UNAPPROVED

WITHOUT CORRECTION, ADDITIONS OR DELETIONS

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Meeting of the FRCA Board of Directors

March 12, 2008 – 7:00 PM

The Falls Run Community Association, Inc. met at the Center at 7:00PM for an Open Forum/Working Session.

The meeting was called to order at 7:00PM by President, Toni Brown.

Board Members attending were:  Toni Brown, Jake Bernard, Chuck Strub, Jack Mounts, Don Horan, Harriet Schrader and Don Webb.

Members Absent:  None

Others Present:  Susan Manch, Armstrong Mgt., Ann Jones, Falls Run Activities Director; Sylva Southwell, Property Manager.

Merton Bunker, PE, Merton Bunker & Assoc gave an overview of his opinion regarding the fire sprinklers in the Center. (See notes for detail).

Lon Koenig, President of Douglas Aquatics, addressed the Board regarding the current condition of the indoor pool heater which should be replaced sometime in the future near. (See notes for detail).

Motion made by Jack Mounts and seconded by Chuck Strub to approve the minutes of the February 06 and February 27, 2008 meeting.  Carried unanimously.

Don Horan, Treasurer, spoke regarding the audits for 2005 and 2006, they stated that the villas owed $27,405 because FRCA paid for some of the Villas’ bills for maintaining lawns and insurance payments.  There has been a meeting between the both Boards, and they have reached an agreement, backed up by invoices, that the actual amount owed was $18,707.  A check has been given by the Villas to the FRCA.

A motion was made that we accept the check in the amount of $18,707

from the Villas as full payment of the amount declared to be owed in

the 2006 audit. The motion was seconded by Don Horan. Carried unanimously.

After some discussion regarding a study of the sprinkler system to be done by Merton Bunker, Jack Mounts made the following motion:

To award a contract to Merton Bunker for $1,550 to conduct a

          study of the sprinkler system in all areas of the Falls Run

          Community Center and the cause of repeated activation of sprinker

          heads without the incident of fire and make recommendations for

          remedies to prevent further occurrences and to report any other

          building problem areas noted in the study of the sprinker situation.

The motion was seconded by Don Horan.

Further discussion ensued.  Jake mentioned that the defusers need to be working correctly.  He said that the fire department does a courtesy inspection.

Motion was not passed 2 – 5.

Jack Mounts spoke about amending the Bylaws to provide for resident/tenant age verification.  He made the following motion:

          6.7 Verification of Age:  The Falls Run Community Association is

          classified as housing for older persons under Department of Housing

         and Urban Development, 24 CFR Part 100, Subpart E, para. 100.304;

         therefore at least 80 percent of its occupied units must be occupied by

         at least one person 55 years or older. To enable the Falls Run

         Community Association to continue to meet this reqirement for

         verification of age, all Falls Run residents should complete either the

        Age Qualification Statement or the Tenant Certification form.

Harriet Schrader seconded this motion.

There was considerable discussion following the motion.  We are in compliance on a real-time basis.  This verification is already part of the closing papers on a home.  We are in a good position.  Jake feels that the Bylaws is not the proper place for this.

Motion was not passed:  2 – 5.

The Board adjourned at 9:40PM

Submitted by Ann Graf, Volunteer Recording Secretary

Meeting Notes:

Notes are not to be considered minutes.  Notes are not a transcript

FALLS RUN COMMUNITY ASSOCIATION

MEETING NOTES

Date:  12 March 2008

Time:  7:00PM

Members Present:  Toni Brown, Jake Bernard, Chuck Strub, Jack Mounts, Don Horan, Harriet Schrader, Don Webb

Members Absent : None

Others Present:  Susan Manch, Armstrong Mgt., Ann Jones, Falls Run Activities Director; Sylva Southwell, Property Manager.

Toni Brown called on Mr. Merton Bunker, PE – Merton Bunker & Assoc. to address the sprinkler system in the Center.   Sylva asked him to give a proposal to take a look at our sprinkler system.  He is an accredited engineer.  He provided a proposal.  He discovered that we have a sprinkler issue.  There is hot air blowing out of HVAC at 180 degrees.  He is not sure if that was the cause of our sprinkler problem.  He has not found problems with the heads of sprinkler.  He has given Sylva some recommendations.  He will provide a written report if that is what we want.  He can also give a verbal report.  It is up to us to ask questions at this point.  Chuck Strub said that the HVAC needs to be checked.  Mr. Bunker’s proposal only addresses the sprinkler system.  Mr. Bunker stated that he referred someone to Sylva for HVAC, but will follow up with his contact.  Harriet Schrader mentioned that when the Fire Marshall came in, they said people were adjusting the thermostats and that could possibly have caused the problem with the sprinklers.  Mr. Bunker said that 90 degree air would not activate sprinkler heads.  Don Horan said that the sprinkler heads would not activate until temperatures reached 155 degrees.  A question from the floor asked if the sprinkler heads deteriorate.

Mr. Bunker stated that our sprinkler heads are from Gulf Viking Corp. and they have not had recalls.

Mr. Bunker said he would look at the entire Center. He also stated that Andrew Milligan of the fire department is very qualified to answer questions and make analysis.

Toni Brown then asked Lon Koenig, President of Douglas Aquatics to speak about the pool systems.  Mr. Koenig mentioned that as of late we have had increasing issues with heaters in the pool.  They probably need to be replaced.  He will present an estimate to Sylva for budgetary purposes.  He mentioned that water and chemicals are corrosive.  He has recommended types of new heaters.  Bob Gilbert asked if they have local inventory of parts.  Mr. Koenig said they do.  They use Hayward brand because they have a good relationship in the East Coast and are readily accessible.

He said we should be able to buy extended service warranties on new heaters.

The question was asked from the floor if we have titanium—Mr. Koenig said we don’t.  He said that Euro nickel for prolonged life is the latest and greatest--does not corrode.

 Toni Brown made the following announcements:

a.      Ann Graf is the volunteer recording secretary for this meeting.

b.     Joint FRCA/Villas meeting March 14, 2008 at 10:00AM.  There will be

       an important announcement regarding beautification agreement between

       the two boards.

c.     Finance chair, Jean Strub will be explaining basic elements of financial

       statements at each meeting for the next few months.

Management Report – Sylva Southwell

a.        Easement:  Lot 9.  Have not received answer from neighbor’s

Attorney.

b.  Sprinklers:  They have been replaced by East Coast.

c.  Automatic front doors at Center:  Spoke with Stanley Door

     yesterday.  A part has to be fabricated.  The new installation date is

     the later part of April, or first of May.

    d.   Flooring replacement – Center:  Sylva called upon Jo Schmitt for

               update.  Jo said that he asked three different companies to give an

               estimate on carpet and wood flooring comparable to what we

               currently have.  Our insurance company wanted three bids for this

               project.  Jo gave verbal rather than written requests for bid.

              Laminated floors were suggested for the multipurpose room to

              replace wood floors.  Jo hopes to have all the bids within the next

              few weeks.

e.      Touch- up work – Center:  Sylva said Abbey Construction submitted a proposal for approximately $900.  Another option is to see if Lin Bailey might be able to fit it into his schedule.

f.       2006 Census:  There was a meeting of the Ad-Hoc committee.  They reviewed the current status of the census.  There are 28 single family homes and 6 villas who have not responded.

g.     Replace AT&T telephone line at Middlebrook Gate with new provider: The system has been switched from ATT to Verizon, however it still shows Koger.  It should say Falls Run, not name a management company. Sylva will monitor and continue to work to correct.

h.     Letter to residents regarding Armstrong Connect and Alert:

             Armstrong is in the process of drafting a letter to residents

             explaining what Connect is.

Harriet asked Sylva if there has been success with delinquent accounts.  Sylva said there has been some response

.

Harriet then asked Sylva if she has heard from Verizon regarding removal of the paint off the streets.  Sylva has not heard back from them.

Treasurer’s Report – Don Horan:

CD’s invest Replacement Reserve money.  As of January 30, 2008, we have reinvested $205,000.  We are currently going out two years at 3.63%.  Other banks have higher rates, but we don’t want to go over the $100,000 FDIC insurance limit.

Regarding the audits for 2005 and 2006, they stated that the villas owed $27,405 because FRCA paid some of the Villas’ operating expenses. There has been a meeting between the both Boards, and they have reached an agreement, backed up by invoices, that the actual amount owed was $18,707.  A check has been given by the Villas to the FRCA.

Ann Jones was called upon to speak about room fees charged when classes are held in the Center. A certain amount of the fee is turned over to the Association as room rental.  There is no policy or procedure.  Ann asked the Board to enact a policy.  Harriet volunteered to work with Ann regarding these fees.

Don Horan reported on his meeting with Ann Jones regarding the subject of subsidizing social events. There are events where it is difficult to set the cost per person.  Chuck Strub stated that Ann should be able to determine the cost per person.  Jake said that the events were supposed to be self-supporting.  Toni stated that Ann’s budget was approved by a previous board and no parameters were set as to how the money should be spent. Toni said she will do a check of previous minutes to see what actions were taken in the past and report on her finding at the next meeting.

There was some discussion regarding investments.  Don Horan said he will look into T-Bills.

Committee Reports:

a.      Jean Strub, Finance Chair – Some Basics of Financial Statements.

Jean explained the Balance Sheet

b.     Property & Grounds – Cindy Horan

Shenandoah is mulching beds and trees.  They are using pre-emergent Crab grass killer (organic) around the Center.

The Master Plan is not ready yet.  (After Easter)

Summer Flowers:  Received a proposal.

P&G will meet Thursday, March 13 at 10:00 AM

Met with John Farrar group.  They are working the “3 rivers” area this week.

Pulte will repair 320 ft. of walking path

Old Business:

     a. Report of meeting with legal counsel regarding FRCA’s

     beautification of small portion of villas area – Toni Brown.  Meeting

     went very well.  Attorneys are drawing up a licensing agreement that

     will be on the agenda of the joint associations’ meeting March 14,

     2008 at 10:00

b. Ad Hoc Middlebrook Gate Committee Report by Don McCreary.  AutoGate Electric gave us a proposal for changes to the

          Middlebrook gates.

          Quote cost:  $11,000.  Don suggested the final cost could range

          between $10,000 to $15,000.

Discussion followed but the Board determined more information is required to assist in their decision.  Sylva will arrange for a representative from AutoGate Electric to be present at the next meeting to answer questions from the Board.

c.Committee charters and mission statement.  Clarification of

Board’s position.  Jake Bernard said the first quarterly meeting with

the committee chairs was held in February. All committees were

          asked to post dated Mission Statements and Charters on the web site.

      d.Motion regarding independent inspection of Center’s sprinkler system.

         Jack Mounts discussed the benefits of having all the sprinklers

         inspected by Merton Bunker.  See minutes regarding motion.

   NEW BUSINESS:

a.      Spring flowers:  Toni said the quote for spring flowers was $3,162.  We don’t know if we can water new plants, and that would waste money if the flowers die. We need to wait for County to act to lift watering restrictions.

b.     Amend Bylaws by provide for resident/tenant age verification?

Jack Mounts said he looked at the Bylaws and feels that possibly we should add elements to them. If there are other areas that need changes, it is best to do this at once to not incur the costs of doing each separately.

Refer to minutes for motion.

The meeting then went to Open Forum, and some discussion continued regarding the Middlebrook gate.

The meeting adjourned at 9:40PM

Anna M. Graf

Volunteer Recording Secretary