FALLS RUN COMMUNITY ASSOCIATION

June 7, 2006 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on June 7, 2006 at 10:00 a.m. at the Center at Falls Run.

Also attending Marvin Wagner, Parliamentarian and Chairman Covenants Committee; Sylva Southwell, Koger Management; Ann Jones, Activities Director; Jake Bernard, Gate Committee

Jackie Richards moved: For purposes of clarification I move that the following first sentence be added to the motion of May 17, 2006 minutes to change CC&R paragraph 9.14 Business Use to read:

On the recommendation of the Covenants Committee, add the following change in Section 9.14 Business Use to the approved proposed CC&R changes to be voted on by the Community in the fall of 2006. The motion was 2^nd by Mal Malo. Carried unanimously.

Mal Malo moved to approve the minutes of May 17, 2006 as amended and to suspend the reading of same. 2^nd by Art Gabler. Carried unanimously.

Mal Malo moved to accept the May 3^rd, 2006 recommendation of the Planting and Design Committee to implement the Shenandoah proposal for numerous landscape enhancements in the amount of $9,887. 2^nd by Jackie Richards. Carried unanimously.

Mal Malo moved to authorize up to $2,500 to the development of garden plot by the Garden Club. 2^nd by Toni Brown. Carried unanimously

Art Gabler moved: The Falls Run Community Association has voted to take advantage of the option to purchase for $1.00 all of the Life Fitness equipment under CIT lease number 1877-007. Therefore, I move that the Board authorize our property manager, Sylva Southwell, to issue a check to CIT in an amount not to exceed $15,000, to payoff the balance due on the lease. It is estimated that this action will save the Association about $150 in interest. 2^nd by Mal Malo. Carried unanimously

Mal Malo moved to adjourn at 12:00 pm. 2^nd by Jackie Richards. Carried unanimously

The Falls Run Community Association, Inc.’s Board of Directors met on June 7, 2006 for a Work Session at 10:00 AM at the Center.

Also attending Marvin Wagner, Parliamentarian and Chairman Covenants Committee; Sylva Southwell, Koger Management; Ann Jones, Activities Director; Jake Bernard, Gate Committee

***Jackie Richards moved: For purposes of clarification I move that the following first sentence be added to the motion of May 17, 2006 minutes to change CC&R paragraph 9.14 Business Use to read:

***Mal Malo moved to approve the minutes of May 17, 2006 as amended and to suspend the reading of same. 2^nd by Art Gabler. Carried unanimously.

1. Requested Board to consider approving a Farmers Market to be held on site. General discussion followed. No action was taken.

2. Presented a Calendar – Date Book with suggestion to produce for sale to residents. No action was taken.

3. Expressed concern about resident’s response to various rules that have recently been published. Ann will prepare a letter to be read at June 22, 2006 quarterly meeting to explain reasons for rules and acknowledge that that all seem to come at once. Bill Nosal pointed out that we are a “Community of Rules”

Bill, based on a letter received from a resident, complimented Sylva for her prompt response to a mortgage matter.

Sylva gave special thanks to resident Chuck Heath for his volunteer repairs to water fall after recent vandalism.

1. Middlebrook entrance – Island light post is in place. Should be operational by end of week.

3. Security camera (to be positioned on light post) has been ordered, but not received.

4. Census – Responses have improved since 2^nd letter went out. There were some clerical errors in recording original documents, but Sylva assured the Board that the confidentiality of all responses is secure.

5. Resident exterior inspections are on going. 38 letters went out in May. Continued inspections are schedules for June 12, 19 and 26^th.

Marvin Wagner, chairman of Covenants Committee expressed concern about process of lawn inspection. He announced that he and Doug Filler of the Mod Committee will be meeting on Thursday, June 8^th in an attempt to work out a program to facilitate correction of lawns needing attention.

Board agreed to hold off on issuing any further violations regarding lawn care until Marvin and Doug report back with their suggestions. Inspections will continue without regard to lawns in the mean time.

6. Smithfield gate arm, somewhat shorter than normal, has been reinstalled after unidentified incident. Replacement arms cost $400 each.

7. R. D. Samuels, an electrical contractor, corrected the problem in the circuit for the indoor pool motor. They replaced the under rated circuit breaker and installed the proper gauge wiring. Initial wiring installation, in violation of code, was insufficient to allow the motor to function properly. Circuit breaker was wired for 20 amps. Should have been 50 – 60 amps.

Bill Nosal expressed concern about the wiring throughout the Center and would like to have an overall electrical inspection of the Center. Currently there are 27 overhead lights not working.

8. Desert Aire – On going problems still unresolved. Suggestion has been put forward that Dominion Power is not supplying the necessary power for the correct operation of the system. Dennis Ouellette will be meeting with members of the Center Committee and the Board on June 15^th for further discussion of the Desert Aire system.

9. Water fall – Pump problem still not identified. Brickman will meet with Sylva on June 12^th at 9:00.

10. There was an incident at the Middlebrook gate. Arm came down on car of guest and scraped the back of her car. Investigation is in progress. There is no estimate of damage at this time.

11. “One car at a time” sign will be repositioned and a new sign installed “Gates close at 7:00 pm.

The Committee field tested the operation of the gate to see what effect a car passing through the gate and using a remote control to open the gate would have on a car that is using the entry control computer.

3. If punching in code – Code will be deleted and number needs to be reentered.

4. If interrupted while punching in code there is a potential of being locked out of system. See 5 below.

Various solutions were discussed. It was agreed that a notice will be distributed at the June 22 quarterly board meeting to all attendees. Same notice will be distributed to all homes and will be included in the July billing notice from Koger Management. Notice will explain in detail how to get along with the gates.

***Mal Malo moved to accept the May 3^rd, 2006 recommendation of the Planting and Design Committee to implement the Shenandoah proposal for numerous landscape enhancements in the amount of $9,887. 2^nd by Jackie Richards. Carried unanimously.

***Mal Malo moved to authorize up to $2,500 to the development of garden plot by the Garden Club. 2^nd by Toni Brown. Carried unanimously

***Art Gabler moved: The Falls Run Community Association has voted to take advantage of the option to purchase for $1.00 all of the Life Fitness equipment under CIT lease number 1877-007. Therefore, I move that the Board authorize our property manager, Sylva Southwell, to issue a check to CIT in an amount not to exceed $15,000, to payoff the balance due on the lease. It is estimated that this action will save the Association about $150 in interest. 2^nd by Mal Malo. Carried unanimously

Down payment has been authorized for tennis court railing. Installation should begin within the next couple of weeks.

Emergency checking account at BB&T bank in the amount of $2000 has been established.

Finance committee met with Jeff Koger at the Fairfax office. Jeff answered all questions asked by the Committee. General ledger was received. The Committee has received and has questions about the May, 2006 financial statements.

Resale subsequent fees are being collected according to analysis provided by Jeff Koger

Waste Management has submitted for unbilled charges for Villas service in the amount of $27,000. Sylva will meet with Waste Management to go over all charges before paying

Mal expressed concern that there were outstanding bills that have not been paid. Sylva will report back.

Jeff Koger has not responded to request for opinion on delinquent accounts procedure forward to him by Finance Committee several months ago.

Bill Nosal commented that the Board should go on record to say we are not happy with Koger’s performance as pertains to financial accounting. The Finance Committee has developed a 2 page document listing complaints regarding problems with the May statements. A general discussion followed regarding problems with the financials. Villas payment to Association is 3 months in arrears. An explanation is definitely required.

Violation letters have gone out. The committee is working on additional proposed changes to Design Guidelines.

Covenants Committee is working on proposed changes to CC&R’s to be submitted for a vote by the residents. A letter of explanation has been drafted to accompany the changes ballot. Voting will begin September 1, 2006 and end October 1, 2006 at 5:00 pm. All proposed changes will be fully explained.

The Committee will conduct its first Hearing on June 20 at the Center at 10:00. The Hearing Body, which shall be composed of at least three members of the Committee, shall have the ability to amend the charge to a lesser offense or alter the sanction imposed by the Charging Authority.

The Property and Grounds have done another round of inspections and updated previous reports which shall be turned over to Del Webb. The Landscape Committee has coordinated with Shenandoah to establish a priority approach to improvements to the common areas through out the community. As noted above the Board has supported this effort by approving the Committee’s request for funding in the amount of $9,887. Del Webb has agreed to provide $1,000 for improvements at the Gladstone Gate. Those improvements are included in the $9,887 and therefore the money from Del Webb will be an offset against the Gladstone costs. It will take time, but the Committee is encouraged by the work of Shenandoah to date and expect to see improvements in the fall when fertilization and seeding can be done to the greatest effect.

Work has already begun in preparation for Board elections to be held later this year. Three seats will be open to interested candidates.

***Mal Malo moved to adjourn at 12:00 pm. 2^nd by Jackie Richards. Carried unanimously