FALLS RUN COMMUNITY ASSOCIATION

Meeting Minutes:

The Falls Run Community Association, Inc.’s Board of Directors met on October 24, 2007 for a Work Session and Open Forum at the Center.

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

Also present: Sylva Southwell, Property Manager and Susan Manch, Regional Area Manager of Armstrong Management and Marvin Wagner, parliamentarian.

There were no corrections or additions to the minutes of October 10, 2007. Approved as submitted.

Mal Malo moved, 2^nd by Art Gabler to approve the 2008 budget as submitted. Carried unanimously. (See notes for details)

Art Gabler moved, 2^nd by Jim Stagner, to have Sylva approach Pulte’s manager, Kimmel Daniel, to ask if Pulte will agree to reimburse the FRCA for the total cost of repairs ($6,275) with the Association signing a waiver for any and all claims against Del Webb/Pulte regarding the alarm system and electrical system at the Center. The Association would also ask Pulte to accept the revised version of the waiver as prepared by our legal counsel, Ed O’Connell. If Pulte refuses to pay the full amount, Sylva is authorized to accept $4,875. Carried unanimously.

Toni Brown moved, 2^nd by Art Gabler, to form a special committee made up of Board members Toni Brown, Jake Bernard and Dan Owens as well as Marvin Wagner and Ann Jones to do a complete review of the Rules and Regulations and report their recommendations to the Board at the November 14^th Board meeting. New provisions regarding alcohol consumption and gambling will be treated as an addendum in the interim. The consumption of beer or wine will be allowed at the discretion of the residents and not limited to Center events. The motion carried six (6) to one (1) with Dan Owens voting nay.

Mal Malo moved, 2^nd by Jake Bernard, to adjourn at 12:00 PM. Carried unanimously.

November 3, 2007 – Pancake Breakfast with donations supporting the Wall of Honor - 9:00- 11:00 AM

The Falls Run Community Association, Inc.’s Board of Directors met on October 24, 2007 for a Work Session and Open Forum at the Center.

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

Also present: Sylva Southwell, Property Manager and Susan Manch, Regional Area Manager of Armstrong Management and Marvin Wagner, parliamentarian.

There were no corrections or additions to the minutes of October 10, 2007. Approved as submitted.

Verizon will be in the community from October 24 for three to four weeks, laying fiber optic cable. There will be two work crews from 7:30 AM through 4:00 PM each day, with clean up ending around 6:00 PM. The cable will provide Verizon television, high speed internet and telephone services. Channel 20 is provided by Cox and will not be available to Verizon customers. Verizon has a utility easement allowing them to work within the community.

There will be a 2.2 percent increase in the assessment bringing the monthly assessment to $140.00. The budget has been approved with a deficit balance of $73,116 which will be offset by retained earnings.

Mal Malo moved, 2^nd by Art Gabler to approve the 2008 budget as submitted. Carried unanimously.

The Budget will be available to the Community as of October 31, 2007. According to the Association bylaws 3.17(i) The Board shall post written notice in a prominent place within the Properties that the Budget is available at the business office of the Association or at another suitable location within the Properties. If any Member requests a copy of the Budget, the Association shall provide one (1) copy to the Member without charge by first-class United States mail and deliver such copy within seven (7) days of such request.

In addition to the above, notice will be given via Channel 20 and the Falls Run Web site. Sylva will respond to e-mail requests for copies that she will deliver if requested. Hard copies will be available for pickup at the Center.

The IRS submitted a questionnaire regarding Koger Management that has been completed. Armstrong will forward the questionnaire to the IRS, with a copy of the 2005 audit and other documentation.

Additionally, Ed O’Connell was asked to review the 2006 audit to be sure it will suffice as the basis of our claim regarding Koger Management to the insurance company. Mr. O’Connell suggested that Note 6 of the audit include some additional clarification regarding the accounts receivable from Koger Management. The suggested change has been forwarded to our auditor Kevin Cavanaugh and will be included in the final 2006 audit. With that change the Board is prepared to approve the 2006 audit. There are still unanswered questions concerning the accounts between the FRCA and the Villas that will be worked out over time. Any necessary adjustments can be made after the fact.

It is important to have a final audit to present to the insurance company by the deadline of December 5, 2007.

Mal Malo asked Armstrong to determine why the reserves contribution for the month of August is not reflected in the bank statement.

Also, charge accounts are not being paid in a timely manner causing late fees and interest charges to the account. There is a need to streamline the processing to facilitate payment to avoid these charges.

There was a brief discussion regarding the Board’s decision to leave the pots at the Middlebrook gate and to replant two dead bushes. There was an e-mail challenging that decision. Sylva reported that contrary to some comments concerning notification of the placement of the pots, a flyer was hand delivered to all dwellings in February 2007 announcing the closing of one lane at the Middlebrook gate and the projected placement of the pots. There was adequate notice to all residents in a timely manner from the beginning of placing the pots.

As has been stated previously, the Board looks forward to the gate ad hoc committee’s recommendations that will improve the appearance of the entrance while solving the problem of people “storming” the gates.

Sylva stated she is purchasing three new flags for the main gate. The Board is looking for a volunteer who will oversee the protocol of the flags to be sure we are flying them correctly during various periods, such as the death of a representative, etc. Toni stated she has a neighbor in mind who may be willing to take on the task. She will report back.

East Coast has corrected the problems with the alarm system at the Center. The original contract for repairs was in the amount of $4,875. Repairs to correct additional problems were completed for $1,400.

Sylva is working on obtaining surge protectors for the Desert Aire system and computer equipment.

Jack Mounts, chair of the Communications Committee is continuing his effort to assist in getting Armstrong Connect operational. Armstrong Connect will be a great communication tool for the community once it is fully established. As with all new information systems, it takes time, effort and patience to input all the necessary data to produce information that will satisfy different demands and requests. This is an on going process. The Board agreed that Sylva is already tasked to the maximum and agreed to hire a temporary person to assist in data input. Susan Manch will work with the Committee to fill that position. It was also agreed that Falls Run resident, Len Godek would be given access to Armstrong Connect to help evaluate the data base fields in order to help resolve any problems.

Jack stated that one of the real problems has to do with assuring that information from the Villas reaches the system and that coordination is required between Armstrong and the settlement departments.

We still do not have the entire census data collected. Sylva reported she is working on this.

Ann asked for Board input regarding some corrections and additions to the Community Center Rules and Regulations. As a result of discussion, Toni Brown moved, 2^nd by Art Gabler, to form a special committee made up of Board members Toni Brown, Jake Bernard and Dan Owens as well as Marvin Wagner and Ann Jones to do a complete review of the Rules and Regulations and report their recommendations to the Board at the November 14^th Board meeting. New provisions regarding alcohol consumption and gambling will be treated as an addendum in the interim. The consumption of beer or wine will be allowed at the discretion of the residents and not limited to Center events. The motion carried six (6) to one (1) with Dan Owens voting nay.

Sylva reported that Pulte manager Kimmel Daniel has promised that the easement will be complete by mid-November.

Chair Cindy Horan reported that the committee is establishing guidelines that will allow residents to contribute plantings to common areas. The committee is working with the Modification committee.

Accounting for Activity Director funds will be made a part of the FRCA financial statements effective January 1, 2008. The committee is working on procedures for recording transactions.

Chuck Heath announced that the last gardening clinic of the year will be held on October 29. Clinic will resume in March 2008.

The Board agreed that the committee should move forward working with Armstrong in whatever capacity is needed to fully implement Armstrong Connect.

Bob Brown announced a pancake breakfast will be held on Saturday, November 3, 2007 from 9:00 AM – 11:00 AM. Donations will help support the Wall of Honor.

Mal Malo moved, 2^nd by Jake Bernard, to adjourn at 12:00 PM. Carried unanimously.

November 3, 2007 – Pancake Breakfast with donations supporting the Wall of Honor – 9:00 – 11:00 AM