HomeMy WebLinkAboutItem 6g - SLO Transit 2026 Transit Asset Management Plan and Contingency Fleet Plan Item 6g
Department: Public Works
Cost Center: 5201
For Agenda of: 9/1/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Alex Fuchs, Mobility Services Business Manager
SUBJECT: APPROVAL OF SLO TRANSIT’S 2026 TRANSIT ASSET MANAGEMENT
PLAN AND CONTINGENCY FLEET PLAN
RECOMMENDATION
1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San
Luis Obispo, California, approving San Luis Obispo (SLO) Transit’s 2026 Transit Asset
Management Plan and Contingency Fleet Plan, and authorizing the City Manager to
approve future administrative updates to the plans” (Attachment A);
2. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final
version of the 2026 Transit Asset Management Plan (Attachment B); and
3. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final
version of the Contingency Fleet Plan (Attachment C); and
4. Authorize the City Manager to approve amendments and future administrative
updates to the Plans as necessary to maintain compliance with applicable Federal
Transit Administration requirements and to address changing operational conditions.
REPORT-IN-BRIEF
The City Council is being asked to consider the 2026 Tr ansit Asset Management (TAM)
Plan and Contingency Fleet Plan for SLO Transit. The TAM Plan is required by the
Federal Transit Administration (FTA) for recipients of federal transit funding and
establishes a framework for managing transit vehicles, faciliti es, equipment, and other
capital assets to maintain a State of Good Repair.1
The Contingency Fleet Plan is not required by the FTA but was developed to provide SLO
Transit with additional operational flexibility as the agency transitions to a predominantly
zero-emission fleet. SLO Transit has experienced varying levels of reliability and parts
availability among its battery-electric buses, including extended downtime associated with
a Proterra bus and operating limitations affecting a New Flyer bus. At the same time, the
six new Gillig battery-electric buses placed into service in March 2026 have demonstrated
relatively consistent performance.
1 State of Good Repair is defined as, “Condition in which a capital asset can operate at a full level of
performance”
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The proposed Contingency Fleet Plan would allow eligible vehicles that have reached the
end of their minimum useful life2 to be retained as inactive reserve vehicles and placed
into service only when needed for emergencies, prolonged vehicle outages, or other
operational contingencies. The Plan is intended to provide an additional safeguard for
service reliability while the City's transition to zero-emission technology continues.
POLICY CONTEXT
Section 405 – Fleet Management of the City’s Financial Management Manual establishes
responsibilities, policies, and procedures for managing the City’s fleet. The section
recognizes that the City has established a separate transit fleet and acknowledges that
transit equipment, including vehicles, has a specialized roll and unique requirements that
necessitate separate certification and record keeping. Management of the transit fleet is
subject to applicable federal regulations and FTA oversight.
The Moving Ahead for Progress in the 21st Century Act (MAP-21), enacted in July 2012,
amended federal transit law and required the FTA to establish a national TAM system. In
July 2016, the FTA published a final rule establishing TAM requirements for recipients of
federal financial assistance.
As a recipient of the FTA financial assistance, the City is required to maintain a TAM Plan,
establish performance measures, and to report asset-related information annually
through the FTA’s National Transit Database. Compliance with these requirements is
necessary for the City to remain eligible for federal funding.
TAM requirements differ based on the number of vehicles an agency operates during
peak regular service. SLO Transit is classified as a Tier II provider because it operates
100 or fewer vehicles during peak regular service. The required elements of a TAM Plan
for Tier II providers are described below.
1. Capital Asset Inventory - An inventory of the number and type of capital assets3. This
includes all capital assets owned by the provider, except non-vehicle equipment with
an acquisition value under $50,000.
2. Condition Assessment - Condition assessments of inventoried assets for which the
provider has direct capital responsibility. The assessments must provide enough
information to monitor and predict asset performance and to inform investment
prioritization.
3. Decision-Support Tool - A description of the decision-support tools the agency uses
to estimate capital investment needs over time and develop its investment priorities.
4. Prioritized List of Investments - A prioritized list of capital assets to be improved or
replaced to maintain or improve a State of Good Repair.
2 The FTA minimum useful life for heavy-duty buses is 12 years or 500,000 miles
3 The FTA defines Capital asset as, “a unit of rolling stock, a facility, a unit of equipment, or an element of
infrastructure used for providing public transportation”
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The 2026 TAM Plan, included as Attachment B, aligns with the City’s Climate Action Plan
and the State’s Innovative Clean Transit (ICT) regulation, both of which support reducing
greenhouse gas emissions. Consistent with these goals, the TAM Plan continues to
prioritize SLO Transit’s transition to zero-emission technologies by focusing on
procurement of zero-emission vehicles and charging infrastructure.
The FTA does not require transit agencies to develop or maintain a Contingency Fleet 4
Plan. However, FTA policy permits transit agencies to retain vehicles beyond their useful
life and use those vehicles for non-routine or contingency purposes. Specifically, FTA
Circular 5010.1F, Award Management Requirements, Subsection 3.n.4, “Contingency
Fleet” on document page 154, permits agencies that have introduced or are transitioning
to a zero-emission fleet to include eligible vehicles in a contingency fleet.
DISCUSSION
The 2026 TAM Plan and Contingency Fleet Plan serve complementary purposes. The
TAM Plan provides the federally required framework for managing SLO Transit's capital
assets and identifying future investment needs, while the Contingency Fleet Plan provides
an operational safeguard to help maintain service reliability during the transition to a
predominantly zero-emission fleet.
Contingency Fleet Plan
SLO Transit does not currently have a Contingency Fleet Plan. Staff is p roposing the Plan
at this time because the transition to zero-emission technology has introduced additional
fleet management considerations, including vehicle reliability, parts availability,
specialized maintenance requirements, and potentially longer rep air periods. These
challenges are not unique to SLO Transit and have been experienced by transit agencies
transitioning to battery-electric technology nationwide.
SLO Transit has experienced varying levels of reliability among its battery-electric buses,
depending on manufacturer, vehicle age, and component availability. These experiences
demonstrate the value of maintaining a limited inactive reserve fleet that can be used if
significant vehicle outages affect the City's ability to maintain scheduled service. To help
mitigate these risks, many California transit agencies, including San Luis Obispo Regional
Transit Authority, Monterey-Salinas Transit, and Santa Barbara Metropolitan Transit
District, have established contingency fleets to provide operational flexibility during the
transition to zero-emission technologies.
The 2025 Short-Range Transit Plan (SRTP) update recognizes the need to continue
operating diesel-powered buses during the transition to a zero -emission fleet and
recommends refurbishing several mid-life diesel-powered buses to extend their useful life
and maintain sufficient active fleet capacity to support future service delivery. However,
the SRTP does not address the establishment or use of a separate contingency fleet , as
this was not considered at the time the plan was updated.
4 Contingency fleet means inactive rolling stock reserved or retained for emergencies or other unforeseen
and justified activities.
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The proposed Contingency Fleet Plan would not change SLO Transit's long -term
transition to zero-emission technology and would not be used to support routine daily
operations. Instead, eligible vehicles that have reached their minimum useful life would
be retained as inactive reserve vehicles and could be placed into service only when
needed for emergencies, prolonged vehicle outages, or other operational contingencies.
Maintaining a small fleet of reserve vehicles may result in slightly higher costs being paid
to the City’s transit services contractor for periodic preventative maintenance activities.
Staff will track and monitor any related costs as part of the management and oversight of
the contingency fleet.
The final draft of the Contingency Fleet Plan, included as Attachment C, establishes the
procedures for maintaining and activating these vehicles and includes all required FTA
elements.
Battery Electric Bus Performance
The City's experience with its current battery-electric fleet provides context for the
proposed contingency fleet approach. SLO Transit operates buses from multiple
manufacturers, each with varying levels of reliability and aftermarket support. Table 1
summarizes the issues by bus manufacturer and the number of each bus brand in the
fleet. In September 2023, Proterra filed for Chapter 11 bankruptcy, Phoenix Motorcars
subsequently assumed responsibility for providing third-party support for Proterra buses.
Since then, parts for Proterra buses have remained in limited supply and often have a
long lead time, resulting in extended periods of downtime. SLO Transit’s Proterra bus has
been out of service since March 2026 due to a failed air compressor. The City’s transit
operation and maintenance services provider, MV Transportation, is currently working to
source parts and third-party assistance to complete the repair.
New Flyer, one of the other bus manufacturers, remains in business but is currently
addressing a nationwide recall affecting battery systems on certain model year buses.
SLO Transit’s New Flyer bus is subject to the recall and is tentatively scheduled for battery
system replacement at the end of this calendar year. Although the bus remains available
for service, it cannot be charged beyond 75 percent of its battery capacity, which limits
the bus’s ability to operate certain service assignments. The bus has also experienced a
separate issue involving an imbalance among its individual battery packs. This condition
can cause the battery management system to shut down the bus. New Flyer is working
to resolve this issue so the bus can remain in service until the battery system is replaced.
By comparison, the six new Gillig electric buses put int o service in March 2026 have
demonstrated relatively consistent performance. The buses have experienced minor
issues, including intermittent air conditioning failures and ADA ramp deployment issues,
but Gillig has responded promptly to address these issues and minimize vehicle
downtime. Despite the reliability challenges experienced with some vehicles, battery-
electric buses accounted for nearly half of all service miles driven between April and June
2026. This percentage is expected to continue increasing as the MV Transportation team
becomes more familiar with SLO Transit’s service requirements and optimizes fleet
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assignments and charging operations.
Table 1 - Summary of Issues by Electric Bus Manufacturer
Bus Manufacturer No. of Buses Issues
Proterra 1
Lack of manufacturer support
Limited parts supply availability
Failed air compressor
New Flyer 1
Open recall on battery system
Imbalance among battery packs causing
bus to shut down
Gillig 85 Intermittent air conditioning issues
ADA ramp deployment failure (2 buses)
Overall, the experience to date demonstrates that reliability varies among manufacturers,
while the newest Gillig buses have generally demonstrated consistent performance. The
City therefore continues to move forward with its zero-emission fleet transition while
maintaining an operational safeguard to address potential extended vehicle outages.
Charging Infrastructure
As of the date of this report, SLO Transit is nearing completion of Phase Two of its
charging infrastructure buildout, which will provide sufficient capacity for all 10 battery -
electric buses to charge simultaneously. Two additional battery-electric buses are ready
to enter service and, once those buses are placed into service, SLO Transit will have a
total of 10 battery-electric buses in its active fleet. T he expanded charging capacity is
expected to allow a majority of SLO Transit’s service to be provided by battery-electric
buses going forward. A Contingency Fleet Plan will ensure that any future significant
issues affecting the electric buses do not interfere with service delivery.
Previous Council or Advisory Body Action
City Council approved SLO Transit's initial TAM Plan on January 16, 2018. The TAM Plan
was subsequently updated in 2022 but was not presented to Council , in part due to
turnover in transit staff between 2021 and 2023. The FTA reviewed the 2022 update as
part of the City's subsequent Triennial Review and determined that it complied with
applicable federal requirements; no findings were issued related to the TAM Plan.
The 2026 TAM Plan and Contingency Fleet Plan were not presented to the Mass
Transportation Committee for consideration because they address administrative and
compliance requirements rather than matters within the Committee’s purview, which
includes changes to routes, schedules, capital projects, fares, marketing, and additional
services.
5 6 buses were delivered in 2025 and are currently in service. 2 buses were delivered in 2026 and being
readied for service.
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Public Engagement
The TAM Plan and Contingency Fleet Plan address asset management, capital
procurement, and operational continuity and do not propose changes to transit fares,
routes, service levels, or access to service. Accordingly, no separate public engagement
process was conducted for these plans. Public comment remains available through
written correspondence to City Council prior to the meeting or public testimony at the
Council meeting.
CONCURRENCE
The City’s transit operations and maintenance services contractor, MV Transportation,
reviewed both the draft 2026 Transit Asset Management Plan and the draft Contingency
Fleet Plan and concur with the recommended actions in this report. Additionally, FTA
Region 9 Office reviewed the draft Contingency Fleet Plan and confirmed that they did
not have any comments or suggested modifications.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
actions in this report, because the actions do not constitute a “project” under CEQA
Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ 0 $ 0 $ 0 $ 0
Transit Fund $ 0 $ 0 $ 0 $ 0
Federal $ 0 $ 0 $ 0 $ 0
Fees $ 0 $ 0 $ 0 $ 0
Total $ 0 $ 0 $ 0 $ 0
The recommended actions in this report do not have a direct fiscal impact. However,
failure to update and approve SLO Transit’s Transit Asset Management (TAM) Plan by
the October 1, 2026, deadline would place the City out of compliance with FTA
requirements. This could result in a finding during a future FTA Triennial Review and
require corrective actions to restore compliance. Continued findings of noncompliance
could affect the City's eligibility to receive future federal financial assistance.
ALTERNATIVES
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Item 6g
1. Council could decide not to approve the 2026 Transit Asset Management Plan.
Should Council pursue this option, SLO Transit would not be in compliance with
applicable FTA requirements. This could result in a finding during a future FTA
Triennial Review and require the City to implement corrective actions to restore
compliance. Continued noncompliance could affect the City's eligibility to receive
future federal financial assistance.
2. Council could decide not to approve the Contingency Fleet Plan. Should Council
pursue this option, staff would dispose of vehicles that have reached or exceeded their
minimum useful life in accordance with FTA requirements once replacement vehicles
have entered revenue service. SLO Transit would continue to rely on the replacement
fleet and work with its contracted operations and maintenance provider to meet
service requirements. However, the City would have fewer reserve vehicles available
to respond to unforeseen maintenance issues, service disruptions, or other
operational contingencies during the transition to a zero-emission fleet.
3. Council could decide to direct staff to make changes to either or both plans
prior to approval. Should Council pursue this option, staff will incorporate the
changes into the final versions of the plans and route them for the City Manager’s
approval. If Council directs staff to make significant changes to the 2026 Transit Asset
Management Plan, then there is limited time for staff to revise the plan and return to
Council for consideration before the October 1, 2026, deadline.
ATTACHMENTS
A - Draft Resolution approving the 2026 Transit Asset Management Plan and
Contingency Fleet Plan
B - 2026 Transit Asset Management Plan, Final Draft
C - Contingency Fleet Plan, Final Draft
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R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING SAN LUIS OBISPO (SLO)
TRANSIT’S 2026 TRANSIT ASSET MANAGEMENT PLAN AND
CONTINGENCY FLEET PLAN, AND AUTHORIZING THE CITY
MANAGER TO APPROVE FUTURE ADMINISTRATIVE UPDATES TO
THE PLANS
WHEREAS, the City of San Luis Obispo receives federal financial assistance from
the Federal Transit Administration (FTA) under the Urbanized Area Formula Grants
program for the operation of San Luis Obispo (SLO) Transit, a public transportation
system; and
WHEREAS, the FTA requires transit operators to develop, implement, and update
their Transit Asset Management (TAM) Plan at least every four years in accordance with
49 Code of Federal Regulations (CFR) Part 625; and
WHEREAS, SLO Transit is a Tier II transit provider under 49 CFR Part 625 and is
therefore required to develop and carry out a TAM Plan addressing the applicable Tier II
requirements, including an inventory of capital assets, condition assessments of
inventoried assets, a description of the decision -support process used to make capital
investment decisions, and a prioritized list of investments to maintain or improve the
capital assets; and
WHEREAS, the City has prepared an update to the TAM Plan in accordance with
49 CFR Part 625, which also supports the City’s Climate Action Plan and compliance with
the State of California’s Innovative Clean Transit regulations; and
WHEREAS, FTA Circular 5010.1F, Award Management Requirements, permits
the use of a contingency fleet consisting of inactive rolling stock retained for emergencies
or other unforeseen and justified activities, including the transition to zero -emission
vehicles, provided such vehicles have met applicable minimum useful life r equirements
and are properly stored, maintained, and documented in a contingency plan; and
WHEREAS, SLO Transit is transitioning to a zero-emission bus fleet and has
developed a Contingency Fleet Plan to establish the criteria and procedures for retaining
eligible vehicles in a contingency fleet, including documentation of vehicle useful life,
justification for contingency fleet status, activation periods, storage and protection, and
required maintenance activities; and
WHEREAS, approval of the 2026 Transit Asset Management Plan and
Contingency Fleet Plan will support the City's continued compliance with applicable FTA
requirements and provide a basis for managing SLO Transit's capital assets and
contingency fleet in response to changing operational conditions; and
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Resolution No. _____ (2026 Series) Page 2
R ______
WHEREAS, the City Council desires to authorize the City Manager, as SLO
Transit’s Accountable Executive, to approve future administrative updates to the 2026
Transit Asset Management Plan and Contingency Fleet Plan when such updates are
necessary to maintain compliance with applicable FTA requirements or address changing
operational conditions.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
1. Approve San Luis Obispo (SLO) Transit’s 2026 Transit Asset Management
Plan and Contingency Fleet Plan and authorize the City Manager, as SLO
Transit’s Accountable Executive, to sign the final versions of these Plans ;
and
2. Authorize the City Manager, or their designee as authorized by the City
Manager, to approve administrative updates, amendments, and revisions
to the 2026 Transit Asset Management Plan and Contingency Fleet Plan
that are necessary to maintain compliance with applicable federal laws and
regulations or to reflect changes in SLO Transit's capital assets, asset
condition, inventory, maintenance practices, or operational conditions.
SECTION 1. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the recommended action because the action does not
constitute a “Project” under CEQA Guidelines Sec. 15378.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 1st day of September 2026.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2026 Series) Page 3
R ______
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, on ______________________.
___________________________
Teresa Purrington
City Clerk
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City of San Luis Obispo, Title, Subtitle
Page 1 of 12
City of San Luis Obispo
San Luis Obispo (SLO) Transit
990 Palm Street
San Luis Obispo, CA 93401
Transit Asset Management (TAM) Plan
Approved September 1, 2026
Accountable Executive
Whitney McDonald, City Manager
Date
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Table of Contents
Introduction .................................................................................................................................... 3
Target Setting Methodology ........................................................................................................... 4
Asset Inventory ............................................................................................................................... 5
Revenue Vehicles ........................................................................................................................ 5
Equipment – Non-Revenue Service Vehicles .............................................................................. 5
Facilities....................................................................................................................................... 6
Asset Condition Assessment ........................................................................................................... 7
Revenue and Non-Revenue Vehicles Condition ......................................................................... 7
Facilities Condition ...................................................................................................................... 7
Decision Support Tools ................................................................................................................... 8
Investment Prioritization ................................................................................................................ 8
Transition to Fully Electric Fleet .................................................................................................. 9
Charging Infrastructure ............................................................................................................... 9
Cutaway Replacement ................................................................................................................ 9
ADA Van Replacement .............................................................................................................. 10
Appendices .................................................................................................................................... 10
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Page 3 of 12
Introduction
The City of San Luis Obispo (City) is centrally located along California's Central Coast, halfway
between San Francisco and Los Angeles. The City is the County Seat for San Luis Obispo County
and as such, it is also the governmental, economic, medical and educational hub for the other
cities in the county. San Luis Obispo has a population of roughly 47,063 (US Census, 2021) with
an estimated additional population of 22,279 students when California Poly Technic State
University is in session.
SLO Transit is the local fixed-route transit operation for the City, operating under the City’s Public
Works and Utilities Department. As of September 2025, SLO Transit operates 11 vehicles at peak
along eight fixed-routes, one tripper route, and one express route; within the 23 square miles of
the city limits of San Luis Obispo and the adjacent California Poly Technic State University campus.
SLO Transit operates Monday through Friday, approximately from 6:00 a.m. to 11:00 p.m. and
Saturday and Sunday from 8:00 a.m. to 8:00 p.m.
Similar to other agencies across the nation that were affected by the pandemic, SLO Transit has
steadily increased service and ridership over the last four years and is on track to return to pre-
pandemic levels of service by fall 2026. SLO Transit’s ridership demographics reflect a broad cross
section of riders, including but not limited to seniors, persons with disabilities, socially or
economically transit dependent, K-12 Students, collegial students, working professionals, and
choice riders. The operation of all fixed-route services is contracted out to a third-party vendor;
currently awarded to MV Transportation, Inc.
For door-to-door demand response paratransit services, SLO Transit provides part of its funding
allocation, off-the-top, to the county's consolidated para-transit service provider known as Run-
About. Run-About is operated by the San Luis Obispo Regional Transit Authority (RTA), who also
provides regional fixed-route services as well as local fixed-route services in the North County,
South County, and Morro Bay areas.
SLO Transit aligns with the City’s Climate Action Plan, which centers on reducing greenhouse gas
emissions along with following the California Air Resources Board (CARB) adopted Innovative
Clean Transit (ICT) fleet regulations by converting its existing diesel-powered fleet to a 100
percent zero-emission bus (ZEB) fleet by 2040. In response to the City’s Climate Action Plan, and
the State’s ICT regulation, SLO Transit developed its Zero-Emission Bus Rollout Plan which
documents the agency’s plan for replacing its diesel-powered fleet with electric powered buses.
SLO Transit currently has eight electric buses in service with two more scheduled to be in service
by fall 2026. The State’s and City’s climate action goals is a determining factor in supporting the
investment decisions for bus replacement prioritization.
SLO Transit operates fewer than 100 vehicles in revenue service during peak regular service
across all non-rail fixed route modes and is therefore considered a Tier II provider as defined by
49 Code of Federal Regulations (CFR) Part 625.
Whitney McDonald, City Manager, is the designated Accountable Executive and has the authority
to set transit asset management policies, approve the Transit Asset Management (TAM) Plan,
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City of San Luis Obispo, Title, Subtitle
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and direct the allocation of resources necessary to achieve and maintain a State of Good Repair
in accordance with 49 CFR Part 625.
Target Setting Methodology
As part of an ongoing scheduling and planning process, SLO Transit reviews the percentage of
vehicles within the asset classes that have met or exceeded their Federal Transit Administration
(FTA)-defined Useful Life Benchmark (ULB). SLO Transit’s plan states that no more than 50
percent of the revenue vehicle, fixed route fleet is to exceed the ULB. Table 1 below outlines SLO
Transit’s 2026 through 2030 performance targets and measures. These targets align with the
FTA’s TAMplate application, the FTA’s Transit Economic Requirements Model (TERM) scale for
the maintenance and bus yard facility rating, and with SLO Transit’s annual National Transit
Database (NTD) reporting.
Table 1 - Asset Performance Targets and Measures
Asset Category
Performance Measure Asset Class 2026
Target
2027
Target
2028
Target
2029
Target
2030
Target
Age - % of vehicles that have
met or exceeded their ULB
BU - Bus 21% 7% 7% 29% 29%
CU - Cutaway N/A 0% 0% 0% 0%
DB – Double Decker 100% 100% 100% 100% 0%
RT – Rubber Tire
Vintage Trolley 100% 100% 0% 0% 0%
Age - % of vehicles that have
met or exceeded their Useful
Life Benchmark (ULB)
Non-Revenue /
Service Automobiles,
Trucks and
Equipment.
100% 0% 50% 50% 50%
Condition - % of facilities with
a condition rating below 3.0
on the TERM Scale
Maintenance Facility 0% 0% 0% 0% 0%
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City of San Luis Obispo, Title, Subtitle
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Asset Inventory
This section provides an inventory of City-owned transit assets. Table 2 is a summary of the transit
asset inventory including quantity, average age, average mileage (vehicles only), and average and
total replacement cost estimates. The following assets fall into three FTA-defined categories:
1. Revenue Vehicles
2. Equipment
3. Facilities
Revenue Vehicles
SLO Transit currently operates a total of 16 revenue vehicles made up of 14 Low-floor heavy-duty
buses, 1 Double Decker bus, 1 medium-duty cutaway bus, and 1 Rubber-tired Vintage Trolley.
The existing cutaway bus’s engine failed in December 2024 and was disposed of in September
2025. SLO Transit plans to purchase a new battery electric cutaway bus in 2026 which is expected
to enter service by 2027.
SLO Transit’s Short-Range Transit Plan includes a target that no more than 50 percent of its
revenue vehicles should exceed their useful life benchmarks (ULBs)1 in terms of vehicle age. SLO
Transit’s priority is to replace existing diesel-powered buses that have surpassed their ULBs with
battery-electric (BEB) buses. SLO Transit currently has 8 BEBs in service and 2 additional BEBs
have been delivered but have not yet entered revenue service. SLO Transit anticipates that the 2
additional BEBs will enter service in fall 2026. These 10 BEBs were purchased to replace older
diesel-powered buses that have exceeded their ULBs.
The City’s adopted 2025-27 Financial Plan includes the purchase of 1 battery electric cutaway bus
in Fiscal Year (FY) 2025-26 to replace the recently disposed of gasoline-powered model (page
293) as well as the purchase of 3 BEBs in FY 2026-27 to replace existing diesel-powered buses
(page 267).
Equipment – Non-Revenue Service Vehicles
SLO Transit currently owns 1 Ford F-350, utility truck and 1 ADA Van both of which are used by
the operations and maintenance contractor. SLO Transit’s TAM Plan includes a target that no
more than 50 percent of its support vehicles (non-revenue) to exceed their ULBs. The ADA Van
is scheduled to be replaced with a battery-electric equivalent in 2026. Even though the Zero-
emission Rollout Plan does not require procurement of non-revenue zero-emission vehicles, the
1 FTA tracks the performance of revenue vehicles (Rolling Stock) and non-revenue service vehicles (Equipment), by
asset class, by calculating the percentage of vehicles that have met or exceeded the useful life benchmark (ULB). FTA
has set a default ULB as the expected service years for each vehicle class in the table below. ULB is the average
number of years at which a vehicle would reach a 2.5 rating on the FTA Transit Economic Requirements Model
(TERM) scale, assuming a standard maintenance schedule.
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City of San Luis Obispo, Title, Subtitle
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City’s Fleet Purchasing Policy requires all new City-owned fleet vehicles to be zero-emission if
zero-emission equivalents are available.
Facilities
SLO Transit maintains and operates its fleet from an operations and maintenance facility located
at 29 Prado Road, San Luis Obispo, CA. The facility is composed of 24 bus bays, two maintenance
bays with lift-jacks, a bus wash facility, administrative offices, and electric vehicle charging
infrastructure.
With the age of the facility being 38 years, SLO Transit conducts monthly inspections to assess
the condition and function of different facility elements. Any deficiencies are documented and
repaired. Installation of four dual-port charging stations, two power blocks, and transformer
upgrades was recently completed. Th is equipment is in addition to the existing two single-port
charging stations installed in 2024. This equipment is sufficient to support the operation of 10
BEBs; however, additional equipment will need to be purchased and installed to support the full
transition to a zero-emission fleet.
The City is also working on a multi-site solar panel project which includes installation of panels at
the transit operations and maintenance yard to offset daytime electrical needs of the facility.
Table 2 - Asset Inventory Summary
Asset Category / Class Total No.
Average
Age (in
Years)
Average
Annual
Mileage
Average
Replacement
Cost/Value
Total
Replacement
Cost/Value
Revenue Vehicles 16 7.3 25,225 $ 1,403,400 $ 25,260,600
BU – Bus 14 5.8 29,994 $ 1,410,000 $ 22,560,000
CU – Cutaway2 -- -- -- $ 300,600 $ 300,600
DD – Double Decker Bus 1 17 7,925 $ 1,750,000 $ 1,750,000
RT – Rubber-tired Vintage Trolley 1 18 4,373 $ 650,000 $ 650,000
Equipment (Non-Revenue Vehicles) 2 12 4,780 $ 105,000 $ 210,000
Ford F-350 1 10 2,175 $ 60,000 $ 60,000
ADA Van 1 14 7,385 $ 150,000 $ 150,000
Facilities 1 38 -- $ 10,000,000 $ 10,000,000
Bus Maintenance Facility 1 38 -- $ 10,000,000 $ 10,000,000
2 Historically, SLO Transit has operated a cutaway bus as part of its revenue fleet. However, the existing cutaway
bus’s engine failed in December 2024 and was disposed of in September 2025. SLO Transit plans to purchase a new
zero-emission cutaway bus in 2026 which is expected to enter service by 2027.
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City of San Luis Obispo, Title, Subtitle
Page 7 of 12
Asset Condition Assessment
Revenue and Non-Revenue Vehicles Condition
SLO Transit has assessed its rolling stock condition using an age-based methodology in alignment
with the FTA’s default Useful Life Benchmark (ULB), supplemented by maintenance performance
data and contractor-reported reliability metrics. SLO Transit utilizes the FTA’s ULBs of 12 years
for heavy-duty buses (which includes the Double Decker bus), 12 years for the Rubber-tired
Vintage Trolley, and 10 years for the cutaway bus. An overall condition assessment is used for
the bus maintenance facility.
With the majority of diesel-powered buses being replaced by BEBs in 2026, SLO Transit is working
closely with its operations and maintenance services contractor to review ongoing preventative
maintenance requirements and performance metrics to ensure the BEBs remain in a state of
good repair. In the upcoming years, SLO Transit expects to implement a planned service
expansion which will increase the use and mileage of these BEBs.
At the time of this plan update, 31 percent of SLO Transit’s revenue vehicle fleet has either met
or exceeded its ULB. The percentage of vehicle at or beyond its useful life decreased significantly
when 6 new BEBs entered service in March 2026. SLO Transit anticipates that this percentage will
decrease further with 2 additional BEBs expected to enter service in fall 2026. The older diesel
buses replaced by these new BEBs will be removed from active service and retired.
Facilities Condition
Facilities condition is assessed using FTA’s TERM scale. The TERM scale rates the condition of an
asset on a scale of one to five:
1 = Poor (asset is in need of immediate repair or replacement or may have critically
damaged components)
2 = Marginal (asset is reaching or is just past the end of its useful life; there are an
increasing number of defective or deteriorated components and increasing maintenance
needs)
3 = Adequate (asset has reached its mid-life; some moderately defective or deteriorated
components)
4 = Good (asset shows minimal signs of wear, some slightly defective or deteriorated
components)
5 = Excellent (asset is new with no visible defects)
SLO Transit has set a standard of not falling below a 3 on the FTA-defined TERM scale and has
currently rated it at a 3.5. While the facility currently meets a state of good repair, its age and
current status present long-term issues related to electrical capacity and fleet electrification
needs, which are being addressed through a phased capital project for infrastructure
electrification.
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City of San Luis Obispo, Title, Subtitle
Page 8 of 12
Table 3 - Asset Condition Assessment
Asset Category / Class Total No.
Average
Age (in
Years)
Average
Annual
Mileage
Average
TERM
Condition
Average
Value
% At or
Past ULB
Revenue Vehicles 16 7.3 25,225 -- $ 1,200,000 31%
BU – Bus 14 5.8 29,994 -- $ 1,410,000 21%
DD – Double Decker Bus 1 17 7,925 -- $ 1,750,000 100%
RT – Rubber Tire Vintage Trolley 1 18 4,373 -- $ 650,000 100%
Equipment (Non-Revenue Vehicles) 2 12 4,780 -- $ 105,000 50%
Ford F350 1 10 2,175 -- $ 60,000 0%
ADA Van 1 14 7,385 -- $ 150,000 100%
Facilities 1 38 -- 3.5 $ 10,000,000 0%
Bus Maintenance Facility 1 38 -- 3.5 $ 10,000,000 0%
Decision Support Tools
The following tools and planning documents are used in making investment decisions:
Transit Fleet Roster - SLO Transit uses Microsoft Excel to track and maintain its fleet data including
mileage, age, costs, and the percentage of fleet that has met or exceeded its ULB.
Short-Range Transit Plan - The Short-Range Transit Plan identifies projects and fleet requirements
to maintain compliance with state mandates as well as implement planned service expansion
needs.
ICT Zero-Emission Roll-Out Plan - The Innovative Clean Transit (ICT) fleet regulation requires
transit agencies to shift to an all-electric fleet by 2040. SLO Transit developed its Zero-Emission
Roll-Out Plan to align with the state regulations along with the City of San Luis Obispo’s Climate
Action Plan to achieve community-wide carbon neutrality by 2035.
FTA TAMPlate - FTA’s TAMPlate model was used to derive targets and tables for revenue vehicles,
non-revenue support vehicles, facilities, conditional assessments and costs.
Investment Prioritization
Investment priorities are determined based on the following criteria:
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City of San Luis Obispo, Title, Subtitle
Page 9 of 12
Asset condition relative to Useful Life Benchmarks
Impact on safety and service reliability
Compliance with state and federal regulatory requirements
Support of zero-emission fleet transition
Ability to maintain or improve the State of Good Repair
SLO Transit has operated a majority of its diesel-powered fleet beyond their Useful Life
Benchmarks (ULBs) due to the pandemic, staff turnover, and changes in federal and state funding
availability; all of which delayed procurement of replacement buses. The City has prioritized
carbon-neutrality goals outlined in its Climate Action Plan which adopted specific sector goals
aimed at reducing greenhouse gas emissions. Along with the City’s Climate Action Plan, SLO
transit is following the State’s Innovative Clean Transit (ICT) regulation which impacts transit
vehicle procurement for small agencies beginning in 2026.
SLO Transit is in the process of transitioning its diesel-powered fleet to a battery electric, zero-
emission fleet. The transition to an all-electric fleet remains a top priority for SLO Transit and, as
such, all further purchases of revenue and non-revenue vehicles will be BEBs assuming market
availability at time of purchase. SLO Transit has identified associated capital investment priorities
that will support the electrification of its fleet. These priority investments are discussed below
and are summarized in Table 4 below.
Transition to Fully Electric Fleet
A top priority is to transition the existing diesel-powered fleet to an all-electric fleet. Along with
the State’s ICT requirements, SLO Transit’s dedication to fleet reliability and safety remains a top
priority in allocating funds to these assets. With a significant percentage of existing buses past
their ULBs and a steady uptick in maintenance requirements over the past five years, SLO Transit
has made funding the transition a top priority.
Charging Infrastructure
In order to transition to an all-electric fleet, the City’s transit operations and maintenance facility
requires improvements to install the necessary electric vehicle charging infrastructure. In 2024,
the City completed the groundwork, electrical upgrades, and installation of 2 single-port charging
stations to support the 2 BEBs in service. A second project is nearing completion to install four
additional dual-port charging stations and support equipment, transformer upgrades, and minor
groundwork needed to support the 8 BEBs delivered in 2025 and 2026.
Future construction is needed to complete the charging infrastructure build-out. Given the
critical role charging infrastructure plays in SLO Transit’s continued transition to zero-emission
operation, investment in future infrastructure projects is ranked as a ‘High’ priority.
Cutaway Replacement
The City’s gasoline-powered cutaway bus experienced an engine failure in December 2024 and
was disposed of in September 2025. The City’s adopted financial plan includes budget for
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City of San Luis Obispo, Title, Subtitle
Page 10 of 12
purchase of a replacement cutaway bus with a battery-electric equivalent in 2026. With the
cutaway’s main purpose of serving a tripper route, this project investment priority is ranked
lower compared to other fleet replacements.
ADA Van Replacement
Also, due to the age of this support vehicle along with maintenance issues, the ADA Van is
scheduled to be replaced in 2026 with a battery-electric equivalent. This support vehicle is used
by contracted personnel to provide service for riders left behind due to overcrowding. The
contractor also provides support vehicles used in the performance of the contract, so
replacement of the City’s ADA Van is considered a ‘Medium’ priority.
Table 4 - Investment Priorities List
Project Name Project
Year Asset Category Asset Class Unit Cost Priority
Replace (1) ADA Van
No. 1202 2026 Equipment Other Rubber
Tire Vehicles $ 150,000 Medium
Replace (1) Cutaway
No. 1167 2026 Revenue
Vehicles CU – Cutaway $ 300,600 Medium
Replace (1) 40’ Diesel Bus
No. 1366 2027 Revenue
Vehicles BU – Bus $ 1,410,000 High
Charging Infrastructure 2027 Facilities Facility $ 700,000 High
Replace (1) Trolley
No. 0856 2028 Revenue
Vehicles
RT – Rubber Tire
Vintage Trolley $ 650,000 Low
Replace (3) 40’ Diesel Buses
Nos. 1768, 1769, 1770 2029 Revenue
Vehicles BU – Bus $ 4,230,000 Medium
Appendices
Appendix A - Fleet Replacement Module Table
Appendix B – Asset Register Table
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Page 11 of 12
Appendix A - Fleet Replacement Module
2026 2027 2028 2029 2030
Fleet Type No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
No. of
Units
Cost
(in 2026
Dollars)
2011 Cutaway Bus 1 $ 300,600
2012 ADA Van 1 $ 150,000
2013 Heavy-duty bus 1 $ 1,410,000
2009 Double Decker
bus 1 $ 1,750,000
2008 Replica Trolley 1 $ 650,000
2017 Heavy-duty bus 3 $ 4,230,000
Total Cost in Current
Year Dollars $ 450,600 $ 1,410,000 $ 2,400,000 $ 4,230,000 $ 0
Inflation Rate 0 10% 20% 30% 40%
Compounded
Inflation 1 1.10 1.20 1.30 1.40
Total Cost in
Replacement Year
Dollars
$ 450,6000 $ 1,551,000 $ 2,880,000 $ 5,499,000 $ 0
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Page 12 of 12
Appendix B - Asset Register
Revenue Vehicle Assets
Current Year 2026 2026
Revenue Vehicles
Asset Agency Fleet Asset Age Acquisition Vehicle Repolacement Useful Life Useful Life
Category ID Class (Yrs.)Year Mileage Cost/Value Benchmark Remaining
Revenue Vehicle 1264 BU 14 2012 428,131 $1,410,000 12 -2
Revenue Vehicle 1365 BU 13 2013 487,840 $1,410,000 12 -1
Revenue Vehicle 1366 BU 13 2013 452,197 $1,410,000 12 -1
Revenue Vehicle 1768 BU 9 2017 360,773 $1,410,000 12 3
Revenue Vehicle 1769 BU 9 2017 375,037 $1,410,000 12 3
Revenue Vehicle 1770 BU 9 2017 327,691 $1,410,000 12 3
Revenue Vehicle 2271 BU 4 2022 28,953 $1,410,000 12 8
Revenue Vehicle 2272 BU 4 2022 46,637 $1,410,000 12 8
Revenue Vehicle 2573 BU 1 2025 3,794 $1,410,000 12 11
Revenue Vehicle 2574 BU 1 2025 5,017 $1,410,000 12 11
Revenue Vehicle 2575 BU 1 2025 2,408 $1,410,000 12 11
Revenue Vehicle 2576 BU 1 2025 1,952 $1,410,000 12 11
Revenue Vehicle 2577 BU 1 2025 4,374 $1,410,000 12 11
Revenue Vehicle 2578 BU 1 2025 4,440 $1,410,000 12 11
Revenue Vehicle 963 DB - Double Decker 17 2009 134,728 $1,750,000 12 -5
Revenue Vehicle 856 RT - Rubber-tire Vintage 18 2008 78,720 $650,000 12 -6
Equipment (Non-Revenue Vehicles)
Asset Agency Fleet Asset Age Vehicle Repolacement Useful Life Useful Life
Category ID Class (Yrs.)Mileage Cost/Value Benchmark Remaining
Equipment 1636 Service Truck 10 2016 21,750 $60,000 14 4
Equipment 1202 MV - Mini Van 14 2012 103,389 $150,000 8 -6
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San Luis Obispo (SLO)
Transit
Contingency Fleet Plan
Prepared by:
City of San Luis Obispo
Public Works and Utilities Department
990 Palm Street
San Luis Obispo, CA 93401
www.slocity.org
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Page 2 of 5
Revision History
Revision No. Date Description
1.0 September 1, 2026 Approval of initial plan
Document Approval
Approved By Position Date Signature
Whitney McDonald City Manager MMM, DD, YYYY
This Contingency Fleet Plan is approved by the City Manager, who serves as the
Accountable Executive for San Luis Obispo (SLO) Transit, as authorized by the City
Council of the City of San Luis Obispo on September 1, 2026. The City Manager is also
authorized to approve future administrative updates to the Plan as necessary to maintain
compliance with applicable Federal Transit Administration requirements and to address
changing operational conditions.
Purpose
The Contingency Fleet Plan (Plan) is to ensure the continued provision of safe, reliable,
and efficient public transit service during the City of San Luis Obispo’s (City) transition
from conventional diesel-powered buses to battery-electric buses (BEBs).
The City operates a fixed-route fleet of 18 revenue vehicles. Due to the relatively small
fleet size, the temporary unavailability of even a few vehicles may significantly impact
service delivery. As such, maintaining a contingency fleet is necessary to ensure
continuity of operations during the phased transition to zero-emission technologies.
This Plan establishes the policy and procedures for maintaining and deploying a limited
contingency fleet of legacy vehicles. This Plan also outlines the periodic need and
justification for the City’s contingency fleet as required by the Federal Transit
Administration (FTA) prior to establishing a contingency fleet.
Staff reviews this plan annually and updates it as necessary to support the contingency
fleet and related processes and procedures. The City’s active rolling stock is not part of
the contingency fleet and the City does not calculate or include contingency fleet vehicles
into its spare ratio.
Regulatory Framework
This Plan is developed in accordance with applicable federal requirements governing
transit asset management and federally funded property. While the Code of Federal
Regulations does not specifically define or regulate contingency fleets, this Plan is
consistent with 49 CFR Part 625 (Transit Asset Management), which requires recipients
to implement lifecycle management practices for capital assets.
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In addition, this Plan aligns with guidance set forth by FTA Circular 5010.1F (Award
Management Requirement) which permits recipients to retain vehicles beyond their
minimum useful life and to use these vehicles for non-routine or contingency purposes,
provided that such use is appropriately documented and the vehicles are excluded from
spare ratio calculations.
The City will maintain compliance with FTA spare ratio requirements1 by excluding
contingency fleet vehicles from spare ratio calculations and maintaining clear fleet
documentation that distinguishes between active fleet vehicles and inactive2 vehicles.
The City will also ensure consistency between this Plan and National Transit Database
(NTD) reporting, including proper classification of contingency vehicles.
Collectively, these authorities provide the regulatory basis for the limited retention and
controlled use of contingency vehicles to support service continuity during the City’s
transition to 100 percent zero-emission fleet operations. Additionally, this Plan supports
compliance with California’s Innovative Clean Transit Regulation, which requires full
transition to zero-emission bus fleets by 2040.
Policy Statement
The City actively maintains a contingency transit fleet in compliance with FTA
requirements and, as such, is in addition to the normal spare ratio as allowed by federal
regulations. The contingency fleet will be used only for emergency responses, employee
training, or to maintain service delivery levels throughout the City’s transition to a zero-
emission fleet. The contingency fleet will be maintained per original equipment
manufacturer (OEM) requirements to ensure mechanical reliability and readiness.
Contingency Fleet Composition
The contingency fleet will consist of diesel buses that have met or exceeded the Useful
Life Benchmark (ULB) requirements. In the case of large, heavy-duty transit buses, the
ULB is at least 12 years of service or an accumulation of at least 500,000 miles. Table 1
is the list of contingency fleet vehicles which is a reasonable and proportional contingency
capacity for an 18-vehicle fleet. Consistent with FTA expectations, the size of the
contingency fleet reflects the operational needs of a small system and the risks
associated with phased BEB deployment.
1 The FTA does not set a specific spare ratio for agencies with fewer than 50 vehicles operated in maximum
fixed-route service (i.e. City of San Luis Obispo); however, the FTA expects the number of spare buses to
be reasonable, considering the number of vehicles and variety of vehicle types and sizes.
2 Contingency vehicles are considered inactive and are not assigned to daily service.
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Page 4 of 5
Table 1 - List of Contingency Fleet Vehicles
Fleet ID Model
Year Make Description
Year
Removed
from Service
Mileage (at
time of
Removal)*
Useful
Life
0861 2008 Gillig Heavy-duty,
35-foot 2026 484,210
12 years
or 500,000
miles
1264 2012 Gillig Heavy-duty,
40-foot 2026 437,276
12 years
or 500,000
miles
1365 2013 Gillig Heavy-duty,
40-foot 2026 493,253
12 years
or 500,000
miles
*Mileage shown is as of June 30, 2026. Mileage will be updated prior to plan approval
Permitted Uses
Contingency vehicles may be deployed only under the following circumstances:
Zero-Emission Vehicle Constraints
Range limitations and/or operational constraints of BEBs
Reduced vehicle availability due to performance issues
Charging Infrastructure Limitations
Charging equipment failures or reduced capacity
Utility outages, including Public Safety Power Shutoffs
Maintenance Backfill
Extended maintenance or repair of BEBs
Delays in parts or warranty service
Emergency Operations
Natural disasters, including but not limited to wildfires or evacuations
Regional emergency response or mutual aid
Temporary Service Needs
Short-term increases in service demand
Activation and Documentation
Requests to activate contingency fleet vehicles will be made in writing and can be made
either by the City or by the City’s contracted service provider. Final approval for activation
shall be made by the Mobility Services Business Manager or their designee. Written
request is not required in the event of an emergency that requires immediate activation
or for maintenance training purposes. Each activation of a contingency vehicle will be
documented including date and duration of use, reason for activation, fleet identification
number, and service or route assignment.
Maintenance and Storage
Buses in the contingency fleet are subject to a 6,000-mile preventive maintenance (PM)
schedule. Periodic vehicle “start-ups” will occur between normal preventive maintenance
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Page 5 of 5
inspections (PMI) so the fleet remains ready for service activation at all times. Prior to
activating contingency vehicles back into revenue service, the City will perform a safety
inspection. If the vehicle has been inactive for more than sixty (60) days, the City will
perform a full PMI.
The City may revise its vehicle inspection and/or PMI intervals if the City determines the
above intervals are inadequate. The City will maintain and make available (upon request)
all records associated with the contingency fleet.
The contingency fleet will be stored at the City’s Transit Operation and Maintenance
Facility located at 29 Prado Road, San Luis Obispo, CA. This facility has security fencing
surrounding the property, security cameras at strategic locations, and perimeter lighting.
Monitoring and Plan Updates
Annually, staff will review the Contingency Fleet Plan and the activation of contingency
fleet vehicles to determine if this Plan needs to be updated . The following criteria will be
used during the annual review:
Frequency and duration of contingency fleet usage
Causes of deployment
Battery-electric bus reliability and availability
Changes in Federal and State laws
Funding availability for future battery electric bus and associated infrastructure
procurements
Through the annual review and update process, the City may begin a phased reduction
of the contingency fleet as the transition to zero-emission technologies progresses.
Vehicles will be considered for disposition when BEB fleet availability and infrastructure
reliability demonstrate sustained operational stability. If the City determines that the
number of vehicles retained in the contingency fleet can be reduced, then disposition of
contingency vehicles will occur in accordance with FTA asset disposition requirements
once no longer needed
Conclusion
This Fleet Contingency Plan provides a limited, controlled, and compliant framework for
retaining legacy diesel vehicles during the City’s transition to a zero-emission fleet. The
Plan ensures alignment with FTA requirements while maintaining the operational flexibility
necessary to deliver reliable transit service to the San Luis Obispo community.
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