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State Fiscal Year 2011 Community Transportation Programs <br />Federal and State Assistance Certifications and Assurance <br />12 <br />As required by FTA regulations, "Capital Leases," 49 CFR part 639, at 49 CFR 639.15(b)(1) and 44 CFR 639.21, if <br />the Applicant acquires any capital asset by lease fmanced with Federal assistance authorized under 49 U.S.C. • <br />chapter 53, the Applicant certifies as follows: <br />(1) It will not use Federal assistance authorized under 49 U.S.C. chapter 53 to fmance the cost of leasing any <br />capital asset until it performs calculations demonstrating that leasing the capital asset would be more cost- <br />effective than purchasing or constructing a similaz asset; and it will complete these calculations before entering <br />into the lease or before receiving a capital grant for the asset, whichever is later; and <br />(2) It will not enter into a capital lease for which FTA can provide only incremental Federal assistance unless it <br />has adequate fmancial resources to meet its future obligations under the lease if Federal assistance is not <br />available for capital projects in the subsequent years. <br />08. BUS TESTING <br />An Applicant for State or Federal assistance appropriated or made available for 49 U.S.C. chapter 53 to acquire <br />any new bus model or any bus model with a new major change in configuration or components is required to <br />provide the following certification. NCDOT may not provide State or Federal assistance for the acquisition of any <br />new bus model or bus model with a major change until the Applicant provides this certification by selecting <br />-Category "08. " <br />As required by 49 U.S.C. 5318 and FTA regulations, "Bus Testing," at 49 CFR 665.7, the Applicant certifies that, <br />before expending any Federal assistance to acquire the fast bus of any new bus model or any bus model with a new <br />major change in configuration or components, or before authorizing final acceptance of that bus (as described in 49 <br />CFR part 665): <br />A. The bus model will have been tested at FTA's bus testing facility; and <br />B. The Applicant will have received a copy of the test report prepazed on the bus model. <br />09. CHARTER SERVICE AGREEMENT • <br />An Applicant seeking State or Federal assistance authorized under 49 U.SC. chapter 53 (except as permitted by 49 <br />CFR 604.2), or under 23 U.S.C. 133 or 142, to acquire or operate arty public transportation equipment or facilities <br />is required to enter into the following Charter Service Agreement. NCDOT may not provide State or Federal <br />assistance authorized under 49 U.SC. chapter 53 (except as permitted by 49 CFR 604.2), or under 23 U.S.C.133 or <br />142, for such projects until the Applicant enters into this Charter Service Agreement by selecting Category "09. " <br />A. As required by 49 U.S.C. 5323(d) and (g) and FTA regulations at 49 CFR 604.4, the Applicant understands <br />and agrees that it and each subrecipient, lessee, third party contractor, or other participant in the project at any <br />tier may provide charter service for transportation projects that uses equipment or facilities acquired with <br />Federal assistance authorized under the Federal transit laws (except as permitted by 49 CFR 604.2), or under <br />23 U.S.C. 133 or 142, only in compliance with those laws and FTA regulations, "Charter Service," 49 CFR <br />part 604, the terms and conditions of which are incorporated herein by reference. <br />B. The Applicant understands and agrees that: <br />(1) The requirements of FTA regulations, "Charter Service," 49 CFR part 604, will apply to any charter <br />service it or its subrecipients, lessees, third party contractors, or other participants in the project provide, <br />(2) The definitions of FTA regulations, "Charter Service," 49 CFR part 604, will apply to this Charter <br />Service Agreement, and <br />(3) A pattern of violations of this Charter Service Agreement may require corrective measures and <br />imposition of remedies, including barring the Applicant, subrecipient, lessee, third party contractor, or <br />other participant in the project that has engaged in that pattern of violations from receiving State or FTA <br />financial assistance, or withholding an amount of State and/or Federal assistance as set forth in FTA <br />regulations, "Charter Service," 49 CFR part 604, Appendix D. <br />• <br />