A Special Meeting of the Board of Directors (the “Board”) of the Green Mountain Water and Sanitation District, (the “District”) was held at 6:30 p.m. on Tuesday, May 19, 2026.

Attendance:

A special meeting of the District was scheduled in compliance with the laws of the State of Colorado, with the following directors in attendance:

• Karen Morgan, President
• Roger Wendell, Vice President/Secretary
• Philip Hardinger, Treasurer
• David Wiechman, Director (remote)
• Arthur Martinez, Director

Also present were:

• Dylan Woods, Title 32 Attorney
• Josh Stanley, District Manager, GMWSD
• Sam R. McKay, GMWSD
• Jesse Daveport, GMWSD
• Doug Pavlich, GMWSD
• Lossi
• Trader
• Ludmila
• Other Guests

Call to Order / Declaration of Quorum:

Noting a quorum of the Board, Director Morgan called to order the Special Meeting of the Board of the Green Mountain Water and Sanitation District at 6:31 p.m.

Pledge of Allegiance:

The Board stood and recited the pledge of allegiance.

Directors & Disclosure Matters:

None.

Approval of/Deletions from the Agenda:

None.

Public Comment:

Members of the public wishing to address the board during the public comment period are asked to indicate the agenda item number or public comment period next to their name on the sign-in sheet. Members of the public will then be recognized by the Board as each agenda item is undertaken.

• Lossi: Raised a question about aging piping and infrastructure replacement fees and asked for clarification on how fees are determined and adjusted.
• Holt: Submitted an email comment for the May 12th meeting that was read during this meeting. He expressed concern over the costs of recent water bills and requested the Board address: usage markup; fixed vs variable costs; senior hardship relief; and legal and administrative spending.

Amending 2026 Rates and Fees

a.       Adopt new 2026 rates and fees due to the Denver Water drought surcharge

• The Board discussed the surcharge from Denver Water that the District will be assessed, with Mr. Pavlich providing an explanation of the four drought scenarios. Scenarios one and two include a fee that fluctuates based on user consumption while three and four are fixed. Scenarios two and four involve the District contributing reserve funds to reduce costs for constituents. (16:45)
• Mr. Pavlich described the estimated drop in reserves that may result from scenarios two and four. (24:01)
• Mr. Pavlich confirmed that costs are related to the current drought situation and that restrictions and the surcharge will continue until next April, although the situation could change. (25:52)
• Director Morgan presented generalized graphs to provide a visual aide to the explanation of the surcharge in relation to Denver Water and the District. (27:19)
• Director Morgan presented a table of fiscal and conservation policies for equal application vs pay by use application. The Board discussed how to best apply the fee since everyone will have to pay something regardless. (35:11)
• The Board briefly considered using District reserve funds to cover the costs entirely for this year, with brief public comment adding to the discussion. (39:49)
• Director Martinez MOVED to adopt the scenario four fee structure. Director Hardinger seconded. (43:39)
• The Board briefly discussed the potential for changes in the future and clarified scenario four and the projected fee amount. They also discussed the reasons for using the reserves, what factors may influence how much is taken from reserves, and whether rebuilding lost reserves would be difficult. (45:22)
• Mr. Stanley suggested assessing a fixed number for the customer and the remaining amount paid from the reserves would fluctuate based on water usage. (55:53)
• Director Martinez WITHDREW his previous motion and MOVED to apply a new drought surcharge fee of $6.53 per SFRE per month and to make up any other surcharge amount to Denver Water out of the reserves, all of which aligns with scenario four. (57:53)
• The Board took a 15-minute break at 7:35 p.m. so that Mr. Pavlich could double-check the fixed fee amount to be assessed per month. (1:04:08)
• Reconvening at 7:50 p.m., The Board confirmed that the fee should be $6.53 per month per SFRE. (1:04:40)
• Returning to Director Martinez’s motion, the Board confirmed the motion as: to approve $6.53 per SFRE per month for all multifamily residential users, this aligning with scenario four, and all other fees to be paid to Denver Water to be paid by reserve funds. Director Wendell seconded, following discussion and upon vote the motion PASSED with Director Wiechman against. (1:05:35)

i.        Motion: To promote constructive community engagement and reduce divisiveness, neighbor complaints will not be used as a basis for enforcement.

ii.      Motion: To uphold principles of transparency and due process, complaints must include identifying information, and anonymous submissions will not be recorded.

iii.    Motion: Penalties may be appealed to the manager and then to the board

• The Board evaluated how to handle enforcement, reviewing the above motions and discussing whether to utilize neighbor reporting for information or for enforcement. (1:07:14)
• The Board further debated assessing fines based on called in reports, using ‘Eye on Water’ to verify claims, and starting enforcement based on water usage monitoring.  (1:11:51)
• The Board expanded on the discussion of staff taking action based on neighbor reports. Mr. Stanely mentioned the type of calls the District has received recently, noting that most people are calling to confirm their watering days or to ask how they can do their part during the drought. (1:18:06)
• Director Wendell MOVED to allow anybody to have the ability to report to the District when somebody believes there is an abuse of water restrictions, and District personnel would bring it to the attention of the property owner after looking at ‘Eye on Water’ or using other tools for verification. Director Hardinger seconded. (1:22:55)
• The Board clarified the motion and deliberated various aspects, including acceptance of verbal communication only, timing of assessing penalties, and current vs potential use of ‘Eye on Water’ monitoring. (1:25:20)
• Audience member Trader provided brief public comment, pointing out that an increase in water usage does not necessarily mean people are watering their grass as there could be increased water usage within the home due to extenuating circumstances. (1:32:59)
• Mr. Stanely clarified that proactive calls made by the District are made when flow is detected for every hour of a 24-hour period and are not just based on water usage. (1:34:32)
• After restating the motion on the table, upon vote the motion FAILED, with Director Morgan, Director Wiechman, and Director Hardinger against. (1:37:45)
• The Board discussed appeals of penalties, specific penalties for watering outside of designated day, and whether adopting the Denver penalty structure is too strict. They will wait to discuss more later once they have more information. (1:41:22)

b.      Discuss mailer for drought notification

• The Board considered whether to send the mailer before or after deciding on a penalty structure. They decided to continue this rate and fee hearing later to confirm a penalty structure, but they will send out the mailer with “penalties may be assessed” for now. (1:48:29)
• The Board confirmed the information to be included in the mailer, including the surcharge, watering rules, suggestions for indoor water conservation, and links to ‘Eye on Water’ and the District website. (1:51:26)
• The Board reiterated that people can still call in as they have been able to before now; however, reports will just be used for informational purposes and will not be used as a basis for enforcement. (1:53:15)
• Director Morgan MOVED to continue the rate and fee hearing to the June regular meeting specifically to discuss penalties. Director Martinez seconded and upon vote the motion PASSED unanimously. (1:55:34)
• The Board deliberated what form of communication to use for the mailer – full postcard, bill insert, or email – and whether to split it based on communication preferences. (1:56:54)
• Director Martinez MOVED to send out a full postcard mailer. Director Hardinger seconded, following discussion and upon vote the motion PASSED unanimously. (2:00:00)

New Business:

None.

Other Matters:

There were no other matters to come before the Board.

Adjourn:

The meeting was adjourned at 8:47 p.m.