I’m voting NO because the Board failed to seek independent valuation or competitive offers—violating basic business ethics and best practices. (And my NO vote could be changed if a better process and better contract is adopted by the Board in the future!)
The Board’s decision to move forward with the sale of our water system to Central States Water Resources (CSWR) lacks the most basic due diligence.
As confirmed at the October 25 town hall meeting by CSWR representatives, no independent appraisal was conducted by the Board of Directors. Only CSWR representatives made an internal evaluation.
Would you sell your house based only on the buyer’s appraisal of your home’s value?
It’s a violation of fundamental business ethics.
“We do have private investors or private equity money… they do have certain requirements that have to stay in the agreement that we don’t have a lot of flexibility on.”
— Sean Nichols, CSWR VP, Transcript at 00:32:25
“We’ll send you a draft. We have a standard purchase agreement. Probably 80% of the parties just sign it without any changes.”
— Sean Nichols, Transcript at 00:32:25
This confirms that the Board accepted CSWR’s terms without seeking competing offers or independent valuation. That’s unacceptable.
Just because 80 percent of other parties jump off a bridge does not mean that Windermere needs to do so also.
What Ethical Business Practice Requires
Don’t take my word for this horrible development in Windermere.
According to the Uniform Standards of Professional Appraisal Practice (USPAP), ethical valuation requires:
- Objectivity and impartiality: Sellers must not rely solely on the buyer’s valuation ValuAdder.
- Avoiding conflicts of interest: A buyer’s appraisal is inherently biased toward their interests oneappraisalgroup.com.
- Transparency and accountability: Sellers should disclose how valuations were obtained and ensure they are independently verified oneappraisalgroup.com.
Best Practices in Business Sales
Any competent seller—whether in real estate, utilities, or corporate assets—should:
- Obtain an independent appraisal to determine fair market value oneappraisalgroup.com ValuAdder.
- Solicit multiple offers to ensure the best deal for stakeholders.
- Disclose alternatives to members before asking for a vote.
In our case, two other water companies already operate nearby and could express interest if invited to the bidding table:
- Corix Utilities, which serves Ridge Harbor and already has an emergency interconnect with WOWSC.
- Aqua Texas, which operates in Barton Creek Lakeside.
These companies could benefit us by better economies of scale, lower rates, or more favorable terms. Both companies are looking to expand in this region and would probably like to add to their systems.
But the Board didn’t even ask them. Or if they did, they have not disclosed that to Members.
This Vote Deserves Better
We, the members, deserve a transparent process that compares multiple offers and includes an independent valuation. Until that happens, I’m voting NO.