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SUBAWARD NO.002 <br /> and acknowledge that'I'XDO'I'may also be listed as a titled owner of said assets, The Parties will <br /> work together with TXD0'f to the extent TXDOT may have an interest in the disposition of said <br /> assets, <br /> VIII, STANDARDS FOR FINANCIAL ADMINISTRATION <br /> AND PROGRAM INCOME <br /> 8.1 For pLlrI)0SeS of this Agreement, Sub-Recipient agrees that its standards for <br /> financial administration will conform to the requirements of 49 C.F.R, Part 18, §18,20, Except for <br /> income from royalties and proceeds from the sale of real property or equipment, Sub-lZecipient <br /> shall retain program income, if any, and apply such income to allowable capital or operating <br /> expenses. If federally funded, Program Income from royalties and proceeds from sale of real <br /> property or equipment shall be handled as specified in l7ederal Provisions, <br /> 8.2 Sub-Recipient shall comply with standards governing the receipt and application of <br /> program income as set forth in 49 C.F.R. §18.25, Program Income. Program income means gross <br /> income received by Sub-Recipient directly generated by a grant supported activity or earned only <br /> as a result of this Agreement. <br /> 8.3 Program income includes income from fees I'm services performed, form the use of <br /> rental or real services performied, from the use or rental of real or personal property acquired with <br /> grant funds, from the sale of commodities or items fabricated under an agreement similar to this <br /> Agreement, and from payments of principal and interest on loans made with grant funds. Except <br /> as otherwise provided in federal regulations, program income does not include interest on grant <br /> Funds,rebates,credits discounts,refunds,etc., and interestearned on any ofthem. Any advertising <br /> 1'evelILIC generated on or by Sub-Recipient-owned vehicles shall remain the pl-Operty 01' Sub- <br /> Recipient and such amounts shall be used to fund SU,b-recipieni,'s non-FTA funded transportation <br /> initiatives. <br /> IX. COORDINATION <br /> According to Title 43 of the Texas Administrative Code, §31,49, Sub Recipient will at all <br /> times coordinate the provision of public transportation services with other transportation operators <br /> in the area, both public and private, Sub-Recipient will furnish City copies of any agreements <br /> resulting from such coordination. Agreements that authorize the payment of project funds to <br /> another entity are subject to the approval requirements described in Article V, Subcontracts. <br /> X. LABOR PROTECTION PROVISIONS <br /> 10.1 Sub-Recipient agrees to follow and abide by any and all applicable labor provisions <br /> required by federal law or regulation and non-conflicting laws and Constitution of the State of <br /> Texas. If applicable, Sub-Recipient will comply with any of the labor protection provisions as <br /> listed below for the protection of employees in the mass passenger transportation ill(ILIStry ill the <br /> area where the transportation services are provided mider this Agreement: <br /> (a) The transportation services shall be carried out ill such a manner and upon <br /> such terms and conditions as will not adversely affect employees in the mass passenger <br /> Page 12 of 30 <br />