October 28, 2019 Minutes – Approved

A meeting of the Board of Directors of Arrowhead at Vail Association (the “Association”) was held on Monday, October 28, 2019.  Board members present were George Bigley and Diane Loosbrock.  Board members, Dan Gallagher, Randy Smith, and Chad Hollingsworth, attended via video conference.  George Coleman, Ex officio, Cathie Bennett, Board member, and Mary Pat Rapp, Board nominee, attended by phone.  Others present were Jerry Hensel, Association Manager, Mike Trueblood, Sr. Director of Village Operations, Koby Kenny, Director of Public Safety, Erin McCauley, Financial Analyst, Sid Schultz with Design Review Administration, Bob Shafer representing Arrowhead Metro District, Mark Noble, Board nominee, and Carol Floyd, Secretary to the Meeting.  The meeting was called to order at 10:08 a.m., and it was noted a quorum was present.  Introductions were made.

Public Comment

Bob Shafer gave an update on the local sales tax election.  Ballots have been sent to Colorado residents who own property in Arrowhead.  They are due Tuesday, November 5th, by 7:00 pm.  He noted they can be mailed or dropped off at the office of Marchetti Weaver.  A communication was sent on behalf of the Friends of Arrowhead Metro District on October 10th, including an overview of the initiative, an explanation of what is within the tax eligibility, and resolutions of support from Arrowhead Metro District (“AMD”) and the Association.  Ballots will be counted and validated the week following the election.  Bob spoke about a joint meeting of some members of AMD and the Association that occurred on October 8th with consultants hired for the Highway 6 safety initiative.  Five potential solutions were discussed including a roundabout, sidewalk to the Miller Ranch crossing, bridge, tunnel, and widening of the CCR tunnel.  Jerry Hensel is working with Alpine Engineering to assess these options and obtain cost estimates.  Jerry added he has received this information and will present it at the upcoming AMD Board meeting.  Bob informed the Board of a recommendation by the AMD Budget Committee to be presented to the AMD Board for their consideration to cover $41K in expense for additional transportation services from Arrowhead to Beaver Creek six evenings per week during the holidays and spring break, four evenings per week for the remainder of the ski season, and to continue the Bravo bus to select events next summer.  Bob said AMD will review two versions of their budget at their meeting on October 30th, one with an 18.5 mil rate in the event the sales tax does not pass, and a 17 mil rate if it does pass.

Design Review

Randy Smith inquired as to the status of the landscaping issue at 84 Riverbend that was referred to the Association Board. Sid explained the matter was sent back to the Design Review Committee (“DRC”).  Both parties will present their case at the November 7th DRC meeting.  The compliance deposit will not be returned until the matter is resolved.  Sid said he has done a final inspection of this project, and all work has been satisfactorily completed.

Public Safety

Koby Kenny said the current focus of Public Safety is to ensure they are fully staffed for the winter season.

Committee Reports

Hiking: Jerry Hensel reported the Ute Trail is complete and has received very positive feedback.  George Coleman suggested prepaying for a future trail project with some of the surplus in this year’s budget.  Jerry Hensel said this could be a consideration if a specific trail is identified.

Pool Advisory Committee:  George Coleman inquired about the status of updating the Alpine Club Pool Shared Use and Cost Share Agreement. At Dan Gallagher’s request, George will review the document and make a recommendation to the Strategic Planning Committee.

Communications:  Randy Smith said the Committee has been working to increase awareness of the Arrowhead Facebook and Instagram sites.  Script style options are being evaluated.  Fresh Tape has been asked to increase activity on the sites during late November and early December by drawing interest with skiing activity on Arrowhead Mountain.  Randy spoke of plans to send regular communications regarding skier safety.

Past Presidents Council: The next meeting is tentatively scheduled for November 18th at 3:00 p.m.

HOA Presidents Council: Dan Gallagher stated Tim Gropp is working on a date for the next meeting to be held in the next couple of weeks.

Nominating: Diane Loosbrock said she has requested bios from the 2020 Board nominees for inclusion with the annual meeting ballot and for distribution to the Board.

Other Business

Annual Meeting Date: Jerry Hensel proposed December 21st, 22nd, or 23rd at 6:00 p.m. to schedule the Annual Meeting at Broken Arrow.  He will also check with Vista Restaurant on the possibility of holding an early-afternoon meeting after Christmas.  Jerry will get back to Dan Gallagher by the end of the week.

Short-term Rental / Host Compliance Update: Jerry Hensel reported there are 138 known short-term rentals.  Once Vail Resorts completes registration for the properties they manage, 101 rentals will be in compliance.  37 properties remain to be identified.  Erin McCauley has been auditing the incoming revenue.  Jerry said Host Compliance has the 30-day reminder letter ready to send.

Lighting Study Update: Dan Gallagher reported on a meeting that took place with Innovative Lighting (“Innovative”) and some members of AMD and the Association.  He said Innovative presented additional choices with various price points.  David Cooper, architect and former Chairman of DRC, and Kathy Aalto, landscape architect, are now involved to shape the direction and choices for lighting.  Dan asked Bob Shafer about the requirements AMD is subject to related to bids, if the Association were to go forward with a lighting plan over the next couple of years.  Bob confirmed any project over $5K requires two bids.  Jerry said an inventory of lighting has been taken by Public Safety, and that information is being priced out by Innovative. He further spoke about the breakdown of lighting ownership between the Association, Village at Arrowhead Association, AMD, and Vail Resorts.

Mountain Safety Update:  Dan Gallagher referenced the letter from Gary Shimanowitz regarding Vail Resorts’ plans for enhancing safety on Arrowhead Mountain.  Randy Smith will work with Vail Resorts on the effort to communicate the skier responsibility code and promote education on how to ski safety.

Arrowhead Map Update: Dan Gallagher expressed disappointment with the first draft of the Arrowhead Map.  Jerry explained time constraints the contractor is under as Vail Resorts primary map provider.  Dan and Jerry were confident the contractor will get to the desired end result in the long term.

Financials

September 2019 Financials:  Erin McCauley reviewed the financials as of September 30, 2019, stating real estate transfer assessments (“RETA”) have been strong and are forecasted to end the year at $1.3m.  One owner remains outstanding on their annual assessment.  She has worked with legal counsel to set up a payment plan, but no payment has been received.  Legal counsel is going to call this property owner and will allow 15 additional days to submit payment.  If payment is not received, the lien process will commence with the Board’s approval.  Erin said expenses are in line with budget.  Randy Smith informed Erin that legal costs may exceed what is currently assumed due to the current review of the Vail Resorts Management Agreement.

Proposed 2020 Budget:  Erin McCauley highlighted changes included in the updated budget.  For income, the number of assessed units was increased from 729 to 731 based on duplexes under construction.  In regard to operating expenses, $10K was added for maintenance of the Mud Springs Trail.  The capital projects budget was reduced to $110K.  $150K for entrance improvements has been moved to a future year.  $5K was added for the Highway 6 crossing and traffic study.  Dan Gallagher commented on numerous capital projects and budget line items.  $50K is included for a first phase lighting expenditure.  $20K is budgeted for hiking, pending identification of a trail.  Landscaping is reduced from $33K to $20K to consult with a landscape architect and develop a phased plan to be implemented over the next few years.  The Association is obligated to contribute $5K to Village landscaping.  Wildland fire mitigation is also a commitment.  Marketing was increased to support phase two of the marketing effort.  Dan noted the updated budget created a surplus of $20K.  He further mentioned if AMD does not approve $41K in their budget for enhanced transportation services, the Association will have to reconsider including this expense.  Jerry Hensel clarified that $5K currently remains in the Association budget for summer event transportation.  Diane Loosbrock pointed out some of the expense for expanded transportation over the holidays will fall within 2019.  Jerry advised he will email the budget to the Board for electronic approval next week, once AMD has approved their budget.

Replacement Reserves and Reserve Study: Dan Gallagher suggested the incoming Board focus on an inventory of assets owned by the Association and to ensure they are properly reserved for.  He recommended having a professional reserve study done.

Other Business

Randy Smith informed the Board the Association will be transitioning to a new web services management organization in Edwards on November 1st.

There being no further business, Diane Loosbrock moved to adjourn the meeting.  George Bigley seconded the motion and the meeting was adjourned at 11:06 a.m.

Respectfully submitted,

Carol Floyd, Secretary to the Meeting