Powder Mountain public water district votes to put operations out for bid; resort has expressed interest in contract
BRIAN NICHOLSON, Special to the Standard-Examiner
In this undated photo, construction can be seen in the Summit area of Powder Mountain ski resort.During a Zoom meeting on Friday afternoon, the board of a small public water district in Weber County voted unanimously to put the management of its entire operation out for bid.
Approximately twenty-four people logged into the April 3 meeting of the Powder Mountain Water and Sewer Improvement District (PMWSID), 15 of whom appeared to be members of the public. The meeting had been moved up more than two weeks from its originally scheduled date with roughly 24 hours’ notice. Two members of the public were permitted to speak, each raising questions that Board Chairman Andrew Stark responded to at length.
The vote authorized the posting of a Request for Proposals (RFP) for a private contractor to take over day-to-day operations for a district that serves approximately 800 accounts on and around Powder Mountain. The RFP will be posted Monday or Tuesday and carry a three-week response period. A subcommittee will review the bids and make recommendations to the full board.
Before calling for the vote, Stark delivered an opening statement. “The district is not going to be privatized,” he said. “Let me repeat that. There is no privatization of the Powder Mountain Water Sewer Improvement District.” He stated that the board was not delegating its decision-making authority and that all policy decisions would remain with the board.
He also stated that water and sewer rates have increased between 350 and 360 percent over the past decade, a figure he characterized as approximately 16 percent compounded annually.
The Proposal
According to documents posted as public information handouts on the Utah Public Notice website alongside the district’s Feb. 10, 2026 board meeting, the scope of the proposed arrangement encompasses water systems management, financial recordkeeping, billing and collections, new service applications, board meeting coordination, records custodianship, and website administration.
The operational outline states that Powder Mountain “has expressed interest in serving as the Contractor.”
A legal memorandum dated Feb. 6, 2026, written by attorney Ari Bruening of Parr Brown Gee & Loveless and addressed to the Board of Trustees, outlines the legal risks. Bruening wrote that, while an arrangement with Powder Mountain as contractor “would likely generate significant efficiencies,” there is a risk that the resort, as the district’s largest customer, “could from time to time act in its own interests to the detriment of other customers.”
The April 3 meeting agenda listed two action items: approval of a Request for Proposals for “Operations, Maintenance, Capital Facilities Plan and Administration Services,” and approval of a “Contract of Services.” The posted agenda used the term RFQ, a Request for Qualifications, which evaluates who is qualified to perform the work. Stark, in email responses to the Standard-Examiner on April 2 and throughout the April 3 meeting, used the term RFP, Request for Proposals, which solicits specific bids with pricing and scope. An RFQ evaluates qualifications and can be used to narrow the field before competitive pricing occurs; an RFP solicits pricing and scope from the outset.
Stark said in an email that no contractor had been selected. He described the outsourcing proposal in general terms, saying the board is looking for “a contractor who can provide significantly increased efficiency.” Stark did not mention Powder Mountain by name.
Stark confirmed that no independent cost-benefit analysis has been conducted comparing continued in-house operations against outsourced operations. He said the proposals submitted through the solicitation process would themselves serve as the basis for that analysis. He reiterated this position on the April 3 Zoom, telling the public that a cost-benefit assessment would come after bids were received.
During the meeting, Stark also described a revenue-sharing payment structure for the eventual contractor: rather than a flat fee, the contractor would only receive payment from net revenue remaining after all district obligations (debt service, bond obligations, repairs, maintenance, and capital improvements) are satisfied. “The contractor will not be receiving any dollars unless they are able to see a net from the collections of what we get into the district,” Stark said.
Trustee Will Donovan noted that the use of outside contractors is not new to the district. Trustee James Harvey revealed a piece of institutional history that had not previously been part of the public discussion: the district was operated by an independent agency until 2018, when General Manager Roy Watts came on. “The board still was in place like it is today, but an independent agency operated the district,” Harvey said. The prior outsourcing arrangement, and the circumstances of its termination, were not elaborated upon.
Members of the Public Spoke
The board allotted time for public comment with a three-minute limit per speaker. Unlike the March 24 meeting, where Zoom participants who attempted to speak were muted, the April 3 meeting allowed public participation. Two people spoke.
Jamie Lythgoe, a fourth-generation Powder Mountain local and granddaughter of the ski area’s founder, asked whether the board had received feedback from other districts that had transitioned from in-house staff to an outside contractor. Stark said the board had been in contact with the state auditor’s office, which indicated the arrangement was uncommon but not unprecedented. Lythgoe also asked how systematic maintenance of aging infrastructure would be handled under a contractor. Stark explained that the contractor would be charged with inventorying all systems, reviewing them with the board, and developing an improvement and maintenance plan.
Michael Moyal, a developer and former board member who holds property on the mountain, raised additional questions. Moyal said he had only learned of the outsourcing plan two weeks earlier, by chance, from a fellow skier on a chairlift. He noted that, as an HOA president on the mountain, he had never been notified. He questioned why the board had spent time, energy, and legal fees developing the plan without informing ratepayers.
“Transparency would be the number one thing,” Moyal said.
Stark defended the board’s authority to investigate alternatives without prior public notification, noting that the process had been published on the district’s website. He then contrasted the current board’s record with what he characterized as failures of previous boards, including the one on which Moyal had served.
When Moyal raised the conflict of interest that the district’s own attorney had identified, Stark acknowledged that multiple board members own property in Powder Haven, the resort’s luxury residential development.
“There is nothing I can say greater about the board and the members here of having the best interests of all ratepayers and homeowners,” Stark said. He argued that the board had unified the district, treating all neighborhoods as equals rather than favoring one area over another.
The trustees attempted to cut Moyal’s comments short on time grounds. Stark told Moyal that the posting of the RFP would proceed regardless of his concerns but that the board would meet with him before making a final determination.
Bruening, the district’s attorney, also addressed the conflict-of-interest question. He confirmed that his recommendations for mitigating a potential conflict, should the contractor be Powder Mountain, had been incorporated into the RFP and the attached contract. He did not detail what those safeguards were.
The board voted on both the RFP and the contract of services in a single motion. The motion passed unanimously.
The Sewer Land Deal
During the exchange with Moyal, Stark disclosed details of a land transaction that had not been previously discussed in public. Moyal asked whether Powder Mountain had acquired the district’s sewer ponds. Stark explained that the resort had purchased approximately 2,100 acres, and that the district had negotiated, as part of the sale, to receive land for its sewer lagoons.
Stark said the district had been at risk of eviction from the lagoon lands due to unresolved issues from prior boards. He described a negotiation in which the district secured two things: ownership of the land where the current ponds sit, and a long-term agreement for additional land needed for a future lagoon and for land application of treated wastewater.
Stark acknowledged the deal may not have been optimal. “I can’t say it was the most reasonable of acquisitions that was made,” he said, “but the mountain did step up on that piece, knowing that they had to accommodate us on the other pieces.”
He characterized the arrangement as having secured “sewer security” for the district, an outcome he said no prior board had achieved. The district’s ability to handle its own wastewater now depends on land it obtained through a deal with its largest customer, the same entity that has expressed interest in becoming its operational contractor.
Outreach Before the Agenda
Before the outsourcing proposal reached the public agenda, two board members held a private forum to discuss it with residents of one Powder Mountain neighborhood.
In a Feb. 23, 2026 email forwarded to the Standard-Examiner, Board Trustee Will Donovan invited Powder Mountain West residents to Board Chairman Andrew Stark’s home for an afternoon discussion. “Andrew will be hosting Powder Mountain West residents at his house on Sunday the 1st of March at 4pm, post skiing, so that he and I can share our thinking about a contracting strategy the Board is considering for the district,” Donovan wrote.
The email described the proposal in favorable terms, stating that the intent was to “level off or even reduce monthly customer bills while retaining or exceeding current service levels.” Donovan emphasized that “this is not a privatization of the district.”
The gathering was limited to Powder Mountain West. Property owners from other neighborhoods on the mountain told the Standard-Examiner they were not invited and only learned of the meeting after the fact. Moyal reiterated this at the April 3 meeting, telling Stark directly: “You have my number. If you really wanted to reach out to me, you could have.”
Utah’s Open and Public Meetings Act generally requires that when members of a public body convene to discuss public business, the meeting must be properly noticed and open to the public. Two of five board members do not constitute a quorum under the Act.
The email also promised a Zoom call at a later date for those who could not attend in person. Multiple residents told the Standard-Examiner no such call has occurred.
A New Board
The district’s five-member Board of Trustees was entirely reconstituted between January 2025 and January 2026 through appointments by the Weber County Commission, according to county commission resolutions and Utah Public Notice records.
On Jan. 14, 2025, the Weber County Commission appointed James Harvey, Robert W. Bingham, and Francis Xavier Helgesen to the board. By the end of 2025, Bingham had departed. On Jan. 13, 2026, the commission seated three new members: Andrew Stark, Will Donovan, and Michael Mayra. Stark was elected chairman during that same meeting.
Stark carries a New York-area phone number. Helgesen, the treasurer, carries an Indiana-area number. Donovan carries a Dallas, Texas number. Mayra carries an Alaska number. Harvey, who also serves as a sitting Weber County Commissioner, is the sole member with a local contact number.
According to the business publication Axial, Helgesen met his Enduring Ventures co-founder at a Summit Series ski weekend.
Donovan lives in Powder Mountain West, where he chairs the homeowners association. He is the same board member who organized the private neighborhood meeting at Stark’s home in February.
Harvey’s dual role as a county commissioner who participates in appointing PMWSID board members and as a member of the board itself is permitted under district policy. A 2017 PMWSID vacancy notice, available on the Utah Public Notice website, explicitly states that a board member may be a member of the Weber County Commission. County commission resolutions from December 2025 and January 2026 show Harvey present and voting on the appointments of his fellow PMWSID trustees.
Jamie Lythgoe, a fourth-generation Powder Mountain local and granddaughter of Dr. Alvin Cobabe, who founded the Powder Mountain ski area in 1972, said the board turnover concerns her.
Lythgoe has lived on or around the mountain for more than fifty years. Her father served as general manager of the resort. She managed properties in the area for decades and worked for the water district in the 1990s. She is a former Ogden Valley planning commissioner.
She said she does not know three of the five current board members (Stark, Helgesen, and Mayra). For a rural water and sewer district where institutional knowledge and local relationships are critical, she said, that level of unfamiliarity is unprecedented.
Asked whether any current board members have a financial, employment, or business relationship with Powder Mountain, Summit Mountain Holding Group, Reed Hastings, or any affiliated entity, Stark wrote: “We are not aware of any… relationships between any current board members and Powder Mountain, Summit Mountain Holding Group, Reed Hastings, or any affiliated entity.”
At the April 3 meeting, however, Stark acknowledged that multiple board members own real estate in Powder Haven, the luxury development being built by the resort. When Moyal suggested the board’s geographic concentration in Powder Haven created a conflict of interest, Stark responded by emphasizing that other board members live in Powder Mountain West and that the current board has treated the district as unified rather than divided between old and new neighborhoods.
A District Without Its Own Water
To understand the outsourcing proposal in context, it helps to understand what happened to the district’s water.
For roughly forty years, the PMWSID relied on Pizzel Spring as its primary drinking water source. The state historically assumed the spring produced 70 gallons per minute. But in December 2014, two days before Christmas, the mountain ran out of water. The district was forced to haul drinking water up the canyon in tanker trucks.
Subsequent measurements by the Utah Division of Drinking Water recorded the spring at just 25 gallons per minute. DDW Director Ken Bousfield wrote in January 2015 that the system was providing only about 30 percent of required source capacity.
By June 2016, DDW ordered Pizzel Spring completely offline due to severe risk of surface water contamination and the detection of E. coli. The adjacent Cobabe Well was also contaminated and rendered unusable.
Both of the district’s own water sources were gone. The district was forced into total reliance on the Hidden Lake Well, which sits near the top of the mountain. That well has a safe yield of 120 gallons per minute and a water right of 100 acre-feet per year. It is privately owned by the developer. Even with it online, the system was operating at only 75.6 percent of state-required source capacity, according to a July 2016 letter from Bousfield.
As a result, the district cannot serve new customers without drawing from the privately owned well. Without a will-serve letter from the district, it is possible that new building permits will not be approved.
The Water Fight Downhill
In 2014, the previous owner, Summit Mountain Holding, filed an exchange application with the Utah Division of Water Rights seeking 400 acre-feet. Nearly two dozen entities protested, including Ogden City Public Utilities, PacifiCorp, and Cache County Corporation.
Powder Mountain sits above the Ogden Valley, above Pineview Reservoir and the communities of Eden, Huntsville, Liberty, and Wolf Creek. Water flows downhill; if the mountain diverts it first, downstream users receive less.
Five downstream entities (Wolf Creek Irrigation Company, Wolf Creek Water & Sewer Improvement District, Middle Fork Irrigation Company, Eden Water Works, and Gay Browning’s Bar B Ranch) collectively spent approximately $450,000 in legal and engineering fees fighting the application. The result was the 2016 Mitigation Agreement: Summit was required to purchase 15 Wolf Creek Irrigation shares, build a 20-acre-foot reservoir, limit pumping to 200 acre-feet, and relinquish the Geertsen Spring diversion point.
In November 2023, two months after Hastings’ $100 million investment was announced, the PMWSID filed a new exchange application: No. 35-14408, designated E6560. This application seeks to consolidate over 600 acre-feet of water alongside the Summit/Hastings entity. It proposes five new mountaintop wells and, for the first time at Powder Mountain, snowmaking. The application proposes reducing the Wolf Creek mitigation flows negotiated in 2016.
A hearing was held at the North Ogden City Offices on Feb. 22, 2024. According to Utah Division of Water Rights records, the State Engineer has taken no action. The application remains in “Unapproved” status more than two years later. Three of the original protestants (Bar B Ranch, Middle Fork Irrigation, and the Whitehead Trusts) have withdrawn their protests. No public explanation for the withdrawals has been provided.
Powder Haven
Dr. Alvin Cobabe opened Powder Mountain on Feb. 19, 1972, with a single lift called Sundown. The Cobabe family operated the resort for more than three decades before selling in 2006 to Western American Holdings, which had ambitions for thousands of homes. That entity overextended and was succeeded by the Summit Series, which purchased the mountain for approximately $40 million in 2013. Weber County backed an infrastructure bond estimated between $17.6 million and $18.5 million.
According to Fortune magazine, by April 2023, roughly 90 percent of the Summit group’s planned 500 homes had not been built.
In April 2023, Reed Hastings, the co-founder of Netflix, acquired a minority stake. By September 2023, he had invested $100 million for a majority position. In October 2023, Powder Mountain announced a 10-year development partnership with Meriwether Companies, a firm that builds private clubs and high-end residential communities.
The development is called Powder Haven. According to the project’s website, it is designed as a private residential community for up to 650 families, with lot prices starting above $2 million. Public ski lifts have been converted to private homeowner access. A new lift, Raintree, was built exclusively for Powder Haven residents. The expansion includes plans to develop 2,390 acres in the Davenport area.
In February 2025, the Cache County Council voted 4-3 to rezone 1,621 acres from Forest Recreation to Resort Recreation on the Cache County side of the mountain, joining 3,580 acres already designated for resort use.
The development requires water, and the district is the water provider for the mountain.
The Manhattan Lawsuit
During the Summit Series ownership era, the parent company signed a $120 million loan agreement in 2016 with a group of foreign investors under the federal EB-5 Immigrant Investor Program, which grants green cards to foreign nationals in exchange for capital investment in job-creating American enterprises. Only $42 million of the $120 million was actually disbursed. Loan payments ceased in January 2019.
In April 2025, the investor group filed a $75.9 million lawsuit in Manhattan Supreme Court against Summit Mountain Holding Group and Reed Hastings personally, arguing that Hastings inherited the debt obligations when he acquired his controlling stake. Summit has countersued in Utah court, accusing the investors of defaulting on their commitment to raise the full amount.
The EB-5 program has a troubled history in ski resort development nationally, most notably resulting in fraud convictions and a federal receivership at Jay Peak in Vermont.
The Staff Who Know the System
If the outsourcing plan is approved, the district’s existing employees would face an uncertain future. The operational outline describes a transition period during which current staff would remain district employees while working under the contractor’s direction. The contractor could then offer to hire them. Staff who do not accept would either remain in an available district position or, according to the document, “be separated from PMWSID employment.”
Stark wrote that a contractor would be “free to hire current employees, which [the board] will encourage.”
Lythgoe said the district’s current staff represents a handful of people, five or six employees, whose institutional knowledge she described as irreplaceable.
“I have concerns about getting rid of the people who currently know how to operate the Powder Mountain water and sewer system to take a bid from a contractor with no prior experience operating the system, due to its complex nature,” Lythgoe said. “The money saved by laying off those employees will end up being spent later mitigating issues the current staff already have the knowledge to prevent.”
The mountain’s infrastructure includes pressurized sewer lines operating in alpine conditions where winter temperatures routinely freeze equipment and mechanical pump stations serving homes built in topographical bowls where gravity does not assist drainage. Lythgoe, who lived with a sewer lift station in her front yard for 18 years, said she knew exactly who to call in the middle of the night when warning lights went off and what steps to take to prevent catastrophic backups.
“It is complicated with weird idiosyncrasies,” she said. “Someone new won’t troubleshoot the same way as a veteran.”
At the April 3 meeting, Stark addressed infrastructure concerns directly. He acknowledged the district’s infrastructure is aging, with some pieces abandoned in place, and said a full documentation effort is needed. “This is a relatively newly constituted board over the past couple of years,” he said. “There’s a lot that we need to document on the systems inventory.”
Lythgoe said she doubts the solicitation process will attract competing bidders, given the system’s complexity and the liability involved.
“I don’t imagine that even if there is an RFP that anyone else is crazy enough to want to take that on,” she said. “The resort has enough motivation that I expect they would be the only ones to apply.”
Rather than a full outsourcing arrangement, Lythgoe said the district needs a combined approach that keeps the current staff and gains added help from the resort as a supplement, not as a replacement for those who handle day-to-day operations.
Meeting Timeline
The outsourcing proposal was first introduced at a Feb. 3, 2026 work session, where the agenda listed “District functions, efficiency, outsourcing and cost savings.” The public notice for that session stated in uppercase letters: “THIS IS A PUBLIC MEETING, NOT A PUBLIC HEARING, NO PUBLIC COMMENTS WILL BE TAKEN.” After discussing outsourcing, the board entered a closed executive session on property acquisition and litigation.
One week later, on Feb. 10, the Bruening memo and operational outline were posted to the Utah Public Notice website as handouts for that day’s meeting.
On March 24, the board met again. According to multiple attendees, when the efficiency plan came up on the agenda, Zoom participants who attempted to speak were muted. The board again entered a closed executive session. The item was pushed to the next meeting, which had been scheduled for April 21.
On April 2, the board announced they had moved the meeting up by more than two weeks to April 3, the following day. The district clerk’s certificate of posting was dated April 2, 2026, giving the public roughly 24 hours’ notice. That is technically compliant with Utah’s Open and Public Meetings Act, which requires a minimum of 24 hours.
At the April 3 meeting, the board did allow public comment. Speakers were limited to three minutes, and Stark told the public at the outset that the board might not answer questions, instead taking them down for later consideration. When Moyal’s comments extended past his allotment, Stark moved to cut him off and told Moyal his concerns would not stop the posting of the RFP.
What the Bruening Memo Says
The Bruening memo notes that Utah law only permits a special district to contract out services that “cannot satisfactorily be performed by the officers or employees of the district.” It recommends the board explicitly document such findings in writing before proceeding.
The memo also identifies several alternative approaches the board has not publicly discussed: having the district retain its employees and contract only for engineering and construction, or reversing the current model so that Powder Mountain does the engineering while the district reviews the work.
None of these alternatives were mentioned in Stark’s email responses to the Standard-Examiner’s questions, nor were they discussed at the April 3 meeting.
Lythgoe, whose grandfather personally put up his own property as collateral to save the district from a bond default in the 1990s, said: “We went through a ton of work to stay a public utility and it was for a reason.”
The RFP is expected to be posted early next week. Responses are due within three weeks.


