2017-574 OPT - FY2018 NCDOT application for Section 5339 Public Transportation Grant

Browse Search

shall be recorded on the Certificate of Title as first lien- holder. In the event of project termination or breach of contract provisions, the Grantee shall, upon written notification by the Department, surrender Project equipment and /or transfer the Certificate(s) of Title for Project equipment to the Department or the Department's designee. g. Encumbrance of Project Property. The Grantee agrees to maintain satisfactory continuing control of Project property as follows: (1) Written Transactions. The Grantee agrees that it will not execute any transfer of title, lease, lien, pledge, mortgage, encumbrance, third party contract, subagreement, grant anticipation note, alienation, innovative finance arrangement (such as a cross border lease, leveraged lease, or otherwise), or any other obligation pertaining to Project property, that in any way would affect the continuing Federal and State interest in that Project property. (2) Oral Transactions. The Grantee agrees that it will not obligate itself in any manner to any third party with respect to Project property. (3) Other Actions. The Grantee agrees that it will not take any action adversely affecting the Federal and State interest in or impair the Grantee's continuing control of the use of Project property. h. Transfer of Project Property. The Grantee understands and agrees as follows: (1) Grantee Request. The Grantee may transfer any Project property financed with Federal assistance authorized under 49 U.S.C. chapter 53 to a local governmental authority to be used for any public purpose with no further obligation to the Federal Government, provided the transfer is approved by the Federal Transit Administrator and conforms with the requirements of 49 U.S.C. §§ 5334(h)(1) through 5334(h)(3). (2) Federal /State Government Direction. The Grantee agrees that the Federal or State Government may direct the disposition of, and even require the Grantee to transfer title to any Project property financed with Federal /State assistance under this Agreement. (3) Leasing Project Property to Another Party. (a) General. Prior to entering into any third party contract for leasing Project property to another party, the Grantee agrees to obtain approval from the Department. If the Grantee leases any Project property to another party, the Grantee agrees to retain ownership of the leased Project property, and assure that the lessee will use the Project property appropriately, through a written lease between the Grantee and lessee. The Grantee agrees to use the standard lease agreement form provided by the Department and to provide a copy of the signed, executed lease agreement to the Department. In accordance with Subsection 5e of this Agreement, regardless of assignment of work to be completed under this Project or lease of Project assets to a third party, it is the Grantee's primary responsibility to comply with Federal and State requirements of this Agreement and assure the compliance of any third party Grantees. (b) Lease of Vehicles. The lease of vehicles acquired with financial assistance authorized for 49 U.S.C. chapter 53 to any third party is contingent upon approval of the Department. It is allowable to lease vehicles to another Community Transportation System providing general public service in the State of North Carolina, upon approval of the Department. It is also allowable for vehicles to be leased to a third party operator or transportation management company that operates the transit service within a county /region under contract to the Grantee, upon approval of the Department. The Grantee agrees to use the vehicle lease agreement provided by the Department when vehicles are leased, even if on a short-term basis, to another Community Transportation System or a management company. The Grantee agrees to obtain written approval from the Department before the lease is executed and forward a copy of the signed, executed lease agreement to the Department. The Grantee, as a Community Transportation System, shall not lease vehicles to human service agencies, county agencies /government, community agencies or school systems. The Grantee agrees not to loan vehicle(s) to other agencies /individuals for short -term use, even during hours that the transportation system is not providing service, as the 05/27/2015 Page 23 of 36