Minutes of the Regular Meeting Of the Board of Directors Arrowhead Metropolitan District October 30, 2019
A regular meeting of the Board of Directors of the Arrowhead Metropolitan District, Eagle County, Colorado, was held on October 30, 2019, at 3:30 p.m., in the conference room of Marchetti & Weaver, LLC, 28 Seconds St, Suite 213, Edwards, 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 (via telephone)
- Thomas Howard
- Tom Svoboda
- Vincent Riggio (via telephone)
Also in attendance were:
- Jerry Hensel, Director of Resort Operations, Vail Resorts
- Paul Gorbold, Transportation Director, Vail Resorts
- Randy Smith, representative Arrowhead at Vail Association (via telephone)
- Ken Marchetti, Marchetti & Weaver, LLC
- Beth Johnston, Marchetti & Weaver, LLC, recording secretary
Call To Order The Regular Meeting of the Board of Directors of Arrowhead Metropolitan District was called to order by Director Shafer on October 30, 2019, at 3:35 p.m. noting a quorum was present. No conflicts of interest were disclosed.
Consideration Of Agenda There were no changes to the agenda. Ms. Johnston explained that several packet items had been received or updated since the original distribution of the packet so an addition to the packet was prepared. Ms. Johnston confirmed that the packet addition was distributed via email as well as via hard copy to meeting participants.
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 regular meeting on September 25, 2019.
Accounts Payable Director Shafer reviewed the Accounts Payable list included in the packet and, following discussion and by motion duly made and seconded, it was unanimously
RESOLVED to approve the accounts payable list as presented.
Transportation Agreements Paul Gorbold reviewed the transportation agreements included in the packet pointing out changes from the previous season including an extra Tuesday Vail shuttle and additional evening service. Director Howard confirmed that six buses would be available for use for the 2019-2020 season but the oldest bus would be sold in spring 2020 bringing the fleet to five buses for 2020-2021. Director Shafer reviewed the dates in Exhibit A explaining that some of them were inconsistent and suggested alternative language to avoid incorrect dates in the future. General discussion continued on the added evening service scheduled to run between Arrowhead and Beaver Creek and how the service would work. Additional discussion ensued on communication and promotion of the transportation options to the Arrowhead community. Following discussion, and upon motion duly made and seconded, it was unanimously,
RESOLVED to approve the transportation Agreement with Vail Resorts for the Arrowhead shuttle subject to correction of the dates in Exhibit A; and;
FURTHER RESOLVED to approve the Intervillage Transportation System Agreement as included in the packet.
Action List The Board reviewed the action list.
Arrowhead at Vail Update Mr. Smith reported the following activity for the Arrowhead at Vail Association (AVA):
- The lighting study is moving forward
- So far, about 100 licenses for short term licenses have been issued through Host Compliance. They are still within the 30-day grace period for registering.
- Social media marketing has been slow during the off season but is expected to pick up with the recent snow storms. They are expecting to integrate skier code and safety education with the social media marketing.
- Two candidates will be taking seats on the AVA board at the Annual meeting in January.
Highway 6 Pedestrian Alternatives Director Shafer gave background on the meeting to discuss options for pedestrians and bicyclists to safely cross Highway 6. Five crossing alternatives were identified: a roundabout, a sidewalk to Miller Ranch light and crosswalk, a bridge, a tunnel and widening the CCR tunnel. Mr. Hensel obtained preliminary cost estimates for each option from Alpine Engineering. General discussion followed on the advantages and disadvantages, cost, and anticipated use of each option. The Board decided that additional input from the residents, county, and state was required to assist in determining the best and most affordable option for Arrowhead. Discussion continued on next steps and the need to identify what the crossing is supposed to solve. No action was taken and the issue was tabled for dissuasion at a later date.
Financial Statements Director Shafer and Mr. Marchetti reviewed the forecast and financial statements included in the packet noting the fund balances projected for each budget scenario. Discussion on operating and capital expenses continued.
2020 Budget Director Shafer reported on the budget committee work session in early October stating that the budget was reviewed line by line. Director Shafer than reviewed the 2020 Budget Key Points and Discussion sheet that was included in the packet. General discussion followed on budget line items amounts and reasoning.
Mr. Marchetti stated the public hearing to adopt the 2020 Budget had been continued from the September 25, 2019 meeting, and opened the meeting for public comment and discussion. The Board reviewed both preliminary budgets included in the packet, one including sales tax revenue if Ballot Issue A passed and another with a higher mill levy rate if it did not pass. Mr. Hensel reviewed the updated parking lot overlay estimate provided by Alpine Engineering that estimated a cost increase of $12,000. There being no further input, the budget hearing was closed. Upon motion duly made and seconded, it was unanimously
RESOLVED to approve the Resolutions to Adopt the 2020 Budget as presented but with the Parking lot overlay increased to $173,000, Sales Tax Revenue included and a 17 mill levy if Ballot Issue A is passed or 18.5 mill levy and no sales tax if Ballot Issue A fails, and other minor adjustments that may occur; and
FURTHER RESOLVED to approve the Resolution to set the Mill Levy at 18.50 with 10.074 mills for operations and 8.426 mills for debt service if Ballot Issue A does not pass on November 5, 2019 or to set the Mill Levy at 17.00 with 10.074 mills for operations and 6.926 mills for debt service if Ballot Issue A does pass at the November 5, 2019 election; and
FURTHER RESOLVED to approve the Resolution to Appropriate Sums of Money for spending in 2020.
Bond Refunding Mr. Marchetti updated the board on the bond refunding progress noting that the interest rates had risen slightly. Mr. Marchetti reviewed the revised Term Sheet Addendum from Chase and reviewed each of the options presented. Following discussion, and upon motion duly made and seconded, it was unanimously
RESOLVED to approve Option 4 from the JPMorgan Chase Term sheet which permits option redemption of the bonds subsequent to December 1, 2027; and
FURTHER RESOLVED to approve Revised Term Sheet with the caveat that the interest rate be adjusted to reflect any movement resulting from the October 30, 2019, Federal Open Market Committee lowering of the Fed Rate; and
FURTHER RESOLVED to authorize the Term Sheet to be executed and the bond team to proceed with preparation of bond documents.
Mr. Marchetti reviewed the updated Bond Counsel engagement letter with the Board noting that Chase required the District to have the documents drawn up by the District’s counsel for review by the Bank’s counsel. Following discussion and upon motion duly made and seconded, it was unanimously
RESOLVED to approve the Bond Counsel Services Engagement letter from Dinsmore & Shohl, LLP.
Parking Agreement with CCR Ms. Johnston reviewed the Parking Lot costs and Agreement renewal with Country Club of the Rockies explaining that the Agreement called for the District to provide actual costs for the past three years to determine the new Assessment schedule for the next 10 years. General discussion on the renewal terms and options and how the costs were determined continued. Following discussion and review, the Board acknowledged the renewal of the agreement through 2029 and approved the new fee schedule as presented.
May 2020 Election In May of even numbered years the District is required to have an election. Mr. Marchetti reviewed the Resolution that calls the election, lists the Directors whose terms are up, designates the election official and authorizes the Designated Election Official to cancel the election if there are no more candidates than terms to fill. Following discussion, and upon motion duly made and seconded it was unanimously
RESOLVED to adopt the Resolution Calling for the 2020 Regular District Election.
UERWA The Board reviewed the minutes from the UERWA included in the packet.
Future Meetings The Board reviewed the 2020 Proposed meeting calendar included in the packet. Following discussion, the January and April meetings were moved to the fifth Wednesday of the month. Upon motion duly made and seconded, it was unanimously
RESOVLED to approve the 2020 meeting calendar with requested revisions.
The Board confirmed that the next regular is scheduled for November 20, 2019, 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 30th day of October, 2019.
Secretary for the Meeting