo Transit
PUBLIC HEARING PROCEDURES FOR MAJOR SERVICE
OR FARE CHANGES
L BACKGROUND
San Luis Obispo Transit (SLO Transit) is required by the Federal Transit Act, as amended
through 1992, to establish a policy, which defines a process to solicit and consider public
comment Prior to raising fares or implementing a major reduction of transit services.
II. SAN LUIS OBISPO TRANSIT POLICY
6. It shall be SLO Transit's policy that public comments be solicited prior to:
(i) Any permanent change, which increases fares on SLO Transit's fixed-
route service.
(ii) A twenty-five percent (25%) or more reduction of the number of daily
transit revenue vehicle miles of a route (the total number of miles
operated by all vehicles in revenue service for a particular day of the
week on an individual route).
(in) A twenty-five percent(25%) or more reduction of the number of transit
route miles of a route(the total mileage covered during one round trip by
a vehicle in revenue service on.a.particular route)..
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(iv) Proposed introduction of a new route
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7. It shall be SLO Transit's policy that the following would be exempt from public
comment and public hearing:
(v) A minor change in fare or service. Examples would be temporarily
reduced or promotional fares, minor route modifications or temporary
route modifications due to street construction(s) or minor schedule
changes.
(vi) Experimental or emergency service or fare changes expected to exist ,
fewer than one hundred and eighty (180) days and standard seasonal 1
variations in service. If these changes ultimately continue to remain in
effect for more than one hundred and eighty(180)days, they will be the
subject of public comment and public heating.
Page 126
Short Range Transit Plan H
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ATTACHMENT
City of Son Luis Obispo Final Report
8. PUBLIC NOTIFICATION
When required, the public comment process will begin by informing the City
Council of the need for a public hearing and/or the publishing of a legal notice
thirty(30) calendar days in advance of the public hearing or open house date in
the local newspapers of general circulation. This notice will set a specific place,
date,and time for one or more public hearings or open house. Written comments
will also be accepted on the proposed changes twenty(20)calendar days beyond
initial publishing of the legal notice.
Legal notices will inform the public of the proposed actions, which initiated the public
comment process.Press releases will also be prepared and sent to the local media.Patrons of
routes proposed for adjustment will be notified of the public comment process by displaying
pamphlets or posters on bus shelters on the routes)affected
9. SCHEDULING PUBLIC HEARING(S)
The public hearing(s) and/or open houses will be scheduled and conducted by City Transit
Manager at time,date,and place designated The facility utilized for public hearings and open
house will be accessible to persons with disabilities. Special arrangements will be made for
sight or hearing impaired persons if requested
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10. PROCEDURES FOR CONDUCT PUBLIC COMARNT PROCESS r
.(vii) Public Hearing. Forms will be available to attendees to register their
presence and desire to speak Public hearings will begin wither reading of
the public notice, purpose, and proposed action, which necessitated the
public hearing.After an explanation of the proposed action is completed,
the public will be invited to offer their comment. Each comment will be
limited to three (3) minutes. After all registered persons have
commented, a final opportunity will be offered for any additional public
comment.This offering will precede the close of the public hearing. a
(viii) Open house.Open house is a less formal public comment process-where
staff and the consultant can explain the changes to attendees on a small
group or one-to-one basis. Attendees would be requested to complete a
survey or public comment form and sign-in. Generally,the summary of
the proposed changes would be displayed around the room and/or i
presented Staff,as appropriate,may introduce the changes in summary
fashion. Staff would then interact with attendees to stimulate feedback
Short Range Transit Plan Page 127
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ATTACHMENT 2
City of San Luis Obispo Final Report
11. DOCUMENTATION OF PUBLIC HEARING
Official records of SLO Transit public hearing on fare or service adjustments will
be generated by:
(ix) Affidavits of newspaper publications of public notices.
(x) Press releases conveying information on upcoming public hearings.
()i) Tape recordings, minutes,public comment forms, or certified verbatim
transcripts of proceedings.
12. ADDRESSING PUBLIC COMMENTS RECEIVED
All relevant comments received verbally or in writing at a public hearing, or as otherwise
conveyed to SLO Transit prior to the established deadline, will be summarised in a written
report,which will include the original public comments. The report will be made available to
the Mass Transportation Committee for input and/or comment for an advisory
recommendation to the City Council.
13. ADMINISTRATORS
The City Council will be notified of all public comment solicitations in advance
of all scheduled public hearings on fare and service adjustments. A subsequent
report on public comment received will be provided to the City Council along
with staff recommendation for final disposition of the issues.Upon review by the j
City Council will be directed accordingly to proceed with or amend the
recommended service and/or fare adjustments.
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Short.Range Transit Plan Page 128
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ATTACHMENT
City of San Luis Obispo Final Report
APPENDIX G
San Luis Obispo Transit Fare Policy
Bus Fares
Regular $0.75
Senior(62+) $0.35
Disabled $0.35
Children Free
(Under 5 with far"aying adult,maximum 2 children)
Bus Transfers
From SLO Transit Free
From CCAT Full Fare
From Downtown Trolley Full Fare
Bus Passes
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Regular Monthly Pass $24.00
Senior Monthly Pass $7.50
Disabled Pass $7.50
Universal Pass $30.00
Regional Transit Pass
Regular $50.00
Senior,Disabled,
Students K-12 $35.00
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Proposed Trolley Fare
All $0.25
it
Trolley Transfers
From SLO Transit $0.25
From CCAT $0,25 i
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Short Range Transit Plan Page 129
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ATTACHMENT
City of San Luis Obispo Final Rept
Fare Policies:
• Drivers do not make change.Exact fare is required.
Valid identification is required to qualify for senior and disabled discounted fare.
Passengers must show proper identification when boarding to qualify for discount fares.
Passengers are required to ask for transfers when boarding.Transfers are valid for one
hour and in the same direction to complete the trip.It is recommended that transfers
occur at the Downtown Transfer Center located at Osos and Palm(City Hall).
Passes are available at City Hall.SLO Transit is not responsible for lost or stolen passes.
Valid identification is required to qualify for the senior and disabled monthly passes.
Passengers must show their valid pass and have valid identification when boarding the
bus.
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Short Range Transit Plan Page 130
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San tuts OBLW t>ransu
ATTACHN ENT#3
Item: C-1
TO: Mass Transportation Committee
FROM: John Webster, Transit Manager
SUBJECT: SLO Transit Fare and Pass Increase
STAFF RECOMMENDATION
1. Pursuant to the adopted SLO Transit fare Increase Policy, forward notice to
Council that a Public Hearing/Open House will be held by the MTC on
(XXXX) to solicit comments on a proposed fare increase to cover the costs
of transit service and deficiencies in the next two year Financial Plan period.
BACKGROUND
The current SRTP was adopted on August 23, 2003. As part of that approval a Fare Increase and
service change policy was also adopted to guide the City of San Luis Obispo in holding hearings
for public comment prior to enacting fare changes that were substantial.
There is currently a perfect storm of issues that either are, or will, contribute for the need to
adjust fares. First, state transit funding has been reduced for the current fiscal year and will likely
be reduced or maintained at lower levels for the foreseeable future. The FY 2008-09 reduction in
the Local Transportation Fund (LTF) amounts to approximately $174,000) for SLO transit. This
reduction of funding has to be accommodated within this fiscal year's service levels a very
difficult task die to the fact that we are over half the way through the fiscal year already.
Secondly, the increase in cost primarily for fuel has put a drain on the transit budget that was
only handled in the past through savings in other areas, including use of year end carryover
monies. While fuel costs have temporarily lowered, all indications are the fuel prices for diesel
will again increase as we head into the spring and summer.
Finally, recognizing that the two issues above will reduce money for road miles, the only
opportunity to maintain what service levels we have and possibly enact some of the service
changes recommended in the draft SRTP will be to increase the base fares in some manner.
Page 1 of 7 January 14, 2009 MTC Agenda item C-I 1
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ATTACHMENT#3
Previous SRTP Fare Increases
Type Previous Adopted
Regular Cash $ 0.75 $ 1.00
Senior/Disabled Cash $ 0.35 $ 0.50
Regular Monthly Pass $24.00 $ 25.00
Senior/Disabled Monthly Pas $ 7.00 $ 7.00
Trolley $ - $ 0.25
New-Reg Monthly AM/PM Pass $ - $ 30.00
Few-Sr/Dis Monthly AM/PM $ - $ 15.00
Background
As also noted in item C-12 a final task in the SRT? process was staff review of
consultant recommendations for all service changes, addressing comments made
in the public review process of the SRTP, and analyzing service recommendations
(and associated costs) a with available funding. The City traditionally commits all
of its annual transit funding to transit service, i.e. no funds go to streets or roads as
done in some other agencies. The two main funding sources, State Transportation
Development Act (STA) and Federal Transit Administration dollars again will
have to be used to come up with final SRT? implementation (or part thereof). In
addition to covering basic service costs, the City must maintain a minimum 20%
farebox recovery ratio for all service levels provided on an annual basis or face
losing state funding.
The City's transit service is an enterprise fund. As such, the transit service is
required to fund itself entirely from grants from local, state, and federal sources, as
well as revenues from passenger fares and subscription service. As a policy, the
City's transit service does not receive assistance from the general fund. The
challenge is to determine the best possible service levels to best meet the needs of
the community within the limited funding anticipated to be received in future
years (see fiscal analysis section).
Fare Increase — why now? Fare increases are never welcome. They can be
controversial and sometimes lead to ridership slippage. Recommendations for
increased fares should be highly transparent to the public, justifiable and done
when increased service levels are being provided or there are sound fiscal issues
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Sat-Luis OBLSpo transit
ATTACHMENT#3
that necessitate the increased cost to patrons. These two factors play heavily in the
recommendation to increase fares at this time.
Currently, the regular cash fare is $1.00, and the senior/disabled cash fare is $0.50.
SLO Transit's most recent fare increase was approved in August 2003 and began
being charged in January 2004. The following issues are reasons to consider
increasing fares at this time.
Fuel Costs
Diesel fuel costs have risen dramatically in recent years. Although we have been
able to accommodate fuel price increases within existing budgets and even with
recent fuel cost reductions, we believe fuel cost increases will occur again in the
spring and summer.
Funding Reductions
As stated earlier, we know that right now we must deal with an approximate
$225,000 reduction in state transit funding for the current fiscal year. This will
likely occur next year also. Thus, service versus revenue (and associated
reductions in service) will likely be on the horizon for SLO Transit even with fare
adjustments done immediately.
Farebox Ratio Decline
Due to the increase in operational costs, including fuel costs, the farebox ratio
continues to decline and is at borderline levels.
In 2000 when responding to the increase in the contracting costs, staff identified
the possibility of the need to increase fares in FY 2003 in order to achieve the
required farebox ratio of 20%. For FY 2001-02 SLO Transit was slightly below
the 20% farebox requirement. The FY 2007-08 Audit shows that we are again
right at the 20% farebox recovery level.
Regional Fare Consistency
Page 3 of 7 January 14, 2009 MTC Agenda item C-1 3
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ATTACHMENT#3
Although not imperative from a justification standpoint, regional consistency with
fares and fare media has been an issue in the past. RTA recently increased their
base fare to $1.25 and SLO Transit needs to consider consistency with this fare
adjustment now or in the future.
SRTP Implementation Possibilities
The service changes recommended in the current draft Short Range Transit Plan
represent an overall increase in service that reflects the community goals and
needs. However, these come at an increased cost. Those costs, coupled with the
desire to better market the system and the additional staff time required to
administer the transit system mean additional resources will be needed to address
these needs. Because all these costs are considering operating costs, their total is
also required to meet the 20% farebox requirement. Existing fares have not met the
criteria already and it is not anticipated that the existing fares will significantly
generate revenue to meet this requirement.
As a consequence, the City's eligibility for funding will be compromised. There
are only two ways to address this — reduce service levels (and associated funding)
or increase farebox revenue to match transit funding. Staff believes that the
recommended service levels reflect the community's requests and that
implementing these services at this time is appropriate. Unfortunately that leaves
option two — increased fares — as the viable way to address the farebox recovery
ratio issue.
What would a Faze Increase look like?
Staff has not prepared an in-depth proposal on fare increase at this time. However,
based upon exiting fares and perceived costs an adjustment to the base fare (and
related pass costs) should be a minimum of$.25 (twenty five cents). This proposed
fare in coinage handling and exact change requirements and is consistent with
other providers in the county. The current and proposed fare schedules are
illustrated in Table 1.
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san Luis oBLSW transit
ATTACHMENT#3
Table 1
Type Current I Proposed
Regular Cash $ 1.00 $ 1.25
Senior/Disabled Cash $ 0.50 $ 0.60
1 Day regular Pass $ 30.00 $ 37.00
1 Day Student Pass $ 20.00 $ 25.00
31 Day Senior/Disabled Pas $ 10.00 $ 15.00
7* Day Pass $ 10.00 $ 14.00
5* Day Pass $ 7.00 $ 8.50
3* Day Pass $ 5.00 $ 6.00
1* Day Pass $ 3.00 $ 3.00
*Sold on bu&Exact change
Page 5 of 7 January 14,2009 MTC Agenda item C-1 5
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ATTACHMENT#3
It is important to note for the MTC that revenue assumptions are not always
exact and that anticipated farebox may outperform assumptions made for this
analysis. A fare increase could be delayed at this point in time if we assume a
significantly higher increase in general farebox (via higher ridership) as a result of
implementing SRTP recommendations. While some farebox increase has been
assumed in the analysis, significant changes should be avoided so as to not overly
predict new/future base level revenues.
Can we wait on the fare increase? Waiting until FY 2010 to implement the fare
increase is possible but most probably will not assure meeting the 20%
requirement and, in addition, the overall transit budget might fall into a deficit by
the end of FY 2009 if State funding (LTF/STA) reductions become final or if
Federal stimulus funding cannot be used for operating expenses. Having a deficit
in the budget is significant because it means the transit fund will have less
carryover in each year to absorb any unforeseen costs that may arise or to increase
or continue service levels such as the current evening routes. State funding
reductions currently envisioned would most likely result in service reductions
before the end of this FY and for that reason staff is recommending a fare increase
should be implemented as soon as possible. This meets City and State transit
funding requirements and hopefully allows the ability to maintain current service
levels and lay the foundation in order to possibly implement service
recommendations for mid and long-term scenarios.
Performance Standards for Service. Performance standards, like a 20% farebox
or 30 minute headways are common ways of measuring system performance.
Although the overall system must maintain a 20% farebox ratio, some specific
routes and trips are not nearly that high. It is important that any service
implementation not impact other service levels throughout the day because of
minimum farebox recovery requirement. Therefore the measure of effectiveness
already created in the SRTP to effectively monitor service performance needs to
continue to be tracked and monitored to avoid competition for limited transit
funding.
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Failure to achieve standards within twelve months from implementation would
result in the need to discontinue or significantly modify the proposed service to
meet policies established in the Short Range Transit Plan.
MTC Discussion, direction to staff.
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MEETINGW-AGENDA ITEM C-I REGULAR MTC MEETING JAN-14-2009-FARE-PASS INCREASE.doc
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