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

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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 Government 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Unless otherwise approved in writing by the Department, the fair market value of any of the Project Facilities to be withdrawn will be the value at the time immediately before the occurrence that prompted the withdrawal of the Project Facilities from mass transportation use.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. Exceqtional 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 Property-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 DamaQed Proqertv- 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. G. Oblictations After Proiect Close-Out-A Grantee that is a governmental entity agrees that project close-out will not alter its property management obligations set forth in this Agreement and as required by 49 CFR Parts 18.31 and 18.32. State/Federal Capital Grant Page 1�