Section 6.10. Property management and disposition.

 

(1)  In this section,"useful life" means:

(a) Vans, autos, station wagons, and body on chassis buses — 100,000 miles;

(b) Small heavy duty single unit transit buses (up to 35 feet) — 10 years;

(c) Heavy duty single unit transit buses (35-40 feet) — 12 years.

(2)  Prior to requesting disposal of vehicles which have not reached their useful life, the grant recipient shall seek to transfer the vehicles to other eligible applicants under this chapter. The transfer of equipment requires department approval. If a transfer cannot be accomplished, the grant recipient shall request disposition instructions from the department.

(3)  The grant recipient shall request disposal instructions from the department when it desires to dispose of any equipment or facilities purchased with federal section 18 funds. The department shall instruct the grant recipient to dispose of the equipment or facilities in the most efficient and practical manner.

(4)  Proceeds received from the disposition of equipment and facilities may be retained by the grant recipient but shall be used for mass transit purposes, such as the following:

(a) To purchase additional capital equipment.

(b) To pay expenses of the operating assistance project.

(c) To pay the local share of capital assistance projects.

(d) To pay the local share of operating assistance projects.

(5)  Any use by the grant recipient of proceeds from the disposal of equipment or facilities requires prior approval of the department. Records shall be maintained by the grant recipient to permit tracing of the use made of the disposal proceeds.

(6)  The grant recipient shall ensure that preventive maintenance is performed on the equipment and facilities purchased with federal section 18 funds at a level no less than the manufacturer's recommended specifications.

History: Cr. Register, December, 1987, No. 384 , eff. 1-1-88; r. and recr. Register, October, 1989, No. 406 , eff. 11-1-89.