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725-030-06 <br /> PUBLIC TRANSPORTATION <br /> 06/03 <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 , <br />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 shall indemnify, defend , and hold <br /> harmless the Department and all of its officers , agents , and employees from any claim , loss , damage , cost , charge , or <br /> expense arising out of any act, error, omission , or negligent act by the Agency, its agents , or employees , during the <br /> performance of the Agreement, except that neither the Agency, its agents , or its employees will be liable under this <br /> paragraph for any claim , loss , damage , cost , charge , or expense arising out of any act, error, omission , or negligent act <br /> by the Department or any of its officers , agents , or employees during the performance of the Agreement . <br /> When the Department receives a 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 <br /> Agency. The Agency and the Department will evaluate the claim and report their findings to each other within fourteen <br /> ( 14 ) working days and will jointly discuss options in defending the claim . After reviewing the claim , the Department will <br /> determine whether to require the participation of the Agency in the defense of the claim or to require that the Agency <br /> defend the Department in such claim as described in this section . The Department's failure to promptly notify the Agency <br /> of a claim shall not act as a waiver of any right herein to require the participation in or defense of the claim by Agency <br />. <br /> The Department and the Agency will each pay its own expenses for the evaluation , settlement negotiations , and trial , if <br /> any. However, if only one party participates in the defense of the claim at trial , that party is responsible for all expenses <br /> 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 /> Department's 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 paragraph <br /> 8 . 23 . <br /> 16 . 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 . <br />