FALLS RUN COMMUNITY ASSOCIATION

DRAFT

The Villas at Falls Run Condominium Board of Directors met for a working meeting on August 20, 2007, at the Center. The meeting was called to order at 1:05 PM by Paul Niemi, President, who determined there was a quorum. Members present: Paul Niemi, President, Joan Bitely, Vice-President; Nancy Garner, Treasurer; Hugh Muir, Member at Large; and Sherri Burke, Secretary. Also in attendance were Jeff Turner, President, Jeffrey Charles & Associates (JCA), and three members of the association.

An executive session of the Board was held prior to the working meeting to discuss owner delinquent accounts. The Board also determined that a meeting with Goldklang, Cavanaugh, and Associates, P.C., was required to discuss the final 2005 audit and the draft 2006 audit. A briefing for the association will be scheduled for a later date.

A motion to waive the reading of and approve the minutes from the meeting of July 19, 2007, was made by Joan Bitely and seconded by Hugh Muir. The minutes were approved unanimously.

Joan Bitely moved that the Building Committee be tasked to follow up on all external construction projects approved by the FRCA Modification Committee (MC) for work in the Villas. Hugh Muir seconded and the motion passed unanimously. During discussion, it was noted that the MC does not have a follow up procedure to ensure that construction is completed in accordance with approved submissions. It was agreed that the Building Committee would report their findings to the Board and to JCA.

The Board considered one construction modification request which was approved with modification. The enclosed lower level was approved but the upper deck enclosure was disapproved. The Modifications Committee approved requests for two handrails and one storm door, while one driveway strip extension was disapproved.

Hugh Muir moved that the Directors membership in the Community Associations Institute be renewed for the next year at a cost of $365. Joan Bitely seconded and the motion passed unanimously.

A BOD working meeting will be held on September 17, 2007, 1:00 PM, at the Center.

Jeff Turner reported that the 2005 final audit was received and forwarded to legal for filing under the Koger bankruptcy proceeding. The draft 2006 audit was also received. Jeff will contact Goldklang to set up a meeting with the Board to discuss both audits. A briefing for the association will be scheduled at a later date. He also reported that:

President Niemi requested that Jeff ensure that our insurance is in accordance with audit recommendations concerning fidelity bond coverage. He stated that Dominion Power will be attending to the loose wiring on Plantation Drive outside of the Legend gate area and reported that Pete Cook of Pulte provided a complete set of drawings for the villas. He believes he has the appropriate land plat for use by LANDPLAN.

Nancy Garner reported that the Finance Committee recommends $35,000 from the BB&T account be used to purchase a CD; the Board concurred. She requested that Jeff move $30,000 from the Virginia Commerce Bank operating account to the money market account. This keeps both accounts just under the insured $100,000 limit.

Joan Bitely reported that nine violation letters were being issued this week. During the meeting, the Board received the draft Standard Procedure for Villas Violations and a Proposal for Consideration from the Covenants Committee Chair. Presented documents will be reviewed for discussion at the next meeting. Joan reported she was waiting for Election Committee documents for Board consideration.

Sherri Burke reported that LANDPLAN had met with a number of providers regarding landscape planning proposals. Although the Chair had requested a written proposal from Stafford Nursery, it was not received prior to the meeting.

Hugh Muir reported that Grounds Committee members were working on grounds issues as discussed above.

Paul Niemi reported that the Building Committee Chair has been checking on previous vinyl corner repairs because some of the spliced sections added to corners are slipping. There was a brief discussion about the best method of correction and Jeff was asked to find out if the repairs were under warranty with the company Shenandoah used to do the work.

During a discussion concerning changes in the trash collection, Sylva Penkov-Southwell, Armstrong Management representative, joined the meeting. Board members were concerned regarding villas owners who had already turned in their trash toters to Waste Management during the current contract without any record of having done so. Sylva stated that owners could contact her with this information and that she would be doing a reconciliation against the list she receives from Waste Management reporting missing toters and/or recycle bins. Regarding delivery of new toters and recycle bins, she stated that they would be delivered to all villas addresses. After that is accomplished, she will deal with residents who want the toters removed because they have purchased their own smaller receptacles.

The Villas Owners/Association Responsibility Matrix designed by Ken Burke and edited and approved by the Board for release will be distributed as an insert to the September Villas Update. An updated contact sheet will also be included.

During the open comment period, an inquiry was received regarding the stream behind the Aspen Hill retaining wall. A response could not be provided because this is an FRCA issue. Another question concerned the trimming/spraying around the A/C units. Shenandoah is performing this service now. A board discussion ensued resulting in the decision to draft a regulation concerning landscaping around air conditioning units. Three options were identified. Sherri Burke will draft up the regulation for Board consideration.

Another query was regarding expansion of driveways, which have not routinely been approved for modification. It was explained that encroachment into the common area will not be approved. Previous approval was given only when a wheelchair was routinely used by the resident of the address. Driveways are built to code at 108” in width.

It was noted that Shenandoah had sprayed all sides around some A/C units and should be advised of the correct procedures. The weeds are horrible! In the future, perhaps grub control.

A question was received regarding the amount of loss that was filed as a result of the 2005 audit. An initial claim was filed for $93,600.