R2001-90 AUTHORIZING THE FILING AND EXECUTION OF CONTRACT

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� F. Grantee's Responsibility for Compliance. Irrespective of the participation of other parties or Third Party Contractors, the Grantee continues to remain primarily responsible to the Department and FTA for compliance with all Federal& State Requirements published in statutes, regulations, executive orders, Master Agreements or Grant Agreements 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, as the case may be, the service described in the Grantee's transfer request (Exhibit C). 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 Project Asset(s) financed under this agreement: A. Use Of Property. The Grantee agrees that the Project Asset(s) will be used for the provision of public transit or specialized transportation service within the Grantee's service area substantially as described in the Grantee's transfer request(Exhibit C). The Grantee shall keep satisfactory records with regard to the use of the Project Asset(s) and shall submit to the Department upon request such information as is required in order to assure compliance with this ITEM. Such Project Asset(s) shall be used for the useful life of such Project Asset(s) as determined in accordance with the Department guidelines. If, during such period, such Project Asset(s) is not used in this manner or sold, or otherwise disposed of or withdrawn from service at the initiative of the Grantee,the Grantee shall immediately notify the Department, and shall at the DepartmenYs discretion and as provided in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,either transfer the Project Asset(s)or remit to the state a proportional amount of the fair market value, if any, of such Project Asset(s). B. Maintenance. The Grantee agrees to maintain any state or federally funded project property and equipment at a high level of cleanliness, safety, and mechanical soundness and in accordance with any guidelines, directives, or regulations that the Department or FTA may issue. For state and/or federally funded vehicles, the manufacturer's suggested maintenance and inspection schedule will be considered the minimum maintenance standard that must be performed. 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 Project Asset(s)or pay for damage as a result of abuse or misuse of such Project Asset(s). If, at any time during the useful life of the Project Asset(s), the Project Asset(s) 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 state prior to disposing of such Project Asset(s),disposition shall be in accordance with Department procedures. C. Transfer of Project Property. (1) Grantee Request. The Government agrees that the Grantee may transfer Project Asset(s) financed under the Acts, to a public body to be used for any public purpose with no further obligation to the Government, provided that the transfer is authorized by the Department, and the Federal Transit Administration if necessary,and conforms with the requirements of 49 USC§5334(g). (2) Government Direction. The Grantee agrees that the Govemment may require the Grantee to transfer title to any equipment financed with Federal and/or state assistance made available by this Agreement. Asset TransferAgreementpage 8