AGENDA CAPTION:
Title
Consider approval of Resolution 2025-165R, approving a Public Transit System Interlocal Agreement with the Capital Area Rural Transportation System (“CARTS”) to provide public transit service and maintenance in the San Marcos urbanized area, with funding to CARTS in the amount of $2,382,246.00, of which $621,414.00 is to be paid by the city and the balance to be paid from federal and state sources; authorizing the City Manager, or her designee, to execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: September 2, 2025
Department: Public Works
Amount & Source of Funding
Funds Required: $2,382,246.00
Account Number: 23006345-52450
Funds Available: $2,382,246.00
Account Name: Local City Route
Fiscal Note:
Prior Council Action: Res. 2024-157R FY 2025 Public Transit System Interlocal Agreement approved August 20, 2024
City Council Strategic Initiative: [Please select from the dropdown menu below]
Mobility & Connectivity
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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☐ Environment & Resource Protection - Choose an item.
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☐ Neighborhoods & Housing - Choose an item.
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☒ Transportation - Multimodal transportaion network to improve accessibility and mobility, minimize congestion and reduce pollution
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Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
The City of San Marcos is designated by the Federal Transit Administration (FTA) as a small urban transit system. As such, the City receives federal funding to provide public transportation services including fare-free fixed-route bus service; paratransit service for individuals with disabilities; and interurban express service from San Marcos to Austin.
The City’s public transit system offers the community the following benefits:
- Improved Mobility and Accessibility - offers access to jobs, education, healthcare, and other essential services
- Low-cost Mode of Transportation – transit service is free in town and a small fare ($4 one way $6 daily pass) for service to Austin
- Enhanced Air Quality – replacing single occupancy trips with public transportation lowers greenhouse gas emissions and reduces pollution
- Traffic Congestion Relief – public transportation moves more people using fewer vehicles Economic Development – increasing access to businesses and job centers
The City contracts with Capital Area Rural Transportation System (CARTS) to provide operators, vehicles, and vehicle maintenance. The Interlocal Agreement between the City of San Marcos and CARTS ensures the continued provision of essential public transit services for San Marcos residents. Under this agreement, CARTS is responsible for operating and maintaining the City’s transit system, which includes fixed-route service, complementary paratransit service, and interurban express service connecting San Marcos to Austin.
While the cost per hour remained unchanged for Fiscal Year (FY) 2025, CARTS has proposed an increase to $90.00 per hour for FY 2026. This adjustment is necessary to address rising expenses related to vehicle maintenance, staffing, and overall operations. The total cost of the agreement for this fiscal year is $2,382,246.00. Of this amount, the City is responsible for a local match of $621,414.00. Funding for this agreement is supported by transit grants from the Federal Transit Administration (FTA) and the Texas Department of Transportation Public Transportation Division (TxDOT-PTN), with local funds fulfilling the federal match requirement.
The costs will be apportioned as follows:
$483,892.00 - FTA Coronavirus Aid, Relief, and Economic Security Act
$35,526.00 - FTA American Rescue Plan funding
$901,414.00 - FTA section 5307 Small Urbanized Area
$280,000.00 - TxDOT-PTN Urbanized Area
$621,414.00 - General fund
$60,000.00 - Interurban express fares (projected)
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval