FALLS RUN COMMUNITY ASSOCIATION

February 21, 20007 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on February 21, 2007 for a Work Session at the Center.

Bill Nosal, Jim Stagner, Art Gabler, Mal Malo and Dan Owens. Board members absent due to medical reasons: Toni Brown and Chuck Heath

Also present: Jim Armstrong, of Armstrong Management; Sylva Southwell, Property Manager, Armstrong Management;

Moion to suspend reading and approve minutes 2-7-7 moved by Art Gabler, 2^nd by Dan Owens, motion passed unanimously.

Mal Malo moved that the document be made part of the 2-21-07 meeting minutes Jim Stagner 2^nd the motion; motion is passed unanimously.

Dan Owens requested a motion for approval from the BOD for Jack Mount’s request for action 2^nd by Mal Malo, passed unanimously.

Bill Nosal sought a motion to pass that emergency contact information is available to management and the Board of Directors. (2^nd by Dan) passed unanimously.

Mal Malo moved to accept the disclaimer letter 2^nd by Art Gabler, passed unanimously.

The Falls Run Community Association, Inc.’s Board of Directors met on February 21, 2007 for a Work Session at the Center.

Bill Nosal, Jim Stagner, Art Gabler, Mal Malo and Dan Owens. Board members absent due to medical reasons: Toni Brown and Chuck Heath

Also present: Jim Armstrong, of Armstrong Management; Sylva Southwell, Property Manager, Armstrong Management;

Bill Nosal opened the meeting with an offer to discuss the recent snow; there were no homeowners that wished to discuss this.

Property Management report was read by Jim Armstrong, who answered questions and provided information regarding transition.

Email from Goldklang and Cavanaugh re: 2005-2006 audit was read. Summary of items missing for audit preparation will be requested from Koger Management again to complete the 2006 audit. 2005 draft audit letter has been completed, waiting for review by CPA firm. When it is approved the BOD will receive for their approval. When approved audit letter will be available to the community.

Action item list was read, enclosed with notes. Armstrong will provide status report once we have a complete action list.

Sylva provided server room update. Art provided a more in depth description as to why this work was performed, mainly due to fireproofing per the fire marshal’s inspection previously performed.

Mal Malo asked whether insurance coverage is provided for homeowner’s that travel off site with a Falls Run sponsored event. The answer was no. The idea of having homeowner’s sign a waiver when traveling to absolve Falls Run of any liability came up, and Jim Armstrong indicated that this would be a question for legal counsel. Jim Armstrong stated that insurance with respect to activities at center is on the action item list.

Good news, the Cox contract has been turned over to Falls Run from Del Webb. The provision for marketing has been assigned to Falls Run. A check in the amount of $3506 for the last quarter of 2006 was turned over to Armstrong Management for deposit. At the time of budget drafting for 2007, this amount was not budgeted for and may amount to $14,000 annually. Mal requested that Armstrong’s accounting department create a miscellaneous revenue account for this marketing income. Bill Nosal thanked Mal Malo for all the effort and the success he attained.

A Board of Director’s consent form will be drafted in lieu of a Board of Director’s meeting requesting that all Falls Run Community Association accounts still under Koger Management Group, Inc. be turned over to the Falls Run Community Association. Mal Malo and Bill Nosal will be signatory on all accounts that remain with Koger

Mal moved that the document be made part of the 2-21-07 minutes, Jim Stagner 2^nd the motion; motion passed unanimously.

Armstrong Management does not know the exact financial position of the Association due to lack of financial information and the possible inaccuracy of financial statements provided from Koger Management.

Mal Malo reported the 2005 audit is complete, but there are some documents missing for the CAB and Merrill Lynch accounts. Mal Malo read a letter from the Attorney General’s Office. A lawsuit has been filed against Koger Management. (Document will be attached to 2-21-07 minutes). Fidelity Insurance has been contacted; however, at present there is no proof that funds are missing. Signature cards have been changed on CAB account(s).

Bill Nosal commented that the Finance Committee of Falls Run detected irregularities all along.

Mal Malo addressed a question from the community asking why Falls Run is paying the sum of $140,000.00 for Armstrong Management’s contract rather than the $101,000.00 for Koger. Armstrong’s management fee is $6.00 per dwelling. The Finance Committee conservatively budgeted $140,000. The more accurate amount is $132,000. Mal noted that tracking Koger Management’s accounting discrepancies has created approximately $6,000 worth of legal fees, to date.

Two new members have joined the Community Center Committee, Bill Smith and Gary Guzman. Bill and Gary have been tasked with performing research on audio visual requirements to determine short and long-term needs.

The committee is not pleased with the current cleaning company. There are several options that will be entertained, one of which may be to have a handyman and in house cleaning person.

Mary Owens was tasked to perform research on the card tables tops in the community center. It was determined that some table tops required refinishing and others complete replacement. Mary met with Master Touch to inspect and provide a bid/proposal for work to be performed.

Toni Brown has been working on a Community Center Employee Manual. Bob Gilbert will be tasking a committee member to take on the completion of this manual.

The bleachers behind the community center by the tennis courts are being considered to be replaced with a planting area. This is partly due to the coverage of the bleacher amounts to more than the two community pools.

The Community Center Committee met with an architectural firm to research space planning for an onsite manager’s office. The architectural firm will provide scope of work and drawings in the very near future.

The Communications Committee is in the process of creating a welcome package to new homeowners, Jack Mounts is leading this project.

Dan Owens moved that the Falls Run Welcome Package to be developed per Jack Mount’s request for action, 2^nd by Mal Malo; passed unanimously.

Emergency Contact and the need for this information to be provided by homeowners was brought up. The emergency contact information will be accessible to Neighborhood Watch Committee, and management. Jim Armstrong confirms that emergency contact information will be incorporated into the Armstrong system.

Bill Nosal moved that emergency contact information to be available to management and Board of Directors, 2^nd by Dan Owens; motion passed unanimously.

FRIS and Armstrong Management are working closely to implement FRIS which will include the entire community, Villas and Single Family Residents. Jim Armstrong commented that the resale packages for the Villas and the Single Family Residents will be different due to different management companies. Jeffrey Charles Management and Armstrong Management Services, Inc. will be routinely exchange data and information to benefit the entire community.

As liaison Bill attended the Villas’ work session and reported that the meeting was very productive.

The lot on Plantation Drive and Gladstone that is owned by the hospital is very small and the latest update is that there are no plans for this property.

The road in front of all four entrances to the community belongs to Falls Run per VDOT.

Met with the Property and Grounds Committee, a charter for this committee was requested along with a wish list to be provided by the 15^th of February. Submitted and included with notes.

Sylva Penkov-Southwell noted four snow vehicles are assigned to the community, more than adequate per industry standards. There were problems that will be addressed and resolved. Management will create a flyer for the community “homeowner weather alert” which will include the responsibilities listed of the homeowners, management and the snow company.

Jim Armstrong stated snow plowing is the correct term rather than snow removal. Companies that perform snow pushing generally do other work seasonal work, and are not experts. The entire process will be reviewed for improvement; overall the contractor’s performance was good. Communication was in full force between Sylva and Goodfellers. It was a heck of a storm; there were 30 days straight of freezing weather. New procedures and protocols will be in place for the winter season of 2008.

Armstrong Connect has a feature for homeowner alert via telephone number. This feature will be utilized during storms and for any homeowner alert related topics. The gates to the community may be left open during snow fall/storms; delay in opening the center will be under review. Measures will be taken to improve the work and to keep the community apprised.

Homeowner requested an OK to create a service based committee to list vendors, services, etc. available to the Falls Run Community. Armstrong Management was requested to draft a disclaimer stating the service(s), action of contractor(s), and vendor(s) is not under the direction of the Board of Directors or management.

Mal Malo moved to accept the disclaimer 2^nd by Art Gabler, motion passed unanimously.

Bill Nosal stated the server room has been a problem since day one; there is a lot of equipment in the closet and no access. It was the way it was designed and installed; we had to “bite the bullet”. By adding equipment the temperature went up causing equipment replacement. The fire marshal was involved; steps were taken to bring this up to fire proof standards. Everything has been performed to code. Both rooms are fire rated.

Homeowner asked about exercise equipment list, this will be made available to the community to submit to their doctors prior to filling out the exercise form.

Villa homeowners are to be included in the alert program as long as they provide their telephone numbers.

Guard Rail was brought up, nothing will be done to the rail itself, but plantings have been planted to eventually cover it up.

No Parking signs will be ordered for Legend drive. People cannot park their vehicles on the street particularly during snow pushing.

Paul Niemi requested the term HOA cease being used. “It confuses people”. The term HOA is not used in the documents pertaining to the community. i.e. governing documents. He also mentioned that more environmentally friendly light bulbs should be considered for the community.

The Board moved to Executive Session at 8:55 PM to discuss delinquent homeowners’ dues.

Mal Malo moved, 2nd by Dan Owens, to accept and sign the Fitness Repair and East Coast Fire Protection contracts. Motion passed unanimously.

I imagine most of you want to talk about the recent winter storm (no doubt in the future to be referred to as the ice storm of 2007). The National Weather Service recognized early last week that it would be a serious storm due to it’s nature (ice, then snow, followed by more ice and then several days of freezing weather). On Tuesday afternoon the Federal Government shut down and sent it’s employees home as did state and local governments. The ice started that evening.

Wednesday morning dawned to a major storm problem. Locally the Quantico Marine Base closed to all but essential personnel to give the military time to clear their roads and sidewalks. Schools closed as they recognized that it would be unsafe for both staff and students to attempt to travel to the school. VDOT and contractors would have their hands full trying to clear the ice and snow. Private businesses were impacted too as Waste Management closed. Our trash did not get picked up, but it wasn’t because we had not cleared our roads, Waste Management did not pick up any trash in this area on Wednesday as they were closed due to road conditions throughout the area. We will not get credited for the non-service. This is what the legal community calls “an act of God”, and they are legally not responsible for the lack of service. Airports were effected the same way as they closed until conditions could be improved. Flights were delayed and canceled.

Thursday the freezing and re-freezing caused another set of problems. The schools remained closed, as many bus routes were unsafe. The snow that had been cleared off the roads froze into icy areas that made bus stops unsafe for the students. Our church had to cancel it’s monthly senior citizen luncheon as we couldn’t clear the church parking lot or entrances of ice in time for the lunch. Driving down Plantation I saw several secondary roads in neighborhoods that either had not been plowed at all or were covered with ice. It was a mess.

Friday the schools remained closed due to ice. In fact, the state basketball playoffs were scheduled, but many Northern Virginia schools had to cancel since the school parking lots and sidewalks were still icy. Some schools had to forfeit and were dropped from competition. The remaining ones had to go up to four days without practice before they could play again. Bottom line: the storm had a large impact throughout our area.

However, you are interested in Falls Run and what happened here. I will turn it over to Sylva now as she is the on-site representative of our management company. Armstrong manages the contract, monitors the contractor, and supplies quality control. Ken and John from the P&G committee also provide up to date information to Sylva as they are residents of Falls Run with interest in the snow removal activities. Silva will tell you what happened here, what the contractor and residents did and didn’t do, what lessons we have learned from this, and suggestions for improvement in the future. We always learn more from our mistakes. We will then be open for questions and comments from the board and from the audience.