September 26, 2018 Minutes

A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on September 26, 2018, at 3:30 p.m., at the offices of Marchetti & Weaver, LLC, 28 Second Street, Suite 213, Edwards, Eagle County, Colorado, in accordance with the applicable statutes of the State of Colorado.

Attendance

The following Directors were present and acting:

  • Bob Shafer
  • Bob Rosen
  • Thomas Svoboda
  • Vincent Riggio
  • Tom Howard (via telephone)

Also in attendance were:

  • Jerry Hensel, Director of Resort Operations, Vail Resorts
  • Ken Marchetti, Marchetti & Weaver, LLC
  • Beth Johnston, Marchetti & Weaver, LLC, recording secretary
  • Geoff Dryer, Upper Eagle River Water & Sanitation District (arrived 4:30 p.m.)
  • George Coleman, President of Arrowhead Vail Association (via telephone)
  • Paul Gorbold, Sr. Manager Guest Transportation, Vail Resorts

Call To Order

The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on September 26, 2018, at 3:30 p.m. noting a quorum was present. No conflicts of interest were disclosed.

Consideration Of Agenda

Director Shafer added an update of the Intercommunity Council meeting.

GPS Application & Transportation For 2018/19

Mr. Gorbold reviewed the background and community need for transportation services for Arrowhead residents and guests, explaining the different computer aps available. Mr. Gorbold relayed that they are implementing a new computer ap in Beaver Creek and Bachelor Gulch called Village Connect for their transportation system and they anticipate also implementing it in Arrowhead. The ap will provide enhancements of the service and to the guest experience including real time guest feedback. Mr. Gorbold reported that the service has received positive reviews in Beaver Creek and Bachelor Gulch and he reviewed the communication campaign to implement the service in Arrowhead for the coming season. General discussion continued with the Board asking several questions about the service and how it will be implemented. Mr. Gorbold explained that the cost of Village Connect was built into VR’s hourly fee for the 2018-2019 transportation agreement.

Mr. Gorbold then reviewed the proposed 2018-2019 transportation service agreement. The Board requested a detailed breakdown of what made up the hourly fee to be presented at the next meeting. Mr. Gorbold explained that the estimates for transportation services were based on prior years and that the District only paid for actual service received with staff being shared between Beaver Creek, Bachelor Gulch, and Arrowhead. General discussion continued on staffing levels, poor snow years, and reductions to service. Ms. Johnston explained the ADA shuttle payment and that is would be remitted to Beaver Creek Metro District per the cost sharing agreement.

AVA Update

Ms. Johnston confirmed distribution via email of the Arrowhead at Vail Association Report and also distributed a hardcopy of the report to meeting participants. Mr. Coleman reviewed highlights of the report including the revised design review guidelines, short term rental regulations, and the annual meeting date.

Minutes

The Board reviewed the minutes included in the Board packet and after review, by motion duly made and seconded, it was unanimously

RESOLVED to approve the August 22, 2018 Regular Meeting minutes as presented; and

FURTHER RESOLVED to approve the September 5, 2018, Special Meeting minutes as presented.

Vail Pass Auxiliary Lane Project

Mr. Marchetti and Director Shafer reviewed the project and the draft letter of support provided in the Board packet from the Upper Eagle Regional Water Authority. After review, the Board agreed to sign the letter of support and return to Colorado Department of Transportation as recommended by UERWA.

Road Cut Policy

Ms. Johnston reviewed the road cut policy, letter, and permit application included in the Board packet. The Board continued discussion on whether the fees and deposit were sufficient to cover the District’s costs. The Board also requested that Alpine Engineering be asked to backstop the warranty estimate for the 20 Gleneagles Court road cut. After discussion, and upon motion duly made and seconded, it was unanimously

RESOLVED to approve the Road Cut permit fee and policy with the following changes:

The non-refundable permit fee be increased to $300

The refundable deposit be based on the road cut size on a per square foot cost to be determined by Alpine Engineering instead of a fixed amount.

Intercommunity Council meeting Update

Director Shafer reviewed the background and composition of the Intercommunity Council explaining that the Council’s main focus was how to brand Arrowhead in a way to attract younger people to Arrowhead. After interviewing marketing groups, the Council hired J-Squared out of Denver to create and implement a 12-month marketing campaign starting in 2019 and estimated to cost approximately $60,000. The Council is interested in cost sharing the marketing campaign and is requesting the District participate financially in the campaign. The Board discussed the benefits of participating in the program including District sponsored transportation services and potential for economic growth from increased property tax and sales tax (if the sales tax passes). After discussion, the Board directed a new line item be added to the 2019 budget titled Economic Development to be budgeted at $20,000.

Accounts Payable

Ms. Johnston confirmed distribution via email of an updated Accounts Payable List and also distributed a hardcopy of the report to meeting participants. Ms Johnston explained that the added payable for Gran Farnum Printing was required because payment was due prior to the ballots being mailed on October 15th. Director Howard inquired on the ponds maintenance and berm tree maintenance payments. Mr. Marchetti and Mr. Hensel reviewed the background and acquisition of the Riverdance ponds and the berm maintenance in conjunction with Country Club of the Rockies. Discussion continued on whether or not these items were within the District’s scope of services. Following discussion and by motion duly made and seconded, it was unanimously

RESOLVED to approve the revised accounts payable list.

Election Update

Ms. Johnston reviewed the election calendar included in the Board packet, noting that the ballot packages were printed and set to mail out on October 15, the TABOR notice was prepared, and notices of the election were posted and would be published as required.

Financial Statements

Mr. Marchetti reviewed the financial statements included in the packet. Discussion revolved around the pooled cash accounts and 2018 and 2019 ending fund balances.

2019 Budget

Mr. Marchetti reviewed the 2019 budget work session held on September 19 stating that the process started with a $0 based budget approach as requested with most line items being reviewed in detail by Directors Howard and Riggio. Mr. Marchetti advised that the October meeting be published for the 2019 budget hearing by the Board and the budget is open for community input.

2018 Audit

Director Shafer reviewed the engagement letter submitted by McMahan and Associates for completion of the 2018 Audit. Director Shafer noted a small increase over last year’s fee but said they did a good job on previous audits. By motion duly made and seconded, it was unanimously

RESOLVED to approve McMahan and Associates to complete the 2018 audit as outlined in the engagement letter.

Operations Report

Mr. Hensel reported that the Cresta Road pavement markers and signage has been installed in accordance with the requested safety plan.

Mr. Hensel reported that he had reviewed the McCoy Creek Road entry with Alpine Engineering resulting in two options. The first option is to sealcoat with a slurry seal resulting in a nicer looking finish but that will not increase the life of the road. The second option is to complete a 1 ½” mil and overlay which would increase the life of the area by five or more years. The Board discussed both options as well as the need to fix two dips in the road that were also failing. After discussion and upon motion duly made and seconded, it was unanimously

RESOLVED to approve a 1 ½” mil and overlay of the entry and two patches in 2018 with a cost not to exceed $15,000.

Public Safety Staff Performance

Mr. Hensel reported on his meeting with public safety managers to review complaints from the communities, including Arrowhead, and found that the main issue seemed to be lack of follow up once a complaint is made. Mr. Hensel stated that new procedures were being established to follow up with the complainant after a complaint is investigated. Discussion continued on the general apathy and disrespectful attitudes exhibited by staff as they act like police instead of ambassadors for the community. Mr. Hensel said he would address this issue with managers and determine appropriate training for interpersonal interactions between staff and the community.

Action Log

The Board reviewed the current action log.

Future Meetings

The Board confirmed the next regular meeting would be October 24, 2018 starting at 3:30 p.m. and the meeting should be noticed for the 2019 budget hearing.

Director Rosen announced that his home in Arrowhead was under contract for sale and he well be ineligible to serve on the Board after he sells his home and transfers his voter registration from Arrowhead. Director Rosen expressed his thanks to his fellow board members. Director Shafer thanked Director Rosen for his service on the Board.

UERWA

Mr. Dreyer reviewed the August minutes of the Upper Eagle River Water Authority included in the Board packet, discussing the water efficiency plan, water supply response plan, drought update, Eagle River Valley Mobile Home Park update and the Black Lakes Augmentation Plan. Mr. Hensel noted that the District received a letter of thanks for their reduced water usage. Mr. Dreyer requested that a review of the District’s water rights and allocation within the Authority be discussed at the next meeting.

Adjournment

There being no further business to come before the Board, by motion duly made and seconded, it was unanimously

RESOLVED to adjourn the Regular Meeting of the Arrowhead Metropolitan District Board of Directors this 26th day of September 2018.

Respectfully submitted,

Beth Johnston
Secretary for the Meeting