1997-351 O =A CE O
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AND
SUBSEQUENT AMENDMENTS WITH THE U S DEPARTMENT OF TRANSPORTATION
FEDERAL TRANSIT ADMINISTRATION FOR PROJECT NO TX-90-X416, A GRANT
AUTHORIZED BY 49 U S C {}5307, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the Secreta_ty of Transportation is authonzed to award wants for a mass
transportation program of projects and budget, and
WHEREAS, the City has been advised by the U S Department of Transportation Federal
Transit Adrmmstration that its apphcatlon for an urbamzed grant authorized by 49 U S C §5307 has
been approved ,n the maxwnum amount of $369,451, and has requested the City to execute the Grant
Agreement, and
WHEREAS, the Grant Agreement, winch incorporates the Federal Transit Adrmmstratioffs
Master Agreement, will impose certain obhgations upon the applicant, such as the City of Denton,
including the prowslon by it of the local share of the project costs m the program, and
WHEREAS, the U S Department of Transportation requtres, m accordance w~th the
prowslons of Titles VI and VII of the Clwl Raghts Act of 1964, as amended, that the apphcant give an
assurance that it will comply w~th Title VI of the Civil R~ghts Act of 1964 and the Department of
Transportation requtrements thereunder, and
WHEREAS, it is the goal of the apphcant that disadvantaged busmass enterprises be utlhzed to
the fullest extent posmble in connection w~th the project, and that defimte procedures shall be
estabhshod and adrmmstered to ensure that disadvantaged businesses shall have mararnum construction
contracts, supphes, equipment, contracts, or consultant and other services, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION I That the City Manager is authorized to execute a grant and subsequent
amendments on behalf of the City of Denton, Texas, vath the U S Department of Transportation,
relating to Project No TX-90-X416 to md in the financing of capital and operating assistance projects
pursuant to 49 U S C §5307
SECTION II That the City Manager is authorized to execute and file an assurance or any
other document required by the U S Department of Transportation effectuating the purpose of T~tles
VI and VII of the Civil Paghts Act of 1964
SECTION III That the City Manager or bas designee is authorized to furmsh such adchtional
mformat~on, assurances, or certifications as the U S Department of Transportation may require in
connection with the program of pro~ects
SECTION IV That the City Manager is authorized to set forth and execute disadvantaged
business enterprise pohcles m connecUon w~th the program of projects and budget agreement requtred
by the Grant
SECTION V. That the City Manager is authorized to execute a grant agreement, in
substantially the form of the attached Grant Agreement, winch is incorporated as a part of thts
ordinance, along w~th any other agreement documents necessary to secure the grant on behalf of the
City of Denton, Texas w~th the U S Department of Transportation for md m the linanclng of the
capital, and operating assistance program of projects and budget, and to expend the necessary funds as
may be reqmred by the condition of the grant
SECTION VI That th~s ordinance shall become effective immediately upon as passage and
approval
PASSED AND APPROVED tbas thed~-'qt dayof ,,].~/~t~/'- ,1097
JACK MILLER, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
AP~0VED~AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
PAGE 2
UNITED STATES OF AMERICA
DEPARTMENT OF TRANSPORTATION
FEDERAL TRANSIT ADMINISTRATION
MASTER AGREEMENT
For Federal Transit Admm~stratmn Grants or Cooperative Agreements authorized by
49 U.S C. §§ ~.~01 .~ e.~.q, T~tle 2.~, U S C (H~ghways),
the National Capital Transportation Act o, 1969, as amended,
the Intermodal Surface Transportation Efficiency Act of 1991, as amended,
or other Federal enabling legislation
FTA MA(4)
October ,1, 1997
TABLE OF CONTENTS
Section 1 Definitions 6
Secnon 2 Project Implementation 8
a Effective Date 8
b General Reqmrements 9
c U S DOT Administrative Requirements 9
d Apphcatlon of Federal, State, and Local Laws and Regulations 9
e Reciplent's Primary Responslbdity to Comply With Federal Requirements 10
f Reciplent's Responsibility to Extend Federal Reqmrements to Other Entrees 11
g No Federal Government Obligations to Third Parties 1 I
h Changed Conditions of Performance (Including Litigation) 12
Section 3 Ethics 12
a Code of Ethics 12
b Debarment and Suspensmn 13
c Bonus or Commission 13
d Lobbying Restrictions 13
e Employee Pohtlcal Activity 13
f False or Fraudulent Statements or Claims 13
Section 4 Federal Financial Assistance 14
a "Net Project Cost" 14
b Other Basis for FTA Pamclpat~on 14
Section 5 Local Share 14
a Restrictions on the Source of Local Share 14
b Duty to Obtain the Local Share 14
c Calculation of Local Share 14
d Reduction of Local Share 1
Section 6 Appro,,ed Project Budget 15
Sectmn 7 Accounting Records 15
a Project Accounts 15
b Funds Received or Made A,,adable for the Project
c Documentation of Project Costs and Program Income 15
d Checks, Orders and Vouchers 16
Section 8 Reporting, Record Retentmn and Access 16
a Reports 16
b Record Retention 16
c Access to Records 16
d Project Closeout 16
Secnon 9 Payments 16
a Rec~pient's Request for Payment 17
b Payment b5 FTA 17
c Costs Reimbursed 19
d Bond Interest and Other Financing Costs 20
e Excluded Costs 20
f Federal Clmms Excess Payments and Disallowed Costs (Including Interest) 21
FTA MA(4) 10-1-97, Page 2
TABLE OF CONTENTS (CONTINUED)
Sectmn 9 g De-obhgat~on of Funds 22
Section 10 ProJect Complenon, Non-Federal Au&ts, Settlement and Closeout 22
a ProJect Completmn 22
b Audit of Remp~ents 22
c Funds Due the Federal Go,,ernment 22
d Project Closeout 22
Sectton l 1 Poght of the Federal Government to Terminate 23
Secnon 12 Preference for Umted States Products and Ser~lces 23
a Buy America 23
b Cargo Preference 23
c Fly America 23
Secnon 13 Relocanon and Land Acqms~non 24
Secnon 14 Smsm~c Safety 24
Section 15 Procurement 24
a Federal Standards 24
b Project Approval/Thtrd ParD Contract Appro,,al 24
c FTA Techmcal Rewew 24
d Exclusionary or D~scnm~nator~ Spec~ficanons 24
e Bus Seat Speoficanons 24
t Use of Federal Supply Schedules 24
g Preference for Recycled Products 24
h Geographic Restncnons 2q
~ ,krch~tectural Engineering Design or Related Serx~ces 2$
j Force Account 2s
k Award to Other Than the Lov~est B~dder 25
I Rolhng Stock 25
m Bonding 25
n Nonficanon of Federal Pamc~panon 26
Section 16 Leases 26
a Capaal Leases 26
b Leases ln~ol,4ng Cemficates ot Pamc~panon 26
c Cross-Border Leases 26
Secuon 17 Patent R~ghts 26
a General 26
b Federal R~ghts 26
Secnon 18 R~ghts m Data and Copyrights 27
a Definition 27
b Federal Restrictions 27
c Federal R~ghts m Data and Cop,,nghts 27
d Specml Federal Rights for Planmng Research and Development ProJects 27
e Hold Harmless 28
i' Restrmnons on Access to Patent R~ghts 28
g Apphcat~on to Materials Incorporated into the ProJect 28
FTA MAI4) 10-1-97, Page 3
TABLE OF CONTENTS (CONTINUED)
Section 19 Real Property, Equipment, and Supplies 28
a Use of Property 28
b General Federal Requirements 29
c Maintenance 29
d Records 29
e Encumbrance of Project Property 29
f Transfer of Project Property 29
g Disposmon of ProJect Property 30
h M~sused or Damaged Property 31
I Obligations After Project Closeout 31
Section 20 Insurance 31
a Insurance Dunng Construction 31
b Flood Hazards 31
Section 21 ProJect Management for Major Capital Projects 31
Section22 CiwlRaghts 32
a Prohibitions Against D~scnmmat~on ~n Federal Programs 32
b Equal Employment Opportunity 32
c D~sadvantaged Business Enterprise 33
d Access Requirements for Persons with D~sabflmes 33
Secnon 23 Employee Protections 34
a Construction Activities 34
b Activities Not Involving Construction 34
c State and Local Government Employees 35
d Transit Employee Protective Arrangements 35
Section 24 Planning and Private Enterprise 36
a FTA Requirements 36
b Infrastructure Investment 36
Section 25 Environmental Requirements 36
a Enwronmental Protection 36
b gar Quality 37
c Clean Water 37
d Use of Pubhc Lands 37
e Historic Preservation 37
f Mitigation of Adverse Environmental Effects 38
Section 26 Energy Conservation 38
Section 27 State Management and Momtormg Systems 38
Section 28 Charter Service Operations 38
Section 29 School Transportation Operanons 38
Section 30 Metric System 39
Section 31 Substance Abuse 39
a Drug Abuse 39
b Alcohol Abuse 39
FTA MA(4) 10-1-97, Page 4
TABLE OF CONTENTS (CONTINUED)
Section 32 State Safety Oversight of Rail Fixed Gmdeway Public Systems 39
Section 33 Special Requirements for Urbanized Area Formula ProJects 39
a Fares and Services 39
b Audit Requirements 40
c Half-Fare Requirements 40
d Procurement of an Associated Capital Maintenance Product 40
e Transit Security 40
f Restrictions on Use of Formula Assistance for Operations 40
g Report,ng Requirements 40
h Criminal Sanctions 40
Section 34 Special Requirements for Formula Projects for the Elderly and Persons with
Disabilities 40
a Eligible Subrecipients 41
b State Procedures 41
c Eligible Project Activities 41
d Transfer of Assets 41
Section 35 Special Requirements for Nonurbamzed Area Formula Projects 41
a State Procedures 41
b Eligible Project Activmes 41
c Transfer of Assets 41
d Restrictions on Use of Formula Assistance for Operations 42
e Interc~ty Transportation 42
Section 36 Special Requirements for Research De'~elopment, Demonstration, and Special
Studies ProJects 42
a ProJect Report 42
b ProJect Identification 42
Section 37 Special Requirements for a State Infrastructure Bank Project 42
a General Requirements 42
b Latest Requirements Apply 43
c Transit Account Limitations 43
d Limitations on Accessing Federal Assistance m Transit Accounts 43
Section 38 Disputes, Breaches, Defaults, or Other Lmgat~on 43
a Notification to FTA 43
b Federal Interest ,n Recovery 43
c Enforcement 43
d FTA Concurrence 43
e Alternative D~spute Resolution 43
Section 39 Amendments to the ProJect 43
Section 40 Electromc Data Interchange Technology 44
Section 41 Severablhty 44
FTA MA(4) 10-1-97, Page 5
UNITED STATES DEPARTMENT OF TRANSPORTATION
FEDERAL TRANSIT ADMINISTRATION
MASTER AGREEMENT
This Master Agreement encompasses standard terms and conditions governing the administration
of a Project supported with Federal financial assistance awarded by the Federal Transit
Administration (FTA) through a Grant Agreement or Cooperative Agreement with the Recipient
This Master Agreement applies to Federal financial assistance authorized by Federal transit laws
codified at 49 U S C §§ 5301 et ~?~q, Title 23, United States Code (Highways), the Intermodal
Surface Transportation Efficiency Act of 1991, as amended, or other Federal enabling laws
administered by FTA (Pub L No 103-272, July 5, 1994, codified the Federal Transit Act, as
amended, as chapter 53 of title 49 of the United States Code, thus requ~nng new citations for
Federal transit laws )
FTA and the Recipient understand and agree that not every requirement within this Master
Agreement will apply to every Recipient or every Project for which FTA provides financml
assistance through a Grant Agreement or Cooperative Agreement The nature of the Project and
the section of the statute authorizing financial assistance for the Project will determine which
requirements of this Master Agreement apply Any wolat~on of a requirement w~th~n this Master
Agreement applicable to the Rec~pient or its Project may result in penalties to the violating party,
requirements that do not apply will not be enforced
Thus, in consideration of the mutual covenants, promises, and representations hereto, FTA and
the Recipient agree as follows
Section 1 Definmons
a Application means the signed and dated request for Federal financial assistance, including any
amendment thereto, with all explanatory, supporting, and supplementary documents filed with and
accepted, or approved by the FTA by or on behalf of the Recipient
b Approval. Authorization. Concurrence. Waiver means a conscious written statement (whether
transmitted by paper or electronically) by an authorized official of the Federal Government
granting ~permisslon to the Recipient to perform or omit an action required pursuant to the Grant
Agreement or Cooperative Agreement, which action may not be performed or omitted without
such permission Unless clearly stated otherwise, an approval, authorization, concurrence, or
waiver permitting the performance or omission of a specific action does not constitute permission
to perform or omit other similar actions Oral permiss~on or interpretations have no legal force or
effect
FTA MA(4) 10-1-97, Page 6
c Approved Pr~ect Budget means the most recent statement, approved by the FTA, of the
costs of the Project, the maximum amount of Fedeial assistance for which the Recipient is
currently eligible, the specific tasks (including specified contingencies) covered, and the estimated
cost of each task
d Cooperative Agreement means the instrument by which FTA awards Federal assistance to a
specific Rec,plent to support a particular Project, and in which FTA takes an active role or retains
substantml control, in accordance with 31 U S C § 6305 The Cooperative Agreement consists
of the FTA Award establishing the specific parameters of the Project, an Execution statement
signed by the Recipient, and may include Special Conditions or Special Requirements, in addition,
this Master Agreement is incorporated by reference and made part of the Cooperative Agreement
e Federal Government means the United States of America and any execut,ve department or
agency thereof
f F~deral Transit Admm~stration is the current designation for the former Urban Mass
Transportation Adm~mstrat~on Any reference m any law, map, regulation, document, paper, or
other record of the United States to the Urban Mass Transportation Administration shall be
deemed a reference to the Federal Transit Admlmstration
g Federal Transit Administrator is the current designation for the former Urban Mass
Transportation Administrator Any reference m any law, map, regulation, document, paper, or
other record of the United States to the Urban Mass Transportation Administrator shall be
deemed a reference to the Federal Transit Administrator
h FTA is the acronym for the Federal Transit Administration one of the operating
admimstrations of the U S Department of Transportation (U S DOT) FTA replaces the
acronym UMTA
i FTA Direct~ve includes any FTA c~rcular, not,ce, order, or guidance providing Information
about FTA's programs application processing procedures, and Project management guidelines
In addition to FTA d~rect~ves certain U S DOT directives also apply to the Project
.I Grant Agreement means the instrument by which FTA awards Federal assistance to a specific
Recipient to support a particular Project and in which FTA does not take an active role or retain
substantial control m accordance with 31 U S C ~ 6304 The Grant Agreement consists of the
FTA Award establishing the specific parameters of the Project, an Execution section signed by the
Recipient and may include Special Con&t~ons or Specml Requirements, in addition, this Master
Agreement is incorporated by reference and made part of the Grant Agreement
k Local Government includes a public transit authority as well as a county, munlcipahty, city,
town, township, special d~stnct, council of governments (whether or not incorporated as a private
nonprofit orgamzat~on under state law) regional or interstate government entity, or any agency or
instrumentality thereof
FTA MA(4) I 0- 1-97 Page 7
I Pro_l~ct means the task or tasks, hsted m the Approved Project Budget, and any modifications
stated inlthe Conditions to the Grant Agreement or Cooperative Agreement apphcable to the
Project For the formula assistance programs for urbanized areas, for the elderly and persons w~th
d~sabd~t~es, and nonurbamzed areas, 49 U S C §§ 5307, 5310, and 5311, respectively, the term
"Project" encompasses both "Program" and "each Project w~th~n the Program," as the context
may require, to effectuate the requirements of the Grant Agreement or Cooperative Agreement
m Recipient means any entity that receives Federal assistance d~rectly from FTA to accomphsh
the Project The term "Rec~ptent" includes each FTA "Grantee" as well as each FTA Recipient of
a Cooperative Agreement Except as FTA permits otherwise, the Recipient is the entire legal
entity even though only a single orgamzat~on w~thln that entity is designated as the Recipient m
the Grant Agreement or Cooperative Agreement
n Secretary_ means the U S DOT Secretary, including his or her duly authorized designee
o Subagreement means an agreement by which a Recipient awards financial assistance derived
from FTA to the subrec~plent as defined ln Subsectlon 1 p ofthls Master Agreement below The
term "subagreement" also ~ncludes the term "subgrant," but does not include "third party
contract" or "third party subcontract"
p Subrec~pient means any entity that receives Federal assistance awarded by an FTA Recipient,
rather than FTA directly The term "subrec~pient" also includes the term "subgrantee," but does
not ~nclude "third party contractor" or "third party subcontractor"
q Third Party Contract means a contract or purchase order awarded by the Recipient or
subrec~plent to a vendor or contractor, financed m whole or m pan w~th Federal assistance
awarded by FTA
r Third Party Subcontract means a subcontract at any t~er entered into by the third party
contractor or third party subcontractor, financed m whole or in part with Federal asststance
originally derived from FTA
s Transit means transportation by a conveyance, either publicly or privately owned, that
provides regular and continuing general or special pubhc transportation to the pubhc, but does not
include school bus, charter, or s~ghtseemg transportation The term "transit" also includes "mass
transportation" and "public transportation"
t U S DOT ~s the acronym for the United States Department of Transportation, including its
operating administrations
Section 2 Project Implementation
a Effective Date The effective date of the Grant Agreement or Cooperative Agreement is the
Obhgat~on Date on which the FTA's Authorized Official signs the FTA Award m the Grant
FTA MA(4) 10-1-97, Page 8
Agreement or Cooperative Agreement The effective date of any Amendment Is the Obligation
Date on which the FTA's Authorized Official s~gns the FTA Award for that Amendment
b General Requirements The Recipient agrees to maintain or acquire sufficient legal, financial,
and technical capacity to undertake and complete the Project, and provide for the use of Project
faeditles and equipment, m accordance with the terms of the Grant Agreement or Cooperative
Agreement, the Approved Project Budget, the Project schedules, the Reclplent's annual
certifications and assurances to FTA, and all applicable Federal laws, regulations, directives, and
published policies The "Project Description" in the FTA Award section of the Grant Agreement
or Cooperative Agreement describes the Project or Projects to be funded by that Grant
Agreement or Cooperative Agreement The Federal law or laws authorizing Project approval
identified in the FTA Award secnon of the Grant Agreement or Cooperative Agreement control
Project implementation
c U S DOT 'dmmlstrat~ve Reqmrements The Recipient acknowledges that Federal
administrative requirements d~ffer for the various types of ent~tles receiving Federal assistance as
follows
(1) A Recipient that ~s a state, local or Indian tribal government agrees to comply with
U S DOT regulations, "Uniform Administrative Requirements for Grants and Cooperative
Agreements to State and Local Governments," 49 C F R Part 18
(2) A Reop~ent that ~s an restitution of h~gher education or a nonprofit organization agrees to
comply with U S DOT regulations "Umform Admlnlstran~,e Reqmrements for Grants and
Agreements w~th lnsntut~ons of H~gher Education Hospitals and Other Non-profit
Organizations," 49 C F R Part 19
(3) A Recipient that is a private for-profit orgamzat~on agrees to comply with the "Uniform
Administrative Reqmrements for Grants and Agreements with Institutions of Higher Education,
Hospitals, and Other Non-profit Orgamzat~ons," 49 C F R Part 19
d Application of Federal, State, and Local Laws and Regulations
(1) Federal Laws and Regulatmns The Recipient acknowledges that Federal laws,
regulations, pohcles, and related adm~mstranve pracnces applicable to the Project on the date the
authorized FTA official signs the Grant Agreement or Cooperative Agreement may be modified
from time to time The Recipient agrees that the most recent of such Federal requirements will
govern the admlmstratlon of the ProJect at any partxcular t~me, except if FTA issues a written
determination otherwise Such written determlnanon m~ght take the form ora Special Condition
or Requirement w~thm the Grant Agreement or Cooperative Agreement or a letter signed by the
Federal Transit Administrator, the language of which modifies or otherwise conditions the text of
a particular provision of this Master Agreement Specifically, new Federal laws, regulations,
pOhcles, and administrative practices may be promulgated after the date when the Recipient
executes the Grant Agreement or Cooperative Agreement, and may, by their terms, apply to that
Grant Agreement or Cooperative Agreement To achieve comphance w~th changing Federal
FTA MA(4) I 0-1-97, Page 9
requirements, the Recipient agrees to Include notice m each agreement with each subreclplent and
with each third party contractor under the Project that Federal requirements may change and the
changed requirements will apply to the project as requ;red, unless the Federal Government
determines otherwise All standards or limits within this Master Agreement to be observed in the
performance of the Project are minimum requirements, unless modified by FTA The Master
Agreement has no expiration date and remains in el~ect even If certain provisions thereln are
modified or superseded by subsequent Federal requirements
(2) St~t¢ or Terntonal Law and Local Law Except to the extent that a Federal statute or
regulation preempts state or temtonal law, nothing in the Grant Agreement or Cooperative
Agreement shall require the Recipient to observe or enforce comphance with any provision
thereof, perform any other act, or do any other thing in contravention of any state, territorial law
or local law, therefore, if any of the provisions of the Grant Agreement or Cooperative
Agreement violate any state, temtorlal, or local law, or ifcomphance with the provisions of the
Grant Agreement or Cooperative Agreement would require the Recipient to violate any state,
temtonal, or local law, the Recipient agrees to notify FTA immediately in writing to permit FTA
and the Recipient to make appropriate and arrangements to proceed with the Project as quickly as
possible
e Rec!plent's Primary_ Responslb~hty to Comply w~th Federal Requirements Irrespective of
participation of other parties in the Project, the Recipient continues to remain responsible to FTA
for compliance with all Federal requirements imposed by Federal statute, regulations, executive
orders, directives, published policies, this Master Agreement and the Grant Agreement or
Cooperative Agreement for the ProJect --
(1) iSlgmficant Participation by a Third Party Contractor Although the Recipient may enter
into a third party contract in which the third party contractor agrees to provide property or
services m support of the project, or even carry out Project activities normally performed by the
Recipient (such as in a turnkey contract), the Recipient continues to remain responsible to FTA
for compliance
(2) Significant Participation by a Subreoplent Although the Recipient may delegate any or
almost all project responsibilities to one or more subrec~p~ents, the Recipient continues to remain
responsible to FTA for comphance
(3) Exceptions The Recipient, however, ~s reheved ofcomphance with Federal
responsibilities in the following two circumstances
i(a) when the Designated Recipient o£ urbamzed area formula funds authorized for
49 U S C § 5307 has entered into a Supplemental Agreement with FTA and a grantee covering
the Project, the Designated Recipient is not responsible to FTA for comphance with Federal
requirements in connection with the Project or
~(b) when the Federal Government, through appropriate official action, reheves the
Recipient of a portion o~'or all responslbihty to the Federal Government
FTA MA(4) 10-1-97, Page 10
f Remp~ent's Responslb,hty to Extend Federal Reqmrements to Other Entities
(1) Entities Affected Only signatones to the Grant Agreement or Cooperative Agreement
for the Project are part,es to that agreement To achieve compliance with certain Federal laws,
regulations, or d~rectlves, however, other entities participating m the Project, such as
subrectplents and third party contractors wdl necessarily be affected Accordingly, the Rec,ptent
agrees to take appropriate measures necessary to ensure comphance by all entities partmlpat~ng m
the Project with those Federal reqmrements applicable to their performance
(2) Documents Affected The extent to which a specific Federal requtrement affects entities
participating m the Project is determined by the provtsions of the Federal statutes, regulations, and
dtrectives establishing that Federal reqmrement, as well as the prowslons of 49 C F R Part 18 or
49 C F R Part 19 Accordingly, the Rec~pient agrees to include provisions adequate to ensure
comphance of participating entities w~th Federal requirements, and to require its third party
contractors and subreciplents to include in each lower tier subcontract and subagreement financed
in whole or in part w~th financial assistance provided by FTA under the Grant Agreement or
Cooperative Agreement provisions adequate to impose apphcable Federal requtrements Below
are addmonal requirements
(a) Third Party Contracts Because Project activities performed by a thtrd party
contractor must be camed out ~n accordance w~th Federal reqmrements, the Recipient agrees to
include appropriate clauses in each third party contract stating the third party contractor's
respons~bd~nes under Federal law, regulatmn, or d~recnve, including any necessary provisions
requmng the third party contractor to extend apphcable reqmrements to ~ts sul:contractors to the
lowest her necessary When the third party contract reqmres the third party contractor to
undertake primary respons~btlmes for the Project usually performed by the Recipient directly, the
requirements apphcable to the Recipient imposed by this Master Agreement and the Grant
Agreement or Cooperative Agreement for the Project must be included m that third party contract
and extended throughout each ncr to the extent appropriate Additmnal guidance pertaining to
third party contracting is contained in the FTA Best Practices Procurement Mgrt~l~] Be aware,
however, that the FTA Best Practices Procurement Manual focuses mainly on the procurement
process and may omit certmn Federal requirements applicable to the work to be performed
(b) Subagreements Because ProJect act~vmes performed by a subrecipient must be
carried out in accordance w~th Federal reqmrements, the Recipient agrees to include appropriate
clauses in each subagreement stating the subrec~p~ent's responsibflmes under Federal law,
regulatmn, or d~recnve, including any necessary prows~ons reqmrmg the subrecipient to impose
applicable Federal reqmrements on ent~t~es to the lowest tier necessary When the subagreement
requires the subreclptent to undertake primary respons~bdales for the Project usually performed by
the Recipient directly, the reqmrements apphcable to the Recipient tmposed by this Master
Agreement and the Grant Agreement or Cooperative Agreement for the Project must be included
~n that subagreement and extended throughout each t~er to the extent appropriate
g No Federal Government Obhgat~ons to Third Part~es The Recipient agrees that, absent the
Federal Government's express written consent, the Federal Government shall not be subject to any
FTA MA(4) I 0-1-97, Page l I
obhgattoOs or habtlmes to any subreciplent, any third party contractor, or any other person not a
party to the Grant Agreement or Cooperative Agreement ,n connection with the performance of
the Project Notwithstanding any concurrence prowded by the Federal Government tn or
approval~ of any sohc~tatlon, subagreement, or third party contract, the Federal Government
contmue~ to have no obhgatlons or habthties to any party, ~ncludmg the subreclp~ent and third
party coatractor
h Changed Condmons of Performance (Including Lmgat~on) The Recipient agrees to notify
FTA ~mmed~ately of any change m local law, condmons (such as ~ts legal, financial, or techmcal
capacity), or any other event that may s~gmficantly affect the Rectplent's ab,l,ty to perform the
Project m accordance wtth the terms of'the Grant Agreement or Cooperative Agreement In
addition,I the Rec~p;ent agrees to not~fy FTA ~mmedlately of any decision pertaining to the
Reclpient's conduct of lmgat~on that may affect the Federal Government's mterests in the Project
or the Federal Government's admm~stration or enforcement of Federal laws or regulations
Before the Recipient may name the Federal Government as a party to litigation for any reason, in
any forum, the Recip~ent agrees to reform FTA
Sectton 3 Ethics
a Code of Ethics The Recipient agrees to maintain a written code or standards of conduct that
shall govern the performance or,ts officers, employees, board members, or agents engaged m the
award and admimstrat~on of third party contracts or subagreements supported by Federal
assistance The code or standards shall provide that the Rec~plent's officers, employees, board
member~, or agents may neither sohe~t nor accept gratumes, favors, or anything of monetary
value from any present or potential contractor or subrec~p~ent The Rec~p;ent may set minimum
rules where the financial interest ~s not substantial, or the g~t~ ~s an unsohc~ted ~tem of nominal
intrinsic ~value As permitted by state or local law or regulat;ons, the code or standards shall
include penalties, sanctions, or other d~sc~phnary acttons for violations by the Rectplent's officers,
employe~s, board members, or their agents, or by contractors or subrec~p~ents or their agents
(1) !Personal Conflicts of Interest The Rec~plent's code or standards of conduct shall
prohibit ithe Rec~p~ent's employees, officers, board members or agents from participating m the
selection, award, or administration of a third party contract or subagreement supported by Federal
funds ~f a real or apparent conflict oflnterest would be revolved Such a conflict would arise
when any of the following part,es has a financial or other interest m the entity selected for award
(a) an employee, officer, board member, or agent, (b) any member of his or her immediate family,
(c) his or her partner, or (d) an orgamzat~on that employs, or intends to employ, any of the above
(2) Orc, amzattonal Confl;cts of Interest The Rec~p~ent's code or standards of conduct must
include procedures for ~dent~fymg and preventing real and apparent organizational confl ets of
mterest An orgamzat~onal conflict of interest exists when the nature of the work to be
performed under a proposed third party contract or subagreement may, w~thout some restrictions
on future act~vmes, result in an unfair competitive advantage to the third party contractor or
subrec~p~ent or ~mpatr ;ts object,wry m performing the contract work
FTA MA(4) 10-1-97, Page 12
b Debarment and Suspension The Recipient agrees to comply with the reqmrements of
Executive Orders Nos 12549 and 12689~ "Debarment and Suspension," 31 U S C § 6101 note,
and U S DOT regulations on Debarment and Suspension at 49 C F R Part 29
c Bonus or Comm~ss,on The Rec,p,ent affirms that ~t has not prod, and agrees not to pay, any
bonus or commission to ob,mn approval of ~ts Federal assistance apphcatlon for the Project
d Lobbying Restnct,ons The Rec,p,ent agrees to
(1) Refrain from using Federal ass,stance funds to support Iobby,ng, and
(2) Comply with apphcable reqmrements of 31 U S C § 1352 and U S DOT regulat,ons,
"New Restncnons on Lobbying," 49 C F R Part 20, mod,fled as necessary by section 10(b) of
the Lobbying D~sclosure Act of 1995 (which amends 31 U S C § 1352)
e Employee Poht~cal Acuvny To the extent apphcable, 5 U S C §§ 1501 through 1508 (Hatch
Act) and Office of Personnel Management regular,ohs, "Polmcal Acuv, ty of State or Local
Officers or Employees," 5 C F R Part 151, apply to state and local agencies and their officers and
employees The Hatch Act restricts the polmcal acUwty of an individual prmc,pally employed by
a state or local execunve agency m connect,on w~th a program financed m whole or in part by a
Federal loan, grant, or cooperative agreement However, the Hatch Act does not apply to a
nonsuperv,sory employee of a transit system (or of any other agency or enmy performing related
funcUons) receiving FTA assistance to whom the Hatch Act does not otherw, se apply
f False or Fraudulent Statements and Claims The Recipient acknowledges and agrees as
follows
(1) The Recipient acknowledges that the requirements of the Program Fraud C,wl Remedies
Act of 1986, as amended, 31 U S C §§ 3801 e_t se~q and U S DOT regulat,ons, "Program Fraud
C,vil Remedies," 49 C F R Part 31, apply to ~ts actions pertmnmg to the Project Accordingly, by
s~gmng the Grant Agreement or Coot~erat~ve Agreement, the Recipient certifies or affirms the
truthfulness and accuracy of any statement ~t has made ,t makes, or ~t may make pertam,ng to the
Project covered by the Grant Agreement or Cooperanve Agreement In addmon to other
penalues that may be apphcable, the Rec,p,ent also acknowledges that ,f,t makes a false,
fict,nous, or fraudulent claim, statement, subm,ss~on, or cert~ficanon, the Federal Government
reserves the right to ,repose the penalties of the Program Fraud C,wl Reined,es Act of 1986, as
amended on the Recipient to the extent the Federal Government deems appropriate
(2) The Recipient also acknowledges that ff~t makes a false ficnt~ous, or fraudulent claim,
statement, submission, or certification to the Federal Government tn connecnon w~th an urban,zed
area formula project financed w,th Federal assistance authorized by 49 U S C § 5307, the
Government reserves the right to ,repose on the Rec,p~ent the penalnes of 18 U S C § 1001 and
49 U S C § 5307(n)(1), to the extent the Federal Government deems appropriate
FTA MA(4) 10-1-97, Page 13
Section 4 Federal Financial Assistance
The Recipient acknowledges and agrees that FTA will provide Federal financial assistance
admlmstered by FTA for the ProJect equal to the smallest of the following amounts (a) the
maximum amount permitted by Federal law and regulatmns, (b) the amount designated m the
Grant Agreement or Cooperative Agreement as "Maximum FTA Amount Approved," or (e) the
amount calculated in accordance with the "Maximum Percentage(s) of FTA Parttclpatton," shown
on the Grant Agreement or Cooperative Agreement FTA's obhgat~on to make Federal assistance
paymenl~s ts hmited to the amounts ~ncluded m the Approved Project Budget The basis upon
which FTA determines the "Maximum FTA Amount Approved" ts ~denttfied as the "Estimated
Ehg~ble ProJect Cost" and ~s included in the Grant Agreement and the Cooperative Agreement
a "Net Pro_lect Cost" For any Project required by FTA or Federal law to be financed on the
basis oflts "Net Project Cost" as defined within 49 U S C § 5302, FTA intends to assist the
Recipient in financmg that portion of the Project that cannot reasonably be financed from the
Reciplerlt's revenues, i e, "Net Project Cost" of the Project Accordingly, the amount listed as
"Estimated Eligible ProJect Cost" will be the "Estimated Net Project Cost" on whmh FTA wdl
calculat~ the amount of Federal assistance to award for the ProJect
b Other Basis for FTA Participation For any project not reqmred by FTA or Federal law to be
financed on the basis of its "Net ProJect Cost" as defined w~thln 49 U S C § 5302, FTA intends to
assist the Recipient tn financing all or pan of the cost of the Project Accordingly, the amount
hsted as "Estimated Ehg~ble Project Cost" ~dl be the bas~s on whmh FTA will calculate the
amount of Federal assistance to award for the Project
Secnon'5 Local Share
If FTA requires the Recipient to provide a local share for the Project financed under the Grant
Agreement or Cooperative Agreement, the Rec~pmnt agrees as follows
a Restrictions on the Source of Local Share Except as permitted otherwise by Federal law, the
Rectpleht agrees to provide sufficient funds or approved m-kind resources that, together with the
Federal 'financial assistance awarded, will assure payment of the actual cost of each project
covered by the Grant Agreement or Cooperative Agreement The Recipient agrees that no funds
provided will be derived from receipts from using the Project fac~httes or eqmpment, revenues of
the transit system in which such facilities or eqmpment are used or other Federal funds
b Duty to Obtain Local Share Except as otherwise approved by FTA, the Recipient agrees to
complete all proceedings necessary to prowde the local share of the Project costs at or before the
time thOse funds are needed to meet Project expenses
c Calgulation of Local Share Ihe Recipient agrees that the local share will be calculated on a
proJect,by-project bas~s for each project covered by the Grant Agreement or Cooperative
Agreement
FTA MA(4) 10-1-97, Page 14
d Reduction of Local Share The Recipient further agrees that a refund or reduction of the local
share may be made only ~f a refund of a propomonal amount of the Federal financial assistance is
made to the Federal Government at the same t~me, unless the Federal Government expressly
approves otherwise m writing
Section 6 Approved Project Budget
The Recipient agrees to prepare project budget which, upon approval by FTA, is referred to as
the Approved Project Budget Any amendment awarding additional Federal financial assistance
requires a new Approved Project Budget The Approved ProJect Budget may also be revised as
permitted by and in conformance with applicable Federal requirements An amendment to the
Approved ProJect Budget shall reqmre the issuance of a formal amendment to the Grant
Agreement or Cooperative Agreement, except that a re-allocation of funds among budget items
or fiscal years that does not increase the total amount of the Federal financial assistance awarded
may be made in accordance with applicable Federal circulars and regulations The Recipient
agrees to incur obllganons and make disbursements of ProJect funds only as authorized m the
latest Approved ProJect Budget The latest Approved ProJect Budget is incorporated herein by
reference and made part the Grant Agreement or Cooperative Agreement for the Project
Section 7 Accounting Records
a Project Accounts The Recipient agrees to estabhsh and maintain for the Project either a
separate set of accounts, or separate accounts within the framework of an established accounting
system that can be ~dennfied with the ProJect m accordance with 49 C F R § 18 20 or 49 C F R
§ 19 21, whichever ~s apphcable The Recipient agrees that all checks, payrolls, invoices,
contracts, vouchers, orders or other accounting documents related in whole or in part to the
Project shall be clearly ~dent~fied, readily accessible and avadable to FTA upon ~ts request, and, to
the extent feasible kept separate from documents not related to the ProJect
b Funds Received or Made Available for the Project The Recipient agrees to record in the
ProJect Account, and deposit ~n a financial mst~tut~on, all ProJect payments it receives from the
Federal Government pursuant to the Grant Agreement or Cooperative Agreement and all other
funds provided for, accruing to, or otherwise received on account of the ProJect (proJect funds) in
accordance with apphcable prows~ons of 49 C F R § 18 21 or 49 C F R § 19 22 The Recipient
is encouraged to use financial ~nsntut~ons owned at least 50 percent by minority group members
c Documentation of Project Costs and Program Income All costs charged to the ProJect,
including any approved services contributed by the Recip~ent or others, shall be supported by
properly executed payrolls, time records mvmces contracts, or vouchers describing in detail the
nature and propriety of the charges The Recipient also agrees to maintain accurate records of all
program income derived from ~mplementat~on of the Project, th~s requirement, however, does not
apply to certain Rec~pient income determined by FTA to be exempt from the general program
income requirements
FTAMAt4) 10-1-97, Page 15
d Ch~cks. Orders. and Vouchers The Recipient agrees to refrain from drawing checks or
orders for goods or services to be charged against the ProJect Account untd ~t has on file mtts
office a properly s~gned voucher describing m proper detad the purpose of the expenditure
Section 8 Reporting, Rgcorcl Retentton. and Access
a Reports The Recipient agrees as follows
(1) General Rea_u~rements The Recipient agrees to provide to FTA those reports required by
U S DO~'s adnumstrat~ve rules for grants and cooperative agreements and any other reports the
Federal Government may require
(2) Format Rea_u~rements All reports and other documents or mformat~on ~ntended for
pubhc avatlabd~ty developed under the Project and required to be submitted to FTA must be
prepared and submitted tn both the electromc and paper formats that FTA specifies FTA
reserves the right to require records to be submitted m other forms
b Record Retention The Recipient agrees that, during the course of the Project and for three
years thereat~er, ~t wdl maintain intact and readily accessible all data, documents, reports, records,
contract~, and supporting materials relating to the Project as the Federal Government may reqmre
for the Project
c Access to Records Upon request, the Recipient agrees to permtt and require ~ts
Subrec~pients to permit the Secretary of Transportatton and the Comptroller General of the
Umted States, or their authorized representat;ves, to ~nspect all Project work, materials, payrolls,
and other' data, and to audit the books, records, and accounts of the Rec~p,ent and ~ts contractors
pertaining to the Project In accordance w;th 49 U S C § 5325(a), the Rec;p~ent agrees to
reqmre each third party contractor whose contract award is not based on competmve bMdmg
procedur~es as defined by the Secretary of Transportation to permit the Secretary of
Transportation and the Comptroller General of the Umted States, or their duly authorized
representatives, to ~nspect all work, materials, payrolls, and other data and records mvolv~ng that
thtrd par;y contract and to audit the books, records and accounts ~nvolvmg that thtrd party
contract as ~t affects the ProJect
d Project Closeout ProJect closeout does not alter these reporting and record retention
reqmrements
Sectton 9 Payments
The Reclp~ent agrees that ~t will not seek payment from FTA for ProJect costs untd ~t has first
executed the Grant Agreement or Cooperative Agreement prowdmg Federal assistance for the
Project
FTA MA{4} 10-1-97, Page 16
a Rectpient's Request for Payment FTA will respond to the Rec~plent's request for the Federal
share payment of its allowable costs in accordance w~th the procedures described m this Section
To receive a Federal assistance payment, the Recipient must
(1) Have demonstrated or certified that It will prowde adequate local funds, when combined
w~th Federal payments, to cover all costs to be incurred for the Project Unless the Federal
Government has expressly permitted the Recipient to defer prowsion of the local share, a
Recipient required by Federal statute or the Grant Agreement or Cooperative Agreement to
prowde a local share agrees to refrain from
(a) Requesting or obtaining Federal funds exceeding the amount justified by the local
share previously prowded, and
(b) Taking any action that would cause the proportion of Federal funds made available
to the ProJect at any time to exceed the percentage authorized by the Grant Agreement or
Cooperative Agreement,
(2) Have submitted to FTA all financial and progress reports required to date by this Master
Agreement, and
(3) Have identified the source(s) of financial assistance provided for the Project from which
the payment is to be derived
b Payment by FTA The Rec,pient understands and agrees that FTA will make all payments by
the Automated Clearing House (ACH) method of payment regardless of the amount involved
(1) Electromc Clearing House Operation Payments If payment is made through the
Electromc Clearinghouse Operation (ECHO) by means of an ECHO Control Number, the
Recipient agrees to comply with FTA's ECHO requirements established pursuant to U S
Department of the Treasury Circular 1075, Part 205, "Withdrawal of Cash from the Treasury for
Advances Under Federal Grants and Other Programs," the "Guidelines for Disbursements"
included m the ECHO System Operations Manual used for FTA projects, and the requirements of
this Subsection 9 b(l) The Recipient also agrees that If It fails to comply with the following
requirements of this Subsecnon 9 b(1), the Federal Government may revoke the unexpended
portion of Federal assistance awarded for the Project
(a) The Recipient may draw down cash only when actually needed for nnmediate
disbursement reqmred for Project purposes Unless prowded otherwise by Federal law or
regulation, the Recipient agrees to expend all Federal funds obtained under the Project for Project
purposes no later than three (3) days after ~t receives those funds If the Recipient fails to expend
those Federal assistance funds w~thm three (3) days of their receipt or return the funds to FTA
within a reasonable period, or fails to estabhsh procedures to mimmlze the time elapsing between
cash advances and the disbursement the Federal Government may revoke or temporarily suspend
the Reclp~ent's ECHO Control Number and the Reclp~ent's access to the ECHO System In
addition to revocation or suspension of the Rec~p~ent's ECHO Control Number, a Rec~pient's
FTA MA(4) 10-1-97, Page 17
fadure to adhere to these requirements may result m other remedies or penalties authorized by
Federal law or regulation
(b) The Rectp~ent agrees to report ~ts cash d~sbursements and balances ~n a t~mely
manner m comphance w~th Federal requirements
(c) The Recipient agrees to prowde for control and accountabd~ty for all project funds
cons~sterlt with Federal requirements and procedures for use of the ECHO system
(d) The Recipient may not draw down funds for a project m an amount exceeding the
sum obligated by the Federal Government or the current avadable balance for that Project
(e) The Rec~pient agrees to draw down funds only for ehg~ble Project costs
(f) The Rec~ptent agrees to refram from drawing down Federal assistance funds before
needed for d~sbursement
(g) The Recipient agrees to nott~ the appropriate Regional or Program Offce when a
single dr~w down wdl exceed $50 mdhon
(h) The Rec~p~em agrees to remit ~nterest to the Federal Government on any Federal
assistance prematurely drawn down, ~rrespect~ve of whether that Federal assistance has been
deposited m an interest-bearing account The Recipient agrees that a debt for any premature draw
down or'Federal assistance funds does not quahfy as a "clatm" covered by the Debt Collection Act
of 1982, as amended, 31 U S C §§ 3701 through 3720, and that the interest provisions ofth~s
Subsection 9 b(1)(h) of th~s Master Agreement, rather than the ~nterest prows~ons of the Debt
Collectt6n Act of 1982, as amended, wdl determine the amount of interest due on any debt for
Federal assistance prematurely drawn down The Recipient agrees that the amount of interest due
depends on whether or not the Recipient ~s a state or state ~nstrumentahty
_1 A Recipient that is also a state or state ~nstrumentahty agrees to remit interest to
the Federal Government calculated as required by U S Department of Treasury regulattops,
"Rules and Procedures for Funds Transfers" 31 C F R Part 205, which ~mplements section 5(b)
of the Cash Management Improvement Act of 1990, as amended 31 U S C § 6503(b) Thus, a
Recipient that also ~s a state or a state mstrumentahty agrees that ~nterest on any debt ~t may recur
for Federal assistance prematurely drawn down does not quahfy for the interest exemption of the
Debt Collection Act of 1982, as amended, 3I U S C §h 3701 and 3717
2_ A Recipient that Is not a state or state ~nstrumental~ty agrees to remtt
prejudgment interest on the debt for any premature draw down of Federal assistance, to the extent
permitted under common law, cons;stent with U S General Accounting Office (U S GAO)/U S
Department of Justice (U S DOJ) regulations permitting interest on debts at 4 C F R Part 102,
currently 4 C F R § 102 13(0(2) Accordingly, a Recipient that also ~s e~ther a local government
or an mstrumentabty of a local government agrees that interest on any debt ~t may recur for
Federal assistance prematurely drawn down does not quahfy for the interest exemption for umts
FTA MA(4) 10-1-97, Page 18
of general local government ~n the Debt Collectton Act of 1982, as amended, 31 U S C §§ 3701
and 3717
(2) Reqms~t~on If the reqms~t~on method of payment is used, the Recipient understands and
agrees as follows
(a) Recipient Respons~bdmes The Recipient agrees to
1 Complete and submit the "Payment Information Form - ECHO-ACH Payment
System," Revised 10/92, to FTA's Accounting Dlws~on
2_ Complete and submit Standard Form 270, "Request for Advance or
Reimbursement," to the designated FTA office
(bi F fA Respons~bdmes Upon receipt of a payment request and adequate
accompanying mformat~on, FTA w~ll authorize payment by d~rect depom, prowded the Recipient
~s m comphance w~th the obhgat~ons of the Grant Agreement or Cooperative Agreement, has
satisfied the FTA that ~t needs the requested Federal funds dunng the reqms~t~on period, and ~s
making adequate and t~mely progress toward ProJect completion When all these conditions are
met, the Government may retmburse the Rec~p~ent's apparent allowable costs recurred (or to be
recurred dunng the reqmsmon period) up to the maximum amount of Federal funds payable
through the Federal fiscal year of that reqmsmon as included ~n the Approved Project Budget
c Costs Reimbursed The Rectp~ent understands and agrees that Project costs ehg~ble for
Federal part~c~patmn must comply w~th all the following reqmrements
(1) Conform w~th the ProJect Description, the Approved Project Budget, and alt other terms
of the Grant Agreement or Cooperanve Agreement
(2) Are necessary m order to accomphsh the Project
(3) Are reasonable for the goods or ser~mes purchased,
(4) Are actual net costs to the Recipient (~ e, the price prod minus any refunds, rebates, or
other ~tems of value received by the Recipient that have the effect of reducing the cost actually
recurred, excluding program ~ncome)~
(5) Are ~ncurred for work performed after the date of the Grant Agreement or Cooperative
Agreement, unless specific authorization from the Federal Government to the contrary ~s received,
(6) Are sat~sfactordy documented
(7) Are treated consistently m accordance w~th accounting principles and procedures
approved by the Federal Government for the Recipient, and wah accounting principles and
procedures approved by the Recipient tot ~ts contractors
FTA MA{4) 10-1-97, Page 19
(8) Are eligible under Federal law, regulation, or guidehnes for Federal partic~pation, and
(9) Unless permitted otherwise by Federal statute or regulation, conform w~th provisions of
the applicable OMB Circular or Federal regulation hsted below
(a) For a Recipient that is a state, local, or Indian tribal government, the standards of
OMB Circular A-87, Revised, "Cost Principles for State and Local Governments," apply,
(b) For a Recipient that is an restitution of higher education, the standards of OMB
Circular A-21, Revised, "Cost Principles for Educational Institutions," apply,
(c) For a Recipient that is a private nonprofit organization, the standards of OMB
Circular A-122, Revised, "Cost Principles for Non-Profit Organizations" apply,
(d) For a Recipient that is a for-profit organization, the standards of the Federal
Acquisition Regulation, 48 C F R Chapter I, Subpart 31 2, "Contracts with Commercial
Organizations" apply
d Bond Interest and Other Financing Costs To the extent permitted in writing by FTA, bond
interest and other financing costs are allowable
e Excluded Costs The Rec~pient understands and agrees as follows
(1) In determining the amount of Federal assistance FTA will provide, FTA will exclude
(a) Any Project costs incurred by the Recipient before the Obligation Date of the Grant
Agreement or Cooperative Agreement or Amendment thereto, unless otherwise permitted by
Federal law or regulation, or unless an authorized FTA official states in writing to the contrary,
(b) Any costs incurred by the Rec~pient that are not included m t~'e latest Approved
Project Budget,
(c) Any costs for goods or services received under a third party contract or other
arrangement required to be, but has not been, concurred m or approved in writing by the Federal
Government, and
(d) Any costs ineligible for FTA participation as required by Federal law, regulation, or
guidelines for Federal participation
(2) rrhe Rec,pient agrees that reimbursement of any cost made by the Government does not
constitute a final decision of the Federal Government about the whether that cost is eligible for
reimbursement and does not constitute a waiver of any violation by the Recip~ent of the terms of
the Grant Agreement or Cooperative Agreement The Recipient acknowledges that the Federal
Government will not make a final determination about the ehgibflity of any cost until an audit of
the Project has been completed If the Federal Government determines that the Recipient is not
FTA MA(4) 10-1-97, Page 20
entitled to receive any part of the Federal funds requested, the Federal Government wdl not~fy the
Rec~pient stating its reasons Project closeout wdl not alter the Reclpient's obhgation to return
any funds due to the Federal Government as a result of later refunds, corrections, or other
transactions Nor will Project closeout alter the Federal Government's right to disallow costs and
recover funds on the basis of a later audtt or other rewew Unless prohibited by law, the Federal
Government may recoup any Federal assistance funds to be made available for the Project as
needed to satisfy any outstanding monetary claims that the Federal Government may have against
the Recipient Exceptions pertaining to disallowed costs are contained in FTA directtves or m
other wmten Federal gmdance
f Federal Claims, Excess Payments, and D~saltowed Costs (Including Interest)
(1) g. eclplent's Obhgatlon to Pay Upon not~ce by the Federal Government to the P, ectpient
of specific amounts due, the Recipient agrees to remit to the Federal Government promptly any
amounts due for Federal claims based on funds the Recipient has recovered from third parties or
elsewhere, excess payments, or disallowed costs, including any interest due
(2) Amount of Interest Due The Recipient agrees that the amount of interest due depends
on whether the Federal Government treats the principal portion of the debt as a Federal claim or
as a debt owed to the Federal Government Thus, Recipient agrees to pay interest calculated as
follows
(a) Federal Clmms against the Recipient The Debt Collection Act of 1982, as amended,
31 U S C §§ 3701 through 3720 exempts state governments and units of general local
government from the obhgatlon to pay interest on claims pursued by the Federal Government
under that Act, 31 U S C §§ 3701 and 3717 Interest on claims against other parties will be
calculated in accordance with the interest provisions of U S GAO--U S DOJ regulations,
"Federal Claims Collection Standards," at 4 C F R Part 102, currently 4 C F R § 102 13
(b) Excess Payments The Recipient agrees that a debt for any excess payment does not
qualify as a "clatm" covered by the Debt Collection Act of 1982, as amende~, 31 U S C §§ 3701
through 3720, and that the interest exemptmn for state governments and units of general local
government provided by that Act will not apply to mterest on the debt for excess payments
Accordingly, a Recipient that also is a state government or a unit of general local government
agrees that interest on any debt for excess payments does not quah~y for the interest exemption
provided to state and local governments by 31 U S C §6 3701 and 3717 Thus, irrespective of
whether the Recipient is a state government, a umt of general local government, a nonprofit
organization, an tnst~tut~on of h~gher education, an lnd~vidual, or any other party, the Recipient
agrees to pay prejudgment ~nterest and related charges for excess payments made by the Federal
Government, to the extent authorized under common law, consistent with prov~sions permatmg
interest on debts at 4 C F R Part 102 currently at 4 C F R § 102 13(0(2)
(c) Dtsallowed Costs The Recipient agrees that a debt for any disallowed cost does not
qualify as a "claim" covered by the Debt Collection Act of 1982, as amended, 31 U S C §§ 3701
through 3720, and that the interest exemption for state governments and units of general local
FTA MA(4) 10-1-97, Page 21
government provtded by that Act wtll not apply to interest on the debt for the &sallowed cost
Accordingly, a Rec,p,ent that also ts a state government or a umt of general local government
agrees thlat interest on any debt for a &sallowed cost does not quah~ for the interest exemption
provtdedlto state and local governments by 31 U S C §§ 3701 and 3717 Thus, Irrespect,ve of
whether the Reclptent is a state government, a umt of'general local government, a nonprofit
orgamzailon, an tnst,tut,on of higher educat,on, an ,nd,v, dual, or any other party, the Rec, ptent
agrees to pay prejudgment interest and related charges for debts for each d~sallowed cost pa,d by
the Federal Government, to the extent authorized under common law, consistent with provisions
perm,ttmg mterest on debts at 4 C F R Part 102, currently at 4 C F R § 102 13(,)(2)
g ~j~qf~a~L~ The Federal Government reserves the right to de-obhgate
unexpended Federal funds before Project closeout
Section 10 Project Complet,on, Aud,t, Settlement, and Closeout
a Project Completion W,th,n n,nety (90) days of the Project complet,on date or termmatton by
the Federal Government, the Rec,p,ent agrees to subm,t a final Fmanc,al Status Report (Standard
Form 26~A), a certtficatmn or summary of Project expenses, and th,rd party aud,t reports, as
apphcable
b Audit of Recm,ents The Rec,p~ent acknowledges and agrees as follows
(1) Au&t Reqmred Each Rec~p,ent agrees to undertake the au&ts reqmred by OMB
C,rcular A-133, "Au&ts of States, Local Governments, and Non-Profit Orgamzat,ons," and any
further rev,s,on or supplement thereto In addition, the Recipient agrees to obtain any other
audas reqmred by the Federal Government Project closeout will not alter the Rec,pient's audit
responslbdmes
(2) Au&t Costs Au&t costs for Project administration and management are allowable
Project costs to the extent authorized by OMB C~rcular A-87, Revtsed OMB C,rcular A-21,
Rev,sed, or OMB Ctrcular A-122, Rev,sed
c Fun~s Due the Federal Government The Recipient agrees to remit any amounts due the
Federal Government to the Recipient has recovered from th,rd part,es, excess payments, or
disallowed costs, or from other sources including Interest reqmred by Subsect,on 9 f(2)(b) of this
Master Agreement
d ProJect Closeout ProJect closeout occurs when the FTA notifies the Rec,p,ent the Project ,s
closed out, and e,ther forwards the final Federal assistance payment or acknowledges that the
Rec,p,ent has remttted the proper refund The Reclp,ent agrees that ProJect closeout does not
mvahdate any continuing obhgatmns imposed on the Rec,p,ent by the Grant Agreement or
Cooperat,ve Agreement or by the Federal Government's final not,ficat,on or acknowledgment
FTA MA(4) 10 1-97, Page 22
Secnon 11 Right of the Federal Government to Terminate
Upon written notice, the Recipient agrees that the Federal Government may suspend or terminate
all or part of the Federal financial assistance provxded hereto if the Recipient has wolated the
terms of the Grant Agreement or Cooperative Agreement, or if the Federal Government
determines that the purposes of the statute under which the Project is authorized would not be
adequately served by continuation of Federal financial assistance for the Project Any failure to
make reasonable progress on the Project or other wolatlon of the Grant Agreement or
Cooperative Agreement that endangers substantial performance of the Project shall provide
sufficient grounds for the Federal Government to terminate the Grant Agreement or Cooperative
Agreement Termination of any Federal financial assistance for the Pro.lect will not ~nvahdate
obhgat~ons properly incurred by the Recipient before the termination date, to the extent those
obligations cannot be canceled However if the Federal Government determines that the
Recipient has wdlfully misused Federal assistance funds by falhng to make adequate progress,
failing to make reasonable and appropriate use of the Project real property, facihtles, or
eqmpment, or failing to adhere to the terms of the Grant Agreement or Cooperative Agreement,
the Federal Government reserves the right to require the Recipient to refund the entire amount of
Federal funds provided for the Project or any lesser amount as the Federal Government may
determine Expiration of any Project Time Period established for the Project does not, by ~tself~
constitute an expiration or termination of the Grant Agreement or Cooperative Agreement
Section 12 Preference for Umted States Products and Services
To the extent applicable, the Recipient agrees to comply with the following U S preferences
a Buy America The Rec~pient agrees to comply with 49 U S C § 53230), FTA regulations,
"Buy America Requirements" 49 C F R Part 661, and any implementing guidance FTA may
issue
b Cargo Preference--Use of United States-Flag Vessels The Recip~ent agrees to comply with
U S Maritime Admmlstrat~on regulations, "Cargo Preference--U S -Flag Vessels," 46 C F R
Part 38l, to the extent those regulations apply to the Project
c Fly America The Recipient understands and agrees that the Federal Government will not
participate in the costs of internat~onal a~r transportation of any persons involved in or property
acquired for the Project unless that a~r transportation Is provided by U S -flag a~r carriers to the
extent service by these carriers ~s avadable, as required by the lnternauonal A~r Transportation
Fair Competitive Practices Act of 1974, as amended~ 49 U S C ~ 40118 m accordance w~th
U S GAO regulations, "Uniform Standards and Procedures for Transportation Transactions,"
4 C F R Part 52, and U S GAO Gu~dehnes for Implementation of the "Fly America Act,"
B-138942 1981US Comp Gen LEXIS 2166 March31,1981
FTA MA(4) 10-1-97, Page 23
Section 13 Relocation and Land A~qms~t~on
The Recipient agrees to comply w~th the Umform Relocatmn Ass;stance and Real Property
Acqmsltlon Pohc~es Act of 1970, as amended, 42 U S C §§ 4601 et ~, and U S DOT
regulatmns, "Umform Relocation and Real Property Acqmsmon for Federal and Federally
Assisted Programs," 49 C F R Part 24
Section 14 Setsmlc Safety
The Recipient agrees to apply the reqmrements ofU S DOT regulations apphcable to seismic
safety reqmrements for U S DOT assisted construction projects at 49 C F R Part 41,
(specifically, 49 C F R § 41 117), and any ~mplementmg gmdehnes FTA may issue
Section 15 Procurement
a Fedaral Standards The Recipient agrees to comply w~th apphcable Procurement Standards of
49 C F R § 18 36 or 49 C F R §§ 19 40 through 19 48 and Appendix A, and w~th supplementary
regulatmns and d~rect~ves, particularly FTA C~rcular 4220 1 D, "Third Party Contracting
Reqmrements" The FTA Be~t ?r~:tmes Procurement Manual contains addmonal gmdance
b Pro_~ect Approval/Third Party Contract Approval Unless stated otherwise m writing, FTA's
approval of the Project does not constitute pre-approval of any non-competmve third party
contract awards associated therewah
c FTATechmcalRewew Ifdetermmed necessary for proper Project adm~mstratlon, FTA
reserves the right to review the Rec~p~ent's techmcal specifications and reqmrements
d Exclusionary or Dtscnmmatory Specifications Apart from inconsistent reqmrements tmposed
by Federal statute or regulations, the Recipient agrees that ~t will comply w~th the reqmrements of
49 U S C § 5323(h)(2) by refratnmg from using any Federal assistance awarded by FTA to
support procurements usmg exclusionary or d~scnm~natory spec~ficanons
e Bus,Seat S~ectficatlons A State or local government recipient may use spectficat~ons
conforming with the reqmrements of 49 U S C ~ 5323(e) to acqmre bus seats
f Use!ofFederltl Supply Schedules State, local and certmn nonprofit Rec~ptents may use a
Federal Supply Schedule m making third party acqmsmons only to the extent permitted by U S
General Servmes Admlmstranon (U S GSA) U S DOT or FTA regulatmns or gmdance
g Preference for Recycled Products 1o the extent pracucable and economically feasible, the
Recipient agrees to provide a competmve preference for products and servmes that conserve
natural resources and protect the environment and are energy efficient Examples of such
products may ~nclude, but are not hmaed to products described m U S Enwronmental Protection
FTAMA{4) 10-1-97, Page24
Agency (U S EPA) guidelines at 40 C F R Parts 247-253, which Implement section 6002 of the
Resource Conservation and Recovery Act, as amended, 42 U S C § 6962
h Geographic Restrictions The Recipient agrees to refrain from using state or local geographtc
preferences, except those expressly mandated or encouraged by Federal statute, and as permttted
by FTA, such as stated in Subsection 15 ~ of this Master Agreement below
i Architectural. Engineering. Design. or Related Services In acquiring architectural,
engineering, or related services, the Recipient agrees to comply with the requirements of
49 U S C § 5325(d), by contracting for architectural, engineering, design or related services in
the same way as a contract for architectural and engmeenng services is negotiated under title IX
of the Federal Property and Administrative Services Act of 1949, as amended, 40 U S C §§ 541
et seq, or an equivalent quahfications-based requirement of the state Provided a sufflc~ent
number of qualified firms are ehg~ble to compete for the third party contract, geographic location
may be a selection criterion Th~s section does not apply to the extent a state has adopted or
adopts by law formal procedures for procuring those services
j Force Account The Recipient agrees that FTA may determine the extent to which Federal
assistance may be used to partlctpate m force account costs
k Award to Other Than the Lowest B~dder In accordance wtth 49 U S C § 5326(e), a
Recipient may award a third party contract to other than the lowest b~dder m connection with a
procurement, when such award furthers objectives consistent w~th the purposes of 49 U S C
chapter 53 and any implementing regulations c~rculars manuals or other guidance FTA may
Issue
Rolhng Stock In acquiring rolhng stock the Recipient agrees as follows
(1) Method of Acquisition The Recipient may acquire rolling stock by awarding the third
party contract based on (a) a competitive procurement process, (b) the m~t~al capital cost of the
rolling stock, or (c) the performance standardization, hfe cycle costs, and other factors pertaining
to the rolling stock, m accordance with 49 U S C § 5325(b)
(2) Pre-Award and Post-Dehvery Requirements The Recipient agrees to comply w~th the
requirements of 49 U S C § 5323(I) and FTA regulations, "Pre-Award and Post-Dehvery Audits
of Rolhng Stock Purchases," 49 C F R Part 663 and any revision thereto
(3) Bus Testing To the extent applicable, the Recipient agrees to comply with the
requirements of 49 U S C § 5323(c) and FTA regulations "Bus Testing, 49 C F R Part 665, and
any revision thereto
m Bonding The Recipient agrees to comply w~th the following bonding requirements
(1) Construction Activities The Recipient agrees to comply w~th the btd guarantee, contract
performance and payment bonding requirements for construction projects and act~wt~es set forth
FTA MA(4) 10-1-97, Page 25
In 49 C F R § 18 36(h) or 49 C F R § 19 48(c), as applicable, and with any other bonding
requirements FTA may issue
(2) Other Activities The Recipient agrees to comply with any other bonding requirements or
restncuons FTA may impose
n Notification of Federal Pamclpauon In the announcement of any third party contract award
for goods or serwces (including construeuon services) having an aggregate value of $500,000 or
more, the Recipient agrees to specify the amount of Federal assistance to be used m financing that
acquisition of goods and services and to express the amount of that Federal assistance as a
percentage of the total cost of that third party contract
Section i6 Leases
a Capl!al Leases To the extent applicable, the Recipient agrees to comply with FTA
regulations, "Capital Leases," 49 C F R Part 639, and any revision thereto
b Leases Involwn~ Certificates of'Partlclpanon The Recipient agrees to obtain FTA
concurrence before entering into a leasing arrangement involving the ~ssuance of certificates of
participation in connection with the acqms~tlon of any capital asset
c Cro~s-Border Leases To the extent apphcable the Recipient agrees to comply with FTA
Circular '7020 1, "Cross-Border Leasing Gmdehnes," April 26, 1990, m connection with the
acquisltron of capita] assets revolving a cross-border lease
Section,l? Patent Rl§hts
a General If any invention, improvement, or discovery of'the Recipient or any or,ts third party
contractors Is conceived or first actually reduced to practice ,n the course ¢~ Jr under the ProJect
and that invention, improvement, or d~scovery is patentable under the laws of the United States of
America or any foreign country, the Recipient agrees to not~ FTA immediately and prowde a
detailed, report
b Federal Rights Unless the Federal Government later makes a contrary determination in
wntlng,lthe rights and responsibilities of the R. eclp~ent, third party contractor, subreolplent and the
Federal Government pertaining to that mvennon, ~mprovement, or discovery will be determined in
accordance with applicable Federal laws, regulations, including any waiver thereof Unless the
FederallGovernment later makes a contrary determination in writing, the Reclp,ent agrees that,
ffrespectlve of its status or the status of any subreciplent or any third party contractor at any tier
(I e, a large business, small business, state government or state mstrumentahty, local government,
nonprofit organization, institution of higher education, individual, etc ), the Recipient agrees it
will tra~lsmlt to FTA those rights due the Federal Government in any invention resulting from that
third pl~rty contract described In U S Department of Commerce regulations, "P~ghts to Inventions
FTA MA(4) 10-1-97, Page 26
Made by Nonprofit Organizations and Small Bus~ness Firms Under Government Grants,
Contracts and Cooperative Agreements," 37 C F R Pan 401
Section 18 Rights m Data and Copyrights
a Definition The term "subject data" used in th~s section means recorded information, whether
or not copyrighted, that ~s delivered or specified to be dehvered under the Grant Agreement or
Cooperative Agreement Examples include, but are not hmited to computer software, standards,
spectficat~ons, eng~neenng drawings and associated hsts, process sheets, manuals, technical
repons, catalog ~tem ldent~fications, and related reformat,on The term "subJect data" does not
include financial repons, cost analyses, and similar information used for Project administration
b Federal Restrictions The following restrictions apply to all subject data first produced in the
performance of the Grant Agreement or Cooperative Agreement
(1) Except for ~ts own internal use, the Rec~pient may not pubhsh or reproduce subject data
in whole or in part, or in any manner or form, nor may the Recipient authorize others to do so
w~thout the written consent of the Federal Government, until such time as the Federal
Government may have exther released or approved the release of such data to the pubhc
(2) The restriction on pubhcat~on of Subsecuon 18 b(1) of th~s Master Agreement, however,
does not apply to an Agreement w~th an mst:tut:on of h~gher learmng
c Federal R~ghts in Data and Copyrights In accordance with 49 C F R § 18 34 and 49 C F R
§ 19 36, the Federal Government reserves a royalty-free, non-exclusive and ~rrevocable license to
reproduce pubhsh, or otherwise use and to authorize others to use, for Federal Government
purposes the "subject data" described m the following Subsections 18 c(1) and 18 c(2) ofth~s
Master Agreement As used m the previous sentence "for Federal Government purposes," means
use only for the d:rect purposes of the Federal Government Without the ~.opynght owner's
consent, the Federal Government may not extend to other parties ~ts license to
(1) Any subject data developed under the Grant Agreement or Cooperative Agreement, or
under a third party contract or subagreement financed by the Grant Agreement or Cooperative
Agreement, whether or not a copyr:ght has been obtained and
(2) Any rights of copyright to which a Recipient subrecipient or a third party contractor
purchases ownership with Federal assistance
d Special Federal R~ghts for Planning, Research, and Development Projects FTA's purpose in
prowdmg financial assistance for a planning, research, development, or a demonstration Project, is
to increase transportation knowledge, rather than hmit the benefits of the Project to part~cipants in
the ProJect Therefore, unless FTA determines otherwise, the Reciptent of FTA financial
ass;stance to support a planmng, research, development, or a demonstration Project agrees that, m
addition to the r~ghts m data and copyrights of Subsection 18 c ofth~s Master Agreement, FTA
FTA MA(4) 10-1-97, Page 27
may make available to any FTA recipient, subreclplent, third party contractor, or third party
subcontractor, either FTA's license In the copyright to the subject data or a copy of the subject
data Ill, he Project, whtch ts the subject of the Grant Agreement or Cooperative Agreement, ,s
not coml~leted for any reason whatsoever, all data developed under that Project shall become
subject data as defined in Subsectton 18 a of this Master Agreement and shall be delivered as the
Federal Government may &rect This Subsection 18 d of this Master Agreement, however, does
not apply to adaptations of automatic data processing equipment or programs for the Reclplent's
use whose costs are financed with Federal transportation funds for capital projects
e Hold,Harmless Unless prohibited by state law, upon request by the Federal Government, the
Recipient agrees to tndemmfy, save, and hold harmless the Federal Government and its officers,
agents, and employees acting within the scope of their official duties against any habihty, including
costs and expenses, resulting from any willful or intentional violation by the Recipient of
proprietary rights, copyrights, or right of privacy, arising out of the publication, translation,
reproductton, dehvery, use, or disposltton of any data furmshed under the Project The Rectptent
shall not be required to indemnify the Federal Government for any such habfl~ty caused by the
wrongful acts of employees or agents of the Federal Government
f Rest~tction$ on Access to Po, tent Rtghts Nothing contained in this section on rights in data
shall imply a license to the Federal Government under any patent or be construed as affecting the
scope of any license or other right otherwise granted to the Federal Government under any patent
g Application to Materials Incorporated into the Pro_)ect The requirements of Subsections 18 b
18 c, and 18 d of this Master Agreement do not apply to materml furmshed by the Recipient and
incorporated into the work carried out under the Grant Agreement or Cooperative Agreement,
provldedl that the Recipient identifies the incorporated mater~al at the time o£ delivery of the work
Section 19 Real Property, Equipment. and Supplies
Unless otherwise approved by FTA, the following condmons apply to the treatment of real
property, equipment, and supphes financed by the Grant Agreement or Cooperative Agreement
a Use of Property The Recipient agrees that Project real property, equipment, and supphes
shall be used for appropriate Project purposes (Including joint development purposes that
generate program income (both during and after the award period) to support transit activittes)
for the duratton of their useful life, as estabhshed by FTA Shot~ld the Recipient unreasonably
delay or fail to use Project real property, equipment, or supplies during their useful life, the
Reciptent agrees that FTA may require the Recipient to return the entire amount of the Federal
assistance expended on that property The Rec~pient further agrees to notl~ FTA immediately
when any Project real property or equipment is withdrawn from Project use or when real properly
or equipment is used in a manner substantially d~fferent from the representations made by the
Recipient in its Application or the Project Description of the Grant Agreement or Cooperative
Agreement for the Project
FTA MA(4) 10-1-97, Page 28
b General Federal Reqmrements A Rectptent that ts a state, local, or In&an tribal government
agrees to comply wtth the property management standards of 49 C F R §§ 18 31 through 18 34,
mcludmg any amendments thereto, and other apphcable gutdelmes or regulattons the Federal
Government may ~ssue A Rectp~ent that ts an mstttutton of htgher educauon, a private nonprofit
orgamzatton, or a for-profit orgamzatton agrees to comply wtth 49 C F R §§ 19 30 through
19 37, tncludtng any amendments thereto, and other apphcable gmdelmes or regulattons the
Federal Government may ~ssue Excepttons to the reqmrements of 49 C F R §§ 18 31 through
18 34, and to 49 C F R §§ 19 30 through 19 37, must be spectfically approved by the Federal
Government Nevertheless, FTA has estabhshed spectfic reimbursement reqmrements for
premature &sposmons of certain Project eqmpment 0 e, when Project equtpment ts w~thdrawn
from appropriate use before the exptratton of the eqmpment's useful hfe estabhshed by FTA), as
explained further m Subsection 19 g of thts Master Agreement
c Maintenance The Rec~p;ent agrees to maintain Project real property and eqmpment m good
operatt.g order, and m comphance w;th any gu~dehnes, d~recttves, or regulattons FTA may tssue
d Records The Rectp~ent agrees to keep sattsfactory records wtth regard to the use of Project
real property, eqmpment, and supphes and submit to the FTA upon request such mformatton as
may be requtred to assure comphance w~th Section 19 ofth~s Master Agreement
e Encumbrance of Project Property The Recipient agrees to maintain sausfactory continuing
control of Project real property or equipment Thus, unless FTA authorizes otherwise m writing
(1) Written Transacttons The Rec~p;ent agrees to refrain from executing any transfer of
t;tle, lease, hen, pledge, mortgage, encumbrance third party contract, grant anttctpatton note,
ahenauon, or other obhgaUon that m any way would affect the Federal interest tn any Project real
property or equtpment
(2) Oral Transactions The Recipient agrees to refrain from obhgatmg ~tselfm any manner to
any third party w~th respect to Project real property or equipment
(3) Other Acuons The Recipient agrees to refrmn from takmg any action that would e~ther
adversely affect the Federal ~nterest or unpa~r the Reclp~ent's continuing control of the use of
Project real property or equtpment
f Transfer of Project Property The Rectptent understands and agrees as follows
(1) Rectp~ent Request The Rectpsent may transfer assets financed under 49 U S C
chapter 53 to a public body to be used for any pubhc purpose wtth no further obhgatton to the
Federal Government prowded that transfer ~s approved by the Federal Transit Admlmstrator and
conforms wtth the requirements of 49 U S C § 5334(g)
(2) Federal Government D~rect~on The Recipient agrees that the Federal Government may
requsre the Recipient to transfer tttle to any real property, equipment, or supphes financed wsth
Federal asststance made avmlable by the Grant Agreement or Cooperauve Agreement as
IFA MA(4) 10-1-97 Page 29
permitted by e~ther 49 C F R §§ 18 31 through 18 34, or 49 C F R § 19 3, as apphcable The
Rec~pient also agrees that the Federal Government may direct the d~spos~uon of real property or
equipment financed with Federal assistance funds made available for the Grant Agreement or
Cooperative Agreement, as permitted by e~ther 49 C F R § § 18 31 through 18 33, or 49 C F R
§§ 19 32 through 19 35, as apphcable
(3) Leasm~ Project Pro~erty to Another Party Ifthe Recip~ent leases any Project asset to
another party, the Recipient agrees to retain ownership of the leased asset, and assure that the
lessee will use the Project asset appropriately, either through a "Lease and Supervisory
Agreement" between the Recip~ent and lessee, or another s~mdar document Upon request by
FTA, the Recipient agrees to provide a copy of any relevant documents
g D~sposltion of Pr~ect Property The Recipient agrees that FTA may establish the useful life
of Project property, and that the Recipient will use Project property continuously and
appropriately t~'~oughout the period of time of the property% useful hfe
(1) pr~ect Property Whose Useful Life Has Expired For property whose useful life, as
determined by FTA has expired, the Recipient agrees to comply w~th the property d~sposmon
requirements of either 49 C F R Part 18 or 49 C F R Part 19
(2) Project Property Prematurely W~thdrawn from Use For property w~thdrawn from
appropriate use before ~ts useful hfe has expired, the Recipient agrees to the following provisions
(a) Notification Requirement The Recipient agrees to notify FTA ~mmedmtely when
any Project real property, eqmpment, or supphes are prematurely w~thdrawn from appropriate
use, whether by planned w~thdrawal, misuse, or casualty loss
(b) Federal Interest m Prematurely W~thdrawn Project Property Unless otherwise
approved by the Federal Government, the Recipient agrees to remit to the Federal Government
the Federal interest in the fair market value of Project real property, equipment, or supplies
prematurely withdrawn from appropriate use The ar"-unt of Federal interest in the property shall
be determined on the bas~s of the ratio of the Federal assistance awarded by the Federal
Government for the property to the actual cost of the Property The Recipient agrees to the
following methods of calculating the fair market value of property prematurely w~thdrawn from
appropriate use
1_ Equlpment and Supphes Unless otherwise determined m writing by FTA, fair
market value shall be calculated by strmght hne depreciation of the equipment or supphes, based
on the useful life of the equipment or supphes estabhshed or approved by FTA The fair market
value of eqmpment and supphes shall be the value ~mmed~ately before the occurrence prompting
the withdrawal of that property from use In the case of equipment or supphes lost or damaged
by casualty or fire, the fmr market value shall be calculated on the bas~s of the condition of that
property ~mmedlately before the casualty or fire, ~rrespect~ve of the extent of insurance coverage
As authorized by 49 C F R § 18 32(b), a state may use ~ts own d~spos~t~on procedures, provided
that the state's procedures comply w~th the laws governing that state
l~A MA(4) 10-1-97, Page 30
2 Real Property The fair market value of real property shall be determined either
by competent appraisal based on an appropriate date approved by the Federal Government, m
accordance with the standards of 49 C F R Part 24, or by straight line depreciation, whichever is
greater
3 Exceptional C~rcumstances The Federal Government reserves the right to
require the use of another method of valuation If determined to be m the best interests of the
Federal Government In unusual circumstances, the Recipient may request that another
reasonable method of determining fair market value be used including, but not limited to,
accelerated depreciation, comparable sales, or established market values In determining whether
to approve another method of valuation, the Federal Government may consider any action taken,
omission made, or unfortunate occurrence suffered by the Rec~pient with respect to the
preservation or conservation of the value of the real property, equipment, or supplies withdrawn
from appropriate use for any reason
h Misused or Damaged Property lfany damage to Project real property, equipment, or
supplies results from abuse or misuse occurring with the Reclpient's knowledge and consent, the
Recipient agrees to restore that real property or equipment to its original condition or refund the
value of the Federal interest m the damaged property, as the Federal Government may require
I Obhganons After Project Closeout A Recipient that is a state, local, or Indian tribal
government agrees that Project closeout ~,fll not alter its property management obligations of
Section 19 ofth~s Master Agreement and 49 C F R §§ 18 31 through 18 34 A Recipient that is
an mstitut~on ofh~gher education a phc, ate nonprofit orgamzat~on or a for-profit organization
agrees that project closeout will not alter ~ts property management obligations under Section 19
of this Master Agreement and 49 C F R ~ 19 32 through 19 37
Section 20 Insurance
Apart from other insurance reqmrements that ma~, appl~ to the Rec~pient, the Recipient agrees as
tollows
a Insurance During Construction At a m~mmum the Recipient agrees to comply with the
~nsurance reqmrements normally imposed bv ~ts state and local governments
b Flood Hazards The Recipient agrees to comply with the flood insurance purchase provisions
of section 102(a) of the Flood Disaster Protection Act of 1973 42 U S C § 4012a(a), w~th
respect to each Project actlvltv involving construction or acqmstt~on
Section 21 Project Management tot Major Cap~tal Projects
The Recipient agrees to comply with FTA regulanons "Project Management Oversight"
49 C F R Part 633 and any revision thereto apphcable to a Major Capital Project
FTA MA(4) 10-1-97, Page 31
Sect,on 22 C,v,l Pdghts
a Prohtb,t,ons Aga,nst D,scnm,nat,on ,n Federal Programs The Rec,p,ent agrees to comply
w,th, and assure comphance by each th, rd party contractor at any t,er and each subrec, p~ent at any
,,er under the Project, w,th all requ,rements of T,tle VI of the C,vll Pdghts Act of 1964, as
amended, 42 U S C § 2000d, 49 U S C § 5332, and DOT regular,ohs, "Nond~scnm,nat~on ,n
Federally-Ass,sted Programs of the Department of Transportat,on -- Effectuanon of T,tle VI of
the C~vd ~ghts Act," 49 C F R Part 21, and any ,mplementmg reqmrements FTA may ,ssue
b Equal Employment Ouuortumtv The Rec,p,ent agrees to comply w,th, and assure comphance
by each th,rd party contractor at any ,,er and each subrec~p,ent at any ncr under the Project, w,th
all reqmrements ofT,tie VII of the C,wl l*aghts Act of 1964, as amended, 42 U S C § 2000e, and
49 U S C § 5332 and any ,mplementmg reqmrements FTA may ,ssue Spec, fically, the Rec,p,ent
agrees tO comply w,th the follow,ng equal employment opportun,ty (EEO) reqmrements
(1) General Reqmrements The Rec~p,ent agrees as follows
,(a) The Rec,p,ent agrees that ,t w~ll not d,scnm,nate against any employee or apphcant
for employment because of race, color, creed, sex, d~sabd,ty, age, or nanonal or, gm The
Rec,p,ent agrees to take affirmauve act,on to ensure that apphcants are employed and that
employees are treated dunng employment, w, thout regard to the,r race, color, creed, sex,
d,sab,hty, age, or nanonal ongm Such act,on shall ,nclude, but not be l,m,ted to, employment,
upgrading, demotion or transfer, recru,tment or recrmtment advems,ng, layoffor term,nat,on,
rates of pay or other forms ofcompensat,on, and select,on for training, ,nclud,ng apprent,cesh,p
The Rec,p~ent also agrees to comply w, th any ~mplementmg reqmrements FTA may ,ssue
(b) If the Rec~p,ent ,s required to submtt and obtain Federal Government approval of ,ts
EEO program, that EEO program approved by the Federal Government ,s ,ncorporated by
reference and made part of the Grant Agreement or Cooperat,ve Agreement Fa,lure by the
Rec, p,ent to carry out the terms of that EEO program shall be treated as a wolat,on of the Grant
Agreement or Cooperat,ve Agreement Upon notification to the Rec,p~ent of~ts fa,lure to carD'
out the approved EEO program, the Federal Government may ,repose such remedies as ,t
cons,ders appropriate, mclud,ng term,nat~on of Federal financial ass,stance m accordance w,th
Sect,on,l 1 of th,s Master Agreement, or other measures that may affect the Rec,p,ent's ehg,bd,ty
to obtain future Federal financml ass,stance for transportat,on projects
(2) lEo_ual Employment Opportumtv Reqmrements for Construct,on Acnvmes Wah respect
to construction act,v,t,es, the Rec,p,ent agrees to comply wah all appl,cable EEO reqmrements of
U S Department of Labor (U S DOL) regulations, "Office of Federal Contract Comphance
Programs, Equal Employment Opportun,ty, Department of Labor," 41 C F R Parts 60 et seq,
(wh,ch ,mplement Execut,ve Order No 11246, "Equal Employment Opportumty," as amended by
Executive Order No 11375, "Amend,ng Execut,ve Order 11246 Relat,ng to Equal Employment
Opportumty," 42 U S C § 2000(e) and any Federal statutes, execut;ve orders, regulat,ons, and
Federal,poltctes that may affect constructton acnv,t,es undertaken m the course of the Project
FTAMA{4) 10-1-97 Page 32
c D~sadvantaged Business Enterprise The Reop~ent agrees to take the following measures to
facilitate part,ctpat,on by d,sadvantaged business enterprises (DBE) m the Project
(1) The Rec~p,ent agrees to comply w, th current U S DOT regulanons on DBE parttmpat,on
m U S DOT financml assistance programs, at 49 C F R Part 23 or at another Part ffre-~ssued,
and any requ,rements or guidance FTA may ,ssue
(2) The Rec,p,ent agrees that ,t will not d,scnm,nate on the basis of race, color, nat,onal
origin, or sex m the award and performance of any th,rd party contract, or subagreement financed
w~th Federal assistance derived from the U S DOT The Recipient agrees to take all necessary
and reasonable steps requ,red by U S DOT regulations to ensure that el,g~ble DBEs have the
max,mum feasible opportumty to part,c~pate m th,rd party contracts financed with Federal
ass, stance awarded by U S DOT If the Rec,p~ent ,s reqmred by U S DOT regulations to have a
DBE program, the DBE program approved by U S DOT ~s incorporated by reference and made
part of the Grant Agreement or Cooperative Agreement Implementation of that DBE program ,s
a legal obhgat,on, and failure to carry out ~ts terms shall be treated as a v,olat,on of the Grant
Agreement or Master Agreement Upon not~Bymg the Rec,p,ent of any failure to ,mplement ~ts
approved DBE program, U S DOT may ,mpose sanctions as prov,ded for under ,ts regulauons
and may, m appropriate cases, refer the matter for enforcement under 18 U S C § 1001, and the
Program Fraud Civil Reined,es Act 31 U S C ~§ 3801 e_t seq
d Access Reqmrements for Persons w,th Dlsablht,es The Rec,p,ent agrees to comply w,th all
reqmrements apphcable to the Project of the Americans w,th D~sabfl,t~es Act of 1990 (ADA), as
amended 42 U S C ~§ 12101 et ~ section 504 of the Rehabilitation Act of 1973, as amended,
29 U S C § 794 49 U S C ~ 5301(d) and the following Federal regulations including any
amendments thereto
(1) U S DOT regulations "Transportation Services for Individuals w~th D,sabtl,t,es (AD,k),"
49CFR Part 37,
(2) U S DOT regulat,ons, "Nondiscrimination on the Bas~s ofHand~cap m Programs and
Act,v,t,es Receiving or Benefiting from Federal Financial Assistance," 49 C F R Part 27,
(3) U S DOT regulauons, "Americans W~th D;sabfl~tles (ADA) Accessibility Spec,ficat,ons
for Transportation Vehicles "49 C F R Part 38
(4) U S DOJ regulations "Nondiscrimination on the Bas;s ofD,sabfl~ty m State and Local
Government Services" 28 C F R Part 35
(5) U S DOJ regulauons, "Nond~scnmmat:on on the Bas:s of D~sabfl~ty by Pubhc
Accommodat,ons and m Commercial Facilities," 28 C F R Part 36,
(6) U S GSA regulations "Accommodations for the Physically Hand~capped," 41 C F R
Subpart 101-19
FTA MA(4) 10-1-97, Page 33
(7) U S Equal Employment Opportunity Commission, "Regulations to Implement the Equal
Employment Provisions of the Americans with Disabilities Act," 29 C F R Part 1630,
(8) U S Federal Communications Commission regulations, "Telecommunications Relay
Services and Related Customer Premises Equipment for the Hearing and Speech Disabled,"
47 C F R. Part 64, Subpart F, and
(9) FTA regulations, "Transportation for Elderly and Handicapped Persons," 49 C F R
Part 609
(I 0)' Any ~mplementmg requirements FTA may issue
Section 23 Employee Protections
a Construction Activities The Recipient agrees to comply with the employee protection
requirements for construction employees as follows
(1) Daws-Bacon Act. as amended, 49 U S C ~ 5333(a), the Davis-Bacon Act, 40 U S C
§§ 276a through 276a(7), and ~mplementmg U S DOL regulations, "Labor Standards Provisions
Applicable to Contracts Governing Federally Financed and Assisted Construction (also Labor
Standar~ls Provisions Applicable to Nonconstruct~on Contracts Subject to the Contract Work
Hours and Safety Standards Act)" 29 C F R Part 5
(2) Contract Work Hours and Safety Standards Act, as amended, specifically section 102 of
that AcL 40 U S C §§ 327 through 332, and implementing U S DOL regulations, "Labor
Standards Provisions Applicable to Contracts Govermng Federally Financed and Assisted
Construction (also Labor Standards Provisions Apphcable to Nonconstructlon Contracts Subject
to the Contract Work Hours and Safety Standards Act)," 29 C F R Part 5 and section 107 of
that Act, 40 U S C § 333, and implementing U S DOL regulations, "Safety and Health
Regulations for Construction," 29 C F R Part 1926
(3) ICopeland "Ant~-Kickback" Act. as amended. 18 U S C § 874 and 40 U S C § 276c, and
~mplementmg U S DOL regulations, "Contractors and Subcontractors on Pubhc Building or
Public Work Financed in Whole or in part by Loans or Grants from the Umted States," 29 C F R
Part 3
b Acfivmes Not Involving Construction The Recipient agrees to comply with and assures
comphance by other Project part~cipants with applicable employee protection requirements for
nonconStructlon employees of section 102 of the Contract Work Hours and Safety Standards Act,
as amefided, 40 U S C §§ 327 through 332, and implementing U S DOL regulations, "Labor
Standards Provisions Applicable to Contracts Govermng Federally Financed and Assisted
Construction (also Labor Standards Pro,,~sions Applicable to Nonconstructlon Contracts Subject
to the Contract Work Hours and Safety Standards Act)," 29 C F R Part 5
FTA MA(4) 10-1-97, Page 34
c State and Local Government Employees The Recipient agrees that the minimum wage and
overtime provisions of the Fair Labor Standards Act, as amended, 29 U S C §§ 206 and 207,
apply to employees performing work involving commerce, including such state and local
government employees as public transit authority employees, participating tn the Project
Consequently, each Recipient that is a state or local government agrees to comply with the Fair
Labor Standards Act's minimum wage and overtime requirements for employees performing work
In connection with the Project
d Transit Employee Protective Arrangements If the Grant Agreement or Cooperative
Agreement indicates that U S DOL transit employee protective arrangements apply to transit
operations performed in connection w~th the Project, the Recipient agrees to comply with the
appropriate requirements below applicable to its Project
(1) Standard Transit Employee Protective Arrangements To the extent that transit
operations are involved m the Project, the Recipient agrees to carry out the Project in compliance
with terms and condmons determined by the Secretary of Labor to be fair and equitable to protect
the interests of any employees affected by the Project and to meet the requirements of 49 U S C
§ 5333(b), and U S DOL guidelines, "Section 5333(b), Federal Transit Law," 29 C F R Part 215
and any amendments thereto These terms and conditions are identified in U S DOL's
cert~fication of transit employee protective arrangements to FTA, the date of which is included in
the Grant Agreement or Cooperative Agreement The Recipient agrees to carry out the Project in
compliance with the conditions stated in that U S DOL certification That U S DOL certification
and any documents c~ted thereto are incorporated by reference and made part of the Grant
Agreement or Cooperative Agreement The requirements of this Subsection 23 d(l) ofth~s
Master Agreement, however, do not apply to formula assistance projects for the elderly and
persons with disabilities authorized by 49 U S C § 5310(a)(2) or to formula assistance projects
for nonurbamzed areas authorized by 49 U S C ~ 5311 separate requirements for those projects
are contained tn Subsections 23 d(2) and 23 d(3) of this Master Agreement
(2) Transit Employee Protective Arrangements for Projects for the Elderly and P~rsons with
Disabllmes Authorized by 49 U S C § 5310(a)(2) To thc ,. ent that the U S Secretary of
Transportation has determined or determines in the future that employee protective arrangements
required by 49 U S C § 5333(b) are necessary or appropriate for a public body subrecipient under
the Project, the Recipient agrees to carry out the Project in compliance with the terms and
conditions determined by the Secretary of Labor necessary to meet the requirements of 49 U S C
§ 5333(b), and U S DOL gu~dehnes, "Section 5333(b) Federal Transit Law," at 29 C F R Part
215, and any amendments thereto These terms and cond~tions are ~dentlfied in U S DOL's
certification of transit employee protective arrangements to FTA, the date of which is included in
the Grant Agreement or Cooperative Agreement The Recipient agrees to carry out the Project in
compliance with the conditions stated in that U S DOL cert~fication That U S DOL certification
and any documents c~ted therein are incorporated by reference and made part of the Grant
Agreement or Cooperative Agreement
(3) Transit Employee Protective Arrangements for Projects in Nonurbamzed Areas
Authorized by 49 U S C § 5311 The Recipient agrees to comply with the terms and conditions
FTA MAI4} 10-1-97, Page 35
of the Spectal Warranty for the Nonurbamzed Area Program agreed to by the Secretaries of
Transportation and Labor, dated May 31, 1979, and the procedures implemented by U S DOL or
any revision thereto
Sectlon124 Plo, nmng and Private Enterprise
a FTA~ Requirements The Recipient agrees that each ProJect financed under the Grant
Agreement or Cooperative Agreement will be implemented consistent with the plans developed in
accordance with applicable planning and private enterprise requirements of 49 U S C §8 5303
through 5306, and joint Federal Highway Administration (FHWA)/FTA regulations, "Planning
Assistance and Standards," 23 C F R Part 450 and 49 C F R Part 613
b Infrastructure Investment In implementing the ProJect, the Rec~pient agrees to consider the
provisions of Executive Order No 12803, "Infrastructure Pnvanzation," 57 Fed Reg 19063,
May 4, 11992, and Executive Order No 12893, "Principles for Federal Infrastructure
Investments," 59 Fed Reg 4233, January 26, 1994
Section 25 Environmental Rea_ulrements
The Recipient recognizes that many Federal and state laws imposing environmental and resource
conservation requirements may apply to the Project Some, but not all, of the major Federal laws
that may affect the ProJect include the National Environmental Pohcy Act of 1969, as amended
42USC 884321et~ the Clean Air Act, as amended, 42USC §§7401etseq and
scattered sections of 29 U S C, the Clean Water Act, as amended 33 U S C §8 1251 - 1387,
the Resource Conservation and Recovery Act, as amended 42 U S C §§ 6901 et seq, and the
Comprehensive Environmental Response, Compensation, and Liability Act, as amended,
42 U SiC 88 9601 et se_e_q The Rec~pient also recognizes that U S EPA, FHWA and other
agencies of the Federal Government have issued and are expected in the future to issue
regulations, guidelines, standards, orders, directives, or other requirements that may affect the
Project~ Thus, the Keclp~ent agrees to adhere to, and impose on each subrecipient and each third
par~y contractor, any such Federal requirements as the Federal Government may now or in the
future promulgate Listed below are requirements of particular concern to FTA and the
Recipient The Recipient acknowledges that this hst does not constitute the Rectpient's entire
obhgatlon to meet all Federal environmental and resource conservation requirements
a Enylronmental Protection The Recipient agrees to comply with all apphcable requirements
of the National Environmental Policy Act o£ 1969, as amended, 42 U S C §8 4321 et sea_ m
accordance with Executive Order No 12898, "Federal Actions to Address Environmental Justice
m Mtnonty Populations and Low-Income Populations" 59 Fed Reg 7629 Feb 16, 1994, FTA
statutory requirements on environmental matters at 49 U S C § 5324(b), Council on
Environmental Quality regulations on comphance with the National Environmental Policy Act o£
1969, as amended, 40 C F R Part 1500 et ~, and joint FHWA/FTA regulations,
"Environmental Impact and Related Procedures," 23 C F R Part 771 and 49 C F R Par~ 622
F'FA MA(4) 10-1-97, Page 36
b ,4ar Ouahty The Recipient agrees to comply with all applicable standards, orders, or
regulations tssued pursuant to the Clean A~r Act, as amended, 42 U S C §§ 7401 et se.~q
Specifically
(l) The Rec~ptent agrees to comply with apphcable requirements ofU S EPA regulations,
'Conformity to State or Federal Implementation Plans of Transportation Plans, Programs, and
Projects Developed, Funded or Approved Under T~tle 23 U S C or the Federal Transtt Act,"
40 C F R Part 51, Subpart T, and "Determining Conformity of Federal Actions to State or
Federal Implementation Plans," 40 C F R Part 93 To support the reqmslte att quality conformity
finding for the Project, the Recipient agrees to ~mplement each air quahty mltigatton and control
measure mcorporated m the Project The Recipient agrees that any Project identified m an
applicable State Implementauon Plan (SIP) as a Transportation Control Measure, wdl be wholly
consistent w~th the design concept and scope of the Project described m the SIP
(2) U S EPA also ~mposes reqmrements ~mplementlng the Clean A~r Act, as amended, that
may apply to transit operators, particularly operators of large transit bus fleets Thus, the
Recipient should be aware that the following U S EPA regulations, among others, may apply to
its Project "Control of Air Pollution from Motor Vehicles and Motor Vehicle Engines,"
40 C F R Part 85, "Control of A~r Pollution from New and In-Use Motor Vehicles and New and
In-Use Motor Vehicle Engines CerUficat~on and Test Procedures," 40 C F R Pan 86, and "Fuel
Economy of Motor Vehicles" 40 C F R Part 600
c Clean Water The Recipient agrees to comply w~th all apphcable standards, orders, or
regulations ~ssued pursuant to the Clean Water Act, as amended, 33 U S C §§ 1251 et seq
d Use of Pubhc Lands The Recipient agrees that no pubhcly owned land from a park,
recreation area, or wfldhfe or waterfowl rethge of national, state, or local s~gmficance as
determined by the Federal, state, or local officials having jurisdiction thereof, or any land from a
h~stonc s~te of national, state, or tocal s~gmficance may be used for the Project unless the FTA
makes the spectfic findings required by 49 U S C § 303
e H~stonc Preservation The Recipient agrees to assist the Federal Government m complying
with section 106 of the National Histortc Preservation Act 16 U S C § 470f mvolwng h~stonc
and archaeological preservation as follows
(1) The Recipient agrees to consult w~th the State Historic Preservation Officer concermng
investigations to ~dent~fy properties and resources included m or ehgtble for inclusion m the
National Register of H~storlc Places that may be affected by the Project, m accordance wtth
Adwsory Council on H~storlc Preservation regulations "Protection of H~stor~c and Cultural
Properties," 36 C F R Part 800 and notifying FTA of those properties so affected
(2) The Rec~pient agrees to comply w~th all Federal requirements to avoid or m~tlgate
adverse effects on those h~stor~c properties
FTA MA(4) 10-1-97, Page 37
f MIttgatlon of Adverse Envtronmental Effects The Rec~pient agrees that ffthe ProJect should
cause adverse envtronmental effects, the Recipient will take all reasonable steps to mmtmize those
effects as reqmred by 49 U S C § 5324(b), and any other applicable Federal laws and regulations,
spectfic011y, the procedures of 23 C F R Part 771 and 49 C F R Part 622 The Rec~pient agrees
to undertake all enwronmental mtt~gat~on measures that may be ~dennfied as commttments tn
appl,cabJe envtronmental documents (such as environmental assessments, environmental tmpact
statements, memoranda of agreement, and statements requ,red by 49 U S C § 303) and wtth any
condmons the Federal Government has ~mposed ,n its finding of no significant impact or a record
of dec, stun Those m,t~ganon measures are incorporated by reference and made part of the Grant
Agreement or Cooperative Agreement As soon as the Federal Government and the Recipient
reach agreement on any deferred mmgatton measures, those measures will then be tncorporated
by reference and made part of the Grant Agreement or Cooperative Agreement The Recip~ent
agrees that any mmgauon measures agreed upon may not be modified or withdrawn w,thout the
express written approval of the Federal Government
Sectton 26 Energy Conservation The Reciptent agrees to comply w~th the mandatory energy
efficiency standards and policies w~thm the applicable state energy conservation plans issued tn
comphance with the Energy Policy and Conservatmn Act 42 U S C §§ 6321 et seq
Section'27 State Management and Momtormg S~stems
To the extent applicable, the Rec~pient agrees to comply w~th apphcable requirements ofjotnt
FHWA/FTA regulations "Management and Momtormg Systems," 23 C F R Parts 500 and 626
and 49 C F R Part 614
Secnon 28 Charter Service Operations
The Rectp~ent agrees that netther it nor any transit op"-ator performing work in connection with
the ProJect wtll engage m charter service operations, except as permitted by 49 U S C § 5323(d)
and FTA regulations, "Charter Service," 49 C F R Part 604, and any amendments thereto that
may be tssued Any charter service agreement required by these regulations Is incorporated by
reference and made part of the Grant Agreement or Cooperative Agreement
Section 29 School Transportation Operations
The Recipient agrees that neither it nor any transit operator performing work m connection with
the Project will engage in school transportation operations for the transportation of students or
school personnel exclusively tn competition wtth private school transportation operators, except
as permttted by 49 U S C § 5323(0 and FTA regulations, "School Bus Operations," 49 C F R
Part 605, and any amendments thereto that may be issued Any school transportatmn agreement
FTA MA(4) 10-1-97, Page 38
reqmred by these regulations is incorporated by reference and made part of the Grant Agreement
or Cooperative Agreement
Section 30 Metric System To the extent required by U S DOT or FTA, the Rempient agrees
to use the metric system of measurement in ~ts ProJect activities, as may be required by 15 U S C
§§ 205a et sea_, Executive Order No 12770, "Memc Usage in Federal Government Programs,"
15 U S C § 205a note, and other regulations, guidelines, and policies issued by U S DOT or
FTA To the extent practicable and feasible, the Recipient agrees to accept products and services
with dimensions expressed in the metric system of measurement
Section 31 Substance Abuse
a Drug Abuse The Recipient agrees
(1) The Recipient agrees to comply with U S DOT regulations, "Drug-Free Workplace
Requirements (Grants)," 49 C F R Part 29, Subpart F
(2) To the extent applicable, the Recipient agrees to comply with FTA regulaDons,
"Prevention of Prohibited Drug Use in Transit Operations" 49 C F R Part 653, and any guidance
pertaining to the drug abuse provis~ons of 49 U S C § 5331 that FTA or U S DOT may issue
b Alcohol Abuse Io the extent apphcable the Recipient agrees to comply with FTA
regulations, "Prevention of Alcohol M~suse m Transit Operations," 49 C F R Part 654, and any
guidance penmmng to the alcohol abuse provisions ot 49 U S C § 5331 that FTA or U S DOT
may ~ssue
Section 32 State Safety Oversight ot Raft Fixed Gmdeway Pubhc Systems
To the extent applicable, the Recipient agrees to comply w~th 49 U S C § 5330, and FTA
regulations, "Raft Fixed Gmdeway Systems State Safety Oversight," 49 C F R Part 659 and any
guidance pertaining to state safety oversight of raft fixed gmdeway systems that FTA or U S
DOT may ~ssue to implement 49 U S C § 5'~30
Section 33 Special Reqmrements for Urbamzed Area Formula Projects The following
requirements apply to projects financed with Federal assistance authorized for 49 U S C § 5307
a Fares and Services The Recipient agrees to use its estabhshed adm~mstrative process to
solicit and consider pubhc comment before rinsing fares or implementing a major reduction of
service
FTAMA(4) 10-1-97, Page 39
b Audit Rea_mrements The Recipient agrees that the Federal Government may conduct or
require the Recip~ent to engage an independent entity to conduct annual or more frequent
rewews and audits required by 49 U S C 8 5307(0 and applicable regulations or gmdehnes that
the Federal Government may issue
c Half Fare Reqmrements The Reclp~ent agrees that the rates charged the elderly and persons
w~th dis~bdmes during nonpeak hours for transportation using or revolving Project facfl~tles and
eqmpment wdl not exceed one-half of the rates generally apphcable to other persons at peak
hours, whether the operation of such facilities and equipment ts by the Recipient or is by another
entity under lease or otherwise The R. ec~p~ent agrees to give the rate required hereto to any
person presenting a Medicare card duly tssued to that m&v~dual pursuant to tale II or title XVIII
of the Social Security Act, 42 U S C 88 401 et se~.q, and §§ 1395 et ~q respectively
d Procurement of an Associated Capital Maintenance Product In accordance with the
prov~siclns of a,9 U S C 8 5325(c), the Recipient may, w;thout prior Federal approval, procure an
eligible assocmted capital maintenance product by contract d~rectly with the original manufacturer
or suppher ofthe Item to be replaced, prowded that the Rec~pient (1) first certifies m wntin8 that
such manufacturer or supplier is the only source of that item and the price of that item is no h~gher
than the price paid for that item by like customers, and (2) complies with applicable Buy America
statutory and regulatory requirements
e Trags~t Seq:unty Each fiscal year, the Recipient agrees to spend at least one (1) percent of;ts
funds authorized by 49 U S C § 5307 for transit security projects, unless the Recipient has
certified to FTA that such expenditures are not necessary
f Restrictions on Use of Formula Assistance for Operations Financial assistance for operations
authorized by 49 U S C § 5307 may be applied to the Net Project Cost of the Reclp~ent's
operating expenses incurred during the Project t~me period specified in the Approved Project
Budget, provided that the applicable operating assistance hm~tatlon is not exceeded
g Reporting Requirements For each fiscal year the Roc~p~ent agrees to conform, and assures
that any transit operator to which the Recipient provides funds authorized by 49 U S C § 5307
will conform, to the reporting system and the uniform system of accounts and records required by
49 U S C 8 5335(a) for FTA's national transit database and FTA regulations, "Umform System of
Accounts and Records and Reporting System," 49 C F R Part 630, which includes various
reports reqmred for FTA's national transit database
h CrmJmal Sanctions Any cemficate or submiss~on in connection w~th an Urbanized Area
Formul*. Program authorized by 49 U S C § 5307 is subject to 49 U S C § 1001
Section 34 Special Reqmrements for Formula Prolects for the Elderly and Persons With
Disabdmes The following requirements apply to projects financed with Federal assistance
authonged for 49 U S C § 5310
FTA MA(4) 10-1-97, Page 40
a Ehg~ble Subreciptents If the Federal financial assistance awarded for the Grant Agreement or
Cooperative Agreement has been authorized for projects under 49 U S C § 5310(a)(2), the
Recipient will provide assistance only to subreclp~ents that qualify as one of the following types of
entrees (1) a private nonprofit corporanon or association meeting the special needs of the elderly
and persons w~th disablllnes for whom transit servmes are unavailable, insufficient, or
inappropriate, (2) a public body approved by the state to coordinate services for the elderly and
persons with d~sabd~tles, or (3) a public body that certifies to the Governor that no nonprofit
corporations or associat~ons are readily available m its area to provide service to meet the special
needs of the elderly and persons with dlsabflmes
b State Procedures In general, the Recipient agrees to administer each Project financed under
49 U S C § 5310 in accordance w;th FTA C~rcular 9070 1D, any revision thereto, and other FTA
~mplementing guidance, and applicable Federal statutes and regulations However, to the extent
that existing or subsequent Federal statutes or regulations conflict with the provisions of FTA
Circular 9070 ID or any revismn thereto, the Federal statutes or regulations will apply
c Ehgtble Project Activities Federal financial assistance awarded for the Project may be used
for ehg~ble capital projects specified under 49 U S C § 5310 and may include meal delivery
service to the extent permitted by 49 U S C § 53 lO(h)
d Transfer of Assets In addmon to the statutory authority to transfer Project assets provided
by 49 U S C § 5334(g), the Recipient may transfer faclhtles and eqmpment acquired with
financial assistance authorized for 49 U S C § 5311 to any recipient eligible to receive assistance
authorized by 49 U S C chapter 53 provided that the subrec~plent currently in possession of such
facilities or eqmpment consents to the transfer and the fac~htles or eqmpment will continue to be
used in accordance with the reqmrements ol' 49 U S C ~ 5311
Section 35 Special Requirements for Nonurbamzed Area Formula Projects The following
requirements apply to projects financed with Federal assistance authorized for 49 U S C § 5311
a State Procedures In general the Reclp~ent agrees to administer each ProJect financed under
49 U S C § 5311 ~n accordance wah FTA C~rcular 9040 1 D, any rews~on thereto, and other FTA
implementing gmdance and apphcable Federal statutes and regulations However, to the extent
that ex~mng or subsequent Federal statutes or regulations conflmt w~th the provis~ons of FTA
C~rcular 9040 ID or any rews~on thereto the Federal statutes or regulations will apply
b Ehglble Project Act~vmes Federal financial assistance prowded under the Grant Agreement
or Cooperative Agreement may be used for transit projects m areas other than urbanized areas
These projects must be ehgible for Federal financial assistance authorized for 49 U S C § 5311,
and may include purchase of service agreements w~th pmate providers of transit service and meal
dehvery service, to the extent pertained by 49 U S C § 531 I
c Transfer of Assets In addmon to the statuto/w authority to transfer Project assets provided
by 49 U S C § 5334(g) the Recipient may also transfer tacdmes and eqmpment acquired with
FTA MA(4} 10-1-97, Page 41
financial assistance authorized for 49 U S C § 5311 to any recipient eligible to receive assistance
under 49 U S C chapter 53, provided that the subreclplent currently in possession of those
facilities or equipment consents to the transfer and the facllmes or eqmpment will continue to be
used m accordance with the requirements of 49 U S C § 5311
d Restlnctions on Use of Formula Assistance for Operations Formula assistance authorized for
49 U S C § 5311 provided under the Grant Agreement or Cooperative Agreement for operating
assistance may be applied to the Net Project Cost of the subreclpient's operating expenses
incurred dunng the ProJect time period specified for the Project
e Int~rclty Transportation Each fiscal year, the Recipient agrees to spend for ~ntercity
transpo~ation projects at least fifteen (15) percent of its funds authorized for 49 U S C § 5311,
unless the state's chief executive officer has certified to FTA that the state's lnterclty bus service
needs are being adequately met
Section 36 Special Requirements for Research, Development, Demonstration, and Special
Studies pr~ects
a Project Report The Recipient agrees to prepare and make available a comprehensive report
on the results of the Project, the conclusions reached and the methods used
b Project Identification The Recipient agrees that each tangible product resulting from the
Grant Agreement or Cooperative Agreement shall be labeled with an appropriate sign or
designation stating that the Project has been financed w~th }-ederal assistance provided by the
U S Department of Transportation, Federal Transit Administration Unless wmved by FTA, this
requirement applies to all equipment, hardware, construction, reports data, or any similar items
produced under the Grant Agreement or Cooperative Agreement
Section 37 Special Reqmrements for a State Infrastructure Bank Project
a General Requirements The Recipient agrees to administer the Project ~n accordance with
(1) the requirements ofsecuon 350 of the National Highway System Designation Act of 1995, as
amendeg, (NHS Act), 23 U S C ~, 101 note, (2) the prows~ons ofFTA's NHS Guidelines, as may
be amended and any prehmma~y FTA guidance, (3) the provisions of the Cooperative Agreement
estabhshmg the State Infrastructure (SIB) program w~thm the state (entered into by the Federal
Highway Administrator, the Federal Transit Administrator and the authorized state official), and
(4) the provisions of the FTA Grant Agreement for the Project, except that any provision of this
Master Agreement that conflicts with any provision of FTA's NHS Gmdehnes, the provisions of
the Cooperative Agreement establishing the SIB program within the state or this Grant
Agreement will not apply to the Grant Agreement or the project thereunder
FTA MA(4) 10-1-97, Page 42
b Latest Requirements Apply The Recipient agrees to comply w~th and assures the comphance
of the SIB and each subrec;p~ent of all apphcable reqmrements for the SIB program, as those
requirements may be amended from t~me to t~me, except as FTA determines otherwise
c Transit Account L~m~tat~ons The Reopient agrees that the SIB will prowde Federal assistance
from tts Transit Account only for transit capital projects ehg~ble under section 350 of the NHS
Act, as amended, and that those projects will fulfill all reqmrements ~mposed on comparable
capital transit projects financed by FTA
d Ltm~tatlons on Accessing Federal Assistance tn Trans;t Account The Recipient understands
that the total amount of funds to be awarded for a Grant Agreement may not be ~mmedmtely
available for draw down Consequently, the state agrees to hm~t the amount of Federal assistance
~t draws down for depos;t m the Transit Account or,ts SIB to amounts that do not exceed the
hm~tattons specified mtts Grant Agreement or the Approved Project Budget for that Grant
Agreement
Section 38 D~sputes, Breaches, Defaults, or Other Litigation The Recipient agrees that FTA
has a vested interest m the settlement of any dispute, breach, default, or ht~gat~on ~nvolwng the
Project Accordingly
a Notification to FTA The Recipient agrees to not~fy FTA of any current or prospective major
dtspute, breach, default, or htlgat~on pertaining to the Project If the Recipient seeks to name the
Federal Government as a party to Imgat~on for any reason, m any forum, the Rec~ptent agrees to
~nform the FTA before doing so
b Federal Interest m Recovery_ The Federal Government retains the right to a proportionate
share based on the percentage of the Federal share committed to the Project, of any proceeds
derived from any third party recovery, except that hquldated damages recovered may be returned
to the Project Account in heu of returmng the Federal share to the Federal Government
c Enforcement The Recipient agrees to pursue all legal rights a~aflable under any third party
contract
d FTA Concurrence FTA reserves the right to concur m any compromise or settlement of any
clmm revolving Project and the Recipient
e Alternative D~spute Resolution FTA encourages the Recipient to use alternative d~spute
resolution procedures as may be appropriate
Section 39 Amendments to the Project
The Recipient agrees that a change m c~rcumstances affecting the Project causing an mcons, stency
w~th the terms of the Grant Agreement or Cooperat~,,e Agreement will require an amendment to
FTA MA~4) 10-1-97, Page 43
the Grant Agreement or Cooperative Agreement s~gned by the original signatories The Recipient
agrees that a change in the fi~ndamental information submitted in ~ts Apphcatmn will also require
an Amendment to its Application or the Grant Agreement or Cooperative Agreement
Section 40 Electronic Data Interchange Technology
To the extent approved by FTA, the Recipient may use electronic data interchange technology to
exchange information with FTA FTA reserves the right to determine whether the Recipient may
use electronic data interchange technology to execute legal documents pertaining to FTA
projects
Section 41 SeveraNhty
If any prowsion of the Grant Agreement or Cooperanve Agreement is held lnvahd, the remainder
of the Agreement shall not be affected thereby if such remmnder would then continue to conform
to the requirements of apphcable law
FTA MA(41 10-1-97, Page 44