Letter: Numbers problem (May 13, 2015)
The following has been pointed out previously on several occasions in public, but stands uncorrected and is not factual on the surface and in common sense: The Town of Apple Valley H2O website contains an
Appraisal Summary Statement stating the rate base numbers to total a rate base of $46,263,680. In fact, the six numbers total $58,437,735, which is a big difference of a $12,174,055 higher value. Additionally, cash working capital is stated to be $2,267,6805. (Most everyone knows that there should be only three digits to the right of a comma.) I have reviewed the seven-page Appraisal Summary Statement document which provides the exact basis for the above critical problem which has not been recognized by anyone and questioned of the expert appraiser.
Additionally, page five of the Appraiser’s Report Valuation Summary provides only one value of 50,595 in the spreadsheet column for year 2013 (and on page six he says this is for 2015). He gives a lot of other numbers out to year 2023. On page six he says this is Income Approach Enterprise Discounted Cash Flow value of $50,595,427.
In my opinion, the appraiser’s lengthy 69-page Proposal and Appraisal Deliverable of seven pages and the PowerPoint presentations are many pages of just general information. Only a very few sections provide any bottom-line details regarding the AVRW Valuation. It is no wonder that Mr. David Hayward of Hayward Consulting Group did not show or explain to the public what he did nor what his valuation conclusions are. He may do some writing, but simple analysis of his work does not compute.
Source: Al Rice, Apple Valley, Daily Press