HomeMy WebLinkAboutMINUTES Town Board Study Session 2024-10-08RECORD OF PROCEEDINGS
Town ofEstes Park, Larimer County, Colorado October 8, 2024
Minutes of a Study Session meeting of the TOWN BOARD of the Town of
Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the
Board Room in said Town of Estes Park on the 8th day of October, 2024.
Board: Mayor Hall, Mayor Pro Tem Cenac, Trustees Brown,
Hazelton, Igel, Lancaster, and Younglund
Attending: Mayor Hall, Trustees Brown, Hazelton, Igel, Lancaster, and
Younglund
Also Attending: Town Administrator Machalek, Special Counsel White, and
Deputy Town Clerk Beers
Absent: None
Mayor Hall called the meeting to order at 5:45 p.m.
COMIVIERCIAURESIDENTIAL INSURANCE OVERVIEW.
Town Administrator Machalek presented a broad overview of commercial insurance
issues in the Estes Valley, including statewide concerns on the availability and
affordability of property insurance, profitability issues for the Colorado market,
significant wildfire events, and increases in average homeowners' premiums between
January 2019 and October 2022. Through House Bill 23-1288, an unincorporated public
entity would be created to provide insurance coverage when such coverage would not
be available within the market. The timeframe for establishing the entity continues to be
January 2025 and remains a last resort for coverage capped at $750,000. As insurance
costs are expected to continue to rise, affordability of insurance would likely be
discussed at the next legislative session. He spoke regarding coverage challenges for
condominium homeowners' associations (HOAs) and House Bill 24-1108 requiring a
study for condominium HOAs, hotels and lodging facilities due by January 1, 2026. He
reviewed data obtained through an Estes Valley Survey which collected non-scientific
feedback from 255 residential, 40 commercial and 4 real estate agents on their
insurance rates. Highlights of the residential survey included: 50% of the survey
responses indicated premiums increased more than 25% in the past four years;
reflecting true cost of wildfire risk and low risk of hail; 50% of respondents reported
difficulty in acquiring insurance in the last four years; 40 respondents reported being
dropped by their carrier; wildfire risk was a primary reason for difficulty in obtaining
coverage and the reason they were being dropped by carriers; mitigation efforts by
property owners; and some insurance companies requiring mitigation to maintain
insurance coverage. Highlights of the commercial survey results included: 82% of
responses reported cost increases of more than 25%; 93% of commercial respondents
reported difficulty acquiring or renewing coverage; 19% reported being dropped by their
carrier; and similar difficulties with coverage as identified in the residential responses.
Breanne Edwards/President of the Estes Valley Board of Realtors (EVBOR) provided
input on agent experience, including contracts terminated due to debt to income ratio
being impacted by premium costs; uninsurable properties due to flood and fire risks;
counseling sellers on making insurance claims prior to selling or discussing with current
insurance providers whether they would take on a policy with new owners; most
insurance companies use data from prior years which impacts current sales/purchases;
and the EVBOR are advocating for updates to risk models to keep rates current. Town
Administrator Machalek reiterated the impacts on condominium and HOAs and
identified these properties as the most impacted in the Estes Valley due to their inability
to obtain full coverage or being limited to partial coverage. Staff expected more
information through a state study required through HB24-1108. Board comments and
questions have been summarized: Whether difficulties experienced in the real estate
market differed between Town properties and unincorporated areas; potential for
RECORD OF PROCEEDINGS
Town Board Study Session - October 8, 2024 - Page 2
insuring the cost of the loan versus the property value until the market changes;
whether declarations make insurance coverage more difficult; impacts for local small
insurance providers and impacts to rates for providers who cover areas nationwide; and
the value of promoting mitigation efforts in coordination with the Estes Valley Fire
Protection District.
The Board directed staff to submit the results of the survey to the State representatives
as they make decisions and to find opportunities to inform the public on ways to reduce
risk to the community as a whole.
FUTURE STUDY SESSION AGENDA ITEMS.
Town Administrator Machalek requested and it was determined the Purchasing Project
Delivery Tools would take place on November 12'2024, the Paid Parking Overview and
Future Funding for the Big Horn Parking Structure on November 26, 2024 and the
Scoping Project for Capacity Improvements on the Big Thompson River and Fall River
on January 28, 2024.
COMMENTS & QUESTIONS.
None.
There being no further business, Mayor Hall adjourned the meeting at 6:41 p.m.
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'BurinyVictona Beers, Deputy Town Clerk