February 26, 2020 Board Minutes – Approved

A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on February 26, 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
• 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
• Randy Smith, President of Arrowhead at Vail Association (via
telephone)
• George Coleman, Arrowhead Resident
• Geoff Dreyer, UERWA representative
• Amy Vogt, Communications and Public Relations, ERWSD
• James Wilkins, Director of Finance, ERWSD

Call To Order: The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District
was called to order by Director Shafer on February 26, 2020, at 3:30 p.m. noting a
quorum was present. No conflicts of interest were disclosed.

Consideration Of Agenda:  There were no changes to the agenda.

ERWSD Presentation:   Mr. Wilkins and Ms. Vogt introduced themselves and explained the presentation was to review capital projects and necessary rate increases. Mr. Wilkens explained that infrastructure was being replaced to bring aging facilities up to current standards. Mr. Wilkens then reviewed the increasing operating costs to historical rates and the rate increases compared with rates from other local water
Districts. General discussion continued on the allocation of water and sewer rates and the Water and Sanitation District’s current debt. Mr. Wilkins then reviewed the Water Smart management tool available on the website.

Public Input: Mr. Coleman thanked the District Board for their work in the Arrowhead community.

UERWA Update:  Mr. Dreyer reviewed the minutes included in the packet highlighting the Avon Water Treatment facility upgrade, the Traer Creek tank update, Redistricting following census and the Water Authority’s water rights appraisal.

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 January 29, 2020 as presented.

Accounts Payable: Director Shafer and Ms. Johnston reviewed the Accounts Payable list included in the packet. Following discussion and by motion duly made and seconded, it was unanimously

> RESOLVED to approve the accounts payable list as presented.

 The Board reviewed the action list. General discussion was had on:
• Director Roe completed the Operations Plan for 2020 and Ms. Johnston will distribute to the Board for review and comment prior to the March meeting.
• Ms. Johnston gave an update on the May 5th election reporting that two self-nomination forms have been received and the deadline for submission is Friday February 28.
• Director Riggio reported that he will be meeting with Public Safety to finalize the cycling safety plan. The proposed final plan will be distributed to the Board prior to the March meeting for review and comment.

AVA Update:  Mr. Smith reviewed the following activity for Arrowhead at Vail Association noting that there was no meeting in January:

• Winter and summer Arrowhead maps for hiking and biking trails are still in development.
• The lighting study is progressing and it is anticipated that specifics on
costs and products for the District will be ready soon.
• There is rumor that the Tennessee Pass railway that runs through the valley may become active again. There was general discussion on impacts to the Arrowhead community.
• The Vail Recreation District is requesting that Arrowhead host a race in
their running series in the summer.
• Mr. Hensel updated the District on the current reported short-term rental
numbers that have fluctuated between 132 to 190 listings.

Transportation Reports: Mr. Hensel reviewed the Transportation report included in the Board packet noting the year over year ridership numbers. General discussion was had on AVA’s communication efforts and corresponding increase in ridership as well as the timeline for the 2020-2021 season contract.

Parking Lot Paving:
Project Mr. Hensel reviewed the background of the bid process for the Parking Lot Paving Project and the summary of bids included in the Board packet explaining that the District’s engineering firm Alpine Engineering, was handling the process. General discussion ensued on possibly postponing the project until 2021 to combine it with the Upper Crest Road paving project and save on mobilization costs. Mr. Hensel explained that Alpine Engineering was concerned about an area in the parking lot that may jeopardize the pavement integrity if the paving was delayed resulting in the need for greater subgrade work that could cancel out any potential savings of combining the projects. Mr. Hensel reported that there was the potential to negotiating mobilization savings if the District chose United for the project however, there was no way to determine how much savings could be realized.

Discussion continued on contacting another engineering firm for a second opinion. The Board tasked Mr. Hensel with determining the cost to repair the area in the parking lot so the full paving could be delayed until 2021 as well as the savings if the Parking Lot and Upper Cresta Road paving projects were combined. The Board tabled further discussion and review of the bids until the March meeting.

Highway 6 Crossing :Director Shafer reviewed the Highway 6 Crossing committee meeting. Director Shafer reported that the committee determined that this is a safety issue with three basic concerns identified that needed to be addressed and that a roundabout was the best solution to address all identified concerns. Director Shafer then reviewed other entities that could potentially assist with the construction costs estimated to be $1.3 to $1.5 million for a round-about. General discussion ensued on what was best for the Arrowhead community for safety and fiduciary goals given the primary goal of safety for Arrowhead pedestrians and cyclists did not necessarily require solving future traffic problems on Highway 6. The Board suggested that the committee move forward with contacting possible cost partners such as Eagle County and Edwards Metropolitan District to determine potential funds available.

Financial Statements: Mr. Marchetti reviewed the financial statements included in the packet.

Sales Tax Implementation: Ms. Johnston reviewed the sales tax implementation plan noting that the draft Resolution was included in the packet. General discussion continued on which businesses would receive notification and how deliveries into the District would be monitored.

Resolution Setting Initial Sales Tax: Ms. Johnston introduced the draft Resolution Setting Initial Sales Tax included in the packet. General discussion on the Resolution ensued on the resolution, the sales tax rate, and the mention of tax on marijuana. Following discussion, and upon motion duly made and seconded, it was unanimously
> RESOLVED to approve the Resolution Setting the Initial Sales Tax at 5%.

Future Meetings:  The Board confirmed that the next regular meeting would be March 25, 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 26th day of February, 2020.

Respectfully submitted,
Beth Johnston
Secretary for the Meeting