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e. Financial Records. CARTS shall maintain complete and accurate financial records <br />regarding the use of the funds to support urbanized area planning and operations in accordance <br />with FTA Circular 5010.1 D, Grant Management Requirements, dated August 27, 2012, and, at <br />the request of the City Manager or his designee, shall make the records available for inspection <br />and review during normal business hours. <br />5. Routes and Schedules <br />The System will use the fixed routes described on Attachment 1 hereof, and the fixed <br />route schedule described on Attachment 2 hereof. The complementary ADA paratransit service <br />shall extend a minimum of three - quarters (3/4) of a mile from the fixed route service. CARTS <br />agrees to work with the City, the City of Martindale and Hays County, to implement a route <br />between San Marcos, Martindale and Redwood. Any recommendation for major service <br />reduction shall be submitted to the City by CARTS for consideration by the City Council. <br />CARTS shall comply with CARTS' policy for implementing major service reductions when <br />developing a recommendation to the City for major service reduction. <br />It is recognized that it is a goal of the City and CARTS to move as many demand <br />response customers as is practicable to fixed route service. CARTS agrees to work to reduce the <br />need for demand service in consultation with the City. <br />6. Fares <br />CARTS shall recommend fare increases to the City for consideration by the City Council. <br />CARTS shall comply with CARTS' policy for raising fares when developing a recommendation <br />to the City for fare increases. <br />7. Vehicles <br />CARTS will use vehicles appropriate to the operation of the System. Such vehicles shall <br />be substantially equivalent in design, appearance and specifications to those described in <br />Attachment 3 hereto. Such vehicles shall be maintained in good working order and in a clean <br />and sanitary condition. <br />CARTS may use other non - conforming buses or vehicles in operating the System only in <br />a temporary back -up capacity when the other vehicles are unavailable due to repair or <br />maintenance requirements. <br />8. Shelters and Transfer Center <br />CARTS currently operates a central transfer center and a network of bus stops and <br />shelters in connection with the operation of the System. CARTS may change, add and/or delete <br />bus stops or shelter locations as necessary to meet route changes and/or service requirements in <br />the operation of the System with the written approval of the City Manager or his or her designee, <br />which approval shall not be unreasonably withheld, conditioned or delayed. <br />3 <br />