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

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CAP-10-962-ARRA, Contract No. 4021 If any Project Facilities are not used in mass transportation service for the duration of their useful life as determined by the Department, whether by planned withdrawal, misuse or casualty loss, the Grantee agrees to notify the Department thereof within thirty(30) calendar days prior to the date of disposition. 1. Federal and/or State Interest in Property- Unless otherwise approved by the Government, the Grantee agrees to remit to the Department the Government interest in the fair market value of any of the Project Facilities whose unit value exceeds$5,000, or the Project Facility, at the option of the Department. The portion of that interest shall be determined on the basis of the ratio of the assistance provided by the Government for the particular Project Facility to the actual cost of the Project. In the event the Project Facility is prematurely destroyed by fire, casualty, or natural disaster, the Grantee may, alternatively, fulfill its responsibilities with respect to the damaged facilities by investing an amount equal to the value of the remaining Govemment interest in like-kind facilities that are eligible for assistance within the scope of the Project. 2. Fair Market Value-The following requirements apply to the calculation of fair market value: a. Project Facilities- Unless otherwise approved in writing by the Department, the fair market value of any of the Project Facilities to be withdrawn will be the value at the time immediately before the occurrence that prompted the withdrawal of the Project Facilities from mass transportation use. The fair market value shall be calculated by one of the following: (1) appraised value consistent with state standards and federal standards, 49 CFR Part 24; (2)on a straight line depreciation of the Project Facilities, based on a useful life approved by the Department irrespective of the reason for withdrawal of Project Facilities from mass transportation use; or(3)the actual proceeds from the public sale of such property, whichever method is approved by the Department with an objective to obtain the highest fair market value. Any appraiser employed for such purposes shall have experience in appraising similar project equipment and facilities in accordance with state and federal standards. The fair market value of any of the Project Facilities lost or damaged by casualty or fire will be calculated on the basis of the condition of such property immediately before the casualty or fire, irrespective of the extent of insurance coverage. b. Exceptional Circumstances-The Government, however, reserves the right to require another method of valuation to be used if determined to be in the best interest of the Government. In unusual circumstances, the Grantee may request that the Government approve the use of another reasonable method of determining fair market value, including but not limited to accelerated depreciation, comparable sales, or estimated market values. In determining whether to approve an alternate method, the Government may consider any action taken, omission made, or unfortunate occurrence suffered by the Grantee with respect to the preservation or conservation of the value of the particular item of property that, for any reason, has been withdrawn from service. E. Disposition of Propertv-After the end of its useful life, if any fixed facility(in whole or in part) or revenue service vehicle funded through this Agreement is planned to be disposed of, the Grantee shall notify the Department thereof not later than thirty (30) days prior to planned disposition. F. Misused or Damaged Propertv-If damage to any of the Project Facilities results from abuse, neglect, or misuse that has taken place with the Grantee's knowledge and consent, the Grantee agrees that the Government may require the Grantee to restore the Project Facilities to their original condition at the Grantee's sole expense, or refund the fair market value of the Government interest in such damaged Project Facilities. State/Federal Capital Grant Page 11