JULY 27, 2020 BOARD MINUTES

Minutes of the Arrowhead at Vail Association Board of Directors Meeting held July 27, 2020
via Videoconference

A meeting of the Board of Directors of Arrowhead at Vail Association (the “Association”) was held on Monday, July 27, 2020 via videoconference. Board members present were Randy Smith, Diane Loosbrock, Mary Pat Rapp, Mark Noble, Tim Gropp, and Chad Hollingsworth. Also present were Jerry Hensel, Association Manager, Steve Nusbaum, Sr. Manager of Design Review Administration, Sid Schultz with Design Review Administration, Koby Kenny, Director of Public Safety, Dan Gallagher, Ex Officio, Kevin Hopkins, Financial Analyst, George Coleman and Bob Moroney, property owners, Bob Shafer, representing Arrowhead Metro District, and Carol Floyd, Secretary for the Meeting. The meeting was called to order at 10:03 a.m.

Public Comment
Bob Shafer spoke about a number of road repairs that have been completed this summer. Arrowhead Metro District (“AMD”) also repaved the sidewalk along Arrowhead Drive from the security gate to the Pinions. A meeting was held with the consultant for the Highway 6 project, three CDOT representatives, and an Eagle County representative. Although CDOT cannot make a decision on the project, they will review the traffic study and make recommendations by mid-September. Eagle County indicated support for the project noting current budget constraints. Bob said the cost estimate for a two-lane roundabout is approximately $2M, would require joint funding, and would not commence until 2022. Negotiations will continue with the Edwards Metro District Board. Diane Loosbrock mentioned a couple of close encounters that have occurred between carts and pedestrians within the cart path tunnel. Randy Smith stated the initial roundabout landscaping and landscape maintenance would be the responsibility of the Association, and will go into financial planning as capital and operating expense.

Design Review
Sid Schultz updated the Board regarding unapproved work in progress at 201 Aspen Meadow Drive following issuance of a cease work order on May 11th. Sid asked for the Board’s approval to issue a second violation and fine for noncompliance. Sid said they are on the agenda to present modifications at next week’s Design Review Committee (“DRC”) meeting. The Board was in support of DRC proceeding with appropriate enforcement action. Discussion took place in regard to additional remedies. Sid explained DRC’s new process to expedite color change approvals. Once a majority of DRC Board members approve a color, it can be staff approved. Sid requested that a communication be sent to property owners in regard to current drought conditions.

Public Safety
Koby Kenny said Public Safety’s limited staff has been extremely busy with property owners, guests, and contractors.
Koby has been working with the team on expectations and perceptions, and asked that he be notified if any issues arise. He asked for feedback on desired changes to the Public Safety reports. Discussion took place regarding a certain contractor’s disrespectful behavior toward homeowners. Koby said Public Safety is on alert, and has reached out to the Sheriff concerning this individual. Randy relayed comments he has received regarding speeding on Arrowhead Drive. Jerry Hensel will coordinate an additional speed warning sign per direction from the AMD Board. A new speed bump was recently installed in the exit lane near the security gate to reduce speed for Public Safety staff and the cart path crossing.

Committee Reports

Operations:
Summer Maintenance: Jerry Hensel gave an update on summer maintenance. The team is nearly finished with the gate entries, and will begin painting the regulatory sign posts followed by directional sign posts. Street signs for the pilasters are in and will be installed. Randy Smith noted the work is being done by existing staff and was not contracted out, with no incremental cost to the community.

Lighting – Sawatch Proposal: Jerry Hensel spoke about a less expensive light pole option suggested by Innovative
Lighting Consultants. He asked the Board for permission to purchase one light pole to place between the Seasons and Country Club of the Rockies where there is currently a dark spot. The community could then provide feedback for when the lighting project resumes in the future. Jerry estimated the cost to be $10K for the light, base installation, and power connection. Randy asked if the location of this light pole would shine light into any of the residences along Sawatch Drive, and Jerry answered it would not.

Motion was made by Diane Loosbrock to allocate up to $10,000 for the purchase and installation of a sample light post on Sawatch Drive. Tim Gropp seconded the motion and it was unanimously approved.

Vail Honeywagon Proposal: Jerry Hensel informed the Board of two recycling audits which took place on March 15th and July 15th, where 9/10 of a ton and 5 tons were collected, respectively. Jerry said Vail Honeywagon has offered to go to single-stream recycling for an additional $1.00 per month, per property. This pricing would be in effect for the balance of the current contract. Honeywagon will replace existing recycle containers with a 96-gallon container at no cost to the Association, and the pickup schedule will remain the same. The annual expense for trash would increase by $10K. Randy Smith noted the Association would incur $4,000 in expense for this service for the remainder of this year.

Diane Loosbrock moved to approve the addition of single-stream recycling to the current Vail Honeywagon contract at a cost of $1.00 per month, per property. Mark Noble seconded the motion and it was unanimously approved.

HOA Presidents: Mary Pat Rapp said the next meeting is scheduled for August 3rd. Randy Smith asked the Board to send Mary Pat any thoughts or messages they would like communicated to the HOA Presidents.

Strategic Planning: Mark Noble referenced a one page summary included in the Board package showing the strategic objectives to be implemented in 2021, noting three main components including marketing and communications, lighting, and a new trail. Mark will provide a plan through 2025 at next month’s meeting. Randy Smith noted the plan for 2021 also includes funds for maintenance of trails that are the responsibility of Arrowhead. He asked the Board to review their areas of responsibility to ensure key aspects for next year are captured. Mark requested Board members call or email him with comments.

Marketing and Communications: Diane Loosbrock explained the former consultant she had been working with for communications has resigned because of other obligations. Fresh Tape has proposed creating a monthly newsletter and maintaining the website. Randy Smith and Diane will determine what services are needed and provide this information to Tim Gropp and Kevin Hopkins for budgeting purposes. Diane asked the Board for topics to be included in the next newsletter. She remarked about the large turnout for Beach Blanket Bingo and gave accolades to George Coleman who was the MC. Randy Smith added that everyone followed social distancing and mask mandate protocols, and were well behaved.

Hiking: Mary Pat Rapp talked about the committee’s priority for a new trail through Cresta Glade for summer hiking andsnowshoeing in the winter, similar to Berry Picker trail on Vail Mountain. She said a budget is needed for trail maintenance because it has been challenging to recruit volunteers for the Adopt-A-Trail (“AAT”) program. She has requested $10K for summer and winter maintenance, and trail signage. Jerry Hensel explained Vail Resorts did not have staff to do spring trail maintenance because of the pandemic, but intends to assist in the future. He asked the committee to put together a plan with their expectations for review with the trail crew. The trail crew can then determine what they are able to take care of and what will need to be contracted out. Randy Smith stressed the importance of accomplishing this plan before Vail Resorts finalizes their budgets. He clarified maintenance of the Navaho and Cherokee trails are the responsibility of the Association. Dan Gallagher asked if the Director of AAT can park in Arrowhead Circle to bring tools to the trail, and Koby Kenny agreed to arrange for a parking tag. Mary Pat conveyed safety concerns on the Ute and Apache spur trails. She said one solution the committee has discussed is limiting bike traffic to uphill only. Koby Kenny said he is a proponent of directional bike trails. He suggested the Apache trail be designated for downhill bike traffic. Dan Gallagher mentioned another option to consider by assigning alternate days for uphill and downhill traffic, noting this has been successful in the Front Range. Randy asked Mary Pat to work with Jerry and Koby on a solution and associated signage. Jerry will involve Vail Resorts before a decision is made. Diane Loosbrock said it would be helpful to include this information on the neighborhood map.

Nominating: Diane Loosbrock reported there has been one self-nomination, two people suggested by Board members, and one additional potential candidate. Randy Smith noted they are looking for someone with a financial background and skill set to fill Tim Gropp’s vacancy at the end of his term.

Financials
Kevin Hopkins informed the Board he is meeting with the President of Alpine Bank tomorrow to go over product and process for potentially moving banking services to their bank. He noted account descriptions currently listed on the Balance Sheet will look different following the transfer. Eight homeowners have paid their annual assessments over May and June. On the Income Statement, in regard to Real Estate Transfer Assessments (“RETA”), Kevin reported $170K of the difference between the forecast and actuals has closed and will be deposited at the end of June. Based on what has already closed and is currently pending in July, the forecast is presumed accurate. Kevin said most expense variances are related to timing. With expense savings and an increase in the RETA forecast, the Association is on track to exceed budget for the fiscal year. Tim Gropp pointed out the RETA forecast is based on real estate contracts in the pipeline. He noted additional expense commitments made today for lighting and single-steam recycling to equal $14K. For any further desired improvement projects this year, such as trail maintenance, Tim requested the scope be brought forward for discussion. He added that funds remain earmarked for one Thursday Afternoon Club. The challenge of staffing and social distancing was discussed and led to the Board’s decision to redirect those funds to other community activities. Tim asked for the Board’s opinion in regard to instituting a smaller, more regular, annual assessment increase. Diane Loosbrock said she will be including information in future newsletters explaining what the Association does for property owners. The importance of communicating what the Association is looking to accomplish going forward was discussed.

Old Business

Tennis Center: Jerry Hensel said he is in negotiations with Cliff Drysdale regarding a partial reimbursement for not having a qualified tennis pro this season. Jerry received the Boards approval to post signage at the Tennis Center prohibiting dogs on the courts. Diane Loosbrock relayed concern about maintenance near the Tennis Center. Jerry said he has spoken with the maintenance crew on this matter and expects to see improvement.

Short-term Rental: Jerry Hensel reported the contract with Granicus, f/k/a Host Compliance, has been renewed for one year. Rental licenses will expire October 1st. Renewal notices will be sent in late August or early September.

Arrowhead Map Update: Jerry Hensel estimated the Arrowhead map is 30 to 45 days from being finalized. He and Diane Loosbrock have been working on content and formatting. Jerry has requested uphill information from Gary Shimanowitz. Jerry asked the Board to review the map on the website to ensure everything necessary is included.

Arrowhead Bicycle Safety Policy and Signage: Randy Smith noted 13 comments have been received and shared with the Board in regard to the proposed regulation. After the August 10th deadline, a work group will debate and discuss the comments received and come back to the Board with any suggested changes to the resolution. Jerry Hensel said signage with bicycle rules has been installed at the parking lot and Cresta gate.

Summer Town Hall Meeting: Randy Smith shared his thoughts in regard to the value of holding a virtual Town Hall meeting, with all Board members presenting for 5 to 7 minutes on their topics of responsibility. All Board members were in agreement. Randy will work with everyone to set a date.

TVC Contract: Randy Smith announced the management agreement between the Association and The Vail Corporation has been signed and duly recorded. Tim Gropp moved to enter an Executive Session at 11:50 a.m. to review homeowner issues and strategic options. Mark Noble seconded the motion and the Board entered Executive Session.

Tim Gropp moved to exit the Executive Session and adjourn the regular meeting. Diane Loosbrock seconded the motion and the meeting was adjourned at 12:34 p.m.

Respectfully submitted,
Carol Floyd
Secretary for the Meeting