Minutes of the Regular Meeting Of the Board of Directors Arrowhead Metropolitan District June 26, 2019
A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on June 26, 2019, at 3:30 p.m., at the offices of Marchetti & Weaver, LLC, 28 Second Street, Suite 211, Edwards, Eagle County, Colorado, in accordance with the applicable statutes of the State of Colorado.
The following Directors were present and acting:
- Bob Shafer
- Vincent Riggio (via telephone)
- Tom Howard (via telephone)
- Bill Roe
- Thomas Svoboda
Also in attendance were:
- Jerry Hensel, Director of Resort Operations, Vail Resorts
- Dan Gallagher, President Arrowhead at Vail Association
- Ken Marchetti, Marchetti & Weaver, LLC
- Beth Johnston, Marchetti & Weaver, LLC, recording secretary
- Geoff Dreyer, Upper Eagle Regional Water Authority
Call To Order
The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on June 26, 2019, 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.
There was no public input.
The Board reviewed the minutes included in the Board packet. After review, and by motion duly made and seconded, it was unanimously
RESOLVED to approve the May 29, 2019, Regular Meeting minutes as presented.
Director Shafer reviewed the Accounts Payable list included in the packet explaining that he and Director Riggio reviewed and approved the invoices. Mr. Hensel explained the charges incurred for the cracked drain pan at 310 Windermere Rd. Following discussion, and by motion duly made and seconded, it was unanimously
RESOLVED to approve the accounts payable list as presented.
Director Shafer reviewed the action list noting that several items were completed.
Arrowhead at Vail Update
Mr. Gallagher reported the following activity for the Arrowhead at Vail Association (AVA):
- The short-term rental regulations are complete and will be sent to owners for comment. A contract was signed with Host Compliance and they are reporting more units than early surveys indicated.
- The ice cream social was a success with good attendance.
- The first Thursday Afternoon Club is being held 6/27.
- A new village to village trail will be complete by Friday and another trail is being considered for fall.
- The lighting study first draft was received for review. The long-term project is expected to be done over the next three years.
- A landscaping architect study for a replacement plan is being considered, leading to a general discussion on design review fees and streamlining the application process.
- The initial rapid start to the social media campaigns has dropped off and AVA is encouraging more posting on the social media platforms.
- AVA is continuing to move towards electronic voting.
- The CCR access easement under the tunnel is no longer on the table so AVA is starting dialogue with CDOT for safer pedestrian access from Highway 6.
- AVA is reviewing its management agreements.
Mr. Hensel reported that he, Mr. Gorbold, and Director Howard met to discuss transportation options and that Director Howard would be reporting on their meeting later. Mr. Hensel presented the signed letter from AVA accepting financial responsibility for the Summer 2019 bus usage.
Parking and Roads
Ms. Johnston confirmed that the updated Capital Road Plan was distributed to meeting participants via email and also hardcopy at the meeting. Mr. Hensel reported that Alpine Engineering reviewed the 10-Year Capital Road Plan completed in 2018 and determined that there were no changes needed. Mr. Hensel reviewed the road patching work identified by Alpine Engineering and that an additional area identified along Riverdance Road would be included. Mr. Hensel reviewed the two patching bids noting that Alpine Engineering recommended Mountain Maintenance to complete the work since they use infrared patching. Mr. Hensel described the difference between regular patching and infrared patching and reported that the work had been started so it could be finished prior the Independence Day holiday. Mr. Hensel and Director Shafer would do a site visit once the road work and patching was completed. General discussion continued on the road study and road life.
Mr. Hensel reviewed the water tank project relaying that the water tank was full and painting continued on the exterior. The tank would be drained in the fall for the interior work to be completed. Mr. Hensel reported that the roads and cinders had been swept and the guardrails repaired as necessary. The new truck was on order and the old bus had been sold at auction.
Service/Operations Plan Review
Ms. Johnston confirmed that the Draft AMD 2019 Operations Plan was distributed to meeting participants via email and via hard copy. Director Roe reviewed the background of the service plan. Under counsel advisement, Director Roe and Mr. Marchetti recommended not formally amending the Service Plan but to produce a working operations plan that can be updated by the District annually. Director Roe reviewed the general design of the Operations Plan noting that it included all of the items originally identified in the Scope of Services Outline but in a different order. Director Roe distributed an AVA/District Summary of Services document and the Board discussed overlapping services and the ability to provide telephone service and how that may relate to the current cell service coverage issues. Director Roe shared his vision for the Operations Plan was to assist with the on-boarding of new directors and to provide a comprehensive document that the District could distribute to the public for increased understanding of the District’s and AVA’s roles. General discussion on the Plan continued. Director Roe reviewed the next steps and requested that comments and feedback on the Plan be sent so the draft could be updated prior to the next meeting.
Mr. Marchetti reviewed the Financial statements included in the packet noting that no major variations to the budget were anticipated so far.
Draft 2018 Audit
The audit committee, Directors Shafer and Riggio, stated that they had met with Dan Cudahy from McMahan and Associates to review the draft audit reporting that there were no issues found, internal controls were good, the District was well funded with a $2 million reserve, and that the net position improved, all indications that the District was in good financial shape. The audit committee requested verbiage be included about the Gallagher Amendment’s effect on the District and also about Vail Resorts audit done fall of 2018. These recommended changes have been incorporated into the audit report. Following discussion, and upon motion duly made and seconded, it was unanimously
RESOLVED to approve the Audited Financial Statements ending December 31, 2018 as presented in the packet.
Mr. Marchetti distributed an updated Request for Proposal (RFP) for Bond Counsel for the 2019 bond refunding explaining that it requested bond counsels to provide an opinion on refunding of the bonds. Mr. Marchetti reviewed the background on the outstanding bonds in relation to the roads and advised it was in the best interest of the District to obtain counsel that would give a determination that the refunding bonds could be tax-exempt if the roads were opened to the Arrowhead public but not necessarily the general public. Mr. Marchetti then reviewed the RFP for the banks that included taxable versus non-taxable options as well as callable options at various dates so that all of the road bonds could be wrapped into a single refunding in the future, if desired.
Mr. Marchetti reviewed the sales tax work sheets included in the packet noting that they had been updated from the previous year to include the current Assessed Valuation and additional taxable items such as online purchases and construction materials. General discussion was had, with the Board requesting the worksheets be updated to include different tax rates and mill levy rates. Discussion continued on how to present the sales tax to the community. Following discussion, the Board decided to schedule a special sales tax work session meeting for July 31, 2019, at 3:30 pm.
Online Meeting Notice Posting
Mr. Marchetti reviewed HB 19-1087 which goes into effect August 2, 2019, and allows Districts to post notice of meetings on their website, no longer requiring posting within the District. Following discussion, and upon motion duly made and seconded, it was unanimously
RESOLVED to approve the Resolution Authorizing Online Notice of Public Meetings.
Mr. Dreyer reviewed the minutes included in the packet, highlighting the restructuring update and its challenges. Mr. Dreyer also updated the Board on the Traer Creek Water Tank.
The Board confirmed the next regular meeting would be July 24, 2019, starting at 3:30 p.m. and that a special sales tax work session would be held July 31, 2019 starting at 3:30 p.m.
By motion duly made and seconded it was unanimously
RESOLVED to enter into executive session at 5:45 p.m. pursuant to C.R.S. §24-6-402(4)(e), 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 5:53 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 June, 2019.
Secretary for the Meeting