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The majority of the funding for the project is proposed from the USDA's Rural Utilities Service <br />Water and Waste Water Loan and Grant program through the USDA's State of Hawaii Rural <br />Development Office. The amount of the loan ($1,169,000) and grant ($353,369) is based on the <br />median income of the users within the improvement district. The remaining $47,000 is to be <br />financed by the Department of Water Supply. <br />8. Necessary Plans, Data, Detail, and Specifications <br />All necessary plans and other data, details and specifications for the improvements and any other <br />matters or details intended to apply thereto are contained in the following exhibits appended to <br />this report: <br />Map titled Proposed Kona Ocean View Properties Subdivision Water System Improvement <br />District ", Exhibit A. <br />2. Pre - Application by the County of Hawaii Department of Water Supply Kona Ocean View <br />Properties Water System Improvements, Water and Waste Disposal System for Rural <br />Communities dated 12/9/09, Exhibit B. <br />3. Letter of Conditions from USDA State Director Chris J. Kanazawa dated July 28, 2008, <br />Exhibit C. <br />4. Proposed Assessment Roll Kona Ocean View Properties Water Improvement District" based <br />upon available information from County Real Property Tax Division, Exhibit D. <br />5. List of 20 owners credited for prior payment of facilities connection charge to DWS, Exhibit <br />E. <br />6. Preliminary Engineering Report for Kona Ocean View Properties Water System <br />Improvements dated July 14, 2010, Exhibit F. <br />Conclusion <br />Given the public health and safety concerns associated with the existing substandard water <br />supply to the Kona Ocean View Properties subdivision, it is imperative that a County dedicable <br />water system be constructed within the subdivision. It is the finding of this report that the <br />proposed water improvement district fully meets the "public interest" standard specified in <br />Chapter 12 -10(i) of the Hawaii County Code to warrant a Council- initiated improvement district <br />resolution. Moreover, given that all measures and proposals have been studied exhaustively, and <br />that the only feasible, enforceable and affordable plan to implement such a system is through a <br />combined USDA loan/grant and a Council- initiated improvement district resolution, it is <br />incumbent on the Council, DWS, and all affected property owners to ensure that this effort goes <br />forward. <br />Milton D. Pavao, Manager, <br />Department of Water Supply <br />0 <br />