FALLS RUN COMMUNITY ASSOCIATION

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on September 17, 2007 for a Special Meeting at the Center.

A quorum was present. Board members attending were: Bill Nosal, Jake Bernard, Toni Brown, Art Gabler, Dan Owens, Jim Stagner, and Mal Malo.

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

The purpose of the meeting was to make a decision regarding the Fire Alarm System Assessment Summary submitted by East Coast Fire Protection, Inc. and to discuss the presentation as well as the documentation presented by Joan Ryan at the September 12, 2007 FRCA Board meeting. (Please see the attached notes for details of the discussion regarding Joan Ryan’s report to the Board on September 12, 2007).

Art Gabler, 2^nd by Jim Stagner, moved that East Coast be paid $4,875 by the Association to do repairs per their proposal dated August 7, 2007, identified as Phase I by the Board. Board will pursue reimbursement from Pulte for $4,875.00 to cover costs of Phase I. Carried unanimously.

A Town Meeting will be held at Gayle Middle School on Wednesday, September 19, 2007 at 7:00 PM.

The purpose of the Town Meeting is to inform all residents of Falls Run regarding the legal issues surrounding the Koger Management bankruptcy and potential insurance claims issues, as well as provide a report from our auditor on the 2006 draft audit.

The FRCA BOD will meet in executive session at 9:00 AM on Thursday, September 20, 2007 at the Center.

The purpose of the meeting is performance reviews, pre-budget planning and priority scheduling.

The Falls Run Community Association, Inc.’s Board of Directors met on September 17, 2007 for a Special Meeting at the Center.

A quorum was present. Board members attending were: Bill Nosal, Jake Bernard, Toni Brown, Art Gabler, Dan Owens, Jim Stagner, and Mal Malo.

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

In a follow up conversation after the September 12 Board meeting between Bill Nosal and Kimmel Daniels, Pulte General Manager, Bill made it clear the Board would not allow Executive Electric to attempt any repair to the Fire Alarm System.

As a result of that conversation, Bill reported that Pulte will reimburse the Association based upon a pay back to Pulte from Executive Electric. East Coast’s proposal for the initial repair work is $4,875.

Toni Brown asked for clarification of the Board’s position regarding the cost and scope of the work to be completed. After some discussion, it was agreed that the repair work would be accomplished in two phases. Phase I being the work described in the assessment summary provided by East Coast. (Available for resident review through Sylva). Phase II is any additional work to bring the system to full operational status, to include providing adequate power and adding a second telephone line, a requirement of the system that was not done initially. The cost of Phase II is not determined at this time. The Association will pay for all necessary work, and look to Pulte for reimbursement of all costs involved.

There was a general discussion with comments from members of the Board and residents attending the meeting. Jake Bernard opened the discussion by pointing out that many of the concerns raised by Joan Ryan were covered by the Transition Committee as well as earlier responses by the county. Jake reminded all that only the modular block walls and a long concrete wall behind Birchleaf Drive belong to the Association. All other concrete walls belong to residents. According to Jake, fifty percent (50%) of the walls were built after it was determined soil compaction was not stable enough to build the homes as close together as planned. Some of the walls are bigger and longer than originally planned; some were extended by homeowner’s requests. Things went on during the construction phase that were not part of original site plans.

In general, the Board discussed that many of the concerns addressed in Joan’s report have already been dealt with, or are in the process of being addressed by Farrar. It is well known that Farrar has been working in the community for months to complete repairs necessary to secure clearance of county bonds. Over all, the Association has received favorable reports regarding the work performed by Farrar. Art Gabler reminded all that Mason and Mason made visual inspections of the walls while preparing their reserve study and found no deficiencies in the walls owned by the Association.

Bill Nosal commented that Pulte would have walked away from Falls Run long ago, if not for Supervisor George Schwartz who put pressure on Pulte through the county which resulted in Pulte hiring Farrar, and Pulte’s wanting to move forward with Celebrate.

Once again it was emphasized that meeting the requirements of the county code may still not be satisfactory to Falls Run.

Toni Brown pointed out there is ongoing confusion in the Community about what the Association is responsible for. Where do we draw the line between what the Association is responsible for and what an individual resident is responsible for? Do we want to use the ‘power’ of the Association to further individual resident concerns? Joan Ryan suggested in her opening statement to the Board, “…..we as a Homeowners Association have the ‘clout’ through Stafford County to hold Pulte/Del Webb fiscally accountable (with no room for negotiation) for completing, in a thorough manner the jobs they are/were directed to do.”

The response of the Board was to declare the Association will not be involved with any issues or concerns that are the responsibility of individual residents.

Asked to comment, Doug Ryan questioned where the Association might find itself in the future with common walls that were constructed without permits and plans? Will there be adequate insurance to cover any potential liability caused by a failure of any of the walls? Should the Association be satisfied with only a visual inspection? Are conclusions after the fact acceptable?

Farrar did invasive inspections of block walls and corrected any deficiencies with all work inspected by the county. Farrar will provide Falls Run with a written report of their work when complete.

Reserves are being set aside as recommend by Mason and Mason and the Board just increased liability insurance coverage. (See September 12, 2007 Minutes).

Jim Stagner expressed his opinion, and the other members of the Board agreed, that Joan Ryan has performed an excellent service to the community. Using the Freedom of Information Act (FOIA), Joan has alerted the county that the residents of Falls Run are aware and prepared to gain satisfaction from Pulte and the county. Her actions send the word that this community is not asleep and unaware but is willing to take action.

The fact that the Association has never had official site plans, including ‘as builts’ was raised. Efforts have been made over the years to secure them without success. Sylva continues to request this information from the county. Jake pointed out that by now, these documents are filed on microfiche as county history.

Another resident expressed concern about the resident’s upkeep of retaining walls. They need to be painted, seams need repair, railings rust and stain the concrete.

Sylva responded that the maintenance of the resident’s walls would be subject to the same review as lawns and other design guidelines.

Will the Association sue Pulte, if necessary, to recover costs incurred to correct deficiencies? The Board’s position is the Association will go after reimbursement. Legal measures will depend on cost and chance of recovery and guidance from legal counsel.

There was discussion about the kind of grass seed used by Farrar (Kentucky 51/31) which is not recommended for lawns in our area... Shenandoah will use a higher grade of seed while over seeding the common areas.

The Board agreed to meet in executive session on Thursday, September 20, 2007 to discuss various sensitive issues.

Ann Jones reported the Falls Run has been issued a liquor license permit. Falls Run is the first HOA to be issued such a permit thanks to the efforts of Ann.

A Town Meeting will be held at Gayle Middle School on Wednesday, September 19, 2007 at 7:00 PM.

The FRCA BOD will meet in executive session at 9:00 AM on Thursday, September 20, 2007 at the Center.

The purpose of the meeting is performance reviews, pre-budget planning and priority scheduling.