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Mr. Arceri's observation that "the incorrect impression that government oversight is protecting Islanders from any subsidization" is indeed a factual statement. The statement is also relevant as to the perceived subsidization that homeowners provide for re-use water production. Re-use water is a product produced by a City owned utility and is primarily used by hotels, condos and time share facilities. The City also benefits from this product to keep much of it's property green. Homeowners pay primium potable water rates to maintain their lawns because the city cannot produce enough re-use water to accomodate homeowners. Users of re-use water should pay full production and delivery costs of re-use water. Certianly, customer class (homeowners) should be a concern here. Or how about all those new sewer customers? Newer customers see all the brand new investment in the treatment plants and replacement of old pipes and feel they are footing the costs for improvements and maintenance that benefit and serve older customers (including hotels, condos and time share units). Let's have a study to see if homeowner water and sewer rates are subsidizng re-use water or one to see if the new sewer customers are subsidizing the improvement and maintenance costs for all those old sewer customers. We need to ensure there is no unacceptable "class" (read homeowners), subsidization taking place in City owned utilities and the products they produce, before we waste money designing ways to document another takeover of major utility. The City should get it's own house in order and pay a consultant to do a study on these issues before we look at LCEC. Maybe such a study will result in a reduction in existing homeowner water and sewer rates. Yes, let's give our citizens some government oversight.
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