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PUBLIC TRANSIT SYSTEM INTERLOCAL AGREEMENT <br />1. Parties & Purpose <br />a. Parties. This Public Transit System Interlocal Agreement ("Agreement") is made <br />and 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 <br />and an urban transit district created under Chapter 458 of the Texas Transportation Code <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 <br />791.011 regarding contracts to perform governmental functions and services. As used in <br />this Agreement, the term "San Marcos Urbanized Area" shall mean the geographic area <br />depicted on the map attached hereto as Attachment 2 and made a part hereof. On August 22, <br />2018 the City Council of San Marcos declared through resolution the intent to become the Direct <br />Recipient of Urbanized Area Formula Program (Federal Transit Administration Section 5307) <br />funds for the San Marcos urbanized area with the effective date of October 1, 2019. CARTS has <br />demonstrated experience operating and managing public transit systems. By this Agreement, the <br />City, as a Direct Recipient, seeks to engage the services of CARTS to assist in operating and <br />maintaining the transit services for the San Marcos Urbanized Area. <br />2. Term <br />The term of this Agreement will commence October 1, 2021 and will end September <br />30, 2022. CARTS' performance under this Agreement will be contingent upon the continued <br />receipt of state and federal funding to operate the System. Contract extensions may be <br />undertaken in one-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 <br />or sub -grantee of Enhanced Mobility of Seniors and Individuals with Disabilities Program <br />(FTA Section 53 10) and Bus and Bus Facilities Program (FTA Section 5339) funds. In addition <br />to the requirements and responsibilities identified in FTA Circular 9030.1E, Urbanized Area <br />Formula Program, dated January 16, 2014, the City shall be responsible for establishing a <br />program 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 establishing a policy or implementing major service reduction <br />including public participation. CARTS and City staff will coordinate the transfer of roles and <br />