2017-575 OPT - FY2018 NCDOT application for Section 5310 Public Transportation Grant

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written approval from the Department before the lease is executed and forward a copy of the signed, executed /naaa agreement to the Department. The GcaDtae, on 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 vehio(e/s> will generally heused. tn provide service that im"dosed-door."ie., not open to the general public. Disposition of Project . With prior Department approval, the Grantee may sell, transfer, or lease Project property and use the proceeds to reduce the gross p jeotnostofofhere|iQib|e capital public transportation projects to the extent permitted by 49 U.S.C. § 5334(h)(4). The Grantee also agrees that the Department shall determine "useful life" for all Project propedxond that the E)oaOtoe will use Project property continuously and appropriately throughout the useful life ofthatproperty. Upon the end of the period of useful life, the Grantee may dispose ofProject property after notifying and receiving disposition instructions from the Department. (1) Project Property Whose Useful Life Has Expired. When the useful life of Project propeds has expired, the Grantee agrees to comply with the Department's disposition requirements. (2) . For Project property withdrawn from appropriate use before its useful life has expired, the Grantee agrees asfollows: /o\ . The Grantee agrees to notify the Department immediately when any Project prnpedvispremmture|ywithdrmvvOfroOnapprnpriatnqse'vVhsdherbv planned withdrawal, noiouaa, or casualty loss. /h\ Calculating the Fair Market Value of Prematurely Withdrawn Project Propert . Th& Grantee agrees that the RadocmKGtabe Government retains a Federal/State interest in, the fair market value of Project prnpedvpn*rnotuna|yvvithdravvnfrunOappPophateuoe. The amount of the Federal/State interest iO the Project propedvsho||bedete[nnined by the ratio of the Federal/State assistance awarded for the property tothe actual cost of the property. The Grantee agrees that the fair market value of Project property prematurely withdrawn from use VWU be calculated as follows: 1. The Grantee agrees that the hni[ market value of Project equipment and supplies shall be calculated by straight-line depreciation of that pnnpedx, based on the useful life of the equipment or supplies an established by the Department. The fair market value of Project equipnlontand supplies shall be the value immediately before the occurrence prompting the withdrawal of the equipment or supplies from appropriate use. In the case of Project equipment � or supplies lost nrdamaged by fire, ceoue|tv' orDotOro| disomter, the fair market value shall be cm|nU|eted on the basis of the condition of that equipment or supplies immediately before the fire, neuuu|ty' or Dedu[o| disaster, or the amount of insurance coverage, whichever ingreater. 2. Real PropertV. The Grantee agrees that the fair market Value of real property financed under the Project shall be determined by FTy\ either on the basis of competent appraisal based on an appropriate date approved byFTA' an provided by 49 C.F.R. Part 24, by straight line depreciation of improvements to real property coupled with the value of the land as determined by FIA on the basis of appraisal, or other Federal law or regulation.s that ma"y be applicable. 8. Exceptional Circumstances. The Grantee agrees that the Department may require the use of another method to determine the fair market value ofProject property. In unusual circumstances, the Grantee may request that another reasonable valuation method be used |nn/uding, but not limited to, accelerated depreciation, comparable sa|as, or established market values. In determining whether to approve such a naqUnst. the Department may consider any action tmheo^ omission made, or unfortunate Occurrence suffered by the Grantee with respect tn the preservation of Project pnopedxwithdravvnfronnoppnopriatauna. (o) , The Grantee agrees turemit 05/2712015 Page 24u[37