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HomeMy WebLinkAboutRES 564 Draft 01 2006-2008 ppMfY os „ t7~' ~C.- ~il~i COUNTY OF HAWAII STATE OF HAWAII J~~ f~0i N'~~~ RESOLUTION NO. 564 Q8 RESOLUTION AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAII DEPARTMENT OF TRANSPORTATION, PURSUANT TO HRS 46-7, FOR A DATA GRANT FOR THE HAWAII COUNTY POLICE DEPARTMENT WHEREAS, the State of F{awai'i Department of Transportation, Public Affairs Office -Safe Community Program has authorized funding towards the Hawaii County Police Department's Data Grant Program; and WHEREAS, the purpose of the program is to establish a statewide traffic data system and to ensure compliance with national standards; and WHEREAS, this grant funds will be used to attend traffic data records committee monthly meetings; to hire a consultant to implement traffic forms and data into the department's RMS system and create an export utility to transfer electronic data; to purchase heavy duty laptops for the electronic citation project and the electronic transfer of crash data from patrol vehicles; and to attend the National Traffic Records Forum; and WHEREAS, the funds provided by the State of Hawaii Department of Transportation are derived from grants provided by the federal government; and WHEREAS, Hawaii Revised Statutes, Section 46-7, requires that county departments obtain the consent of the council to enter into agreements with the federal or state governments respecting action to be taken pursuant to any of the powers granted by law to furnish, expend, and receive any funds or other assistance in connection with projects being or to be undertaken pursuant to those powers. N01010, fiFIEREF01~1=, ale I`f I~ESOLV~17 ~Y THE COUNCIL OF 1`HE COUNTY OF HA1~VA1`I, in accordance with section 46-7, Hawaii Revised Statutes, that the Mayor of the County of Hawaii is authorized to execute, on behalf of the County, an agreement and related documents, to enable the County to execute its Data Grant Program as described in the Police Department's Grant Application, attached hereto and incorporated herein by reference as Exhibit "A". IT FURTHER RE~OL~VEL1 that the County Clerk of the County of Hawaii shall transmit copies of this resolution to the Office of the Mayor, the Finance and Police Departments. Dated at xilo ,Hawaii, this 9th day of April , 2008. IN ODUCED 13Y: COUNCIL MEM UN Y OF HAWAII COUNTY COUNCIL ROLL CALL VOTE County of Hawaii AYES NOES A13S LX Hilo, Hawaii FORD X I hereby certify that the foregoing RESOLUTION was by the HIGH X vote indicated to the right hereof adopted by the COUNCIL of HOFFMANN X the County of Hawaii on _A~ril 9, 2008 1KEDA X IACOBSON ATTEST NAEOLE X P[LAGO X YAGONG X YOSHIMOTO 8 0 1 0 ~ V. Reference C-1087/FC-264 di . COiJNTY CLERK AIRMA PRESIDING OFFICER RESOLUTION NO. r APPLICATION FOR ,,.GHWAY SAFETY PROJECT REIMb.,.iSEMENT GRANT STATE OF HAWAII SAFE COMMUNITY PROGRAM -SAFETY OFFICE FOR SCP-SO USE ONLY PART Z (Applicant to Complete) Project Number: T ROB-03C05-H-Ol~ 1. APPLICANT (Name and Address) Title: HCPD DATA GRANT Hawaii County Police Department 399 Kapiolani Street Standard Area Tvw.(~y~ 'psc~e-rd~ Hilo, Hawaii 96720 2. AGENCY UNIT (Name and Address) Effective Date:10-1-07 Hawaii County Police Department 399 Kapiolani Street, Hilo, Hawaii 96720 Federal Funds Obligated $~•S~OpY~ FY Funds OB Addendum YES ENO 3. DURATION (Month, Day, Year) A. Grant Period B. Project Period Benefit of STATE COUNTY From: 10-01-07 From: 10-01-07 To: 09-30-08 To: 09-30-08 4. LOCATION OF PROJECT 5a. Type of Application (Check Appropriate Item(s) Hawaii County Police Department x Initial Revision -Continuation 399 Kapiolani Street Hilo, Hawaii 96720 5b. REIMBURSEMENT SCHEDULE DESIRED Monthly x Quarterly 6. PROJECT DESCRIPTION (Schedule A) 7. PROJECT OBJECTIVES AND TASKS SUMMARY FROM SCHEDULE A The project objectives are to establish a statewide traffic data syst~,m and to ensure compliance with national standards. 8. BUDGET (Schedule B) 8A. COST CATEGORY Total Expenditures Grant Period Prior Years Project Period (1) Personal Services $17,620.00 $0 (2) Consultant Services $30,000.00 $0 (3) Commodities $27,380.00 $0 (9) Other Direct/Indirect Costs $0 $0 TOTAL ESTIMATED COSTS (Inc. Non-Fed. Share) $75,000.00 $0 8B. SOURCE OF FUNDS C. SPECIFY BOW NON-FEDERAL (1) Federal (100 8 of TOTAL) $75,000.00 SHARE WILL HE PROVIDED (2) Applicant Age 9. MILESTONES (Schedule C) 10. AGREEMENT OF UNDERSTANDING AND COMPLIANCE `See Schedule D, attached) il. ACCEPTANCE OF CONDITIONS. It is understood and agreed by the undersigned that a reimbursement grant received as a result of this application is subject to public Law 89-569 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U. S. Department of Transportation and the State of Hawaii. Zt is expressly agreed that this project constitutes-an official part of the Hawaii Highway Safety Program and that said applicant agency will meet the requirements as set forth herein, including accompanying schedules A, B,C s D, which are incorporated herein and made a part of this application. Authorization to proceed with this Highway Safety Project is requested. 11A. PROJECT IRECTOR 11B. AVT R NG ICIAL OF AGENCY UNIT Signature Signature --27am --LP.WREN E- ---MAfiUNA------ - - Names- -HARRY -KIM- - - - - - - - Titl POLICE CHIEF Title MAYOR Date EP ~ eFj Date ~ Q~~ To be prepared by applicant, use separate shee~s as required. Form HS 3-71 Rev. 7/19/00 EXHIBIT "A" PART II (Safe Community Program - Safety Office to complete) Project Number: T r~O~i-O o6- -O 1. ADDENDUM (For MVSO Use Only) 2. AGREEMENT AND AUTHORIZATION TO PROCEED by State Official Responsible to Governor for Administration of the State Highway Safety Program. A. Effective Da O~p10py 1~20CT~- B. Federal Fund 0 igated C. Approval Da Il I~1 8 D. Signature ~ ' E. Name Gordon K K Hong,/ F. Title Highway Safety Manag _ IN WITNESS WHEREOFF, the parties hereto have caused this contract to be executed. APPROVED AS TO FORM AND LEGALTI'Y: p~ Corp ation Co sel STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On October 5, 2007, before me personally appeared DIXIE KAETSU, to me personally known, who, being by me duly sworn, did say that DIXIE KAETSU is the Managing Director of the County of Hawaii, a municipal corporation of the State of Hawaii; that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawaii; that the foregoing instrument was signed and sealed in behaff of the County of Hawaii by authority given to said Mayor of the County of Hawaii by Section 5-1.3(g) of the County Charter, County of Hawaii (2000), as amended, and assigned by the Mayor to the Managing Director pursuant to Section 6-1.3(h) of the County Charter; and said DIXIE KAETSU acknowledged said instrument to be the free act and deed of said County of Hawaii. JEAN (ERNES Notary Public, State of Hawaii My commission expires: 11/1/2009 ~N v i e.Rti _ ~ ~pTARr tP ~ `OUgL`~ 9TF 0 F H PAP t EXHI.BIT II SCHEDULE A SCHEDULE A HCPD DATA GRANT PROJECT MISSION/GOAL The goal is the reduction of total fatalities within the County of Hawaii by 10% from 39 to 37 by FFY 2008. HPD will also determine effectiveness by the completion of the Police Accident Reports, and acquisitions of lap tops for the electronic transfer of information to RM5, and begin electronic citations project. PROBLEM IDENTIFICATION Hawaii continues to have a traffic safety problem and the need to identify where the problems aze within the State. Please see Table I for Hawaii's Summary of Traffic Demographics. Table I Hawaii Summary of Traffic Demographics 2001-2005 Yea Populatio License Registere VMT Traffic Fatalit Alcohol Alcoho r n d d (million Fatalitie y Rate Involve I Drivers Vehicles s) s d Involve Fatalitie d s 200 1,222,01 787,82 986,555 8,142.2 140 1.6 53 37.9% 1 1 0 200 1,234,51 814,66 1,013,59 8,937.3 119 13 45 37.8% 2 4 8 4 200 1,248,75 834,I8 1,057,62 9,325.0 133 1.4 7I 53.4% 3 5 8 5 200 1,262,84 843,87 1,100,64 9,734.6 142 1.6 60 42.3% 4 0 6 6 200 1,275,19 856,16 1,149,40 10,129.1 140 1.4 67 47.9% 5 4 3 3 Over the past forty yeazs states and local governments have built a wide range of information systems to support their information needs relating to traffic safety. These systems include; 1) Traffic Crash Systems; 2) Roadway Inventory Systems; 3) Traffic Citation and Adjudication Systems; 4) Emergency MedicaVInjury prevention Systems; 5) Driver Licensing and Driver History Systems; and 6) Vehicle Registration Systems. The information systems within each state and local agency have traditionally been designed and operated to support the specific needs of the one or more business processes within the owner agency. Since these systems began to appear in the 1960s they have become `mission critical" to their owner agepaies Many have gone through one or-mote major overhauls during their life as technology and needs changed. Today, as we look toward the traffic safety information needs of the 21 S` century, and the demands for all public agencies to have data driven, performance based safety programs; the traffic safety data community is faced with the challenge of re-visiting the design and operation o these systems. All indications aze that federal and state traffic safety programs will need timely, accurate and accessible data covering all aspects of the traffic safety azena in order to properly identify problems, select countermeasures, monitor countermeasure programs and to evaluate the effectiveness of those programs, Future safety program funding will be tied to the ability of the traffic safety community to: ¦ Prove what, and where the problems aze. ¦ Identity, using data on likely costs and impact, those countermeasures that aze most IikeIy to have the greatest return on investments of funding scale and staff resources. ¦ Prioritize problems and countermeasures based on hard data. Monitor the implementation of countermeasures. ¦ Document the effectiveness of the safety improvement programs. It is essential that HCPD participate in the traffic records management and continue to upgrade its capacity. STRATEGIES I . Participate in Traffic Records Committee and Subcommittees and to attend monthly and special meetings. One Sergeant and'Officer to attend the Annual National Traffic Records Forum. 2. Hire a consultant to implement traffic forms and data into HCPD's RMS system and create and export utility to transfer electronic data. 3. Purchase sevc~? heavy-duty "Ruggedized" lap top computers with connectors and vehicle mounts for the electronic citation project and the electronic transfer of crash data from patrol vehicles. SOLUTION The Hawaii County Police Department (HCPD) will participate in the Hawaii Traffic Records Coordinating Committee, be part of the revision of the Police Accident Reporting (PAR) form, upgrade to electronic citations and develop an electronic format to send crash data to HDOT. EVALUATION The evaluation will be based on the reduction of total fatalities within the County of Hawaii by 10% from 39 to 37 by FFY 2008. HPD will also determine effectiveness by the completion of the PARS, and acquisitions of lap tops for the electronic transfer of information to RMS, and begin electronic citations project. EXHIBIT III SCHEDULE B SCHEDULE B (1) PERSONAL SERVICES Employee Salaries and Benefits Position Title: Sergeant/Officer Salary: $ 30.00 Average /hour Fringe Benefit Rate:_ °lo Time to be spent on project: 40 hours x 1.5 (travel overtime) Total Salaries and Benefits: $1,800.00 Air Travel To: Florida From: Hilo. HI X 2 people Cost: $ 3,500.00* Inter State To: Honolulu. HI From: Hilo, HI Cost: $ 7,000.00* Intea State Total Air Travel: $ 10.500.00* Surface Travel Car Rental: for 9 days (Interstate, Intrastate) $ 450.00* Total Surface Travel: $ 450.00* Per Diem Inter State: 8 days @ $ 145 per day X 2 people Total: $ 2,320.00* Intra State: 36 X lday@ $ 20 per day Total: $ 720.00* Total Per Diem: $ 3,040.00* Tuition, Course, Registration and Misc. Fees Traffic Forum Registration Fee, Excess Lodging, Misc. $ 1.830.00 Total Tuition and Misc.: $ 1,830.00* TOTAL PERSONAL SERVICES: $ 17,620.00* SCHEDULE B (Continued) (2) CONSULTANT SERVICES hours @ $ per hour( fixed contract rate RMS) $ 30,000.00 Travel: $ Overhead ( % of Total): $ TOTAL CONSULTANT SERVICES: $ 30,000.00 (3) COMMODITIES , Office Supplies: Panasonic "Tough Book" Lap Tops ~(0 $ 27,380.00 Other Expendable Materials: $ TOTAL COMMODITIES: S 27,380.00 (4) OTHER DIRECTfINDIRECT COSTS Office Space ( sq. ft. @ $ per sq. ft.): $ Office Equipment (Attach detailed equipment schedule): $ Puchased: $ Leased: $ of Shared Equipment: $ Other Equipment (Specify type and cost on an attached schedule.): $ Utilities ( % used for project): ~ $ -Maintenance ( % used for project): $ E.D.P. Services ( hr. @ per hour): $ -Printing: $ Communications: $ -Project Income: $ TOTAL OTHER DIRECT/INDIRECT COST: $ Indirect costs not exceed 10% of total salaries Federal (Shaze) Funds Requested* $75,000.00* Agency (Share) Budget Item $ TOTAL PROJECT COST: $ 75,000.00 Note: Identify all costs to be reimbursed by Federal funds with an asterisk EXHIBIT IV SCHEDULE C SCHEDULE C HCPD Roadblock Program MILESTONES Month Activit October 2007-September 2008 Attend traffic data records committee monthly meetings. October 2007-March 2008 Purchase heavy duty lap tops to begin field testing the electronic input and transfer of citations and crash reports. January 2008-June 2008 Implement new MVC Form and hire a consultant to implement the form on the department's RMS and create an Export Utility to transfer traffic dada. July 2008 Attend the National Traffic Records Forum. EXHIBIT V SCHEDULE D SCHEDULE D Agreement of Understanding & Compliance Project Number: THIS AGREEMENT made and entered into by and between the STATE OF HAWAII by and through its Director of Transportation, hereinafter refereed to as "State," and the Governmental Unit named in this application, hereinafter referred to as "Applicant." WHEREAS, the National Highway Safety Act of 1966 (Public Law 89-564) provides Federal funds to the STATE for approved highway safety projects, and WHEREAS, STATE may make said funds available to various state, county or municipal agencies or governments or political subdivisions upon application and approval by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, and WHEREAS, STATE is obligated to reimburse the UNITED STATES DEPARTMENT OF TRANSPORTATION out of its funds for any ineligible or unauthorized expenditures for which Federal funds have been claimed and payment received, and WHEREAS, the above name APPLICANT has submitted an application for Federal funds for highway safety projects. NOW, THEREFORE, IN CONSIDERATION OF MUTUAL PROMISES AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: I. Reimbursement of Eligible Expenditures A. It is mutually agreed and promised that upon written application by APPLICANT and approval by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, STATE shall obligate said Federal funds to APPLICANT'S account for reimbursement of eligible expenditures as set forth in the application. B. It is mutually agreed and promised that APPLICANT shall reimburse STATE for any ineligible or unauthorized expenditures for which Federal funds have been claimed and payment received as determined by a State or Federal audit. Costs aze not allowable for construction, rehabilitation, remodeling, or for office furnishings and fixtures -for State, local or private buildings or structures. The following are examples of items considered as furnishings or fixtures, for which reimbursement is not eligible: Desks Credenzas Storage Cabinets Chairs Bookcases Portable Partitions Tables Filing Cabinets Pictures, Wall Clocks Shelving Floor Coverings Draperies Coat Racks Office Planters Fixed LightinglLamps C. It is further agreed and promised that where reimbursement is made to APPLICANT in installments, STATE shall have the right to withhold any installments to make up reimbursement received for any ineligible or unauthorized expenditures until such time as the ineligible claim is made up or corrected by APPLICANT. II. Property Agreement A. It is mutually agreed and promised that the APPLICANT shall immediately notify the STATE if any equipment purchased under this project ceases to be used in the manner as set forth by the project agreement. In such event, APPLICANT further agrees to either give credit to the project cost or to another active Highway Safety project for the residual value ofsuch-equipment in an amount to be determined by the STATE, or to transfer or otherwise dispose of such equipment as directed by STATE. B. It is mutually agreed and promised by the APPLICANT that no purchased equipment under this project will be conveyed, sold, salvaged, transferred, etc. without the express written approval of the STATE. C. It is mutually agreed and promised that the APPLICANT shall maintain or cause to be maintained for its useful life, any equipment purchased under this project. III. Application of Hatch Act A. It is mutually agreed and promised that the APPLICANT shall notify all employees of the APPLICANT, whose principal employment is in connection with any Highway Safety project, firianced in whole or in part by loans or grants under the Highway Safety Act of 1966, of the provisions of Section 12 (a) of the Hatch Act [5 U.S.C. 118K (a)]. IV. Equal Opportunity A. It is mutually agreed and promised that pursuant to the requirements of Section 22 (a) of the Federal-Aid Highway Act of 1968, Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the Age Discrimination Act of 1975, the APPLICANT, as a condition to receiving approval of this application submitted under the Highway Safety Act of 1966, hereby gives its assurance that employment in connection with the subject Highway Safety Program project will be provided without regard to race, color, creed, sex, handicap, age, or national origin. The APPLICANT further agrees that, as a condition to receiving approval of this application, it will be subject to, and will comply with, Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 ?J.S.C. 2000d to 2000d-4 (hereinafter referred to as the Act), and all applicable requirements pursuant to the Regulations ofthe Departrrierit of Commerce ~tle IS, Code of Federal Regulations, Part 8, which have been adopted by the Department of Transportation, and hereinafter referred to as the Regulations), to the end that, in accordance with the Act and the Regulations, no person in the United States shall on the ground of race, color, creed, sex, handicap, age, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under the'subject Highway Safety Program or project. B. It is mutually agreed and promised that if the APPLICANT fails or refuses to comply with its undertaking as set forth in these provisions, the STATE of the UNITED STATES DEPARTMENT OF TRANSPORTATION may take any or all of these following actions. (1) Cancel, terminate, or suspend in whole or in part the agreement, contract, or other arrangement with respect to which the failure or refusal occurred; and (2) Refrain from extending any further Federal financial assistance to the applicant agency under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from the applicant agency. V.Non-duplication of Grant Fund Expendih;res A. It is mutually agreed and promised that the APPLICANT has no ongoing or completed projects under agreement with any other Federal-fund source which duplicate or overlap any work contemplated or described in this project. B. It is mutually agreed and promised that the APPLICANT will either revise this project or revise any pending or proposed request for other Federal grant funds which would duplicate or overlap work under this project to exclude any such duplication of grant fund expenditures. C. It is further mutually agreed and understood that the APPLICANT shall reimburse the STATE OF HAWAII for any such duplicate expenditures for which Federal grant funds have been claimed and payment received as determined by State or Federal audit. VI. Project Income and Applicable Credits A. It is mutually agreed and understood that the APPLICANT shall apply all proceeds or credits generated under the project, such as but not restricted to: The sale of real or personal property royalties received from copyrights and patents, sale of publications or from personal or incidental services, to the project in accordance with OMB Circulaz A-87 (FMC 74-7) or A-21, as applicable and NHTSA/FHWA Order 460-4/7510.1. VII. Copyrights and Patents A. It is mutually agreed that any copyrightable materials produced in the course of a project may be the property of the State or applicant agency; however, provisions should be made to obtain for the United States Government, the State Governments and their political subdivisions aroyalty-free nonexclusive, and irrevocable license to use in any manner such copyrightable material. B. It is mutually agreed that the ownership of all rights accruing from any patentable discoveries or inventions resulting from a project should be covered in the agreement. An irrevocable, nonexclusive, nontransferable, and royalty-free license to practice each discovery or invention in the manufacture, use and disposition, according to law, of any article or material, and in the use of any method developed as part of the work under the agreement should be obtained for the United States Government, the SCate Governments and their political subdivisions. VIII. Certification Regarding Debarment and Suspension A. Instructions for Certification 1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 3. The prospective lower tier participant shall_provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms covered transaction, "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definition and Coverage sections of 49 CFR Part 29. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower t;er covered transaction with a person who is proposed for debarment under 48 CFR Part9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this proposal that is it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. (See below.) 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR Part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties Excluded from Federal Procurement and Non-procurement List. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under pazagaph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debazment under 48 CFR Part 9, subpart 9.4, suspended, debarred, ineligible, or voluntazily excluded from participation in this transaction, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. IX. Certification Regazding Debazment, Suspension, Ineligibility and Voluntary Exclusion - Lower Tier Covered Transactions 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participants shall attach an explanation to this proposal. X. Minority Business Enterprise Requirements It is the policy of the Department of Transportation that minority business enterprises, as defined in 49 CFR Part 23, shall have the maximum opportunity to - - - participate in the performance of contracts financed in whole or in part with Federal funds under this agreement. Consequently, the MBE requirements of 49 CFR Part 23 apply to this agreement. The recipient or its contractor agrees to ensure that minority business enterprises as defined in 49 CFR Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds provided under this agreement. In this regard, all recipients or contractors shall take all necessary and reasonable steps in accordance with 49 CFR Part 23 to ensure that minority L'usiness enterprises have the maximum opportunity to compete for and perform contracts. Recipients and their contractors shall not discriminate on the basis of race, color, national origin, or sex in the awazd and performance ofDOT-assisted contracts. XI. Requirements A. It is mutually agreed and promised that the applicant shall follow the State and Federal requirements and guidelines set forth in the State of Hawaii Project Procedures Manual as amended. All project expenditure records are to be retained for at least three years after the date of the final expenditure report. XII. Authorization to Proceed A. It is mutually agreed between the STATE and the APPLICANT that this AGREEMENT OF UNDERSTANDING AND COMPLIANCE shall become effective upon the STATE'S agreement and authorization to proceed as set forth in PART II (2) of this application.