We're committed to pricing that continues our history of maintaining low rates. More than any entity on the island, CFL has been able to maintain it's costs at a low level.
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​​Since 2005 CFL rates have increased by only 25% in 7 years.
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Analysis indicates we can manage our costs and increase offset revenue to maintain current rates through 2018.
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PUC validity - low overhead and cost controls - no guessing at what it takes (ask Rich for clarification)
Low Costs Allow for Low Rates
Our ability to start today could mean as much as $1.5M over a period of ? years to SCICO and/or the island community, as well as implementing many new services now, rather than 3-5 years from now.
Revenue sharing (or freight rate credit) to SCICO and/or community
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(profit or gross or?) 10% of all freight revenue over $5M (translates into $250K in income or freight rate offset over past 3 years)
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Would include all island and non-island revenues generated from Wilmington facility
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Creates true partnership with SCICO and the community to share our success
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Pebbly Beach Building Supply
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End lease on that portion of the land early
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(RC -you don't want it?) SCICO controls building supply and storage unit income
Other
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Reporting?
Financial Opportunities to Partner with SCICO
By comparison:
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Water Rates - Increased over 300% from 2007 to 2012, and are up another 80% in 2013
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Salt Water Rates / Sewer Rates - Expected Increase of 14% and 10%, respectively, from 2009 (unclear needs edit)
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Passenger Boats - Full-fare primary passenger carrier rates have increased by 115% since 2005 (Dana Point round trip has increased from $35 to $74.50 in that time). Discounted commuter books have increased by ??%.
How do we do it? Excellent financial management. Advance planning strategies. Offset revenue resources. And we can continue to do it, especially since we'll have zero "start up" risks and costs.
Prepared for the Santa Catalina Island Company Executive Committee and Board
Presented by Richard Coffey, President and CEO - September 19th, 2013
