NON-PROFIT TRANSPORTATION ASSOCIATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00261R000700010043-1
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 12
• Document Creation Date: November 16, 2016
• Document Release Date: March 8, 2000
• Sequence Number: 43
• Content Type: MF

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MEMORANDUM FOR: Deputy Director for Administration
F. W. M. Janney
Director of Personnel
SUBJECT Non-Profit Transportation Association
REFERENCE Memo to DDA from Chairman, ADMAG
dtd 23 Jun 76, re same subject
1. Referent memorandum proposed two possible ways to
form a non-profit transportation association utilizing vans
driven by volunteer employees. The first involved purchase
of the vehicle by the driver through low interest-rate
Credit Union loans. The second envisioned the leasing
of vans by the newly formed association with the "backing"
of the Employee Activity Association. We assume "backing"
would mean that EAA would be financially responsible if
the transportation association were unable to fulfill the
terms of the lease. Listed below are pertinent comments
provided by the Credit Union and the Employee Activity
Association.
2. Credit Union:
a. The ADMAG proposes that the Credit Union offer
a preferential vehicle loan rate, under strict controls, to
members in order to encourage car pooling.
b. The Federal Credit Union Act and the rules and
regulations place limitation on the amounts, maturities,
repayment terms and security required for loans. The Board
of Directors may establish more restrictive loan limitations
than those established by law and regulations; however, loans
made to members must be for provident and productive purposes
and must be approved. The role of the Credit Committee is
to provide loans that will be helpful to members. Within
the limitations prescribed by'applicable law and regulations,
the Board can adjust from time to time the interest rates on
loans, the rate,of interest refund, the maximum maturities,
and terms-of payment or amortization of loans to members and
the maximum amount that may be loaned with and without security
to any member;
j
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c. If the limits
regulati set meet the ons, then it a applicable law and
could le all appears that the Board of Directors
g y grant loans such as; memo randum; however suggested in the ADMAG
make . the Board must consider all the members
g its Policy decisions since any by all. The Board should determine that thetinterd to ate est conforms to the Credit Union's overall financial objectives
and that shareholders and borrowers are treated to equally. rate
equally.
d. A precedent was set b
on 28 June 1972 wh the by the Board of Directors
on u nn e972 ished e passing of Resolution 72-25,
eThe
rate of 4 percent for membrslal loan program at a preferred
personal property in the floodshofsJune r1972?sses of real or
e. The controls proposed b
monitor and time consuming roly ADMAG would be hard to
in
include signed ? For instance, requirements would
transportation fromfatfleastysixdernplopdoble door-to-door
of eligibility every three months. Y s and revalidation non- result in reversion to a Also c
requre he son srhigh rointerestrate. This oTp cou
lwould
compliance and ee an individual tocheekon
The responsid kt p track of this particular kind of loan.
Credit Union, tiVhattstarted?outhaspaogram is
ne an Ani passed to the rnment
and egenc problem hecoold become a CrCredvdit Union m ors
tra-
being absorbed by all members.
.
f? The ADMAG su
interest rate will encourages peon~'m apply that the "preferred"
purchase cars for people to PP1Y for loans pnin ahead pooling. At the present time
wnioh a y has loans available to all members ate Cratet
rates h is very benyscompetitive a.nd, in most instances a rate ler
The difference in interest costs tow the than
member between the suggested "
current dividend level of 6.5 preferred" rate
corn v 9 percent Percent, gulamatching the
$7,000
loan rate van of loaned 9 n48ould be months) abbout $117 our regular auto
(on a
is not a ,i less thanr year month.
Though on a s'i renceato differencdifference and $10 per oenough o cdiff , in our opinion, not
suggest d~,,ontr s s. Also, preferred
tha pn thet tdlc to cmatching with the
level would me rate
di otae
Of its and b members eyond would
t the costs o t Union and all
the 6 have assume any cosh of administration
percent return.
a ! tt ~i.,7
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3. Employee Activity Association:
a. The EAA is a non-profit organization with limited
financial resources. It has recently had considerable expense
related to the move and renovation of the EAA Store. There
has also been discussion in recent months of the possibility
that EAA will have to further absorb the salary expense of its
personnel and reimburse the Agency for space that it occupies.
With this impact on EAA's net worth, it is questionable whether
EAA has the financial capability to qualify as the "backer"
of van leases.
b. The Employee Activity Association's participation
in this venture could be questionable from another aspect, i.e.,
its charter. The charter provides for a broad range of endeavors.
It does, however, seem to direct that these activities be for
the welfare of its membership. This could possibly be overcome
by requiring all participants to be EAA members, but such an
action would tend to make the whole operation an EAA endeavor.
While the EAA staff could assist with initial organization,
polling of interest and publicity? it has neither the personnel
nor the facilities to take on the full-time administration of
an activity as complex as the non-profit transportation associ-
ation. Furthermore, it does not a
staffing such an activity with volunteerseasienvisionedsiner
this proposal.
c. As a point of interest, the idea of van pooling
was submitted as an employee suggestion one
declined. (A copy of Suggestion #76-16 is attached.)and was
4. We commend ADMAG for the creativity demonstrated in
their car pooling proposal, but we do not believe we can
concur, for the reasons specified above.
STATINTL
Attachment
. W- M. Janney
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 Approved For Releas i%i QVAERUI tI iQMJ
Executive Secretary
Suggestion Awards Cornittee
it is questionable whether such an undertaking is within the purpose of 4.N as
25X1A
IN'S TRL'CT IONS: Please complete this form in detail to guide the Suggestion Awards Committee in making a final det-
minecion of the merits of this suggestion. Retain third copy.
1. ACTION RECOMMENDED ^ ADOPT D DECLINE ^ OTHER (Specify):
stated in its Articles of Incorporation.
personnel to handle the administration associated with such a venture. Further,
with the initiation and operation of vanpools, FPLLA would require additional
fpr that organization. Beyond the problems of funds and liabilities involved
FRA, who after due consideration have determined it is not a feasible project
Referen.c suggestion for vanpooling was referred to the representatives of
3. TANGIBLE FIRST-YEAR SAVINGS (Man-hours, material, equipment, etc.)
5. WHAT OTHER OFFICES, DIVISIONS, ETC. MIGHT ALSO USE THIS IDEA?
19 August 1975
1: `Pk? 244b (1FE YAE%1Ql'S
2 - 7') `t E 0 1 TIO NS
E] UNC1ASSIC !E0 ^ USEE'ONLY ^ CONFIDENTIAL El SECRET I43,
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ief, Review Staff - Office of Personnel
 R?LflNG AND RIECORD SHEET
SUBJECT: (Optional)
FROM: FJ.ECUTIVE - - ~.TARY
EXTENSION
No.
SUGGESTION AND ACHIEVE NT
76-16
AWARDS COMMITTEE
DATE
6-E-54, }END 4UARTERS
7394
15 July 19 7 5
TO: (Officer designation, room number, and
DATE
building)
OFFICER'S
COMMENTS (Number each comment to show from whom
25X1 A
RECEIVED
FORWARDED
INITIALS
to whom. Draw a line across column after each comment.)
~s ui ing
For evaluation, please.
2. e
--
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4.
M1~ 7L
6.
7
111 /
_
3tol0 _
Joe,
A
arentl
the successful
10.
ARY
pp
y
operation of van pooling is in a
cl
b"
i
E .ouT ' SEC'ZT
.7~
u
env
ronment. As the sug-
r
gestor points out, it is not legal
to use federally owned vehicles for
employee home-to-work transportatio
th
f
OL
ld
ere
ore
cou
not take any
t2'
official position on the suggestion
Sin
it i
"
l
b"
-
--
ce
s a
c
u
concept,
~a'
the Employee Activity Association
might want to explore its possi-
biliti
es.
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FOM 3-62 610 US#pPTF~ ^ USE >"fvovs El SECRET CONFIDENTIAL USE OiAILY ^ LINCLASS;FIEZ)
COW .' T1 A1 ^ SECRET
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 SUGG J( ,.ION NO: 76- kr
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VAN POOLING PROPOSAL--SUGGESTION
In an age when traffic congestion and inadequate, expensiv e parking
facilities are a fact, energy conservation and pollution control a must,
and public transportation unavailable to many employees, it is obvious
that creative solutions must be applied to transportation problems.
Van pooling is a relatively new and experimental para-transit system
which can be used effectively to transport workers to and from work. It
is ideally suited for employer sites with more than 1,000 employees.
.In the typical commuter van program, the vans are purchased or leased
by the employer and operated on a non-profit basis. The vans transport
between 8 and 12 employees each, on
Th~e'employees who commute
trips between their homes and place
in the vans over the depreciation and
operating costs by paying monthly fares. The initial van purchase costs
are assumed by the employer and are recovered from passenger fares.
Administrative; supervisory, and capital costs are usually considered the
responsibility of the.-employer. The employer's costs are then compensated
for by the reduction in parking facilities required. and by more intangible
Since it is presently ill,-gal to use federal vehicles on home-to-work
4
trips, the vans could be leased or bought by the agency's credit union. The
TVA in Knoxville began a vanpool program as a joint effort with their
credit union in 174. It operates 36 vans and is currently planning to
expand its+program'ot. over 100 vans. It operates completely on a break-even
basis, with no-federal money invo'lved., except for some minor administrative
expenses. Legislation has passed the House' Commerce Comi'i.ttee and is
currently pending on the floor which would clear the. way for vanpool
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programs to be established directly under government direction. But we
need not wait for Congress to act before doing something positive on our
Usually, fares run approximately $22.-28. monthly (on a break-even
basis), depending upon the distance the van travels. Diivers ride for
free, and have use of the vans on weekends and at times when they are not
irl service. They pay a nominal mileage rate, but do not have to pay for
maintenance, insurance, etc. As an incentive to the driver to keep the
van full, he is sometimes.awarded the fare of the 10, 11, and 12th riders.
The advanges of van pooling for the agency, its employees, and the
-public, are substantial. Among them are:
***ADVANTAGES TO THE AGENCY***
1. Reduction.'in traffic congestion around the agency and in the parking
lots during rush hours.
Reduction in parking facilities and investment in parking. The 3M
Company saved about $2 million in construction costs because of reduced
.demand for parking as a direct result of its successful van pooling program.
..Employers currently provide free parking for 93% of this country's employees.
It can cost $600. per space for surface parking and between $100. and
$1,000.? per space for annual maintenance of each parking spot.
3. More efficient use of -land around the agency.
4. Less tardiness among employees.
5. Good public relations for the agency.
6. Availability of extra. vehicles. for agency use during the day, if needed.
If not, they can be rented or leased out to public service or volunteer
org;anizat1ons for nominal fees, which would further help defray the costs of
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1. t r a v e l i n g . The average rider can save $100.
per year in gasoline costs alone.
.'
2. Reduced risks and tension while commuting. Generally a more pleasant
trip to/from work.
the program.
7. Better employee morale.
***ADVANTAGES TO THE RIDERS***
3. Less insurance cost for personal automobile when not driven to work.
4. Reduced mileage on personal automobile and increased mobility for other
family members." Reduced need for a second or third car in the family.
5. Greater reliabili y than family car or car pools.
***ADVANTAGES TO THE COORDINATOR-DRIVER***
1. Free ride to work every morning.
2. Personal use of vehicle at minimal cost.
Fares from passengers in excess of a minumum number required by the
agency can be kept as personal income by the'driver
In to to these advantages, there are substantial. benefits to the
general public.
1.
Reduced congestion on highways.
2 .
Reduced air and nois pollution_
3.
Reduced ener
consumption.
In a recent
tudy, it was shown that a national program of van pooling,
even if it reached only 25% of the potential market, would save nearly 30
million miles per year in automobile traffic. It could,-by itself, cut peak
hour air pollution levels 12% and bring most cities' within the parameters
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of FPA's.tandards. Finally, it could achieve over 13% of the goal for
reduction in crude oil imports set by the Ford . Administration.
way workers get to work at the agency. It is practical, efficient, and
beneficial to all concerned, and I think we should look into it.
The agency has a responsibility to do its share to reduce wasteful
energy use. Van pooling offers a cheap and rapid means of improving the
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ADMAG :ITEMS
Jul 75 - Feb 76
Period Items
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Jul-Sep 75 1. Proposal to change term of Chairman
from one to three months. Accepted by group as
Chairman-- of 1 July 1975. `
2. Addressed complaint regarding Agency pre---
Recorder? sentation of Evangeline Hotel to new employees.
Memorandum prepared and subject subsequently
discussed with D/PERS who promised to review
matter.
3. Discussion of ways to publicize the DDA
History. and Functions document. Subsequent deci-
sion to present at Trends and Highlights.
4. Address from Messrs. Blake and McMahon
on the role of ADMAG. Projects suggested --
attend Trends and Highlights, review Employee
Perceptions memo, call in Office Directors for
briefings and review prior ADMAG projects for new
ideas.
5. Discussion of the memorandum on the DDA
Management Conference and its possible long-
range effects.
6. Selection of attendee to the July MAG
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7. Presentation to the D of a paper on
the Role of ADMAG -
8. Proposal to consider Agency sponsorship
of a car-pooling technique utilizing a non-
profit association and vans. Tabled for future
discussion.
9. Consultation with MAG regarding their
presentation to a Senior Seminar - Role of ADMAG.
10. Discussion to ask Deputy Office
Directors to address ADMAG.
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Items
25. Suggestion for Telephone Index of
employee services information, starting with
Office of Medical Services --111111111IN! W
26. Decision to poll various sub-career
groups and request briefings as to activities.
to present at Feb MAG meeting.
27. Discussion of approaches to a new.study
of the fitness report system. On agenda for 3
Mar meeting.
28. A study of past ADMAG topics for
presentation to the current group. A look at
previous ideas which might be re-considered at
this time. On agenda for 3 March meeting --
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