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Page 23 of 40 <br /> Federal or State assistance (Project property) until, and to the extent, that the Federal or State <br /> Government relinquishes its Federal or State interest in that Project property. With respect to <br /> any Project property financed with Federal or State assistance under this Agreement, the <br /> Contractor agrees to comply with the following provisions of this Agreement, except to the <br /> extent FTA or the Department determines otherwise in writing: <br /> a. Use of Proiect Property. The Contractor agrees to maintain continuing <br /> control of the use of Project property to the extent satisfactory to the Department. The <br /> Contractor agrees to use Project property for appropriate Project purposes (which may include <br /> joint 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 of <br /> that property, as required by FTA or the Department. Should the Contractor unreasonably delay <br /> or fail to use Project property during the useful life of that property, the Contractor agrees that it <br /> may be required to return the entire amount of the Federal and State assistance expended on <br /> that property. The Contractor further agrees to notify the Department immediately when any <br /> Project property is withdrawn from Project use or when any Project property is used in a manner <br /> substantially different from the representations the Contractor has made in its Application or in <br /> the Project Description for this Agreement for the Project. In turn, the Department shall be <br /> responsible for notifying FTA. <br /> b. General. The Contractor agrees to comply with the property management <br /> standards of 49 C.F.R. §§ 19.30 through 19.37, including any amendments thereto, and with <br /> other applicable Federal and State regulations and directives. Any exception to the <br /> requirements of 49 C.F.R. §§ 19.30 through 19.37 requires the express approval of the Federal <br /> Government in writing. The Contractor also consents to the Department's reimbursement <br /> requirements for premature dispositions of certain Project equipment, as set forth in Subsection <br /> 19i of this Agreement. <br /> C. Maintenance and Inspection of Vehicles Facilities and Other Project <br /> Equipment. The Contractor shall maintain all project equipment at a high level of cleanliness, <br /> safety, 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 this <br /> section of this Agreement and the State Management Plan. The Contractor shall collect and <br /> submit to the Department at such time and in such manner as it may require information for the <br /> purpose of the Department's Public Transportation Management System (PTMS). <br /> d. Records. The Contractor agrees to keep satisfactory records pertaining to <br /> the use of Project property, and submit to the Department upon request such information as <br /> may be required to assure compliance with this Section of this Agreement. <br /> e. Incidental Use. The Contractor agrees that: <br /> (1) General. Any incidental use of Project property will not exceed that <br /> permitted under applicable Federal and State laws, regulations, and directives. <br /> (2) Alternative Fueling Facilities. As authorized by 49 U.S.C. § 5323(p), <br /> any incidental use of its federally financed alternative fueling facilities and equipment by non- <br /> transit public entities and private entities will be permitted, only if the: <br /> (a) Incidental use does not interfere with the Contractor's Project or <br /> public transportation operations; <br /> (b) Contractor fully recaptures all costs related to the incidental use <br /> from the non-transit public entity or private entity; <br /> (c) Contractor uses revenues received from the incidental use in <br /> excess of costs for planning, capital, and operating expenses that are incurred in providing <br /> public transportation; and <br /> (d) Private entities pay all applicable excise taxes on fuel. <br /> Revised 02/20/13 <br />