FALLS RUN COMMUNITY ASSOCIATION

January 17, 20007 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on January 17, 2007 for a Work Session at the Center.

Bill Nosal, Chuck Heath, Jim Stagner, Toni Brown, Art Gabler, Mal Malo and Dan Owens.

Also present: Jim Armstrong, President, Armstrong Management; Sylva Southwell, Property Manager, Armstrong Management; Ann Jones, Activity Director.

Chuck Heath moved, 2^nd by Mal Malo, to suspend the reading and accept the minutes of January 3, 2006. Carried unanimously.

A motion was made by Mal Malo, 2^nd by Bill Nosal, to agree it is necessary to have Sylva at the Center on a full time basis. The motion carried with six yes votes; Dan Owens abstained.

Art Gabler moved, 2^nd by Dan Owens, to install “No Parking” signs at the entrance to the Legend gate. Carried unanimously.

The next working session of the Board will be February 7, 2007. Time to be announced. There will be legal and insurance briefings for the Board.

Dan Owens moved to adjourn, 2^nd by Chuck Heath, at 12:05 PM. Carried unanimously.

The Falls Run Community Association, Inc.’s Board of Directors met on January 17, 2007 for a Work Session at the Center.

Bill Nosal, Chuck Heath, Jim Stagner, Toni Brown, Art Gabler, Mal Malo and Dan Owens.

Also present: Jim Armstrong, President, Armstrong Management; Sylva Southwell, Property Manager, Armstrong Management; Ann Jones, Activity Director.

Chuck Heath moved, 2^nd by Mal Malo, to suspend the reading and accept the minutes of January 3, 2006. Carried unanimously.

Bill requested and the Board agreed that all edits to notes should be returned to Toni Brown, Secretary, within two days of her submission. (Special note: Toni writes the notes, emails to members of the Board for their corrections, input, etc. After completion of any edits received from the Board, the minutes are completed and sent out to the community along with the notes.)

Item 1. In regard to the easement from our neighbor near the Legend gate, Lot #9 Toni Brown asked why we are dealing with Pulte to process this easement. Sylva explained that according to the county the property needs an engineering study and new plat. Pulte has this information or the expertise to provide it and should bear all associated costs with obtaining the easement because Pulte placed the Legend gate pillars (monument) on property not belonging to Falls Run.

Item 2. Renovation at CC. The Board was handed quotes from Abby Construction Co., Inc. and Hand Construction. Toni Brown admitted her confusion about what these bids were for. She was advised they were bids for constructing an office space for Sylva in the Community Center where she can conduct her duties on a full time basis, in private. Toni voiced her objection stating that constructing an office went beyond what the Board had authorized at one of its last meetings. Her understanding was that the Community Center Committee was to determine a location in the Center where a temporary set up could be provided, while another committee explored options to create much needed additional space. Discussion ensued wherein Toni was brought up to date on what happened after the Boards January 3, 2007 meeting. An impromptu gathering of Board members and Jim Armstrong began to toss out ideas about how we could accommodate Sylva while also improving the use and layout in the Center. As a result, it was decided it would be wise to get some idea of how much such a project would cost before moving ahead. Hence, the bids. Toni made it clear she was not opposed to the idea, but was definitely opposed to the method.

A motion was made by Mal Malo, 2^nd by Bill Nosal, to agree it is necessary to have Sylva at the Center on a full time basis. Discussion followed. Jim Armstrong is a strong proponent of on-site management for a community of our size. On-site management serves to improve communications, travel time is eliminated, and the property manager becomes more efficient overall.

Item 4. The Mason and Mason Reserve Study report has been delivered to members of the Board electronically. Mason and Mason will be asked to present their findings at the Board’s February 21, 2007 working session at the Center. That meeting will begin at 7:00 PM.

Item 8. Accounts payable invoices were reviewed with the assistance of Finance Committee member Jean Strub, CPA, to insure proper coding consistent with our budget.

Item 9. Concrete work in question was to reinforce the Middlebrook gate arm pillars.

It was agreed to have an orientation session with legal and insurance advisors for the benefit of our new Board members.

Construction on the improvement to the communications equipment room should begin soon.

Mal Malo asked if Armstrong Management had reviewed and approved the snow removal contract. Jim Armstrong indicated he was satisfied as long as an escape clause was included.

Mal pointed out we are still without a maintenance contract for equipment in the weight room.

Armstrong Management mailed payment books to all single family residents, even those who had authorized an automatic debit as payment. Mal was concerned about any confusion that may result. Coupon books were ordered in December and Koger Management refused to give Armstrong a list of people using automatic debits which complicated the process.

Armstrong is still waiting for records from Koger. Mal received an email regarding a message from an employee of Koger stating their CPA will review the financial records of 2005 and 2006. After that review, the records will be picked up and signed for by members of the Board and Finance Committee (Mal Malo, Bill Nosal and Don Horan, Chair of the Finance Committee) with the assistance of our auditor, and then the records will be turned over to Armstrong and to the auditors for completion of the 2005 and 2006 audit reports.

In the mean time it was noted that Armstrong does not have the opening balances of accounts receivable. In other words, no record of the status of each resident’s account. Armstrong does not have financial statement opening balances, which could delay their ability to produce January 2007 financial statements in a timely manner. Jim Armstrong stated the transition from Koger is very sensitive right now. The biggest issue is transferring cash and being sure that all funds are transferred.

There will be a meeting of the committee Wednesday, January 24, 2007 at 10:00 AM at the Center. We will be discussing ideas for presenting information about proposed changes to the CC&R’s to the community. All are welcome and encouraged to attend.

Chuck has resigned as chairman. Robbin Sentell has been elected the new acting chairman.

Chuck and Janie Cindric, both certified Master Gardeners, will begin giving clinics every Monday, 8:30 AM – 12:00 PM, beginning February 5, 2007 to help residents with their gardening problems and questions.

The Board reaffirmed the Community Center Room Rental Rate. The rates are contained in a draft proposal presented by Ann to the Board at their September 19, 2006 meeting. The Community Center Committee is reviewing Community Center rules and room rates. Mal Malo pointed out that budget income is based on the rates per the draft. He asked the committee to keep the impact on the budget in mind while reviewing the room rates.

Dan asked that there be a review of the use of membership card to gain entrance to the Center. He would like to know that all residents are being asked to swipe their card.

The Committee will meet with Sylva Southwell to discuss resale information and welcome package for new residents. They want to agree on forms and information going to new residents.

Jim Armstrong suggested that a monthly New Resident Orientation program might be an excellent approach to welcoming new residents to the community. Chuck Heath announced that he will write a handbook for residents outlining the “ins and outs” of Falls Run including helpful information for the new resident.

Dan Owens asked about the status of the priority wish list. Bill Nosal suggested that list will be revisited after today’s meeting with committee chairs.

Art reported the recent blood drive was very successful. They ended up with approximately 25 donors. Another drive is scheduled in June.

Mal commented on the Mason and Mason report. According to the report our Asset Base (assets in general) is in good to excellent condition. The Asset Base has been increased in value from 5.6 million to 9.5 million, primarily due to adding the retaining walls which were not included in the last report as well as the streets, sidewalks, etc in the Villas.

The report recommends an increase in the contribution to the reserve account from $170,000 per year to $288,000 and states anything less will be deficit funding. Mason and Mason will be invited to comment on their report at our February 21, 2007 meeting at the Center at 7:00 PM.

Bill and Cindy Horan, Property & Grounds Chair, met with representative from Farrar, the contractor working on the common ground erosion and Storm Water Management ponds. Progress is still good.

As a result of a request from the Villa’s Board, Art Gabler moved, 2^nd by Dan Owens, to install “No Parking” signs at the entrance to the Legend gate. Carried unanimously.

A letter drafted by Jim Stagner and signed by Association president Bill Nosal on behalf of the Community was sent to the Stafford county Board of Supervisors regarding the required 50 foot buffer zone on the property at the corner of Plantation Drive and Gladstone to be developed as a medical facility. We asked that the county exercise their influence to have the developer leave the existing trees as part of that buffer. As it turned out, Mary Washington Hospital is rethinking their plans to build their proposed medical building on that parcel as it may be too small.

Bill announced that George Schwartz, Stafford County Supervisor, is creating a Beautification Committee to improve the appearance along the county roads and would like a volunteer from Falls Run. Janie Cindric expressed an interest. Bill will get back to her with more information.

Paul Niemi, president of the Villa’s Board of Directors pointed out that section 4.5 of the Falls Run Bylaws states: All agreements, contracts, deeds, leases, checks, and other instruments of the Association shall be executed by at least two officers or by such other person or persons as may be designated by resolution of the Board. Jim Armstrong advised that any two officers of the Board should be authorized to sign such documents. The Board will assure that such is the case in all future transactions.

1. How do we know whether a retaining wall erected on our property is common property or personal property?

Jake Bernard answered the question. All poured concrete walls are the responsibility of the owner of the property the wall sits on. All retaining walls in the Villas belong to the Villas Association.

2. A resident recited a problem she encountered with Armstrong Management about a payment she made in December that was not properly accounted for. Jim Armstrong will check on the incident and respond directly to the resident.

4. Al Heier, a resident of Falls Run, went to the county in March 2006 and signed up for “Adopt a Spot” - Plantation Drive. He then organized a group of volunteers to once-a-month clean Plantation Drive from HiWay 17 to Truslow. He has been very impressed with the amazing effort on the part of this volunteer group. He also stated he is opposed to once a week trash pick-up.

5. George Schwartz has his house for sale, but will continue to be a strong advocate for Falls Run after he moves.

6. Jake Bernard stated that the property from the Gladstone gate to Plantation does not belong to Falls Run but was dedicated to the County.

7. Will there ever be pillars at the Gladstone gate? Answer: There are no plans for pillars any time in the near or long-range future.

8. Is there any particular information collected by swiping a membership card when entering the Center? Answer: The computer program has the capability of issuing reports, but no reports are routinely utilized at this time.

9. A resident expressed concern about the constant water retention at the Gladstone Storm Water Management Pond. Response: Farrar is aware of the problem and more work will be done.

Dan Owens moved to adjourn, 2^nd by Chuck Heath, at 12:05 PM. Carried unanimously.

2. Received proposal for renovation at CC from Abby, $6400.00.,have not received Hand Construction proposal and have not received the name of Fairfax Contractor from Jim Armstrong.

3. Robert B. Payne replaced valve to unit "A". Art is researching whether this was the unit that was recently replaced.

9. Received Baird Concrete invoice, placed call to owner, work performed is not satisfactory.

10. Sent email to Shenandoah requesting update on unfinished cosmetic work where trees and bushes were removed. I have learned today that both Gordon and Robert are out of town, their father is ill.

12. Dead opossum was removed by Chuck Heath from Middlebrook Gate. Thanks Chuck:)

13. Friendly reminder that I will be at the AMS Alexandria Office on January 24, 2007 from 10:30 a.m.for training.

14. Requested "Welcome Manual/Handbook from other "Active Adult Communities" from Jim Armstrong, may not have allowed enough time for this to be furnished by tomorrow.