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HomeMy WebLinkAboutCOM 0048.031 2006-2008 oJatY os HgWq Harry Kim ~ 4'v4; Lawrence K. Mahuna :Ngvor ~ Police Chiej a• ' Harry S. Kubo{+ri °'q{e.r~P~ Depury Police CGief County of Hawaii POLICE DEPARTMENT 349 Kapiolani Stmt • Hilo, Hawaii 96720-3996 February 11, 2008 (808)935-3311 Fax (808)961-8869 na Q Q TO PETE HOFFMAN, COUNCIL CHAIR AND COUNCIL MEMBERS ~ ~ '7 VIA : NNA KO, CONTROLLER ~J.- rv ~ ~_i FROM ENCE K. MAHUNA, POLICE CHIEF ~ _ ~ SUBJECT NOTIFICATION OF GRANT AWARD o Compliance with Ordinance No. t}9-55, Section 7(1) c.n p'I,XZ - cn Name of Grant Program: CIOT Basketball Tournament Federal or State Grantor: State Department of Transportation Public Affairs Office-Safe Community Program County Grantee Department/Agency: County Police Department Grant No.: OP08-05(02-H-01) Amount of Grant: $12,700.00 Amount of County Match: None County Revenue & Expenditures Acct 010.201.5216.12; 3303.34 Grant Period: October 1, 2007 -September 30, 2008 Purpose of Grant: To reduce fatalities and injuries to front and rear seat occupants aged 17 and under by improving awareness of state laws. Is final report required by grantor? yes Notification Attached: yes Q Comm. No, v • Raf. To: Ref. Date MAR 3 2Q0:- APPLICATION FOR HIGHWAY SAFETY PROJECT REIMBURSEMENT GRANT STATE OF HAWAII SAFE COMMUNITY PROGRAM -SAFETY OFFICE FOR SCP-SO USE ONLY PART I ~ (Applicant to Complete) Project Number: OQoa-OS COt H-O•J 1. APPLICANT (Name and Address) Title: HCPD CIOT BASKETBALL TOURNAMENT Hawaii County Police Department 349 Kapiolani Street Standard Area OGCa+p~+ oro+cesF~m~+ Hilo, Hawaii 96720 2. AGENCY UNIT (Name and Address) Effective Date: 10-01-07 Hawaii County Police Department 399 Kapiolani Street, Hilo, Hawaii 96720 Federal Funds Obligated $1'1~~Oo 3. DURATION (Month, Day, Year) FY Funds ba Addendum_YES ~NO A. Grant Period B. Project Period Benefit of STATE x COUNTY From: 10-01-07 From: 10-01-07 To: 09-30-08 To: 09-30-08 9. LOCATION OF PROJECT Sa. Type o£ 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 reduce fatalities and injuries to front seat occupants, and rear seat occupants aged 17 and under, of motor vehicle collisions by improving awareness of state laws. 8. BUDGET (Schedule B) 8A. COST CATEGORY Total Expenditures Grant Period Prior Years Project Period (1) Personal Services $3,200.00 $ S (2) Consultant Services $0 $ S (3) Commodities S $ $ (9) Other Direct/Indirect Costs $9,500.00 $ $ TOTAL ESTIMATED COSTS (Inc. Non-Fed. Share) $12,700.00 $ $ 8B. SOURCE OF FUNDS ~ C. SPECIFY HOW NON-FEDERAL (1) Federal (100 ~ of TOTAL) $12,700.00 SHARE WILL BE PROVIDED (2) Applicant Age 9. MILESTONES (Schedule C) 10. AGREEMENT OF UNDERSTANDING AND COMPLIANCE (See Schedule D, attached) 11. ACCEPTANCE OF CONDITIONS. It is understood and agreed by the undersigned that a reimbursement grant received as a result of this application is subject to Public Law 89-569 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U. S. Dep=:ctment of Transportation and the State of Hawaii. It is expressly agreed that this project constitutes an official part of the Hawaii Highway Safety Program and that said applicant agency will meet the requirements as se[ forth herein, including accompanying schedules A, B,C a D, which are incorporated herein and made a part of this application. A~,~thorization to proceed with this Highway Safety Project is requested. 11A. PROJECT IRECTOR 11B. AUTH ZING ICI OF AGENCY UNIT Signature Signature Nam LAWRENCE HUNA Name HARRY KIM Tit POLICE CHIEF Titl MAYOR Date SEP Z Date Q 5 To be prepared by applicant, use separate shec,:s as required. Form HS 3-71 Rev. 7/19/00 PART II (Safe Community Program - Safety Office to complete) Project Number: OPO$~OS(02-\+-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 Date asplotN \~'J~O •F- B. Federal Fund 0 igated 'M \'~-~~ro C. Approval D (/r ~ D. Signature ~ E. Name Gordo K K. Hong F. Title Highway Safety Manager IN WITNESS WHEREOFF, the parties hereto have caused this contract to be executed. APPROVED AS TO FORM AND LEGALITY: pE Co 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 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. JEA (ERNES Notary Public, State of Hawaii My commission expires: 11/1/2009 ,LPN v i ER~~ ~pTgR} s ~ A~/BL~G P 9Tcc _ _ P~ SCHEDULE A HCPD CLICK IT OR TICKET MISSION/GOAL The goal of this project is to increase the use of seat belts by infants, toddlers and teen agers and young adults by the end of FFY 2008. HCPD will involve families and young athletes in numerous Click It Or Ticket Basketball Tournaments throughout the island in conjunction with national enforcement and media campaigns. PROBLEM IDENTIFICATION: Safety belts, when used correctly, reduce the risk of fatal injury to front-seat passenger caz occupants by 45 percent and the risk ofmoderate-to-critical injury by 50 percent. For light truck occupants, safety belts reduce the risk of fatal injury by 60 percent and moderate-to-critical injury by 65 percent. Ejection from the vehicle is one of the most injurious events that can happen to a person in a crash. Nationally, in fatal crashes in 2005, 75 percent of passenger vehicle occupants who were totally ejected from the vehicle were killed. Safety belts are effective in preventing total ejections: only one percent of the occupants reported to have been using restraints were total ejected, compared with 30 percent of the unrestrained occupants. (NHTSA's Traffic Safety Facts 2005 Data). The seat belt observation in survey early 2006 showed that Hawaii had a seat belt use rate. of 92.5%, which is among the top ten states in the nation. On The Big Island, seat belt use rates among vehicle occupants was the lowest in the state at just under 90%, with a June 2006 observed use rate of 89.54%. Unlike previous observation periods in which The Big Island was one of the highest ranked islands for seat belt use, the June 2006 observations place it in last place for compliance, behind Oahu (92.22%). See Table I for seat belt use by counties. Table I Seat Belt Use by County, 2006 Island Total Belted Total Observed % Total Belted Oahu 24380 26436 92.22% Maui 8029 8388 95.72% Hawaii 5648 6308 89.54% Kauai 4717 5089 92.69% Total 44022 47611 92.46% Also, the Hawaii County Police Department was active in providing seat belt violations with over three thousand citations given during FFY 2006. See Table II for occupant protection enforcement statistics. Table II Occupant Protection Enforcement Statistics FFY 2006 Honolulu Hawaii Maui Kauai Total County County County Grant 7063 2965 3109 97] 14108 Funded S.B. Citations County 21127 949 125 245 12446 Funded S.B. Citations Grant 153 66 23 14 256 Funded C.R. Citations County 0 171 5 32 208 Funded C.R. Citations Although, the seat belt use rate statewide is high, Fatal Analysis Reporting System (FARS) statistics show a completely different picture. Statewide only 41.4% of the vehicle occupants were wearing seat belts. On the Big Island, 53% of the 28 fatal motor vehicle occupants were wearing their belts. Had the 13 that did not weaz seat belts worn them, about half of them could have survived resulting in a reduction of the total fatalities in Hawaii County. See Table III on restraint system use-vehicle occupancy fatalities by county. Table III 2005 Restraint System Use-Vehicle Occupancy Fatalities by County Total Belted Total Occu ants Percent usa e C&C Honolulu 9 27 33.3% Hawaii Coun 15 28 53.6% Maui County I 7 14.3% Kauai County 4 8 50% Total 29 70 41.4% In 2006,our early estimates show that we lost 162 people in traffic crashes of which 98 were riding in a motor vehicle. If all of the motor vehicle occupants were wearing their seat belts than almost 44 (based on 45% effectiveness of seat belts in serious crashes) of them would be alive today. The lack of use of se at belts continues to be a big problem in the State as well as on the Big Island of Hawaii. Research on the effectiveness of child safety seats has found them to reduce fatal injury by 71 % for infants (less than one years old) and by 54% for toddlers (1-4 years old) in passenger cazs. For infants and toddlers in light trucks, the corresponding reductions are 58% and 59%, respectively (NHTSA's NCSA 2003). Hawaii County is well below the national usaee fieure of 93% for toddlers and had a 89.41% eompliance rate for infants compared to 98% for infants nationally. However, the 68% overall use rate for children should be much higher in order to provide the best protection for children while riding in a motor vehicle. See Table IV for 2006 restraint use for children less than 4 years of age. Table IV Overall Restraint Use Rates for Children Under 4 yeazs of age By Islaud, 2006 Usa a Rate Oahu Maui Hawaii Kauai Total Infants 91.39% 97.14% 89.41% 100% 91.76% Toddlers 75.47% 88.17% 53.45% 88.09% 73.98% Total 80.65% 90.63% 68.66% 90% 79.86% Statewide traffic data also Lists 14 or 10% of fatalities to be between the ages of 15- 20. Eleven or 78.6°/. of those killed were males between the ages of 15-20. SOLUTION: The Hawaii County Police Department (HCPD) believes that enforcement and education is the key to making people use their seat belts while on our roadways. HCPD will implement an aggressive campaign throughout FFY 2008. HCPD will also participate in the National Click It or Ticket campaign during May 21 to June 3, 2007 and other mobilizations efforts by NHTSA. HCPD will also enforce the Child Restraint law and educate families and youth about the importance of those laws. STRATEGIES 1. Conduct between two to three "Click It or Ticket" 3 on 3 Basketball Tournaments (one in East Hawaii and one in West Hawaii) for youth aged 6 through 18. Each event to run three days. 2. Have the participation of about 600 youth and attendance of about 1200 people at the two events. 3. Obtain about 1000 pledges from youth and adults to wear their seat belts and ensure that all occupants of vehicles operated by them are seat belted. 4. Issue 1000 "Click It or Ticket" t-shirts promoting seat belt use to all participants and volunteers of the event. 5. Issue about 300 customized "Click It or Ticket" medals to placing teams in each age division. 6. Conduct "Click It or Ticket" presentations throughout the events. 7. Involve community and student volunteers in assisting with the tournaments. 8. Coordinate a cooperative media event to be held during the tournaments, to include Keiki car-seat checkpoint, booster-seat educational presentation and enforcement . projects to be conducted to coincide with the tournaments. 9. Tournaments to be held on or about the "Click It or Ticket" mobilizations. ] 0. Identify organizations and opportunities so this event can become self-sufficient. EVALUATION: The goal of this project is to increase the use of seat belts from 97.47% to 98.% by the end of FFY 2008. HCPD will also increase the number of seat belt citations issued by 5% from 3,914 to 4,107 and increase the seat belt use percentage of fatal motor vehicle occupants by 5% from 53% to 55%. HCPD goal for the child restraint usage is to increase it by 10% from 68.66% to ~'.r.46%. X5.51 EXHIBIT III SCHEDULE B r SCHEDULE B (1) PERSONAL SERVICES Employe Salaries and Benefits Position Title: Salary: $ 5.00 (Officials per game x 400 games) Fringe Benefit Rate: Time to be spent on project: 7-10 days Total Salaries and Benefits: $ 3,200.00 Air Travel To: From: Cost: $ Intea State Inter State Total Air Travel: $ Surface Travel Car Rental: $ Private Car: ( miles @ pe; mile) Total Surface Travel: $ Per Diem Infra State: days @ $ _ per day Total: $ Inter State: days @ $ per day Total: $ Total Per Diem: $ Tuition, Course, Registration and Misc. Fees Lifesaver's tuition Fee: $ Fee: $ Total Tuition and Misc.: $ TOTAL PERSONAL SERVICES: $ 3,200.00 SCHEDULE B (Continued) (2) CONSULTANT SERVICES hours @ $ per hour: $ Travel: $ Overhead ( % of Total): $ TOTAL CONSULTANT SERVICES: $ (3) COMMODITIES Office Supplies: $ Other Expendable Materials:. $ TOTAL COMMODITIES: S (4) OTHER DIRECTIINDIRECT COSTS Office Space ( sq. ft. @ $ per sq. ft.): $ Gymnasium faci]i (t~$S00 per Qame) $ 1,000.00 Office Equipment (Attach detailed equipment schedule): $ Puchased: $ Leased: $ of Shared Equipment: $ Other Equipment (Specify type and cost on an attached schedule.): $ T-shirts (1000 (a~ $7 per shirt) $ 7,000.00 Awards (Custom medals, 300 (7a, $5 each) $ 1 500.00 Utilities ( % used for project): $ Maintenance ( % used for project): $ E.D.P. Services ( hx. @ per hour): $ Printing: $ Communications: $ Project Income: $ TOTAL OTHER DIRECT/INDIRECT COST: $ 9500.00 Indirect costs not exceed 10% of total salaries Federal (Share) Funds Requested* $ 12,700.00 Agency (Share) Budget Item $ TOTAL PROJECT COST: $ 12,700.00 Note: Identify all costs to be reimbursed by Federal funds with an asterisk EXHIBIT IV SCHEDULE C SCHEDULE C HCPD CLICK IT OR TICKET PROGRAM MILESTONES Month Activity October 2007 Establish community coalition to coordinate events, including facility reservations, t-shirt design contest, advertisement of event, ordering oft-shirts and medals, scheduling and registration. Begin education and awareness rograms. January-Apri12008 Coordination of "Click It or Ticket" tournaments to be held in East and West Hawaii. May 2008 "Click It or Ticket" 3 on 3 Basketball Tournaments to be held in East and West Hawaii during national mobilization. Seat belt and booster seat projects and media event presentations to be held in conjunction with tournament. June 2008 Meeting of community coalition to review event. 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 approva] by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, STATE shall obligate said Federal funds to APPLICANT'S account for reimburs ~ment 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 Dlanters Fixed Lighting/Lamps C. It is further agreed and promised that where reimbursement is made to APPLICANT in installments, STATE shall have the rght 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)]. N. 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. (I) 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 app NHTSA/FHWA Order 4 6 0-417 5 1 0.1: VII. Copyrights and Patents A. It is mutually agreed that any copyrightable materials produced in project may be the property of the State or applicant agency; how should be made to obtain for the United States Government, the S~ Governments and their political subdivisions aroyalty-free nonexc irrevocable license to use in any manner such copyrightable mater- B. It is mutually agreed that the ownership of all rights accruing from an~ discoveries or inventions resulting from a project should be covered ir= An irrevocable, nonexclusive, nontransferable, and royalty-free licens each discovery or invention in the manufacture, use and disposition, a_ of any article or material, and in the use of any method developed as ~ under the agreement should be obtained for the United States Govern Governments and their political subdivisions. VIII. Certification Regazding Debarment and Suspension A. Instructions for Certification By signing and submitting this proposal, the prospective lower is providing the certification set out below. 2. The certification in this clause is a material representation off- reliance was placed when this transaction was entered into. If determined that the prospective lower tier participant knowing= erroneous certification, in addition to other remedies available government, the department or agency with which this transa~ may pursue available remedies, ipcluding suspension and/or d 3. The prospective lower tier participant shall provide immediate to the person to which this proposal is submitted if at any times lower tier participant learns that its certification was enoneou= submitted or has become erroneous by reason of changed circa 4. The terms covered transaction, "deharred," "suspended," "inel tier covered transaction," "participant," "person," "primary co transaction," "principal," "proposal," and "voluntarily excludes this clause, have the meanings set out in the Definition and Cc of 49 CFR Part 29. You may contact the person to whom this submitted for assistance in obtaining a copy of those regulatio 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 4R 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 kno-.vledge 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 deali::gs. 9. Except for transactions authorized under pazagraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a Iower 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, 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 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 insure 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 regazd, 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 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 aze to be retained for at Ieast 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.