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HomeMy WebLinkAboutCOM 0396.000 2012-2014 William P.Kenoi cR b6i; Nancy E. Crawford Director Mayor 4j V .r. Deanna S. Sako •fad 00.• ` Deputy Director County of Hawaii Finance Department 25 Aupuni Street, Suite 2103 • Hilo,Hawai`i 96720 (808)961-8234 • Fax(808)961-8569 w O C7 Gl August 15, 2013 J Yoshimoto, Council Chair and Members of the Hawai`i County Council Hawai`i County Council 25 Aupuni Street -- Hilo, Hawai`i 96720 Re: Operating Budget The State Department of Transportation Public Affairs - Safe Community Program is providing an additional funding of$56,500 to the Hawai`i County Police Department's (HCPD's) Data Grant program. The grant funds will be used to allow the HCPD to purchase in-vehicle laptop mounting systems. In the current fiscal year's budget, $78,000 was appropriated in anticipation of this grant. Enclosed is a bill for an ordinance amending the Operating Budget by appropriating the additional funds into the Data Grant program account and bringing the total grant appropriation to $134,500. If there are any questions, please do not hesitate to call Sergeant Robert Pauole of the Police Department at 961-2305. Nancy C awford Director of Finance Enc. cc: Police 1?;iilt 115 Comm. No. 39 Hawaii County is an Equal Opportunity Provider and Employer Ref. To: Ref. Date_AUMI55 7013 Form #: B-52 7/18/91 DEPARTMENT OF FINANCE REQUEST FOR COUNCIL ACTION DEPARTMENT: Police DATE: 8/9/2013 STAFF CONTACT: Sergeant Robert Pauole PHONE: 961-2305 A. REQUEST: To appropriate an additional $56,500.00 for the Traffic Records Data Grant under account number 010.201.5216.18 and revenue account 3303.63 B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED): The State Department of Transportation Public Affairs-Safe Community Program is providing additional funds for the cost of laptop mounting systems for in-vehicle computer systems, which will enable officers to complete MVAR's expeditiously. Au112 2013 SIGNED: (l %,l DATE: _ • Departme t Head GRANT SUMMARY (Supplement to B-52, Request for Council Action) Type of Grant Appropriation being requested: (New or an additional appropriation) I I New (for this fiscal year period). OR [X Additional appropriation (to an existing grant); Is a draft agreement attached? Has the original grant notification been transmitted to I I Yes No Council? X Yes I I No Name of Grant Program: HCPD Data Grant Grantor: State Department of Transportation Safe Community Program County Grantee Department or Agency: Police Department County Grantee Contact Person: Sergeant Robert Pauole Phone Number: 961-2305 Amount of Grant: $56,500.00 Grant Period (Commencement & Completion): October 1, 2013 - September 30, 2014 Purpose of Grant: To establish a statewide traffic data system and to ensure compliance with national standards. County Match required?: I I Yes X No If yes, Matching Amount? Budgeted in account# : In-kind? Explain: Explanation: County's personnel requirements: Amount of new position(s)? Qty: Permanent: I I Temporary: I I, Duration: Full-time: I I Part-time: fl, Time Element: Qty: Contractual: Explain: Explanation: Additional Comments about Grant: The State Department of Transportation Public Affairs-Safe Community Program is providing additional funds for the cost of laptop mounting systems for in-vehicle computer systems, which will enable officers to complete MVAR's expeditiously. B-52 Grant Summary Form EXHIBIT I STATE OF HAWAII HIGHWAY SAFETY PROJECT GRANT AGREEMENT STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT Grant No: Page 1 (To be completed by applicant agency) 1. Grant Title Hawai'i Police Department Traffic Records Grant 2. Name and Address of Applicant Agency 4. Duration Hawai'i Police Department Month—Day—Year 349 Kapi`olani St. Hilo, Hawai'i 96720 A. Grant Period From: 10-01-13 To: 09-30-14 3. Agency Unit to Handle Grant(Name and Address) Hawai'i Police Department B. Project Period 349 Kapi`olani St. From: 10-01-13 Hilo, Hawai'i 96720 To: 09-30-2014 5. Location of Project 6a. Type of Application Hawai'i Police Department (Check Appropriate Item) 349 Kapi`olani St. ®Initial ['Revision OContinuation Hilo, Hawai'i'96720 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.) Hawai'i Police Department(HPD)will decrease the amount of time it takes to transfer Motor Vehicle Accident Report's(MVAR) to the Hawai'i Department of Transportation(HDOT)via the Hawai'i Information Consortium(HIC)from three(3)months to one(1)month. HPD had previously taken six(6)months to complete the transfer of all MVAR's. 8. Federal funds allocated under this agreement shall not exceed $ 134,500.00 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: Harry S. Kubojiri Phone: Name: William P. Kenoi Phone: Title: Police Chief Fax: Title: Mayor Fax: Address: Address: E-Mail: E-Mail: (Signature) (Date) (Signature) (Date) To be prepared by ap i licant,use separate sheets as re.uired. Form HS 3-71_Rev. 8/6/09 STATE OF HAWAI'I ) SS. COUNTY OF HAWAI'I ) On , before me personally appeared WILLIAM P. KENOI, to me personally known, who,being by me duly sworn, did say that he is the Mayor of the County of Hawai'i, a municipal corporation of the State of Hawai'i that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawai'i, the foregoing instrument was signed and sealed on behalf of the County of Hawai'i by authority given to said Mayor of the County of Hawai'i by Sections 5-1.3 and 13-13 of the County Charter, County of Hawai'i (2010), as amended, and said WILLIAM P. KENOI acknowledged said instrument to be the free act and deed of said County of Hawai'i. Notary Public, State of Hawai'i Printed Name: My commission expires: NOTARY CERTIFICATION STATEMENT Document Identification or Description: Doc. Date: n Undated at time of notarization No. of Pages: Jurisdiction: Signature of Notary Date of Notarization and Certification Statement Print Name of Notary Signature Attachment: Grant Title: Hawaii Police Department Traffic Records (Data) Grant Grantor: State Department of Transportation Motor Vehicle Safety Office Grant Period: 10/1/2013-9/30/2014 Amount of Grant: $134,500.00 Fiscal Year: 2013-2014 APPROVED AS TO FORM AND LEGALITY: Deputy Corporation Counsel County of Hawaii Date: STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT—PART II Grant No: Page 2 (To be completed by Highway Safety Office) 10. Grantee: 11. Standard Area: 13a. Federal Fiscal Year 12. Effective Date of Agreement: - 13b. Addendum: ❑Yes ❑No 14. Benefit of: ❑State County 15. Action Taken I 16.Funding Disposition& Status Fiscal Year Amount Total $ Present Obligation $ Previously Obligated $ TOTAL FUNDS OBLIGATED $ 17. Budget Summary(From Schedule B—Detailed Budget Estimate)—Fiscal Year Grant Period Ending: Cost Category I Cost Estimates A. Personnel Costs B. Travel Expenses C. Contractual/Consultant Services D. Equipment E. Other Direct Costs TOTAL FEDERAL FUNDS $ 18. Grant Approval& Authorization to Expend Obligated Funds A. Approval Recommended By B. Agreement&Funding Authorized By (Program Area Specialist) (Highway Safety Manager) Name: Name: Title: Title: Phone/E-Mail: Phone/E-Mail: (Signature) (Date) (Signature) (Date) STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT—PART III Grant No: Page 3 (To be completed by Highway Safety Office) 19. Addendum (For Highway Safety Office Use Only) EXHIBIT II SCHEDULE A Schedule A HPD TRAFFIC RECORDS 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. Hawai'i continues to have a traffic safety problem and the need to identify where the problems are within the State. See Table I Hawai'i's Summary of Traffic Demographics. Table I Hawaii Summary of Traffic Demographics 2005-2010 Year Population Licensed Registered VMT Traffic Fatality Alcohol Alcohol Drivers Vehicles (millions) Fatalities Rate Involved Involved Fatalities 2005 1,275,194 856,163 1,149,403 10,129.1 140 1.4 67 47.9% 2006 1,285,498 867,003 1,159,256 10,226.3 161 1.5 84 52.1% 2007 1,283388 882,455 1,167,240 10,345.0 138 1.3 69 48.0% 2008 1,288,198 895,941 1,160,643 10,215.1 107 1.0 47 43.9% 2009 1,295,178 882,979 1,162,480 10,237.2 109 1.08 52 47.7% 2010 1,360,310 911,417 1,120,080 10,111.0 113 1.04 50 45.1% Over the past 40 years, states and local governments have built a wide range of information systems to support their information needs relating to traffic safety. These systems include: Traffic Crash Systems, Roadway Inventory Systems, Traffic Citation and Adjudication Systems, Emergency Medical/Injury Prevention Systems, Driver Licensing and Driver History Systems, and 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 agencies. Many have gone through one or more major overhauls during their life as technology and needs changed. Today, as we look toward the traffic safety information needs of the 21st 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 of these systems. All indications are that federal and state traffic safety programs will need timely, accurate and accessible data covering all aspects of the traffic safety arena 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 are. • Identify, using data on likely costs and impact, those countermeasures that are most likely 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. 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 time frame (a "by"date). Please notate baseline from which the reduction/increase will result. Hawai'i Police Department (HPD) will decrease the amount of time it takes to transfer Motor Vehicle Accident Report's (MVAR) to the Hawai'i Department of Transportation (HDOT) via the Hawai'i Information Consortium (HIC) from three (3) months to one (1) month. HPD had previously taken six (6) months to complete the transfer of all MVAR's. 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 time frame (a "by"date). Please notate baseline from which the reduction/increase will result. HPD will: 1. Participate in Traffic Records Core Committee (TRCC) and Subcommittees, attend monthly and special meetings. 2. Send one (1) HPD employees to attend the 2013 Annual National Traffic Records Forum. 3. Complete the MVAR Data Transfer to HIC. Work with HIC to electronically transfer MVAR data from HPD to HDOT. 4. Research and work with TRCC members on implementing an electronic citation system. 5. Purchase Data Export Function and Server. 6. Purchase laptop mounting systems for in-vehicle computer systems, which will enable officers to complete MVAR's expeditiously. 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 success of the grant goal will be determined through progress reports from HDOT on their receipt of MVAR's from our department's Records Division. Progress reports will be in the form of electronic communications and/or verbal communications at monthly TRCC meetings. 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): Sergeant at$55.00 per hour x 2.0 hrs per TRCC Mtg 1,210 Officer at $48.00 per hour x 2.0 hrs per TRCC Mtg 1,056 Fringe Benefit Rate: 22 % 500 Time to be spent on project: 90 hours Category Sub-Total $2,766 B. Travel Expenses In-State Event/Conference: Traffic Records Committee Mtgs Air Travel: To: Honolulu HI. From: Hilo, HI. $7,000 Surface Travel: No Rental/Shuttle provided Car Rental (daily rate, # of days, fuel, taxes, etc.) Private Car: ( miles @ per mile) Airport Parking $15.00 @ 2 vehicles x 12 days $360 SCHEDULE B Exhibit III Page 2 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES Per Diem: 12 days @ $ 20 X 2 off. per day $480 Baggage Fee: Tuition, Course, Registration and Miscellaneous Fees: Individual cost: x No. of attendees: Out-of-State Event/Conference: Traffic Records Forum Air Travel: To: St. Paul, Minnesota From: Hilo, Hawaii $3,000.00 Surface Travel: Taxi or Shuttle to From airport $200.00 Car Rental (daily rate, # of days, fuel, taxes, etc.) Private Car: ( miles @ per mile) Per Diem: 6 days @ $ 145 per day 870 Baggage Fee: lchecked bag @$30/bag X 2 (Roundtrip) 60 Tuition, Course, Registration and Miscellaneous Fees: Individual cost: $500 x No. of attendees: 1 500 Excessive Lodging: 6 nights x 150 900 Category Sub-Total $13,370.00 C. Contractual/Consultant Services HIC Data Integration Development 7500 Category Sub-Total 7,500 SCHEDULE B Exhibit III Page 3 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES D. Equipment MVAR Data Export Function and Server $55,000 Laptop Mounting Systems $55,864 Category Sub-Total $110,864 E. Other Direct Costs Category Sub-Total GRANT TOTAL $134,500 SCHEDULE B-1 Exhibit III Grant No: BUDGET NARRATIVE PAGE #1 of 1 Personnel Costs HPD will have staff attend the monthly meetings of the Traffic Records Core Committee Meetings on Oahu. Overtime cost have been factored into the travel time that is required to travel from Hilo to Oahu. Travel Expenses Travel funds will be used for staff travel expenses to attend the Traffic Records Forum in St. Paul, Minnesota (October 28-31, 2013). HPD will also send staff to attend the monthly Traffic Records Core Committee Meetings on Oahu. The hotel provides a shuttle to and from the airport for the TRCC Meetings. A taxi or shuttle will be used to and from the airport for the Traffic Records Forum. Contractual/Consultant Services HPD will pay necessary cost to complete traffic records data transfer from HPD to HIC Equipment HPD will purchase a Data Export Function and Server to enable HPD's computer system to tranfer Motor Vehicle Accident Reports to HIC HPD will purchase laptop mounting systems for patrol and traffic officers for in-vehicle computer systems, which will enable officers to complete MVAR's expeditiously Other Direct Costs EXHIBIT IV SCHEDULE C SCHEDULE C Exhibit IV Grant No: MILESTONES PAGE#1 Month Activity October 2013-December 2013 Attend Traffic Data Records Committee monthly meetings. Attend the National Traffic Records Forum. Purchase Data Export Function and Server. January 2014-March 2014 Attend Traffic Data Records Committee monthly meetings. Begin research on electronic citation system. Purchase laptop mounting systems April 2014- June 2014 Attend Traffic Data Records Committee monthly meetings. July 2014-September 2014 Attend Traffic Data Records Committee monthly meetings. Complete traffic records data transfer from HPD to HIC. 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.