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PUBLIC TRANSIT SYSTEM INTERLOCAL AGREEMENT <br />1. Parties and Purpose <br />a. Parties. This Public Transit System Interlocal Agreement ("Agreement") is made and <br />entered into by and between the Capital Area Rural Transportation System, a public <br />transportation organization organized under Chapter 458 of the Texas Transportation Code as a <br />political subdivision of the State, ("CARTS"), and the City of San Marcos, Texas, the principal <br />city of the San Marcos Urbanized Area (hereafter defined) and a Texas municipal corporation <br />(the "City"), a Texas Department of Transportation (TxDOT) authorized direct recipient of <br />Urbanized Area Formula Program (Federal Transit Administration Section 5307) funding and <br />an urban transit district created under Chapter 458 of the Texas Transportation Code to be <br />effective as of October 1, 2019. <br />b. Purpose. This Agreement is authorized and governed by the provisions of the <br />Interlocal Cooperation Act, Texas Government Code, Chapter 791, specifically Section 791.011 <br />regarding contracts to perform governmental functions and services. As used in this <br />Agreement, the term "San Marcos Urbanized Area" shall mean the geographic area depicted <br />on the map attached hereto as Attachment 2 and made a part hereof. On August 22, 2018 the City <br />Council of San Marcos declared through resolution the intent to become the Direct Recipient of <br />Urbanized Area Formula Program (Federal Transit Administration Section 5307) funds for the San <br />Marcos urbanized area with the effective date of October 1, 2019. CARTS has demonstrated <br />experience operating and managing public transit systems. By this Agreement, the City, as a Direct <br />Recipient, seeks to engage the services of CARTS to assist in operating and maintaining the transit <br />services for the San Marcos Urbanized Area. <br />2. Term <br />The term of this Agreement will commence October 1, 2019 and will end September 30, <br />2020. CARTS' performance under this Agreement will be contingent upon the continued receipt <br />of state and federal funding to operate the System. Contract extensions may be undertaken in one <br />year increments upon written agreement by both parties. <br />3. Transit System Services <br />CARTS shall operate and maintain a public transit system (the "System") within the San <br />Marcos Urbanized Area in accordance with this Agreement and all federal requirements <br />applicable to the City as a direct recipient of FTA Section 5307 funds and an FTA grantee or <br />sub -grantee of Enhanced Mobility of Seniors and Individuals with Disabilities Program (FTA <br />Section 5310) and Bus and Bus Facilities Program (FTA Section 5339) funds. In addition to the <br />requirements and responsibilities identified in FTA Circular 9030.1E, Urbanized Area Formula <br />Program, dated January 16, 2014, the City shall be responsible for establishing a program of <br />projects including public participation, programming projects in the Metropolitan Transportation <br />Plan (MTP), Transportation Improvement Program (TIP) and Unified Planning Work Program <br />(UPWP) and creating a policy for raising fares or implementing major service reduction <br />including public participation. CARTS and City staff will coordinate the transfer of roles and <br />