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PUBLIC TRANSIT SYSTEM INTERLOCAL AGREEMENT <br />1. Parties <br />This Public Transit System Interlocal Agreement ("Agreement") is made and entered into <br />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, 2018. 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 the <br />geographic area depicted on the map attached hereto as Attachment 2 and made a part hereof On <br />August 22, 2018 the City Council of San Marcos declared through resolution the intent to become <br />the Direct Recipient of Urbanized Area Formula Program (Federal Transit Administration Section <br />5307) fiends for the San Marcos urbanized area. <br />2, Term <br />The term of this Agreement will commence October 1, 2018 and will end September 30, <br />2019. CARTS' performance under this Agreement will be contingent upon its continued receipt <br />of state and federal funding to operate the System. <br />After September 30, 2019, Transit Operations under this Agreement may <br />continue in full force and effect on a month-to-month basis on the same terms and conditions <br />as are recited herein, except that responsibility for compliance with all administrative <br />and regulatory requirements that are applicable to the Direct <br />Recipient of FTA 5307 funds will be assumed by the City as the Direct <br />Recipient, <br />3. Transit System Services <br />CARTS shall plan, operate and maintain a public transit system (the "System") within the <br />San Marcos Urbanized Area in accordance with this Agreement and all federal requirements <br />applicable to CARTS as a direct recipient of FTA Section 5307 fiends and an FTA grantee or <br />subgrantee of Enhanced Mobility of Seniors and Individuals with Disabilities Program (FTA <br />Section 53 10) and Bus and Bus Facilities Program (FTA Section 533 9) funds, In addition to the <br />requirements and responsibilities identified in FTA Circular 9030.1E, Urbanized Area Formula <br />Program, dated J a n u a r y 16, 2014, CARTS shall be responsible for establishing a program <br />of projects including public participation, programming projects in the Metropolitan <br />Transportation Plan (MTP), Transportation Improvement Program (TIP) and Unified Planning <br />Work Program (UPWP) and creating a policy for raising fares or implementing major service <br />reduction including public participation. CARTS and City staff will coordinate the transfer of roles <br />and responsibilities during the transition from CARTS to the City, as the authorized direct recipient <br />for the San Marcos urbanized area, to include official concurrence support to the Texas Department <br />