FALLS RUN COMMUNITY ASSOCIATION

December 6, 2006 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on December 6, 2006 for a Work Session at the Center.

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

Also present: Brenda Dudley, Villas’ Board representative; Sylva Southwell, Koger Property Manager and Larry Ellis, Regional Manager, Armstrong Management.

Nancy Arnn moved, 2^nd by Jackie Richards, to approve and suspend the reading of the minutes of November 15. Carried unanimously.

Dan Owens moved, 2^nd by Nancy Arnn, to accept the results of the election for three seats on the Board of Directors. Elected for a two year term were Chuck Heath, Toni Brown and Jim Stagner. Carried unanimously.

Art Gabler moved, 2^nd by Nancy Arnn, to authorize Sylva to have stop signs installed at Smithfield and Harborton as soon as possible. Carried unanimously.

The Falls Run Community Association, Inc.’s Board of Directors met on December 6, 2006 for a Work Session at the Center.

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

Also present: Brenda Dudley, Villas Board representative; Sylva Southwell, Koger Property Manager and Larry Ellis, Regional Manager, Armstrong Management.

Nancy Arnn moved, 2^nd by Jackie Richards, to approve and suspend the reading of the minutes of November 15. Carried unanimously.

1. Jake Bernard has advised that he will no longer monitor and repair the gates or waterfall. Armstrong Management agreed to help find a contractor to work on a time and material basis to maintain both the gates and the waterfall. Dupree Johnson has volunteered to serve on the gate committee.

2. A final proposal to correct the heat buildup problem in the electronic equipment room will be presented to the Board soon.

3. Easement for lot #9 of property adjacent to Legend gate just needs to be recorded.

5. Mason & Mason’s proposed contract to do a Condition Assessment and Reserve Fund Plan update for 2007 has been signed and forwarded to Mason and Mason.

Armstrong Management will be sending out letters to all residents advising how the management company transition will take place and how monthly assessments are to be paid. Armstrong is equipped to handle several different methods of payment:

2. Direct debit to your checking account that occurs each month automatically. This is their preferred method.

Armstrong asked Koger Management to provide an electronic list of all dwelling unit owners which Koger Management failed to do. Koger gave them a hard copy of the list which is being manually inputted into Armstrong’s system causing an obvious delay in getting information to the community.

The December 2006 payment to Koger is the last payment that should be made to them. Any residents who have paid advanced assessments to Koger will be given credit for them by Armstrong as part of the transition process.

As should be obvious, a smooth and successful transition depends upon Koger’s complete cooperation. So far, it has not been as smooth as we would like.

Bill requested a motion to accept the results of the election for three seats on the Board of Directors. Elected for a two year term were Chuck Heath, Toni Brown and Jim Stagner.

Toni gave a report prepared by Cindy Horan, Chair of Property & Grounds Committee.

The full report is attached. Bill Nosal commented that Farrar was very responsive to fixes and returned the next day to make necessary corrections. The County is carefully monitoring the work performed by Farrar and holding them to County standards.

The County discovered that many of our retaining walls were constructed without permits. These walls must be tested for structural integrity.

Results of lawn letters have been great. Yards are looking good. However, ten to fifteen percent of those notified have done nothing to repair lawns. This will be addressed in the spring. Chuck Heath has been very effective using an individual approach.

Preventative maintenance contract with Robert Payne Company is in place for Desert Aire system. Defective gas valve has been repaired. Pool looks good.

The Villas have selected Jeffery Charles & Associates, Inc. as their new property manager.

Two Budget Information Sessions were held at the Center on Tuesday, November, 28, 2006 and Wednesday, November 29th. The 2007 budget was reviewed and questions answered.

The audit for 2005 is still incomplete. The Board was advised by letter from Koger’s attorney that Koger has hired a CPA to help in gathering requested information. Our auditor has raised questions about transfers of funds that were not properly accounted for or tracked by Koger. Apparently there are discrepancies between bank statements provided by the bank and the same statements provided by Koger.

Mal Malo moved, 2^nd by Art Gabler, to accept Goldklang, Cavanaugh & Associates, P.C. to perform the 2006 audit. The cost will be $4,000.00 for the audit report, $275.00 for preparation of tax returns and $75.00 to cover administrative costs. Carried unanimously.

Mal has been successful in having the marketing contract Pulte/Del Webb signed with Cox Communication assigned to Falls Run. The Association anticipates approximately $10,000 annually in additional income as a result of Mal’s efforts.

The Board gave a special thank you to Mal for his diligence in following up on the Cox contract as well as working with our auditor’s regarding the 2005 audit. This has required considerable extra time and effort on Mal’s part. Another example of our community being well served by a dedicated volunteer!

A priority list review led to a lengthy discussion regarding the need to create immediate, although temporary, working space in the Center for our property manager. It was agreed that the Manager needs to be in the Center 90% of the time. The Board recognizes the need to expand our office and meeting space but sees that as a long range goal that will require extensive investigation, planning and budgeting. To that end the Board tasked the Community Center Committee to pursue that issue and come up with some ideas, suggestions and possible solutions. In the mean time, Armstrong Management will provide the Board with information on temporary systems that have worked for other communities who lack space as we do.

As part of the discussion on priorities a three way stop sign at Smithfield and Harborton was raised again. Art Gabler moved, 2^nd by Nancy Arnn, to authorize Sylva to have the stop signs installed as soon as possible. Carried unanimously.

The annual Board Meeting will be held Thursday, December 7, 2006 at Gayle Middle School at 7:00 PM. New Board members will be announced and sworn in. They will begin their terms January 1, 2007. An open forum will be held at the end of meeting.

The next working session of the Board will be January 3, 2007 at 10:00 at the Center. New officers will be elected. All residents are encouraged to attend.

On Wednesday, November 29, Bill Nosal, John Renninger and I walked the common area in Section One with Dan Nicholson from the County, and Chuck Bohr, supervisor for the work being done by Farrar. The purpose was to see if Section One is ready to be taken off bond.

Section One extends from the west side of Middlebrook Drive, behind Chantilly Place, over to the east side of Gladstone Drive, down to Bluefield Lane, and back up toward the Community Center. It is the smallest section, and does not have a pond or walking path in it's boundaries.

Section One is in good shape. There are a few spots that need additional seeding, and a small area on the hill at Gladstone that will need some rip rap placed to direct the flow of rain run-off. The woody, yellow mats installed on the slopes to hold the grass until it becomes established, should disintegrate over the winter. Chuck Bohr will overseed the bare spots now, see that the one drainage problem is repaired now, and remove all the plastic netting in early Spring.

Dan Nicholson's report to Brad Butler, from the Erosion Control office responsible for releasing the bonds, will mention the minor repairs and requirements noted above, with the recommendation that the bond for Section One be released. It will be up to Mr. Butler to accept or reject the recommendation. I will let you know as soon as we hear something.

Bill Nosal, John and I believe that the few spots that need repair will be taken care of by Farrar, and that Section One is ready for bond release.

Our next Property and Grounds meeting will be Thursday, January 11, 2007. There is a chance that the new management company will pay us a visit at that time. I will keep you posted.