Is Denver Becoming One Of The Worst-Run Cities In America?

by Mark Smiley | Jul 26, 2019 | Main Articles

Despite $1.46 Billion Budget, City Among 50 Worst; Auditor Cites Pay-To-Play Politics At Public Works, Parks

by Glen Richardson

Albeit city salaries are about $1 billion annually, Denver can no longer crack a spot in America’s 100 best-run cities, falling into the 50 worst-run big cities in the nation, ranked 117.

A study released last month by WalletHub compared America’s 150 biggest cities to determine the best and worst run municipalities, based upon their operating efficiency. The online financial website constructed a “Quality of City Services” score — comprising 37 key performance indicators grouped into six service categories — that was then measured against the city’s total per-capita budget. The website that recently ranked Denver the 13th best city to live in is owned by Washington D.C.-based Evolution Financial Inc.

Among comparable big cities, Las Vegas (46th), Portland (65th), Boston (67th) and Houston (73rd) were ranked in the top 75 best run cities, providing residents with much more bang for their buck. Moreover, Aurora (54th) and Colorado Springs (58th) were significantly better at planning, coordinating and managing than was the City of Denver.

Spending Spree

Numbers have hinted at Denver’s dismal performance since Mayor Michael Hancock first took office in 2011. Rather than a city manager, Denver has a strong mayor, weak city council system. The mayor can approve-veto any council ordinance or resolution and is responsible for the city budget and appointments to city departments. The city now spends nearly $1 billion annually on salaries alone, up from $600 million just eight years ago. The city’s budget has grown each year since 2010. Denver’s $1.46 billion 2019 budget is up 3% from 2018.

The number of municipal employees has grown by more than 20%. General Administration — which includes the mayor’s office and the city attorney — has grown by 48%. Hancock’s 2019 budget calls for hiring another 260 full-time employees spread across 11 cabinet-level departments. Staffing in departments like Community Planning & Development has grown by more than 80% during Hancock’s first two terms.

Even more worrisome, during the May municipal election, the mayor proposed the creation of several new offices, including a Department of Transportation & Infrastructure. That division would replace and significantly expand the out of control Public Works Department.

Political Patronage

Neighborhood dissatisfaction with Denver’s quality of service — a key component in rating America’s best and worst cities — is reflected by the political patronage in appointments made by the Hancock Administration. Too often they have trouble using taxpayers’ funds wisely (if not improperly) or abusing their positions, critics claim.

Hancock named Eulois Clarkley Executive Director of Denver Public Works in November 2017. He oversees 1,300 employees responsible for city road maintenance, trash collection, design-constructions of streets, public buildings plus parking management.

Clarkley’s selection as Public Works Director was made chiefly to create and expand Denver bike lanes. His exceptional job of adding multiple bike lanes has incensed dozens of neighborhoods. The former Deputy Director of the Houston-Galveston Area Council, seemingly lacks experience managing the $340 million department budget let alone overseeing contracts for the city’s massive construction projects that created the Convention Center scandal.

Park-Rec Problems

Appointment of Allegra “Happy” Haynes as Executive Director of Denver Parks & Recreation nearly four years ago is another example. Besides the Parks & Rec job she remains the At-Large Board Member of Denver Public Schools.

The department which includes the Golf Enterprise Fund, has a budget of more than $150 million. A staff of 550 full-time plus 1,500 part-time employees manage 240 parks and parkways, plus 14,000 acres of mountain parks, 309 athletic fields and eight golf courses.

She has overseen the destruction of several city open spaces, including agreeing to the redevelopment of Park Hill Golf Course that’s outraged neighborhoods along with former Mayor Wellington Webb. Of 14 recommendations in the May 2017 Golf Enterprise Fund audit by Auditor Timothy O’Brien, CPA, Denver Golf fully implemented five, partially implemented three, and did not implement six at all.

Golf Double Bogie

Haynes and Denver Golf haven’t yet created a strategic plan and city officials think it will take through the end of 2020 to finish it. If this occurs, it will be two years from the time the agency stated implementation.

Denver Golf claims the delay is due to projects such as the music festival at the Overland Golf Course, and because the agency was waiting for Parks & Recreation to finalize a 10-year strategic plan. Financial procedure documentation, rotation of duties and performing accurate counts of assets have yet to be implemented.

“This should’ve been an eagle for Denver Golf,” Auditor O’Brien suggests. “It looks more like a double bogie.”

Bidding Scandal

Management has become so bad at City Hall that following the Public Works bidding scandal, the Denver Auditor’s Office began looking at the city’s Public Works, Parks & Recreation and Public Health & Environment departments. Audits discovered that the city allowed some contracts to be longer than recommended with inadequate justification and didn’t verify that some companies were in good standing to do business.

The auditor found that none of the three departments had policies for handling conflicts of interest for each project put out to bid. “You don’t want city employees that are part of the procurement process to be influenced by tickets to a ballgame or a meal or something like that,” Auditor Tim O’Brien explains. Right now in Denver, only vendors that are awarded non-competitive work must disclose contributions.

Auditors also found that when disclosures of political contributions were required, few contractors submitted the form to the Clerk & Recorder. The auditor sampled 41 city contractors from the three agencies and found that only five had provided the disclosures. Parks and Rec officials say they had discussions about conflicts, but the conversations were never documented.

Audits Ignored

Worse yet, two city agencies haven’t fully implemented recommendations made in three separate reports from Denver Auditor O’Brien. In addition to the Golf Enterprise Audit, personally identifiable information in the city’s July 2017 Salesforce audit and the November 2017 Software Asset Management assessment weren’t followed through.

“I’m disappointed to see so many of our recommendations not fully implemented or not implemented at all — especially after agencies agreed to them,” Auditor O’Brien worries. “The city needs to take our recommendations seriously because they help improve stewardship of taxpayer dollars.”

Meanwhile, in the Salesforce Personally Identifiable Information audit, Technology Services fully implemented five out of six recommendations. Technology Services fully implemented two of the four recommendations in the Software Asset Management assessment, conducted for the auditor’s office by Deloitte & Touche.

Public Works To Deface Historic Protected Parkway

by Mark Smiley | Jun 21, 2019 | Main Articles

Residents, Cyclists Warn Plan Would Harm Picturesque Stretch, Best Bike Ride In Denver

by Glen Richardson

Listed on the National Register of Historic Places in 1986, South Marion Street Parkway is designed with a wide expanse of turf, flowering shrubs, and a natural coniferous forest of pine, spruce and fir. Many longtime local cyclists claim it is, “the best bike ride in Denver.” Residents have chosen to live here because of the serene beauty it affords as Denver continues to grow and expand.

Stretching four blocks, this linear parkway passes through a residential neighborhood before it terminates at the north edge of Wash Park. Appearing in a component of George Kessler’s 1907 plan for the Denver Park & Parkway System, the land was acquired in 1909 and the parkway was largely completed four years later. Landscape architect S.R. DeBoer bordered the parkway with an allee of deciduous trees: Elms line the parkway at its northernmost end as it connects with Speer Blvd., red oak and honey locust parallel the central segment, and sycamore trees were planted to create a dramatic formal entrance to Wash Park.

More than 105 years later, the bicycle bullies at Denver Public Works want to deface the historic parkway with curbs and plastic posts to physically buffer bike riders from cars. Led by bike activist Samuel Piper, the department is eager to spend the $18 million bundle it is getting. The money is the department’s share of cash from a 2017 voter approved billion buck loan to build stuff around the city.

Bike Lane Blasphemy

“Protecting these parkways with their tree-lined sidewalks creates the green oasis, visual beauty and character that defines Denver,” say about 180 neighborhood residents who signed a petition against the plan. They recently dropped the petition off at the Mayor’s office.

Maintaining the city should “leave the bike lane as is,” these residents believe the plan is “four blocks of unnecessary aggravation.” Noting that the bike path already exists, they suggest the proposed changes would be a marginal enhancement for a few to the detriment of the many local residents. Moreover, they submit it is dishonest and illegal. “The city’s proposal is a solution in search of a problem, they argue. “There are less intrusive ways to accomplish these goals,” they conclude.

Patsy Brown who attended a city hosted public meeting on the plan says, “I asked if they were aware the parkway is part of the Denver Landmark of Historic Places. They seemed unaware nor did they care,” she says in frustration and anger. Brown lives in one of several high-rises along S. Marion Parkway. In viewing the rather strict guidelines for single family homes that front to a designated parkway, it seems only logical that the parkways themselves should adhere to the same level of protection.

Biker Opposition

Despite backing for the city plan by former BikeDenver members — BikeDenver and Bicycle Colorado recently merged — many avid area cyclists oppose high-comfort lanes along the parkway. They say bike traffic is so light here changes simply aren’t needed. “Instead someone needs to monitor how fast the bicycles along here are traveling,” they submit.

Their point: “This is a special four-block stretch of bike lanes designed to be enjoyed for its tranquil, peaceful splendor. The lanes here were never designed to be used as a racetrack for bikers going to Wash Park.”

Citizens living in and around Marion Parkway are, of course, pleased local bikers within the area appreciate the parkway. Resident Patsy Brown say, “My concern, and that of most of the residents along the parkway, is that the proposed High Comfort bike lanes do not take into account the protected status of our parkway and would in fact, desecrate it.”

Residents Ignored

“There has been no transparency and our input has not been welcomed,” adds Ruth Ann Zisser displaying her annoyance and irritation. She lives in the parkway’s Marionpark Condominiums.

“Many of us believe the government of Denver and its departments involved with this project have been very careful to make sure none of us knew about their plans until the last minute,” Zisser tells the Chronicle.

“That,” she continues, “is after the city had input and planning from the bicycle transportation groups but not from the citizens who live in this neighborhood.”

School Concerns

Steele Street Elementary takes up a full block along the east side of the parkway and area parents worry that adding protected bike lanes will only add to the congestion and increase danger to both school children, parents and bikers.

Despite assurances to the contrary by the city, residents also express alarm that fire trucks answering calls to one of four condos on the east side of the parkway will not have enough room to navigate their trucks.

They point out that fire trucks are called to the parkway at least once a week “Any lessening of space would greatly impede their ability to answer calls in a timely fashion,” they fear.

A Higher Standard

“We just want to get the word out to our neighbors in Wash Park and elsewhere because there has been virtually no notice given, and our fear is that it will be another fait accompli as the city decides to move ahead with the design,” those living on Marion Parkway say.

Protected bike lanes are not new to Denver, but they are sparse compared to the traditional lanes painted on the periphery of roads. They exist mostly on downtown streets and along South Broadway, but never along a protected parkway registered on the National Register of Historic Places.

The significance of keeping these four blocks from being defaced by Denver Public Works is clarified faultlessly by the city’s own Designated Parkways & Boulevards Guidelines: “Denver’s designated parkways and boulevards elevate The Street to an even higher standard of urban design. They are both street and parkland and are the ribbon that ties our historic parks and neighborhoods together.”

Prominent Denver Attorney And 710 KNUS Radio Host Craig Silverman Joins Springer & Steinberg Law Firm

by Mark Smiley | Jun 21, 2019 | Main Articles

by Charles C. Bonniwell

One of Denver’s most experienced and successful attorneys, Craig Silverman, is joining one of Denver’s top law firms of Springer and Steinberg, P.C. He is also well known as a radio show host on Saturday mornings at 710 KNUS radio host and noted for his independent viewpoint. He launched his legal career at the Denver District Attorney’s Office, prosecuting some of Colorado’s and the nation’s highest profile criminal cases.

In 1997, he partnered with David Olivas at Silverman and Olivas, P.C., a well-known boutique law firm in the heart of Denver’s LODO area. There, Silverman successfully represented hundreds of civil and criminal defense clients. And now, Silverman is launching a new chapter in his legal career at the law offices of Springer and Steinberg, P.C.

Silverman says, “I was most interested, flattered, and excited about being recruited by Springer and Steinberg, P.C. Jeff Springer and Harvey Steinberg have been good friends of mine for many decades. I’ve played lots of sports with Jeff and plenty of poker with Harvey.”

Steinberg says, “I’ve known Craig for over 50 years. I followed his career as a prosecutor and marveled at his success. I watched Craig move into the world of civil practice and, as expected, his success there rivaled his prior accomplishments as a prosecutor. Given the closeness of our families, I am happy we will finally be able to join forces at the best and most effective law firm ever.”

Springer echoes those sentiments. “Craig and I go way back,” he says. “We’ve always respected Craig and his abilities as a trial lawyer and fierce competitor. Craig is fun to be around and fits in perfectly at Springer and Steinberg where we have a team approach to winning cases for our clients.

The law firm has close ties with the City of Glendale. Springer has served as Glendale City Attorney for over a decade and has been involved in Glendale’s remarkable development. Silverman points out he’s played a role in Glendale as well, and in 2013 was hired to help screen applicants to be the new Glendale Police Chief, a process which led to the hiring of Chief Joe Hoskins.

You could say Silverman’s love affair with “courts” began in the gym at Denver’s George Washington High School where he was a standout basketball player, earning seven varsity letters in basketball, golf and baseball. He continued his athletic career in college, setting a single season scoring record at Colorado College, over 20 points a game.

In June 1980, following his second year at CU Law School, he began work as an intern at the Denver District Attorney’s Office. He went on to become a Chief Deputy DA. “I prosecuted many violent Denver criminals,” Silverman recounts, “Including Quintin Wortham, the Capitol Hill Rapist, and Frank Rodriguez, Denver’s only modern-day death penalty verdict.”

Following the 1993 “summer of violence” in Denver, Silverman was the prosecutor in one of Denver’s highest profile murder cases. Shane Davis and Stephen Harrington were convicted of brutally murdering Tom Hollar and sentenced to life in prison plus 200 years. The two-week trial was televised live on Court TV. Silverman explains, “Tom’s widow, Christina Hollar, captivated good people everywhere as she bravely testified regarding the horror of her husband Tom being shot dead at 11th and Corona as he tried, in vain, to protect her from being carjacked.”

Silverman’s legal experience and engaging style were appreciated by local and national media outlets. He regularly appeared on local TV stations to provide expert analysis during the OJ Simpson murder case. Another Denver attorney, Dan Caplis, was doing a daily afternoon radio show on AM 760 covering the Simpson “Trial of the Century” and Silverman says, “He had me on regularly which began our friendship that lasts to this day.” In fact, the two started the Caplis and Silverman Show on KHOW Radio in 2004, a popular afternoon drive radio show that lasted over eight years.

Silverman’s legal and media careers converged in 1996, after he ran as an Independent candidate to unseat incumbent DA Bill Ritter. Silverman says, “I lost my race for Denver DA in November 1996, and in December 1996 JonBenét Ramsey was murdered in her Boulder home. Media outlets called me, and I again responded.” Silverman appeared on many network and national cable TV shows and that continued through other Colorado cases including Columbine, the Oklahoma City bombing trial, the Kobe Bryant case and the Aurora theater massacre.

In 2014 he began the Craig Silverman Show which continues to air every Saturday morning from 9 a.m. ’til noon on 710 KNUS radio. The schedule suits Silverman perfectly. He says, “I relish the opportunity to recap the week and express my thoughts about what happened, without having to worry about any interference with my primary job. My work as a lawyer for my clients is always my priority.”

In fact, Silverman explains, “Preparation is critical to putting on a great radio show and the same is true for putting together a client’s best case. Teamwork and a fierce desire to fight for justice make it happen at Springer and Steinberg.”

The firm is mid-sized with 30 some legal professionals dedicated to helping clients. Steinberg is famous as a pre-eminent criminal defense lawyer while Springer is an experienced and widely respected attorney who leads a large legal team working on serious injury and wrongful death cases.

Silverman says he will be focusing primarily on helping victims of bad driving and other injury-causing misconduct. “Helping people who have been victimized by the transgressions of others is what I most enjoy as an attorney and is a natural extension of my work as a prosecutor.” Silverman notes as a member of the Springer and Steinberg team, he won’t have to worry about administrative responsibilities like he did at his own firm. “That means more time with clients, preparing their cases and fighting for justice for our clients.”

For more information or to contact Craig Silverman at Springer and Steinberg, call 303-861-2800 or csilverman@springersteinberg.com.

Runoff Race For Mayor

by Mark Smiley | May 25, 2019 | Main Articles

Hancock Campaign Goes Hyper Negative

by Glen Richardson

In the May 7 Denver Municipal Election two-time incumbent Mayor Michael Hancock received only 38.65% of the vote and his prior pledge to not campaign negatively went very much out the window. Led by the Brownstein Farber Law Firm, the lobbying firm CRL Associates, Colorado Concern and myriad “high-density developers,” money has poured into the Hancock campaign to muddy up political neophyte Jamie Giellis who finished second with 24.86% of the vote.

Hancock had hoped, and expected, to receive over 50% of the vote and had only run positive ads about himself and his affability, which apparently was not effective as over 60% of Denver voters voted for someone other than Hancock. After election night, two other main challengers Lisa Calderón and Penfield Tate endorsed Giellis. Hancock, in response, garnered the support of former mayors Wellington Webb and John Hickenlooper.

Giellis, who had never run for political office before, appeared shocked at first by the Hancock onslaught and appeared ill-prepared for the inevitable claim by the Hancock forces that she was a “racist.” Giellis had appeared on the Brother Jeff Fard’s radio show and did not correctly identify what each of the letters in the acronym NAACP stood for. The failure to correctly identify each of the letters made national news.

Not being a seasoned politician, Giellis did not scrub all of her social media when she entered the mayor’s race, and what she asserts are seemingly innocent observations were recast as being “racist.” Her notation that in some cities there were seemingly few Chinese in today’s Chinatowns was claimed to be anti-Asian. A tweet for a “meet & greet fundraiser at La Cocinita for a nacho/taco bar, lowriders, and a conversation about Denver on May 16” was declared by the Hancock campaign to be anti-Hispanic even though the event was titled such by the owner of La Cocinita restaurant, a Hispanic, and not Giellis.

On Saturday, before the ballots went out on May 20, Hancock began television ads which stated, “like Trump, (Giellis) called undocumented immigrants criminals.” A Denver Post fact checker reputed the claim but the ad has appeared to be effective even if apparently dishonest.

Giellis did, however, appear to rebound. Lacking money for television ads she had a press conference where she accused Hancock of fostering a “poisonous culture” of sexual harassment with graphs showing Denver taxpayers paying nearly $1.5 million in settlements and legal fees during Hancock’s eight years in office.

A review of where each of the candidates performed best in the May 7 election shows that Giellis performed best in the areas where many developers had inserted projects, often against the wishes of the surrounding neighborhoods, including Cherry Creek, Hilltop, Crestmoor, Country Club and Virginia Village. Hancock performed best in his northeast Denver home turf as well as outlying areas where high-density development has not yet occurred.

A major bone of contention between the candidates is the issue of homelessness. Both opposed and voted against Initiative 300 the so-called “Right to Survive” ballot issue which went down to a crushing defeat. Hancock supports the “camping ban” that prevents camping overnight on city property. Giellis does not support the ban as she believes all it does is try to sanitize downtown and push the homeless into the local neighborhoods. She proposes a combination of designated campsites in sanitary locations along with tiny home locations to address the problems of homelessness.

Hancock, with a massive fundraising advantage, hopes that his name recognition and advertising campaign will win out in the end. Giellis, who personally toured every neighborhood in Denver, hopes her person-to-person campaigning will defeat what she views as a cynical negative advertising blitz being relied on by the mayor.

The last time an incumbent mayor lost in Denver was in 1983 when a young Federico Peña defeated 74-year-old incumbent Bill McNichols. Hancock is deemed the favorite, notwithstanding getting less than 40% of the vote in the first round. Almost 40% of the Denver electorate turned out in the first round which was far higher than expected. The higher the turnout the better the chances of the challenger, according to experts, as citizens happy with the status quo often tend not to vote.

The runoff election is set for June 4, 2019, and ballots have already been mailed by the City and County of Denver.

Initiated Ordinance 302 And Council Runoffs Will Help Determine Denver’s Future

by Mark Smiley | May 25, 2019 | Main Articles

by Glen Richardson

While the runoff for the next Mayor of Denver has taken most of the media attention, there are five runoff spots for City Council as well as the City Clerk and Recorder position on the June 4 ballot. In addition, there is a vote on Initiated Ordinance 302 which would mandate voter approval before Denver spends money on trying to lure the Winter Olympics to the city. The proposition was not on the May 7 ballot as the necessary petitions were not turned in until after the day for inclusion in that voting.

The Council runoff races are in Districts 1 (the Highlands and Federal Boulevard area in North Denver), District 3 (West Denver including Sloan’s Lake), District 5 (Central Southeast Denver including Hilltop and Crestmoor), District 9 (Downtown Denver and Five Points, and District 10 (Cherry Creek and Country Club). Three of the races involve incumbents (Districts 5, 9, and 10) which is abnormally high in a city that has upset an incumbent only once in the last three-and-one-half decades (Espinoza over Shepherd in District 1 in 2015). This indicates, according to some, a high level of unhappiness on how growth has been managed in the City and County of Denver during Michael Hancock’s eight years in office, which the City Council in large part controls.

In the runoff for City Clerk and Recorder, term-limited City Councilman Paul Lopez drew only 37% of the vote in the first round which surprised many election observers given his high name recognition. His personal backing of a massive Sloan’s Lake development has been his anathema to some voters. Others attribute Lopez’s poor showing to a disastrous debate performance against Peg Perl who appeared to be highly qualified for the position, while Lopez came across, at best, as amiable but incompetent for the position.

Another surprise in the first round was the showing in District 9 of Councilman Albus Brooks who is deemed by many the heir apparent to Mayor Hancock. He bested challenger Candi CdeBaca in the first round by only 45% to 43%. Voters appeared upset by Brooks being too close to the business group the Downtown Denver Partnership and high-density developers. New developments in the district have forced many African American families who have lived in the district for generations out of Denver.

In District 10 incumbent Wayne New received 39% of the round on May 7 while challenger Chris Hines attracted 30% of the vote. Some felt New did not do enough to challenge Mayor Hancock on myriad issues in his first term, but many fear Hines will be little more than a puppet for developers if he were to get into office.

In Council District 1 the leader of control growth on the Council, Rafael Espinoza elected not to run for a second term after upsetting incumbent Susan Shepherd in 2015. He indicated he could do more outside of Council to encourage reasonable and beneficial growth, and strongly backed his top aide Amanda Sandoval. She is in a runoff with Denver Fire Department Lieutenant Mike Somma who is counting on massive union support for his runoff bid. While unions often do not heavily participate in first round elections they do often throw in their money and manpower for runoffs.

In Council District 3 where incumbent Paul Lopez was term-limited, immigrant rights activist Jamie Torres was the top vote getter in round one with 40% while longtime community leader Veronica Barela received 36%. The vote may depend on the massive Sloan’s Lake development pushed by Paul Lopez and Brownstein Farber Law Firm that is opposed by Barela and many residents.

The only incumbent to fail to win or be the top vote getter in round one was Mary Beth Susman who attracted only 36% of the vote and was bested by political newcomer Amanda Sawyer. Susman is viewed as highly vulnerable for voting against residents’ wishes numerous times for high density development in her District.

A highly interesting side note is Initiated Ordinance 302 which would require a vote of Denver residents before using money or resources in an effort to obtain an Olympic bid. The measure was a result of an effort by Denver to host the 2020 Winter Games which eventually gave Salt Lake City the chance to potentially bid to host the 2030 Winter Games. While developers and some in the business community strongly backed the bid, it was largely opposed by many everyday citizens who saw no reason to spend potentially tens of millions to lure growth and more people to the Denver metro area. The vote is seen as a test of the popularity of rapid if not uncontrolled growth.

Election Day is June 4, 2019, but ballots were sent out by mail on May 20. In the first round the voting was slow up and until election day, May 7, when almost half of the final vote tally were turned in.

Heather Gardens Hosts HOA Town Hall

by Mark Smiley | Apr 29, 2019 | Main Articles

Capacity Crowd Demands More Transparency

by Ruthy Wexler

The reason a group of residents pleaded with legislators to hold an HOA Town Hall early in April was that one of the few regulatory measures the Colorado legislature has applied to HOAs (Home Owner Associations) is that the property managers (community association managers, or CAMS) hired to run them must be licensed, and that licensing law, sunsetting July 19, 2019, was up for discussion and vote mid-April. State senators Nancy Todd and Rhonda Fields and state representatives Mike Weissman and Janet Buckner not only agreed to hold the HOA Town Hall on April 6, 2019, but assembled a panel of experts for the event. Well over 100 residents attended, writing their questions down on the 3×5 cards provided by the four legislators, who assured the standing-room-only crowd that the cards would be kept and studied. “The result,” said Weissman, “would be a document we will all share widely.”

The panelists — attorneys Suzanne Leff and Brian Matise; Jefferey Riester, from the state HOA office; realtor Jim Smith and homeowner advocate Stan Hrincevich — barely made a dent in the pile of cards, most of which voiced concern about, as a longtime Denver realtor put it, “moral and ethical transgressions” by the very entities supposedly there to support homeowners. When one homeowner complained that her management company refused to give her the financial records she’d requested — and Leff, a partner at Winzenburg, Leff, Purvis & Payne, assured the woman she has a “perfect right under the law to those records” and suggested something the woman had already done (put the request in writing) the audience groaned in unison.

‘I know, I know,” empathized Leff. “But I urge you to use those avenues … when communities work well it is wonderful. I want communities to work!”

If a partner in a law firm that “practices community association law on a daily basis” wants HOA communities to work — if legislators, as they asserted, want HOAs to work better for homeowners — and if homeowners desperately want their communities to work — then what is the problem?

Up To You

One step in the direction of making HOA communities work better was the establishment, in 2011, of the Colorado HOA Information & Resource Center, under the Department of Regulatory Agencies (DORA). This office was originally conceived as an ombudsman, or advocate for homeowners. Now, explained Riester, Director of Legislative Affairs for that office, “we provide information, tell homeowners what rights they have under the law, accept complaints and compile those complaints in a report that goes to the General Assembly.”

“When we file a complaint with your office, it doesn’t go anywhere,” said an older gentleman.

“At this time,” Riester said, “there are no bills that would increase the teeth of this office to enforce complaints.”

“Short of filing suit, where can homeowners go?” asked the gentleman.

“We don’t provide legal advice,” Reister said. “Just: these are the facts, now it’s up to you to do what you have to do.

“Our department is currently up for sunset review,” he added. “So please, if you think the office should have more teeth, give input.”

Hrincevich, who founded Colorado HOA Forum five years ago to “improve HOA governance through legislative reform,” took the mic.

“Here is what you’re not being told,” he began.

Bunk

“When the HOA office was created, the law provided for that office to investigate complaints,” Hrincevich said. “Right before the law was complete, that was taken out.

“Then in 2013 the CO legislature directed a study of HOAs in Colorado. The [resultant] study recommended that the HOA Office install out of court dispute resolution process for homeowners.”

“You have to be very careful with alternate dispute resolution,” interjected Matise, whose practice at BurgSimpson includes general counsel for homeowner associations. “It would be expensive.”

“That is bunk,” Hrincevich said. “It’s bunk to say it would cost money or be too hard. All the groundwork has been laid. Don’t need a committee. Don’t need any further studies. We keep riding politicians to do what the 2013 study recommended. But they ignore us.”

Profit Center

The discussion touched on various subjects like street jurisdiction (HOAs or city?) and disabled parking spots (how to get one), to which the panel had various, legalese-laden answers, but when the subject of Transfer Fees arose, there was no ambiguity. Panelists and residents agreed that the fees management companies charge for an HOA home sale were excessive and unjustified. Jim Smith, who has penned several Denver Post columns about “predatory transfer fees” said, “It’s nothing but a profit center for these companies.”

“When I was about to close,” said former HOA homeowner Nancy Markow, “I needed a status letter (showing dues currency) which I printed out myself. But they charged $150, then charged for that letter to go through something called Association Online, then through a company called Homeline for an additional….”            

In the end, Markow paid almost $1,000 in transfer fees.

Depending On Legislation

The discussion kept circling back to the CAM Licensing law. The four legislators said they were in favor of continuing licensing. Buck Bailey, a property manager, thought the current way CAMs have been licensed wasn’t working. Weissman said, “CAM is a profession that can control your property and your money.

“That’s why we want HB 1212 to pass,” said Weissman.    

A realtor observed how much responsibility lies on the shoulders of the HOA board, who have to negotiate contracts with the management company, a “problem,” she said, because these volunteer homeowners “do not know how to read a contract or have any idea of contract vocabulary.”

“These boards are running roughshod over homeowners,” said Teri Chavez.

“Board members do just what they want … because they can,” expostulated Candice Compton.

Panelists, acknowledging the ultimate power of HOA boards, advised a “can’t lick ’em, join ’em” approach.

“Become more engaged,” said Matise.

“If you don’t like what’s going on,” said Weissman, “get on the board and change it up.”

Homeowner Judy McGree Carrington protested. “You are looking at this from a privileged perspective,” she said. “The neighborhood I’m in is filled with working class people. They don’t have time to attend HOA meetings. They’re coming in from work, making dinner. When they do go, they’re shouted down.

“This is why,” emphasized Carrington, “we are depending on legislation. Because you can’t legislate morality. But you can legislate behavior.”

Challenge

“Before we leave,” said Hrincevich, “I would like each of the legislators to say they’ll support a bill for out of court dispute resolution. Without that, you can forget all about your governing documents, your state law, because there is simply no enforcement.”

Weissman finally broke the silence. “I am not willing to take away anyone’s right to go to court.”

Weissman was assured court would always be an option.

Buckner said, “I don’t know what the final bill will look like so I really can’t say.”

Fields said, “I don’t think I understand the subject enough to give you an answer,” Todd finally said, “[Homeowners] have to be protected. We’ll figure out something,” and the room burst into applause.

“This is my 15th year as a legislator,” exclaimed Todd, who is retiring, “and I just hope …, I never hear the word HOA again!”

Mystery

“HOAs are supposed to run on democracy,” said Teri Chavez, “but homeowners develop apathy because it doesn’t work out that way.”

“The rampant abuse of HOA boards and management companies will not end anytime soon if we are to depend on legislation,” said the realtor.

The legislators, on the other hand, voiced approval of what Fields called “a rich, thoughtful and constructive town hall.”

“I was shocked and disappointed that the legislators wouldn’t commit to anything being asked of them, however reasonable,” said Smith.

Hrincevich called the event “ornamental,” adding, “Legislators know these issues. Why they don’t do anything … is a mystery. “

Many have said that the reason legislators do not respond to homeowners’ needs is the presence of a powerful national lobby, the Community Association Institute (CAI), which represents the interests of management companies and HOA attorneys and other vendors benefiting from the HOA industry. (CAI’s membership is only 2% homeowners.)

One week after the HOA Town Hall, Hrincevich viewed a letter national CAI sent to its Colorado membership: that read in part, “We need you to email or call members of the Finance Committee and let them know you support HB 1212.” The letter explained how the bill had been “preamended” and “is the version we support.” The letter promised, “Bonus points if you can testify!”

“All our recommended changes were ignored,” Hrincevich said, “resulting in an ineffective licensing program. But CAI and special interests were able to preamend this bill. In other words, the industry that is to be regulated has successfully influenced the sponsors of this bill to include their interests. Is this the way government is supposed to work for the people?”