November 25, 2019 Minutes – Approved

A meeting of the Board of Directors of Arrowhead at Vail Association (the “Association”) was held on Monday, November 25, 2019. Board member George Bigley was present. Board members, Dan Gallagher, Randy Smith, Tim Gropp, and Chad Hollingsworth, and George Coleman, ex officio, attended via video conference. Board member Diane Loosbrock attended by phone. Also 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 and Steve Nusbaum with Design Review Administration, Bob Shafer representing Arrowhead Metro District, Mark Noble and Mary Pat Rapp, Board nominees, and Carol Floyd, Secretary to the Meeting. The meeting was called to order at 10:02 a.m., and it was noted a quorum was present. Introductions were made.

Public Comment
Bob Shafer reported on results of the local sales tax election that passed 52% to 48%. The effective date will be July 1, 2020. As of January 1, 2020, the mill rate for all residences will go down from 18.5 mills to 17 mills. Bob shared a draft communication to be emailed to all property owners. Mark Noble suggested adding a sentence to clarify how mill rates are developed. Bob informed the Board that AMD recently refinanced $2.1M in taxable bonds at a rate of 2.41%, for a savings of $245K when they are paid off in 2032. Bob said the winter shuttle schedule with evening service has been finalized. A plan is being made for the skier parking lot to better accommodate plowing services.

Public Safety
Koby Kenny elaborated on the plan for parking in the skier parking lot. Signage will be installed on light posts directing early arrivals to park at the north and west ends of the parking lot. There will be a more robust educational process in regard to hangtags and information for those entering through the main gate. Arrowhead Property Management will include this information in their rental packets.

Committees
Pool Advisory Committee: George Coleman spoke about a meeting with George Bigley to review the current Alpine Club Pool Shared Use and Cost Share Agreement that was last updated in 2002. Currently, the pool budget is prepared and presented to the Association in December after the Association has approved their budget. George Bigley is looking into the possibility of presenting the pool budget prior to October. A reconciliation is required every January to determine if each entity has contributed the appropriate amount or any credits are due. The Association is supposed to receive a certificate of liability insurance naming Arrowhead at Vail Association and Village at Arrowhead Association. George Coleman requested George Bigley inquire as to whether the current $1m coverage is adequate. Lastly, George Coleman recommended review of wording in the agreement.

Marketing and Communication: Randy Smith summarized a communication scheduled to go out to property owners on December 1st. It will include the new transportation program and schedule, annual meeting information, activities update, and 2019 accomplishments. Another communication will be sent prior to evening transportation commencing December 12th. Weekly reminders will go out starting in January for the Tuesday ski bus to Vail. The Committee has been examining the font used by Arrowhead for collateral, letterhead, and communications. This element is being reviewed as part of the overall image program including landscaping and lighting. The group has been commenting on approximately ten options, and will narrow that number down for the Board’s review. Subject to the approval of Vail Resorts Marketing, details highlighting Arrowhead at Vail Facebook and Instagram IDs will be placed in the windows of the ticket office, Alpine Club, and Broken Arrow.

Presidents Council: George Coleman commented on the value of the Presidents Council, to further disseminate information to the community and to tap into the wisdom of those who have come before the current Board. He recommended continued support of this group.

Committee Restructuring: Randy Smith shared his viewpoint of the current committee structure. He recommended reducing the number of committees, and leveraging the experience and expertise of the Vail Resorts management team. Mark Noble suggested the Board identify a number of key items they would like to accomplish, and structure committees and focus resources around those goals. George Coleman commented on the effectiveness of committees related to their leadership. Dan Gallagher added a historical perspective. He described the evolutionary process that has occurred over the last five years since the Urban Land Institute came to Arrowhead and identified the problem of Board burnout. He said the intent going forward is to be more efficient.

Financials
Tim Gropp reviewed the financials as of October 31, 2019. In regard to revenue, all annual assessments have been paid. $1.3M in real estate transfer assessments (“RETA”) have been received, exceeding the budget of $1.17M. $1.4M in RETA is projected for yearend. Related to expense, the overage in Municipal Services is because some positions were filled prior to the new calendar year. The overage in Public Safety is due to overtime for covering unfilled positions. Projections show a healthy Operating Fund balance at yearend. Tim suggested investing some of the overage midyear next year, and earmarking the funds for specific projects.

Other Business

Short-term Rental Update
Jerry Hensel stated there are currently 176 properties in Arrowhead advertising short-term rentals. 114 have registered. Of those who are advertising today, 60% have been identified. 23 new properties have advertised in November. $10K has been received in revenue, and an additional $12K to $13K is anticipated. George Coleman noted the rationale behind the short-term rental regulation was to create a more user-friendly neighborhood where everyone abides by the same rules. It was mentioned that the new local sales tax will apply to short-term rentals.

Arrowhead Map
Dan Gallagher asked for any further comments on the Arrowhead map to be sent to him today. Jerry Hensel recommended providing feedback to the map maker as soon as possible.

Annual Meeting Agenda
Tim Gropp moved to schedule a Special Board meeting on December 21, 2019, immediately following adjournment of the Annual Members Meeting, and for that meeting to be chaired by the sitting Vice President. Diane Loosbrock seconded the motion and it was unanimously approved.

Management Agreement
Jerry Hensel informed the Board of an upcoming meeting he has scheduled with Mike Trueblood and the Vail Resorts legal team to finalize the Management Agreement (“Agreement”) for the Board’s review. Randy Smith noted the current Agreement expires December 31, 2019. Dan Gallagher added that the Agreement will automatically rollover.

2019 Highlights

Dan Gallagher thanked everyone for their efforts over the past year. He expressed gratitude to Bob Shafer for AMD’s collaboration with and contributions to the Association. He said the Board is moving tremendously in the right direction to position Arrowhead as the place to be in the Vail Valley.

The Board entered an Executive Session at 11:11 a.m. to discuss a matter which disclosure of would constitute an unwarranted invasion of individual privacy.

George Bigley moved to adjourn the Executive Session at 11:28 a.m. Diane Loosbrock seconded the motion and it was unanimously approved.

There being no further business, motion was made by Diane Loosbrock to adjourn the meeting. Tim Gropp seconded the motion and the meeting was adjourned at 11:29 a.m.

Respectfully submitted,

Carol Floyd
Secretary to the Meeting