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HomeMy WebLinkAboutCOM 0048.032 2006-2008 oJHSY kq~' Harry Kim , G~ Lawrence K. Mahuna .b(agar ~ Police Chief y. Harry S. Kubojiri si : r ~TF OF~NP~ Deputy Polite Chief County of Hawaii POLICE DEPARTMENT 349 Kapiolani Street Hilo, Hawaii 96720-3998 (808)935.3311 • Fax (808)9b1-8869 February 11, 2008 r.~ P 4^J G'0 TO PETE HOFFMAN, COUNCIL CHAIR AND COUNCIL MEMBEF~ ~ M., VIA EANNA KO, CONTROLLER ~f°t~v rv . o~ FROM ENCE K. MAHUNA, POLICE CHIEF SUBJECT NOTIFICATION OF GRANT AWARD ~ ° Compliance with Ordinance No. At s5, Section 7(1) _v a"; o~-~>. Name of Grant Program: Seatbelt Enforcement Federal or State Grantor: State Department of Transportation Public Affairs Office-Safe Community Program County Grantee DepartmenUAgency: County Police Department Grant No.: OP08-05(01-H-02) Amount of Grant: $74,500.00 Amount of County Match: None County Revenue & Expenditures Acct 010.201.5219.76; 3302.56 Grant Period: October 1, 2007 -September 30, 2008 Purpose of Grant: To reduce fatalities and injuries to front seat occupants and rear seat occupants aged 17 and under by increasing the usage of seatbelt. Is final report required by grantor? yes Notification Attached: yes ~ • ~ ~Z Comm. No.___'_~_~ Ref. To: aef• Dose MAR 3 znmt 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: O P O6'OS X01-H-o1~ 1. APPLICANT (Name and Address) Title: HCPD Seat Belt Hawaii County Police Department 399 Kapiolani Street Standard AreaOGCV~P~+'µ P`"O'r«''o`'i 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 $~,6~ FY Funds 'O'E'D AddendumYES X NO 3. DURATION (Month, Day, Year) A. Grant Period B. Project Period Benefit of STATE ~ COUNTY From: 10-01-07 From: 10-01-07 To: 09-30-OB To: 09-30-08 4. LOCATION OF PROJECT 5a. 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 increasing the usage rate of seat belts. B. BUDGET (Schedule B) BA. COST CATEGORY Total Expenditures Grant Period Prior Years Project Period (1) Personal Services $74,500.00 (2) Consultant Services SO (3) Commodities S (4) Other Direct/Indirect Costs SO TOTAL ESTIMATED COSTS (Inc. Non-Fed. Share) $79,500.00 8B. SOURCE OF FUNDS C. SPECIFY HOW NON-FEDERAL (1) Federal (100 $ of TOTAL) $79,500.00 SHARE WILL BE PROVIDED (2) Applicant Age 9. MILESTONES (Schedule C) 10. AGREEMENT OF UNDERSTANDING AND COMPLIANCE (See Schedule D, attached) 11. ACCEPTANCE OP COIiDIT10DiS. It isunderstood and agreed by the undersigned that a reimbursement grant received as a result of this application is subject to Public Law 89-569 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U.S. Department of Transportation and the State of Hawaii. It is expressly agreed that this project constitutes an officia- part of the Hawaii Highway Safety Program and that saitl applicant agency will meet the requirements as set forth herein, including accompanying schedules A, B,C 6 D, which are incorporated herein and made a part of this application. Authorization to proceed with this Highway Safety Project is requested. 11A. PROJECT DIRECTOR 11B. RUTH ING FICIAL OF AGENCY UNIT Signatur Signature Nam LAWRENCE MAHUN Name HARRY KIM Title POLICE CHIEF Title MAYOR Date S_ Z Date o 0 5 To be prepared by applicant, use separate sheets as required. Form HS 3-71 Rev. 7/19/00 PART II (Safe Community Program - Safety Offic: to complete) Project Number: pQoB-05Co t-H- 2 1. ADDENDUM (For MVSO Use Onl yJ 2. AGREEMENT RND AUTHORIZATION TO PROCEED by .State Official Responsible to Governor for Administration of the State Highway Safety Program. A. Effective Date p~,y ~ ~~yCpr} B. Federal Fund ligated ~~s~~dO C. Approval Da « D. Signature E. Name Gordo K K. Hong F. Title Highway Safety Man r 1N WITNESS WHEREOFF, the parties hereto have caused this contract to be executed. APPROVED AS TO FORM AND LEGALITY: flEPIlrY 'orporatio Counsel 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 duty 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 faregoing 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. ~-tJ.~n.~-s JEAN IERNES Notary Public, State of Hawaii My commission expires: 11/1/2009 ,LPN V I En~c(` ~OTq,4t ~ ~ AUBL\G ~ 9~ ~P F nc NP Schedule A HCPD SEAT BELT GRANT MISSION/GOAL The goal of this project is to increase the use of seat belts. HCPD will also increase the number of seat belt citations issued and increase the seat belt use percentage of fatal motor vehicle occupants. HCPD goal for the child restraint usage is to increase it by 10% by end of CY 2008. PROBLEM IDENTIFICATION: Safety belts, when used correctly, reduce the risk of fatal injury to front-seat passenger car 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°l0, which is among the top ten states in the nation. On The Big Island, seat belt use rates among vehicle occupants was the Iowest 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 971 14108 Funded S.B. Citations County 11127 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 weazing 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 wom 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 Occ ants Percent usage C&C Honolulu 9 27 33.3% Hawaii Coun IS 28 53.6% Maui County 1 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 seat belts continues to be a big problem in the State as well as on the Big Island of Hawaii. Reseazch on the effectiveness of child safety=seats has found them to reduce fatal injury by 7I% for infants (less than one years old) and by 54% for toddlers (I-4 years old) in passenger cazs. For infants and toddlers in light trucks, the corresponding reductions are 58% and 59%, respectively (NHTSA's NCSA 20031. Hawaii County is well below the national usage figure of 93% for toddlers and had a 89.41 % compliance rate for infants com_pazed 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 Island, 2006 Usage Rate Oahu Maui Hawaii Kauai Total Infants 9L39% 97.14% 89.41% 100% 91.76% Toddlers 75.47% 88.I7% 53.45% 88.09% 73.98% Total 80.65% 90.63% 68.66% 90% 79.86% SOLUTION: The Hawaii County Police Department (HCPD) believes that enforcement is the key to making people use their seat belts while on our roadways. HCPD will implement an aggressive seat belt enforcement program through out FFY 2008. HCPD will als~e participate in the National CIick It or Ticket campaign during May ~to June; rand other mobilizations efforts by NHTSA. HCPD will also enforce the Child Restraint law. STRATEGIES 1. Conduct approximately 200 seat belt checkpoints. 2. Issue 3000 citations for seat belt and child restraint with grant funds. 3. Issue 500 citations for other violations. 4. Affect ZS arrests during enforcement projects. 5. Conduct media campaigns ad provide public service announcements during CIick it or Ticket and other enforcement periods. 6. Participate in National Click it or Ticket Campaign. 7. Send one participant to the National Lifesavers Conference. 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 ~6D/o. X5.52'/. EXHIBIT III SCHEDULE B SCHEDULE B (1) PERSONAL SERVICES Em~loyee Salaries and Benefits , Position Title: Salary: $ 360.00 (Day) Fringe Benefit Rate: Time to be spent on project: 400 hours Total Salaries and Benefits: $ 71,625.00 Air Travel To: Mainland From: Hilo (Lifesaver's) Cost: $ 1.500.00 Intra State Inter State Total Air Travel: $ 1500.00 Surface Travel Car Rental: $75 per day x 5 days $ 350.00 Private Car: ( miles @ _ per mile) Total Surface Travel: $ 350.Ot1 Per Diem Intea State: days @ $ _ per day Total: $ Inter State: 5 days @ $ 145 per day Total: $ 725.00 Total Per Diem: $ 725.00 Tuition, Course, Reeistration and Misc.: ees Lifesaver's tuition Fee: $ 300.00 Fee: $ Total Tuition and Misc.: $ TOTAL PERSONAL SERVICES: $ 2,875.00 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: $ (4) OTHER DIRECT/INDIRECT COSTS Office Space ( sq. ft. @ $ per sq. ft.): $ Office Equipment (Attach detailed equipment schedule): $ Puchased: $ Leased: $ of Shazed Equipment: $ Other Equipment (Specify type and cost on an attached schedule.): $ Utilities ( % used for project}: $ Maintenance ( % used for project): $ E.D.P. Services ( hr. @ per hour): $ Printing: $ Communications: $ Project Income: $ TOTAL OTHER DIRECT/INDIRECT COST: $ Indirect costs not exceed I O% of total salaries Federal (Share) Funds Requested* $ Agency (Share) Budget Item $ TOTAL PROJECT COST: $ 74,500.00 Note: Identify all costs to be reimbursed by Federal funds with an asterisk EXHIIBIT IV SCHEDULE C SCHEDULE C HCPD Seat Belt Enforcement MILESTONES Month Activity October-December 2007 Seat belt enforcement projects conducted island-wide. Participation in Nationa] "Click It or Ticket" program in November with focus on the Districts of Kau, South Kona and Puna. Increase educational programs. January-Mazch 2008 Seat belt enforcement projects conducted island-wide. Continue educational programs with seat belt and car seat check ups in east and West Hawaii. April-June 2008 Seat belt enforcement projects conducted is]and-wide. Participation in National "Click It or Ticket" program in May with focus on East Hawaii and Kau. Ju]y-September 2008 Seat belt enforcement projects conducted island-wide. Continue with :educational programs and caz seat check ups. EXHIBIT V SCHEDULE D SCHEDULE D Agreement of Understanding & Compliance Project Number: pPoe-o6C o~- H-o27 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 I966 (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 iJNITED 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 S i''ATES 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 detemuned 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 Flooi Coverings Draperies Coat Racks Office Platers 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. I 18K (a)J. 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 I968, 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 wiII be provided without regazd 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 I5, 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 fa?.lure 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-ZI, as applicable and NHTSA/FHWA Order 460-4/7510.1. VII. Copyrights and Patents A. It is mutually agreed that any copyrightahle materials produced in the course of a project may be the property of the State or applicant agency; however, provisions should be made to obtain for the United- States Government, the State Governments and their political subdivisions aroyalty-free nonexclusive, and irrevocable license to use in any manner such copyrightable material. B. It is mutually agreed that the ownership of all rights accruing from any patentable discoveries or inventions resulting from a project should be covered in the agreement. An irrevocable, nonexclusive, nontransferable, and royalty-free license to practice each discovery or invention in the manufacture, use and disposition, according to law, of any article or material, and in the use of any method developed as part of the work under the agreement should be obtained for the United States Government, the State Governments and their political subdivisions. VIII. Certification Regazding 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 govemment, 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 teams that its certification was erroneous when submitted or has become erroneous by reason of changed circurristances. 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. S. 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 I . The prospective Iower 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 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 Depaztment of Transportation that minority business enterprises, as defned 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 shal] not discriminate on the basis of race, color, national origin, or sex in the award and performance ofDOT-assisted contracts. XI. Requirements A. It is mutually agreed and promised that the applicant shall fol]ow the State and Federal requirements and guidelines set forth in the State of Hawaii Project Procedures Manual as amended. Ali project expenditure records are to be retained for at least three yeazs 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.