July 22, 2019 Minutes – Approved

A meeting of the Board of Directors of Arrowhead at Vail Association (the “Association”) was held on Monday, July 22, 2019. Board members present were Dan Gallagher, Diane Loosbrock, Randy Smith, George Bigley, and Tim Gropp. Board members, Cathie Bennett and Chad Hollingsworth, attended by phone. In attendance by video conference was George Coleman, Ex officio. Others present were Jerry Hensel, Association Manager, Sid Schultz with Design Review Administration, Mike Trueblood, Senior Director of Beaver Creek Village Operations, Bob Shafer, representing Arrowhead Metro District, Erin McCauley, Financial Analyst, and Carol Floyd, Secretary to the Meeting. The meeting was called to order at 10:01 a.m., and it was noted a quorum was present.

Public Comment

Bob Shafer gave an update on Arrowhead Metro District (“AMD”) matters. A 10-year road paving plan has been finalized by Alpine Engineering. Bob spoke about patchwork done near McCoy Creek and River Dance noting those areas will be paved in 2023. This month AMD will begin to revisit the proposition of a local sales tax. The AMD Service Plan rewrite is ongoing and expected to be complete within a month. AMD financials are on plan year to date. Discussion took place in regard to a decision to eliminate one bus and one snowplow driver position. Jerry Hensel noted there will be flexibility to hire an additional snowplow driver if snowfall necessitates. Jerry explained there is currently a summer maintenance staff of four, six days per week.

Approval of the June 24, 2019 Board of Director Meeting Minutes

George Bigley moved to approve the June 24, 2019 Board of Director Meeting Minutes as presented. Tim Gropp seconded the motion and it was unanimously approved.

Design Review

Sid Schultz spoke about Design Review Committee (“DRC”) discussions to better regulate duplexes. He said there may be legal issues pertaining to what can be imposed. Cathie Bennett said DRC plans to engage Greg Perkins to review applicable laws. Dan Gallagher asked that DRC formally submit a request to retain legal counsel, with scope of work, for the Board to provide direction.

Public Safety

Cathie Bennett stated an umbrella was taken from her backyard. On the Activity Report, Jerry Hensel pointed out vehicle count is down 9,000 in June year over year. On the complaint log, Dan Gallagher questioned if incidents related to rental guests are being tracked accurately. Jerry Hensel will follow-up with Public Safety. Issues specific to the Seasons were discussed. Jerry said he attended their last Board meeting and encouraged the association to involve Public Safety rather than to handle situations internally.

Cathie Bennett gave a brief overview of the Host Compliance (“Host”) kick-off process. There is no issue with a target date of October 1st. Host has advised Jerry Hensel on what information is needed for each parcel of property within Arrowhead for the purpose of identifying short-term rental properties. They explained the 10-minute licensing process. Cathie noted Host works with an outside group for credit card processing. She said there is much flexibility in how the 24/7 hotline is structured, i.e., whether complaints are forwarded to Public Safety or the person on call for a particular property. Jerry added the Association will have to give Host direction on the cadence of billing for licensing, and the language in those communications. Jerry agreed to get sample letters used by Beaver Creek and Bachelor Gulch. Cathie spoke about the eight comments received and her responses. Jerry requested Carol Floyd be copied on all responses to keep on file. Dan Gallagher requested Cathie provide the Board with proposed revisions to the regulation to coincide with hotel terminology and assist with administration. He said this should allow for the regulation to be adopted in the August Board meeting. Dan asked Cathie to draft form letters for the 1st, 2nd, and 3rd notices for the Board’s review.

Committees

Activities: Dan Gallagher said the last Thursday Afternoon Club (“ThAC”) started slow, but finished strong. The July 25th ThAC will include Yappie Hour. Dan reported construction on the Ute Trail has made the turn. Jerry Hensel added they are doing maintenance on the existing trail and awaiting direction to continue construction next week. It was noted the Ute Trail was named the best trail in Eagle County.

Alpine Club Advisory Committee: Tim Gropp said the current proposal is to extend winter pool hours to 8:00 p.m. in high season to be consistent with summer hours. George Coleman inquired as to the status of budget actuals for the current fiscal year and proposed budget for next fiscal year. Dan Gallagher will follow-up with Nadine on this matter.

Strategic Planning: Diane Loosbrock stated the Bravo! bus has been a super success. A decision will need to be made whether to extend or expand the service next summer. With the Board’s consent, Diane will obtain names from Public Safety of those who have utilized the bus, and she will follow up via email for feedback. The Board agreed. As transportation initiatives expand, Dan Gallagher recommended utilizing the Village Connect app for those routes. He noted poor cell service in corners of the community affect usage of the app. Jerry affirmed Verizon is expected to improve their service by next summer. Randy Smith proposed distributing the Bravo! bus schedule when Bravo! solicits ticket sales. Check in and check out of the lawn games and a part-time activities person was discussed. Jerry mentioned two Kid’s Camp leaders who may be interested in extra hours. Dan has asked the Urban Land Institute for concrete suggestions of ways to make the front lawn a more integral part of the fun that happens at Arrowhead for the younger segment of the community. Comments were made that the Activities chairperson has become overloaded. Jerry reiterated, with all of the activities now scheduled, part-time help is needed. The Board was in agreement and discussed various sources for potential employees. Bob Shafer will inquire with County Club of the Rockies (“CCR”) caddy program, and George Bigley will speak with Nadine Davis. Diane will meet with Michelle Horton to develop a job description. Diane Loosbrock relayed ideas shared by Diane Neste for making the mountain more family friendly and the challenge for never-ever skiers to get down the mountain. Dan Gallagher added Vail Resorts is open to consider any enhancement on the mountain if the Association is able to budget for it. The committee discussed ways of generating more traffic to ThAC, and Diane asked that any suggestions be shared with Michelle.

Landscaping/Beautification: Cathie Bennett said all flowers have been planted and are looking great. She noted there are a few bushes that are trying to heal themselves from the significant amount of snow last winter. A question was raised in regard to the replacement of the memorial tree. Jerry answered the tree has been replaced and more improvements are planned before fall to secure its designation.

Communication: Randy Smith reported on social media activity year to date, noting good reach and interaction rates in comparison to similar type areas. He said the sites are accomplishing engagement. Ad buying is focused on getting Arrowhead’s message to cities who have direct flights to Vail, ages late 40s to 60, with defined income levels. Randy added the ad spend has been low so far, but is expected to pick up during the winter season. Chad Hollingsworth described this phase as “early days.” He said it is about trend. In regard to how to best use the social media platform, he advised, at the right time, converting it from something not only entertaining and engaging but also informational will be important. Dan and Chad discussed the value of the Jareds communicating and collaborating with those overseeing social media in Bachelor Gulch and Beaver Creek. George Bigley explained some events in Bachelor Gulch sponsored by The Ritz-Carlton and Bachelor Gulch Village Association are intended to be amenities for hotel guests and Bachelor Gulch property owners.

HOA Presidents Council: One suggestion Tim Gropp received from the council was to embed live links to social media and events in the newsletter. He proposed using bullet points as an intro to each newsletter. He said he received positive feedback in regard to the email reminders. Randy Smith asked Tim to query the council regarding the effectiveness of the gate posters. Jerry Hensel expressed his opinion that other locations may be better. Alternative methods of distribution were discussed. Tim said the council deliberated over the Highway 6 crossing issue. Dan Gallagher noted joint use of the CCR tunnel is not viable due to liability and risk factors. He gave an update on a meeting between AMD and two CDOT officials from the western region and Eagle County. They advised a stoplight would not be an option because of the speed limit. They suggested a tunnel, bridge or round-about, and recommended consulting with Kari McDowell, traffic and transportation engineer, to find the best solution. Dan said they are meeting with her today.

Financials

Tim Gropp reviewed the Income Statement as of June 30, 2019. He highlighted variances for interest, trash and insurance that have been carried forward to yearend. $713K has been received in Real Estate Transfer Assessments (“RETA”), and an additional $144K is expected by August to exceed budget by approximately $100K. On the Balance Sheet in Accounts Receivable, Tim reported 15 owners are outstanding on their annual assessment. Certified letters have been sent, and the next step will be to send notices of delinquency. Tim gave an overview of the status of capital projects estimating $64K in savings. Tim suggested investing some or all of the surplus in short-term CDs earmarked for long-term projects. Jerry Hensel affirmed Randy Smith’s recollection of the Board’s policy to hold six months of operating expense in the cash reserve.

Other Business

Lighting Study Update: Dan Gallagher briefed the Board on a meeting with Innovative Lighting (“Innovative”) attended by himself, Randy Smith, Diane Loosbrock, Bill Roe, Bill Hughes, and Jerry Hensel. The consultants explained their approach. Areas determined to be in need of further evaluation were Cresta Road, under lighting in the Village, and enhancements on either side of the entrance. Innovative will come back for a second round of night studies and suggestions. They have been asked to provide a slightly less contemporary look and more product options. Following the meeting, consensus among those in attendance was to engage a second consulting group to review and comment on Innovative’s final proposal. Another consideration in connection with this project will be whether to update the existing logo and/or color scheme.

Mountain Safety: Dan Gallagher spoke about a meeting with Gary Shimanowitz and continued dialogue regarding mountain safety. Gary is coordinating with Vail Resorts legal department a final presentation of what they are going to do in response to the concerns of Arrowhead. Gary suggested implementing a quarterly communication meeting with pertinent community stakeholders. George Bigley commented that the Association does a good job of communicating with stakeholders through the various committees. He suggested the possibility of a Board member attending the Beaver Creek Property Owners Association (“BCPOA”) communications meeting to receive updates, noting these meetings are report out and not strategic. Dan said a communications meeting for Arrowhead would provide the opportunity to get updates and voice questions or concerns. Jerry will arrange for a member of the Board to attend the next BCPOA communications meeting.

Vail Resorts Management Agreement: Tim Gropp informed the Board of a recent meeting to commence with updating the existing 1998 Vail Resorts Management Agreement. He explained the timeline. A list of high level issues summarized by everyone involved is due Wednesday. Vail Resorts attorneys will review. In general, Tim said there are terminology, definition, and process matters to address. Dan noted the agreement is coming up for a three-year term renewal on December 31st.

There being no further business, Diane Loosbrock moved to adjourn the meeting. Randy Smith seconded the motion and the meeting was adjourned at 12:01 p.m.

Respectfully submitted,

Carol Floyd
Secretary for the Meeting