Addendum to 2017-18 Sky Tavern Annual Report Sky Tavern Facility and Equipment Report The purpose of this document is to inform the City of Reno on the general condition of the Sky Tavern Ski Area, the lodge, the ski lifts and the equipment that is needed to produce programing at the area. It is also to demonstrate that Sky Tavern, a 501c3 Nevada nonprofit corporation, is committed to improving the area to serve the community through varied programs, including the Sky Tavern Junior Ski Program now in its 70th season, by demonstrating a fiscal track record of caring for the area and equipment. Lifts 100% Operational Sky Ridge, triple chair America, triple chair Rocco, left & right platter lifts surface lift Pony, base area handle tow surface lift It should be noted that all ski lift maintenance and designs are governed by the insurance companies and tramway boards nation-wide through a standardized document know as B-77, the “bible” of ski lifts. Sky Tavern’s insurance company is Safehold Special Risks which specializes in ski area insurance. Our ski lift inspector is Jason R. Zakotnik, P.E. who sits on the B-77 board making him one of the most trusted experts on the subject of ski lifts. Unlike other skiing states, the State of Nevada has no tramway board making Jason the final word on lift condition. Example of Lifts Annual Maintenance Tasks America Grip migration/ NDT rope inspection/ lube lap Carrier inspection and repair Service brake service(measure brake pads, replace air bladder, grease pivot points) Emergency brake(measure pads, inspect brake unit for cracks or lose parts) Gear box (oil sample, find leaking gasket, check all hardware for torque 480ft/lbs, check all fittings) Tension unit(measure chains, clean and lubricate rams, check hi/low safety, lubricate chains, paint as needed) Terminal structure ( paint as needed, grease carriage rollers, grease terminal sheaves, measure bull wheel liner depth, clean bullwheel, UT test bullwheel, inspect bullwheel hub) Line work (lift/spin/grease every sheave replace sheaves if bad bearings or bad liners, check alignment of assembly, check for cracks and loose hardware) Tower bases for cracks, reseal bases Repair seat pads Check all safety circuits Service air compressor(change water separator, check all air lines and fittings) APU service Rocco is the only original lift from the Fleischmann Foundation grant in 1967. It was named for Rocco Spina, famed Parks and Recs manager of the City of Reno. In the fall of 2017 Sky Tavern rebuilt both drive units for the first time since it was installed. Also, many electrical upgrades were installed such as deropment switches. This was a very expensive project, but one that will keep Rocco going until a carpet lift is installed sometime in the future. This lift gets a huge amount of use as kids progress from never being on skis for the first half of the program. By week 4 most kids have progressed to the chair lifts and Rocco sits mostly dormant again. Notes on the attached 2017 Lift Inspection. No problems found, and all noted conditions were addressed before public opening. This is an annual inspection completed by Safehold just prior to opening at all resorts. A clarification about the drives in both chairlifts. Both chairlifts have electronic controls that check the position of all safety switches before allowing the motor to move the lift. Collectively this is called the drive. Both of our chairlifts use a system Base 10. It is very common and was the standard when they were installed. It is the same system used nation-wide on hundreds of lifts including at Mt. Rose Ski Tahoe. Being what electronics are, there is now a smaller, more robust system available that can replace a Base 10 unit. Think wired house phone compared to a smart phone. Base 10 works fine. Over the years ours have been updated through donations from other resorts. It is not unsafe at all and has been made very reliable the last few seasons again through effort. In our strategic plan replacing these systems is a five-year goal. This will allow the lifts to be operated for generations to come or until electronics are again made simpler and cheaper. Cost is $80,000 per lift. There is no safety advantage to changing, just simpler maintenance. Any safety issue would have been called out during inspection and would impact resorts across the country including our neighbors. Heavy Equipment ready for Winter Sky Tavern owns four snowcats for winter slope grooming and a front-end loader used for summer maintenance and winter snow removal. Three are modern snowcats with the fourth best used as a parking lot cat only or an entrance conversation piece. All are up to date on maintenance, are completely functionable, even the oldest. Sky Tavern is in a great position on snowcats as in the not so distant past we operated with only one modern unit until we purchased a second for $155,000. Because of State of California regulations Homewood Mountain Resort found it advantageous to donate the third snowcat to us last season. This relationship may continue in the future all due to the tax code and California State requirements on off road equipment. Piston Bully North American headquarters is located in Reno and they have used Sky Tavern often as a testing and devastation area for their snowcats. Sky Tavern is not only paid for this, but receives use of snowcats and operators. No time table has been set for snowcat or loader replacement. The expected life is in excesses of ten years, twenty or more for the loader. Sky Tavern also owns or has been loaned several tractors and an off-road fork lift. Small Equipment is considered the fleet of snow mobiles and other equipment owned such as generators, welders, off road vehicles, and landscaping equipment, saws and the like. Sky Tavern also owns machine shop equipment to maintain all other equipment and fixtures. All require repairs at time. Staff is more than able to maintain these machines. Grounds continued improvements 140 acres is a fair amount of land to maintain. Forest and slope management consume many hours. This also includes water management, maintenance of creeks, ponds and sediment catches. This requires renting equipment such as excavators that is not owned. A concern has been the entrance to the aspen community venue. Since this is the site of weddings, concerts, camps and art gatherings, we wanted to improve the look and feel of the grounds leading to it. Improvements are the grading and seeding of the entrance to be followed by some pathways constructed after the grass takes root. This area is also part of the bike track for little kids so it is important to have it kid friendly. Another area that a fair amount of effort has gone into is the south pond. This is a great part of Sky Tavern that is the entrance to Project Discovery. We have worked together to make it very usable summer and winter. It is home to a number of interesting critters including the otter the kids named Pop. Bike Park and Trails ever expanding Building bike trails is labor intensive. Several new trails have been constructed and old ones reborn. While the hope of even a sustaining income stream from mountain bike operation has been proved to be unrealistic, building trails is still the right thing to do for the community. Trail building is continuing. Events, which may include income, are filling the fall calendar. Lodge, improving and much better than everyone thinks When the builder of Sky Tavern was still alive he asked me what I thought we were doing. He said he built the lodge to last 30 years, 70 years ago. Well he did a better job than we gave him credit for. Structurally it proved sound coming through the feet upon feet of snow burying it in 2017 much better than its sister, the Reindeer Lodge down the hill. Much like any old building there is always something to fix and while at some point we will replace it, for now it works. Of the original conditions of the lodge called out in the facilities survey from 2016, one has been untouched. The sidewalk leading into the first floor needs to be replaced because of a draining issue. This is not a huge concern but still needs to be addressed. If snow is not early this may be repaired this fall. The other two issues of the roof needing resealing and the chimney mason work have been finished. Temporary buildings are planned to house special programs such as the Race Team and SkyKids. This process had to be placed on hold until the fire system was completed by the City of Reno. The fire system was certified operational by Sierra Fire on July 24,2018 with installation first started in 2010. Lodge improvements made by Sky Tavern Kitchen improvements with new equipment Coating of the east wing roof. Carpet Video and audio equipment Plumbing fixture replacement Hot water heater replacement (August) Propane added to the kitchen Finishing of the third floor not completed by contractor hired by the City General maintenance and painting inside and out Financial Discloser As of 7/25/2018, Sky Tavern Inc. states that it holds in a separate account from any operations accounts, at Heritage Bank of Nevada, a balance in excess of the $16,602.80 amount stipulated in the agreement between the City of Reno and Sky Tavern, for the use of maintenance and/or replacement of the Sky Tavern Ski Area grounds, attached buildings, ski lifts and other equipment.