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, � <br /> whichever comes first,the Grantee shall give written notice of the proposed action(or shall require the operator of <br /> such service to give such notice)to the Department and all units of local government within the Grantee's service <br /> area. <br /> ITEM 9-REAL PROPERTY, EQUIPMENT AND SUPPLIES <br /> Unless otherwise approved by the Department,the following conditions apply to Project Facilities financed under this <br /> agreement: <br /> A. Use Of Project Facilities <br /> The Grantee agrees that the Project Facilities will be used for the provision of mass transportation service within the <br /> Grantee's service area substantially in the manner described in the Grantee's final,approved application. Project <br /> Facilities may be used for incidental charter or sight-seeing services when not needed for mass transportation service <br /> operations. Such Project Facilities shall be used for(a)a period of twenty(20)years from the completion of the <br /> Project,or(b)the period of the useful life of such Project Facilities as determined in accordance with generally <br /> accepted accounting principles and Department guidelines,whichever period of time is less. If,during such period, <br /> such Project Facilities are not used for the Project as required by the terms of this Agreement,or are sold or otherwise <br /> disposed of, or are withdrawn from mass transportation service at the initiative of the Grantee,the Grantee shall <br /> immediately notify the Department,and shall at the DepartmenYs discretion and as provided in Department guidelines, <br /> remit to the State a proportional amount of the fair market value, if any,of such Project Facilities. <br /> If the Project Facilities include commuter parking,the Parties agree that users of the commuter parking facilities funded <br /> 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 <br /> meet reasonable maintenance and operating expenses, and to establish a sinking fund to cover major rehabilitation, or <br /> for other transit related purposes as approved by the Department in writing. The Project Facilities shall be equally <br /> available for use by all commuters regardless of the place of residence, and there shall be no difference in the amount <br /> of fees charged to users of such commuter parking facilities based on place of residence. <br /> The Grantee shall keep satisfactory records with regard to the use of the Project Facilities and shall submit to the <br /> Department upon request such information as the Department may require in order to assure compliance with this � <br /> ITEM, and the Grantee shall immediately notify the Department in all cases where Project Facilities are used in a <br /> manner substantially different from that described in the Grantee's final,approved application. The Grantee shall <br /> maintain in amount(s)and form satisfactory to the Department, such insurance or self-insurance as will be adequate to <br /> protect Project Facilities throughout the period of required use. The cost of such insurance shall not be an item of <br /> allowable cost under this Agreement. The Grantee shall also submit,from time to time,to the Department upon <br /> request, a certification that the Project Facilities are still being used in accordance with the terms of this Agreement <br /> and further certify that no part of the local contribution to the cost of the Project has been refunded or reduced. <br /> B. Maintenance <br /> The Grantee agrees to maintain any Project Facilities at a high level of cleanliness,safety,and mechanical soundness <br /> and in accordance with any guidelines,directives,or regulations that the Department, FTA, manufacturer,or contractor <br /> may issue(the stricter standard to apply unless expressly excused by the Department), including 49 CFR 18.31 -18.34 <br /> and 19.30-19.37. For vehicles,the manufacturer's suggested maintenance and inspection schedule will be considered <br /> the minimesrn maintenance standard that must be adhered to. The Department and/or FTA shall have the right to <br /> conduct periodic inspections for the purpose of confirming proper maintenance pursuant to this Sedion.The <br /> Department reserves the right to require the GraMee to restare,repair or replace Projeci Facilities or pay for damage <br /> as a result of abuse or misuse of such Project Facilities. If,at ar�}t ti�e during the useful life of the Project Facilities, <br /> any of the Project Facilities are not used for the purpases specified in this Agreement,whether by planned withdrawal, <br /> misuse or casualty loss,the Grantee shall immediately notify and receive approval from the Department prior to <br /> disposing of such Project Facilities. Any such disposition shall be in accordance with Department procedures. <br /> State/Federal Capita!Grant page 8 <br />