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COUNTY OF HAWAI'I :•:,��SO H STATE OF HAWAI'I .. .''':41/.6-1-ri.ii-i. RESOLUTION NO. 542 24 A RESOLUTION OF DETERMINATION TO PROCEED TO CREATE AND DEFINE A WATER SYSTEM IMPROVEMENT DISTRICT FOR IKI PLACE, KOHANAIKI HOMESTEADS. WHEREAS, on October 5, 2016,the Council of the County of Hawai`i (the "Council") adopted Resolution No. 634-16,to Initiate an Improvement District to Facilitate Construction of Permanent Improvements to Iki Place, Kohanaiki Homesteads (the "Subdivision") in North Kona, including Improvement of a Water Distribution System (the "Improvement District") to County Standards, in accordance with Chapter 12 of the Hawai`i County Code 1983 (2005 Edition, as amended) relating to Improvements by Assessments; and WHEREAS, Resolution No. 634-16, a copy of which is attached hereto and incorporated herein as Exhibit"A", directed the Manager-Chief Engineer of the Department of Water Supply (the "Manager")to prepare and submit a report on the proposed Improvement District in accordance with Section 12-10(a) of the Hawai`i County Code (2005 Edition, as amended); and WHEREAS, on June 21, 2023,the Council adopted Resolution No. 164-23, a copy of which is attached hereto and incorporated herein as Exhibit"B",to Propose the Establishment of a Water System Improvement District for Iki Place, Kohanaiki Homesteads, and thereby approved and adopted the findings, conclusions, and recommendations specified within its exhibits identified therein as: 1. Exhibit A, containing the Iki Place Water Improvement District—Manager-Chief Engineer's Report(the"Manager's Report"), dated March 10, 2017, transmitted via Communication No. 187, and prepared by the Manager with respect to the proposed water system improvement district for the Kohanaiki Homesteads; and 2. Exhibit B, containing a Preliminary Engineering Report for the Iki Place Water System Improvements (the "Preliminary Engineering Report"), dated July 26, 2022, and prepared by Foresight Engineering & Design, LLC; and 3. Exhibit C, containing a Letter of Conditions from the United States Department of Agriculture (the "USDA Letter of Conditions"), dated August 25, 2022, and received by the Department of Water Supply ("DWS"); and WHEREAS, in adopting Resolution No. 164-23,the Council concurred with the conclusion of the Preliminary Engineering Report that"the establishment of the Improvement District will provide significant benefits to the health, safety, and welfare of the residents of the Subdivision," and found that, in accordance with Section 12-10(i) of the Hawai`i County Code 1983 (2016 Edition, as amended) (the "Code"), the creation of the proposed Improvement