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+ V OF of <br />COUNTY OF HAWAII STATE OF HAWAII <br />RESOLUTION NO. 41 11 <br />A RESOLUTION PROPOSING THE ESTABLISHMENT OF A WATER SYSTEM <br />IMPROVEMENT DISTRICT FOR THE KONA OCEAN VIEW PROPERTIES <br />SUBDIVISION. <br />WHEREAS, it has been brought to the attention of the Council of the County of Hawaii <br />(the "Council ") that the water distribution system for the Kona Ocean View Properties <br />subdivision (the "Subdivision "), located at Pu`ukula, North Kona, Hawaii, is not built to County <br />standards; and <br />WHEREAS, on February 22, 2007, pursuant to Section 12- 10(a), Hawaii County Code, <br />the Council adopted Resolution No. 47 -07, directing the Manager -Chief Engineer of the <br />Department of Water Supply ( "DWS ") to prepare and submit a report (the "Manager's Report") <br />on the proposed establishment of a water system improvement district (the "Improvement <br />District ") and the costs of design and installation of a public water delivery system for the <br />Improvement District; and <br />WHEREAS, on October 22, 2010, the Council received the Manager's Report <br />(Communication No. 989), a copy of which is attached as Exhibit A to this Resolution, <br />including the supporting surveys, plans, estimates, maps, and other data contained therein, all of <br />which are incorporated herein by this reference; and <br />WHEREAS, the Manager's Report states, among other things, that the proposed <br />Improvement District will provide significant benefits to the health, safety, and welfare of the <br />residents of the Subdivision and that the estimated construction, acquisition, and installation <br />costs of the Improvement District (collectively, the "Project Costs ") are $1,569,369; and <br />WHEREAS, in connection with the proposed Improvement District, DWS initiated an <br />application to the United States Department of Agriculture (the "USDA ") for grant and loan <br />funding by the USDA Rural Utilities Service ( "RUS "); and <br />WHEREAS, pursuant to a Letter of Conditions dated July 28, 2010, as amended by <br />Addendum No. 1 dated November 16, 2010 (the "USDA Letter of Conditions "), from the <br />Hawaii State Office of USDA Rural Development, the USDA has indicated that DWS's <br />application for up to $353,369 of RUS grant funds and $1,169,000 of RUS loan funds for the <br />