R2000-225 AUTHORIZING THE FILING AND EXECUTION OF GRANT AMENDMENT NO. 1

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. � and 19.30-19.37. For vehicles,the manufacturer's suggested maintenance and inspection schedule will be considered the minimum maintenance standard that must be adhered to. 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,repair or replace Project Facilities or pay for damage as a result of abuse or misuse of such Project Facilities. tf,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. C. Transfer of Project Property. (1) Grantee Request.The Grantee may transfer Project Facilities financed in whole or in part by the Govemment to an eligible recipient to be used for any public or specialized purpose with no further obligation to the Government, provided that the transfer is authorized by the Department,and FTA, if necessary,and conforms with the applicable requirements of 49 U.S.C.§5334(g). (2) Government Direction. The Grantee agrees that the Government may require the Grantee to transfer title to any Project Facilities financed with federal andlor state assistance made avaNable by this Agreement. The Grantee also agrees that the Government may direct the disposition of Project Facilities financed with federal and/or state assistance funds made available under this Agreement,or otherwise account for Project Facilities,as set forth by 49 CFR 18.31 and 18.32. D. Withdrawn Property. If any Project Facilities are not used in mass transportation service for the duration of their useful life as determined by the Department,whether by planned withdrawal, misuse or casualty loss,the Grantee agrees to notify the Department thereof within 30 calendar days prior to the date of disposition. (1) Federal and/or State Interest in Property. Unless otherwise approved by the Government,the Grantee agrees to remit to the Department the Government interest in the fair market value of any of the Project Facilities whose unit value exceeds$5,000. The amount of that interest shall be determined on the basis of the ratio of the assistance awarded by the Government for the Project to the actual cost 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 transit 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 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 transit use,or(3)the actual proceeds from the public sale of such property,whichever method is approved by the Department. Any appraiser employed for such purposes shall be subject to the prior approval of the Department. The fair market value of any of the Project Facilities lost or damaged by casualry 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) Exceptional Circumstances- The Govemment, 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 Govemment approve another reasonable method of determining fair market value be used,including but not limited to accelerated depreciation, comparable sales,or estimated market values. In determining whether to approve an alternate method,the Govemment 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. State/Federal Capital Grant page 9