December 7, 2006 Annual Meeting Minutes (Corrected)

Meeting Minutes:

 DRAFT 2

 

 

CALL TO ORDER:

 

Mr. Nosal called the Falls Run Annual Meeting to order at 7:00 p.m.  Mr. Nosal thanked everyone for coming to the meeting.

 

Board Members Present:   Bill Nosal, President

                                                                Nancy Arnn, Vice President

                                                 Mal Malo, Treasurer

                                                     Toni Brown, Secretary

                                                  Dan Owens, Director

                                                          Jackie Richards, Director

                                                Art Gabler, Director

                                               

Board Members Absent:           None

 

Management Present:    Sylva Southwell, Manager, Koger Management Group

                                               

QUORUM

 

Quorum was established.

 

2005 ANNUAL MEETING MINUTES

 

Ms. Arnn made a motion to suspend the reading and accept the 2005 Annual Meeting Minutes as submitted.  Ms. Richards seconded, and the motion was unanimously approved.

 

PROPERTY MANAGER’S REPORT

 

Ms. Southwell thanked everyone for their hard work this year and said she was glad to work for such a proactive community.

 

DIRECTOR’S REPORTS

 

President

 

Mr. Nosal thanked all the community volunteers for a great first year noting that Falls Run was a fantastic community.  Mr. Nosal also reported that this first year has been a year of discovering “stuff.”  He noted that some of the “stuff” had been fixed but there was still more “stuff” to deal with, as it takes time.

 

Director

 

Ms. Brown, as liaison to the Property and Grounds Committee, spoke of Shenandoah Landscaping and the long and short-term progress that has been made with the common grounds.  Ms. Brown reported that the BOD approved a three-year contract renewal with Shenandoah Landscaping as they offered a contract with no increase for the contract term.  Sub-committees were formed to help with the concerns of issues with landscaping, storm water management, roads, streetlights, and mailboxes.  Ms. Brown noted that the volunteers were very diligent in making lists of things for Del Webb to complete.  Del Webb hired a consulting firm, Ferrar and Associates, to get the community up to par with the county concerning bond releases.  Ms. Brown acknowledged that Shenandoah Landscaping had to step back until work is complete as directed by the consulting firm.

 

As liaison to the Covenants Committee, Ms. Brown reported that changes were made to the covenants to make them more ‘Falls Run friendly.’  The community will be notified of the changes over the next few months.  Ms. Brown noted that in April the BOD hopes the changes will be approved by the community with a minimum requirement of a yes vote from 66 and two thirds percent of the residents.

 

Director

 

Ms. Richards, as liaison to the Modifications Committee, reported that the design guidelines that were approved on July 19, 2006 are considered a living document to which changes can be made, as the committee listens to what residents have to say.  Ms. Richards touched on the difficult task of developing lawn standards but noted that things have improved because of the hard work.  It was reported that more than 400 applications were processed in 2006.

 

In closing Ms. Richards announced that she had a great year of learning a lot.  She chose not to run for a BOD position because she wants time to write a book.  Ms. Richards reported that the community is in good hands and thanked everyone for their outstanding work.

 

Treasurer

 

Mr. Malo announced that Falls Run is in a solid financial position with a good reserve fund.  Mr. Malo addressed the 2007 fees increase by noting that while a substantial operating fund was carried over from the developer, it is being eaten away.  Mr. Malo also noted that the 5.4% increase is the first since homeowners moved in.  He added that a conservative approach was taken in developing the budget.  Mr. Malo reported that Mason and Mason will do a Reserve Study update to insure that the account is adequate and added that the money is conservatively invested earning 5% interest.  Residents wishing to see charts with a breakdown of where the budget is spent can contact Mr. Malo.

 

Concerning a new management contract, Mr. Malo reported that a very detailed RFP was sent out and the BOD chose Armstrong Management for 2007.  Concerning a marketing fee provision kickback from Cox Cable to Del Webb, the contract has been turned over and now Falls Run will receive about $12,000 per year from that.  Administrative problems have delayed the completion of the 2005 audit but Mr. Malo noted that it should be done soon.  He added that he did not expect any problems with the 2006 audit as an auditor has already been secured.

 

Director

 

As liaison to the Elections Committee, Mr. Owens thanked everyone for a successful election recently.  He noted that the committee asked for a digital video camera so that they can record election information and highlights to be broadcast on channel 11.

 

As liaison to the Communications Committee, Mr. Owens noted that they are working on several projects and using the results of the media survey to determine the best usage of the Gazette, the runner on channel 11, and the web page.  It was noted that some changes are already in place and more are coming.  Guidelines are being drafted for use of the communications media.

 

Director

 

As liaison to the Community Center Committee, Mr. Gabler reported a list of issues that had been dealt with.  He noted that a new cleaning contractor had been secured at a price well below what was being paid previously.  There is a new handrail down to the tennis court.  Preventative maintenance on the fitness equipment resulted in alleviating the danger of having too much equipment in the room.  Some equipment was removed and more age appropriate equipment was installed.  Also, as a money saver, the BOD bought out the leases on the equipment.

 

Mr. Gabler announced that a local HVAC contractor had been secured and already repaired a humidifier with ongoing problems.  Mr. Gabler also announced that a committee had been formed to review and establish pool rules and procedures.  This topic will be reviewed and revised in the spring with community input.  It was also reported that the pool’s chlorine systems had been converted to a salt system.  Mr. Gabler and his committee are checking into problems with the community center furniture and trying to make the center more user friendly.

 

Vice President

 

Ms. Arnn, as liaison to the Villas BOD and Neighborhood Watch committees, noted that a Traffic Safety committee was established and the BOD approved the first measures taken.  Two stop signs on Smithfield will be installed as soon as possible.  Ms. Arnn noted that the walking patrols also deliver the Gazettes and inform residents if their garage doors are open or their garage lights are burned out. 

 

In closing, Ms. Arnn who is ending her term with the BOD, thanked everyone for their hard work and noted that there are good people working on good committees.

 

ACTIVITY DIRECTOR’S REPORT

 

Mr. Nosal reported that Ms. Jones has done a great job for the community as she puts in the extra effort needed.

 

ARMSTRONG MANAGEMENT COMPANY

 

Regional Manager Larry Ellis thanked the community for giving Armstrong a chance to work at Falls Run.  He reported that he, too, is an active adult and his company believes that this is an emerging market considering that 33% of the Virginia population is considered a Baby Boomer.  He noted that it was a pleasure to see such an involved community with so many volunteers.

 

Mr. Ellis explained to residents that they would soon receive a letter giving them information concerning their payments by coupon or automatic debit.

 

INTRODUCTION OF NEW DIRECTORS

 

Mr. Nosal introduced the recently elected directors:  Toni Brown, Chuck Heath, and Jim Stagner.  Mr. Nosal added that their first meeting for 2007 would be on January 3.

 

RECOGNITION OF DEPARTING DIRECTORS

 

Mr. Nosal presented Ms. Arnn and Ms. Richards with gift bags and thanked them for their dedication.

 

OPEN FORUM

 

Q:  Has there been discussion about decreasing the trash collection to one time per week to save money?

A:  Yes, having one trash pick up and one recycling pick up per week was discussed as a way to save money and it will be looked at by the new BOD.

 

Q:  If a lot of money has been spent on the common grounds shouldn’t Del Webb pay for it?

A:  Yes, we did get money from Del Webb.  Their contractor Ferrar is working on areas of erosion and storm water management pond issues.  All of their work is being paid for by Del Webb/Pulte.  The county inspectors are monitoring their work and will not release bonds until the work has been done to the county's satisfaction.

 

Q:  Would it be possible for the BOD to include a one-page insert in the Gazette to inform residents about what is going on?  And could the BOD meetings be bi-monthly instead of quarterly?

A:  The BOD has had more than 40 meetings this year when you include all of the work sessions.  Everyone is allowed to attend the work sessions and time is allowed for dialog.  We will consider the one- page insert.

 

Q:  Are contracts awarded for one year to see how the contractor performs?

A:  Yes, and each contract has provisions to terminate the contract if the company is not performing to standards set.

 

Q:  Are the walls in the community being inspected?

A:  Yes, the county required the builder to certify all walls.  It was discovered that some of the walls do not have permits.  All of those walls will be inspected and the ones with permits will be chosen randomly for an inspection.

 

Q:  What can be done about dog owners who do not dispose of their pets’ waste?  And are there any bylaws concerning cats?

A:  Concerning the dogs, if you can let the management office know the name of the offender a phone call can be made and a letter will be sent.  Concerning cats, let the management office know of the specific nature of the problem so it can be investigated.

 

Q:  Why is the management contract for $140,000?  That seems like a lot of money.

A:  The contract is actually for $132,000 but there is extra money built in for contingencies.  The current contract with Koger was for $101,000 and the problems may not be worth the savings.

 

Q:  Why can’t the community do it’s own management?

A:  We are not ready to take on the management of a community of this size.  It has been recommended that we have 1.5 managers on site.

 

Q:  Are there going to be any fishing ponds in the community?

A:  No.

 

Q:  Would it have been more cost effective to have the same management company work for the Villas as well as Falls Run?

A:  We don’t know for sure but that decision was made by the Villa BOD.

 

Q:  What will the intense heat of the summer do for the common areas?

A:  Last summer we had to bring in water trucks at a cost of $15,000.  We have budgeted  $11,000 for 2007 if there should be a need.

 

Q:  Will the changes to the covenants be presented to the community before the final vote?

A:  The changes will be sent out and the BOD will request that the residents approve them in April.  It will take a 66 and two thirds percent vote of yes to get approval.

 

Q:  Would it be possible to televise the meetings such as the elections and the budgets meetings?

A:  It is a good possibility if we can get the digital video camera that was requested earlier.

 

Q:  Can the covenants changes be broken down into sections for a vote?

A:  In January the residents will be made aware of the proposed changes piece by piece.  But the changes are a total package that must be voted on.

 

Q:  What does the property manager do besides collect fees?

A:  The community manager pays bills, conducts inspections, works with the Modifications Committee, and has a contract team that will help solicit bids, as well as numerous other tasks.

 

Larry Ellis, of Armstrong Management, informed residents of an upcoming feature called Armstrong Connect that will be able to answer residents’ questions about their particular community.  Mr.Ellis also noted that the contracts team has experts on pertinent subject matter and the insurance team can be used to get the best price/coverage as well as advising the HOA and processing claims.  There is also a transition team that will get Falls Run records from Koger and find out when contracts expire as well as dealing with contract compliance, payroll and cash management.

 

NEW DIRECTORS

 

Mr. Heath announced that, while he is fairly new in the community, he has experience with BODs.  He reported that his mission is to improve communications and looks forward to hearing from the residents.

 

Mr. Stagner explained that his 34 years of working with the Federal Government and a large budget gives him a good background for working with many people and the BOD.  He noted that he wants to work on continually improving the community.

 

Ms. Brown thanked residents for the opportunity to continue to serve the community.

  

ADJOUNRNMENT

 

Ms. Arnn made a motion to adjourn the meeting at 8:45 p.m.  Ms. Richards seconded, and the motion was unanimously approved.

 

 

Respectfully submitted,

 

 

______________________________

Ms. Toni Brown

 

Date Approved:_________________

 

Attested By:________________________     _____Recording Secretary____

                             Debbie Catron                                     (Title)