2015-439 OPT - FY2016 5311 Nonurbanized area public transportation grant

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accordance with Subsection 5g of this Agreement, regardless of assignment of work to be completed Linder this Project or lease of Project assets to a third party, it is the Contractor's primary responsibility to comply with Federal and State requirements of this Agreement and assure the compliance of any third party contractors. (b) Lease of Vehicles. The lease of vehicles acquired with financial assistance authorized for 49, U.S.C. 5311 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 Linder contract to the Contractor, upon approval of the Department, The Contractor 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 Systern or a management company, The Contractor agrees to obtain written approval frorn the Department before the lease is executed and forward a copy of the signed, executed lease agreement to the Department. The Contractor, as a Community Transportation, System, shall not lease vehicles to human service agencies, County agencies/government, community agencies or school systems. The Contractor agrees not to loan vehicle(s) to other agencies /individuals for short-term use, even during hours that the transportation systern Is not providing service, as the vehicle(s) will generally be used to provide service that is "closed-door," i.e., not open -to the general public, i. Disposition of Project PTopert , With prior Department approval, the Contractor may sefl, transfer, or lease Project property and use the proceeds to reduce the gross project cost of other eligible capital public transportation projects to the extent permitted by 49 U.S.C, § 5334(h)(4), The Contractor also agrees that the Department shall determine "useful life" for all Project property and that the Contractor wifl use Project property continuously and appropriately throughout the useful life of that property. Upon the end of the period of useful life, the Contractor may dispose of Project property after notifying and receiving disposition instructions frorn the Department. Proect Proqgjy_'u hose Useful Life leas Pxoired, When the useful Iffe of Project property has expired, the Contractor agrees to comply with the Department's disposition req u ireme tits, (2) Project Property Preimturelv Withdrawn from Use. For Project property withdrawn frorni appropriate Use before its useful life has expired, the Contractor agrees as follows, (a) Notification Requirement, The Contractor agrees to notify the Department immediately when any Project property is prematurely withdrawn from appropriate use, whether by planned withdrawal, misuse, or casualty loss. (b) Calculating the Fair Market Value of Prematurely Withdrawn .......Project . Property. The Contractor agrees that the Federal/State, Government retains a Federal/State interest in the fait, market value of Project property prematurely withdrawn from appropriate use. The amount of the Fecleral/State interest in the Project property shall be determined by the ratio of the Federal /State assistance awarded for the property to the actual cost of the property. The Contractor agrees, that the fair market Value of Project property prematurely withdrawn from use will be calculated as followers: 1. Equipment and Supplies, The Contractor agrees that the -fair market value of Project equipment and supplies shall be calculated by straight-line depreciation of that property, based on the useful life of the equipment or supplies as established by the Department. The fair rnarket value of Project equipment and Supplies shall be the value immediately before the occurrence prompting the withdrawal of the equipment or supplies frorn appropriate use. In the case of Project equipment or supplies lost or damaged by fire, Updatedi 9117110 Page 23 of 35