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e. Financial Records. CARTS shall maintain complete and accurate financial records <br />regarding the use of the funds to support urbanized area planning and operations in accordance <br />with FTA Circular 5010.1D, Grant Management Requirements, dated August 27, 2012, and, at <br />the request of the City Manager or his designee, shall make the records available for inspection <br />and review during normal business hours. <br />5. Routes and Schedules <br />The System will use the fixed routes and the fixed route schedules described on <br />Attachment 1, hereof. The complementary ADA paratransit service shall extend a minimum of <br />three - quarters (3/4) of a mile from the fixed route service. CARTS agrees to work with the City, <br />the City of Martindale and Hays County, to maintain a route between San Marcos, Martindale <br />and Redwood. Any recommendation for major service reduction shall be submitted to the City <br />by CARTS for consideration by the City Council. CARTS shall comply with CARTS' policy for <br />implementing major service reduction when developing a recommendation to the City for major <br />service reduction. <br />It is recognized that it is the goal of the City and CARTS to move as many demand <br />response customers as is practicable to fixed route service. CARTS agrees to work to reduce the <br />need for demand service in consultation with the City. <br />6. Fares <br />CARTS shall recommend fare increases to the City for consideration by the City Council. <br />CARTS shall comply with CARTS' policy for raising fares when developing a recommendation <br />to the City for fare increases. <br />7. Vehicles <br />CARTS will use vehicles appropriate to the operation of the System. Such vehicles shall <br />be maintained in good working order and in a clean and sanitary condition. <br />CARTS may use other non- conforming buses or vehicles in operating the System only in <br />a temporary back -up capacity when the other vehicles are unavailable due to repair or <br />maintenance requirements. <br />8. Shelters. Shmage and Transfer Center <br />CARTS currently operates a central transfer center and a network of bus stops and <br />shelters in connection with the operation of the System. CARTS may change, add and /or delete <br />bus stops or shelter locations as necessary to meet route changes and/or service requirements in <br />the operation of the System with the written approval of the City Manager or his or her designee, <br />which approval shall not be unreasonably withheld, conditioned or delayed. <br />9 <br />