AG 2011 05 16 - Laserfiche WebLink

Home Browse Search

established by the Department. The fair market value of Project equipment and 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 or damaged by fire, casualty, or natural disaster, the fair market value shall be calculated on the basis of the condition of that equipment or supplies immediately before the fire, casualty, or natural disaster, or the amount of insurance coverage, whichever is greater. 2. Real Property The Contractor agrees that the fair market value of real property shall be determined either on the basis of competent appraisal based on an appropriate date approved by the Department, as provided by 49 C.F.R. Part 24, or by straight line depreciation of improvements to real property coupled with the value of the land as determined on the basis of appraisal, or other Federal /state law or regulations that may be applicable. 3. Exceptional Circumstances The Contractor agrees that the Department may require the use of another method to determine the fair market value of Project property. In unusual circumstances, the Contractor may request that another reasonable valuation method be' used including, but not limited to, accelerated depreciation, comparable sales, or established market values. In determining whether to approve such a request, the Department may consider any action taken, omission made, or unfortunate occurrence suffered by the Contractor with respect to the preservation of Project property withdrawn from appropriate use. (c) Financial Obligations to the Federal /State Government The Contractor agrees to remit to the Department the Federal and State interest in the fair market value of any Project property prematurely withdrawn from appropriate use. In turn, the Department shall be responsible to remit the Federal interest to the FTA. In the case of fire, casualty, or natural disaster, the Contractor may fulfill its obligations to remit the Federal and State interest by either: 1. Investing an amount equal to the remaining Federal and State Interest in like -kind property that is eligible for assistance within the scope of the Project that provided Federal /State assistance for the Project property prematurely withdrawn from use; or 2. Returning to the Department an amount equal to the remaining Federal and State interest in the withdrawn Project property. j. Insurance Proceeds If the Contractor receives insurance proceeds as a result of damage or destruction to the Project property, the Contractor agrees to: (1) Apply those insurance proceeds to the cost of replacing the damaged or destroyed Project property taken out of service, or (2) Return to the Department an amount equal to the remaining Federal and State interest in the damaged or destroyed Project property. k. Transportation - Hazardous Materials The Contractor agrees to comply with applicable requirements of U.S. Pipeline and Hazardous Materials Safety Administration regulations, "Shippers - General Requirements for Shipments and Packagings," 49 C.F.R. Part 173, in connection with the transportation of any hazardous materials. I. Misused or Damaged Prolect Property If any damage to Project property results from abuse or misuse occurring with the Contractor's knowledge and consent, the Contractor agrees to restore the Project property to its original condition or refund the value of the Federal and State interest in that property, as the Department may require. m. Responsibilities after Project Closeout The Contractor agrees that Project closeout by the Department will not change the Contractor's Project property management responsibilities as stated in Section 19 of this Agreement, and as may be set forth in Updated 3!01/11 Page 26 of 41 Attachment number 2 F -8 Page 160