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PUBLIC TRANSIT SYSTEM INTERLOCAL AGREEMENT <br />1. Parties <br />This Public Transit System Interlocal Agreement ( "Agreement ") is made and entered <br />into by and between the Capital Area Rural Transportation System, a Texas Department of <br />Transportation (TXDOT) authorized direct recipient of Urbanized Area Formula Program <br />(Federal Transit Administration Section 5307) funding and an urban transit district created under <br />Chapter 458 of the Texas Transportation Code ( "CARTS "), and the City of San Marcos, 'Texas, <br />the principal city of the San Marcos Urbanized Area (hereafter defined) and a Texas municipal <br />corporation (the "City "), to be effective as of October 1, 2015. This Agreement is authorized and <br />governed by the provisions of the Interlocal Cooperation Act, Texas Government Code, Chapter <br />791, specifically Section 791.011 regarding contracts to perform governmental functions and <br />services. As used in this Agreement, the term "San Marcos Urbanized Area" shall mean <br />the geographic area depicted on the map attached hereto as Attachment 2 and made a part hereof. <br />2. Term <br />The term of this Agreement will commence October 1, 2015 and will end September <br />30, 2016. CARTS' performance under this Agreement will be contingent upon its continued <br />receipt of state and federal funding to operate the System. <br />After September 30, 2016, this Agreement may continue in full force and effect on <br />a month -to -month basis, on the same terms and conditions as are recited herein, only upon <br />the express written mutual agreement of the parties. <br />3. Transit System Services <br />CARTS shall plan, operate and maintain a public transit system (the "System ") within <br />the San Marcos Urbanized Area in accordance with this Agreement and all federal <br />requirements applicable to CARTS as a direct recipient of FTA Section 5307 funds and an <br />FTA grantee or sub - grantee of Enhanced Mobility of Seniors and Individuals with Disabilities <br />Program (FTA Section 53 10) and Bus and Bus Facilities Program (FTA Section 5339) funds. <br />In addition to the requirements and responsibilities identified in FTA Circular 9030.11), <br />Urbanized Area Formula Program, dated August 27, 2012, CARTS shall be responsible for <br />establishing a program of projects including public participation, programming projects in the <br />Metropolitan Transportation Plan (MTP), Transportation Improvement Program (TIP) and <br />Unified Planning Work Program (UPWP) and creating a policy for raising fares or <br />implementing major service reduction including public participation. <br />The System services shall include fixed route bus service with complementary Americans <br />with Disabilities Act paratransit service. <br />In consultation with the City, CARTS shall effectively and efficiently plan public <br />transportation services for the residents of the San Marcos Urbanized Area. CARTS shall create <br />a Comprehensive Public Transit Plan, Finance and Implementation Strategy, a Title VI of <br />