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This Agreement is made by and between the State of Illinois (hereinafter the <br /> "State"), acting by and through the Illinois Department of Transportation, Division of <br /> Public and Intermodal Transportation (hereinafter the "Department"), and the Citv of <br /> Decatur(hereinafter the "Grantee," which term shall include its successors and <br /> assigns). <br /> WHEREAS, the Grantee proposes to provide public transportation services in <br /> a downstate area of Illinois; <br /> WHEREAS, the Grantee has made application to the Department under Article <br /> II of the Illinois Downstate Public Transportation Act, (30 ILCS 740/2-1 et se�c., <br /> hereinafter the "Act"); the Department's implementing regulations thereunder(92 <br /> Illinois Administrative Code Part 653, hereinafter the "Rules") and the forms <br /> included in the Department's current "Downstate Public Transportation Operating <br /> Assistance Program" (hereinafter the "Standard Forms"); and <br /> WHEREAS, the Department has approved the Grantee's application and has <br /> certified to the Illinois Department of Revenue the Grantee's boundaries and its <br /> eligibility to participate under the Act; <br /> NOW THEREFORE, in consideration of the mutual covenants set forth herein, <br /> this Agreement is made to provide state operating assistance funds to Grantee and <br /> to set forth the terms and conditions of such assistance. <br /> ITEM 1 - PROJECT SCOPE <br /> Grantee agrees to provide the public transportation services described in its final <br /> approved application and program of proposed expenditures approved by the <br /> Department, and in accordance with the Act, the Rules, the Standard Forms and all <br /> other applicable laws and regulations. Grantee shall not reduce, terminate, or <br /> substantially change such public transportation services without prior written <br /> notification to the Department. <br /> ITEM 2 - PROJECT BUDGET <br /> Under the Act, the Department may enter into a grant agreement to implement <br /> Grantee's approved program of expenditures, within the following limitations: 1) not <br /> to exceed fifty-five percent (55%) of Grantee's eligible operating expenses incurred <br /> by the Grantee during fiscal year 2006 in the provision of such public transportation <br /> services as have been approved by the Department; and 2) in no event shall state <br /> funding under this Agreement together with any operating assistance received from <br /> any federal, state or local agency in fiscal year 2006 exceed Grantee's actual <br /> operating deficit for that year. <br /> The Department has approved and agrees to make a grant in the amount of <br /> 2 590 230, subject to the limitations contained in this item, the Act and the Rules. <br /> The Approved Project Budget is shown in Exhibit A, attached to and incorporated <br /> into this Agreement. <br /> 1 <br />