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standards. If the Grantee does engage in school bus operations exclusively for the transportation of students <br /> and school bus personnel as described above,then the Grantee certifies that it operates a school system in the <br /> area to be served thereby and operates a separate and exclusive school bus program for the school system. <br /> The Grantee further agrees and certifies that it shall immediately notify the Department in writing of its <br /> involvement in or its intention to become involved in any school bus operation prohibited by Section 49.19(6) <br /> after the date of this certification and this Agreement. <br /> B. Charter Bus Operations-Neither the Grantee nor any transit operator performing work in connection with this <br /> Project shall engage in charter service operations,except as permitted by 49 U.S.C. §5323(d)and FTA <br /> regulations"Charter Service,"49 CFR§604. Any charter service agreement entered into under these <br /> regulations is incorporated into this Agreement by reference. <br /> The Grantee agrees not to engage in either school bus or charter operations, and has further signed the certification <br /> attached hereto as part of Exhibit"C". <br /> ITEM 35-CONSTRUCTION CONTRACTS <br /> If construction contracts are to be implemented using assistance from this Agreement,the following additional <br /> provisions apply to the Grantee and Grantee's third party construction contracts: <br /> A. Seismic Requirements. The Grantee agrees to comply with 49 C.F.R. Part 41 during the construction of new <br /> buildings or additions to existing buildings. <br /> B. Contract Security. The Grantee agrees to follow the requirements of 49 C.F.R.§18.36(h)or OMB Circular A-110, <br /> Revised, as applicable, and FTA guidelines with regard to bid guarantees and bonding requirements. <br /> C. Liquidated Damages. If appropriate,the Grantee agrees to include a clause providing for liquidated damages for <br /> delay in its third party contracts for construction. Liquidated damages clauses are appropriate if the parties may <br /> be reasonably expected to suffer damages(such as increased costs of the Project involved)from the late <br /> completion of the construction and the extent or amount of such damages would be difficult or impossible to <br /> determine. The assessment for damages shall be at a specific rate per day for each day of overrun in contract <br /> time, and the rate must be specified in the third party contract. Any liquidated damages recovered shall be <br /> credited to the Project account involved unless the Government expressly agrees otherwise. The Grantee <br /> agrees that proportionate shares of all liquidated damages assessed under this Agreement shall be credited to <br /> the state and federal governments in amounts equivalent to the percentages of the Project funded by each, and <br /> the Grantee shall be credited a proportionate share of the liquidated damages in an amount equivalent to the <br /> percentage of the Project funded by the Grantee. <br /> ' D. Safety Standards. Pursuant to section 107 of the Contract Work Hours and Safety Standards Act and <br /> Department of Labor regulations,"Safety and Health Regulations for Construction"29 C.F.R. 1926, no laborer or <br /> mechanic working on a construction contract shall be required to work in surroundings or under working <br /> conditions that are unsanitary,hazardous,or dangerous to his or her health and safety as determined under <br /> construction and health standards promulgated by the Secretary of Labor. <br /> E. Signs. The Grantee agrees to cause to be erected at the site of construction, and to maintain during <br /> construction, signs satisfactory to FTA identifying the Project and indicating that the Govemment is participating <br /> in the development of the Project. <br /> ITEM 36-LABOR PROVISION <br /> A. Construction Contracts. Pursuant to Department of Labor regulations,"Labor Standards Provisions Applicable to <br /> Contracts Covering Federally Financed and Assisted Construction(also Labor Standards Provisions Applicable <br /> to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act),"29 C.F.R.§5,the <br /> State/Federal Capital Grant page 16 <br />