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EXHIBIT A -tY /j ; : ' ,,,I, William P.Kenoi k. 4 ;+ BJ Leithead Todd . Mayor =- - Director Walter K.M.Lau o;•N,,+'_- John A.Medeiros Managing Director Deputy Director (grfUnt of Aaiun1`1 DEPARTMENT OF ENVIRONMENTAL MANAGEMENT 345 Kekllanito`a Street,Suite 41 • Hilo,Hawai i 96720 (808)961-8083 •Fax(808)961-8086 http://www.hawaiicounty.govienvironmental-management/ September 8, 2014 Council Chair J Yoshimoto and Hawai'i County Council Members 25 Aupuni Street Hilo, Hawai'i 96720 Re: Lono Kona Subdivision Sewer Improvement District-Amendment to Director's Report Dear Council Chair and Council Members: Reference is made to the amended Director's Report (Communication No. 492.1) dated December 11, 2013 (the "Director's Report") submitted by the undersigned in connection with the proposed establishment of a Sewer Improvement District (the "Improvement District") to fund the costs of a public sewer system (the "Improvements") for the Lono Kona Subdivision. This letter is submitted to amend certain provisions of the Director's Report pertaining to the assessment of properties within the Improvement District as described below. Background In accordance with Section 12-10(a) of the Hawai'i County Code 1983 (2005 Edition), as amended, and Resolution No. 120-11 of the Hawai'i County Council (the "County"), the Director's Report contained, among other things, information pertaining to the proposed assessment of properties within the Improvement District in order to pay or reimburse the County of Hawai'i (the "County") for the costs of the Improvements and/or the debt service on bonds issued by the County to pay such costs (the "Bonds"). As described in Section 3 of the Director's Report and in the Proposed Assessment Roll attached as Exhibit F thereto (the "Proposed Assessment Roll"), the proposed assessments were based on the following findings and determinations: • That the Improvement District consists of 110 assessable properties representing 145 assessment units(i.e., subdivided parcels and condominium units); • That the assessment units will be subject to assessment based on wastewater generation, converted into single family equivalents ("SFEs"), estimated on the basis of their existing uses or, in the case of vacant properties, their permitted uses under existing zoning; County of Hawaii is an Equal Opportunity Provider and Employer.