HomeMy WebLinkAbout2013-229 Letter MAA - Restoration Amount
CITY OF
ASHLAND
Dave Kanner
City Administrator
July 25, 2013
Mr. Kim Clark
Mount Ashland Association
P.O. Box 220
Ashland, OR 97520
Dear Kim:
As you know, Section XII(E) of the Ski Area Special Use Permit granted to the Mount Ashland
Association (MAA) by the U.S. Forest Service requires that MAA maintain a "restoration amount" in
the form of a surety bond or other acceptable security to ensure the availability of funds to cover the cost
of the removal of improvements at the Mount Ashland Ski Area in the unlikely event of ski area closure.
The Special Use Permit stipulates that the amount of this bond or surety shall be $320,000.
Section 4(d) of the Agreement between the Mount Ashland Association and the City of Ashland, dated
October 25, 2011, stipulates that MAA shall, on July 15 of each year, increase the funds it maintains in
this restoration amount by a percentage equal to the percentage increase of the U.S. Department of
Labor Consumer Price Index, All Urban Consumers (CPI-U) in the previous 12 months.
a,.
As of July 15, 2012, CPI-U for the previous 12 months was 1.7%. Therefore, the restoration amount
required of MAA under the Agreement with the City of Ashland became $325,440 on that date. As of
July 15, 2013, CPI-U for the previous 12 months was 1.8%. Therefore, the restoration amount required
of MAA under the Agreement with the City of Ashland became $331,297.92 on that date.
Your signature below acknowledges that the restoration amount currently required by the Agreement
between MAA and the City of Ashland is $331,297.92 and that MAA currently has that amount on hand
in the form of unencumbered funds or assets.
C Sinc\erely,
Dave Kanner, city a ministrator
Aj-6
lm Clark, general manager, MAA Date
20 E. Main St.
Ashland, Or 97520
,
Tel: 541-552-2103
2103
dave.kanner@ashland.or.us
www.ashland.or.us