Minutes of the Regular Meeting Of the Board of Directors Arrowhead Metropolitan District November 28, 2018
A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on November 28, 2018, at 3:30 p.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 Shafer
- Thomas Svoboda
- Vincent Riggio
- Tom Howard
Also in attendance were:
- Jerry Hensel, Director of Resort Operations, Vail Resorts
- Ken Marchetti, Marchetti & Weaver, LLC (left at 4:30 pm)
- Beth Johnston, Marchetti & Weaver, LLC, recording secretary
- George Coleman, President of Arrowhead Vail Association
- Bill Roe, owner 107 Windermere Cir (via telephone)
- Dan Cudahy, McMahan and Associates, LLC (left at 3:45 pm)
Call To Order
The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on November 28, 2018, at 3:30 p.m. noting a quorum was present. No conflicts of interest were disclosed.
Consideration Of Agenda
Ms. Johnston confirmed that an updated agenda was emailed and distributed to meeting participants.
There was no public input.
Agreed Upon Procedures Audit Report
Director Shafer introduced Mr. Cudahy with McMahan and Associates and gave background of the special audit of Vail Resorts operations and transportation invoices and why it was requested. Mr. Cudahy reviewed the procedures used for the special audit and explained the results that were found. Mr. Cudahy reported that overall the results were reasonable with two exceptions which he explained in detail. Mr. Cudahy explained that one exception appeared to be an isolated incident where the maintenance facility rent was overcharged by $110 for one month. The maintenance facility rent charges for all other months were the correct amount. The second exception involved a vehicle lease amount of $104 per month that is being charged without complete documentation regarding the source of the amount and Mr. Cudahy suggested that it should be addressed. Mr. Hensel explained that the amount in question was for his vehicle’s lease and affected several other entities so documentation and justification would be provided by the next District meeting. General discussion followed and the Board decided the results were sufficient and that another audit would be done in the future.
Director Shafer reviewed the details from the October 30, 2018, special meeting, the reasons behind the Board’s decision to cancel the election and his frustration with not having the information sooner. Mr. Marchetti explained that the Supreme Court decision was made in June in another state (Wyoming) and Colorado did not announce any changes to sales tax collection until the end of September with communication being sent out in mid-October. Discussion continued on District counsel’s role in informing the District of changes with Mr. Marchetti offering that Mr. Collins’ firm was proactive in disseminating applicable information to the District. The Board requested that better, more timely communication be a priority in the future.
Director Shafer reviewed background of the reason for the sales tax election and inquired if the District would be better served by assessing a Lodging tax instead of a sales tax. Mr. Marchetti explained that per State Statute, special districts do not have authorization to levy a lodging tax but they are authorized to levy a sales tax on all items (but not only on selected items) as defined as taxable by the State.
Economic Development Update
Ms. Johnson confirmed that the Statement of Work (SOW), Master Services Agreement, and presentation for the economic development discussion was distributed via email to all meeting participants prior to the meeting. Director Shafer reviewed the master agreement, SOW and presentation, going over the amounts as detailed in the SOW. The Agreement will be made between AVA and the contractor and a separate letter agreement between the AVA and District will be prepared with the Districting pledging up to $20,000 in support.
Legal Expenses Reconciliation
Ms. Johnston explained that Director Shafer had requested a reconciliation of the legal expenses related to the special election. Ms. Johnston distributed the reconciliation to meeting participants. General discussion was had with the Board asking about election expenses in 2019 if they decided to do another sales tax election. Ms. Johnston explained that most of the election documents were completed and could potentially be used saving some costs as long as the election laws did not change. Director Shafer reported that Mr. Collins has waived all of his firm’s charges for the month of November in light of the election cancellation.
Ms. Johnston and Director Shafer reviewed the financial statements included in the packet. Ms. Johnston reported that the 2019 budget had been updated with the requested changes to transportation and sales tax and answered questions on the investment CDs and pooled cash accounts.
The Board reviewed the minutes included in the Board packet and, after review, by motion duly made and seconded, it was unanimously
RESOLVED to approve the October 24, 2018, Regular Meeting minutes as presented; and
FURTHER RESOLVED to approve the October 30, 2018, Special Meeting minutes as presented.
Ms. Johnston reviewed the insurance quote included in the packet for catastrophic coverage for the District’s guardrails and streetlights. After discussion on the cost for the coverage, fund balance, and District’s risk, the Board decided it did not need the coverage and could apply the saved premiums to the fund balance thereby self-insuring for those items.
Ms. Johnston distributed an updated Accounts Payable list to the meeting participants explaining that a Vail Resorts invoice was added for additional transportation costs incurred due to the early opening of Beaver Creek. The Board reviewed the updated Accounts Payable list and, following discussion, and by motion duly made and seconded, it was unanimously
RESOLVED to approve the updated accounts payable list as presented.
Mr. Hensel informed the Board that Arrowhead Property Management was not interested in cost sharing its evening shuttle with the District this year but may entertain the offer in future years once they understand the demand. General discussion continued around the need for an evening shuttle service in Arrowhead and what other communities were doing.
Mr. Hensel reported that he had spoken with his team and that were no anticipated changes from last year to the parking operations plan for the upcoming season. Mr. Hensel explained that employees would be stationed at the lot from 8 am until 1 pm and that no Arrowhead homeowners would be turned away. General discussion continued on how to monitor previous homeowner access to avoid abuse of the homeowner parking and other parking issues.
Mr. Hensel presented the Board with the second ponds and wetlands maintenance proposal from Solitude explaining that it came in at a higher cost than the proposal from Aqua Sierra. Following discussion and upon motion duly made and seconded, it was unanimously
RESOLVED to approve the Aqua Sierra pond and wetlands maintenance proposal for 2019.
Mr. Hensel reported that there was some confusion with dispatch at the new transportation app noting that people were requesting to go to the Seasons and dispatch was assuming the Seasons at Avon, where the system did not provide service. Mr. Hensel noted that dispatch was being trained to clarify to avoid confusion.
Mr. Hensel reported that Arrowhead Properties requested a reserve space in the Alpine Club parking circle next to the Slifer Management reserved spaces to be signed and posted with reserved parking only during their check-in hours. Mr. Hensel reviewed a letter sent to AVA regarding upgrades to the Arrowhead snowmaking and reported that Arrowhead was expected to open as scheduled on December 15.
The Board reviewed the current action log. Mr. Hensel reported that the lights for the tennis courts were ordered and should be installed the next week.
The Board cancelled the regular meeting scheduled for December 26, 2018. The Board confirmed the next regular meeting would be January 23, 2019, starting at 3:30 p.m. and requested that the May meeting be moved from May 22 to May 29.
Arrowhead at Vail Update
Mr. Coleman requested the District’s article for the winter newsletter going out in the next week or so. Director Shafer requested that Ms. Johnston send last year’s article to him for updating. Mr. Coleman reviewed items to be discussed at the next AVA meeting, including:
- The public safety complaint log was very useful and informative although there were still issues to be worked out.
- The pool committee found that costs were to be shared with other Arrowhead entities including Alpine Club. The Committee was firming up the budget and rules.
- Any 2018 budget surplus for AVA would be spent on trails in 2019.
- AVA instituted a policy that the immediate past president of the Association would stay on the Board for at least one year to aid with continuity.
- Director Riggio requested that the AVA look into upgrading the pool to saline.
The Board reviewed the minutes included in the packet.
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 28th day of November 2018.
Secretary for the Meeting