R2011-08 AUTHORIZING EXECUTION OF AN AMENDED CAPITAL ASSISTANCE GRANT AGREEMENT

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� CAP-10-962-ARRA, Contract No. 4021 F. Illinois Law- Nofinrithstanding federal preemption, this Agreement shall be construed in accordance with the laws of the State of Illinois. G. Grantee's Responsibility for Compliance-Irrespective of the participation of other parties or third party contractors in connection with the Project, the Grantee shall continue to have primary responsibility to the Department and FTA for compliance with all applicable federal and state requirements, statutes, regulations, executive orders, and/or the Master Agreements befinreen the Department and FTA(a copy of which is incorporated herein by reference)or the Grant Agreement for this Project. ITEM 8-CONTINUANCE OF SERVICE The Grantee agrees to use its best efforts to continue to provide, either directly, through a service agreement, or by contract, as the case may be, the service(s)for which these Project Facilities are being acquired or constructed, as such service(s) is described in the Grantee's final, approved application. No , reduction or termination of such service shall be made without compliance with all applicable statutory and regulatory provisions. At least thirty(30) days prior to(a)any reduction or termination of such service or(b)the filing of a request for such reduction or termination with the appropriate regulatory agency, whichever comes first, the Grantee shall give written notice of the proposed action (or shall require the operator of such service to give such notice)to the Department and all units of local government within the Grantee's service area. ITEM 9—REAL PROPERTY, EQUIPMENT AND SUPPLIES The Grantee acknowledges that the federal government retains an interest in the Project Facilities until, and to the extent, that the federal government relinquishes its interest in such Project Facilities. Unless otherwise approved by the Department, the following conditions apply to Project Facilities financed under this Agreement: A. Use of Proiect Facilities-The Grantee agrees that the Project Facilities will be used for the provision of mass transportation service within the Grantee's service area substantially in the manner described in the Grantee's final, approved application. Project Facilities may be used for incidental charter or sight-seeing services when not needed for mass transportation service operations. Such Project Facilities shall be used for(a) a period of finrenty(20) years from the completion of the Project, or(b)the period of the useful life of such Project Facilities as determined in accordance with generally accepted accounting principles and Department guidelines, ' whichever period of time is less(provided, however, real property acquired with federal funds shall �, be used for the originally authorized purposes of this Agreement for such longer period as may be �, required pursuant to 49 CFR Part 18.31 or other federal law). If, during such period, such Project Facilities are not used for the Project as required by the terms of this Agreement, or are sold or otherwise disposed of, or are withdrawn from mass transportation service at the initiative of the Grantee, the Grantee shall immediately notify the Department, and shall at the Department's discretion, and as provided in Department guidelines, remit to the State a proportional amount of the fair market value, if any, of such Project Facilities. If the Project Facilities include commuter parking, the Parties agree that users of the commuter parking facilities funded by this Grant may be charged a fee for the use of such facilities, but the amount of such fee shall be so established to meet reasonable maintenance and operating expenses, and to establish a sinking fund to cover major rehabilitation, or for other mass transportation related purposes as approved by the Department in writing. The Project Facilities shall be equally available for use by all commuters regardless of the place of residence, and there State/Federa!Capital Grant Page 9