August 28, 2019 Minutes

A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on August 28, 2019, at 3:30 p.m., at the Country Club of the Rockies, 646 Sawatch Drive, 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
  • Vincent Riggio
  • Bill Roe (via telephone)
  • Thomas Svoboda

The following Director was absent and excused:

  • Tom Howard

Also in attendance were:

  • Jerry Hensel, Director of Resort Operations, Vail Resorts (via telephone)
  • Dan Gallagher, representative for Arrowhead at Vail Association
  • Ken Marchetti, Marchetti & Weaver, LLC
  • Beth Johnston, Marchetti & Weaver, LLC, recording secretary

Call To Order

The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on August 28, 2019, at 3:30 p.m. noting a quorum was present. No conflicts of interest were disclosed.

Consideration Of Agenda

Director Shafer requested adding a discussion on the Town Hall meeting under agenda item #8.

Public Input

There was no public input.

Road Cut Application

Mr. Hensel reviewed the background for the road cut application submitted for 38 Riverbend Drive explaining that a misunderstanding led to the contractor starting the road cut prior to submitting an application to the District. Mr. Hensel explained that once the contractor was made aware of the application process, they expedited submission of the application and all applicable payments. Ms. Johnston confirmed that the road cut fee and deposit had been remitted and the road cut application was reviewed and approved via email by Director Shafer. Mr. Hensel reported that the road cut was complete and Alpine Engineering inspected and approved the completed project. Following discussion and upon motion duly made and seconded, it was unanimously

RESOLVED to ratify the Road Cut Permit Application for 38 Riverbend Drive.

Minutes

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

RESOLVED to approve the minutes for the following meetings as presented:

    • Regular meeting on July 24, 2019
    • Special meeting on July 31, 2019
    • Continuation of Special Meeting on August 13, 2019

Accounts Payable

Director Shafer reviewed the Accounts Payable list included in the packet explaining that he and Director Riggio reviewed and approved the invoices. General discussion on the list continued and Mr. Hensel reported that he oversaw the mudslide cleanup. By motion duly made and seconded, it was unanimously

RESOLVED to approve the accounts payable list as presented.

Action List

The Board reviewed the action list.

Arrowhead at Vail Update

Mr. Gallagher reported the following activity for the Arrowhead at Vail Association (AVA):

  1. The short-term rental regulations were approved and moving forward with some objections from certain members of the community. General discussion on rates and monitoring by Host Compliance.
  2. AVA contracted with McDowell Engineering to do traffic monitoring studies at the Arrowhead entrance to continue researching the feasibility of pedestrian improvements and a potential roundabout on Highway 6.
  3. Lighting Innovations returned to complete an in-depth study of lighting on Cresta Road and other areas. Once the additional studies are complete, they will update their study report.
  4. AVA is meeting with contractors to develop a landscape plan and get enhancement ideas.
  5. The Ute Trail return loop is expected to be completed by fall.
  6. AVA approved funds for phase II of the social media campaign.
  7. RETA is significantly ahead of budget for the year.

Road Safety

Mr. Hensel gave an update on the road safety meeting and reported that a potential plan was presented. The draft plan was emailed to Director Riggio and Mr. Hensel for review. Mr. Hensel said that he would forward the plan to Ms. Johnston for distribution to the remainder of the Board for further discussion at the September meeting.

Mr. Hensel reported that he received the following estimates in conjunction with the road safety plan:

  1. Lane striping $1,300/mile for double yellow, approx. $3,500 to complete Cresta Road
  2. 22’ temporary speed bump $1,600 for use at main road exit
  3. Pedestrian gates estimate from Vail Manufacturing $6,500-$7,500 per gate, no site visit was completed.

Director Shafer told the Board that Cordillera has a sign posted at their front gate addressing bicyclists and suggested the committee check with Cordillera to review their bike and road safety plan.

Other Operations

Mr. Hensel reported that the new truck had arrived and was undergoing final inspection before being delivered. Mr. Hensel reported on the mudslide that covered parts of Cresta Road noting that cleanup was extensive and expected to cost approximately $3,500 for equipment rental and labor to clean up the road, drop drains, and possibly the ditch.

Service/Operations Plan Review

Director Roe reviewed the operation plan noting that he received the additional information to update the 2019 plan. Director Roe said he needs to meet with Mr. Hensel to get the roster of projects for 2019 and 2020 and once that information is received, a draft of the plan can be reviewed. General discussion continued on other outstanding items and the District still needed to meet with AVA to determine overlap items. Director Roe said he would follow up with Mr. Gallagher and he and Mr. Hensel would meet before the September meeting.

Financial Statements

Mr. Marchetti and Director Shafer reviewed the financial statements included in the packet noting that there were no major budget variations. General discussion continued on specific ownership tax, cash, assets and bond cost of issuance.

Bond Refunding

Mr. Marchetti reviewed the bid summaries for Bond Counsel and Bank proposals received in response to the Request for Proposals sent out. Mr. Marchetti reviewed the differences in interest rates between tax-exempt and taxable options noting that the callable rates on the tax-exempt bonds were similar to the taxable rates, although the rates were floating until locked in closer to the closing. Mr. Marchetti explained that none of the Banks would quote for refunding the 2011 bonds as they were too far into the future. Mr. Marchetti suggested that the Board consider non-callable taxable bonds issued by Chase.

Mr. Marchetti then reviewed the bond counsel responses explaining that if the board decided to go with the taxable bonds, separate bond counsel may not be necessary since a tax-exempt opinion would be moot. Mr. Marchetti then explained that certain banks may only work with certain bond counsel so the amount could vary depending on the Bank that the Board decided to use.

Following discussion and review of the responses from the banks and bond counsel, there was direction from the Board to proceed with the JP Morgan Chase proposal for non-callable taxable bonds to refund the remaining 2009 bonds with bond counsel fees not to exceed $18,000. Updates will be provided in the September and October meetings with formal action to adopt a bond resolution and related bond documents to be taken at the November meeting in anticipation of a December 2 closing.

Town Hall Meeting

Director Shafer started a general discussion on the format, progression and expectations of the upcoming Town Hall Meeting.

Future Meetings

The Board confirmed that the next regular meeting would be September 25, 2019, starting at 3:30 p.m.

Continuation By motion duly made and seconded, it was unanimously

RESOLVED to continue this Regular Meeting of the Arrowhead Metropolitan District Board of Directors to August 28, 2019 immediately following the adjournment of the Town Hall Meeting, approximately 6:15 p.m. at Broken Arrow Restaurant located at 142 Arrowhead Circle, Edwards.

The August 28, 2019, Regular meeting was reconvened and continued this same day at the Broken Arrow Restaurant, 142 Arrowhead Circle, 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
  • Vincent Riggio
  • Thomas Svoboda

The following Directors were absent and excused:

  • Tom Howard
  • Bill Roe

Also in attendance were:

  • Beth Johnston, Marchetti & Weaver, LLC, recording secretary
  • Ken Marchetti, Marchetti & Weaver, LLC (via telephone)

Call To Order

The continued regular meeting held August 28, 2019, of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer at 6:30 p.m. noting a quorum was present. No conflicts of interest were disclosed.

Election Resolution

Following the Town Hall meeting, the Board engaged in general discussion of the comments and questions received from the attendees. The Board discussed the ballot language and requested that additional language should be included related to the Board’s ability to adjust the mill levy. Ms. Johnston explained that any changes to the ballot or resolution language would need to be vetted by District counsel. Following discussion, the Board requested that District counsel be consulted on the requested additional ballot language.

Continuation

By motion duly made and seconded, it was unanimously

RESOLVED to continue this Regular Meeting of the Arrowhead Metropolitan District Board of Directors to August 30, 2019 at 4:00 p.m. at the offices of Marchetti & Weaver, 28 Second St, Ste 213, Edwards.

 

Respectfully submitted,

Beth Johnston
Secretary for the Meeting