November 20, 2019 minutes

R E C O R D  O F  P R O C E E D I N G S

Minutes of the Regular Meeting Of the Board of Directors Arrowhead Metropolitan District November 20, 2019 A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on November 20, 2019, at 3:30 p.m., in the conference room of Marchetti & Weaver, LLC, 28 Seconds St, 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
• Bill Roe (via telephone)
• Tom Svoboda (via telephone)
• Vincent Riggio

The following Director was absent and excused:
• Thomas Howard

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 Dreyer, representative for UERWA

Call To Order
The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on November 20, 2019, at 3:31 p.m. noting a quorum was present. No conflicts of interest were disclosed.

Consideration Of Agenda  There were no changes to the agenda.

Public Input  There was no public input.

November 5 Election Update
Director Shafer reviewed the results and turnout of the November 5, 2019, special election and thanked everyone for the work done in regard to the election. General discussion continued on the general feel in the community and the work to be done to implement the sales tax.

Director Shafer introduced the letter to owners included in the packet and asked for feedback. After reviewing the letter, the Board agreed to make one minor

R E C O R D  O F  P R O C E E D I N G S

Arrowhead Metropolitan District Board of Directors November 20, 2019 Meeting Minutes

change to item 1 and have the letter sent by AVA as soon as possible but separately from any other AVA communications. Director Shafer volunteered to oversee distribution of the letter. General discussion continued on communicating the election results and other District business to attendees at the AVA Annual meeting in December.

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 of the regular meeting on October 30, 2019, with the change that Director Svoboda attended in person and Director Riggio attended by phone.

Accounts Payable

Director Shafer reviewed the Accounts Payable list included in the packet. Mr. Marchetti reviewed the bond payments due at the end of the month explaining that they were the annual principal payments and half of the interest due for the year. Following discussion and 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. General discussion was had on:
• The Bond refunding was on schedule and would close December 9, 2019.
• Service/Operations Plan review – Director Roe is going to have the 2020 service/operations plan draft ready for review by the Board at the next meeting.
• Mr. Gallagher circulated the Traffic Study and reported there would be another committee meeting in January.
• Mr. Hensel confirmed that Ms. Guerriero would be presenting at the District’s January meeting.
• Sawatch Drive lighting – This would be addressed during the lighting study. Mr. Hensel reported that the lighting study has identified 21 lamp posts for which the District is responsible and the estimated replacement cost was $8,000 to $10,000 per post although no design has been finalized and the project is expected to last three to four years.

Operations
Update Mr. Hensel reviewed Arrowhead operations with the Board
• The water tank project is on-going with only internal work remaining which is expected to be completed before Thanksgiving.
• Director Howard has been working with Vail Resorts on a parking lot plan that goes into effect on December 7, 2019. Educational and communications information will be distributed to owners and guests regarding overnight parking in the lot to facilitate more efficient plowing of the lot. All parkers in the lot will be required to have a parking tag to identify any vehicles in the lot.
• Beaver Creek is opening early and the Village to Village bus will start early to coincide with the mountain opening. Carol Floyd will be sending out communications to all owners and residents.
• Operations is staffed, trained and on the winter schedule and the equipment is ready with the new spreader scheduled for installation. Road and parking lot plowing schedules and processes were discussed.

Financial Statements

Director Shafer and Mr. Marchetti reviewed the forecast and financial statements included in the packet noting that the 2020 budget reflected the projected sales tax revenue since the election passed. Mr. Marchetti reviewed the final 2019 forecast and contingency. Director Shafer reviewed the 2020 budget and capital items and discussion continued on the sales tax implementation process.

CD Renewal Rates

Ms. Johnston reviewed the CD rates included in the packet explaining that the current CD matures on December 16 so the rates and options may change slightly. Discussion continued on interest rates, and best term for the funds in the current economic environment. Following discussion, and by motion duly made and seconded, it was unanimously,

RESOLVED to approve reinvesting the maturing funds in a five-year term cd with an interest rate around 2.00% or higher

Bond Refunding

Mr. Marchetti confirmed that the meeting had been noticed for the Board to consider and approve issuance of new bonds. He also confirmed that he had distributed via email updated Bond Resolution documents, term sheet and savings calculation worksheet. Mr. Marchetti reviewed the Bond refinance background and reported that Chase issued an updated term sheet and that a lower interest rate than discussed at the late meeting was locked in with Option 4. The Bond documents are in process and are being reviewed by District General Counsel, Bond Counsel for the District and bank and others on the Bond team. Ken reviewed the bond parameters resolution and the savings calculation noting that the savings and change to taxable bonds was advantageous to the District. Following discussion, and upon motion duly made and seconded, it was unanimously

RESOLVED to approve the Resolution Authorizing the Issuance of the District’s General Obligation Refunding Bonds, Taxable Series 2019, in an amount not to exceed $2,100,000, and other parameters as included in the Resolution.

Discussion continued on the change in the interest rate and effect on the 2020 and future budgets based on the savings calculation and updated amortization schedule. Following discussion and upon motion duly made and seconded, it was unanimously

RESOLVED to approve an amendment to the 2020 budget to update the bond interest schedule and 2020 payment amount to $49,000.

Future Meetings

The Board cancelled the regular meeting on December 18, 2019, and confirmed that
the next regular meeting would be January 29, 2020, starting at 3:30 p.m.

UERWA Mr. Dreyer reported the following activity for the UERWA:
• The UERWA was working with CVC Club Residences on a cash in lieu of water rights agreement and educating owners on water use.
• The budget was approved at the November 21 meeting.
• There were no lead or copper leaching problems in the water supply at this time.

Ms. Johnston reported that she had not received meeting minutes from the Water Authority since September and would follow up with Ms. Hayes.

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 20th day of November, 2019.

Respectfully submitted,
Beth Johnston
Secretary for the Meeting