Meeting Notes:

INFORMATION ONLY

NOT TO BE CONSIDERED MINUTES

NOT A TRANSCRIPT

Notes from Board of Directors Meeting

February 1, 2006

The meeting was called to order by President Bill Nosal at 10:15 am. at the Center.

 Bill Nosal reported on meeting with John Seighman, Vice President of Operations for Executive Electrical.  At an earlier meeting there was general discussion regarding gates, lights, water fall and camera at main gate. John reported that all issues with street lights and gate were under control.  The camera is still a problem as well as the water fall pump.  He believes the pump is flawed some how.  He is going to try to shield the antennae at the Smithfield gate in an attempt to prevent opening the incoming gate while going out.  The gate will remain open until a car passes through.

The lighting at the gates was improved by changing the lights from in-ground lighting to above ground.  Lighting at Main Gate is much improved.  Smithfield gate is still too dark.  John declared that someone is purposely turning off the lights at Smithfield .  Locks will be put on all electrical boxes at the gates to prevent tampering.

 It was noted that we do not have a contract with Executive Electrical.  Sylva would like to interview other electrical companies for competitive bids.  That raises the problem of our warranty with Executive Electrical if we go with a different contractor.  How to pursue different contractors was not decided.

 Sylva’s report:

            BB & T – old credit card – Still not resolved, late charges still being assessed.

            The attorney has submitted the Affidavit mailer regarding Census to be mailed to all residents.

A general discussion followed in regard to selling to people under 55.  A realtor has been pushing the sale of a home to a 52 year old couple.  The Board was in general agreement that we do not want to sell to those under 55, however, in this case, the consensus was to let it be.  We are confident we are no where near the 80/20 ratio we are required to maintain.

 We did ask Sylva to clarify who can buy in our community.  We want to establish a policy – No sale to under 55 if possible.

 The census to determine the age of residents currently residing in Falls Run will be mailed and returning it is mandatory.

 Owners in the Villa on Turtle Creek are complaining of erosion which may be due to a leaking septic tank in an older home on Truslow Road .  The County is aware of the problem.  There was a suggestion to take photos to send to Dennis.

 Mailboxes on Sugar Grove (2) are back up.  Ordered from Mailboxes Etc to be billed to perp, if known.

 Sylva reported she has reviewed with Ann procedures for credit card and petty cash reconciliation.

 Mal remarked we need special account for Center/Social expenses.  We should open an account in the amount of __________.  This will be added to the priority list.

 The phone at the Legend gate has been turned off due to non payment.  Del Webb was unable to identify the number so did not authorize payment.

 There were invoices from Executive Electrical for approval.

 John Seighman of Executive Electrical prepared Legends of street lights and gates.  The Legends were handed out to Property & Grounds Chairman Jake Bernard, Villas liaison, Nancy Arnn, Sylva and the Center.

 Sylva has an engagement letter from the CPA for audited financial statements and tax returns.

Community Center – Art Gabler

Various areas have been assigned to different community committees.  Pool contract – indoor/outdoor will be available for next Board meeting.  The Committee will recommend to extend.  The contractor is Douglas Aquatics.

 There was a general discussion regarding lifeguards with the question, why do we need them? There is no requirement for life guard as far as insurance is concerned.   Sylva will investigate closed circuit TV’s for both pools and gym as an alternative.

 There is a defibrillator in the Center.

 The Committee will suggest that we convert from chlorine to salt in the pools.  Salt will increase cost marginally, but chlorine not good in closed room, too caustic.

 Pool deck has been painted.  Dennis Ouellette will repaint the pool area walls.  Drapes will be cleaned.  Dennis has promised to have punch list for Center complete by 3/1/06.

 Board was in general agreement we would like to return to night time janitorial services and explore different contracts as the current janitorial contract is very expensive.

 Villas – Liaison – Nancy Arnn

            There are 3 Neighbor Watch captains in the Villas.  Nancy expressed concern that residents are not picking up on the notices about the regular Board meeting.

 Finance Committee – Mal – Liaison

There is a scheduled meeting with Jeff Koger to discuss questions regarding the financial statements.  The meeting is schedule for 2/3/06 at 1:00 at the Center

 The Committee is working on a Contract Matrix which Mal gave to Sylva for editing.  Final copies will be handed out to Board members.

 Sonya Hamm is a prior federal contract analyst who has jointed the Committee and will apply her expertise to all contracts.

 Covenants Committee – Liaison – Toni Brown

 The Board asked Toni to submit the minutes via email for review.  Once the additions or corrections to the minutes have been made and approved, Toni is authorized to submit them to Dan Augustine, web master for inclusion on the web site.

There followed a general discussion about the problems of dog’s “calling cards” being left on the sidewalks and common areas.  What to do?  No answer to the question.  On-going problem.

 The Covenants Committee will authorize violations letter number 5.  The Covenants Committee will be the hearing Committee when violators request a hearing.  Board members will not be present at the hearings.  Residents have right to appeal to the Board for a final decision regarding their violations.

 The Committee has been productive.  Marvin Wagner has made administrative changes to the CC & R’s and has given them to Margie Kramer to edit into a new copy of the document which will primarily eliminate all references to Del Webb as well as other areas that do not specifically pertain to Falls Run such as neighborhoods, playgrounds, etc..

Modifications Committee – Liaison – Jackie Richards

 Violation letter number 4 still under review, when complete will go to the Board for approval.  Jack Mounts has resigned from the Modification Committee to avoid a conflict of interest and will continue as a member of the Covenants Committee

Communications – Liaison – Dan Owens

Dan wants Board to discuss paid employee for web, database, etc.

 It was pointed out that we have no contract with Breeden and Collier – The Desert Air System contractors.

 **Mal Malo moved that the Board assemble in executive sessions to discuss the Koger Manager Contract and compensation for Activities Director, Ann Jones.

The motion was 2^nd by Nancy Arnn and was carried unanimously.

 **The meeting resumed in open session with a motion by Mal Malo to accept Koger Contract as presented in Executive Session subject to minor editorial changes.

The motion was 2^nd by Jackie Richards.  Carried unanimously.

 **Mal Malo moved the salary of the Activities Director, Ann Jones, be increased per agreement during executive session, retroactive to January 1, 2006 to coincide with the fiscal year, and that this increase be in lieu of benefits excluding 2 weeks leave and 5 personal days per calendar year.  Leave will be subject to a policy to be developed.  A letter of confirmation will be given to Ann.

The motion was 2^nd by Nancy Arnn.  Carried unanimously.

 ** Mal Malo moved that the Board develop a Human Resource policy that would include all potential benefits for current and future employees full and part time.  The policy must include leave, payoff, carry over, use or lose, etc and that employee performance review be established for all full and part time, current and future employees.

The motion was 2^nd by Dan Owens.  Carried unanimously.

 The meeting was adjourned at 12:35 pm by motion from Mal Malo, 2^nd by Art Gabler.  Carried unanimously.