Minutes of the Special Meeting Of the Board of Directors Arrowhead Metropolitan District January 6, 2017
A Special Meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on January 6, 2017, at 10:00 a.m., at the offices of Marchetti & Weaver, LLC, 28 Second Street, Suite 213, Edwards, Eagle County, Colorado, in accordance with the applicable statutes of the State of Colorado.
The following Directors were present and acting:
- Bob Rosen
- Chris Matlon
- Bob Shafer
- Dick Bourret
The following Directors were absent and excused:
- Thomas Svoboda
Also in attendance were:
- Paul Wisor, Kline Alvarado Veio, P.C. (via telephone)
- Jonathan Heroux, Piper Jaffray (via telephone)
- Ken Marchetti, Marchetti & Weaver, LLC
- Matt Jones, Marchetti & Weaver, LLC
Call To Order
The Special Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Chairman Matlon on January 6, 2017, at 10:00 a.m. noting a quorum was present.
Consideration of Changes To the Agenda
The Board would like to briefly review the status of the meeting with Vail Resorts regarding the Skier Parking Lot.
2017 Bond Refinance
Director Rosen reviewed the term sheet and gave a quick summary of what has transpired since the last board meeting in regards to the bond refinance. It was reported that the district locked a rate of 2.29% at the December 14th meeting and since then the rates have gone down slightly. Jonathan Heroux reported that the current publicly issued municipal bond rate for Arrowhead’s bonds would be 2.88% which represents a significant savings for the district on the rate we locked in versus the public rate. Mr. Heroux reviewed the financing and satisfactorily answered several questions from the Board on whether this deal qualifies as non-taxable and what could make it a taxable bond/loan. He further commented that becoming taxable is “remote at best”. Mr. Heroux responded to the Board’s questions and reported that most Districts would refinance debt as long as the net present value percentage savings was above 3.5% and currently the Districts net present value savings is approximately $610,000 or approximately 7.1% as compared to NPV savings of $637,854 calculated back in September when a refunding was first evaluated.
Executive Session By motion duly made and seconded it was unanimously
RESOLVED to enter into executive session at 10:35 a.m. pursuant to C.R.S. §24-6-402(4)(e), for the purpose of determining positions relative to matters that may be subject to negotiations, developing strategy for negotiations, and instructing negotiators.
The board adjourned from executive session at 11:00a.m.
Returning from executive session, the Board reported they weighed refunding now to lock in these savings against the potential savings if they wait to refund at a later date. The general consensus is that while no one can know where interest rates will go in the future, many qualified professionals have advised that interest rates are likely to rise over the short to mid-term. The Board decided that it was prudent for the District to complete the bond refunding notwithstanding the following factors: refunding debt would not be callable before its 2031 maturity as a result of which the Board was giving up the opportunity to refinance at a lower rate in the future: and there will be minimal savings, with the great majority of the savings attributable to the new debt maturing one year earlier then existing debt. Based on the information available at this time, the Board decided that it was in the best interest of the District to complete the bond refunding. After discussion and by motion duly made and seconded it was unanimously
RESOLVED to approve the amended and restated bond parameters resolution to refund the Series 2009 bonds, subject to clarification of the “taxable rate” in the event the bonds ever become taxable.
The Board would like to thank Director Rosen for the countless hours he has spent reviewing documents and working to get this bond refinance completed.
Parking Lot Parking Resolution
The Board discussed parking lot parking infractions (primarily non-Arrowhead people parking in spaces designated for Arrowhead property owners) and would like to have public safety personnel boot and fine any violators of the parking rules in the skier parking lot on their first violation.
After discussion and by motion duly made and seconded it was unanimously
RESOLVED direct Arrowhead public safety to boot and fine any violators of the parking rules in the skier parking lot on their first violation.
Parking Lot Parking Fees
Director Matlon reported that he hadn’t heard back from Tim Baker at Vail Resorts in regards to the District charging for parking for next winter. He would like to schedule a meeting before the regular meeting on January 25th with Vail Resorts. Mr. Jones will email around a few dates after the meeting to get something scheduled.
There being no further business to come before the Board, by motion duly made and seconded it was unanimously.
RESOLVED to adjourn the Special Meeting of the Arrowhead Metropolitan District Board of Directors this 6th day of January, 2016.
Secretary for the Meeting