COLUMBINE LAKE COUNTRY CLUB, INC.

I. Call to Order

BOARD OF DIRECTORS MEETING

October 13, 2018

President Mark Woltkamp called the regular monthly meeting of the Columbine Lake Country Club Board of Directors to order at 9:01am. Other board members present were Marilyn Binkley, Vince Verbel, iza Eilers, Geoff Schaney, JohnJoyce, Rebecca Fine and Scott Wilson. Board member John Amerman was not present. Staff members Chris Atencio and Nancy Negri were present.

None of the board members present stated there would be a conflict of interest with any items on our Agenda for October 13, 2018.

II. Approval o f Minutes

The minutes of the September 8, 2018 Board of Directors meeting were reviewed. Voting cannot be done by any member who was not present at the meeting that is being voted upon. A motion was made by Marilyn Binkley, seconded byLiza Eilers, and\ passed unanimously to accept the minutes asamended.

A discussion ensued as to whether we should post 'draft' meeting minutes to the website, ahead of finalizing at the board meeting as required. Board members agreed to think about this for one month, and will decide on a process at the next board meeting in November.

III. Members Forum

Members present included Tom Yarbrough, Tom Hubbard, Mark Trumbo, Ryan Reddy, Walt & Kathy Curtner, David Binkley, Lisa Atencio and Katie Ellis (via telephone).

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Tim Vogler - BK 3, LOT 040Homeowner Tim Vogler sent an email to the office, and it was read by board president, Mark Woltkamp. Mr. Vogler would like to know if we will be posting meeting minutes before the next board meeting so homeowners would be able to review what occurred at the prior meeting? Per the above comments following approval of minutes, this portion has already been answered. He also inquired as to whether CLCC was ADA compliant at the clubhouse. Mr. Woltkamp responded that as far as he knows, Columbine has never had an ADA violation. Per Marilyn Binkley's prior research on ADA compliance, CLCC would be required to comply with ADA requirements in the event that significant structural changes were to be made to the clubhouse.

Tom Hubbard, BK 12, LOTS 3 Mr. Hubbard read a letter that he sent to members of the short-term rental advocacy group (see Addendum A) · He feels his issue doesn't affect just host owners, but all members of the community. Mr. Hubbard expressed that owners have the right to speak, that the Board of Directors doesn't have any legal right to tell homeowners what to put in their ads. Tom Hubbard stated that renters should know what they can and cannot do. President Woltkamp stated that the board had already received a full copy of the letter Mr. Hubbard referenced. Mr. Woltkamp did not want to engage in a lengthy debate about short term rentals during the Members Forum as that topic is on the agenda for board discus.sion later .in the meeting. Mr. Woltkamp did emphasize that when a person buys .into an HOA, they are subject to the approved HOA rules and regulations, which can be more restrictive than state and county rules.

Anoth r issue ML Hubbard raised was that of emailing the agenda for an upcoming board meeting. Mr. Woltkamp agreed that the board meeting agendas shoul9- be posted pt:ior to · the meeting. He acknowledged that this current meeting's agenda was not posted in time due to technical difficulties with our server. Nancy Negri provided further details about the technical issues and explained that the .normal process is to post the agenda on the CLCC website no later than mid.;.week prior to the actual board meeting date.

Tom Yarbrough- BK3, LOT 48 Homeowner Tom Yarbrough expressed his ongoing concern with the commercialization of Columbine Lake and its long-term effects (see Addendum B). Mr. Yarbrough applauds what the STRC and the Board are trying to do to streamline the language of rental properties. The global vacation rental market per a letter from Vacasa (an international management company) states an annual growth rate of 7%. At this rate, it could increase our community's percentage of STRs from the current 54 units to almost 67 units within three years! Mr.

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Yarbrough would like the Board to consider putting a cap on the number, or total percentage of STRs allowed in the community. For example, if it indeed is at 12%, as presented at the 9/18/2018 board meeting by an STRC representative, then let's set a cap at this level. If people are uncomfortable with setting a cap, then impose a moratorium on any additional rentals until a realistic cap can be set. Mr. Yarbrough would also like for Columbine to add the phone number of the Grand County Short-Term Rental Program which is 970-725-3737 (contact name: Julie), to our list of important phone numbers on our website.

Mr. Woltkamp stated that the board understands the STRissues raised by Mr. Yarbrough and that the board, through its Short-Term Rental Committee, is committed to addressing and resolving current STR issues in a manner that is fair to the entire community. President Woltkamp explained that Mr. Yarbrough's recommendations to restrict or cap the number of STR's in CLCC would require changing CLCC Covenants, which would require a referendum of the entire homeowner community. He further stated that changing covenants is a complicated and time-consuming legal process which the board would like to avoid at this point. The board would prefer to utilize new or revised Homeowner Regs to address the issues if possible.

IV. Financial Reports

Treasurer Vince Verbel presented the financial report for September 2018.Noteworthy expenses include $1897 for legal expenses (budgeted), and materialsfor new boat racks of $3054 by the clubhouse access (budgeted).

Treasurer Verbelnoted in his opinion, that our contract security for the Labor Day Sunday was money well spent and hoped that the Board would consider using thistypeof security for other large community functions in the future.

Significant pending expenses include $5135 for legal services re: CCIOA (budgeted)a:µd approximately $4250 for the annual review with Day & Associates(budgeted).A motion w:as made by Geoff Schaney, seconded by Marilyn Binkley,and passed unanimously to accept the Financial Income Statement forthe month of September 2018 as amended.

V. Manager's Report

Interviews for new ARC (Architectural Review Committee) members were heldthis past week and recommendations were made to the Board of Directors. The

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Board must approve these recommendations to make them official. These new members will adhere to a 3-year term. A motion was made by Geoff Schaney, seconded by John Joyce, and approved unanimously to accept the recommendations of two new members to the ARC committee.

A. Current Builds1. Michael McAtee - 491 Columbine Drive

October 2018 - Foundation is being back filled. Will start exterior framing September 2018 - Foundation is complete Concrete work was started the week of August 13 2018

There was lengthy board discussion about the visual appearance and actual height of the poured concrete foundations. It was ultimately agreed that the current construction appears to conform to the ARC approved plans, but that the CLCC GM will personally check the structural height to ensure it is within the parameters.

2. Melissa Callahan - 1352 KinnikinnickInterior nearly complete September 2018 - Exterior nearly complete

B. Current Building AdditionsNone

C. Upcoming Events:Friday, October 12 - Game Night Friday, October 26 - CLCC Potluck

I). 2019 Calendar of Community Events: February 16 - Italian Cookoff May 26 - Annual Meeting and Election July 4 - Parade and Picnic and 50th Anniversary Celebration July 27 and 28 - Slash and Trash August 10 - Summer Concert September 1 - Pancake Breakfast

E. The New Recycle area ground preparation was completed this week. We will install fences soon

F. Clubhouse Boat Racks were completed Friday and Saturday, September 28and 29.

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- Special thanks to: John Sack, Ed Reif, Mark Trumbo, John Joyce, JohnMovius, Ivan Blom, Jodie Fattore and Dave Kaeding

G. Wedding at the Gazebo on September 22nd. It was a big success with great weather.

H. Broncos and Rockies Playoff games have been on in the clubhouse.

I. New road base added at the Kinnikinnick and Deer entrance.

J . All violation letters sent out in September have been answered and resolved. An extension was given to one homeowner as they will be coming up in a few weeks. A stop action violation letter was submitted on 422 Kinnikinnick. Work was performed without applying for permits. They were not fined, but submitted the requested permits immediately. The ARC needs to consider assessing fines when someone is already doing the work, but without a permit, especially when it is something structural. After much discussion, it was decided that the ARC would come up with a recommendation to follow when someone has not followed the rules. Vice President Liza Eilers reminded the Boardofthe Fine Schedule that was submitted by the ARC lessJhan a, year ago. The first step is to assess awarning letter. The ARC will now go back to the fine schedule and further define what should happen wheµ someone does not follow our permitting process, especially when it is for something structural and permanent.

A Jist of all violations was requested by Director Marilyn Binkley. The . Board would like t.o look at patterns or types of offenses that are being committed.

K. Most snowbirds have left CLCC.

L. CLCC Fire Ban was removed on Friday October 5th. Grand County remains in a Level 1 fire ban.

M. Talking to contractors about new projects:1. Recycle Dumpsters - Work to begin in the fall. Working with Waste

Management and CLCC Board of directors.2. New floor in office. Work to begin in the fall. Current office to be

relocated to the rear conference room of the cabin.3. New floor and furniture in clubhouse to be started this fall with CLCC

board approval.

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4. Inserts and furniture for clubhouse in the fall with approval from CLCC Board.

Administrator's Report

A. Home Transfers: There were 4 lot transfers for the month of September 2018To date:

July - Sept (2018-2019) July - Sept (2017-2018)

There were 15 lot transfersThere were 9 lot transfers

B. Invoices for the second half of HOA fees have been sent to homeowners.These were mailed out the first week of October to those that still show abalance due to Columbine Lake. All payments are due no later than Nov. 30,2018.

C. A large upgrade for QuickBooks was performed the end·of September. This was a free upgrade and it was necessary as we were still operating underQuick Books Pro Plus 2016. The new version is for 2019. If this had not beendone, the upgrade would be required in January2019 for payroll and vendorpayments to continue.

D. The October-December 2018 Newsletter was sent to all homeowners withemail addresses that we currentlyhave on file. There are approximately 25 homeowners thatreceive their newsletter via hardcopy to their home.

E. Recently received the engagement letter with Day & Associates to begin our ryyiew for the past year.

VI. Unfinished Business & Committee Reports

A. Bylaw proposed amendments, Owner Regs & Officer RolesGiven today's meeting full agenda, this topic will be discussed at the nextboard meeting in November.

B. CCIOA President Woltkamp reminded the board of the lengthy effort to date thathas gone into resolving the question of whether or not CLCC should elect to adopt the state statute known as CCIOA. The issue was put forth for acommunity vote at last June's Annual Meeting but the vote was suspendedas many homeowners felt they did not have enough information to be ableto vote on an informed basis. Therefore Mr. Bill Babich volunteered to

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form a working group of homeowners to research the issue. On September 7, 2018, a meeting was held at the clubhouse between the CLCC attorneys, several CLCC board members and Mr. Babich with members of his Homeowner's Review Committee. A lengthy discussion ensued but no decisions were recommended or made. Following that meeting, President Woltkamp received a long list of questions from Mr. Babich that requested additional research and review by our attorneys and a request for additional meetings with our attorneys. To date, CLCC has already spent approximately $8500 on CCIOA research by our attorneys.

After further discussion with CLCC attorneys, former board member Neal Cross, Mr. Babich and others, President Woltkamp is now of the opinion that the board should no longer consider the adoption ofCCIOA. Based upon the nature of the follow-up questions and the committee discusi:;ions with the attorneys, he feels that pu:rsuing.CCIOA adoption is not in the best interests of the board or the community at this time. He feels.the issue of continued legal research and attorney fees is of significant concern relative to the perceived benefits that we may receive by adopting CCIOA. Moreover, he feels that the CCIOA issue has become a huge distraction that takes away from the board focus on other priorities.

However, President Woltkamp emphasized that eve:ryone needs to recognize that CCIOA does not go away in terms of CLCC governance. Even if we choose not to adopt the full CCIOA statute, there are many important parts of CCIOA that still apply to pre-1992, grandfathered HOA's like CLCC. We and our attorneys are fullyaware of this and our attorneys have provided us with details about which sections apply to CLCC and what we need to do for compliance.

Geoff Schaney: What Geoff interpreted from the attorneys, was that over the course of time, we may have to adopt different portions of CCIOA. Therefore, maybe we should pursue that avenue and spread the expense over time. Doing ifoverthe course.of time is just as effective. We already have an effective set of bylaws, coyenants and rules and regulations in place.

Liza Eilers: There are 9 areas of CCIOA that the lawyers recommended that we need to look at and begin to strengthen our owner's regulations, possibly covenants, as well as our bylaws. She is currently exploring those areas and juxtaposing that between what we have now, and could possibly save us some attorney fees. The attorneys have already provided some language for us to adopt. There are some governing documents on principles that we've had for years around our meeting management and circulating of materials as well as our commitment to Roberts Rules that speaks to ways we do things that are in keeping with CCIOA currently.

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Mark: Our board always strives to be as transparent and compliant as possible and will continue to do so whether we adopt CCIOA or not. There is nothing that we do by design to circumvent any regulations or to create some level of secrecy unless it is absolutely required and allowed, such as for employee or legal issues. It is our expressed objective to continue to function in this manner, again whether under full or partial CCIOA.

John Joyce: Requested the board review the 16 regulations within the Colorado Revised Statutes, Title 38, Article 33.3 to make certain CLCC is in compliance. These 16 regulations, that an HOA, founded prior to 1992, has to comply.

Scott Wilson: Feels there is no benefit to join CCIOA at this time.

A motion was made by Liza Eilers, seconded by Geoff Schaney, and approved unanimously, that the Board rescind its April 2017 recommendation to the homeowners that CLCC should adopt CCIOA through the required referendum process.

Last April, it was a recommendation to the homeowners that we as Columbine join CCIOA. The above was a motion to rescind that recommendation to the homeowners.

Mr. Woltkamp clarified that this current motion just rescinds the prior recommendation; the issue of adopting CCIOA may still be considered by a future board shouldit ever be deemed necessary. Mr. Woltkamp has informed Mr. Babich of his intentions to raise the CCIOA issue for board discussion and has informed the attorneys to suspend all legal activity related to CCIOA pending board decision.

C. Short Term Rentals (STRs)Geoff Schaney noted that a request was sent to all homeowners asking forpeople.to comply with the July 2017 board approved rules and regulationsregarding STRs. At the current time, we only had 8 permits in the office andno recognition of what was said in the ads. Whoever did the interpretationinto ArticleVI, did not mimic what was sent in the July 2017 letter, and somevery important parts were left out. Therefore, the committee rewrote the adsso that they did mimic the July 2017 letter.Once the email went out requesting information, he worked with boardmember Liza Eilers to convert that email into a document. Since that time,Geoff Schaney has rewritten Article VI (see Addendum C). Mr. Schaneybelieves it is well written thanks to the help of other board members, andrepresents what was stated 1 112 years ago. It's designed to protect thecommunity, the host owners and the non-host owners. He believes this is whata regulation should be. He understands the concern about putting in required

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language. What Director Schaney finds of those ads that are coming in to the committee, is that people are taking language and interpreting into their own language. They're missing the intent of the language and that is why we're having violations.

Committee member Josh Sewell suggested the language needed to be condensed due to the length of space available in ads, but still deliver the same message.

According to Mark Woltkamp, due to the sensitivity of this rental issue, they will follow a little different process this time, given that people have just seen this. The Board will forego voting on this policy this month, but they will vote next month. Board members are encouraged to read this very carefully and make comments in writing, prior to the next meeting. Any homeowners that wish to comment on this policy, can do so at the next board meeting in November, or send those comments in writing to office@colmnbinelake.com. The vote will be conducted at the November 10, 2018 Board Meeting.

Director Marilyn Binkley made a few comments about the results of the initial letter that went out. Marilyn thanked homeowner Tom Hubbard for guiding her through the process of working with the county. The numbers of STRs the county has found in Columbine is 52, and of those, 49 have their county permit. CLCC homeowners are to be commended for following through with the county. As far as our Columbine request, of those 52 we had 21 who responded to our request and 11 of those are totally compliant (permit, checked the ad & they are correct based on language we recommended). The remaining 10 had onlineads that are incomplete or incorrect, or only mention the lake, not the pool and clubhouse. Our language is about giving consistent language to all.

STRC is going to meet to discuss where we go now. What do we do with non-compliant properties? We know what the fine structure is, and there will be a fee associated and written within Article VI, mimicking that of the county. Another issue they will discuss is that of the timing between violations submitted. (usually 30 days) Suggestion made by Liza Eilers to use 'water sports' in place of all water activities listed.

D. Drones in CLCCChanges to policy:#1 Drones, unmanned aerial & radio-controlled boat vehicles ...#2 Drones may be used for (remove 'the') commercial purposes ....#3 Owners must submit a CLCC Approval Form to the Office Administrator ofCLCC for any commercial drone use.

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