HomeMy WebLinkAboutLtr. to Jack Wood 10-15-08CITY OF UNALASKA
P.O. BOX 610
UNALASKA, ALASKA 99685-0610
(907) 581-1251 FAX (907) 581-1417
October 15, 2008
Mr. Jack Wood
21859 Angeli Place
Grass Valley, CA 95949
Dear Mr. Wood:
`e.
Recently, the City received a letter from Mr. Paul Fuhs discussing the Makushin Project (attached). To
date, we have not received any confirmation from KSLC that Mr. Fuhs represents KSLC or if there are any
limitations on what can be discussed with him. Consequently, this letter is addressed to you instead of Mr.
Fuhs.
The letter states that KSLC has submitted a grant application to the Alaska Energy Authority. We have
since obtained a copy of the grant application from a third party and find that without even a prior courtesy
call to the City, KSLC has requested funds to perform studies that are best performed after drilling in the
lower valley is completed. The application references several studies of the City system, and we find your
actions of preparing and submitting this application without first discussing it with the City to be highly
questionable at best.
The grant application states that alternative ownership structures will be analyzed. Mr. Wood, as you
know, the City has spent significant amounts on technical and legal services regarding Makushin. If it is
now your intent to pursue project development with a developer other than the City as owner, please
immediately notify the City, and we will discontinue any further efforts on our part. If you still desire to
pursue Project development with the City being the owner, we anticipate being ready to meet with KSLC
the first week of December to develop a royalty agreement.
Please advise.
Sincerely,
Mayor Shir ey Marquardt
and the Unalaska City Coyxcil
1-� A
r eck atherine McGlashan
Johnson Earl " Sklpp "5outhworth
David Gregory