FALLS RUN COMMUNITY ASSOCIATION

March 21, 20007 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on March 21, 2007 for their quarterly meeting at the Center.

following a report by Mason & Mason. (See separate report prepared by Vice-president Chuck Heath.)

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

Also present: Sylva Southwell, Property Manager, Armstrong Management; Ann Jones, Activity Director; Marvin Wagner, Parliamentarian.

Chuck Heath moved, 2^nd by Art Gabler, to suspend the reading and accept the minutes of March 7, 2007. Carried unanimously.

Art Gabler moved, 2^nd by Chuck Heath, to hire a full-time, 8 hours/day custodian/handy man at $16.00/hour. This position will replace the need for janitorial services which have proven unsatisfactory. Job description will be drafted and presented when he begins work. Passed unanimously.

Art Gabler moved, 2^nd by Jim Stagner, to approve the 2007 Indoor and Outdoor Pool Contracts with Douglas Aquatic as follows:

An ozone generator will be installed in the spa at an additional cost of $940.00. This system will enhance the spa’s water quality.

A salt/chlorine generator will be installed in the outdoor pool at an addition cost of $5771.36. Passed unanimously.

Art Gabler moved, 2^nd by Chuck Heath, to replace tops on seven card tables with wood grain Formica. At the same time the height of the tables will be lowered, if possible, to a more comfortable level. Total cost for seven tables $2,900.00. Passed unanimously.

At 9:15 PM Jim Stagner moved to adjourn, 2^nd by Chuck Heath. Passed unanimously.

The Falls Run Community Association, Inc.’s Board of Directors met on March 21, 2007 for their quarterly meeting at the Center.

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

Also present: Sylva Southwell, Property Manager, Armstrong Management; Ann Jones, Activity Director; Marvin Wagner, Parliamentarian.

Chuck Heath moved, 2^nd by Art Gabler, to suspend the reading and accept the minutes of March 7, 2007. Carried unanimously.

See attached report. Toni Brown asked for more information about the speed bump ordered for the Middlebrook gate. The speed bump will not be installed until the narrowing of the gate entrance to one lane has been tested. If the property manager is confident that narrowing the entrance to one lane is controlling the unsafe conditions at the gate, then the speed bump will not be necessary. It will be installed, if necessary, as a last resort.

Bill Nosal asked for an update on the easement at the Legend gate. Pulte needs to remove the light and add a buffer of trees before easement is signed by resident of adjoining property. Sylva will contact Jon Coker again for progress report.

There are ongoing problems with the Desert Aire System. Compressors A & B keep going off. More follow up is needed.

Shenandoah expects to turn on the sprinklers for the common areas in about two weeks.

The 2005 audit is complete and has been presented to the Board. (See previously submitted special report of auditor’s meeting held March 21, 2007 at the Center.) The 2006 audit should be completed by the end of April and it is expected to answer questions resulting from the 2005 audit.

Mal referred those in attendance to the article about Koger Management in the March 21, Washington Post Metro section.

He then read the following e-mail received from Koger Management Co. via our attorney:

We had a company meeting this morning and I wanted to inform you, prior to an upcoming press release, Mr. Koger is currently under negotiations to sell the company to NRP, National Realty Partners, which is a division of the Atchison Group. Nothing is changing for the Associations or myself, the new company is merging into our company, of course the name will change. All reimbursements to Association will still be completed, as Mr. Koger is

cover all Associations that have funds missing is ongoing. The Commonwealth monitor and auditor are getting reports turned in to them and will remain until all reimbursements are verified, they have spoken with several of the auditors which are working on audits in our office currently, and have found some errors by previous auditors. Several Associations have already received their reimbursements of verified monies missing. Only positive results in the future should come from this change.

Mal reported we have been successful in closing accounts at CAB bank in Arizona. Cashier’s checks for $270,000 are being sent directly to the monitor assigned to Koger Management’s forensic audit. He will be notified that the checks belong to FRCA.

Abbey Construction has been contracted to begin construction on the property manager’s office at the Center at a cost not to exceed $10,000 and is currently filing for county permits. It is hoped that construction will begin by the end of the month.

There was general discussion about hiring a full-time custodian/handyman to replace the current janitorial service which has been unsatisfactory.

Art Gabler moved, 2^nd by Chuck Heath, to hire a full-time, 8 hours/day custodian/handy man at $16.00/hour. Job description will be drafted and presented when he begins work. Passed unanimously.

Art Gabler moved, 2^nd by Jim Stagner, to approve the 2007 Indoor and Outdoor Pool Contracts with Douglas Aquatic as follows:

An ozone generator will be installed in the spa at an additional cost of $940.00. This system will enhance the spa’s water quality.

A salt/chlorine generator will be installed in the outdoor pool at an addition cost of $5771.36. Passed unanimously.

Special thanks were extended to Kurt Schaffert for sharing his exceptional knowledge of pool chemistry and pool operating systems with the committee.

Special thanks were extended to Mary Owens for her research and work on repairing the card tables.

Committee is working on a new Falls Run Community Telephone Directory and Site Map. The directory should be out by the end of April. The good news is that the total cost has been paid for with advertising. Each dwelling will receive a copy of the directory. Additional copies will be available at a cost to be determined.

The committee continues work on the Falls Run Information System with Armstrong Management. Tenant information is being obtained in the interest of complete records.

The committee is also reviewing the failure experienced with the Channel 11 system to determine what is causing it to break down.

Ann reported we received all new equipment (warranty) to repair the Channel 11 system rather than just replacement parts.

Committees and groups are reminded that they need to arrange for furniture to be put back to original configuration after use of any room at the Center.

Compliments were extended to Ann and the social committee for the very successful and enjoyable events at the Center.

Bill reported his attendance at the Villas’ Common Sense group meeting. He also met one on one with Jim Pierce of the Common Sense group. There was a joint meeting of the two boards in response to the 72 violations issued by the Villas Board. (The joint meeting was reported on previously.) The Common Sense group presented the Villas Board with a Request for Action at the Villas working session.

The committee is working on a Master Plan for the common area along with a cost projection.

Grass netting will be removed in a couple of weeks. Shenandoah is going to let the grass grow before cutting in order to allow it to become more established after the netting is removed. Common areas will be treated with pre-emergent and crab grass killer.

John Renninger and Ken Burke were recognized for being our "eyes and ears" contact to the snow contractor during the past months.

The committee is working on a new, simplified application form making it easier to apply for changes to property. New form will be in use by May 1

Each Monday Chuck Heath and Janie Cendric, both Master Gardeners, are available at the Center to answer your gardening and landscape questions.

Toni reported the committee has not been active since deciding not to go forward with proposed changes to the CC&R’s. The committee determined the suggested changes were not significant enough to warrant the expense and time required for attempted passage.

Denzil Willis is changing lot numbers to house numbers. Map will be presented on the inside back cover of the directory, but making it larger for the directory just doesn’t work out.

2. Why don’t we rent or borrow cones instead of buying them for use at the main gate?

They are not that expensive and will be available for use in other areas when needed.

New tables comparable to what we have would cost approximately $700 each. It was researched and determined

Bill Nosal announced there is a NO PARKING on streets rule throughout the community. However, we have been lenient when guest parking has been kept to one side of the street only and for a short period of time. Never over night. Any one who parks their vehicle on the sidewalk will be towed, period.

Parking on the streets during snow fall is strictly prohibited and large assessments will be given to violators.

It appears that our 7:00 PM meeting time for the 3^rd weekly work session has been very well received and should be continued as long as attendance remains up.

At 9:15 PM Jim Stagner moved to adjourn, 2^nd by Chuck Heath. Passed unanimously.

3-12-07 East Coast tested our system and found one faulty fire extinguisher, which will be replaced.

3-14-07 Contacted several new companies due to Baird not performing. (no one

3-14-07 Sent an email to Villa BOD and Jeff Turner, to date Goodfellers has not been paid for service at the Villas.

3-14-07 Ordered one speed bump for Middlebrook entry gate. It will be placed by the intercom. We may need to purchase one more, but I would like to keep the number of those down, we will see if one does the job.

3-14-07 Met at 9:00 a.m. to discuss office space. Scheduled an appointment with

cabinet company for Friday at 9:00 a.m. to discuss Concierge space. Waiting for proposal.

Called 3 additional concrete companies to meet for concrete work required at the community. Still waiting for a reply, (they do not seem to want to work) these were furnished by Jim Armstrong.

3-20-07 Ordered a brass "No Smoking Facility" for exterior wall of Community

Center. There has been smoking in the men's room and in the vestibule at the entrance of the center.

3-20-07 Purchased 10 orange cones to place at Middlebrook to acclimate homeowners to the one lane entrance.

3-20-07 Met with Cindy Horan to inspect the Gladstone Gate and the gaps that vehicles are driving through. I believe that since Mr. Stagner has an interest with this gate that I would like for him to take a survey of HO's in the are as to what the preference will be rocks or poles.

3-20-07 Purchased filing cabinet for Sylva's working files and have already

3. Installed photo sensor for exterior pole lights, these will work in conjunction with the timer