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market value of Project property prematurely withdrawn from use will be <br /> calculated as follows: <br /> • Equipment and Supplies: The County agrees that the fair market value <br /> of Project equipment and supplies shall be calculated by straight-line <br /> depreciation of that property, based on the useful life of the equipment or <br /> supplies as established by the Department. The fair market value of <br /> Project equipment and supplies shall be the value immediately before <br /> the occurrence prompting the withdrawal of the equipment or supplies <br /> from appropriate use. In•the case of Project equipment or supplies lost <br /> or damaged by fire, casualty, or natural disaster,the fair market value <br /> shall be calculated on the basis of the condition of that equipment or <br /> supplies immediately before the fire, casualty, or natural disaster, or the <br /> amount of insurance coverage,whichever is greater. <br /> • Exceptional Circumstances: The County agrees that the Department <br /> may require the use of another method to determine the fair market <br /> value of Project property. In unusual circumstances,the County may <br /> request that another reasonable valuation method be used including, but <br /> not limited to,accelerated depreciation, comparable sales, or established <br /> market values. In determining whether to approve such a request,the <br /> 1 Department may consider any action taken, omission made, or <br /> unfortunate occurrence suffered by the County with respect to the <br /> preservation of Project property withdrawn from appropriate use. <br /> 0 Financial Obligation to the Federal/State Government: The County agrees to <br /> remit to the Department the Federal and State interest in the fair market value of <br /> any Project property prematurely withdrawn from appropriate use. In turn,the <br /> Department shall be responsible to remit the Federal interest to FHWA. In the <br /> case of fire,casualty,or natural disaster,the County may fulfill its obligations to <br /> remit the Federal and State interest by either: <br /> • Investing an amount equal to the remaining Federal and State interest in <br /> like-kind property that is eligible for assistance within the scope of the <br /> Project that provided Federal/State assistance for the Project property <br /> prematurely withdrawn from use;or, <br /> • Returning to the Department an amount equal to the remaining Federal <br /> and State interest in the withdrawn Project property. <br /> Agreement ID#6119 9 <br />