FALLS RUN COMMUNITY ASSOCIATION

June 21, 2006 Meeting Minutes

Meeting Minutes:

A quorum was present. Board members attending were: Bill Nosal, Toni Brown, Mal Malo, Jackie Richards, Art Gabler, Nancy Arnn and Dan Owens.

Also attending: Marvin Wagner, Parliamentarian and Chair Covenants Committee; Jeff Koger and Sylva Southwell, Koger Management; Jack Mounts, Chair Communications Committee; Jake Bernard, Chair Gate Committee; Paul Rankin and Jean Strub, Finance Committee; Bob Gilbert, Chair and Rich Lazanov, Community Center Committee

Nancy Arnn moved to approve and suspend the reading of the minutes of June 7, 2006. 2^nd by Mal Malo. Passed unanimously.

Dan Owens, 2^nd by Mal Malo, moved to accept a fitness equipment preventative maintenance and repair services contract with Fitness Resource in the amount of $4,088.00/year to be paid quarterly in the amount of $1,022.00. Passed unanimously.

Toni Brown, 2^nd by Jackie Richards, moved that we contract with Shenandoah to water all trees and shrubs in the common areas and the grassy common area on Smithfield near Goosecreek with a water truck at the cost of $75.00/hr (2 hour minimum). Passed unanimously.

Mal Malo moved, 2^nd by Nancy Arnn, to adopt the Assessment Collection Procedure as presented. (See attached) Passed unanimously.

Nancy Arnn moved, 2^nd by Dan Owens, to approve the Final Elections Committee Report detailing the 2006 Board of Directors election process , which includes modifications to the 2005 process

Toni Brown moved, 2^nd by Mal Malo, to approve a change to the By-Laws as follows:

New subdivision (b) of Section 3.18 to read as follows: Any owner contesting the ruling of the Charging Authority where the owner has a vested interest may request a hearing before the Covenants Committee. Such a request must be made within fifteen (15) days from the ruling of the Charging Authority or fifteen (15) days from the owner having knowledge of or receiving notice of the said ruling. Upon such request, the action which the Charging Authority has authorized shall be suspended until the appeal to the Covenants Committee, and a subsequent appeal to the Board of Directors, if any, has been finalized.

(Current subdivision (b) to become subdivision (c) and current subdivision (c) to become subdivision (d).

Toni also moved to approve proposed change to the Covenants, Conditions and Restrictions, which will be included with other changes to the CC&R’s that will be submitted to the members (owners) for their approval, as follows: Change to Covenants (Section 8.3, Article VIII). Change From: So long as the Reviewing Entity has acted in good faith, its findings and conclusions with respect to the appropriateness of, applicability of, or compliance with the Design Guidelines and this Declaration shall be final.

Amend to: So long as the Reviewing Entity has acted in good faith, its findings and conclusions with respect to appropriateness of, applicability of or compliance with the Design Guidelines and this Declaration shall be presumed to be correct.

Add to Section 8.3 of Article VIII: Any owner who has standing in the findings of the Reviewing Entity shall have the right to appeal these findings to the Covenants committee, as found in Section 3.18, subdivision (b) of the By-Laws.

Toni Brown moved, 2^nd by Jackie Richards to approve the changes to the Covenants Committee Hearing Procedures as presented by the Committee. (See attached).

The Falls Run Community Association, Inc.’s Board of Directors met on June 21, 2006 for a Work Session at the Center.

Bill Nosal, Jackie Richards, Toni Brown, Art Gabler, Mal Malo, Dan Owens and Nancy Arnn.

Also attending: Marvin Wagner, Parliamentarian and Chair Covenants Committee; Jeff Koger and Sylva Southwell, Koger Management; Jack Mounts, Chair, Communication Committee; Jake Bernard, Chair Gate Committee; Paul Rankin and Jean Strub, Finance Committee; Bob Gilbert, Chair and Rich Lazanov, Community Center Committee

***Nancy Arnn moved to approve and suspend the reading of the minutes of June 7, 2006. 2^nd by Mal Malo. Passed unanimously.

Jeff Koger was present to respond to questions from the Finance Committee. The Finance Committee had prepared an in-depth report on Financials through May 2006. This report was the result of an analysis of each entry to the accounts since January. A heroic effort the Board applauded. Jeff agreed the comments in the report accurately reflect the accounting process used by Koger Management. Mal Malo specifically asked about the Villas late payment of assessments to the Association. Jeff reported the Villas will, as of this date, make a payment in full to the Association on the 20^th of each month.

Rather than go through the report item by item, Mal suggested the two members of the Finance Committee convene with Jeff to discuss the various issues raised in the report and return later with a report to the Board.

The Board generally agreed that an issue of great concern is one of quality assurance and review on the part of Koger as well as follow through.

Paul and Jean returned later to report that Jeff agreed with all of their finding. All recommended adjustments will be made and Jeff will provide the Committee with answers to questions he was unable to answer today. The June financial reports will be reviewed before being presented to the Board. The Board and the Committee will be provided with a General Ledger Report and a Purchase History for June.

The individual involved in an incident at the Main gain has submitted a report, but has not submitted estimates for repair to the vehicle.

Census – There are still 106 census reports outstanding. Sylva will be working to obtain the remaining reports. We are well below the 20% of those under 55, but the Board agreed with Dan Owens that all residents must comply by returning their census questionnaire. There will be no exceptions.

Surveillance camera for the waterfall has been received and will be installed shortly along with a sign warning that the fall is being monitored 24/7.

Sylva will contact Shenandoah to be sure the irrigation system is functioning as it should.

The subject of holding a Farmers’ Market was revisited. After discussion, Art Gabler said the Community Center Committee will gather information about insurance, etc and report back to the Board.

***Dan Owens, 2^nd by Mal Malo, moved to accept a fitness equipment preventative maintenance and repair services contract with Fitness Resource in the amount of $4,088.00/year to be paid quarterly in the amount of $1,022.00. Passed unanimously.

Bill Nosal raised the problem of traffic safety in the Community. Speeding and not observing Stop signs as an example. What is the answer? There have been several close calls. Do we install speed bumps? Employ speed guns? The Board will bring the questions to attendees of the quarterly Board meeting on Thursday, June 22 for a show of hands.

Marv Wagner and Doug Filler have met to discuss the resident lawn care issue at length. They walked through the Community to be sure they were in agreement on how to judge the state of care for each individual property. It was also noted at many residents are not taking care of the sidewalk strip for which they are responsible. A letter is going out advising residents the Board will be enforcing Community standards of lawn care. The Board recognizes that seeding and feeding cannot be done until the fall, but at that point will not be lenient with residents who are not taking care of their yards.

***Toni Brown, 2^nd by Jackie Richards, moved that we contract with Shenandoah to water all trees and shrubs in the common areas and the grassy common area on Smithfield near Goosecreek with a water truck at the cost of $75.00/hr (2 hour minimum).

Shenandoah will be addressing the needs of all the common areas in the fall. We can water the trees and shrubs now and prevent them from dying during this extreme dry spell.

Fliers have been distributed to all residents notifying them that all gates will be closed as of 6/30/06 and informing them of procedures they need to follow and check on to be sure the gate will open. Legend gate is ready for programming. Everything will be done to assure that the gates will be as problem free as possible. Fliers will be distributed at the Board meeting on Thursday, June 22, 2006 and included with July billings from Koger.

The Property and Grounds have been working with Shenandoah for summer planting. The P & G Committee wants the community to be advised that planting at the Gladstone Gate and at the railing on Bridgewater will be put off until the fall. It is just too hot right now for plants to get a good start.

***Mal Malo moved, 2^nd by Nancy Arnn, to adopt the Assessment Collection Procedure as presented. Passed unanimously.

The Board agreed to table the Committee’s Request for Action to have the Board approve implementation plan for the Falls Run Information System (FRIS).

***Nancy Arnn moved, 2^nd by Dan Owens, to approve the Final Elections Committee Report detailing the 2006 Board of Directors election process , which includes modifications to the 2005 process.

Marvin reported the Committee will be holding its first hearing in the next week or two. The Committee has been reviewing the procedures for conducting such a hearing. During their review it came to the attention of the Committee that some changes would be necessary to clarify the By-Laws and the CC&R’s.

***Toni Brown moved, 2^nd by Mal Malo, to approve a change to the By-Laws as follows:

(Current subdivision (b) to become subdivision (c) and current subdivision (c) to become subdivision (d).

***Toni Brown moved, 2^nd by Jackie Richards to approve the changes to the Covenants Committee Hearing Procedures as presented by the Committee.

Toni Brown asked the Communications Committee to review comments presented in a letter to the Board from Tom Bovasso relating his concerns about the security of our Web site and evaluate whether we want to address any of his concerns.