Res 2021-180/approving a Public Transit System ILA with the Capital Area Rural Transportation System (“CARTS”) for CARTS to provide transit services on behalf of the City in the San Marcos urbanized area, with a funding amount by the City

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responsibilities during the transition from CARTS to the City, as the authorized direct recipient for the San Marcos Urbanized Area. The System services shall include fixed route bus service with complementary Americans with Disabilities Act (ADA) paratransit service as specified in Attachment 3. In consultation with CARTS, the City shall adhere to the existing Comprehensive Public Transit Plan, the Finance and Implementation Strategy, the Title VI of the Civil Rights Act of 1964 Program, the Disadvantaged Business Enterprise (DBE) Program and the Complementary ADA Paratransit Plan for FY 2022 in accordance with all federal requirements applicable to the City as a direct recipient of FTA Section 5307 funds and an FTA grantee or sub-grantee of FTA Section 5310 and FTA Section 5339 funds. In addition, CARTS will participate in an advisory capacity reviewing plans for development projects, which may increase transit use, and meetings with Texas State University to coordinate ongoing operations between the System and the Bobcat Shuttle. CARTS will assist the City with federal reporting requirements by supplying operating and maintenance data. CARTS will continue to foster a culture of safety in accordance with the CARTS policies contained within the Public Transportation Agency Safety Plan as adopted on July 20, 2020. 4. Funding for Services a. Payments by the City. For services provided under this Interlocal Agreement, CARTS shall be paid the service cost per hour stipulated in Attachment 4, attached and incorporated herein for all purposes. For any contract extensions, CARTS and the City may agree to change the service cost per hour to be paid to CARTS for its services provided hereunder. Any such changes shall be memorialized in writing. b. Annual Budget. CARTS, in consultation with designated City staff, will participate in the City's annual budget process relating to the System services contemplated under this Agreement. CARTS will provide City staff with a Service Cost Per Hour, excluding capital, proposal on or before June 15, 2022 for FY 2023 fiscal planning purposes. c. Prompt Payment. In accordance with Chapter 2251, Texas Government Code except as provided in Section 2251.002, payment to CARTS will be made within thirty (30) days of the date the performance of the services under this Agreement are completed or the date City receives a correct invoice for the goods or services, whichever is later. CARTS may charge interest on an overdue payment at the "rate in effect" on September 1 of the fiscal year in which the payment becomes overdue, in accordance with Texas Government Code, Section 2251.025(b). d. Financial Records. The City shall maintain complete and accurate financial records regarding the use of the funds to support urbanized area planning and operations in accordance with FTA Circular 5010.1E, Grant Management Requirements, dated July 16, 2018. CARTS shall similarly maintain such complete and accurate records as may be necessary for the City to comply with its federal funding and audit requirements. City of San Marcos Public Transit System October 1, 2020 CARTS Interlocal Agreement P. 2