R98-52 AUTHORIZING THE FILING OF A FINAL APPLICATION

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reserves the right to require the Grantee to restore Project Facilities or pay for damage as a result of abuse or misuse of such Project Facilities. If, at any time during the useful life of the Project Facilities, 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 State prior to disposing of such Project Facilities, disposition shall be in accordance with Department procedures. (1) Interest in Pro�erty - Unless otherwise approved by the Department, the Grantee agrees to remit to the Department the State interest in the fair market value, if 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 Department 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) Unless otherwise approved in writing by the Department, the fair market value of Project Facilities will be the value of that property 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 the greater of the following: (1)appraised value, (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 Prqject 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 Project Facilities lost or damaged by casualty or fire will be calculated on the basis of the condition of the Project Facilities immediately before the casualty, irrespective of the extent of insurance coverage. (B) Exce�tional Circumstances - The Department, however, reserves the right to require another method of valuation to be used if determined to be in the best interest of the Department. In unusual circumstances, the Grantee may request that 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 Department 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 Project Facilities that,for any reason, have been withdrawn from service. c. Misused or Dam�ged Propertx-If any damage to Project Facilities results from abuse or misuse that has taken place with the Grantee's knowledge and consent,the Grantee agrees that the Department may require the Grantee to restore those Project Facilities to their original condition or refund the fair market value of the State interest in the damaged Project Facilities. d. Obljgations After Project Close-out - The Grantee agrees that project close-out will not alter its property management obligations set forth in this Section. ITEM 10-ETHICS a. Code of Conduct (1) Personal Conflict of Interest - The Grantee shall maintain a written code or standard of conduct which shall govern the performance of its employees, officers, board members or agents engaged in the award and administration of contrads supported by federal or state funds. Such code shall provide that no employee, officer, board member, or agent of the Grantee may participate in the selection, � award, or administration of a contract supported by federal or state funds if a conflict of interest, real or ' apparent,would be involved. Such a conflict would arise when any of the parties set forth below has a financial or other interest in the firm selected for award: State Capital Grant g