January 27, 2020 Board Minutes – Approved

A meeting of the Board of Directors of Arrowhead at Vail Association (the “Association”) was held on Monday, January 27, 2020. Board members present were Randy Smith, Diane Loosbrock, Mary Pat Rapp, Mark Noble, Tim Gropp, and George Bigley. Board member, Chad Hollingsworth, and property owner, George Coleman, attended via phone. Also present were Jerry Hensel, Association Manager, Koby Kenny, Director of Public Safety, Sid Schultz and Steve Nusbaum with Design Review Administration, Bob Shafer representing Arrowhead Metro District, Dan Gallagher, Ex Officio, and Carol Floyd, Secretary to the Meeting. The meeting was called to order at 9:15 a.m.

Discussion of Strategic Objectives and 2020 Tasks
The Board reviewed in detail and discussed the 2020 Objectives/Tasks and discussed assignments for each of the 24 Objectives for the year. It was noted that some of the Objectives would be completed in the current year and others would be initiated this year and have completion in subsequent years.

Public Comment
Bob Shafer spoke about challenges with transportation between December 26th and January 2nd. Ridership was up 10%, and there were fewer buses. 80% of people were picked up in 15 minutes or less. Learnings indicate increased capacity will be needed for that week next year. Better usage of the Village Connect app from the Alpine Club pick up could help the issue. Bob said the evening shuttle has had good participation with an average of 28 riders per night. Paul Gorbold is going to analyze ridership data to determine the number of shuttles needed to be most efficient. Mark Noble suggested adding Village-to-Village buses if the mountain opening is delayed in the future. Diane Loosbrock will provide Bob with dates of the summer Bravo events which AMD has agreed to provide shuttles. Tim Gropp, Diane Loosbrock, Randy Smith, and Jerry Hensel will form a Highway 6 Crossing committee along with a couple of Arrowhead Metro District (“AMD”) Board members. Bob said Beth Johnston has an implementation and communication plan for the new sales tax.

Design Review
Motion was made by George Bigley to re-appoint Chip Spratlen, David Cooper, Campbell Frey, Kathy Aalto, and Gail Gelfand to the Design Review Committee. Diane Loosbrock seconded the motion and it was unanimously approved.
Steve Nusbaum talked about strategies for improving communication in regard to a property owner’s responsibility if they damage a neighboring property or incur damage from an adjacent property during construction. He said mechanisms are in place related to the inspection process and compliance deposit regulations. There may be opportunity to add language to the contractor’s preconstruction meeting agenda and/or approval letters. Randy Smith added it is important that property owners know what is reasonable to expect from the Design Review Committee (“DRC”) staff. Steve welcomed input from the Board.

Public Safety
Koby Kenny referenced the Complaint Log noting the majority of complaints were regarding barking dogs and parking matters.

Committee Assignments
Randy Smith said committee members are a great source of Board candidates and promote community involvement. He noted the Finance Committee is in need of members. Diane Loosbrock suggested committee Chairs from last year who are no longer chairing those committees notify former members.

Operations: Randy Smith gave an update on the font solutions for branding. The alphabet is complete, and decisions on color are pending. George Bigley will seek guidance from Vail Resorts regarding trademark boundaries for the Arrowhead and Arrowhead Village logos. George said the purpose of the trademark is to prevent its use elsewhere and protect from adding other elements to the logo. Jerry Hensel said Kathy Aalto will evaluate landscaping throughout the community when the snow clears in the spring, and will bring recommendations to the Board. Mark Noble asked Jerry Hensel if neighboring communities have a branding statement. Jerry agreed to look into this.

Intercommunity Council Meeting Report: Randy Smith said the council is supportive of the direction the Board is heading in regard to a Highway 6 solution and image. Jerry Hensel stated the Vail Resorts IT Department is reaching out to Verizon to confirm their plan for a new cell tower.

Financials
Tim Gropp reported $70K in real estate transfer assessments (“RETA”) have been received year to date. All of the annual assessment invoices have gone out. On the Income Statement, Tim reviewed actuals as of December 31, 2019. RETA ended the year $468K ahead of budget bringing the entire surplus for the year to $602K. A couple of differences from what was reported at the annual meeting include short-term rental fees of $22K, slightly under projected. Trash came in $14K over budget.

Mountain Operations Update
Gary Shimanowitz, Vice President of Mountain Operations, spoke about the dynamics of opening the mountain. When asked where snowfall is measured, Gary answered the mid-mountain weather pod is above Spruce Saddle. He added that Arrowhead receives much less snow because of the lower altitude. Gary explained the sequence of Arrowhead opening on December 21st. The interconnect from Beaver Creek to Bachelor Gulch was not open until the previous week. Golden Bear was opened with natural snow over the holiday period. He noted natural snow can only be groomed once or twice a week. Snowmaking commenced after the holidays. Jerry Hensel commented on the importance of snowmaking to ensure the snow holds up for skiing into the spring. Gary said he has the ability to give a couple of days notice when snowmaking is to begin. Randy Smith suggested the Association send mountain updates to keep property owners informed and educated regarding the process. Bob Shafer also suggested Gary speak at one of the Alpine Club Wine and Cheese events. Gary said it benefits the resort to get Arrowhead open as early as possible because it improves the guest experience. Beaver Creek continues to lead the company in the net promoter score and guest experience/mountain attributes scores. That drives property values, repeat visitation, and demand for rentals. Dan Gallagher inquired about the possibility of pushing back the roped area behind the Alpine Club. Gary referenced safety measures that have been put in place and reported a positive trend with a significant decrease in the overall accident and collision rate. Randy requested a spring meeting with Gary to discuss potential mountain upgrades.

Old Business
Short-Term Rental Update: Jerry Hensel reported there are currently 155 units renting and 124 registered. There have been two formal complaints. Follow-up letters were sent to those who have been identified and are not in compliance. Four renters in Bachelor Springs have been reimbursed.
Highway 6 Project: Jerry Hensel said following the next AMD meeting, they will form a Highway 6 Committee to determine next step and bring recommendations to the Board.

Transportation Report: Jerry Hensel reported through January 15th there were 655 riders on the night shuttle. Discussion took place regarding the most effective way to share the shuttle schedule.
Arrowhead Map Update: Jerry Hensel presented the most current summer and winter versions of the Arrowhead map, noting they are nearly complete. He will forward the maps to the Board for their review and asked for their feedback as soon as possible. Jerry said he anticipates a final version within 30 days.

Trail Maintenance Update: Jerry Hensel stated the Mud Springs Trail is groomed every Friday. Snowshoe signage will be placed on the Ute Trail. Jerry explained there are sections of the Ute Trail that cannot be groomed. The groomers are looking at reconfiguring winter access points to allow for grooming two-thirds of the trail. Dan Gallagher mentioned summer maintenance on the Cherokee trail has not been adequate.

Marketing Report: Diane Loosbrock spoke about a meeting with the Associations new webmaster who is local. He had a couple of suggestions for additions to the website including a dynamic calendar and an electronic directory. Multiple calendar months would be available with the option of clicking on a specific event or activity to get greater detail. Diane shared that the expense for printing and mailing the directories is $7,650. Converting to an electronic directory would involve a one-time cost of $1,575. The directory would be password protected. George Bigley commented if there are features available to enhance the directory’s functionality, now would be the time to invest and set it up right. The Board was in support of moving forward with an on-line directory.

Motion was made by Mark Noble to move to an on-line directory for 2020. Mary Pat Rapp seconded the motion and it was unanimously approved.

Randy Smith said Fresh Tape Media will begin preparing quarterly analytical reports. He talked about a recent video post from the Beaver Creek ice rink. Diane Loosbrock added that Fresh Tape has prepared a preliminary branding book with scripts and information for use.

Annual Meeting Minutes Review
Randy Smith clarified that the Annual Meeting Minutes are not approved by the Board. They will be approved by the general membership at the next Annual Meeting. There were no suggested changes.

Annual Meeting – Future Dates and Summer Town Hall
Randy Smith talked about negative feedback received in regard to the date of this year’s Annual Meeting. He said over the past five years, the meeting has been held between Christmas and New Year’s. The difficulty is finding a location that can accommodate the group without displacing revenue. Randy proposed continuing to look for the most convenient venue to get the maximum participation. He further suggested holding a summer Town Hall meeting every year to offer those who miss the Annual Meeting an opportunity to engage. Dan Gallagher suggested streaming the Annual Meeting, citing poor sound quality on the conference call. It was noted four people attended this year’s meeting by conference call. Jerry Hensel and Carol Floyd will explore alternative options.

Officers Election Process
Randy Smith deferred the topic of Officers election process for discussion at a future meeting.

Village Fire Pit
Jerry Hensel informed the Board of interest in extending the fire pit hours of operation. The fire pit is currently managed by The Broken Arrow and operates from 8:00 am to 6:00 pm. Jerry voiced his opinion that extending hours of operation until 9:00 pm would be a great amenity for the community. This would require updates including a safety stopping mechanism to shut off automatically at a cost of approximately $2,000. The Association would be responsible for the cost of gas for the additional hours. George Bigley asked if approval would be needed from the Village at Arrowhead Association, and Jerry said yes. Maintenance of the area was discussed. Jerry noted, because of liquor laws, alcohol cannot be consumed at the fire pit before 6:00 p.m. when the restaurant is open. The Board was in agreement for Jerry to proceed with this initiative.

Board Meeting Schedule
Randy Smith referenced the proposed Board meeting schedule for 2020. Tim Gropp pointed out the gap between the March 9th and May 26th meetings, and said he will send information to the Board regarding first quarter financial results. The Board agreed to the schedule as presented.

Randy Smith moved to enter and Executive Session at 12:04 p.m. for the purpose of discussing a personnel matter.

Motion was made by George Bigley to exit the Executive Session and adjourn the meeting. Tim Gropp seconded the motion and the meeting was adjourned at 12:32 p.m.

Respectfully Submitted,
Carol Floyd, Secretary for the Meeting