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HomeMy WebLinkAboutCOM 0041.035 2008-2010 + 1' osM, i William P. Kenoi : , \� 'IS Harry S. Kubojiri Police Chief • Mayor nn . i� Y + :eFr� ' � •• Paul K. Ferreira Deputy Police Chief County of Hawaii ' i POLICE DEPARTMENT 349 Kapi`olani Street • Hilo, Hawai`i 96720 -3998 (808) 935 -3311 • :> `1 L =7 DATE: September 22, 2010 ` ' ^ ; ? TO J YOSHIMOTO, COUNCIL CHAIR AND COUNCIL MEMBERS VIA: KAY IRO, C NTROLI ER FROM: D ' K PA HE 0, ACTING POLICE CHIEF RE: NOTIFICATION OF GRANT AWARD COMPLIANCE WITH ORDINANCE NO. 10 -59, SECTION 7(1) Name of Grant Program: CIOT Basketball Tournament Grantor: State Department of Transportation County Grantee Department or Agency: Hawaii County Police Department Grant No. (IF KNOWN): Amount of Grant: $15,400.00 Amount of County Match: none County Revenue & Expenditure Account Numbers: 010.201.5216.12:3303.34 Grant Period (Commencement & Completion): October 1, 2010 to September 30, 2011 Purpose of Grant: To reduce fatalities & injuries to font and rear seat occupants aged 17 and under by improving awareness of state laws. Is final report required by grantor? Ei Yes — No Notification attached: j Yes n No, because Carlo No, 9/.35 Ref. Toe ---- Ref. Date SEP 2 8 2010 Form NGAI l /OS "Hawai'i County is an Equal Opportunity Provider and Employer" y EXHIBIT I STATE OF HAWAII HIGHWAY SAFETY PROJECT GRANT AGREEMENT • STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT Grant No: Page 1 (To be completed by applicant agency) 1. Grant Title Hawai'i Police Department CIOT Basketball Tournament 2. Name and Address of Applicant Agency 4. Duration Hawai'i Police Department Month — Day — Year 349 Kapi`olani St. Hilo, Hawai'i 96720 A. Grant Period From: 10 -01 -10 To: 09 -30 -2011 3. Agency Unit to Handle Grant (Name and Address) Hawai'i Police Department B. Project Period 349 Kapi`olani St. From: 10 - 01 - 10 Hilo, Hawai'i 96720 To 09 -30 -2011 5. Location of Project 6a. Type of Application Hawai'i Police Department (Check Appropriate Item) 349 Kapi`olani St. ®Initial ❑Revision ❑Continuation Hilo, Hawai'i' 96720 6b. Reimbursement Schedule Desired ❑Monthly ®Quarterly 7. Grant Description (Summarize the grant plan covering activities that address the major goals and objectives in approximately 100 words. Limit to 6 lines.) 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. Federal funds allocated under this agreement shall not exceed $15,400.00 9. Approval Signatures Acceptance of Conditions: It is understood and agreed by the undersigned that a reimbursement grant received as a result of this grant agreement is subject to Public Law 89 -564 (Highway Safety Act of 1966) and all administrative regulations governing grants established by the U.S. Department of Transportation and the State of Hawaii. It is expressly agreed that this project constitutes an official part of the Hawaii Highway Safety Program and that said applicant agency will meet the requirements as set forth herein, including accompanying schedules A, B, B -I, C & D, which are incorporated herein and made a part of this grant agreement. Authorization to proceed with this Highway Safety Project is requested. 9a. Grant Director 9b. Authorizing Official of Agency Unit P hone: Name: W illiam Kenoi Name: Harry Kubojiri Phone: Title: Police Chief Fax: Title: Mayor Fax: Address: Address: E -Mail: E -Mail. SEP 2 0 2010 YAIIIMEm nature (Date) (Signature) (Date) To be prepared by applicant, use separate sheets as required. Form HS 3 -71 Rev. 8/6/09 IN WITNESS WHEREOFF, the parties hereto have caused this contract to be executed. APPROVED AS TO FORM AND LEGALITY: Corporation Counsel STATE OF HAWAII ) SS. COUNTY OF HAWAII ) On September 20, 2010 , before me personally appeared WILLIAM P. KENOI, to me personally known, who, being by me duly sworn, did say that he is the Mayor of the County of Hawai`i, a municipal corporation of the State of Hawai`i, that the seal affixed to the foregoing instrument is the corporate seal of said County of Hawai`i, the foregoing instrument was signed and sealed on behalf of the County of Hawai`i by authority given to said Mayor of the County of Hawai`i by Sections 5 -1.3 and 13 -13 of the County Charter, County of Hawai`i (2000), as amended, and said WILLIAM P. KENOI acknowledged said instrument to be the free act and deed of said County of Hawai`i. • Notary Public, State of Hawai`i Printed Name: Guillerma G. Sumera My commission expires: 9/22/13 NOTARY CERTIFICATION STATEMENT • Document Identification or Description: State DOT Motor Vehicle Safety Office Grant Agreement = reduce fatalities & injuries to front & rear seat occupants aged 17 & under by improving awareness of state laws Doc. Date: 10 -01 -10 or ❑ Undated at time of notarization. No. of Pages: 3 Jurisdiction: Third Circuit L !1' L., LaN, SEA 2 0 20111 Signature of Notary Date of Notarization and Certification Statement Guillerma G. Sumera Printed Name of Notary • STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT — PART II Grant No: Page 2 (To be completed by Highway Safety Office) 10. Grantee: 11. Standard Area: 13a. Federal Fiscal Year 12. Effective Date of Agreement: _ 13b. Addendum: ❑Yes ONo 14. Benefit of : ❑ State ❑County 15. Action Taken 16. Funding Disposition & Status Fiscal Year Amount Total $ Present Obligation $ Previously Obligated $ TOTAL FUNDS OBLIGATED $ 17. Budget Summary (From Schedule B — Detailed Budget Estimate) — Fiscal Year Grant Period Ending: Cost Category Cost Estimates A. Personnel Costs B. Travel Expenses C. Contractual /Consultant Services D. Equipment E. Other Direct Costs TOTAL FEDERAL FUNDS $ 18. Grant Approval & Authorization to Expend Obligated Funds A. Approval Recommended By B. Agreement & Funding Authorized By (Program Area Specialist) (Highway Safety Manager) Name: Name: Title: Title: Phone/E -Mail: Phone/E -Mail: (Signature) (Date) (Signature) (Date) STATE OF HAWAII HIGHWAY SAFETY OFFICE GRANT AGREEMENT — PART III Grant No: Page 3 (To be completed by Highway Safety Office) 19. Addendum (For Highway Safety Office Use Only) Schedule A HPD "Click It Or Ticket PROBLEM STATEMENT Identf the traffic safety related problem or deficiency that the proposed grant is intended to correct. Identify and gather appropriate data relevant to the problem. Collision /fatalities data appropriate to the identified problem and a brief analysis of the data is required. When available, three years of data should be presented and analyzed. When identifying the problem, take into consideration changes in population, traffic patterns and other demographic dynamics that may affect traffic safety. Safety belts, when used correctly, reduce the risk of fatal injury to front -seat passenger car occupants by 45 percent and the risk of moderate -to- critical injury by 50 percent. For Tight truck occupants, safety belts reduce the risk of fatal injury by 60 percent and moderate -to- critical injury by 65 percent. In fatal crashes from 2003 -2007 only 2.0 percent of passenger vehicle occupants who were restrained were ejected from their vehicles, while 35.3 percent of the unrestrained occupants were ejected. Unrestrained occupants were therefore 17.7 times as likely to be ejected from their vehicles, compared to restrained occupants (NHTSA 2009). The seat belt observation survey in January 2010 showed that Hawai'i had a seat belt use rate of 94.96 %, which is a decrease from the June 2009 survey of 97.92 %. On The Big Island, seat belt use rates dropped from 98.06% in June 2009 to 94.5% in January 2010. 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, January 2010 Island Total Belted Total Observed % Total Belted Oahu 28,842 30,147 95.67% Maui 8,634 9,136 94.51% Hawai'i 6,087 6,441 94.50% Kauai 6,184 6,665 92.78% Total 49,747 52,389 94.96% Also, the Hawaii Police Department was active in preventing seat belt violations with over three thousand citations given during FFY 2009. See Table II for occupant protection enforcement statistics. Table II Occupant Protection Enforcement Statistics FFY 2009 Honolulu Hawaii Maui County Kauai Total County County Grant 1,457 1,406 1,997 766 5,626 Funded S.B. Citations County 3,230 2,483 N /A ** 707 6,420 Funded S.B. Citations Grant 104 96 67 55 322 Funded C.R. Citations County 895 420 N /A ** 76 2,706 Funded C.R. Citations * *Maui County funded seat belt /child restraint citations were not available at this time. Although, the seat belt use rate statewide is high, Fatal Analysis Reporting System (FARS) statistics show a completely different picture. Statewide only 26 of the 54 vehicle occupants or 48.1% were wearing seat belts. On the Big Island, 7 of the 14 or 50% fatal motor vehicle occupants were wearing their belts. Had the 7 that did not wear seat belts worn them, about half of them could have survived resulting in a reduction of the total fatalities in Hawai'i County. See Table III on restraint system use - vehicle occupancy fatalities by county. Table III 2009 Restraint System Use - Vehicle Occupancy Fatalities by County Note: Preliminary Data Total Belted Total Occupants Percent usage C &C Honolulu 12 21 57.1% Hawai'i County 7 14 50.0% Maui County 3 11 27.2% Kaua'i County 4 8 50.0% Total 26 54 48.1% In 2009, we lost 109 people in traffic crashes of which 54 were riding in a motor vehicle. If all of the motor vehicle occupants were wearing their seat belts then almost 24 (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) in passenger cars. For infants and toddlers in light trucks, the corresponding reductions are 58% and 59 %, respectively (NHTSA's NCSA 2003). While progress has been made in Hawai ' i County with an overall child restraint use of 89.39% in January 2010, we are still below the 2004 national average of 96% (NHTSA 2008). See Table IV for January 2010 restraint use for children Tess than 4 years of age. Table IV Overall Restraint Use Rates for Children Under 4 years of age By Island, January 2010 Usage Rate Oahu Maui Hawai'i Kaua'i Total Infants 97.87% 82.14% 100% 100% 95.0% Toddlers 92.60% 88.11% 86.79% 87.50% 88.75% Total 93.75% 86.72% 89.39% 89.87% 89.93% GRANT GOALS Goals serve as the foundation upon which the grant is built. Goals are what you hope to accomplish by implementing a traffic safety grant and represent an end result. Grant goals should be stated in measurable terms ( i.e., a percent reduction), be concise and deal with a specific item, be realistic with a reasonable probability of achievement, and be related to a specific time frame (a "by" date). Please notate baseline from which the reduction /increase will result. The Hawai'i 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 throughout FFY 2010. HPD will also participate in the National "Click It or Ticket" campaign during May 25 to June 5, 2011 and other mobilizations efforts by NHTSA. HPD will also enforce the Child Restraint law and educate families and youth about the importance of those laws. GRANT OBJECTIVES Objectives are tasks or activities conducted in order to accomplish the grant goal(s) (e.g., develop permanent fitting stations for child restraints, enforcement activities, educational activities, etc.). Grant objectives should be stated in measurable terms (i.e., a percent reduction, number of training to be held, number of roadblocks, etc.), be concise and deal with a specific item, be realistic with a reasonable probability of achievement, and be related to a specific time frame (a "by" date). Please notate baseline from which the reduction /increase will result. In addition, Hawai'i Police will: 1. Conduct 4 or more "Click It or Ticket" 3 on 3 Basketball Tournaments (at least one in East Hawaii and one in West Hawaii) for youth aged 5 through 18. Each event to run one -three days. 2. Have the participation of 700 youth or more, and attendance of about 1,500 people at the two events. 3. Obtain 1,000 or more pledges from youth and adults to wear their seat belts and ensure that all occupants of vehicles operated by them are seat belted. 4. Distribute 1,000 "Click It or Ticket" t- shirts promoting seat belt use to all participants and volunteers of the event. 5. Issue 400 customized "Click It or Ticket" medals to teams in each age division. 6. Conduct "Click It or Ticket" presentation 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 checkpoints, booster -seat educational presentations and enforcement projects to be conducted to coincide with the tournaments. 9. Tournaments to be held in conjunction with the National "Click It or Ticket" campaign. 10. Identify organizations and opportunities so this event can become self - sufficient. METHOD OF EVALUATION Using data gathered throughout the grant period, the grant manager will evaluate (1) how well the stated grant goals and objectives were accomplished, and (2) was the grant cost effective? How are you going to show effectiveness of your project? What will be the impact of the project on your identified problem and goal(s)? Provide details on the method of evaluation. The goal of this project is to increase the use of seat belts by 3% from 94.50% in FFY2010 to 97.33% by the end of FFY 2011. HPD will also increase the number of seat belt citations issued by 5% from 3,889 to 4,083 and increase the seat belt use percentage of fatal motor vehicle occupants by 5% from 50% to 52.5 %. HPD's goal for the child restraint usage is to increase it by 5% from 89.39% to 93.85 %. SCHEDULE B Exhibit III Page 1 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES A. Personnel Costs Employee Salaries and Benefits Position Title(s) and Full - Time /Part-Time Yearly Salary: Basketball officials and score keepers $10 per game x 400 games $4,000 Fringe Benefit Rate: Time to be spent on project: 72 -96 hours Position Title(s) and Overtime Hourly Rate(s): Fringe Benefit Rate: Time to be spent on project: hours Category Sub -Total $4,000 B. Travel Expenses In -State Event /Conference: Air Travel: To: From: Surface Travel: Car Rental (daily rate, # of days, fuel, taxes, etc.) Private Car: ( miles @ per mile) SCHEDULE B Exhibit III Page 2 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES Per Diem: days @ $ per day Baggage Fee: Tuition, Course, Registration and Miscellaneous Fees: Individual cost: x No. of attendees: Out -of -State Event /Conference: Air Travel: To: From: Surface Travel: Car Rental (daily rate, # of days, fuel, taxes, etc.) Private Car: ( miles @ per mile) Per Diem: days @ $ per day Baggage Fee: Tuition, Course, Registration and Miscellaneous Fees: Individual cost: x No. of attendees: Category Sub -Total C. Contractual/Consultant Services Category Sub -Total SCHEDULE B Exhibit III Page 3 Detailed Budget Estimate Grant No: COST CATEGORY COST ESTIMATES D. Equipment Ciot tournament T -shirts 1,000 @ $8.00 per shirt $8,000 Ciot tournament medals 400 @ $6.00 per medal $2,400 Category Sub -Total $10,400 E. Other Direct Costs Gymnasium facility rental ($500.00 per event) $1,000 Category Sub -Total $1,000 GRANT TOTAL $15,400 SCHEDULE B -1 Exhibit III Grant No: BUDGET NARRATIVE PAGE # Personnel Costs HPD will hire basketball officials and score keepers for these tournaments. The number of games played is unknown at this time, as it depends on the amount of participants, and the number of tournaments held. The hourly rate is based on $10 per game for each basketball official and score keeper. Travel Expenses Contractual/Consultant Services Equipment HPD will purchase ciot tournament t- shirts, 1,000 T -shirts @ $8.00 each and ciot tournament medals, 400 medals @ $6.00 each. Thus the total for these items will be $10,400. The t -shirts and medals will be given to participants. Other Direct Costs HPD will have to utilize a gymnasium to conduct the tournaments and thus will incur a rental fee for use of the state facility. The cost is listed as $500 per event. SCHEDULE C Exhibit IV Grant No: MILESTONES PAGE # Month Activity October 2010 Establish community coalition to coordinate events including facility reservations, t -shirt design, advertisement of event, ordering of t -shirts and medals, scheduling and registration. January 2011 -April 2011 Coordination of "Click It or Ticket" tournaments to be held in East and West Hawaii. May 2011 - August 2011 Click It or Ticket" 3on 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. August 2011 Meeting with HIPAL to review events. • • . 4 . SCHEDULE D Exhibit V AGREEMENT OF UNDERSTANDING & COMPLIANCE Grant No: THIS AGREEMENT made and entered into by and between the STATE OF HAWAII by and through its Director of Transportation, hereinafter referred to as "State," and the Governmental Unit named in this application, hereinafter referred to as "Applicant." WHEREAS, the National Highway Safety Act of 1966 (Public Law 89 -564) provides Federal funds to the STATE for approved highway safety projects, and WHEREAS, STATE may make said funds available to various state, county or municipal agencies or governments or political subdivisions upon application and approval by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, and WHEREAS, STATE is obligated to reimburse the UNITED STATES DEPARTMENT OF TRANSPORTATION out of its funds for any ineligible or unauthorized expenditures for which Federal funds have been claimed and payment received, and WHEREAS, the above name APPLICANT has submitted an application for Federal funds for highway safety projects. NOW, THEREFORE, IN CONSIDERATION OF MUTUAL PROMISES AND OTHER GOOD AND VALUABLE CONSIDERATION, THE PARTIES AGREE AS FOLLOWS: I. Reimbursement of Eligible Expenditures A. It is mutually agreed and promised that upon written application by APPLICANT and approval by STATE and the UNITED STATES DEPARTMENT OF TRANSPORTATION, STATE shall obligate said Federal funds to APPLICANT'S account for reimbursement of eligible expenditures as set forth in the application. B. It is mutually agreed and promised that APPLICANT shall reimburse STATE for any ineligible or unauthorized expenditures for which Federal funds have been claimed and payment received as determined by a State or Federal audit. Costs are not allowable for construction, rehabilitation, remodeling, or for office furnishings and fixtures - for State, local or private buildings or structures. The following are examples of items considered as furnishings or fixtures, for which reimbursement is not eligible: Desks Credenzas Storage Cabinets Chairs Bookcases Portable Partitions Tables Filing Cabinets Pictures, Wall Clocks Shelving Floor Coverings Draperies Coat Racks Office Planters Fixed Lighting/Lamps C. It is further agreed and promised that where reimbursement is made to APPLICANT in installments, STATE shall have the right to withhold any installments to make up reimbursement received for any ineligible or unauthorized expenditures until such time as the ineligible claim is made up or corrected by APPLICANT. II. Property Agreement A. It is mutually agreed and promised that the APPLICANT shall immediately notify the STATE if any equipment purchased under this project ceases to be used in the manner as set forth by the project agreement. In such event, APPLICANT further agrees to either give credit to the project cost or to another active Highway Safety project for the residual value of such equipment in an amount to be determined by the STATE, or to transfer or otherwise dispose of such equipment as directed by STATE. B. It is mutually agreed and promised by the APPLICANT that no purchased equipment under this project will be conveyed, sold, salvaged, transferred, etc. without the express written approval of the STATE. C. It is mutually agreed and promised that the APPLICANT shall maintain or cause to be maintained for its useful life, any equipment purchased under this project. III. Application of Hatch Act A. It is mutually agreed and promised that the APPLICANT shall notify all employees of the APPLICANT, whose principal employment is in connection with any Highway Safety project, financed in whole or in part by loans or grants under the Highway Safety Act of 1966, of the provisions of Section 12 (a) of the Hatch Act [5 U.S.C. 118K (a)]. IV. Equal Opportunity A. It is mutually agreed and promised that pursuant to the requirements of Section 22 (a) of the Federal -Aid Highway Act of 1968, Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and the Age Discrimination Act of 1975, the APPLICANT, as a condition to receiving approval of this application submitted under the Highway Safety Act of 1966, hereby gives its assurance that employment in connection with the subject Highway Safety Program project will be provided without regard to race, color, creed, sex, handicap, age, or national origin. The APPLICANT further agrees that, as a condition to receiving approval of this application, it will be subject to, and will comply with, Title VI of the Civil Rights Act of 1964, 78 Stat. 252, 42 U.S.C. 2000d to 2000d -4 (hereinafter referred to as the Act), and all applicable requirements pursuant to the Regulations of the Department of Commerce (Title 15, Code of Federal Regulations, Part 8, which have been adopted by the Department of Transportation, and hereinafter referred to as the Regulations), to the end that, in accordance with the Act and the Regulations, no person in the United States shall on the ground of race, color, creed, sex, handicap, age, or national origin be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under the subject Highway Safety Program or project. B. It is mutually agreed and promised that if the APPLICANT fails or refuses to comply with its undertaking as set forth in these provisions, the STATE of the UNITED STATES DEPARTMENT OF TRANSPORTATION may take any or all of these following actions. (1) Cancel, terminate, or suspend in whole or in part the agreement, contract, or other arrangement with respect to which the failure or refusal occurred; and (2) Refrain from extending any further Federal financial assistance to the applicant agency under the program with respect to which the failure or refusal occurred until satisfactory assurance of future compliance has been received from the applicant agency. V. Non- duplication of Grant Fund Expenditures A. It is mutually agreed and promised that the APPLICANT has no ongoing or completed projects under agreement with any other Federal fund source which duplicate or overlap any work contemplated or described in this project. B. It is mutually agreed and promised that the APPLICANT will either revise this project or revise any pending or proposed request for other Federal grant funds which would duplicate or overlap work under this project to exclude any such duplication of grant fund expenditures. C. It is further mutually agreed and understood that the APPLICANT shall reimburse the STATE OF HAWAII for any such duplicate expenditures for which Federal grant funds have been claimed and payment received as determined by State or Federal audit. VI. Project Income and Applicable Credits A. It is mutually agreed and understood that the APPLICANT shall apply all proceeds or credits generated under the project, such as but not restricted to: The sale of real or personal property royalties received from copyrights and patents, sale of publications or from personal or incidental services, to the project in accordance with OMB Circular A -87 (FMC 74 -7) or A -21, as applicable and NHTSA/FHWA Order 460 - 4/7510.1. VII. Copyrights and Patents A. It is mutually agreed that any copyrightable materials produced in the course of a project may be the property of the State or applicant agency; however, provisions should be made to obtain for the United States Government, the State Governments and their political subdivisions a royalty -free nonexclusive, and irrevocable license to use in any manner such copyrightable material. B. It is mutually agreed that the ownership of all rights accruing from any patentable discoveries or inventions resulting from a project should be covered in the agreement. An irrevocable, nonexclusive, nontransferable, and royalty -free license to practice each discovery or invention in the manufacture, use and disposition, according to law, of any article or material, and in the use of any method developed as part of the work under the agreement should be obtained for the United States Government, the State Governments and their political subdivisions. VIII. Certification Regarding Debarment and Suspension A. Instructions for Certification 1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below. 2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. 3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances. 4. The terms covered transaction, "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definition and Coverage sections of 49 CFR Part 29. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations. 5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR Part9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated. 6. The prospective lower tier participant further agrees by submitting this proposal that is it will include this clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion -- Lower Tier Covered Transaction," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions. (See below.) 7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR Part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties Excluded from Federal Procurement and Non - procurement List. 8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings. 9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR Part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment. IX. Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion — Lower Tier Covered Transactions 1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency. 2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participants shall attach an explanation to this proposal. X. Minority Business Enterprise Requirements It is the policy of the Department of Transportation that minority business enterprises, as defined in 49 CFR Part 23, shall have the maximum opportunity to participate in the performance of contracts financed in whole or in part with Federal funds under this agreement. Consequently, the MBE requirements of 49 CFR Part 23 apply to this agreement. The recipient or its contractor agrees to ensure that minority business enterprises as defined in 49 CFR Part 23 have the maximum opportunity to participate in the performance of contracts and subcontracts financed in whole or in part with Federal funds provided under this agreement. In this regard, all recipients or contractors shall take all necessary and reasonable steps in accordance with 49 CFR Part 23 to ensure that minority business enterprises have the maximum opportunity to compete for and perform contracts. Recipients and their contractors shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of DOT - assisted contracts. XI. Requirements A. It is mutually agreed and promised that the applicant shall follow the State and Federal requirements and guidelines set forth in the State of Hawaii Project Procedures Manual as amended. All project expenditure records are to be retained for at least three years after the date of the final expenditure report. XII. Authorization to Proceed A. It is mutually agreed between the STATE and the APPLICANT that this AGREEMENT OF UNDERSTANDING AND COMPLIANCE shall become effective upon the STATE'S agreement and authorization to proceed as set forth in PART II (2) of this application.