R2003-203 AUTHORIZING AN AMENDED AGREEMENT

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also submit,from time to time, to the Department upon request, a certification that the Project Facilities ace 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 B. Maintenance and Withdrawn Propertv-The Grantee agrees to maintain any Project Facilities at a high level of cleanliness, safety, and mechanical soundness and in accordance with any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 manufacturer, contractor, or the Department may issue, the stricter standard shall apply unless excused by the Department. 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 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. (1) Interest in Propertv- Unless otherwise approved by the Department, the Grantee agrees to remit to the Department the State interest in the fair market value, if any, of any item 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 Department for the particular Project Facility to the actual cost of the Project. (2) Fair Market Value-The following requirements apply to the calculation of fair market value: (a) Unless otherwise approved in writing by the Department, the fair market value of any of the Project Facilities will be the value of that property at the time immediately before the occurrence that prompted the withdrawal of the Project Facilities from transit use. The fair market value shall be calculated by the one of the following: (1)appraised value, (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 transit 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, irrespective of the extent of insurance coverage. (b) Exceptional Circumstances-The Department, however, reserves the right to require another method of valuation to be used if determined to be in the best interest of the Department. In unusual circumstances, the Grantee may request that the Department approve the use of another reasonable method of determining fair market value, including but not limited to accelerated State Capital Grant Page 9