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HomeMy WebLinkAboutRES 017 Draft 02 2010-2012-40 N. COUNTY OF HAWAII •� �• T� Of RESOLUTION NO. STATE OF HAWAII 17 11 ( DRAFT 2 ) RESOLUTION AUTHORIZING THE OFFICE OF THE MAYOR TO ENTER INTO AN AGREEMENT WITH THE STATE OF HAWAI'I DEPARTMENT OF TRANSPORTATION, PURSUANT TO HRS 46-7, FOR THE DEPARTMENT OF PUBLIC WORKS GPS UNITS GRANT WHEREAS, the State of Hawai'i Department of Transportation — State and Community Highway Safety Program has authorized funding for the Department of Public Works GPS Units grant; and WHEREAS, the Department of Public Works seeks to implement safety improvement projects based on trends in crash frequency, rate, and location information; and WHEREAS, the grant, derived from Federal funds, will be used by the Department of Public Works to purchase one hundred (100) GPS units for the Hawaii County Police Department to obtain crash data; and WHEREAS, the crash data will be processed by the Department of Public Works Traffic Division with their RoadSoft GIS software to generate crash trend reports for project planning; now, therefore, BE IT RESOLVED BY THE COUNCIL OF THE COUNTY OF HAWAII, 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, a grant agreement, attached hereto and incorporated herein by reference as EXHIBIT "A", and any related documents with the State of Hawaii Department of Transportation to enable the County to fund the purchase of one hundred (100) GPS units not to exceed $20,350, for use in crash location reporting. BE IT FINALLY RESOLVED that the County Clerk of the County of Hawaii shall transmit copies of this resolution to the Office of the Mayor, the Finance and Public Works Departments. Dated at H; 1c) , Hawaii, this 20th day of January 2011. INTRODUCED BY: F24�� - /- COUNCIL MEMBER, COUNTY OF HAWAII COUNTY COUNCIL County of Hawai' i Hilo, Hawai' i I hereby certify that the foregoing RESOLUTION was by the vote indicated to the right hereof adopted by the COUNCIL of the Countyofflawai'ion January 20, 2011 ATTEST: i 1 ,- COUNTY CLERK CHAIRPERSON & PRESIDING OFFICE 2 ROLL CALL VOTE Reference: C-31.2/FC-10 RESOLUTION NO. 17 11 AYES NOES ABS EX BLAS X FORD X HOFFMANN X IKEDA X ONISHI X PILAGO X SMART X YAGONG X YOSHIMOTO X 7 0 2 0 Reference: C-31.2/FC-10 RESOLUTION NO. 17 11 STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT Grant No: Page 1 To be completed by applicant agency) 1. Grant Title GPS Equipment for Hawaii Police Department Crash Location Reporting 2. Name and Address of Applicant Agency 4. Duration Department of Public Works Month — Day — Year 101 Pauahi St., Ste. 7 Hilo, HI 96720-4224 A. Grant Period From: To: 3. Agency Unit to Handle Grant (Name and Address) Traffic Division 108 Railroad Ave. B. Project Period Hilo, HI 96720 From: To: 5. Location of Project 6a. Type of Application Hawaii County (Check Appropriate Item) ®Initial ❑Revision ❑Continuation 6b. Reimbursement Schedule Desired ❑Monthly ❑Quarterly 7. Grant Description (Summarize the grant plan covering activities that address the major goals and objectives in approximately 100 words. Limit to 6 lines.) The purpose of the subject grant is for the Department of Public Works (DPW) to assist the Hawaii Police Department (HPD) with purchasing GPS units to be used for crash location reporting. HPD currently does not use GPS for crash location reporting. The reason for DPW's involvement in this project and our push for more accurate crash location information is the Traffic Division's desire to proactively implement safety improvement projects based on crash frequency, rate, and trend information. The plan is for DPW to purchase 100 GPS units for HPD. Transportation asset management software (RoadSoft GIS) has already been implemented by DPW and will be used to upload crash information to generate crash trend reports for project planning. 8. Federal funds allocated under this agreement shall not exceed $20,350 9. Approval Signatures Acceptance of Conditions: It is understood and agreed by the undersigned that a reimbursement grant received as a result of this grant agreement is subject to Public Law 89-564 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U.S. Department of Transportation and the State of Hawaii. It 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, B-1, C & D, which are incorporated herein and made a part of this grant agreement. Authorization to proceed with this Highway Safety Project is requested. 9a. Grant Director 9b. Authorizing Official of Agency Unit Name: Warren H.W. Lee, PE Phone: 808-961-8321 Name: Ronald Thiel, PE Phone: 808-961-8341 Title: Director Fax: 808-961-8630 Title: Division Chief Fax: 808-961-8591 Address: Department of Public Works Address: Traffic Division 101 Pauahi St., Ste. 7 108 Railroad Ave. Hilo, HI 96720-4224 Hilo, HI 96720 E -Mail: ublic_works, co.hawaii.hi.us E -Mail: rthiel@co.hawaii.hi.us io 2 - 91.1 ;_�e? 11 /Z (Signature) (D e) (Signature) (Date) To be prepared by applicant, use separate sheets as required. Form HS 3-71 Rev. 8/6/09 EXHIBIT "A" STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT PART II Grant No: Flex 1 - Department of Public Works - GPS Units Page 2 (To be completed by Highway Safety Office) 10. Grantee: County of Hawaii, Department of Public Works 11. Standard Area: Traffic Records 13a. Federal Fiscal Year: 2011 13b. Addendum: ❑Yes MNo 12. Effective Date of Agreement: Oct 1, 2010 - Sep 30, 2011 14. Benefit of : ❑State ®County 15. Action Taken 16. Funding Disposition & Status Grant agreement approved. Fiscal Year Amount 2007 0.00 2008 0.00 2009 0.00 2010 0.00 2011 20,350.00 Total $20,350.00 Present Obligation $20,350.00 Previously Obligated $0.00 TOTAL FUNDS OBLIGATED $20,350.00 17. Budget Summa (From Schedule B — Detailed Budget Estimate) — Fiscal Year Grant Period Ending: Sep 30, 2011 Cost Category Cost Estimates A. Personnel Costs 0.00 B. Travel Expenses 0.00 C. Contractual/Consultant Services 0.00 D. Equipment 20,350.00 E. Other Direct Costs 0.00 TOTAL FEDERAL FUNDS $ 20,350.00 18. Grant Approval & Authorization to Expend Obligated Funds A. Approval Recommended By B. Agreement & Funding Authorized By (Program Area Specialist) (Highway Safety Manager) Name: Lee Nagano Name: Lee Nagano Title: Highway Safety Manager Title: Highway Safety Manager Phone/E-Mail:(808)587-6301 / Phone/E-Mail:(808)587-6301 / lee.nagano@hawaii.gov lee.nagano@hawaii.gov (Signature) (Date) (Signature) (Date) EXHIBIT II SCHEDULE A SCHEDULE A Grant No: Exhibit II GRANT DESCRIPTION PAGE # PROBLEM STATEMENT Identify the traffic safety related problem or deficiency that the proposed grant is intended to correct. Identify and gather appropriate data relevant to the problem. Collision/fatalities data appropriate to the identified problem and a brief analysis of the data is required. When available, three years of data should be presented and analyzed. When identifying the problem, take into consideration changes in population, traffic patterns and other demographic dynamics that may affect traffic safety. The purpose of the subject grant is for the Department of Public Works (DPW) to assist the Hawaii Police Department (HPD) with purchasing GPS units to be used for crash location reporting. HPD currently does not use GPS for crash location reporting nor are correct street names consistently. The reason for DPW's involvement in this project and our push for more accurate crash location information is the Traffic Division's desires to: • Proactively implement safety improvement projects based on crash frequency, rate, and trend information. • Reduce the amount of our time spent post -editing the crash reports to resolve crash location errors. • Improve accuracy of location reporting. The plan is for DPW to purchase 100 GPS units for HPD. Transportation asset management software (RoadSoft GIS) has already been implemented by DPW and will be used to upload crash information to generate crash trend reports for project planning. GRANT GOALS Goals serve as the foundation upon which the grant is built. Goals are what you hope to accomplish by implementing a traffic safety grant and represent an end result. Grant goals should be stated in measurable terms (i.e., a percent reduction), be concise and deal with a specific item, be realistic with a reasonable probability of achievement, and be related to a specific timeframe (a "by " date). Please notate baseline from which the reduction/increase will result. One month's worth of HPD traffic crash reports takes 40 hours (480 hours per one year's worth of traffic crash reports) for one person to do editing to correct street name errors. If all of the objectives are met, the time spent for one person to conduct editing can be reduced by 50% or 20 hours per one month of reports (240 hours per one year of reports). With more complete traffic crash reports that include the proper fields needed to generate traffic crash frequency, rate, and trend reports, more effective traffic safety project identification and planning can be accomplished, resulting in better use of County budget/funding. Currently, only 7%-10% of the existing HPD traffic crash data can be properly mapped in RoadSoft GIS. Our goal is to be able to map 95%-100% of the future HPD traffic crash data. Being able to map traffic crash data is a key component in determining the accident frequency, rate, and trend information needed for safety improvement project planning. Properly mapped traffic crash data will also lead to more accurate reporting and eliminate sorting errors. GRANT DESCRIPTION PAGE # GRANT OBJECTIVES Objectives are tasks or activities conducted in order to accomplish the grant goal(s) (e.g., develop permanent fitting stations for child restraints, enforcement activities, educational activities, etc.). Grant objectives should be stated in measurable terms ( i.e., a percent reduction, number of training to be held, number of roadblocks, etc.), be concise and deal with a specific item, be realistic with a reasonable probability of achievement, and be related to a specific timeframe (a "by" date). Please notate baseline from which the reduction/increase will result. Objective l: Get grant approved and acquire $20,350 grant by October 1, 2010. The following objectives are contingent on an October 1, 2010 grant implementation date. Objective 2: Go through pertinent County procurement process to purchase 100 GPS units within the grant amount by end of October 2010. Objective 3: Deliver the 100 GPS units to HPD -Traffic Services Section by November 2010. Objective 4: Work with HPD to have them start using the proper street names as shown on County GIS maps for traffic crash reporting/editing by December 2010. Objective 5: HPD to learn and implement the use of the GPS units for traffic crash location reporting by end of December 2010. Objective 6: HPD to start using the GPS units for all crash location reporting for the 2011 calendar year — start using by January 2011. Objective 7: Work with HPD -Traffic Services Section to come up with a comma separated format that includes GPS coordinates for their crash reports to be used to upload into RoadSoft GIS by January 2011. Objective 8: Work with HPD to ensure that the fields in Objective 7 are filled out in every report by January 2011. Objective 9: Generate traffic crash frequency top 50 locations list and other crash trend reports using RoadSoft GIS by January 2012. Objective 10: Using top 50 accident frequency list, collect respective AADTs as needed to get top crash rate locations. Objective 11: Plan and budget for safety improvement projects based on top crash rate locations by April 2012. METHOD OF EVALUATION Using data gathered throughout the grant period, the grant manager will evaluate (1) how well the stated grant goals and objectives were accomplished, and (2) was the grant cost effective? How are you going to show effectiveness of your project? What will be the impact of the project on your identified problem and goal(s)? Provide details on the method of evaluation. The effectiveness of the project will be exhibited using weekly, monthly, or quarterly progress reports that reflect project status and whether the targeted objectives are being met. The included Schedule C document can be used to track the milestones for the project and the dates that the milestones are reached. The HPD traffic crash reports will contain GPS coordinates that will help describe the traffic crash locations. The percent of the traffic crash reports that include GPS coordinates will be a barometer to determine areas where improvements in GPS reporting can be made. RoadSoft GIS traffic crash frequency, rate, and trend reports can be generated using the updated HPD traffic crash data. Our Annual Traffic Safety Report will summarize the traffic crash analysis data for the year and the respective projects that are being planned based on said data. SCHEDULE B Exhibit III Page 1 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES A. Personnel Costs Employee Salaries and Benefits Position Title(s) and Full-Time/Part-Time Yearly Salary: Fringe Benefit Rate: % Time to be spent on project: hours Position Title(s) and Overtime Hourly Rate(s): Fringe Benefit Rate: % Time to be spent on project: hours Category Sub -Total 0 B. Travel Expenses In -State Event/Conference: Air Travel: To: From: Surface Travel: Car Rental (daily rate, # of days, fuel, takes, etc.) Private Car: ( miles @ per mile) SCHEDULE B Exhibit III Page 2 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES Per Diem: days @ $ per day Baggage Fee: Tuition, Course, Registration and Miscellaneous Fees: Individual cost: x No. of attendees: Out -of -State Event/Conference: Air Travel: To: From: Surface Travel: Car Rental (daily rate, # of days, fuel, taxes, etc.) Private Car: ( miles @ per mile) Per Diem: days @ $ per day Baggage Fee: Tuition, Course, Registration and Miscellaneous Fees: Individual cost: x No. of attendees: Category Sub -Total 01 C. Contractual/Consultant Services Category Sub-Total01 SCHEDULE B Exhibit III Page 3 Detailed Budget Estimate Grant No: L� COST CATEGORY COST ESTIMATES D. Equipment 100 GPS units Category Sub -Total $20,350 E. Other Direct Costs Category Sub -Total GRANT TOTAL $20,350 Services 100 GPS units SCHEDULE B-1 Grant No: Exhibit III BUDGET NARRATIVE PAGE # EXHIBIT V SCHEDULE D SCHEDULE D Exhibit V AGREEMENT OF UNDERSTANDING & COMPLIANCE Grant No: THIS AGREEMENT made and entered into by and between the STATE OF HAWAII by and through its Director of Transportation, hereinafter referred 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 are 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 Lighting/Lamps 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 of such 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, financed 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 U.S.C. 2000d to 2000d-4 (hereinafter referred to as the Act), and all applicable requirements pursuant to the Regulations of the Department of Commerce (Title 15, 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 Expenditures 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 Circular 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 a royalty -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 State 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 tier 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 paragraph 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 debarment under 48 CFR Part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily 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 Regarding Debarment, 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 business 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 award and performance of DOT -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.