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Explanation of Transitions and Agreements

Now that the membership has approved the purchase of the assets of the Burton Water Company, financing, amended Articles of Incorporation and Bylaws by an overwhelming majority, we are beginning the process of assuming ownership of the Burton Water System and transitioning services and billing to the Cooperative.

Although we plan to continue to use the billing system currently used by Burton Water Company, we will be sending out new Cooperative Membership Agreements and Connection Agreements that are consistent with our Bylaws and Articles of Incorporation to all current Burton Water Company customers.

Membership/Water User Agreement: This agreement, when signed, constitutes membership in the Cooperative. Membership rights include voting, participation in meetings, election of Directors and amendments to Bylaws. Responsibilities include abiding by the Cooperative Bylaws, Rules and Regulations, paying fees and charges as directed by the Board. This differs from the Joining Agreement that you may have signed which was an interim step to participate in the development of the Cooperative.

Connection Agreement: This agreement establishes water service to the connection you have, sets up billing account information and includes the payment plan options for the one-time connection charge assessed for each metered connection to the water system. Members with multiple connections will receive a separate Connection Agreement and charge for each individual connection.

The payment plan options include:

  • Single lump sum payment of $2,500
  • $500 down payment plus $2500 paid in bi-monthly installments of $83.33 over 5 years ($3,000 total)
  • Special Payment Plan (Subject to financial need and Co-op Board approval. Board will establish payment terms with Member in a separate agreement)

Completion of both agreements is required to receive water service from the Cooperative.

The first step in the process is to be sure that the information we currently have for your account is accurate. You will receive an email from the Cooperative with the information we have about your account. Please review it and reply with either a ‘YES, this is correct’ or corrections to the information.

Once we have confirmed everyone’s account information, we will use DocuSign electronic signature service to email one Membership Agreement and Connection Agreement for each connection on your account to your primary email address, along with instructions for signing and returning the Agreements. Please look for an email from DocuSign to your primary email address within the next few weeks.


Final Vote Info

The Feasibility Board is pleased to report that 251 votes (79% of the Co-op’s eligible members) were received before the voting deadline of June 24th. 97% voted YES, and 3% voted NO. 9 more Yes votes came in after the voting deadline.

This surpassed our goal of greater than 160 members voting yes (a 50% majority of the total number of Co-op members) and also a yes vote from no less than two-thirds of all members actually voting.

Big thanks to the community for your participation in this process and the overwhelming support of the Co-op, and big thanks to the Voting Audit Committee for their work to confirm only eligible members voted, no one voted more than once, and reporting the final vote result. Appreciation to Ward Carson, Ginny Lohr, Nancy Murphy, James Culbertson, and Steve Hill.


BWC Committee Descriptions

The following committees were formed at the beginning of the exploratory process. Skilled and talented community volunteers stepped up to this key work to guide the development of the Cooperative over many months.

Membership and Communications

The ongoing Membership Committee developed outreach material to share information with the community and compiled a list of contact information for all potential cooperative members. Outreach materials have included this website, mailers, email newsletters, community meetings, and communications about the several voting opportunities, including the most recent ballot.

Finance

The Finance Committee assessed the financial feasibility of purchasing the assets from the Burton Water Company and then managing the water system as a community-owned cooperative entity. Elements considered for the purchase of the system assets included a professional valuation of the system including capital improvements, the water company's recent financial records, and availability of financing. Elements considered for the financial management of the system included the water rates structure, capital reserve needs, and extent of membership in the cooperative.

Governance

The charge of the Governance Committee was to research the best non-profit community ownership structure, draft a set of organizational documents (articles of incorporation and by-laws), and select an attorney to assist with these tasks as well as the legal needs of the other committees. Part of this work included panel interviews with four other community owned water systems on Vashon to learn from their experience.

Operations

The Operations Committee reviewed the physical and operational components of the Burton Water system. The physical components include the wells, storage reservoirs, treatment system, and distribution system. The operational components include the day-to-day labor and materials required to keep the system operating smoothly to supply high-quality drinking water to the system's customers. The Operations Committee coordinated the services of an engineering firm to provide a Capital Needs Assessment (CNA) of the system, to understand better the current physical condition of the system and what upgrades/replacements might be needed within the 5, 10, and 20 year timeframes. The results of the CNA were used to inform the valuation of the system and overall feasibility of purchasing the water system assets as a community.


A Feasibility Board of Directors has been formed for the Burton Water Cooperative.
  • We held our first Board Meeting on March 21, 2022.
  • You can view or download the adopted bylaws that will govern this newly formed 501c12 organization here.
  • Board meetings occur twice a month on Wednesdays from 3:30-5pm. The current schedule is: January 10 & 24, February 7 & 21, March 6 & 20.
  • Zoom link here.

Feasibility Period, Board of Directors

William Shadbolt, President - William is a real estate investor with residential property in Washington, manufactured home communities in the Midwest and self-storage in the Midwest and Texas. He serves on numerous boards of both for-profit and nonprofit corporations. He is also a licensed water operator in another state.

Ben Lee, Vice President - Ben is a water resources engineer who specializes in hydrogeology, well design and maintenance, and water rights. He consults for large municipalities and small water systems, irrigators, and industrial clients including the Burton Water Company.

Chuck Weinstock, Treasurer - Chuck (retired) led a community based non-profit developer and manager of affordable housing for 20 years and worked for JPMorgan Chase Bank as a community development banker for 10 years. He has founded and served on numerous not for profit boards.

Norm Seethoff, Secretary - Norm (retired) is an electrical engineer who specialized in IT infrastructure. He led team deployments of IT infrastructure in North America, Europe, India, and China for a Fortune 200 company.

Steve Hill - Trained as an electrical engineer, Steve was the president/owner of a telecommunications company for 26 years until he sold it and retired. The company designed and manufactured secure telephones for the US government and provided cloud-based communication services for private businesses. He spent summers at his parent's house on the Burton Peninsula from when he was two years old and now owns the house next door.

James Culbertson - James is a video production professional with 30 years’ experience working on documentary, performance, education, non-profit, and corporate videos. He is a former board member with Voice of Vashon and 911 Media Arts Center in Seattle.

Merrilee Runyan - Merrilee is a retired educator and lavender farmer who has served on a variety of non-profit boards over the years, most recently the Vashon Island Growers Association (VIGA). She is the founder of VIGA's Food Access Partnership and Sustainable Vashon, and is a community activist around food justice issues. She has lived on Vashon Island for 32 years, the last 10 years in Burton.


Joining the Cooperative

To receive service from the Burton Water Cooperative when it becomes the owner, one will need to be a member. This is the equivalent of a “service agreement” with a private operator and exactly the same arrangement as all the other community owned and operated systems on Vashon (Westside, Heights, Dockton, Maury Mutual). Membership can be achieved in one of two ways: (1) signing a Joining Agreement or (2) accepting service. In either case there is a $5 administrative charge associated with becoming a member. Being a Coop member has certain privileges (voting, serving on committees or Board, approval of any by-law change), but there is no obligation to do anything other than join. After joining or accepting service, there will be connection and usage charges that will apply to all who have service.

Projected Costs for Water Under Cooperative Ownership

Based on the Financing Option Preference Poll, the Board is proceeding with "Option 1: Higher USDA Loan/Lower Up-Front Connection Charge" (preferred by 82% of the respondents). This option has the following features (as of 8/11/2023) based on our current, best information and subject to change based on USDA underwriting):

Connection Charge: This is a one time charge and may be paid in a lump sum up-front or in bi-monthly installments over a 5 year period.

  • $2,500 per connection.
Base Rate: (flat rate charged to all connections)
  • 3/4" meter $59.00 (every two months)
  • 1" meter $98.53 (every two months)
Usage Rate: (charged based on cubic feet of water actually used)
  • 0-3,000 CF same as current rates
  • above 3,000 CF slightly higher than current rates
Capital Surcharge: (charge dedicated to financing capital improvements through the USDA loan and from cash flow over time)
  • $60.00 (every two months)
King County Right of Way Fee: (Proceeds from fee must either be paid to King County or invested by the Coop in capital improvements specifically to improve fire flow. We are choosing the latter.)
  • $10.00

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