Loading...
HomeMy WebLinkAboutCOM 0048.010 2006-2008 OJxtY os Mgw9 Harry Kim • W;~ Lawrence K. Mahuna .Mnvor Police Chief Harr S. Kubo'iri a.:,:,o.,:c Y J rgrE o.'M•'t'P Deputy Police Chief County of Hawaii February 28, 2007 POLICE DEPARTMENT 349 Kapiolani Street • Hilo, Hawaii 96720-3998 (808)935-3311 Faz (808)961-8869 TO PETE HOFFMAN, COUNCIL CHAIR AND COUNCIL MEMBERS r. , VIA ANNA KO, CONTROLLER ~EUs`f-r ~ ~ FROM ENCE K. MAHUNA, POLICE CHIEF SUBJECT NOTIFICATION OF GRANT AWARD Compliance with Ordinance No. 06-79, Section 7(1) ~ FJ Name of Grant Program: Roadblock Program Federal or State Grantor: State Department of Transportation Public Affairs Office-Safe Community Program County Grantee Department/Agency: County Police Department Grant No.: AL07-02( 1-H-02) Amount of Grant: $79,500. 0 Amount of County Match: None County Revenue & Expenditures Acct 010.201.5216.15, 3303.42 Grant Period: October 1, 2006 -September 30, 2007 Purpose of Grant: To reduce the number of alcohol related fatalities and injuries, increase public awareness, and provide a constant deterrence against drunk driving. If final report required by grantor? yes Notification Attached: yes Comm. No.~_ Ref. To: Ref. Date t b APPLICATION FOR HIGHWAY SAFETY PROJECT REIMBURSEMENT GRANT STATE OF HAWAII SAFE COMMi LAITY PROGRAM -SAFETY OFFICE FOR SCP-SO USE ONLY PART I (Applicant to Complete) Project Number: AL07-02 (O1-H-02) 1. APPLICANT (Name and Address) Title: HCPD Roadblock Program Hawaii County Police Department 399 Kapiolani Street Standard Area AL Hilo, Hawaii 96720 2. AGENCY UNIT (Name and Address) Effective Date: 10-01-06 Hawaii County Police Department 349 Kapioiani Street, Hilo, Hawaii 967[0 Federal Funds Obligatzd $79,500.00 FY Funds 2007 Addendum_YES -ENO 3. DURATION (Month, Day, Year) A. Grant Period B. Project Period Benefit o£ STATE X COUNTY From: 10-0?-06 From: 10-01-06 To: 09-30-07 To: 09-30-07 9. LOCATION OF PROJECT Sa. Tyl_e of Application (Check Appropriate Item(s) Hawaii County Police Department x Initial -Revision Continuation 349 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 reduce the number of alcohol related fatalities and injuries, increase public awareness, and provide a constant deterrence against drunk driving. 8. BUDGET (Schedule B) 8A. COST CATEGORY I Total II Expenditures Grant Period ~ Prior Years Project Period (1) Personal Services $`~.~;3Y~-BB (2) Consultant Services 'S (3) Commodities $8-,~`.1II-~ (4) Other Direct/Indirect Costs S TOTAL ESTIMATED COSTS (Inc. Non-Fed. Share) $SB~S0.0.-0.a BB. SOURCE OF FUNDS C. SPECIFY HOW NON-FEDERAL (1) Federal (100 ~ of TOTAL) ~9r•S~B$-gg SHARE WILL BE PROVIDED (2) Applicant Age 9. MILESTONES (Schedule C) 10. AGREEMENT OF UNDERSTANDING AND COMPLIANCE (See Schedule D, attached) 11. 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 89-564 (Highway Safety Act of 19661 and all administrative requlati ons governing grants established by [he U.S. Dep: =tment of Transportation and the State of Hawaii. It is expressly agreed that Ch is project constitutes an official part of the Hawaii Highway Safety Program and that said applicant agency will meet [he requirements as set forth herein, including accompanying schedules A, B,C 6 D, which ace incorporated herein and made a part of this application. Authorization to proceed with this Highway Safety Project is requested. 11A. PROJE CTOR 11B. AUTH ING O CIAL OF AGENCY UNIT Signature r~~.~"--• Signature Name LAWRENCE K. MAHUNA Name :-a~=~a~; DIXIE KAETSU Title POLICE CHIEF ~'itle P4P~9Fi- Managing Director Date Date To be prepared by applicant, use separate shet~s as required. Form HS 3-71 Rev. 7/14/00 PART II (Safe Community Program -Safe Communities Office [o complete) Tvji..:i i. uuwa . . wv i -tea (V i -i1-uGJ 1. ADDENDUM (For MVSO Use Only) 2. AGREEMENT AND AUTHORIZATION TO PROCEED by State Official Responsible [o Governor for AdminisVation of the State Highway Safety Program. A. Effective Dale October 1, 2006 B. Federal Fund Obligated $79,/`500.00 C. Approval a e 1 _ D. Sigu u E. Name r n 1U.K. Hong F. Title Highway Safety Manager r TATE OF HAWAII ) SS. CO Y OF HAWAII ) On day of , 2006, before me personally appeare HARRY KIM, to me personally known, who, being by me duly sworn, did say that he is Mayor of the COUNTY OF HAWAII, a municipal corporation of the State of Haw that the seal affixed to the foregoing instrument is the corporate seal of said County of Haw • that the foregoing instrument was signed and sealed in behalf of the County of Hawaii by thority given to said Mayor of the County of Hawaii by Section 5-13(g) of the County Charte County of Hawaii (2000), as amended, and said HARRY KIM acknowledged said inst ent to be the free act and deed of said County of Hawaii. Notary Public, State of Hawaii My commission expires: ~itlc~ STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On this ~~day of ~~~Q=~~ , 2006, before me personally appeared DIXIE KAETSU, to me personally known, who, being by me duly sworn, did say that she 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 behalf 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. VI~INIA M. TOLENTINO N ary Public, State of Hawaii My commission expires: 4/22/2009 M'.f~~E 4'~. ~ kr '~i'9~'_L'~a~~,~ IN WITNESS WHEREOFF, the parties hereto have caused this contract to be executed. APPROVED AS TO FORM AND LEGALITY: to / g /o~p pU orporatig Counsel SCHEDULE A HCPD Roadblock Program MISSION/GOAL The goal of this program is to reduce the number of alcohol related traffic fatalities and injuries and to increase public awazeness, and to provide a constant deterrence against impaired driving by conducting impaired driving roadblocks on our highways. Problem/Baseline Nine of 18 fatal crashes involving alcohol were in districts of Hilo and Puna The districts of Puna and Hilo account for 37°l0 of all OVUM arrests in Hawaii County with 452 arrests out of 1 210 Island wide. Our goal this fiscal year will be to focus on East Hawaii, in the districts of Hilo and Puna by increasing grant funded roadblocks from 23 to 40, and increase OVUM arrests by 5% to 475. STRATEGIES (Island wide implementation) 1. Conduct 52/12 Impaired Driving Program utilizing Traffic Enforcement and Patrol Officers. 2. Establish about 75 impaved driving roadblocks with grant funds and 50 impaired driving roadblocks with county funds, establishing roadblocks on all major holidays. 3. Affect about 50 arrests for impaired driving at grant funded roadblocks and 20 arrests at county funded roadblocks. 4. Affect approximately 50 arrests for other vio lations at gant funded roadblocks and 20 arrests for other violations at county funded roadblocks. 5. Issue about 150 citations for violations at grant funded roadblocks and 50 citations at county funded roadbbcks. 6. Screen an estimated 20,000 vehicles while at grant-funded roadblocks and 5,000 vehicles at county funded roadblocks. 7. Begin implementation of procedures and training for use of the Intoxilyzer 8000 in Hawaii County. 8. One officer and Deputy Prosecutor to attend the National Lifesavers Traffic Safety Conference. The DRE Coordinator to attend the Annual Drug Alcohol Impaired Driving (DRE) Seminar. Two Traffic Sergeants/Officers and Deputy Prosecutor to attend quarterly Statewide Traffic Commanders Meetings. The Statewide Traffic Commanders Coalition has agreed that DUI deterrence and the use of impaired driving roadblocks should be coordinated statewide. SPECIAL HOLIDAY ENFORCEMENT • Special Holiday Enforcement Roadblocks will take place in East Hawaii from November 20, 2006 to January, S, 2007. • There were 5 Fatal Crashes and 5 fatalities during this period in 2005. • Fow of these Fatal Crashes and fatalities were in East Hawaii, two were alcohol related. • The Big Island has an Alcohol Related Fatality Rate of nearly 60% Our goal is to implement at least 30 additional Roadblocks in Hilo and Puna during this period, and to screen 5000 vehicles. The focus of these projects will be to decrease Fatal Crashes and Fatalities during this holiday period by one each in East Hawaii. SOLUTION/IMPLEMENTATION Police personnel, on overtime, will conduct impaired driving roadblocks to supplement the enforcement efforts currently conducted by our Department. The 52/12 impaired driving enforcement program, modeled throughout the state, will be implemented in Hawaii County with special emghasis on the Districts of Hilo and Puna, which have been lacking in enforcement and accounted for approximately 50% of all alcohol -related fatal crashes in 2005 Nine of 18 fatal crashes involving alcohol were in districts of Hilo and Puna. The districts of Puna and Hilo accounted for 37% of all OVUII arrests in Hawaii County with 452 arrests out of 1,210 Island-wide. Roadblocks in these districts will be increased by at least 17, and arrests will be increased by at least 23 or 5%. The Impaired Driving Task Force, newly formed on the Big Island will partner with MADD, Department of Liquor Control, and the Hawaii Community College to support all enforcement efforts. A Deputy Prosecutor from the Big Island has been assigned to assist in Traffic Services and will receive specialized training in Alcohol and DRE Procedwes and will attend the Lifesavers Conference, and Statewide Traffic Commanders Meetings. The Traffic Sergeants and the Deputy Prosecutor will remain knowledgeable of successful programs, models and best practices, and will work in partnership to improve our conviction rate currently at 79.6%, and will work with the Statewide Traffic Commanders to identify new and innovative strategies to reduce traffic deaths and injuries, and to coordinate enforcement efforts on a statewide level, to coincide with National Campaigns. Additionally, equipment will be purchased to improve alcohol related fatal crash investigations and prosecutions through the Traffic Investigation Grant. EVALUATION The amount of grant funded impaired driving roadblocks will be tracked to determine if quantitive measures were obtained. Impaired driving an-ests, other arrests, citations issued, equipment purchased and training attended will also be tracked. Statistics of impaired driving arrests, fatal crashes, fatalities and alcohol related fatal crashes and fatalities would be reviewed to determine the effect of this concentrated effort. Our goal is to reduce impaired driving fatalities in East Hawaii and increase arrest of Impaired Drivers. SCHEDULE B HCPD Roadblock Program (1) PERSONAL SERVICES Employee Salaries and Benefits $51,310.00* One Police Sergeant and three Police Officers • Salaries and Wages ($504.00 per roadblock) o $28.00 x 4 officers x 3 hours x 1.5 = $504.00 • S ecialized Holida Enforcement Pro'ects $20>~•~ Air and Surface Travel and Per Diem • Travel-Lifesavers Conference x 2 people (Out of State $4 500.00* Travel) • Travel-DRE Conference (Out of State Travel) $2,250.00* • Travel-Statewide Traffic Commanders Meetings (2 Officers and Prosecutor x 3 trips x $160.00 = $1440.00* $1440.00) (2) CONSULTANT SERVICES (3) COMMODITIES 4 OTHER DHiECT/INDIRECT COSTS TOTAL PROJECT COST: $79,500.00* SCHEDULE C HCPD Roadblock Program AL06-02 (Ol-H-02) MILESTONES Month Activity 52/12 impaired driving enforcement program to be conducted throughout fiscal year. At least one impaired driving roadblock will be established in each of the 52 weeks of the yeaz, for all twelve months of the year. October-December 2006 Conduct grant and county funded impaired driving roadblocks. Roadblocks to be scheduled during all major holidays. Focus on high crash azeas such as Kona and Puna. Attend Statewide Traffic Commanders Meeting. December 2006 National Drunk & Drugged Driving Prevention Month and You Drink & Drive You Lose Campaign. Concentrated efforts during Ckrristmas Holiday, along with media coverage. January-March 2007 Conduct grant and county funded impaired driving roadblocks. Roadblocks to be scheduled during all major holidays. Attend Lifesavers Conference. Attend Statewide Traffic Commanders Meetin .Media covera e. April-June 2007 Conduct grant and county funded impaired driving roadblocks. Roadblocks to be scheduled during all major holidays. Attend Statewide Traffic Commanders Meet' June-July 2007 National Mobilization Campaign. Tazget youth and undera a drinkin Intensi media wvera e. July-September 2007 Conduct grant and county funded impaired driving roadblocks. Roadblocks to be scheduled during Labor Day holiday. Attend Statewide Traffic Commanders Meeting. Attend DRE Conference. Media coverage during mobilization eriod. 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 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 m governments or political subdivisions upon application and approval by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, and WHEREAS, STATE is obligated to reimbwse the UNITED STATES DEPARTMENT OF TRANSPORTATION out of its fiords 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 applicatioa for Federal funds for highway safety projects. NOW, THEREFORE, W CONSH)ERATION 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 expenditwes as set forth in the application. B. II 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 fixtwes -for State, local or private buildings or structwes. The following are examples of items considered as furnishings or fixtwes, 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 expenditwes 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 roamer 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. Ii is mutually agreed and promised that the APPLICANT shall maintain or cause to be maintained for its useful fife, any equipment purchased under dris 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 employmenf is in connection with any Highway Safety project, 5nanced 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)j. IV. Equal Opportunity A. It is mutually agreed and promised that pursuant to the requiremeats of Section 22 (a) of the Federal-Aid Highway Act of 1968, Section S04 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 comectim with the subject Highway Safety Program project will be provided without regard to race, color, seed, sex, handicap, age, or national origin. The APPLICANT further agrees that, as a condition to receiving approval of this appliption, 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. 20004 to 20004-4 (hereinafter referred to as the Act), and all applicable requirements pursuant to the Regulations of the Departrnent of Commerce (Title I S, Code of Federal Regulations, Part 8, which have been adopted by the Departrnent 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 gromd 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. I[ is mutually agreed and promised that if the APPLICANT 6ils 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 artangem~t with respect to which the failure or refusal occurred; and (2) Refrain fi om 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 ofgrant 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 detemtined 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 Cvculaz A-87 (FMC 747) or A-21, as applicable and NHTSA/FHWA Order 4tio-4/7510.1. VII. Copyrights and Patents A. It is mutually agreed that any copyrightable materials produced in the course of a project maybe the property of the State or applicant agent}; 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 State Governments and their political subdivisions. VIII. Certification Regarding Debarment and Suspension A. hrstructions 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 deparnnent 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 eaoneous 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 m 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 Imowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR Part9, subpar[ 9.4, debarred, suspended, declazed ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the departrnent 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, Ineligbility 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 krwer tier covered transaction that it is not proposed for debarment under 48 CFR Part 9, subpart 9.4, debarred, suspended, ineligible, or voluntazily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant tnay decide the method and frequency by which it detetrnines 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 Imowledge 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 Imowingly enters into a lower tier covered transaction with a person who is proposed For debarment under 48 CFR Pant 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 susp~sion 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, declazed ineligible, or voluntarily excluded from participation in this transaction by any Federal departrnent 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 5nanced 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 agees 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 ageement. 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 awazd and performance ofDOT-assisted contrails. 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 Aawaii 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 CGMPLIANCE shall become effective upon the STATE'S ageement and authorization to proceed as set forth in PART [I (2) of this application.