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SY os'' ' • COUNTY OF HAWAII STATE OF HAWAI I RESOLUTION NO. 164 23 A RESOLUTION PROPOSING THE ESTABLISHMENT OF A WATER SYSTEM IMPROVEMENT DISTRICT FOR IKI PLACE, KOHANAIKI HOMESTEADS. WHEREAS, it has been brought to the attention of the Council of the County of Hawai`i (the "Council")that the water distribution system for Iki Place, Kohanaiki Homesteads (the "Subdivision"), located at Kohanaiki,North Kona, Hawai`i, is not built to County standards; and WHEREAS, on October 5, 2016, pursuant to Section 12-10(a), Hawai`i County Code, the Council adopted Resolution No. 634-16, directing the Manager-Chief Engineer of the Department of Water Supply "DWS",to prepare and submit the Manager's Report on the proposed establishment of a water system improvement district, known as the "Iki Place Water System Improvements" and the costs of design and installation of a public water delivery system for the Improvement District; and WHEREAS, Communication No. 187, as issued by the Manager-Chief Engineer, submitted for the Council's consideration the Manager's Report dated March 10, 2017,, a copy of which is attached hereto and incorporated herein as Exhibit A; and WHEREAS, DWS initiated an application to the United States Department of Agriculture (the "USDA") for grant and loan funding by the USDA Rural Utilities Service ("RUS"); and WHEREAS, DWS caused to be prepared a Preliminary Engineering Report for the Iki Place Water System Improvements dated July 26, 2022, and prepared by Foresight Engineering & Design, LLC., a copy of which is attached hereto and incorporated herein as Exhibit B; and WHEREAS, a Letter of Conditions from the USDA Department of Agriculture dated August 25, 2022, was received by DWS, a copy of which is attached hereto and incorporated herein as Exhibit C; and WHEREAS, the Letter of Conditions states that the Iki Place Water System Improvements will provide significant benefits to the health, safety, and welfare of the residents of the Subdivision and that the estimated construction, acquisition, and installation costs of the Improvement District(collectively,the "Project Costs") are $1,100,000; and WHEREAS, the Letter of Conditions includes verification that DWS's application for up to $825,000 of RUS grant funds and$275,000 of RUS loan funds for the Improvement District is being considered by the USDA, subject to the conditions specified therein; and