Meeting Minutes:
UNAPPROVED WITHOUT CORRECTION, ADDITIONS OR DELETIONS FALLS RUN COMMUNITY ASSOCIATION, INC. Minutes of the Meeting of the Board of Directors June 27, 2007 The Falls Run Community Association, Inc.’s Board of Directors met on June 27, 2007 for a Work Session at the Center. The meeting was called to order at 9:25 AM by Bill Nosal, President. A quorum was present. Board members attending were: Bill Nosal, Mal Malo, Toni Brown, Art Gabler, and Dan Owens, and Jim Stagner. Also present: Marvin Wagner, Parliamentarian; Jim Armstrong and Sylva Southwell, Property Managers of Armstrong Management. Mal Malo moved, 2nd by Art Gabler, to immediately convene in executive session to discuss: A director replacement for member Chuck Heath who resigned June 13, 2007, appointment of a vice-president and liaison to the Modification Committee, delinquencies list, employee policies, and dog complaint. Carried unanimously. The Board reconvened in regular session at 10:20 AM. Bill Nosal announced the above items discussed during executive session. Mal Malo, 2nd by Jim Stagner, moved to appoint Jake Bernard to replace Chuck Heath as a member of the Board of Directors. Jake was selected by the Board based on the fact that he received the next highest number of votes in the preceding election. Using the By-Laws and the Articles of Incorporation as the authority, it was determined Jake’s term will expire at the end of the year. Five seats will then be vacant, four with a term of two years and one with a term of one year. Candidates will serve based on the number of votes received, the first four highest votes will serve for two years, the fifth highest will serve one year, or, in other words, the remainder of the 2007 term, thus ensuring staggered terms. Carried unanimously. Mal Malo moved, 2nd by Art Gabler, to appoint Dan Owens as vice-president. Carried unanimously. Liaison appointments were made: Toni Brown will replace Chuck Heath on the Modifications Committee and Jake Bernard will take Toni’s place on the Covenants Committee. Mal Malo, 2nd by Art Gabler, moved to direct Armstrong Management to write off four delinquent assessment accounts amounting to approximately $300. Accounts were deemed not worth pursuing for collection as residents have since moved and the amounts due were carried over from Koger accounting and could not be verified. Carried unanimously. Jim Stagner, 2nd by Art Gabler, moved to suspend the reading and approve the minutes of May 23, 2007. Carried unanimously. Upon the recommendation of the Finance Committee, Mal Malo asked the Board to approve investing in two CDs from funds in the reserve account at BB&T. Currently there is approximately $145,000 in the BB&T account. The Board agreed to purchase one CD in the amount of $75,000 and another in the amount of $35,000. Maturity dates are to be laddered against other CDs previously purchased. These will have a term of five years. The Finance Committee also recommended setting up a treasury direct account between our First Trust operating account which has a balance of $208,000 and the BB&T account. Treasury bills can be purchased without regard to the FDIC $100,000 insurance limit and will give the association flexibility to manage funds in ways that will provide more return on our investments. Armstrong Management was advised that the CD in the amount of $100,000 maturing on July 25, 2007 should not be allowed to roll over into another term, but is to be deposited in the BB&T account for future investment. Mal Malo, 2nd by Jim Stagner, moved to install rain sensors for sprinklers around the Center at a cost of $760.50. Carried unanimously. Jim Stagner, 2nd by Toni Brown, moved to accept Shenandoah’s proposal for creation of a Master Plan in the amount of $5,760. The plan will be created with input from the Property and Grounds committee, other interested members and Shenandoah. Final design of Master Plan is expected to be implemented over a period of years. Carried unanimously. Mal Malo moved, 2nd by Art Gabler, to adjourn at 12:10 PM. Carried unanimously. The next meeting of the FRCA Board will be an Open Forum session July 11, 2007 at 7:00 PM at the Center. The next working session will be July 25, 2007 at 10:00 AM at the Center. Submitted by: Toni Brown, Secretary Falls Run Community Association, Inc. INFORMATION ONLY NOT TO BE CONSIDERED MINUTES NOT A TRANSCRIPT Notes from Board of Directors Meeting June 27, 2007 The Falls Run Community Association, Inc.’s Board of Directors met on June 27, 2007 for a Work Session at the Center. The meeting was called to order at 9:25 AM by Bill Nosal, President. A quorum was present. Board members attending were: Bill Nosal, Mal Malo, Toni Brown, Art Gabler, and Dan Owens, and Jim Stagner. Also present: Marvin Wagner, Parliamentarian; Jim Armstrong and Sylva Southwell, Property Managers of Armstrong Management. Mal Malo moved, 2nd by Art Gabler, to immediately convene in executive session to discuss: A director replacement for member Chuck Heath who resigned June 13, 2007, appointment of a vice-president and liaison to the Modification Committee, delinquencies list, employee policies, and dog complaint. Carried unanimously. The Board reconvened in regular session at 10:20 AM. Bill Nosal announced the above items discussed during executive session. Mal Malo, 2nd by Jim Stagner, moved to appoint Jake Bernard to replace Chuck Heath as a member of the Board of Directors. Jake was selected by the Board based on the fact that he received the next highest number of votes in the preceding election. Using the By-Laws and the Articles of Incorporation as the authority, it was determined Jake’s term will expire at the end of the year. Five seats will then be vacant, four with a term of two years and one with a term of one year. Candidates will serve based on the number of votes received, the first four highest votes will serve for two years, the fifth highest will serve one year, or, in other words, the remainder of the 2007 term, thus ensuring staggered terms. Mal Malo moved, 2nd by Art Gabler, to appoint Dan Owens as vice-president. Carried unanimously. Liaison appointments were made: Toni Brown will replace Chuck Heath on the Modifications Committee and Jake Bernard will take Toni’s place on the Covenants Committee. Mal Malo, 2nd by Art Gabler, moved to direct Armstrong Management to write off four delinquent assessment accounts amounting to approximately $300. Accounts were deemed not worth pursuing for collection as residents have since moved and the amounts due were carried over from Koger accounting and could not be verified. Carried unanimously. A dog complaint was reviewed during executive session. The Board agreed on a satisfactory means of dealing with the complaint and Armstrong Management will handle. Landscape contractor Shenandoah was present and represented by Gordon Ashley and Robert Ashley. Gordon reported we are one-half way through the season. They have begun the process of building turf through power seeding and liming. Fertilization takes place in the fall. Gordon reported tremendous gains have been made, although we are not yet where we want to be. However, all is in place to achieve our goals. He stated this is a process that will produce results in two to three years. They continue to work the property for enhancements, such as tree replacements. Gordon explained that many original trees were planted too deep and will not thrive in our clay soil. Large native trees have suffered from the development process and will need to come down. Cindy Horan, president of the Property and Grounds Committee, pointed out that many residents are frustrated with the appearance of the common areas. The community is aware that Pulte’s contractor, Farrar, has been working throughout the community to satisfy the county in order to have the bonds released. Farrar products may be inferior to the products that Shenandoah would use. Shenandoah agreed to attend the next meeting with Farrar and Pulte in order to discuss with Pulte the possibility of using Shenandoah’s products rather than Farrar’s. That meeting will be July 11, 2007 at 9:30 AM. Jim Stagner, liaison to the Property and Grounds, will also attend. There have been reports of problems between Shenandoah’s workers and residents because of language barriers. After lengthy discuss it was agreed that residents should immediately call our property manager, Sylva Southwell with any complaints and comments and allow a chain of command to deal with any issues. Complaints need to be tracked and following a chain of command is the most efficient and effective way to handle. Questions about mowing were addressed. Mowing is done in one day. If an area is considered to be a problem where mowing would do more harm than good, that area is not mowed. A list of problem areas as determined by Shenandoah will be provided to our property manager. Trees and shrubs in the common areas have been watered every day for the past two weeks. It takes five days to make a complete cycle. Eight to ten hours per day at $75.00/hour. Shenandoah noted there has been no loss of trees or shrubs since watering began last year. The Bridgewater railing is being watered and there is evidence the trumpet vines are beginning to send out suckers. We need to be patient, put our confidence in the fact that Shenandoah is working to achieve the results we all want. It is imperative that all complaints be directed to Sylva Southwell. Toni Brown announced she will not be posting notes from the monthly Open Forum sessions. That was not a popular decision, and she was immediately booed down (just kidding). Against her better judgment, the Board agreed that posting brief notes would be in the best interests of the community. Toni quickly and good naturedly acquiesced. (Notice I have the power of the note writer.) Jim Stagner, 2nd by Art Gabler, moved to suspend the reading and approve the minutes of May 23, 2007. Carried unanimously. Reports: Communications Committee The Communication Committee with Jack Mounts as chair has worked very hard to provide the community with an information system that ultimately will work in conjunction with Armstrong Management’s data base. Data needs to be coordinated between the Communication Committee and Armstrong. There was a lengthy discussion wherein Jim Armstrong pledged management’s complete cooperation to have all data in place and updated automatically and regularly, although he did ask for volunteer help in putting this in place. Considerable discussion was devoted to an emergency contact list and to who should have access to this information. The list will be provided to our property manager, Sylva; Ann Jones, Activities Director. Additionally, a password protected computerized list will be available to concierges so they can assist residents in emergency situations. The list will not be published and will be used for emergency situations only. Finance Committee As of the May financial information provided by Armstrong, there is a $25,000 budget surplus. The Finance Committee has directed some questions to Armstrong which Mal Malo turned over to Jim Armstrong. Upon the recommendation of the Finance Committee, Mal Malo asked the Board to approve investing in two CDs from funds currently in the reserve account at BB&T. Currently there is approximately $145,000 in the BB&T account. The Board agreed to purchase one CD in the amount of $75,000 and another in the amount of $35,000. Maturity dates are to be laddered against other CDs previously purchased. These will have a term of five years. The Finance Committee also recommended setting up a treasury direct account between our First Trust operating account which has a balance of $208,000 and the BB&T account. Treasury bills can be purchased without regard to the FDIC $100,000 insurance limit and will give the association flexibility to manage funds in ways that will provide more return on our investments. Armstrong Management was advised that the CD in the amount of $100,000 maturing on July 25, 2007 should not be allowed to roll over into another term, but is to be deposited in the BB&T account for future investment. Budget time lines are nearing. The Finance Committee is asking Armstrong for a first draft budget by August 15 for their review. The Finance Committee will have their budget recommendations to the Board by September 30, and the Board will finalize the 2008 budget by the end of October for presentation to the community. All committees and liaisons need to be considering anticipated 2008 costs to be included for consideration in the budget. The committee also asked for help in establishing a list of all ongoing contracts indicating amount of contract and expiration date. Mason and Mason was asked to provide Falls Run with their final report which is expected to answer questions posed when their draft report was submitted. The 2005 and 2006 audits are still in limbo. There is no revised 2005 audit and no 2006 draft audit. Information continues to come in from Koger which causes the auditing firm to recheck their information. Property and Grounds The committee is mainly concerned about the common areas Master Plan and rain sensors for sprinklers around the Center. Mal Malo, 2nd by Jim Stagner, moved to install rain sensors for sprinklers around the Center at a cost of $760.50. Carried unanimously. Jim Stagner, 2nd by Toni Brown, moved to accept Shenandoah’s proposal for creation of a Master Plan in the amount of $5,760. The plan will be created with input from the Property and Grounds committee, other interested members and Shenandoah. Final design of Master Plan is expected to be implemented over a period of years. Carried unanimously. Boulders have been placed as a partial barrier at Gladstone gate. Additional wooden poles will be added as barriers. Poles will match other signs already in place. Community Center Committee New drink machine is in place. Drinks cost $1.00. Water will be added as a selection. The bleachers at the tennis court have been turned into planters and our insurance company has been notified of the change. The change will save the association over $800 a year in insurance fees. Bingo is back on, poker is being played. Things are getting back to normal. Issues with the pools are satisfied or being taken care of including the installation of a salt chlorinator in the outdoor pool. Activities Director, Ann Jones The Jimmy Buffet night at the pool was very successful. Ann sang (not at the pool party, but at the meeting) the praises of our new custodian, Lin Bailey. He is doing a phenomenal job. Everyone agrees he is exceptional. The next Gazette will be a combined July/August Gazette. There will be no delivery in August. After determining the cost of installing a stove in the kitchen is too costly, the committee decided to put the idea on the back burner (Bob Gilbert apologized for the pun). Modification Committee – No report Covenants Committee – No report Elections Committee Election Committee will hold a meeting July 12, 2007 at 10:30 AM at the Center to begin preparation for year-end election of FRCA Board of Directors. Five vacancies are on the election slate. Trash Removal Contract Request for Proposals has gone out with a June 30, 2007 deadline for submittals. Companies are being asked to bid on three alternatives: #1 Trash pickup via toters, two times per week Recycling pickup via bins one time per week #2 Trash pickup via toters one time per week Recycling pickup via bins one time per week #3 Six months, April thru September Trash pickup via toters two times per week Recycling pickup via bins one time per week Six months, October thru March Trash pickup via toters one time per week Recycling pickup via bins one time per week Management Action List Easement adjoining property by Legend Gate – Nothing new to report. Executive Electric has been notified that the alarm monitoring contract will be terminated effective July 15, 2007. We will continue to use Executive Electric for problems with the gates. Open Forum Question: What was the difference between actual cost and bid price to convert tennis court bleachers into planters? Answer: We are not anticipating any difference. Question: When will the Connect system available through Armstrong Management be fully implemented? Answer: As soon as possible. Residents need to sign up to be a part of the service which includes access to their Armstrong account. The system is also used for community wide notifications via telephone. Jim Armstrong will address methods for signing up for the service other than by computer. He will also determine whether Armstrong has the means to test the system once it is functioning. There is no cost to residents. The association pays $100/month for the service. Mal Malo moved, 2nd by Art Gabler, to adjourn at 12:10 PM. Carried unanimously. The next meeting of the FRCA Board will be an Open Forum session July 11, 2007 at 7:00 PM at the Center. The next working session will be July 25, 2007 at 10:00 AM at the Center.