OAR 732-005-0041
Capital Item Requirements
(1)
Capital Items may be purchased with STF moneys:(a)
Incidental Use of a Capital Item for other Public Transportation Services is authorized if associated with Coordination to benefit the Elderly and People with Disabilities; and(b)
The Incidental Use will not substantially reduce the effective use of the Capital Item for the Elderly and People with Disabilities.(2)
The STF Agency will inventory the Capital Items purchased in whole or part with STF moneys. The inventory will include date of purchase, purchase price, percentage of STF moneys contributed to the purchase, the source of other funds, the authorized use and the Recipient using the Capital Item.(3)
The STF Agency will maintain continuing control of a Capital Item purchased in whole or part with Formula Program during the period of useful life established in accordance with subsection (4)(a) of this rule. The STF Agency may exert continuing control beyond the period of useful life, under its own authority. Continuing control is defined as use, management and disposal of a Capital Item.(4)
STF Agencies will use their own procedures for continuing control, excepting where specified by this section. At a minimum, STF Agencies will:(a)
Establish minimum useful life standards for Capital Items:(A)
Useful life may be based on standards for depreciation established by the Internal Revenue Service or other standard in reference to the specific type of capital; and(B)
For vehicles, the definition of useful life will be consistent with the policy established by the Division for vehicles financed with federal grant funds;(b)
Use the STF Agency’s own procedures for disposal of a Capital Item;(c)
Return the net proceeds from a sale of a Capital Item to the local STF. If other funds were used in the purchase, then only the proportion representing STF participation will be returned to the STF;(d)
Establish procedures to ensure that a Capital Item is maintained in safe operating condition, as appropriate;(e)
Establish procedures for transfer of a Capital Item to an eligible Recipient;(f)
Establish procedures for lease of a Capital Item to a Recipient;(g)
Establish insurance requirements adequate to protect the interests of the Transportation Users, the Recipient and the STF Agency, as appropriate;(h)
Ensure that facilities and real property will be used for the originally authorized purpose by use of a restrictive deed covenant, as feasible and appropriate; and(i)
Ensure that vehicles purchased in whole or in part with STF moneys are registered with the Oregon Department of Transportation Driver and Motor Vehicle Services Division in the name of the STF Agency or in the name of the Recipient receiving the equipment:(A)
If the vehicle is registered in the name of the Recipient receiving the equipment, and that Recipient is not the STF Agency, the STF Agency will be listed on the vehicle title as security interest holder;(B)
For leased vehicles, the lease will be recorded on the vehicle title, in accordance with Oregon Department of Transportation Driver and Motor Vehicle Services Division procedures;(C)
Vehicles purchased with other local, state or federal funds in addition to STF moneys will be titled in accordance to the requirements of the specific source. The STF Agency will be listed on the title as a security interest holder; and(D)
The STF Agency may release their security interest in the vehicle after the defined period of useful life is past.(5)
The STF Agency will notify the Division of the sale or transfer of the Capital Item purchased with STF moneys and will report the use of proceeds from the sale.(6)
The Division may establish requirements for Capital items purchased with Discretionary Program moneys, including and not limited to:(a)
A minimum threshold of insurance coverage,(b)
Annual inspections of vehicles used for Public Transportation Programs; and(c)
A requirement that the use of facilities and real property will be secured by a restrictive deed covenant, as feasible and appropriate.
Source:
Rule 732-005-0041 — Capital Item Requirements, https://secure.sos.state.or.us/oard/view.action?ruleNumber=732-005-0041.