UNAPPROVED

WITHOUT CORRECTION, ADDITIONS OR DELETIONS

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of Meeting

 FRCA Board of Directors

Open Forum and Work Session

December 12, 2007

The Board of Directors of Falls Run Community Association, Inc. met at the Center on December 12, 2007, for a Work Session and Open Forum.  The meeting was called to order at 7:00 p.m. by president, Toni Brown.  The following Board members present:  Toni Brown, Jake Bernard, Don Horan, Jack Mounts, Harriet Schrader, and Chuck Strub.  Also present were Marvin Wagner, parliamentarian, Sylva Southwell, Armstrong property manager, and Mary Beth Spring, acting secretary.  Board member, Jim Stagner, was absent.

Toni Brown welcomed all residents present for the meeting.  She announced that a quorum was present and then introduced the newly formed Board to include the committees to which each board member is the liaison:

            Board Member                   Board Position                           Liaison to Committee

            Toni Brown                           President                                     Community Center

            Jake Bernard                         Vice-president                             Covenants and Restrictions

            Jim Stagner                            Secretary                                     Property and Grounds

            Don Horan                            Treasurer                                     Finance

            Harriet Schrader                    Director-at-large                          Villas

            Jack Mounts                          Director-at-large                          Communications and                                                                                                                     Elections

            Chuck Strub                          Director-at-large                          Modifications

Some of the recently elected board members had to resign committee chair positions.  New committee chairpersons were announced:

            Committee                                                Chairperson

            Communications                                         Norm Kolb

            Finance                                                      Jeanne Strub

            Community Center                                      Joe Schmidt

            Covenants                                                  Marvin Wagner

            Elections                                                     Margie Kramer (continuing)

Chuck Strub moved, seconded by Jack Mounts, to suspend reading of the minutes of the November 28, 2007, meeting.  Motion passed unanimously.

OLD BUSINESS

Personnel manual update

Jake Bernard moved, seconded by Harrier Schrader, that the board approve the FRCA personnel manual with job descriptions for the positions of activities director, concierge, and custodian (with modifications if required) and that all documents become effective 1/1/08.

The motion as stated was carried unanimously. (See notes for discussion.)

NEW BUSINESS

No resolutions offered.  See notes for details of discussions.

Don Horan moved, seconded by Chuck Strub, to adjourn the meeting.  Motion passed unanimously.  Meeting adjourned at 8:33 p.m.

Respectfully submitted,

Mary Beth Spring

Acting Secretary

Meeting Notes:

INFORMATION ONLY

NOT TO BE CONSIDERED MINUTES

NOT A TRANSCRIPT

Notes from FRCA Board of Directors

Open Forum and Work Session

December 12, 2007

The Board of Directors of Falls Run Community Association met at the Center on December 12, 2007, for a Work Session and Open Forum.  The meeting was called to order at 7:00 p.m. by president, Toni Brown.  The following Board members were present:  Toni Brown, Jake Bernard, Don Horan, Jack Mounts, Harriet Schrader, and Chuck Strub.  Also present were Marvin Wagner, parliamentarian, Sylva Southwell, Armstrong property manager, and Mary Beth Spring, acting secretary.  Board member, Jim Stagner, was absent.

Toni Brown welcomed all residents present for the meeting.  She announced a quorum was present and then introduced the newly formed Board to include the committees to which each board member is the liaison:

            Board Member                   Board Position                           Liaison to Committee

            Toni Brown                           President                                     Community Center

            Jake Bernard                         Vice-president                             Covenants and Restrictions

            Jim Stagner                            Secretary                                     Property and Grounds

            Don Horan                            Treasurer                                     Finance

            Harriet Schrader                    Director-at-large                          Villas

            Jack Mounts                          Director-at-large                          Communications and

                                                                                                            Elections

            Chuck Strub                          Director-at-large                          Modifications

Cox

Representatives from Cox Communications were introduced:  Ron Haynes, Direct Sales Representative, and Katherine Bohner, Account Executive.  Mr. Haynes first spoke about the history of his work with Falls Run for Cox. He then explained the changes that are coming about with the addition of digital phone service Cox launched here in August, the presence of Verizon as an option for Falls Run residents, and what is happening in the industry as a whole.  Mr. Haynes welcomes the competition, indicating it is always good for the industry and for the consumer.  He urges residents to educate themselves if they are considering switching to Verizon. 

The new digital television and other service, which has been mandated by the government, was originally due to be implemented in 2006.  That date has now been pushed out to 2009, and it could even be later.  The reason for this mandate is that the government needs more bandwidth, and this is requiring the industry to compress the airwaves use.  There should be little or no impact on television reception for those who receive their signals either by satellite or by cable as we do.  He also assured those present that there is no need to buy a new digital TV, because the cable will do the conversion.  That would only be necessary for people who are receiving their signal over the air.

Mr. Haynes went on to explain that “packet switch” is the wave of the future for phone service.  This will be digital telephone service.  The law requires that all analog phone service providers are allowed to use the copper wire to a customer’s outlet.  The same does not apply to fiber optics lines.  He advised that if a customer switches to Verizon’s fiber optics service (FIOS), the customer would be locked in and unable to switch back to another service provider if dissatisfied.  

Residents were able to ask questions and comment on their service experience in Falls Run.  Mr. Haynes encouraged residents who have any problem with their Cox service to call him directly on his cell phone:  540-379-2625.  He assured everyone that if the line is busy to please leave a message with a phone number and he would return the call.  He is also very willing to answer any questions residents may have about their Cox service and any comparison to the FIOS offered by Verizon. 

There was discussion about the exclusive marketing agreement FRCA has with Cox.  Cox provides the gate/channel 20 service and the basic cable service for all Falls Run residences.  Residents may order additional services from Cox and pay Cox directly.  In exchange for FRCA's agreement to provide exclusive marketing rights to Cox, the FRCA receives about $12,000 per year from Cox based on the amount of additional services purchased by residents from Cox.  The exclusive marketing agreement prevents FRCA from assisting Cox's competitors, such as Verizon, in marketing their products.  However, any resident may contact Verizon directly to inquire about their service, and Verizon can contact any resident directly to offer their services.  Should residents choose to switch to another provider away from Cox, they will lose the opportunity to have channel 20.  We will have our legal representatives review what FRCA can and cannot do because of the exclusive marketing agreement.

Ms. Bohner spoke briefly to address a question about the FRCA agreement with Cox.

End of Cox discussion.

Toni Brown announced that the outgoing president of the FRCA board, Bill Nosal, and his wife were involved in an auto accident this afternoon.  She could give no detail of their condition but stated this was why Bill was not present at the meeting. 

Some of the recently elected board members had to resign committee chair positions.  New and continuing committee chairpersons were announced:

            Committee                                                Chairperson

            Communications                                         Norm Kolb

            Finance                                                      Jeanne Strub

            Community Center                                      Joe Schmidt

            Covenants                                                  Marvin Wagner

            Elections                                                     Margie Kramer (continuing)

Open Forum

A resident asked when the spa would be available again.  It will be reactivated when the water restrictions are lifted.

Susanne Lazanov spoke about the large number of “For Sale” signs throughout the Falls Run community.  She asked the board to consider imposing a ban on these signs giving the following reasons: 

• For Sale signs, especially in the great numbers we currently have, send a message to visitors and even prospective home buyers that our community is in trouble.

• Owners of homes for sale already employ a realtor or some other means of advertising.

• Our restricted access makes it unlikely that prospective home buyers who are neither residents nor guests will travel through the community looking for signs.

• Residents with a house for sale undoubtedly tell their neighbors, which gets the word out to the community through the “grapevine”.

• If For Sale signs are banned, we might consider maintaining a list of homes for sale in the Center.

The proposal will be discussed by the board at their special meeting on Friday, December 14, 2007.

There were no other questions or concerns from the community.  The open forum was closed, and the working session continued:

Chuck Strub moved, seconded by Jack Mounts, to suspend reading of the minutes of the November 28, 2007, meeting.  Motion passed unanimously.

OLD BUSINESS

Report of joint board meeting, 12/10/07

Toni Brown reported:

• A final identification of the FRCA common areas is necessary in order to determine who is responsible for what.  This has been turned over to the property and grounds committee. 

• Financial concerns were discussed, specifically the money owed to the FRCA by the Villas for Villa operating expenses paid by the FRCA in error.  This has been referred to the FRCA finance committee for a follow-up recommendation to the Board.  Representatives from the Villas sit on the FRCA finance committee.. 

• The goal of both boards is to create a good flow of communication between the two boards.  They will come together for a joint presentation by legal and insurance representatives in January.  They will begin meeting quarterly in March 2008.

• Effective 1/1/08, Armstrong Management will begin collecting the monthly HOA dues from Villa owners.  This means Villa owners will now make two separate payments each month, one to Armstrong for HOA dues ($140 as of 1/1/08) and the other to the Villas management company (Jeffrey Charles) for those dues.

Personnel manual update

Jake Bernard gave background on this matter.  In late 2006 the board of directors began an attempt to adapt an Armstrong personnel manual for use by the FRCA.  Those currently employed by the FRCA are the activities director, the concierges, and the custodian.  The proposed final manual was reviewed by Marvin Wagner, Ann Jones, and the BOD.  Jake Bernard moved, seconded by Harrier Schrader, that the board approve the FRCA personnel manual with job descriptions for the positions of activities director, concierge, and custodian (with modifications if required) and that all documents become effective 1/1/08.

Discussion:  Jack Mounts asked if there is going to be a job description for the position of property manager.  Sylva Southwell works for Armstrong.  She works from the contract the FRCA has with Armstrong.  Jack Mounts would like the board to look at Armstrong’s job description for their property managers.  Toni Brown will put this on the agenda for the 12/14/07 meeting.  The motion as stated was carried unanimously.

Report and discussion – Sylva Southwell

• Automatic doors for front entry:  this was researched last year and tabled because of lack of available funding.  The company which bid on the project will honor the price already quoted.  If the board accepts the bid, the installation can proceed.  This will be discussed further at the meeting on 12/14/07.

• Rich Lazanov reported on the exploration of installing handicap ramps near the Center.  Because it is such a small project, he has only been able to obtain one bid.  A review of that proposal by the finance committee generated some questions and suggestions.  Therefore, the BOD is asking Sylva to talk again with the bidder with changes suggested and then report back to FRCA.

• An easement is needed near the Legend gate monument and lot #9.  The situation has not yet been resolved and is under continuation by the BOD. 

Community Center Rules and Regulations Revisions

The revised Center Rules and Regulations document requires a few more changes, but it will be published soon.  Toni Brown has submitted the revisions to Jake Bernard.  There are a few more changes, but it should be published soon.  One issue that was recently raised and brought to a reasoned resolution:  the requirement that an owner stay with a guest in the Center will apply only to those guests who are under age 18. 

Farrar Work Status

This company, hired by Del Webb Pulte, had 150 items on their work list.  They have addressed the majority.  There is still a bond on one of the SWM ponds. 

NEW BUSINESS

Hearing Update – Covenants Committee

Marvin Wagner reported that a hearing was held before the committee.  It concerned a difficulty between two neighbors about a dog.  It was resolved successfully.

2008 Armstrong Management Contract

Don Horan reported that the FRCA has a signed contract with Armstrong Management effective January 1, 2007 and to be renewed automatically.  Armstrong has given the finance committee a completely new agreement.  Mal Malo, former treasurer and board member, reviewed the new agreement.  It is noted that the new agreement does not reference our on-site manager, Sylva Southwell.  It also has a non-compete clause with a $10,000 payment due to Armstrong from FRCA for each instance should FRCA hire someone who has in the past worked for Armstrong.  Marvin Wagner stated that the FRCA has a standing contract with Armstrong and has no responsibility to look at a new contract. 

Don Horan moved, seconded by Chuck Strub, to adjourn the meeting.  Motion passed unanimously.  Meeting adjourned at 8:33 p.m.

Respectfully submitted,

Mary Beth Spring

Acting Secretary