HomeMy WebLinkAbout10202008 Mayor Marquardt ReplyKiiguusi Suuluta Land Company, LLC
c/o Edward C. Fisch, Esq.
116 Delmar St.
San Francisco, CA 94117
415-515-9226
October 20, 2008
Honorable Mayor Shirley Marquardt
City of Unalaska
P.O. Box 610
Unalaska, AK 99685
Mayor Marquardt:
I respond to your letter of October 15"' in my capacity as a Member -Manager in KSLC. I shall
attempt to answer your questions and clarify or set correct those inaccuracies or
misunderstandings set forth in your letter as to events related to and/or actions undertaken by
KSLC:
1. Mr. Paul Fuhs possess written authorization to discuss and negotiate any aspect of
KSLC's position regarding the development and/or utilization of fee land, subsurface
rights, energy or fuels owned, controlled or produced by KSLC. Mr. Fuhs' authority
is subject only to ratification of KSLC's membership. I am surprised you would
question Mr. Fuhs' representations as to this fact.
2. KSLC did inform "the City" of its intent to seek funds for a detailed study of the
project. Prior to the October 8, 2008 application deadline for Alaska's Renewable
Energy Grant Fund Program, I made direct contact, in person, with a member of the
Unalaska City council, a City employee and a City authorized consultant in my
personal effort to inform the City of KSLC's intentions and sincere desire that the
City join KSLC in this Grant Application. Second, Mr. Fuhs, on behalf of KSLC,
traveled to Unalaska, also before the October 8 h deadline, and met with
representatives and officials of the City, to this end. Mr. Fuhs so reported to you in
his letter dated October lfh. During this same period in Unalaska Mr. Fuhs made a
presentation before the Board of Directors of the Ounalashka Corporation requesting
and obtaining OC's support for KSLC's application.
3. We believe that our application for the Renewable Grant Funds was both timely,
prudent and a failure of KSLC to apply would have otherwise been justly tabled as a
"lost opportunity" for all potential stakeholders. Further, KSLC's requests should
provide the City with new or additional geotechnical and geophysical information to
more prudently utilize the City's current State matching grant funds in defining the
City's potential geothermal drilling test sites. Furthermore, KSLC's application is
intended, in part, to help define many logistical and financial issues of the Makushin
geothermal project, which must be reviewed or updated. Waiting until after the
results of the City's proposed drilling project become known will do nothing but
10202008 Mayor Marquardt
again delay the Makushin energy project. It is inconceivable that the City would not
choose to join with us now in support of the Grant Application_
4. Your understanding of the Grant Application language dealing with "alternative
ownership structure" leaps to a conclusion never intended by the KSLC. We do
believe that it is unwise to now conclude just who will comprise the "development
team". In fact, I recall Mr. Hladick making exactly that point at one of our meetings.
Further, various financial structures, all of which could lead to the City's control or
ownership, must be examined in order secure the best matrix and to achieve the
greatest public benefit for the least cost. In short, KSLC continues to be, supportive of
the City's desire for an ownership role in the project, so long as the City is prepared
to act as expeditiously as prudence dictates.
5 It serves no one's purpose, especially the citizens of Unalaska, to threaten that — "we
will discontinue any further efforts on our part". We believe the best course of
action is to work together to secure the best information possible to determine the
elements of this project and to make this information available to the public. The
citizens and businesses of Unalaska will be the beneficiaries of this cooperative
approach.
6 The grant application lays out a blueprint for oversight wherein a committee is
proposed that would guide the work of the contractors. We invite the City to appoint a
representative to serve on this committee. We have also asked the State and
Ounalashka Corporation to serve in this capacity_
KSLC seeks the City as a "partner" in this grant process and not as an "adversary". We hope
the City will view this in the same light. Mr. Fuhs' request still stands, in that KSLC requests
that a discussion of the Makushin Geothermal Renewable Funding Grant be placed as an Agenda
Item during the regularly scheduled October 28, 2008 meeting of the Unalaska City Council, in
an open public session. We are hopeful the City Council will authorize a letter of support to be
written and authorize you, as Mayor, to appoint a representative on the oversight committee, in
the event that we are successful in obtaining grant funds.
;Smcerly,
ood
The Wood Family Trust,
Member -Manager KSLC, LLC
jackwood@gv.net
cc: Members of the City Council
Mr. Chris Hladick, City Manager
10202009 Mayor Marquardt 2