Overview of the Merrimack Valley Regional Transit Authority

Regional Transit Authorities

Chapter 161B of the Massachusetts General Laws established regional transit authorities (RTAs) to provide a public transportation system under the control of municipalities. Each RTA supports a number of communities (member communities) and is governed by an advisory board composed of the chief elected officials from those communities. Chapter 161B of the General Laws gives the Commonwealth certain oversight responsibilities, and it defines the process by which RTAs may be formed or expanded within the Commonwealth, as well as the duties, powers, and limitations of these RTAs. This law also outlines the membership of RTA advisory boards and their authority to appoint administrators, approve budgets, and approve significant changes in service fares. Currently, there is a network of 15 RTAs (12 urban and 3 rural) operating in the Commonwealth, in addition to the transit services provided by the Massachusetts Bay Transportation Authority (MBTA). These RTAs serve a total of 262 cities, suburban municipalities, and rural communities outside the greater Boston area and provide transportation via buses and minibuses operated by private transit service companies. RTAs, which are locally controlled, manage their own operations but must hire private operating companies to provide their services in accordance with Chapter 161B of the General Laws.

Section 53 of Chapter 6C of the General Laws makes the Rail and Transit Division (RTD) of the Massachusetts Department of Transportation “responsible for overseeing, coordinating and planning all transit and rail matters throughout the commonwealth,” including intercity buses, the MBTA, and RTAs. RTD carries out its responsibility of providing and managing financial assistance for RTAs through its Community Transit Program Unit, which oversees the federal, state, and local programs that financially support RTAs. State appropriations for the 15 RTAs increased from approximately $70 million in fiscal year 2014 to approximately $80 million in fiscal years 2016 through 2018.

The Merrimack Valley Regional Transit Authority

The Merrimack Valley Regional Transit Authority (MVRTA) was established on October 11, 1974 and reports to RTD under Chapter 25 of the Acts of 2009, “An Act Modernizing the Transportation Systems of the Commonwealth.” According to its website, “MVRTA’s goal is to provide our passengers with affordable, safe, reliable and convenient transportation services by having well-trained, qualified, and professional staff.” An administrator is responsible for day-to-day administration of the agency, which had three full-time staff members during our audit period. MVRTA’s operations are overseen by an advisory board made up of one member from each of the 16 communities¹ the agency serves. The advisory board is responsible for hiring an administrator, setting fares, establishing service levels, and authorizing real-estate purchases. MVRTA contracted with First Transit Incorporated to provide fixed-route and demand-response² transportation services, including maintenance and administrative functions, for fiscal years 2016 and 2017.

During our audit period, MVRTA’s capital fund expenditures were $5,539,992 for fiscal year 2016 and $5,217,550 for fiscal year 2017. The table below shows the types of capital fund expenditures made by MVRTA.

MVRTA Capital Fund Expenditures

Type of Expenditure	Fiscal Year 2016	Fiscal Year 2017
Building Improvements	$96,418	$902,093
Transit Equipment	4,523,073	3,944,680
Service Vehicles	869,700	101,067
Furniture and Fixtures	50,801	221,050
Electronic Equipment	0	48,660
Total	$5,539,992	$5,217,550

In fiscal years 2016 and 2017, MVRTA received revenue from a variety of sources, including fares from riders and assistance from various federal, state, and local sources. The largest source of funding is state contract assistance,³ followed by Federal Transit Administration (FTA) grants, local assessment⁴ payments, and fare and terminal revenue. The table below shows the types of funding MVRTA received during the audit period.

MVRTA Operating Funding Sources

Type of Funding	Fiscal Year 2016	Fiscal Year 2017
State Contract Assistance	$6,836,168	$6,836,168
Federal Grants	3,965,896	3,827,283
Local Assessments	3,309,830	3,384,908
Fare and Terminal Revenue	2,924,506	2,697,517
Other Funds*	44,960	47,695
Total	$17,081,360	$16,793,571

*  Other funds include parking fees, advertising revenue, and reimbursements.

 

During our audit period, MVRTA’s operating costs were as follows.

MVRTA Operating Expenses

Type of Expense	Fiscal Year 2016	Fiscal Year 2017
Transit Service	$11,432,150	$11,513,295
Maintenance	3,872,948	3,470,568
Terminal Expenses	1,123,011	1,189,007
Pensions	764,769	103,313
General and Administrative Expenses	531,861	416,322
Total	$17,724,739	$16,692,505

Vehicle Fleet and Service Route Area

MVRTA operates local fixed-route and demand-response services within the 284-square-mile Merrimack Valley area, serving a population of more than 352,000. It operates a network of 24 local transit routes and 2 commuter routes. The local fixed-route service operates seven days a week; weekday service runs from as early as 5:00 a.m. to 7:00 p.m., Saturday service runs from 7:00 a.m. to 6:00 p.m., and Sunday service runs from 9:00 a.m. to 5:00 p.m.

Buses and vans provide transit services to the vast majority of MVRTA passengers, and its vanpool provides paratransit services. The table below shows the number of revenue-producing and non-revenue-producing vehicles⁵ used at MVRTA during fiscal years 2016 and 2017.

Number of MVRTA Vehicles

Vehicle Type	Fiscal Year 2016	Fiscal Year 2017
Revenue-Producing	100	102
Non-Revenue-Producing	12	14
Total	112	116

Vehicle Maintenance

MVRTA operates its administrative office and a maintenance facility in an approximately 18,800-square-foot building in Haverhill. At the end of our audit period, MVRTA had a total of 116 vehicles in its fleet. The table below shows the types and average ages of the vehicles in MVRTA’s fleet during the audit period.

MVRTA Vehicle Fleet Average Age

Make and Model	Vehicle Type	Vehicle Count	Average Age (Years)
Gillig Low Floor	Bus	44	4.7
Gillig Phantom	Bus	19	13.5
Ford E350	Van	29	4.3
Ford Taurus	Sedan	1	4.0
Ford Escape	SUV	1	5.0
MCI D4500	Bus	6	3.2
MCI 102D3	Bus	4	17.0
Chevrolet Tahoe	SUV	8	4.0
Chevrolet Silverado	Truck	2	1.0
GMC Sierra	Truck	2	13.5
Total		116

The table below shows MVRTA’s maintenance expenses for the audit period.

MVRTA Maintenance Expenses

Expenses	Fiscal Year 2016	Fiscal Year 2017
Salaries and Benefits	$1,108,458	$1,093,301
Parts and Equipment	575,766	463,226
Fuel	983,511	758,628
Other Vehicle Maintenance	923,186	877,945
Other Maintenance	282,027	277,468
Total	$3,872,948	$3,470,568

 Below are the actual mileage and maintenance costs per vehicle for fiscal year 2017.

MVRTA Vehicle Mileage and Maintenance Expenses

Make and Model	Vehicle Count	Total Mileage	Labor Cost	Parts Cost	Total Maintenance Cost	Average Maintenance Cost per Vehicle
Gillig Low Floor	44	1,530,381	$148,341	$371,638	$519,979	$11,818
Gillig Phantom	19	265,535	32,506	38,453	70,959	$3,735
Ford E350	29	639,949	24,850	18,428	43,277*	$1,492
Ford Taurus	1	3,087	104	5	109	$109
Ford Escape	1	1,369	0	0	0	$0
MCI D4500	6	179,860	15,899	16,975	32,874	$5,479
MCI 102D3	4	37,278	4,308	5,378	9,686	$2,421*
Chevrolet Tahoe	8	103,980	1,857	892	2,749	$344
Chevrolet Silverado	2	10,965	78	8	86	$43
GMC Sierra	2	9,037	510	1,285	$1,796*	$898
Total	116	2,781,441	$228,453	$453,062	$681,516*

*    Discrepancies in totals are due to rounding.

 

FTA requires all RTAs to report to it any information related to their transit vehicle inventories or maintenance and repairs that they conduct. This information is included in FTA’s National Transit Database. At the time of our audit, MVRTA was using Ron Turley Associates, Inc. Fleet Management Software to document all of its vehicle asset and expense information and report it to FTA.

MVRTA Community Programs

MVRTA informs the community about its services through local businesses, neighborhood events, and summer festivals. It also coordinates transportation for the councils on aging for several of its member communities. Finally, in an effort to help those with disabilities, MVRTA offers a travel training program on riding its buses.

1.    The communities are Amesbury, Andover, Boxford, Georgetown, Groveland, Haverhill, Lawrence, Merrimac, Methuen, Newbury, Newburyport, North Andover, North Reading, Rowley, Salisbury, and West Newbury.

2.    Demand-response transportation services are those that run on a flexible schedule and on flexible routes based on the needs of RTA passengers with special needs.

3.    Under Section 23 of Chapter 161B of the General Laws, the Commonwealth, through the Executive Office for Administration and Finance, can contract with an RTA to fund 50% of the net cost of the service the RTA provides. Known as state contract assistance, this funding is provided through the Commonwealth Transportation Fund and the Massachusetts Transportation Trust Fund.

4.    Under Section 9 of Chapter 161B of the General Laws, annual local assessment payments are adjusted based on the “loss” (operating cost minus revenue) for each specific transit route and the activity and the share of that loss attributable to each town or city.

5.    Non-revenue-producing vehicles are light-duty vehicles for temporary use by MVRTA employees for agency-related business.

Date published:	July 31, 2018