Colorado Legislative Action Committee (CLAC)

Minutes December 6, 2013 1st Floor Conference Room, 1580 Logan Street, Denver
Call to order 1:38 PM Chair Molly Foley-Healy Attendance Members/Delegates Cavanagh, Candyce Cowell, Jim Ford, David Foley-Healy, Molly Helm, Brandon Kerrane, Jeff Leff, Suzanne Otto, Chad Pacetti, Chris Wolfe, Dee Wilderotter, Pat Witt, Jesse

Guests Aponte, Ruth Aponte & Busam Public Affairs Redfern, Amy Aponte & Busam Public Affairs Mari Perczak Sullen, Sandgrund, Perczak and Nuss David Brown

Delegates were asked to disclose any conflicts of interest. No disclosures were made; however, Jeff Kerrane noted that his firm represents a client at the Court of Appeals with a similar issue as that being addressed in Triple Crown. Candyce Cavanagh noted that her firm represents the same association as general counsel that Jeff represents as litigation counsel. APPROVAL OF MINUTES: Minutes have already been approved. LEGISLATIVE AND ISSUES UPDATES: Construction Defects: Molly, Amy and Ruth have been visiting with legislators. Talking points are being distributed regarding response to the DRCOG (Denver Regional Council of Governments) study. The report does not contain hard data and is admittedly a biased study where the researchers only spoke to one side. The study states that the other side refused to speak with them. Mari Perczak reports that statement is not correct. There was a discussion about insurance indicating that rates are currently about 1.5% of the project cost, but Mari Perczak noted that she believes historically these premiums have been 6% to 6.5%. She also noted that there have been no reports to insurance commissioner regarding premiums. Jesse Witt noted that quality construction for supervision costs approximately $15,000 per unit. Amy and Ruth noted that role of CLAC is to provide balanced information. An envoy was appointed to address construction defect matters: Jesse Witt, Jeff Kerrane, David Ford, and Chad Otto. Triple Crown Case: General discussion was held regarding the issue the time frame for amending covenants. It was agreed to request that CAI approve an amicus to support the petition for cert on this matter.

An envoy was appointed to work on the request to CAI for amicus and to draft amicus if approved: Jeff Kerrane (Chair), Jesse Witt, Suzanne Leff, Molly Foley-Healy, Candyce Cavanagh with assistance of Mari Perczak. Collection Agency Issue: Letter from State of Colorado regarding when a management company may be deemed to be a collection agency was discussed. Envoy appointed: David Ford (Chair), Dee Wolfe, and Brandon Helm Management Transfer Fees. The HOA Forum is trying to get a bill introduced to limit management company transfer fees. At this time, it is not clear whether or not such a bill will be introduced. Town Hall Meetings. Gary Toby represented CLAC. There were also HOA Forum people in attendance. There were fewer people in attendance than at prior forums. There was also a meeting in Littleton chaired by Senator Newell. Robin McDonald (mediator) spoke, Stan Hrincevich (HOA Forum) and Molly-Foley Healy spoke. Division of Real Estate Rulemaking. DRE has decided not to use focus groups and will proceed with the administrative rulemaking. CLAC will distribute proposed rules to the Chapters to be posted on to websites along with information on how comments may be made to DRE. Additions to manager task force: Dave Ford, Brandon Helm, and Chad Otto. Next meeting: The next meeting is scheduled for Friday, January 24, 2014, at 1:30 PM. Adjournment: There being no further business to come before the meeting, the meeting was adjourned at 3:00 PM. Respectfully submitted, Candyce Cavanagh

CLAC MEMBER/DELEGATE ATTENDANCE RECORDS

Member | Meeting 1.4.13 1.25.13 2.15.13 3.15.13 10.18.13 12.6.13 1.24.14

Booth, David Cavanagh, Candyce Cowell, Jim Flippen, Jim Ford, Dave Foley-Healy, Molly Goff, Pam Graf, David Helm, Brandon Kerrane, Jeff Kutzer, Jeff Leff, Suzanne Lukasik, Walt Otto, Chad Pacetti, Chris Sim, Jim Tobey, Gary Wildrotter, Pat Wolfe, Dee Witt, Jesse

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Attendance Policy: A LAC delegate who has three consecutive unexcused absences (as determined by the LACs officers) from LAC meetings may be removed by a majority vote of the LAC at a meeting where a quorum is present provided the LAC chair notified the delegate and his or her chapter, if applicable, in writing following the delegates second excused absence that a third consecutive absence may result in the delegates removal.