FALLS RUN COMMUNITY ASSOCIATION

July 25, 2007 Meeting Minutes

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on July 25, 2007 for a Work Session at the Center.

Bill Nosal, Toni Brown, Art Gabler, Dan Owens, Jake Bernard and Jim Stagner. Mal Malo was away.

Also present: Jim Armstrong and Sylva Southwell, Property Managers of Armstrong Management and Ann Jones, Activities Director.

Dan Owens moved, 2^nd by Jim Stagner, to approve and suspend the reading of the minutes of the June 27, 2007 meeting. Carried unanimously.

Art Gabler moved, 2^nd by Jim Stagner, to purchase a digital video camcorder and accessories to record important Falls Run Community events such as: Meet the Board Member Candidates sessions, Board meetings, etc. Purchase price not to exceed $1500. Carried 5 to 1 with Dan Owens opposed. (See notes for detailed information.)

Art Gabler moved, 2^nd by Dan Owens, to purchase based on the 20 July CD rates, a 36-month CD for $75,000 at 5.16% from Alliance Bank, and a 24-month CD for $50,000 at 4.94% from Congressional Bank. Carried unanimously. (See notes for detailed information.)

Art Gabler moved, 2^nd by Jim Stagner, to accept the bid by American Disposal for seasonal trash pickup in the amount of $117,703 per year. Contract to begin September 1, 2007. Carried unanimously. (See notes for detailed information.)

The contract with Cox is up for renewal. Upon the recommendation of the Finance Committee, Dan Owens moved, 2^nd by Art Gabler to extend their contract for one year. Carried unanimously.

Base upon a recommendation by Ann Jones, Activities Director, Art Gabler moved, 2^nd by Dan Owens, to allow food/snacks to be consumed on the pool deck ten feet back from the pool itself, and to continue to allow beverages to be consumed by the pool deck provided they are non-alcoholic and in a plastic container. Carried 5 to 1, with Jake Bernard opposed.

The Board has received a final audit report as of December 31, 2005 from our auditors Goldklang, Cavanaugh and Associates. That report is available upon request.

Jake Bernard submitted Chapter 28, Article VII – Zoning Ordinance and asked that it be read into the minutes. See below.

All residential developments with thirty-five (35) units or more that have access from private travel lane(s) or private access easement(s) shall establish and maintain restricted access entrance(s) to the development from any public street.

(a) Access restriction. Restricted access entrances shall be designed in a manner to inhibit free movement of vehicular traffic to and from private travel lanes or private access easements to public streets. Restricted access entrances shall include one (1) or more of the following mechanisms to restrict vehicular traffic:

(2) Gate arms, fences or vehicle obstructions that are remotely controlled by the owner of a unit or persons or vehicles possessing a special access pass.

(b) Design criteria. Restricted access entrances shall be constructed to meet the following additional design criteria:

(1) Turn around areas shall be provided for vehicles that are unable to obtain entry to the private travel lane(s);

(2) Gate arms, fences, or vehicle obstructions shall be located a minimum of one hundred (100) feet from any public street;

(3) Automated provisions shall be made to permit emergency response vehicles to enter through the restricted access entrance(s).

(c) Maintenance. Restricted access entrances shall be operated and maintained on a twenty-four-hour per day basis, three hundred sixty-five (365) days a year. Owners of a development upon which restricted access entrances are required shall adequately assure Stafford County of such perpetual operation and maintenance.

Jim Stagner moved, 2^nd by Jake Bernard, to adjourn the meeting at 12:00 PM. Carried unanimously.

The next meeting of the FRCA Board will be a Special Executive Session July 31, 2007 at 9:00 AM at the Center. The next Open Forum meeting will be August 8, 2007 at 7:00 PM at the Center. The next Working Session will be August 22, 2007 at 10:00 AM at the Center.

The Falls Run Community Association, Inc.’s Board of Directors met on July 25, 2007 for a Work Session at the Center.

Bill Nosal, Toni Brown, Art Gabler, Dan Owens, Jake Bernard and Jim Stagner. Mal Malo was away.

Also present: Jim Armstrong and Sylva Southwell, Property Managers of Armstrong Management and Ann Jones, Activities Director.

Dan Owens moved, 2^nd by Jim Stagner, to approve and suspend the reading of the minutes of the June 27, 2007 meeting. Carried unanimously.

Ann Jones presented a Request of Action initiated by Ann Jones and Margie Kramer to purchase a digital video camcorder and accessories to record important Falls Run Community events such as: Meet the Board Member Candidates sessions, Board meetings, etc.

Based upon the final recommendation in the Request for Action, Art Gabler moved, 2^nd by Jim Stagner, to purchase the following:

The purchase of the camcorder is provided for in the current budget. The Finance Committee will review budget allocation and allocate a portion of the cost to Activities Director’s budget with the balance of cost allocated to the FRCA.

Ann reported that the application for an annual liquor license is almost ready to submit.

(Please see attached Cindy’s report of meeting with Farrar on July 11, 2007)

Following a discussion of Shenandoah’s contracting with Pulte rather than Farrar to do the work on the common areas, (per attached report) the Board took exception to number three (3): If Shenandoah does do the work, we, Falls Run, will be responsible from then on to see that the common area is released from bond. The Board rejected this stipulation and agreed they would in no way accept the responsibility of seeing that the common area is released from the county bond. If Shenandoah wants to write up a proposal and Pulte accepts that proposal, that is between Pulte and Shenandoah.

The Board recognizes the benefit to the community to have Shenandoah perform the work in the common areas, but not at the expense of being responsible for the release of bonds.

The Master Planning contract, which has been approved by the Board, but not yet signed, states the following:

Shenandoah Landscape Services proposes master planning services for the designing of specific areas within the common spaces of the Fall Run Community. The planning work will be done utilizing the following procedure which will generate a set of scaled drawings that can be implemented over the coming years.

This level of planning for future installations involves communications between your landscape committee, Board of Directors, managing agents and any concerned residents. Goals need to be set which identify what the community wants to achieve with landscape enhancements. Specific sites will be selected for this master planning.

After identifying areas for landscape planning, scaled drawings of each site will be generated. This process will be aided with the use of site drawings provided by the community. Site conditions will be considered regarding sun exposure, drainage and resident impact.

Using the data from the site work, master plans will be drafted for these selected sites. Each plan will provide all necessary material units along with detailed planting layouts. This set of mast drawings will become the property of the community and will provide a plan for renovating and enhancing the landscape.

Shenandoah will provide all material and personnel for generating these master planning services for the Falls Run Community for the total of:

This will include all site work, drafting and up to 2 committee meetings with the community and/or management staff. Any revisions to the master plans will involve additional costs. Shenandoah can provide these services during either the summer or winter months when demands on drafting time are less intense and meeting schedules may be more accommodating.

Jake Bernard had submitted five (5) advance questions regarding the Master Plan for Common Areas Landscaping:

1. Are we getting a master plan for all of Falls Run or will it be as stated in Shenandoah's proposal "will be of specific areas within the common spaces of Falls Run"?

2. If we do not have "site drawings" that meet Shenandoah's requirements can they still do the job at no additional cost?

3. Some landscaping companies (Stafford nursery & Meadows farm) will refund the price for landscape drawings if you purchase the landscaping from them. Will Shenandoah do this?

There was some effort to answer Jake’s questions, but ultimately it was decided that since there was not enough time to address all of them fully, further discussion in answer to all of Jake’s questions and any others could be done at a meeting with Shenandoah on Thursday, August 2, 2007 at 11:30 AM at the Center.

It was agreed that Bill Nosal would sign the Shenandoah contact for the Master Landscaping plan after this July 25 meeting.

Cindy stated she is satisfied with Farrar overall, except for the product they used last fall in the common areas.

Money from the Certificate of Deposit at CAB maturing on 25 July 2007 is to be deposited in the BB & T Replacement Reserve account. This should raise the balance in this account to approximately $143,000.

The Finance Committee recommended to the BoD that Armstrong Management be directed to purchase two additional CDs, one for $75,000 with a 36-month term and the other for $50,000 with a 24-month term, using funds from the BB & T Replacement Reserve account. The two CDs should be purchased from banks paying the highest rate of interest for the desired term, provided that the FDIC coverage maximum not be exceeded during the terms of the CDs. Based on the 20 July CD rates, a 36-month CD for $75,000 at 5.16% would be purchased from Alliance Bank, and a 24-month CD for $50,000 at 4.94% would be purchased from Congressional Bank.

Art Gabler moved, 2^nd by Dan Owens, to implement the recommendation as above. Carried unanimously.

The Finance Committee interviewed six companies after receiving their bids on trash removal services. The committee provided the Board with an advance in-depth analysis of each company’s qualifications and experience along with their bids. Each company was asked to bid on three different options:

Based on all the information provided by the committee and discussion during the meeting, Art Gabler moved, 2^nd by Jim Stagner, to accept the bid by American Disposal for option number three – seasonal pickup as detailed above in the amount of $117,703 per year. Contract to begin September 1, 2007. Carried unanimously.

This represents a significant cost savings of approximately $38,000 over the present contract and a $8,270 difference between the cost of twice a week pick-up which American Disposal would do for $125,973.

The Board did not select the lowest bidder primarily because they are a very new company with only three trucks and they would have had to place an order for toters in order to supply our needs.

Don Horan asked that committees submit proposed expenditures for 2008 budget to Don Horan and Jim Armstrong by July 31. 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.

The Board has received a final audit report as of December 31, 2005 from our auditors Goldklang, Cavanaugh and Associates. That report is available upon request.

The 2006 audit is still incomplete. Toni Brown expressed her total and complete dissatisfaction with the continued delays in providing the audit report. As a result of her comments, Bill Nosal will contact Kevin Cavanaugh after this meeting to request an update and to try to determine exactly when we might expect some results.

Bill Nosal announced that our attorney, Ed O’Connell, is withdrawing as counsel in the matter involving Koger Management. There is a conflict of interest as he cannot represent both the FRCA and the Villas regarding Koger, therefore, he is withdrawing from both. However, he will make recommendations to the Board for a replacement. It has been reported that as of the latest information, there is approximately $2,200,000 unaccounted for funds involving several associations handled by Koger Management. The insurance for such claims is for $1,000,000. It was later disclosed that Koger has filed Chapter 11 bankruptcy.

The contract with Cox is up for renewal. Upon the recommendation of the Finance Committee, Dan Owens moved, 2^nd by Art Gabler to extend their contract for one year. Carried unanimously.

The committee has met twice. The committee established the following time line for the 2007 election:

Candidate nominations are very important. There are so many talented members of the Association who are very well qualified to serve on the Board of Directors. There are five vacancies to be filled during this election.

Your current Board is very anxious to have a full slate of candidates running to fill these positions.

New application forms have improved the approval system. Thirty-five applications were received and approved during July.

More residents are installing irrigation systems. That has had an impact on the appearance of the lawns. Last year the committee sent out 66 type four letters, and as of April of this year, 58 lawns were much improved. There have been no additional letters this year. The committee will expect to see continued improvement especially during the month of September.

Use of the new forms is mandatory along with drawings and pictures to help describe proposed modifications. Most all applicants are complying.

Jack announced the formation of a Welcome Committee. Joan Ryan, of the single family residents, and Mary Grace Niemi of the Villas will be heading the committee to welcome new comers to Falls Run. Part of that welcome will include a helpful packet of information to help them in the relocation process. Welcome to Falls Run!

Jack continues to ask our management company for status reports on the implementation of the Falls Run Information System (FRIS) with an interface with the Armstrong system. Jim Armstrong promised to respond to Jack by e-mail.

Final planning for Neighborhood National Night Out will be held July 26, 2007 at 11:00 at the Center. The committee is currently collecting small personal items to be sent to the troops. Collection sites are located at the Community Center.

A credit will be issued to the Association to off-set the number of days the outdoor pool was closed due to malfunction of the pool filter.

The Board agreed that all Falls Run employees will have the use of the exercise room, on their own time.

The Committee is organizing an ad-hoc committee to finalize the Personnel Manual. Residents with experience in human relations are especially encouraged to be involved. Meeting times to be announced.

Jim Armstrong announced four companies have submitted bids for a new insurance policy. Policy provisions will remain the same.

Dan Owens urged the Board to set up a planning and management evaluation session. Mary Owens has agreed to facilitate such a meeting.

Jake Bernard submitted Chapter 28, Article VII – Zoning Ordinance and asked that it be read into the minutes. See below.

(2) Gate arms, fences or vehicle obstructions that are remotely controlled by the owner of a unit or persons or vehicles possessing a special access pass.

(b) Design criteria. Restricted access entrances shall be constructed to meet the following additional design criteria:

(1) Turn around areas shall be provided for vehicles that are unable to obtain entry to the private travel lane(s);

(2) Gate arms, fences, or vehicle obstructions shall be located a minimum of one hundred (100) feet from any public street;

(3) Automated provisions shall be made to permit emergency response vehicles to enter through the restricted access entrance(s).

Jim Stagner moved, 2^nd by Jake Bernard, to adjourn the meeting at 12:00 PM. Carried unanimously.

Cindy provided the Board with a report of the July 11, 2007 meeting with John Farrar, Chuck Bohr and Pete Cook as follows:

Robert Ashley was not able to attend this meeting because of an emergency problem at another property.

The common ground is still under bond. John Farrar knows that these areas will need to be established and stabilized and he plans to do that again this fall. He will seed with Rye and K31 Fescue and there will be weed seeds. He also said that as long as something is established, the county does not care what it looks like.

We proposed the following question to John: Can Shenandoah take care of the common ground work this fall, and will Pulte pay for it?

He feels that something can be worked out. He will need to check it out with Phillip Buckler.

1. John Farrar wants the responsibility of taking care of the ponds and the area immediately around the top of the ponds.

2. Shenandoah needs to work up a price, per square yard or acre basis, stating what work will be done in what area.

3. If Shenandoah does do the work, we, Falls Run, will be responsible from then on to see that the common area is released from bond.

John Farrar also noted that Shenandoah’s bid will have to be competitive, that there will be a great deal of paper work involved, and Pulte may immediately reject the idea.

I talked to Robert Ashley yesterday, July 12, and he thought they may be interested. He also said that Shenandoah has a good working relationship with Pulte.

Pete Cook has offered Shenandoah free top soil from Celebrate to use in Falls Run. They will deliver, but Shenandoah will have to sift out the roots and rocks. Robert will contact Chuck Bohr and will check it out. The free top soil offer does not depend on Shenandoah taking responsibility for the common ground this fall.

A decision needs to be made by the Board. Does the Board want to pursue this? Should Shenandoah and Falls Run be taking on the responsibility of getting the common ground off bond?

1. The fall is fast approaching and the planning and paper work that Shenandoah will need to do should be done soon.

2. If the Board is not interested in this, then Shenandoah and John Farrar need to know ASAP.

Also, this may all fall apart if Pulte or Shenandoah will not consider this idea.

References given from Dunbarton Community, Augustine North, and Woodstream. Two were very positive and the third was OK.

Claims adding Falls Run would not overextend capability. Can be ready for 1 September startup. Toters and bins on hand.

Located in Manassas. 450 employees; 130 trucks. Oldest truck less than 6 years old. Constantly getting new trucks.

Have own mechanics; 24 hour facility for maintenance and repair. Drivers daily log identifies defects and they are fixed overnight.

Truck break down: They have a spare for every 10 trucks on the road. Two hours down time - tops - for broken truck.

All drivers have CDLs and are certified for truck types they drive. Random drug testing!

Prices quoted are for full contract term (40 months), except they would like to negotiate an annual inflation (CPI) adjustment. They are willing to take the hit on fuel costs unless they become really bad, so this will have to be negotiated. (However, adjustments for landfill fees and local mandates are already allowed in our draft contract.)

Costs for toters and recycling bins included in base contract price; no additional charge.

Plastic bags of trash outside of toters will be picked up; no additional charge.

Additional fees or increases associated with the contract for inflation (CPI) and extremely high fuel costs must be negotiated. Our draft contract provides two increase causes.

Size change requests can be taken care of at initial distribution if known, or at a later time.

No issues, concerns, or exceptions except for inflation (CPI) adjustment and extremely high fuel costs and possibly a few other minor items.

Snow: If on twice-a-week schedule, no make up collection. If on once-a-week schedule, snow could trigger a make-up pick up; to be negotiated.

Christmas & New Year’s Day: If on once-a-week schedule, they will come on an alternate day.

They would propose service on Wednesdays and Saturdays and move recycling to one of those days.