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725-030-06
<br /> PLJBLJC TRIWSPJRTATM
<br /> MM
<br /> Page 9 of 12
<br /> 14.70 Use and Maintenance of Project Facilities and Equipment: The Agency agrees that the project facilities
<br /> and equipment will be used by the Agency to provide or support public transportation for the period of the useful life of
<br /> such facilities and equipment as determined in accordance with general accounting principles and approved by the
<br /> Department. The Agency further agrees to maintain the project facilities and equipment in good working order for the
<br /> useful life of said facilities or equipment.
<br /> 14.71 Property Records: The Agency agrees to maintain property records, conduct physical inventories
<br /> and develop control systems as required by 49 CFR Part 18 , when applicable .
<br /> 14.80 Disposal of Project Facilities or Equipment: If the Agency disposes of any project facility or equipment
<br /> during its useful life for any purpose except its replacement with like facility or equipment for public transportation use, the
<br /> Agency will comply with the terms of 49 CFR Part 18 relating to property management standards. The Agency agrees to
<br /> remit to the Department a proportional amount of the proceeds from the disposal of the facility or equipment. Said
<br /> proportional amount shall be determined on the basis of the ratio of the Department financing of the facility or equipment
<br /> as provided in this Agreement
<br /> 14.90 Contractual Indemnity: To the extent provided by law, the Agency and its consultants, contractors ,
<br /> subcontractors, agents and/or employees shall indemnify, defend, and hold harmless the Department and all of its
<br /> officers, agents, and employees from any claim, loss, damage, cost, charge, or expense arising out of any act, error,
<br /> omission, or negligent act by the Agency, its agents, contractors, subcontractors, consultants and/or employees during
<br /> the performance of the Agreement, except that neither the Agency, its agents, consultants, contractors, subcontractors
<br /> and/ or its employees will be liable under this paragraph for any claim, loss , damage, cost, charge, or expense arising out
<br /> of any act, error, omission , or negligent act by the Department or any of its officers , agents, or employees during the
<br /> performance of the Agreement.
<br /> When the Department receives notice of claim for damages that may have been caused by the Agency in the
<br /> performance of services required under this Agreement, the Department will immediately forward the claim to the Agency.
<br /> The Agency and the Department will evaluate the claim and report their findings to each other within fourteen (14) working
<br /> days and will jointly discuss options in defending the claim . After reviewing the claim, the Department will determine
<br /> whether to require the participation of the Agency in the defense of the claim or to require that the Agency defend the
<br /> Department in such claim as described in this section. The Departmenrs failure to promptly notify the Agency of a claim
<br /> shall not act as a waiver of any right herein to require the participation in or defense of the claim by Agency. The
<br /> Department and the Agency will each pay its own expenses for the evaluation, settlement negotiations, and trial, if any.
<br /> However, if only one party participates in the defense of the claim at trial , that party is responsible for all expenses at trial.
<br /> 15.00 Plans and Specifications: In the event that this Agreement involves the purchasing of capital equipment
<br /> or the constructing and equipping of facilities, the Agency shall submit to the Department for approval all appropriate
<br /> plans and specifications covering the project. The Department will review all plans and specifications and will issue to the
<br /> Agency written approval with any approved portions of the project and comments or recommendations concerning any
<br /> remainder of the project deemed appropriate. After resolution of these comments and recommendations to the
<br /> Departmenrs satisfaction, the Department will issue to the Agency written approval with said remainder of the project.
<br /> Failure to obtain this written approval shall be sufficient cause for nonpayment by the Department as provided in
<br /> Paragraph 8.23,
<br /> 18.00 Project Completion, Agency Certification: The Agency will certify in writing on or attached to the final
<br /> invoice, that the project was completed in accordance with applicable plans and specifications , is in place on the Agency
<br /> facility, that adequate title is in the Agency and that the project is accepted by the Agency as suitable for the intended
<br /> purpose.
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