R90-53 AUTHORIZING AN AGREEMENT WITH THE UNITED STATES DEPARTMENT OF TRANSPORTATION

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„ , . shall immediately notify the Government. Unless otherwise approved by the Government, the Recipient shall remit to the Government a proportional amount of the fair .market value, if any, of the real property, equipment, or supplies whose aggregate value exceeds $5, 000, which value shall be determined on the basis of the ratio of the Federal assistance awarded by the Government to the actual cost of the Project. The following guidelines shall be followed in determining the fair market value. Unless otherwise approved in writing by UMTA, the fair market value of equipment and supplies will be the value of that property at the time � immediately before the reason occurred that prompted the decision to withdraw that property from transit use. For example, in the event of loss of or damage to the property by casualty or fire, • the fair market value of the property will be calculated immediately before the loss or damage, irrespective of the extent of insurance coverage. In the case of equipment and supplies, fair market value shall be based on straight line depreciation of the equipment and supplies, based on the industry standard for useful life, irrespective of the reason for withdrawal of that property from transit use. In the case of real property, the fair market value shall be determined by competent appraisal based on an appropriate date as determined by the Government consistent with the standards of 49 C.F.R. Part 24. The Government, however, reserves the right to require another method of valuation to be used if the Government finds that special circumstances so require to assure the protection of the Federal investment. In unusual circumstances, the Recipient may request that another reasonable method of determining fair market value be used, including but not limited to accelerated depreciation, comparable sales, or established market values. In determining whether to approve an alternate method, the Government may consider any action taken, omission made or unfortunate occurrence suffered by the Recipient with respect to the preservation or conservation of the value of the real property, equipment, or supplies that, for any reason, have been withdrawn from service. c. The Recipient further agrees that the Project real property, equipment, and supplies shall be used for the provision of mass transportation service within the area and in the manner set forth in the Project Description. Should the Recipient unreasonably delay in or refrain from using Project real estate or equipment, in the manner set forth in the Project Description, the Government reserves the right to require the Recipient to return the entire amount of the Federal assistance expended on that real estate or equipment. The Recipient shall keep satisfactory records with regard to the use of the real property, equipment, and supplies, and submit to the Government upon request such information as may be required to assure compliance with this Section and shall immediately notify the Government in all cases in which Project real property, equipment, or supplies are used in a manner substantially different from what is set forth in the Project Descr�ption. The Government reserves the right to require the Recipient to restore Project real property, equipment, or supplies Page 11