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HomeMy WebLinkAboutCOM 0048.049 2006-2008 ors, 08-78' Harry Kim Mnvor County of Hawaii POLICE DEPARTMENT 349 Kapiolani Street • Hilo, Hawaii 96720-3998 Lawrence K Mahuua Police Chief Harry S. Kubojiri Deputy Police Chief (808) 935-3311 • Fax (808) 961-8869 ~„~ c~ October 6, 2008 ~ ~ C7 r, o ca TO PETE HOFFMAN, COUNCIL CHAIR AND COUNCIL MEMBERS,_ n :a~ VIA ANNA AKO, CONTROLLER ~ ~ ` ~ ' '.' t ~ ry FROM ENCE K. MAHUNA, POLICE CHIEF ~ w SUBJECT NOTIFICATION OF GRANT AWARD Compliance with Ordinance No. 0t;s5, Section 7(1) 0&-~B Name of Grant Program: Seatbelt Enforcement Federal or State Grantor: State Department of Transportation Public Affairs Office-Safe Community Program County Grantee Department/Agency: County Police Department Grant No.: OP09-05(01-H-02) Amount of Grant: $76,000.00 Amount of County Match: None County Revenue & Expenditures Acct #: 010.201.5219.76; 3302.56 Grant Period: October 1, 2008 -September 30, 2009 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 o caroms No.. ~ . ~9 Ref. Tor_ Ref. Dare, nr.T 10 OZ D i • ~~ APPLICATION FOR HIGHWAY SAFETY PROJECT REIMBURSEMENT GRANT STATE OF HAWAH SAFE COMMUNITY PROGRAM -SAFE COMMUNITIES STAFF PART I FOR SCP-SCS USE ONLY (Applicant to Complete) Project Number: 1. APPLICANT (Name and Address) Hawaii Police Department Title: HPD SEAT BELT 349 Kapiolani Street Hilo, Hawaii~96720 - Standard Area_Occupant Protection 2. AGENCY UNIT (Name and Address) Hawaii Police Deparmen[ Effective Date: ]O-O1-08 349 Kapiolani Street, Hilo, Hawaii, 96720 Federal Funds Obligated $ 76 000 , 3. DURATION (Month, Day, Year) A. Grant Period B. Project Period FY Funds 09 Addendum _ YES x NO From: 10-01-08 From: 10-01-08 To: 09-30-09 To: 09-30-09 Benefit of _ STATE x COUNTY 4. LOCATION OF PROJECT Sa. TYPE OF APPLICATION [Check Appropriate Item(s)] Hawaii Police Department x Initial Revision Continuation 349 Kapiolani Sheet Hilo, Hawaii 96720 56. 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 sea[ occupants, and rear seat occupants aged 17 and under, of motor vehicle collisions by increasing the usage rate of seat belts. 8. BUDGET Schedule B 8A. COST CATEGORY Total Gxan[ Period Expenditures Project Period Prior Years 1) Personal Services $76 000.00 (2 Consultant Services $0 3 Commodities $0 4 Other Direct/Indirecl Costs - $0 TOTAL ESTIMATED COSTS Inc. Non-Fed. Share $ 76,000.00 8B. SOURCE OF FUNDS C. SPECIFY HOW NON-FEDERAL (1) Federal (100 % ofTOTAL) $76,000.00 SHARE WILL BE PROVIDED 2 A licant A e - ' 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 ofthis application is subject to Public Law 89-564 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U.S. Deparhnent 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,C & D, which are into orated herein and made a art of this a lication Authorizatio t d 'th ' 11A. PRO C n o rocee w~ this Hr hwa Safe Pro ect ~s re uested. 11B. AUT RIZING FFICIAL OF AGENCY UNIT Si nature Si nature Name Paul K. Ferreira Name ~~ ~AEISI/1 Title Actin Police Chief Title ,A G MAYOR Date Date To be prepared by applicant, use separate sheets as required. .Form HS 3-71 Rev. 04/07 .. "" 1N' WITNESS WHEREOFF, the"parties hereto have caused. this contract to be executed. ' APPROVED AS TO FORM AND LEGALITY: D~Ei'U1~Y orpo tion Counsel STATE OF HAWAII ) SS: COUNTY OF HAWAII ) On Sentember 30.2008, before me personally appeared DIXIE KAETSU, to me personally known, who; being by me duly sworn, did say that DIXIE KAETSU is the Acting Mayor 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 the said County of Hawaii; that the foregoing instniment was signed and sealed in behalf of the County of Hawaii by authority given to said Acting Mayor of the County of Hawaii by Section 5-1.5 of the County Charter, County of Hawaii (2000), as amended; and said DIXIE KAETSU acknowledged said instrument to be the free act and deed of said County of Hawaii. ,~OTAa~: . ,~~~~~ `~~~ CATH . CORREI~ ~~ B ~-~C#" Notary Public, State of Hawaii T~~a~~~~~~~ ,.~„ pF ~ My commission expires: 10/13/2010 Doc. Date: September 30. 2008 # Pages: 3 Notary Name:; Cathy T. Correia Third Circuit Doc. Description: Application for Highway Safety Project Reimbursement Grant State of Hawaii. Safe Community Program -Safe Communities Staff Notary Date PART II (Safe Community Program -Safe Communities S[aff to complete) Project Number: 1. ADDENDUM (Foi 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 October 1, 2001 B. Federal Funds Obligated $ C. Approval Date D. Signature E. Name Gotdon K.K. Hong F. Title Highway Safety Manager Schedule A HPD SEAT BELT MISSION/GOAL The goal of this project is to increase the use of seat belts by 5% from 94.2% to 98.91% by the end of FFY 2009. HPD will also increase the number of seat belt citations issued by 5% from 3,640 to 3,822 and increase the seat belt use percentage of fatal motor vehicle occupants by 5% from 29.2% to 32.12%. HPD's goal for the child restraint usage is to increase it by 10% from 61.89% to 68.08%. PROBLEM IDENTIFICATION: Safety belts, when used con•ectly, 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 2006, 75 percent of passenger vehicle occupants who were totally ejected from the vehicle were killed. Safety belts aze effective in preventing total ejections: only one percent of the occupants reported to have been using restraints were total ejected, compazed with 31 percent of the unrestrained occupants. (NHTSA's Traffic Safety Facts 2006 Data). The seat belt observation survey in early 2007 showed that Hawaii had a seat belt use rate of 94.56%, which is among the top ten states in the nation. On The Big Island, seat belt use rates among vehicle occupants was the third lowest in the state, with a January 2007 observed useage late of 94.2%. In the June 2006 observation period on the Big Island, we were the lowest ranked island in the state for seat belt use, with 89.54%. Though we have shown improvement, we need to continue to strive for more seat belt usage on our island. See Table I for seat belt use by counties. Table I Seat Belt Use by County, 2007 Island Total Belted Total Observed % Total Belted Oahu 30,569 32,517 94.00% Maui 10,266 10680 96.12% Hawaii 6,395 6789 94.20% Kauai 8,623 9,078 95.00% Total 55,853 59,064 94.56% Also, the Hawaii Police Department was active in providing seat belt violations with over three thousand citations given during. FFY 2007. See Table II for occupant protection enforcement statistics. Table II Occupant Protection Enforcement Statistics FFY 2007 Honolulu Hawaii Maui Kauai Total County County Count' Grant 1,619 1,128 3,957 847 7,551 Funded S.B. Citations County 6,038 2,512 N/A 340 .8,890 Funded S.B. Citations Grant 132 56 49 30 267 Funded C.R. Citations County 576 420 N/A 44 .1,040 Funded C.R. Citations Although, the seat belt use rate statewide is high, Fatal Analysis Reporting System (EARS) statistics show a completely different picture. Statewide only 40.4% of the vehicle occupants were wearing seat belts. On the Big Island, 29.2% of the 24 fatal motor vehicle occupants were wearing their belts. Had the 17 that did not wear 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 2006 Restraint System Use-Vehicle Occupancy Fatalities by County Total Belted Total Occu ants Percent usa e C&C Honolulu 18 48 37.5% Hawaii County 7 24 29 2% Maui County 7 11 63.6% Kauai Count 6 11 54.5% Total 38 94 40.4% In 2006, our early estimates show that we lost 161 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. Research on the effectiveness of child safety seats in passenger cars has found them to reduce fatal injury by 71 % for infants (less than one year old) and by 54% for toddlers (1-4 years old). 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 usage figure of 93% for toddlers with a w7.v io usage race m ~anuarv tuu / ana naa a 2SS 9 % compliance rate for infants comnared to 98% for infants nationally. However, the 62% 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 years of age By Island, 2007 Usage Rate Oahu Maui Hawaii Kauai Total Infants 92.45% 100% 85.86% 93.33% 91.47% Toddlers 84.64% 16.13% 49.60% 49.20% 62.38% Total 86.47% 45.07% 61.89% 56.66% 70.38% SOLUTION: The Hawaii Police Department (HPD) believes that enforcement is the key to making people use their seat belts while on our roadways. HPD will implement an aggressive seat belt enforcement program through out FFY 2009. HPD will also participate in the National "Click It or Ticket" campaign during May 18 to May 31, 2009 and other mobilizations efforts by NHTSA. HPD will also enforce the Child Restraint law. STRATEGIES 1. Conduct at least 100 seat belt checkpoints. 2.. Issue 3000 or more citations for seat belt and child restraint with grarif funds." '~ ' ` 3. Issue 500 or more citations for other violations, both moving and regulatory. 4. Effect 25 or more arrests during enforcement projects. 5. Conduct media campaigns during "Click it or Ticket" and other enforcement periods. 6. Participate in National "Click it or Ticket" Campaign. EVALUATION: The goal of this project is to increase the use of seat belts by 5% from 94.2% to 98.91 % by the end of FFY 2009. HPD will also increase the number of seat belt citations issued by' S% from 3,640'fo 3;822 and increase the seat belt use percentage of fatal motor vehicle occupants by 5% from 29.2% to 32.12%. HPD's goal for the child restraint usage is to increase it by 10% from 61.89% to 68.08%. EXHIBIT III SCHEDULE B "'~"" SCHEDULE B (1) PERSONAL SERVICES Employee Salaries and Benefits Position Title: Salary: $ 360.00 (Day) Fringe Benefit Rate: Time to be spent on project: 422 hours Total Salaries and Benefits: $ 76,000.00* Air Travel To: From: Cost: $ Intra State. Inter State Total Air Travel: $ Surface Travel Car Rental: $ Private Caz:. ( miles @ _ per mile) Total Surface Travel : $ Per Diem Intea State: days @ $ _ per day Total: $ Inter State: days @ $ _ per day Total: $ Total Per Diem: $ Tuition, Course, Reg istration and Misc. Fees Fee: $ Fee: $ Total Tuition and Misc.: $ TOTAL PERSONAL SERVICES: $ 76,000.00* 9 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): $ Purpose of equipment must be detailed in Schedule A. 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 10% of total salazies Federal (Shaze) Funds Requested* $ Agency (Share) Budget Item $ TOTAL PROJECT COST: $ 76,000.00* Note: Identify all costs to be reimbursed by Federal funds with an asterisk (*). EXHIBIT IV SCHEDULE C ' SCHEDULE C HPD SEAT BELT ENFORCEMENT Project Number: __ MILESTONES Month I Activity October-December 2008 Seat belt Enforcement projects conducted island wide. January-March 2009 I Seat belt Enforcement projects conducted island wide. April-June 2009. f Seat belt Enforcement projects conducted island wide. Participation in National "Click It or Ticket" program in May. Media campai¢n. July-September 2009 I Seat belt Enforcement projects conducted island wide. EXHIBIT V SCHEDULE D SCHEDULE D Agreement of Understanding & Compliance Project Number: OP06-05(02-H-02) 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 [his 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 rpay 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 [o reimburse the UNITED STATES DEPARTMENT OF TRANSPORTATION out of its funds for any ineligible or unauthorized expondimres 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 iJNITED 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 [his project ceases to be used in the manner as set forth by the project agreement. In such even[, APPLICANT further agrees [o 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 detemuned by the STATE, or to transfer or otherwise dispose of such equipment as directed by STATE. B. I[ 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 ap'prova] of the STATE. C. It is mutually agreed and promised that the APPLICANT shall maintain or cause to be maintained for itsuseful life, any equipment purchased under this project. III. Application of Hatch Act A. I[ is muNally 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. I[ is mutually agreed and promised that pursuant [o 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 [o receiving approval of this application submitted under [he 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, i[ 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 [he Departrnent of Commerce (Title 15, Code of Federal Regulations, Part 8, which have been adopted 6y the Department of Transportation, and hereinafter referred to as [he Regulations), to [he end [ha[, 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. I[ 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) Caricel, 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. I[ is mutually agreed and understood that the APPL]CANT 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. VIh 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 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 [o use in any manner such copyrigh[able material. B. Tt 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 Govermnents and their political subdivisions. VIIL Certification Regarding Debarment and Suspension A. Ins[mctions 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, "debaned," "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 [he 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 [hose regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, i[ 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 [his 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 requve 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 6y a prudent person in the ordinary course of business dealings. ~ ~ ~ ~ - ' ' "~ 9. Except for transactions authorized under paragraph 5 of these instructions, if a pamcipant 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, subpar[ 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 lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debaned, 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 ofDOT-assisted contracts. XI. Requirements A. It is mutually agreed and promised that the applicant shall follow the Slate and Federal requirements and guidelines se[ forth in the S[a[e of Hawaii Project Procedures Manual as amended. All project expenditure records are to be retained for at least three years aRer the date of the fiu~l 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.