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reduction that is consistent with Federal requirements shall be open for consideration by <br />the City Council. CARTS shall comply with the City's policy for implementing any major service <br />reduction and will assist City staff in identifying potential sei vice modifications. <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. <br />6. Fares <br />The City shall recommend fare policy/increases for consideration by the City Council. In <br />providing services under this Agreement CARTS shall comply with the City's established fare <br />policy. <br />7. Vehicles <br />CARTS will use vehicles identified, procured and assigned for the San Marcos Urbanized <br />program. Such vehicles shall be maintained in good working order and in a clean and sanitary <br />condition. <br />CARTS may use other non -conforming buses or vehicles in providing System services <br />only in a temporary back-up capacity when the other vehicles are unavailable due to repair or <br />maintenance requirements. <br />8. Shelters, Signage and Transfer Center <br />CARTS shall continue to operate its Multi -Modal Bus Terminal within the City that serves <br />as a centralized hub for the Urban Fixed Route Service, as well as, CARTS Regional Services. <br />The City has a network of shelters and bus stops for the System. The City may change, add and/or <br />delete bus stops or shelter locations as necessary to meet route changes and/or service <br />requirements in the operation of the System. The City will provide prompt notification to CARTS <br />of any such changes. <br />The City will provide equipment, labor and materials necessary for the installation and <br />maintenance of transit system signage, shelters, trash cans and benches. The City will be responsible <br />for providing signs, poles, shelters, trash cans or benches. <br />9. System and Program Administration. <br />The City is solely responsible for the administration of the System and the Urbanized <br />Area Formula Program for San Marcos Urbanized Area including compliance with FTA <br />Circulars 9030.1E and 5010.1E including Certifications and Assurances, Master Agreement, <br />Transit Award Management System (TrAMS), Electronic Clearing House Operation (ECHO) <br />and National Transit Database (NTD). CARTS will assist the City in collation and usage of <br />operational data. <br />