10 VEHICLE MANAGEMENT AND MAINTENANCE

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1 This chapter summarizes requirements and recommendations for vehicle fleet management and maintenance, including: Vehicle and Equipment Inventory Records Maryland Public Service Commission Requirements Elements of an Effective Maintenance Program Vehicle Useful Life and Replacement Standards Property and Equipment Disposition LOTS grantees must adequately maintain all equipment and facilities purchased with Federal and State funds. Vehicles must be maintained in good working order. Each LOTS system must have a documented maintenance policy and plan with goals and objectives, submit a PM program to the MTA with the ATP, and implement the planned program. VEHICLE AND EQUIPMENT INVENTORY RECORDS FTA defines equipment as all tangible, nonexpendable, personal property that has a service life of more than one year and an acquisition cost that exceeds $5,000 per unit. LOTS agencies are required to maintain the following records on all MTA-funded vehicles and other equipment with a unit cost of $300 or more, as well as desk or lap top computers. a description of the equipment, a serial number or other identification number, who holds the title, the acquisition date, the cost of the equipment, percentage of Federal/State participation in the cost of the equipment, MTA grant or project number under which it was procured, FTA grant agreement number under which it was procured, the location, use, and condition of the equipment, useful life, and any disposition date, including the date of disposal and sale price of the equipment. The Maryland Locally Operated Transit System Manual March 2012 Page 10-1

2 The FTA requires that a physical inventory of equipment must be taken and the results reconciled with the property records at least once every two years. To ensure that this has been done, MTA requires that a Fixed Assets Inventory Form, Vehicle Inventory, and Vehicle Utilization Form, for equipment purchased in whole or in part with the MTA and FTA funds, be submitted to the MTA as part of the ATP. In addition, all FTA/MTA-funded equipment must be tagged or otherwise identified as government property, and a control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of project property. Any loss, damage, or theft must be investigated and documented by the LOTS. MARYLAND PUBLIC SERVICE COMMISSION (PSC) Historically, most LOTS in Maryland were subject to certain requirements of the Maryland PSC, including obtaining a motor carrier permit for all passenger motor vehicles used in the transportation of persons for hire. In May 2011, the State Legislature signed into law a bill to exempt those vehicles operated by a local public transportation system established under a law enacted by the local governing body of a county or municipal corporation as well as any motor vehicle used by a privately owned transportation company exclusively to provide transportation system services under a contract with the governing body of a county or municipal corporation or with a unit of state government. However privately-owned vehicles that are not used exclusively under contract to a government agency (such as vehicles used for dedicated human service transportation or charter service when not in transit operations) may still be subject to the PSC s motor carrier permit requirements. For more information about PSC requirements for passenger carriers, contact the PSC at (toll-free in Maryland) or (410) or visit the website at MARYLAND PREVENTIVE MAINTENANCE (PM) PROGRAM Under COMAR Title 11: Department of Transportation, Subtitle 22: Preventive Maintenance Program, certain commercial vehicles are subject to Maryland Preventive Maintenance (PM) Program. This program requires that commercial vehicles be systematically inspected, repaired, and maintained every 12 months or 25,000 miles, whichever occurs first. This requirement applies to: Vehicles with a seating capacity for 16 or more passengers including the driver (as well as other types of commercial vehicles), and Any bus designed and used to carry more than ten people owned by the State of Maryland or any political subdivision, excluding those subject to school bus regulations. The Maryland Locally Operated Transit System Manual March 2012 Page 10-2

3 The vehicle owner can perform the inspection, or may have someone else do the inspection. Meeting the requirements of the law is the responsibility of the vehicle owner (subrecipient). The PM program includes documentation requirements, including carrying on the vehicle at all times a Maryland DOT-approved inspection form documenting the most recent inspection or certification that the vehicle is maintained under a PM plan established by the Maryland DOT. The laws and regulations covering the PM Program, as well as the required forms, are in the Maryland PM Handbook, which can be purchased from the Maryland Division of State Documents ( ). The Division s printable order form is online at The PM Handbook is on page 3 of the order form. For more information about this requirement, contact SHA Motor Carrier Division ( or , MOTOR CARRIER VEHICLE REQUIREMENTS LOTS that are not units of local government are subject to requirements under either the Maryland Motor Carrier Program (MMCP) or the FMCSA. As noted in the previous chapter of the LOTS Manual (Chapter 9 - Operations Management), passenger carriers are required to obtain operating authority under either the Maryland DOT (if operating only within the state) or US DOT (if crossing state lines), register vehicles under either the MMCP (intrastate) or the FMCSA (interstate), and label each vehicle with the MD DOT or US DOT number. Vehicles owned by the State or local government are exempt from this requirement. All vehicles labeled with the MD DOT or US DOT number must meet MMCP or FMCSA PM requirements. Also, all such vehicles with a gross vehicle weight or gross vehicle weight rating of greater than 10,000 pounds must stop at open weigh stations. For more information on these requirements, refer to: MMCP: phone: (Baltimore area) or (toll-free within Maryland) FMCSA: phone: The Maryland Locally Operated Transit System Manual March 2012 Page 10-3

4 OUTSOURCING MAINTENANCE AND REPAIRS If you contract for maintenance, you must monitor the contractor to ensure compliance with FTA/MTA requirements and record all work and assess costs to ensure cost effectiveness. Outsourced maintenance must also comply with procurement and purchasing requirements as described in Chapter 4 of this manual (Procurement and Contracting), with the appropriate methodology followed to select the vendor(s) depending on the dollar amounts involved. If you are part of city or county government, and the city/county contracts for maintenance of all of its vehicles (fire department, police, etc.), the overall city/county contract must include required FTA clauses (described in Chapter 4 of this manual). This standard applies if the vehicle was purchased with grant funds and/or if you are using grant funds to pay for the maintenance service (either capital or operating funds). PROVIDING MAINTENANCE WITH IN-HOUSE PERSONNEL As described in Chapter 3 of the manual (Financial Management) under Force Account Plan, if your own employees will provide PM, and the PM is funded under a capital grant project of at least $100,000, force account requirements must be followed. See Chapter 3 under Force Account Plan for details. ELEMENTS OF AN EFFECTIVE MAINTENANCE PROGRAM Vehicle maintenance involves two major components: PM and the repair function, both of which should be monitored and evaluated. These components may be provided inhouse by the City or County Motor Pool, or outsourced. All LOTS must have a written maintenance plan. Preventive Maintenance All LOTS grantees must establish a PM program that provides thorough, periodic inspections at intervals that meet or exceed the manufacturer s minimum standards for each vehicle given the terrain and operating conditions experienced by your service. A mileage-based or time-based series of intervals for servicing that is strictly followed is the approach recommended by the MTA. Inspection and servicing of ADA-mandated accessibility equipment (including wheelchair lifts and ramps, securement equipment, and PA systems) must be part of your PM program. At a minimum, the LOTS are required to adhere to the frequencies and schedule identified in their plan. MTA will monitor and measure adherence to this schedule. Current MTA standards allow for a 10% deviation from the schedule (i.e., The Maryland Locally Operated Transit System Manual March 2012 Page 10-4

5 if the interval for an oil change is every 3,000 miles, the actual interval for which the oil change would be considered on time is 2,700 3,300 miles), and at least 80% of scheduled services need to be within the 10% window (i.e., 8 out of 10 oil changes need to be conducted at intervals of 2,700 3,300 miles). Grantees are subject to random maintenance record checks and should have files accessible and well maintained at all times. Please note that PM expenses are eligible for reimbursement as a capital expense under the Section 5307 and 5311 programs. LOTS receiving these grants may find this advantageous as capital funding under these programs requires a smaller local match than operating funding. (As noted previously, if the capital grant is $100,000 or more, a force account plan may be required.) Repairs When repairs are needed, a repair order (or work order) should be used to record and track all repair work and be included in your recordkeeping (described below under Management Information System ) for the vehicle. If you contract out repair work, it is critical that your contractor be responsive to your scheduling needs to ensure that you have enough vehicles to continue normal operations. Warranty work should be handled by an authorized representative of the manufacturer. Management Information System Each LOTS should establish a process for recording the performance of individual vehicles and a method for analyzing overall maintenance performance and costs. Such a process, usually called a Management Information System (MIS), tracks maintenance information, including PMs, repairs, costs by vehicle, fuel use and efficiency by vehicle, road calls, parts/labor cost breakouts, and per-mile cost. Driver Pre-trip and Post-trip Inspections Daily inspection of vehicles by drivers prior to putting vehicles into service is an important element of PM. Inspections at the end of the service day (post-trip) are also recommended. Drivers should be trained in how to conduct these inspections and be required to complete inspection forms appropriate for their vehicle. If the vehicle is equipped with a wheelchair lift, the pre-trip inspection must include cycling of the lift. Any deficiencies noted during the inspection should be reported, and as such the pre-trip inspection is the first step in the repair process. If a driver finds a significant deficiency during the inspection (such as a headlight or brakelight out, or an inoperative wheelchair lift), the deficiency must be repaired before the vehicle is placed into service. The Maryland Locally Operated Transit System Manual March 2012 Page 10-5

6 Maintenance of ADA Equipment Accessibility equipment on your vehicles must be maintained in good working order. This includes performing PM according to equipment manufacturer s specifications, cycling lifts as part of every pre-trip inspection, and performing repairs on a timely basis. Maintenance of accessibility features should be included in your written maintenance plan. Vehicles with nonfunctional accessibility equipment must be taken out of service and promptly repaired. As described in Chapter 12 of this manual, under USDOT ADA regulations, if there is no spare vehicle to replace a fixed-route vehicle with an inoperable lift, that vehicle may be kept in service with the inoperable lift for a maximum of three days in areas with populations above 50,000 persons, and five days in areas with populations of 50,000 or less. Vehicle Cleaning All MTA-funded vehicles should be washed and their interiors cleaned on a regular basis. Vehicles should be swept out and trash disposed of at the end of each service day or driver shift. Spare Vehicles The fleet of each LOTS should include enough spare (backup) vehicles to provide coverage for PM, repairs, breakdowns, and accidents. The number of spares needed will vary according to the size and make-up of your fleet, the age and condition of your vehicles, the capacity and quality of your maintenance program, and your ability to obtain unscheduled repairs when needed. Suggested guidelines for spare vehicles for smaller fleets are: If the maximum number of The suggested number of vehicles needed to provide spare vehicles your regular service is: system needs is: Your fleet s spare ratio is the ratio of spare vehicles to the total number of vehicles needed to provide maximum (peak) service. To calculate your current spare ratio, divide the number of spare vehicles in your fleet by the total number of vehicles operated in peak service. In other words, The Maryland Locally Operated Transit System Manual March 2012 Page 10-6

7 Spare (Total No. of revenue vehicles No. of vehicles needed for peak service) Ratio = No. of vehicles needed for peak service For example, if you have 23 total vehicles, and your peak operations require 20 vehicles, you have = 3 spare vehicles, and your spare ratio is 3 / 20 = 15%. The above guidelines represent spare ratios starting at 13%. Generally, the number of spare vehicles in fleets of ten or more vehicles should not exceed 20% of the total number of vehicles needed in maximum service. Vehicle Storage A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of vehicles and other equipment. Section 5307 recipients are required to spend 1% of these funds for transit security projects or certify that expenditures for such security systems are not necessary. Commercial Drivers Licensing Requirements for Mechanics If a vehicle is designed to carry 16 or more passengers including the driver, and therefore drivers are required to possess a valid CDL to drive it, mechanics that testdrive the vehicle are also required to possess valid CDLs. If a LOTS contracts for maintenance from a private garage, this provision should be included in the contract as the LOTS is responsible for ensuring that this requirement is met. Drug and Alcohol Program Requirements for Mechanics Mechanics and their supervisors are among the safety-sensitive positions subject to FTA Drug and Alcohol testing requirements (described in Chapter 8 of this manual). Maintenance Facilities LOTS must maintain maintenance facilities and equipment in addition to vehicles. MTA conducts periodic inspections of LOTS facilities, including maintenance facilities. The facilities inspection checklist is attached at the end of Chapter 7 of this manual. In addition to a vehicle maintenance plan, all LOTS are required to have a facilities maintenance plan for its facilities, including administrative offices, maintenance buildings/garages, parking lots, bus stops, transfer centers, etc. Requirements related to facilities maintenance are addressed in Chapter 7 of this manual. The Maryland Locally Operated Transit System Manual March 2012 Page 10-7

8 VEHICLE USEFUL LIFE AND REPLACEMENT STANDARDS To ensure that vehicles are adequately maintained and remain in service for their normal service lives, the MTA has established minimum useful life criteria for MTA funded vehicles. These standards apply to all vehicles purchased with State or FTA funds, as well as to vehicles that will be replaced with vehicles funded from these programs, regardless of the initial funding source. Service life for the following standards begins on the date the vehicle is placed in service and continues until it is removed from service. A successful maintenance program will help ensure that your agency benefits from full vehicle service lives. The following minimum useful life criteria apply to vehicles regardless of source of funds (State, Federal, or both): Buses Full size heavy duty transit buses over 35 feet in length: at least 12 years of service or an accumulation of at least 500,000 miles; Full size heavy duty transit buses under 35 feet in length: at least ten years of service or an accumulation of at least 350,000 miles; Medium size medium duty transit buses under 30 feet in length: at least eight years of service or an accumulation of at least 250,000 miles; Small size light duty buses under 30 feet in length transit buses: at least six years of service or an accumulation of at least 200,000 miles; School bus type vehicles: at least six years of service or an accumulation of at least 200,000 miles. Raised Roof Vans, Standard Vans, Mini-Vans, and Automobiles Specialized vans (accessible minivans and taxicabs) and sedans: at least four years of service or an accumulation of at least 150,000 miles; Fleet support vehicles (pick up trucks and utility vehicles): at least six years of service or an accumulation of at least 200,000 miles. Note that useful life standards will be applied based on the Altoona test report for each vehicle model. More information on Altoona test requirements is found in Chapter 4 of this manual. Under extraordinary circumstances, vehicles may need replacement prior to the end of their normal useful lives. In these situations, the applicant must justify the need for the early replacement, including a detailed description of the condition of the vehicle. The MTA is extremely reluctant to replace vehicles prior to the end of their normal service life and only under extenuating circumstances will this be approved. The Maryland Locally Operated Transit System Manual March 2012 Page 10-8

9 The MTA considers the value of vehicles prior to the end of a normal useful life to be based on straight line depreciation and that removal of an MTA funded vehicle before the end of its normal service life, for any reason, requires notification to the MTA. Upon notification, the MTA will determine whether it retains further interest in the vehicle and whether reimbursement of the Federal/State share of its remaining value must take place. For FTA/MTA-funded vehicles, after the normal service life is met, the MTA no longer retains a financial interest in the vehicle. PROPERTY AND EQUIPMENT DISPOSITION LOTS need a written policy on property and equipment disposition. Local government disposition requirements must also be followed. Property disposition policies and procedures are generally considered a standard business practice for local governments. Counties are likely to have a county-wide process in place, and LOTS that are part of county government are encouraged to use their local process. Nonprofit organizations and private companies may need to develop a written policy on property and equipment disposition to meet MTA and FTA requirements. The LOTS may dispose of vehicles and other equipment at the end of their useful life after notifying and receiving disposition instructions from the MTA. Request for approval to dispose of capital assets purchased with state or federal funds prior to reaching useful life criteria require MTA approval. Such requests are handled on a case-by case basis. The LOTS must follow its locally adopted process for disposal and must at a minimum, obtain at least minimum of two appraisals in writing by qualified individuals to determine the fair market value of the equipment to be sold and concurrence must be received from the MTA. Proceeds from the sale of the vehicle should be added to the LOTS capital budget and utilized for transit capital projects, and must not be considered local match in any future request for payment. MTA has established new accounting requirements regarding grant-funded vehicle sales proceeds, to ensure that there is a paper trail demonstrating that such revenues are not used as local match or for operating expenses. Required procedures are outlined in Chapter 3 of this manual. The first $100 of the proceeds can be retained to cover administrative expenses incurred. The MTA requests that upon completion of the sale, the LOTS provide the sales receipt information and indicate on what capital item(s) they intend to spend the auction proceeds. If the original purchase price was $1,000 or more, MTA may request that the LOTS remit back to MTA a proportional amount of the sale based upon the original grant ratio, deducting from this amount if necessary to ensure that the LOTS retains at least $100 from the proceeds to cover handling expenses. The Maryland Locally Operated Transit System Manual March 2012 Page 10-9

10 ADDITIONAL RESOURCES Maryland Motor Carrier Handbook, Chapter XIX Maryland Preventive Maintenance Handbook ( - may be purchased from the Division of State Documents COMAR Title 11 Department of Transportation, Subtitle 22 Motor Vehicle Administration-Preventive Maintenance Program, Chapter 03 - Preventive Maintenance Standards for Multipurpose Vehicles and Passenger Buses -- Introduction to Preventive Maintenance: An Investment that Pays Off. USDOT/National RTAP (2002) -- Weaver, Patricia, Transit Vehicle Inspections: Delivery, Pre-Trip and Annual Inspection Procedures, A Handbook for Rural Transit Providers. Prepared by Kansas University Transportation Center for Kansas DOT and USDOT/FTA (1997) -- CTAA s Vehicle Maintenance Management and Inspection (VMMI) certification program -- Washington State Vehicle Maintenance Planning Guide While this guide includes some state-specific requirements that may not be applicable in Maryland, it provides helpful guidance on developing a maintenance plan as well as best practices. The Maryland Locally Operated Transit System Manual March 2012 Page 10-10

11 SECTION 10: SUMMARY CHECKLIST Establish PM program and perform scheduled maintenance. Use work orders to track vehicle repairs. Maintain management information system to track vehicle maintenance and performance. Maintain vehicle inventory records for all MTA-funded vehicles that include serial/vin numbers, MTA grant/project numbers, and FTA grant agreement numbers, among other details. For nongovernmental organizations operating commercial vehicles entirely within Maryland, comply with the requirements of the Maryland Motor Carrier Program. Comply with Maryland PM program requirements for all vehicles requiring a CDL as well as publicly-owned buses with at least ten seats. For nongovernmental organizations operating commercial vehicles across state lines, comply with the requirements of the FMCSA. If outsourcing maintenance, comply with procurement and purchasing requirements as described in Chapter 4 of this manual and monitor the contractor to ensure compliance with FTA/MTA requirements. Cross-departmental city or county government contracts must include required FTA clauses. If maintenance is provided in-house under a capital grant project of at least $100,000, comply with force account requirements. Ensure that mechanics who drive vehicles designed to carry 16 or more passengers including the driver possess valid CDLs. Include mechanics and supervisors in the FTA Drug and Alcohol program. Ensure that drivers conduct daily pre-trip inspections of vehicles. Maintain an adequate number of spare vehicles to provide coverage for maintenance, repairs, and breakdowns/accidents. Clean vehicle interiors and exteriors on a regular basis. Ensure that vehicles and equipment are securely stored. Plan and apply for replacement of vehicles that have met MTA useful life criteria. Establish a written policy for disposition of property and equipment. Dispose of vehicles and equipment only after receiving MTA concurrence. Comply with local disposition requirements. The Maryland Locally Operated Transit System Manual March 2012 Page 10-11

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