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MANAGER'S REPORT Kona Ocean View Properties Subdivision Water System Improvement District Introduction This report has been prepared in response to Hawaii County Council Resolution No. 47 -07 dated February 22, 2007. It provides material requested by the Council in the order presented in the resolution. Council Resolution No. 47 -07 directed the Manager, Department of Water Supply to prepare and submit to the council a report containing the following: "(1) Preliminary data concerning the special improvement proposed to be opened, constructed, or improved; (2) The general character and extent of any improvement to be proposed; (3) The proposed assessment unit and method of assessment; (4) Whether any new land will be necessary to be acquired, and the estimated cost thereof and the proportion of the cost which should be borne by the County; (5) The materials recommended to meet the conditions of the improvement; (6) The boundaries of the proposed improvement district and any subdistricts or zones therein as to which different portions of the cost of improvements should be charged; (7) The estimated cost of the improvement, the portions of the cost to be borne by the County, and the portions of the cost to be assessed against the assessment units specially benefited with the maximum unit of assessment to be made against each assessment unit to be assessed; and (8) All necessary plans and other data, details, and specifications for the improvements and any other matters or details intended to apply thereto .... " The proposed improvement district, to be initiated by the Hawaii County Council, is for the design and installation of the water system for the Kona Ocean View Properties subdivision in North Kona that will meet the Department of Water Supply standards. Once completed, the system will be dedicated to the Department of Water supply for operation and maintenance. 1