R2010-138 AUTHORIZING APPLICATION FOR A PUBLIC TRANSPORTATION CAPITAL ASSISTANCE GRANT

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Department in all cases where Project Facilities are used in a manner substantially different from that described in the Grantee's final, approved application. The Grantee shall maintain in amount(s)and form satisfactory to the Department, such insurance or self-insurance as will be adequate to protect Project Facilities throughout the period of required use. The cost of such insurance shall not be an item of allowable cost under this Agreement. The Grantee shall also submit,from time to time, to the Department upon request, a certification that the Project Facilities are still being used in accordance with the terms of this Agreement and further certify that no part of the local contribution to the cost of the Project has been refunded or reduced. B. Maintenance-The Grantee agrees to maintain any Project Facilities at a high level of cleanliness, safety, and mechanical soundness and in accordance with any guidelines, directives, or regulations that the Department, FTA, manufacturer, or contractor may issue(the stricter standard to apply unless expressly excused by the Department), including 49 CFR Parts 18.31 - 18.34 and 19.30- 19.37. For vehicles, the manufacturer's suggested maintenance and inspection schedule will be considered the minimum maintenance standard that must be adhered to. For vehicles, the Grantee must establish and follow a written maintenance plan which includes pre-trip inspections, a preventive maintenance program, and documentation of repairs. The Department and/or FTA shall have the right to conduct periodic inspections for the purpose of confirming proper maintenance pursuant to this Section. The Department reserves the right to require the Grantee to restore, repair or replace Project Facilities or pay for damage as a result of abuse, neglect, or misuse of such Project Facilities. If, at any time during the useful life of the Project Facilities, any of the Project Facilities are not used for the purposes specified in this Agreement, whether by planned withdrawal, misuse or casualty loss, the Grantee shall immediately notify and receive approval from the Department prior to disposing of such Project Facilities. Any such disposition shall be in accordance with Department procedures and this Agreement. C. Transfer of Project Propertv 1. Grantee Request-The Grantee may transfer Project Facilities financed in whole or in part by the Government to an eligible recipient to be used for any public or specialized purpose with no further obligation to the Government, provided that the transfer is authorized by the Department, and FTA, if necessary, and conforms with the applicable requirements of 49 U.S.C. § 5334(h)(1)through 5334(h)(3). 2. Government Direction-The Grantee agrees that the Government may require the Grantee to transfer title to any Project Facilities financed with federal and/or state assistance made available by this Agreement to the State or others. The Grantee also agrees that the Government may direct the disposition of Project Facilities financed with federal and/or state assistance funds made available under this Agreement, or otherwise account for Project Facilities, as set forth by 49 CFR Parts 18.31 and 18.32. D. Withdrawn Propertv 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 Propertv- 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 State/Federal Capital Grant Page 9