January 29, 2020 minutes

Record of Proceedings

A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on January 29, 2020, 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
• 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 (via
telephone)
• Randy Smith, President of Arrowhead at Vail Association

Call To Order: The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on January 29, 2020, at 3:30 p.m. noting a quorum was present. No conflicts of interest were disclosed.

Consideration Of Agenda: Director Roe requested that the Operations Plan discussion be moved up on the agenda.

Public Input: There was no public input.

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 November 20, 2019 as presented.

Accounts Payable: Director Shafer and Ms. Johnston reviewed the Accounts Payable list included in the packet which included all payables since November as well as the remaining 2019 capital purchases such as the bus. Ms. Johnston confirmed that all known 2019 invoices have been received and entered. 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:
• Ms. Guerriero would attend the March or April meeting and Mr. Shimanowitz may join as well.
• Remove Guardrail Stain from long term items for 2020 and add to 2021 budget.
• Remove the Sawatch Drive lighting and add AVA Lighting Study

Director Shafer introduced the 2020 Priorities Discussion outline included in the packet explaining that it was a general overview of non-routine items on which the Board is working. Director Shafer reviewed each project and general discussion was had by the group. Director Shafer referred to the email sent to the Board in mid-January regarding the transportation meeting and indicated that more work was needed to be sure staffing levels were adequate for future years. Discussion moved to Directors Shafer and Riggio volunteering to attend the Route 6 crossing working committee meetings, Director Roe has volunteered for the lighting study committee, and Director Riggio will continue to work on the cycling safety plan. Mr. Marchetti suggested that the District include Edwards Metropolitan District in any discussions about the Route 6 crossing.

2020 Operations Plan:  Director Roe reviewed the background for creating the Operations Plan to supplement the AMD Service Plan. Director Roe reviewed the plan and some items that still required some updates. Director Roe reviewed section VI and requested the other attendees review the list to be sure nothing was missed. General discussion continued on suggestions for the Plan and gathering the remaining the exhibit items.

AVA Update: Mr. Smith reviewed the following activity for Arrowhead at Vail Association:
• AVA has set their priorities and objectives for 2020
• The Association ended 2019 in a good financial position due to good
budget adherence and increased revenue, mostly from transfer tax
• Website changes are in process and include increasing security and
moving more information to the website, such as the owner directory
• The Social Media program had great results for 2019 and the expectations
for 2020 are even higher with increased traffic and better reporting and demographics
• AVA is increasing interactions with the Vail community with events suchas the Vail Grail.

Operations Update:  Mr. Hensel reviewed the two transportation schedules included in the packet noting on the Ridership report that the evening shuttles have about 20 people per night and the Vail Express buses had good ridership so far. The second report included the actual rides noting that the Village Connect door to door service is about 10% over 2018. General discussion continued on cell phone service and how to increase evening service ridership.

Director Shafer reviewed the meeting that he had with Mr. Hensel and Mr. Gorbold regarding the service issues around the 2019 holiday season. It was determined that buses were short throughout the two-week busy period due to Vail Resorts being short staffed, increased ridership demand, and buses not being able to be run as scheduled. Since the meeting, additional staff was hired so all buses should be run per the service agreement for the remainder of the season. After reviewing the service shortages, around $16,000 was billed for transportation service not provided and Vail Resorts has agreed to reimburse the District 60% of the service shortage. General discussion continued on providing the level of service as agreed and how to be sure it is achieved in the future.

Mr. Hensel reported that the roads are in good shape and crack sealing will be done in the spring. The parking lot paving project Invitation to Bid has been sent out and four vendors are expected to submit bids. The bids are expected to be presented for approval by the Board at the February 26 meeting. Completion of the project is expected to be the beginning of May. General discussion continued on the project scope, bid process, project timeline, alternative parking options while the work was being done and cost share options. Director Riggio asked if the Parking Lot and Upper Cresta Road paving could both be done in 2021 and if there would be any material savings. Jerry is to research this and report to the Board at the February meeting.

Discussion moved to the quality of snow removal this season and the changes that were made to decrease costs. Mr. Hensel reported that some weeks there was overtime required and cautioned that a big snow cycle could present some challenges in keeping up. Mr. Hensel then reviewed the progress with registering short-term rentals in Arrowhead thorough Host Compliance noting that they expected 90% of the units to be identified and registered by summer.

Financial Statements: Mr. Marchetti reviewed the financial statements included in the packet reporting that expenses for year end were under the 2019 forecast and the bond closing went as expected. General discussion followed on where the evening shuttle service had been budgeted for 2020.

Sales Tax Implementation: Director Shafer reviewed the Sales Tax Implementation Plan included in the packet. General discussion continued on timing and intended recipients of notifications of the sales tax. Mr. Hensel suggested that Host Compliance may be able to assist in notifying registered short-term rentals of the sales tax.

Future Meetings:  The Board confirmed that the next regular meeting would be February 26, 2020,
starting at 3:30 p.m.

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 29th day of January, 2020.
Respectfully submitted,
Beth Johnston
Secretary for the Meeting