MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS OF BEAVER CREEK RESORT COMPANY OF COLORADO November 24, 2018

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1 MINUTES OF THE ANNUAL MEETING OF THE BOARD OF DIRECTORS OF BEAVER CREEK RESORT COMPANY OF COLORADO November 24, 2018 The Annual Meeting of the Board of Directors of the Beaver Creek Resort Company of Colorado, a Colorado non-profit corporation (the Company ) was held on Saturday, November 24, 2018, in the Park Hyatt, Beaver Creek Subdivision, Eagle County, Colorado. Ms. Howard called the meeting to order at 9:30 a.m. Ms. Jones verified the Notice of Meeting sent and a quorum established for the purposes of the meeting. The following members of the Board of Directors were present: Beth Howard Tim Maher Jim Donohue Jeff Luker Phil Metz Brian Nolan Greg Willis Representing the Company were Jen Brown, Managing Director; Tom Allen, Treasurer; and Elizabeth Jones, Secretary. Also present were Sarah Stutman, Angie Busby and Kathy Calton from BCRC; Jerry Hensel and Mike Trueblood from Village Operations; and Bill Simmons from Beaver Creek Metro District. 1. Election of Officers. Upon motion made by Mr. Nolan and seconded by Mr. Maher, the following slate of Beaver Creek Resort Company officers were unanimously approved for FY 2019: Beth Howard Greg Willis Ross Bowker Jim Donohue Jeff Luker Phil Metz Tim Maher Brian Nolan Bob Boselli Elizabeth Jones Tom Allen Brent Alm Dawn Friedman Stephanie Lord-Johnson Bonnie Vogt Ludwig Kurz President Secretary Treasurer 2. Public Comment: Ms. Howard introduced Greg Willis, the newest member of the BCRC Board of Directors. Mr. Willis is the General Manager of Beaver Creek Ski School, ticket offices, guest services, and cookie time. 1

2 Ms. Howard also introduced Mike Trueblood, Senior Director of Resort Operations, who has replaced Tim Baker s vacated position. 3. Minutes of the Beaver Creek Resort Company Board Meeting September 20, Upon motion made by Mr. Maher and seconded by Mr. Luker, the minutes of the Board Meeting held September 20, 2018, were unanimously approved as presented. The approved minutes are attached as Exhibit A. 4. FY18 Budget Final Results. Mr. Allen reviewed the final FY18 budget results ending September 30, 2018, attached as Exhibit B: BCRC ended the year with net income of $2,454,011 compared to the budget of $1,250,266. The year-end unrestricted cash balance was $9,812,687. Revenues: Civic, Lodging Civic and Mountain/Recreation Assessments ended the year with a $1,157,770 negative variance. 94% of this variance occurred during the ski season and can be attributed to the early season snow conditions. Summer had a negative variance of $65,765 but was above the prior year by $33,148. RETA had a positive variance of $2,089,658. Real estate sales were strong all year with 97 condos/townhomes sold compared to 78 budgeted and 25 homes/duplexes sold compared to 14 budgeted. In addition the average sales price for homes/duplexes was 11.5% above budget. Activities and special events revenue had a negative variance of $55,292. The decision not to produce the bike week, auto festival and Hike to the Mic resulted in a loss of $257,900 in revenues. The other signature events had a combined positive variance of $202,608 with New Year s Eve, Wine & Spirits, Rodeo and Oktoberfest combining for a positive variance of $246,648. Expenses: Activities and special events had a positive variance of $412,912. There was a saving of $659,399 due to the decision not to produce bike week, vertical ascent, auto festival and Hike to the Mic. The events committee s direction to allocate some of the savings to enhance other events resulted in the positive variance being lower than the savings. Marketing ended with a positive variance of $216,368. Special events marketing had a savings of $227,339 with the majority of this savings in Hike to the Mic. Transportation had a negative variance of $489,277. The variance can be attributed to the calculation method used to budget leases ($380,591) and parking lot bus maintenance ($113,229). Property maintenance had a negative variance of $68,573. The major negative variances occurred in escalator maintenance, general maintenance, sod replacement and ice rink operations. Capital Expenditures: $794,473 was spent on capital projects. Major capital expenditures included $27,000 to remodel the ice rink rental shop; $62,600 for the digital kiosks; $52,974 for LED lighting in the highway 6 parking lots; $38,737 for new recycling containers; $65,812 to replace one of the ice rink compressors; $76,992 on the One Beaver Creek escalator landscaping; $36,650 on pedestrian path landscaping; $16,900 on creek landscaping; $22,556 on silk flowers for the plaza; $47,004 for plaza furnishings; $18,300 on ski and bike racks; $23,436 on the new fire pit; $199,887 on parking lot improvements; and $75,785 on the village activation project by Cirque. The capital expenditure budget was $1,296,250. The lower capital expenditures is due to changes in timing with the Cirque/Vision project. The total project is still expected to be $1,500,000 but the majority of the expenses will now fall into FY

3 Cash Balance: The ending unrestricted cash balance for the year was $9,812,687 compared to a budgeted cash balance of $8,183,470. Ms. Howard acknowledged Mr. Allen s excellent work on the financials over the year, especially with the new accounting system in place. The Board expressed their gratitude for his excellent work. 5. FY19 Operating Budget Ratification. Mr. Allen reviewed the changes made to the Draft FY19 Budget which included transportation expenses, the added Haymeadow Park launch event as part of the resorts early season strategic initiative, the increased Birds of Prey contribution, complimentary three hour parking after 5:00pm paid by BCRC, and increased WiFi service in the village. With a motion by Mr. Donohue and seconded by Mr. Metz, the FY2019 BCRC Budget was unanimously ratified by the Board. 6. FY19 Common Assessment Mill Levy Resolution. Upon motion made by Mr. Maher and seconded by Mr. Nolan, the Board unanimously: RESOLVED, that the Board of Directors hereby adopts zero mills as the mill levy rate for Common Assessments of the Company for the calendar year New Business. Mr. Nolan noted that he has been through the Design Review process in both Vail and Beaver Creek, and while the process and oversight are similar, there is not a review fee required and all documents are submitted digitally in Vail. Mr. Nolan suggested reviewing the Beaver Creek Design Review process and fee structure. Mr. Donohue expressed urgency to make a visual impact in the village, to include music amplifying in the village core, lighting, and activation. Board discussed the Commercial Regulation requirement for merchants to stay open until 8:00pm during ski season and future enforcement of the requirement. Mr. Nolan commented that Jeff Deem, the Vail Resorts Leasing Agent who spoke at the Annual meeting, was well received and it was exciting to hear the alignment of goals with the BCRC Board. Board further discussed the timing of the Pump House bar in the village and holiday décor and holiday tree; should the tree include colored lights? Mr. Luker expressed interest in reviewing the capital plan and list of capital projects at the January BCRC Board meeting. He also asked for an updated list of construction projects planned in the village this spring. Mr. Luker wished to express gratitude for Mr. Gorbold s work on Village Connect and the Downtowner App which has had a successful launch. Mr. Luker especially wished recognize Ms. Kristen Williams for her time on the BCRC Board as the voice of reason and directed Ms. Jones to draft a thank you letter. Mr. Maher asked about Design Review fees required to knock dead trees down. Ms. Brown said the Construction Activities and Compliance Deposit Regulation will be reviewed for suggested changes and staff will bring the amendments back to the Board. Board also discussed the future of Creekside Park and a possible playground remodel, Covered Bridge landscaping/ entry remodel, monument entry sign replacement, and other possible capital projects. 3

4 With no further business to come before the board and upon motion by Mr. Maher duly made, seconded by Mr. Donohue and unanimously approved, the meeting adjourned at 10:36 a.m. Respectfully submitted, Elizabeth Jones Secretary 4

5 LIST OF EXHIBITS SPECIAL MEETING OF THE BOARD OF DIRECTORS BEAVER CREEK RESORT COMPANY OF COLORADO November 24, 2018 A. Minutes of the BCRC Board of Directors Meeting September 20, 2018 B. BCRC Financial Report ending September 30,