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7) In case of loss, theft, damaged, destroyed, or vandalized property, the City is required to <br />notify DNR within 48 hours of occurrence. Upon notification, DNR will submit appropriate <br />documents to the City for documentation, and to the US Forest Service for appropriate <br />action. If the property is insured, US Forest Service must receive a share of any insurance <br />proceeds equal to their ownership share in the property. If gross negligence is involved, the <br />Fire District may be required to pay fair market value for the FEPP or repair or replace the <br />property at the Fire District's expense. <br />Property Disposal: The City agrees to report, in a timely manner, all inoperable, cannibalized, <br />not in use, or seldom used FEPP to DNR for reallocation or disposal. DNR will conduct <br />reallocation or disposal activities at the City's facility. The City agrees to facilitate all required <br />activities and to obtain signed documents to complete the reallocation or disposal process. <br />Property Inventory/Audit: Upon request by DNR, the City agrees to make FEPP items <br />available for the purpose of conducting a physical inventory and to facilitate a program review. <br />The City shall provide access to and the right to examine all records, books, papers, or <br />documents relating to the FEPP to facilitate a State or Federal audit. The City is required to <br />maintain property records for a minimum of five years after acquisition of all non -consumable <br />FEPP (i.e., registration, insurance, final disposal). <br /><<Agreement No» Page 13 of 18 <br />74 <br />FLRA 4/7/2015 <br />