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the most cost-effective, efficient, and accessible system for our geographic and demographic service area is the pulse, or "timed transfer" system. Even if changes in demographics in the future indicated that consideration be given to satellite transit centers or partial grid systems, the need for the downtown hub would still exist (as it does in Portland and Eugene); not to mention that a grid system would require twice the number of buses and operators on a somewhat static post-measure 50 tax resource. The Board has approached this issue on numerous occasions, with an open mind on the subject. We have found no reason to believe that an alternative system of operation would perform as efficiently or as successfully as the timed transfer or `pulse' system. • Should the District consolidate its current administrative offices with a new downtown transit center? We currently operate with a decentralized system; that is, our passenger service operations are downtown and our administrative and maintenance services are at the Del Webb site. Such a system reduces administrative supervision of the downtown services at the same time it makes the administrative functions less accessible to the public. In addition, the Board has long been criticized for its inaccessibility, though that has been improved somewhat by the addition of night service. The addition of more service and more buses to our fleet increases operators, which increases lead people, supervisors, mechanics, and service workers. The Del Webb facilities are already overcrowded: staff are occupying the former staff lounge/lunch room; several office spaces intended for one person are occupied by two; our small lib:ary is disjointed and lining the walls of a hallway; archived information is stored in rented facilities that are off-property and not easily-accessed; and, there is no room for future growth. Even the addition of the Security Coordinator required us to section off the customer service lunch room downtown in order to provide him an office. Downtown facilities are in leased space with inadequate utilities and deteriorating infrastructure. The need exists, so the question is whether or not we increase capacity at the Del Webb site and only build a new transfer center with related facilities downtown, or whether we consolidate the two. With the availability of federal grants to assist with either option, the scales are tipped by four key points: 1. It is more cost-effective to construct a single facility than two separate ones; 2. There are supervisory and operational efficiencies to consolidation; 3. Consolidation makes the Board and administration more accessible to our constituents; and, 4. The leaseable expansion space that FTA will finance in the consolidated project provides cash-flow which covers the increased costs of a new faciliry. Without the consolidation that opportunity does not exist and the increased costs of both fac:lities would fall on the taxpayer. 2