R99-214 AUTHORIZING THE FILING AND EXECUTION OF AMENDMENT NO. 1

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� y ITEM 9 - REAL PROPERTY, EQUIPMENT AND SUPPLIES Unless otherwise approved by the Department, the following conditions apply to Project Facilities financed under this agreement: . q. t�sP ,Qject 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 used 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 twenty (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 guidelines, 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are not used for the Project as required by the terms of this Agreement, or are sold or otherwise disposed of, or are withdrawn from mass transportation service at the initiative of the Grantee, the Grantee shall immediately notify the Department, and shall at the Department's 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 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 also submit, from time to time, to the Department upon request, a certification that the Project Facilities are still being used in accordance with the terms of this Agreement and further certify that no part of the local contribution to the cost of the Project has been refunded or reduced. B. Maintenance The Grantee agrees to maintain any Project Facilities at a high level of cleanliness, safety, and mechanical soundness and in accordance with any guidelines, directives, or regulations that the Department, FTA, manufacturer, or contractor may issue(the stricter standard to apply unless expressly excused by the Department), including 49 CFR 18.31 - 18.34 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 confrming proper maintenance pursuant to this Sect�on. The Department reserves the right to require the Grantee to restore, ' repair or replace Project Facitities or�pay for damage as a result of abuse or misuse of such � State/Federa!Capital Grant page 9