December 1979 and would be accomplished in two phases. The first phase of the project cost $86 million, which included the purchase of the SD&AE, 14 light rail vehicles, construction of a single-tracked electrified light rail line along the SD&AE Main Line and construction of a section of new street running tracks in Downtown San Diego. To control costs, only minor rehabilitation was conducted on the SD&AE corridor, with the MTDB replacing about 40% of the ties, welding the jointed rail, constructing electric catenaries, and installing an absolute block signal system. Funding for the project came entirely from Transportation Development Act state sales tax and local gas tax revenues. Federal funds were not actively sought due to the locally perceived notion that San Diego would not qualify due to low population densities, uncongested highways, and undefined corridors. In August 1980, the MTDB established San Diego Trolley, Inc. to operate and maintain the new light rail system and on July 26, 1981, service began. Trains operated every 20 minutes (timed to meet at four passing tracks on the single track sections) between 5 am and 9 pm and carried approximately 10,000 passengers a day. In light of the strong ridership, construction of the second phase was started almost immediately, which involved double-tracking the SD&AE corridor and purchasing 10 additional vehicles. Upon completion of double-tracking in February 1983, the total cost of the project was $116.6 million. Expansion The San Diego Trolley added a second line on March 23, 1986, that shared the same Downtown tracks and traveled east to Euclid Avenue on the La Mesa Branch of the SD&AE. The new route was called then called the Euclid Line (today's Orange Line). This line was extended to El Cajon by June 23, 1989, at which time it was renamed the East Line. Service was expanded beyond the old SD&AE right-of-way when the line was extended further east to Santee on August 26, 1995. The East Line's Bayside Connection extension to the Convention Center and Gaslamp Quarter opened on June 30, 1990. Later in the decade, the South Line was extended to the north, reaching Little Italy on July 2, 1992, and Old Town on June 16, 1996. The system was further expanded with Mission Valley Line that opened on November 23, 1997, and extended tracks north from Old Town to Fashion Valley Mall, San Diego Stadium, and Mission San Diego de