FALLS RUN COMMUNITY ASSOCIATION

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on August 22, 2007 for a Work Session at the Center.

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

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

Mal Malo moved, 2^nd by Art Gabler, to approve and suspend the reading of the minutes of the August 8, 2007 meeting. Carried unanimously.

Mal Malo moved, 2^nd by Jim Stagner, to adjourn at 11:25 AM. Carried unanimously.

The next meeting of the FRCA is an Open Forum, Wednesday, September 12, 2007 at 7:00 PM at the Center.

The Falls Run Community Association, Inc.’s Board of Directors met on August 22, 2007 for a Work Session at the Center.

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

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

Mal Malo moved, 2^nd by Art Gabler, to approve and suspend the reading of the minutes of the August 8, 2007 meeting. Carried unanimously.

Annual liquor license has been accepted and the necessary investigation is underway.

Mal Malo will check with Al Venit, Falls Run resident, who has contacted JoAnn Davis, Virginia representative to Congress, regarding post office regulations that prevent individual boxes in front of each home. Mal will report his findings to the Board.

Armstrong management is working on a Request for Proposal for a Master Landscape Plan that should be complete the week of August 27.

The contract with American Disposal has been signed and reviewed by the Finance Committee.

Waste Management, the out-going trash company, can charge $75 for each unreturned garbage toter or recycling container. Sylva has asked that Waste Management provide an inventory listing homes that do not return toters. Some residents report they never received a recycling container or toter.

BEGINNING OCTOBER 3rd TRASH PICKUP WILL BE ONCE A WEEK. PICKUP DAY WILL BE WEDNESDAY FOR BOTH TRASH AND RECYCLING.

Once again, we are advised that there is an approximate $45,000 per year savings with the switch of trash companies with once-a-week pick up in the fall and winter.

As of the July 31, 2007 financial report received from Armstrong Management, the Association is under budget overall by approximately $40,000. It was pointed out that expenditure for snow clearing was $11,000 below budget and Cox Communication was $30,000 below budget. Cox may be under charging for their services. Mal will contact Cox to verify billing amounts.

Currently there is approximately $656,000 in cash and certificates of deposit in the reserve account.

Our current reserves are under funded because the original recommendation for contributions to reserves did not include the streets and sidewalks in the Villas. Mason and Mason has recommended that our annual contribution to the reserve funds be increased in 2008 from $170,000 to $288,000. The Finance Committee is reviewing the Mason and Mason recommendation and will report to the Board.

The draft 2008 budget from Armstrong Management will be submitted the week of August 27. The Finance Committee has been working on their projections to compare with the Armstrong submission.

A draft audit of 2006 was received from our auditors late Tuesday night prior to this meeting so it still requires study. The submitted draft shows Koger Management owing the Association $5,031 and the Villa’s association owing the FRCA $302,050.

Toni Brown pointed out that although the record may show the Villa owes the FRCA $300,000+, we all know the culprit is Koger Management. She expressed strongly her concern that the Villa’s has been put in a position to unfairly bear the brunt of this extraordinary circumstance.

An FRCA insurance claim was filed with Koger’s insurance company and was promptly rejected, which was expected. The Board is still exploring the filing of a claim with our insurance carrier.

Sept 5 the attorneys for all the HOA's (including FRCA and Villa's) with claims against Koger will have a meeting on the bankruptcy to determine the best way to proceed.

The FRCA Board would like to meet with the Villa’s Board in a meeting with our auditors. The date will be announced. September 6 or September 12 was suggested.

Requests for Proposals were sent out to seven insurance companies, two declined to bid. Bids are still being received. The Board is looking for a savings with change of company.

East Coast Fire Protection has been troubling shooting the fire alarm system at the Center. The entire system is questionable and may not have been installed properly. Fifteen zones, or specific areas within the Center, were not incorporated into the system. More investigation to determine ultimate responsibility for installation is under way. Pulte will be advised when findings are complete.

The special committee to review and update job descriptions of the activities director, custodian and concierges is still under way.

The election process has begun. Please submit nominations. Remember there are five vacancies to be filled on the FRCA Board. Villa residents are encouraged to nominate a representative.

The FRIS is currently on hold awaiting Armstrong implementation. Other more pressing concerns have taken precedence over FRIS, but Jim Armstrong will trying to sort out the timing and understands the need to make implementation a priority.

Residents are still not clear about new recycling rules and what will or will not be picked up. Jim Armstrong will clarify with American Disposal and report back.

Tree removal. Property and Grounds chair, Cindy Horan, requested and was assured that the P & G committee be given an opportunity to review Bartlett’s tree removal proposal.

Mal Malo moved, 2^nd by Jim Stagner, to adjourn at 11:25 AM. Carried unanimously.

The next meeting of the FRCA is an Open Forum, Wednesday, September 12, 2007 at 7:00 PM at the Center.