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32 <br />agrees to comply with the following provisions, except to the extent FTA or the Department <br />determines otherwise in writing: <br />a. Use of Project Property. The Contractor agrees to maintain continuing <br />control of the use of Project property to the extent satisfactory to FTA. The Contractor <br />agrees to use Project property for appropriate Project purposes (which may include joint <br />development purposes that generate program income, both during and after the award <br />period and used to support public transportation activities) for the duration of the useful life <br />of that property, as required by FTA or the Department. Should the Contractor <br />unreasonably delay or fail to use Project property during the useful life of that property, the <br />Contractor agrees that it may be required to return the entire amount of the Federal and <br />State assistance expended on that property. The Contractor further agrees to notify the <br />Department immediately when any Project property is withdrawn from Project use or when <br />any Project property is used in a manner substantially different from the representations <br />the Contractor has made in its Application or in the Project Description for this Agreement <br />for the Project. In tum, the Department shall be responsible for notifying FTA. <br />b. General. The Contractor agrees to comply with the property <br />management standards of 49 C.F.R. §§ 18.31 through 18.33, including any amendments <br />thereto, and with other applicable Federal and State regulations and directives. Any <br />exception to the requirements of 49 C.F.R. §§ 18.31 through 18.33 requires the express <br />approval of the Federal Government in writing. The Contractor also consents to the <br />Department's reimbursement requirements for premature dispositions of certain Project <br />equipment, as set forth in Subsection 14i of this Agreement. <br />c. Maintenance and Inspection of Vehicles Facilities and Other Project Equipment . <br />The Contractor shall maintain all project equipment at a high level of cleanliness, safety, <br />and mechanical soundness in accordance with the minimum maintenance requirements <br />recommended by the manufacturer. The Contractor shall register all vehicle maintenance <br />activities in a Comprehensive Maintenance Record or an electronic version of same. The <br />Department shall conduct frequent inspections to confirm proper maintenance pursuant to <br />this Subsection 23c of this Agreement and the State Management Plan. The Contractor <br />shall collect and submit to the Department at such time and in such manner as it may <br />require information for the purpose of the Department's Public Transportation <br />Management System (PTMS). <br />The Contractor shall maintain the facility, including any and all equipment installed into or <br />added on to the facility as part of the Project, in good operating order and at a high level of <br />cleanliness, safety and mechanical soundness in accordance with good facility <br />maintenance and upkeep practices and in accordance with the minimum maintenance <br />requirements recommended by the manufacturer for all equipment installed in or added to <br />the facility as part of the Project. Such maintenance shall be in compliance with applicable <br />Federal and state regulations or directives that may be issued, except to the extent that <br />the Department determines otherwise in writing. The Department shall conduct <br />inspections as it deems necessary to confirm proper maintenance on the part of the <br />Contractor pursuant to Subsection 23c of the Agreement and the State Management Plan. <br />Such inspections may or may not be scheduled ahead of time, but will be conducted such <br />that they shall not significantly interfere with the ongoing and necessary functions for which <br />the Project was designed. The Contractor shall make every effort to accommodate such <br />inspections by the Department in accordance with the Department's desired schedule for <br />such inspections. The Contractor shall collect and submit to the Department at such time <br />and in such manner as the Department may require information for the purpose of the <br />Department's Public Transportation Management System (PTMS) and any and all other <br />reports the Department deems necessary. The Contractor shall also maintain and make <br />Revised 1/6/10 <br />