Residents in Burton have an opportunity to seize upon: the chance to own the Burton Water Company (BWC) through the potential formation of a cooperative.
The current owners of BWC, Jim Garrison and Evan Simmons, want to sell the business by spring 2022, and wanted to give customers the first opportunity to purchase the water company.
BWC services 415 connections currently, and is one of five water companies that services Vashon and Maury Island.
Previously, BWC had been approached by both Portland-based NW Natural Water and Washington Water Service, a subsidiary the California Water Service Group, to purchase the company. However, Garrison and Simmons did not sell to either company.
In exploring the formation of a cooperative further, BWC contacted Olympia-based Northwest Cooperative Development Center (NWCDC). Through the Rural Cooperative Development Grant funded by the United States Department of Agriculture, NWCDC is able to fund the organization of the Burton Water co-op.
Fred Medlicott, a Cooperative Development Specialist with NWCDC, spoke with interested Burton Water customers on Oct. 28.
Medlicott stated that customers taking control of the company and forming a cooperative could reap benefits, such as controlling infrastructure, being able to vote on budgets and major improvements, and being able to control rates.
“If the co-op or the mutual is able to achieve 90% consumer ownership, then you can actually directly set your rates,” said Medlicott.
Medlicott added that cooperatives are valuable, as larger third party utility companies may not have customer’s best interests in mind and are looking to maximize their profits. It is estimated that the market price range for BWC is between $1-$1.5 million dollars, said Medlicott.
While in the very beginning stages of exploring the idea further, the next steps in the process are to form an exploratory committee and do further research. There will then be a feasibility analysis presented to the community, which Medlicott said he would like to have completed by Christmas.
According to Medlicott, the feasibility analysis will answer the question of ‘what would have to happen for the cooperative to be successful?’ Medlicott also stated that the study’s results would not be a strict “yes” or “no” to the answer of forming a cooperative, but instead show evidence of what conditions a cooperative would be successful under and why.
Burton Water customers interested in the process and wanting to assist were encouraged to contact Medlicott at fred@nwcdc.coop. There will be a second meeting held from 2 to 4 p.m. Sunday, Nov. 14 over Google Meet.
