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Thursday, August 21, 2008

Yet Another Email Gem ...

So let's see if we get this one straight: whomever this arceri person is - who seems to be directing most (6) of the City councilors and all of the City staff - is suggesting that LCEC force Marco Island residents to pay a special assessment to offset the increase rates to non-Marco Island residents ("remaining LCEC customers") because of the City of Marco Island's purchase/obtaining their own utility from LCEC?

That is exactly what Marco Island residents need: another special assessment to pay for the folly of a few.

Oh, and for a good laugh read "... and they have to feel were [sic] serious". And who exactly is going to take this bunch serious?

----- Original Message -----
Sent: Thursday, June 12, 2008 11:32 AM
Subject: Re: Electric Municipalization

Thanks John, the LCEC thing is just to hot at this time. I know you understand.
I’m leaving for work after the Council Meeting Monday night, but Ill be home the week of the 30th, Lets do lunch.

On 6/12/08 10:41 AM, "arcmi@comcast.net" <arcmi@comcast.net>= wrote:

Hi Ted,

My time to buy lunch when you are free. Let me know what fits. Just wanted to make a short comment about your comments quoted int he papers on the municipalization of the electric system. Although, I couldn't care less how this comes out, I do feel it important that the City be dilligent in getting the facts through a combined citizens committee/expert review. I was glad to see you feel the same way. I also wanted to explain a strategy that is possible and that was used with Florida Water Services in 1999 that could be utilized with LCEC. In 1998 the City considered taking over the water company by condemnation (FWS did not want to sell). The rationale was to gain control and keep water rates stable for a number of years. With Marco Island being FWS's largest, and most profitable, customer it became clear to us that it was possible that FWS could possibly provide all we were asking for as part of a special agreement without us having to go through the condemnati on route. Council formed a negotiating team which did develop such an agreement but FWS decided to sell their system before the agreement was signed. The same kind of strategy could be worked out if the committee/consultant study finds significant economic advantages to ownership by the City.

For example. let' say thet the City study finds that we could realize significant savings (ie. $8 million per year). It is pretty clear that the loss of Marco Island from the LCEC service territory would result in probable rate increases to the remaining LCEC customers. As such, would LCEC agree to a special arrangement with the City to provide some of these savings every year (ie. $5 million) if we don't proceed with takeover? After all, LCEC could explain to their other customers that such an arrangement with Marco is better for all. It is possible (although not probable) that LCEC would consider this alternative and we could gain most of the advantages of takeover without having to take over. Ted, although this possibility is listed in the Staff report, the key to the FWS negotiations was the continued pressure from the city that takeover would be a considered option. They had to feel that we we're serious in taking this action if the reviews found it worthwhile. Just some thoughts.

See you soon.

John Arceri


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