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April 27, 2017 <br />Page 2 <br /> I was aware <br />that any contract modification related to site location, and the underlying entitlements <br />and permitting, may take two to three years. The most prudent approach was to <br />continue the mulching phase of the Contract, with a price adjusted for only mulching <br />and enhanced mulching services, rather than continuing to incur the compost <br />production costs as required under the Contract. <br />I have always agreed with the benefits of mulching and enhanced mulching for <br />the County. Although, any mulch or enhanced mulch would be distributed at no cost to <br />our citizens, the same is not true for products from the composting facility. Under the <br />sole property of Hawaiian Earth Recycling, LLC (HER), which HER has confirmed will <br />be sold. Under the contract, HER has the right to charge for the mulch. <br />I was aware that HER would have a right under the Contract to make a <br />reimbursement claim based upon any proven expenditures. There were statements <br />from HER regarding the possible filing of claims, none was filed. There were no <br />statements made on possible litigation against the County by HER and none were filed. <br />I strongly oppose the view that the termination notice of the contact may send the <br />and decisions. To the contrary, the message is that the County erred and therefore was <br />willing to take steps to correct that error with a good contract that prioritizes the lifestyles <br />of its citizens, and also weighs the costs to its citizens. <br />We are nearing a resolution of <br /> Please do <br />not hesitate to call me for any clarification if needed. <br />Thank you, <br /> HARRY KIM <br /> Mayor <br />County of Hawai`i is an Equal Opportunity Provider and Employer. <br />