R2003-203 AUTHORIZING AN AMENDED AGREEMENT

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responsibility to the Department for compliance with all state requirements, statues, regulations, executive orders, and/or the Grant Agreement for this Project. ITEM 8-CONTINUANCE OF SERVICE The Grantee agrees to use its best efforts to continue to provide, either directly or by contract or service agreement, as the case may be, the service(s)for which these Project Facilities are being acquired or constructed, as such services(s) is described in the Grantee's final, approved application. No reduction or termination of such service shall be made without compliance with all applicable statutory and regulatory provisions. At least 30 days prior to(a)any reduction or termination of such service or(b)the filing of a request for such reduction or termination with the appropriate regulatory agency, whichever comes first, the Grantee shall give written notice of the proposed action (or shall require the operator of such service to give such notice)to the Department and all units of local government within the Grantee's service area. ITEM 9—REAL PROPERTY, EQUIPMENT AND SUPPLIES Unless otherwise approved by the Department, the following conditions apply to the Project Facilities financed, in whole or in part, under this Agreement: A. Use of Project Facilities-The Grantee agrees that the Project Facilities will be used for the provision of mass transportation service within the Grantee's service area, substantially in the manner described in the Grantee's final, approved application. Project Facilities may be u�ed for incidental charter or sight-seeing services when not needed for mass transportation service operations. Such Project Facilities shall be used for(a)a period of twenry(20)years from the completion of the Project, or(b)the period of the useful life of such Project Facilities as determined in accordance with generally accepted accounting principles and Department g,uidelines, whichever period of time is less. If, during such period, such Project Facilities are not used for the Project as required by the terms of this Agreement, or are sold or otherwise disposed of, or withdrawn from mass transportation service at the initiative of the Grantee, the Grantee shall immediately notify the Department, and shall at the DepartmenYs discretion, and as provided in Department guidelines, remit to the State a proportional amount of the fair market value, if any, of such Project Facilities. If the Project Facilities include commuter parking, the Parties agree that users of the commuter parking facilities funded by this Grant may be charged a fee for the use of such facilities, but the amount of such fee shall be so established to meet reasonable maintenance and operating expenses, and to establish a sinking fund to cover major rehabilitation, or for other transit related purposes as approved by the Department in writing. The Project Facilities shall be equally available for use by all commuters regardless of the place of residence, and there shall be no difference in the amount of fees charged to users of such commuter parking facilities based on place of residence. The Grantee shall keep satisfactory records with regard to the use of the Project Facilities and shall submit to the Department, upon request, such information as the Department may require in order to assure compliance with this ITEM, and the Grantee shall immediately notify the 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 an 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 State Capital Grant Pa ge 8