FS-2700-4a Special Use Permit Granger-Thye Supplement

Authorization ID

FS-2700-4a (03/06)

Contact ID

USDA Forest Service

Expiration

OMB 0596-0082
U.S. DEPARTMENT OF AGRICULTURE
Forest Service
APPENDIX A
GRANGER-THYE SUPPLEMENT TO
SPECIAL USE PERMIT FS-2700-4
AUTHORITY: Section 7 of the Granger-Thye Act, 16 U.S.C. 580d

I. AUTHORITY AND GENERAL TERMS OF THE PERMIT
J. Risks. The holder assumes all risk of loss of the property. Loss to the property may result from but is
not limited to theft, vandalism, fire and any fire-fighting activities (including prescribed burns),
avalanches, rising waters, winds, falling limbs or trees, and acts of God. If the authorized improvements
are destroyed or substantially damaged, the authorized officer shall conduct an analysis to determine
whether the improvements can be safely occupied in the future and whether rebuilding should be
allowed. If rebuilding is not allowed, this permit shall terminate.
III. RESPONSIBILITIES OF THE HOLDER
G. Alteration of Government Improvements. If during the term of this permit any government-owned
improvements are altered in any way, the material, equipment, fixtures or other appurtenances that are
affixed to or made a part of those improvements in connection with the alteration shall become the
property of the United States, regardless of whether the work is performed by the holder or any other
party. The holder shall not be entitled to any compensation for that property, other than to the extent it
qualifies for fee offset under clause VI.D.
H. Government Maintenance, Reconditioning, Renovation and Improvement Plan. Government
maintenance and reconditioning projects shall be performed in accordance with an annual Granger-Thye
fee offset agreement as provided in clause VI.D.2. of this permit.
I. Holder Maintenance, Reconditioning or Renovation Plan. The holder at its expense shall perform
holder maintenance, reconditioning, or renovation as defined in clause VI.D.1(d) of this permit under a
holder maintenance, reconditioning, or renovation plan approved by the Forest Service. The holder
maintenance, reconditioning, or renovation plan shall describe required holder maintenance,
reconditioning, or renovation responsibilities and their frequency. The work performed under this plan
shall not be subject to fee offset under clause VI.D.2.
The holder shall maintain all equipment and other facilities on site in good repair and free of leakage of
lubricants, fuel, coolants, and hydraulic fluid. The holder shall properly dispose of all hazardous wastecontaminated soil, vegetation, debris; vehicle oil filters (drained of free-flowing oil); oily rags; and
waste oil in accordance with local, State, and Federal regulations off of Government property and shall
transport such substances, or arrange to have such substances transported in accordance with State and
Federal regulations.

IV. LIABILITY

C. 1 Insurance. The holder shall furnish proof of insurance, such as a certificate of insurance, to the
authorized officer prior to issuance of this permit and each year thereafter that this permit is in effect.
The Forest Service reserves the right to review and approve the insurance policy prior to issuance. The
holder shall send an authenticated copy of any insurance policy obtained pursuant to this clause to the
authorized officer immediately upon issuance of the policy. Any insurance policies obtained by the
holder pursuant to this clause shall name the United States as an additional insured, and the additional
insured provision shall provide for insurance coverage for the United States as required under this
clause. Such policies shall also specify that the insurance company shall give 30 days' prior written
notice to the authorized officer of cancellation of or any modification to the policies. The certificate of
insurance, the authenticated copy of the insurance policy, and written notice of cancellation or
modification of insurance policies should be sent to [insert mailing address of administering office].
Minimum amounts of coverage and other insurance requirements are subject to change at the sole
discretion of the authorized officer on the anniversary date of this permit.

C.2 Liability Insurance. The holder shall have in force liability insurance covering losses associated
with the use and occupancy authorized by this permit arising from personal injury or death and thirdparty property damage in the minimum amount of:
$ _____ for injury or death to one person per occurrence,
$ _____ for injury or death to more than one person per occurrence, and
$ _____ for third-party property damage per occurrence.

C.2 Liability Insurance. The holder shall have in force liability insurance covering losses associated
with the use and occupancy authorized by this permit arising from personal injury or death and thirdparty property damage in the minimum amount of $ _____ as a combined single limit per occurrence.
< Use the following clause when the authorized officer has elected to require property insurance.
Identify the specific property to be insured. Specify whether the insurance will be based on
replacement in kind or functional replacement and specify the value of the improvement [the
amount of insurance must represent 80 to 100% of the value of the property.] Do not require
property insurance for roads or underground utilities.
C.3 Property Insurance. The holder shall have in force property insurance for [identify the federal
property to be insured] in the minimum amount of [$_____], which represents ["replacement in
kind" or "functional replacement"] of the insured property. The types of loss to be covered by this
clause shall include but not be limited to damage to the government-owned improvements identified
herein. At the sole discretion of the authorized officer, the Forest Service may require the holder to use
all proceeds from property damage insurance policies to repair, rebuild, restore, or replace damaged
government property covered by the policy, or may obtain payment of those proceeds from the
concessionaire or the insurance company.

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C.4. Hazardous Materials. Depending on the holder's operations, the Forest Service may require the
holder to demonstrate the availability of funds to address any release or threatened release of hazardous
materials that may occur in connection with the holder's use and occupancy. Any requirements imposed
would be established on a case-by-case basis by the authorized officer based on the degree of
environmental risk from the holder's operations. The use and storage of normal maintenance items in
nominal amounts would generally not trigger financial assurance requirements.
VI. FEES

D. Granger-Thye Fee Offset. Pursuant to 16 U.S.C. 580d, the Forest Service may offset all or part of
the permit fee by the amount paid by the holder for renovation, reconditioning, improvement, and
maintenance deemed to be the government’s responsibility, as defined below, of government-owned
improvements and their associated land.
1. Definitions
(a) Maintenance. Actions taken to keep fixed assets in acceptable condition. Maintenance includes
preventive maintenance, normal repairs, replacement of parts and structural components, and other
activities needed to preserve a fixed asset so that it continues to provide acceptable service and achieves
its expected life. Maintenance includes work needed to meet laws, regulations, codes, and other legal
direction as long as the original intent or purpose of the fixed asset is not changed. Maintenance
excludes activities aimed at expanding capacity of an asset or otherwise upgrading it to serve needs
different from or significantly greater than those originally intended, such as construction of new
facilities.
(b) Improvement. Advancing a fixed asset to a better quality or state. Improvement includes
replacement. Replacement means substitution or exchange of an existing fixed asset or component with
one having essentially the same capacity and purpose. Improvement is always the responsibility of the
Government rather than the holder.
(c) Reconditioning or Renovation. A type of maintenance that rehabilitates an existing fixed asset or
any of its components in order to restore the functionality or life of the asset. Reconditioning and
renovation do not include construction of new facilities.
(d) Holder Maintenance, Reconditioning, or Renovation. Maintenance, reconditioning, or renovation
that neither materially adds to the value of the property nor appreciably prolongs its life. The work
serves only to keep the facility in an ordinary, efficient operating condition. From an accounting or tax
perspective, it is work that may be expensed, but not capitalized. Examples include but are not limited
to interior decorating, interior painting, vandalism repair, repair of broken windows, light bulb
replacement, cleaning, unplugging drains, drive belt replacement, preventive maintenance, lubrication of
motors, greasing, servicing, inspecting, oiling, adjusting, tightening, aligning, watering, weeding,

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sweeping, waxing, refinishing picnic tables, routine housekeeping, and general snow removal. In
fulfilling these responsibilities, the holder shall obtain any licenses and certified inspections required by
regulatory agencies and follow state and local laws, regulations, and ordinances and industry standards
or codes applicable to the permitted operation.
(e) Government Maintenance, Reconditioning, Renovation, or Improvement. Maintenance
reconditioning, renovation, or improvement that arrests deterioration, improves and upgrades facilities,
and appreciably prolongs the life of the property. Examples include but are not limited to installing a
new roof, new floor, or new siding; rebuilding boilers; replacing pipes, pumps, and motors; repairing or
maintaining the paths, lands, walks, walls, or landscaping adjacent to other government-owned
structures; replacing vault toilets with flush facilities, paving interior roads, upgrading facilities, and
installing utilities; and performing exterior painting and refinishing. Exterior painting that repairs
unsightly visual marks caused by everyday use does not meet the definition outlined above.
Government maintenance, reconditioning, renovation or improvement, whether performed by the holder
or the Forest Service, shall be performed at the sole discretion of the authorized officer.
2. Granger-Thye Fee Offset Agreement. Before issuance of this permit and before each operating
season thereafter, the Forest Service and the holder shall enter into an annual written Granger-Thye fee
offset agreement that specifies the government maintenance, reconditioning, renovation and
improvement to be used to offset the permit fee. The agreement shall specify whether the
concessionaire shall be required or has the option to enter into a collection agreement to have the Forest
Service perform the work. The agreement shall enumerate the portion of the permit fee to be offset by
the cost of work performed by the holder and the schedule for completion of offset work. Additionally,
the agreement shall specify the portion of the permit fee to be offset by the cost of work performed by
the Forest Service. The agreement shall specify which projects are to be used for offset that year and
shall also include standards for completion of the projects and examples of allowable costs.
3. Collection Agreements for Forest Service Oversight for Major Government Maintenance,
Reconditioning, Renovation, and Improvements performed by the holder. The Forest Service may
require the holder to enter into a collection agreement with the Forest Service to pay the cost of a Forest
Service employee administering and overseeing major government maintenance, reconditioning, and
improvement projects and offset those costs against the holder’s annual permit fee. For purposes of this
clause only, a major government maintenance, reconditioning, and improvement project is one costing $
or more. Allowable costs include monitoring to ascertain that work is being done to Forest
Service standards. Allowable costs do not include routine permit administration by the Forest Service.
If the Forest Service exercises this option, a separate collection agreement shall be executed by the
parties and made a part of this permit.

E. Holder Performed Fee Offset Work.
1. Work in Lieu of Cash Payments. Notwithstanding clause VI.B, the cost of work performed by the
holder pursuant to a Granger-Thye fee offset agreement as provided in clause VI.D.2 may be credited in
lieu of cash payments against the annual permit fee, provided that the work has been accomplished in
accordance with the Granger-Thye fee offset agreement, and has been accepted as completed by the
Forest Service before the end of the holder’s fiscal year. In the absence of an approved fee offset
agreement, payment shall be made in accordance with clause VI.B.

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2. Documentation of Expenses. Prior to reimbursement or credit for Granger-Thye fee-offset work, the
holder shall submit sufficient documentation to allow the authorized officer to determine that the costs
claimed are allocable to the Granger-Thye fee offset agreement, actual, reasonable, and not unallowable.
3. Final Payment. The Forest Service shall reconcile annually the actual permit fee against permit fee
payments made and credits for fee offset work. The holder shall pay any additional fees owed for the
past year’s operation within 30 days of billing.

4. Overpayment. Overpayment of the permit fee will be reimbursed by the Forest Service only if paid
pursuant to clause VI.B. Credit for offset work pursuant to clause VI.D.2 is limited to the amount of the
annual permit fee; expenses will not be reimbursed if they are greater than the annual permit fee.
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