HomeMy WebLinkAbout09-08-2026 2026 Transit Asset Management PlanCity 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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
9/8/2026 | 12:09 PM PDT
Page 2 of 12
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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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,
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
City of San Luis Obispo, Title, Subtitle
Page 4 of 12
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%
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
City of San Luis Obispo, Title, Subtitle
Page 5 of 12
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.
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
City of San Luis Obispo, Title, Subtitle
Page 6 of 12
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.
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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.
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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:
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996
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
Docusign Envelope ID: 4C7CDB6F-006E-81E9-83E6-F4C32EF84996