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COUNTY OF HAWAII STATE OF HAWAII RESOLUTION NO. 26ii 14 A RESOLUTION PROPOSING THE ESTABLISHMENT OF A SEWER SYSTEM IMPROVEMENT DISTRICT FOR THE LONO KONA SUBDIVISION. WHEREAS, on September 8, 2011, pursuant to Section 12-10(a), Hawai'i County Code, the Hawai'i County Council ("Council") adopted Resolution No. 120-11, Draft 2, directing the Director of the Department of Environmental Management ("DEM") to prepare and submit a report on the proposed establishment of a Sewer System Improvement District ("Improvement District") including the costs of design and installation of a public sewer system for the Improvement District for the Lono Kona Subdivision ("Subdivision"); and WHEREAS, on December 17, 2013, the Council received an amended report on the proposed establishment of the Improvement District from the Director of DEM (Communication No. 492.1) dated December 11, 2013, replacing a report previously submitted on October 29, 2013, a copy of which amended report (referred to herein as the "Director's Report") is attached as Exhibit A to this Resolution, including the supporting surveys, plans, estimates, maps, and other data contained therein, all of which are incorporated herein by this reference; and WHEREAS, the Director's Report states, among other things, that the proposed Improvement District 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 $6,461,800; and WHEREAS, in connection with the proposed Improvement District, DEM 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