May 27, 2020 Board Minutes

A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County,
Colorado, was held on May 27, 2020 at 3:30 p.m. via electronic Zoom meeting https://us04web.zoom.us/j/662376387, Phone Only US 1 253 215 8782, Meeting ID: 662 376 387,

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
• Thomas Howard

The following Director was absent:
• Vincent Riggio

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
• Geoff Dreyer, UERWA representative
• Tom Svoboda, Arrowhead owner and resident, appointed to the Board during meeting
• George Coleman, Arrowhead owner and resident

Call To Order: The regular meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on May 27, 2020, at 3:33 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.

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 special meeting on April 22,
2020 with one change as submitted by Mr. Dreyer.

Accounts:
Payable Director Shafer and Ms. Johnston reviewed the Accounts Payable list included in
the packet noting that the June 1 bond interest payments were included. General
discussion was had on the Vail Resorts transportation invoices submitted for March
and April. Following discussion and by motion duly made and seconded, it was unanimously

RESOLVED to approve the accounts payable list as presented.

Host Compliance
Agreement Ms. Johnston review the draft Agreement to Pay letter included in the packet
explaining that the letter was based on terms discussed by Director Shafer and Mr. Smith. Mr. Hensel noted that the final amounts for the modules were slightly different and the renewal was in process of being finalized. The Board requested that Ms. Johnston update the amounts and send the letter for signature. Following discussion, and upon motion duly made and seconded, it was unanimously

RESOLVED to approve the Agreement to Pay Host Compliance Fees letter between the District and
Arrowhead at Vail Association, subject to the final amounts of the renewal.

Transportation:
Proposal Director Shafer reviewed the Proposed Amendment to the Transportation Agreement for suspended service in March and April. Director Shafer conveyed that he had completed a thorough audit of service hours which resulted in additional credit to the District. The Board inquired on the adjustment for the December hours and Mr. Hensel confirmed that credit for December would be applied to summer transportation service hours, if any, or next season’s agreement. General discussion continued on summer event status and potential reductions in summer service due to cancelled events due to the pandemic.

Action List The Board reviewed the action list. General discussion was had on:
• Ms. Guerriero would be invited to attend June meeting.
• Mr. Hensel reported that light posts being considered by the Lighting Committee would be
installed along the Seasons on Sawatch Drive over the next couple months.
• Mr. Hensel reported that Eagle County was ok with Arrowhead installing doggie waste stations
along the recreation path. Mr. Smith said that AVA would install and maintain two stations and the
District agreed to split the cost.
• Cresta Road Agreement was tabled until such a time as Director Riggio can participate in the
discussion.

UERWA Update: Mr. Dreyer reviewed the April minutes:
• The late fee waiver and other assistance put in place in response to COVID-19 was extended.
• Operations were centered around pandemic response including preparing backup and processes for  essential personnel.
• Avon Waste Water Treatment Facility project is using a Construction Manager at Risk (CMAR).
• Glenn Porzak is making sure that water rights for the Authority are being preserved in the Pando Feeder and Eagle Park Reservoir cases.

UERWA Board: Appointment Director Shafer nominated Mr. Dreyer to continue representing Arrowhead
Metropolitan District on the Upper Eagle Regional Water Authority citing his extensive knowledge on
the issues. Upon motion duly made and seconded, it was unanimously

RESOLVED to appoint Geoff Dreyer as Designated Representative on the Upper Eagle Regional Water
Authority Board through May 2022.

AVA Update: Mr. Smith reviewed the following activity for Arrowhead at Vail Association:
• A letter on the financial and summer effects from COVID-19 was being sent to owners with operation and health guidance for the community.
• Newly adopted vision and mission statements and a new brand manual are available on the website.
• Real estate activity is starting to come back, including in Arrowhead.

Operations Report: Mr. Hensel reported to the Board:
• The Parking Lot Paving project is complete and came in on time and under budget. The paving
is expected to last 15 years. Positive feedback has been received from the community and CCR.
• Alpine Engineering inspected the roads and identified 9 sections needing attention. Some
changes were made to the 10-year capital plan, including Riverdance Road being moved up from 2023
to 2022. General discussion was had on the suggested repairs and available budget. The Board requested Mr. Hensel have all of the suggested repairs completed during the summer.
• The Riverdance pond circulation pump needs repaired. A backup pump needs to be ordered at an
estimated cost of $10,000. The last pump was replaced in 2013. The Board asked Mr. Hensel to move
forward with the pump replacement.
• Spring cinder cleanup was in progress. AVA was starting summer painting including updating
the colors from green to black.
• Traffic through the front gate for April was 50% of last year. Public Safety still has
limited staff.
• Vail Resorts is slowly bringing employees back and following all health directives for
employees. Restaurants were expected to open June 26 and the lifts would open beginning of July
coinciding with the move to Eagle County’s black diamond status.

Highway 6 Crossing:  Director Shafer reviewed the potential roundabout on Highway 6 at the main entrance to Arrowhead to enhance pedestrian and vehicular safety, ingress and egress and the request for Edwards Metro District to participate in funding this roundabout. Director Shafer reported that an Edwards Metropolitan District Board member sent an email to some Arrowhead residents indicating that she is not supportive of Edwards Metro participating in funding this roundabout. This item was pulled from the Edwards Metro meeting agenda while additional information is being gathered. The Board requested that Director Shafer and Mr. Hensel move forward with planning for the project.

Bike Safety: General discussion commenced on the direction the bike safety plan was taking and if the District was responsible for addressing the issue. It was agreed that AVA was responsible for public safety and gate security in Arrowhead so they should be responsible for developing the safety plan. Mr. Smith reported that AVA has a working group developing Rules and Regulations for Arrowhead and the Mountain trails which will be shared with the District once they are more complete. The Board decided to table this matter pending receipt of further information from AVA.

Financial Statements:  Mr. Marchetti reviewed the financial statements included in the packet. There was a general discussion on projected sales tax revenue and Mr. Marchetti reviewed the Long-Range Plan included in the packet recapping that the sales tax revenue would offset the mill levy decrease as well as anticipated reductions to the Residential Assessment Rate.

Draft 2019 Audit:  Mr. Marchetti reviewed the draft audit included in the board packet. Directors
Shafer and Riggio met with Mr. Cudahy from McMahan and Associates who reported that the District is well run, received a clean audit opinion and there were no issues found. Following discussion and upon motion duly made and seconded, it was unanimously

RESOLVED to approve the 2019 Audited Financial Statements as presented.

Sales Tax Implementation:Ms. Johnston reviewed the sales tax implementation plan and stated that first notices had been sent. Ms. Johnston also reported that with Mr. Hensel’s assistance notices were being delivered by Gate Security to any business coming into Arrowhead and by AVA Design Review upon approval of any projects. The Board requested that second notice mailings be sent to identified short term rentals and businesses. The Board also requested that specific businesses outside of Arrowhead receive notice of the sales tax.

Board Director Shafer nominated Mr. Thomas Svoboda to continue his service and fill the vacant Board seat with term expiring May 2023 following the May 5, 2020 election. Following discussion and upon motion duly made and seconded, it was unanimously

RESOLVED to appoint Thomas Svoboda to the Arrowhead Board of Directors until the next election in
May 2022.

Following discussion, and by motion duly made and seconded, it was unanimously

RESOLVED to elect the following officers: Robert Shafer President/Chairman Thomas
Svoboda Secretary William Roe TreasurerVincent Riggio Asst Secretary/Asst Treasurer Thomas Howard Asst Secretary/AsstTreasurer

Future Meetings:  The Board confirmed that the next regular meeting would be June 24, 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 27th day of May, 2020.

Respectfully submitted,

Beth Johnston
Secretary for the Meeting