DRAFT
The Villas at Falls Run Condominium
Minutes of the Meeting of the Board of Directors
September 27, 2007
The Villas at Fall Run Condominium Board of Directors met for an open forum meeting on September 27, 2007, at the Center. Paul Niemi, President, determined there was a quorum and called the meeting to order at 7:01 PM. Members present: Paul Niemi, President; Joan Bitely, Vice-President; Nancy Garner, Treasurer; and Hugh Muir, Member at Large. Sherri Burke, Secretary, was absent. Also in attendance were: Jeff Turner, President, Jeffrey Charles & Associates (JCA), and approximately 45 members of the association.
A motion to waive the reading of and approve the minutes from the meeting of September 17, 2007, was made by Hugh Muir and seconded by Nancy Garner. The minutes were approved unanimously.
Read into the minutes was Virginia Condominium Code, section 55-79.74:3 Transfer of special declarant rights. The point being that the declarant shall not be relieved of any obligation or liability arising before the transfer.
The next Board meeting is scheduled for October 15, 2007, 1:00 PM, at the Center. THERE IS NO OPEN FORUM MEETING SCHEDULED FOR OCTOBER. THE GAZETTE CALENDAR IS IN ERROR.
President Niemi called for adjournment at 8:50 PM.
Respectfully Submitted,
Joan Bitely
Vice-President, Board of Directors
The Villas at Falls Run Condominium
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INFORMATION ONLY
NOT TO BE CONSIDERED MINUTES
NOT A TRANSCRIPT
Notes from Board of Directors Meeting
September 27, 2007
President Niemi thanked Hugh Muir for a great job getting the Update published, as well as including the Responsibility Matrix and a Contact list.
He also reported receiving an email today from Ed O’Connell, our attorney, noting that the U.S. Attorney in Alexandria is working with the IRS, the FBI, and local law enforcement authorities on the Koger theft issue.
The Villa interior roof inspection is expected to be completed this week and the exterior will be done next.
He reported that the backflow inspection is extremely important for the safety of everyone. JCA is keeping a spreadsheet and only 83% of residences have been inspected. Potomac Pipe and Plumbing is our contractor and this service is paid from the association dues.
Nancy Garner, Treasurer, reported that the finance committee met with our Smith Barney representative, Mr. John Farrington. He was very complimentary of the work that is being done by the Villa committee. Our investments now total $165,684 and reserves earnings are $7,858 in interest to date. A 1-year CD will be purchased on Oct. 3 in the amount of $26,000 with a rate of $4.9%.
Assessments are reasonable with $779 being 1 month in arrears and $858 in the 2 month category. A lien is being processed on one residence with an outstanding bill of $2,277. The association operated at a surplus of $3,546.55 for the month ending Aug. 31 and has operated at a surplus of $62,570.93 on a year to date basis.
Ellen Cox, Chair of the Election Committee, announced that we now have four candidates for the Villa Board election: Kathleen Catalano, Nancy Garner, James Pierce and Carlos Sutton. There will be a Meet and Greet meeting on Oct. 18 at the Center so that all the residents may get to know these candidates better. It was also reported that Claude Webb, has withdrawn his nomination for the Villa Board and, instead, is now filing for the FRCA board.
Frank Burroughs, Grounds and Building Chair, gave an extensive report on the recent fall lawn enhancements: aerating, fertilizing, seeding and thatching. He will be looking at further needs and continuing a study of organic lawn fertilizers. He also pointed out the terrible soil that we are dealing with, as well as noting that 27 sprinkler heads are missing due to walls or some other obstruction installed by DelWebb.
He has found that some garage light sensors may not be working effectively perhaps due to shrubs blocking them. In the Fall of 2006 a study reviewed all buildings and a reinspection followed up. A letter was then sent to Pulte regarding extensive repairs which needed to be made. The white retaining walls are being painted and caulked. He suggested a maintenance plan be implemented.
Emory Dilda, Chair of LANDPLAN, quoting Joyce Kilmer, pointed out the need for additional beautification elements in the Villas. The committee has a charter for developing a 5 year plan looking at phases of work to be done, cost, plants, time, donations and areas. The BOD has authorized $400 for planning. JCA is working on contract language for this. LANDPLAN now has a site map, which Paul Niemi pieced together from county records.
At the initial stages of construction of the Villas, DelWebb/Pulte offered payments as sales incentives. 22 Villas are reported as being credited with these marketing funds on their accounts. It appears that all fees were applied correctly.
Jeff Turner gave an extensive explanation of how his company handles all the accounting elements of JCA. He pointed out that if the same protections had been in place, the Koger issue would not have happened. He gave high praise to the Treasurer and Finance Committee for their diligent, expert oversight that the BOD has working. He made the following points:
· JCA has very good insurance with general liability at $1 million, E & D at $1 million and $500,000 for fidelity coverage.
· The Association also has $2 million general liability, and umbrella of $1 million additional, $1 million for directors liability, and $500,000 for fidelity coverage.
· All employees must undergo a criminal background check by an independent company, First Advantage, located in FL.
· JCA takes no cash payments. Deposits go directly to VA Commerce bank lock box including all electronic payments. The bank sends a file of the ledger daily. FRCA is paid with coupons to Armstrong Management for the Villa dues.
· The accounts receivable accountant has access to her module of software only, the accounts payable accountant has access to that section and the Controller oversees both. The computer is backed up daily and the controller even takes a back up drive home for safety.
· Financial statements come to Jeff once a month to check for any problems. Two people must sign for all accounts payable in the operating account. Virginia Commerce Bank also calls Jeff if they have any question regarding a transaction. Because of the variety of properties being managed by JCA, they have 6 different auditors involved in their financial practices.
· VA does not require property managers to be licensed, though he is. He suggested that residents write the VA Real Estate Board urging it to use the fees collected for the Real Estate Recovery Fund as a way to get some compensation for the Villas. Because Koger is a licensed manager, that could make it possible.
Some of the questions asked by residents related to:
A lack of a “wall” between Koger’s reserves and operation monies. The present Villa BOD has implemented this. JCA has no control over our reserves.
Confusion over the many numbers which have been reported is caused by the auditors not receiving from Koger complete or accurate documents. Both boards continue to dig into the records and come to more accurate amounts. Now that Koger has filed for bankruptcy, it will take much time for the legal and accounting processes to come to fruition.
The Villa BOD has and will be filing claims with several entities as they become available to us.
Although it is common practice to have a master association fee collected by the condominium group, as we do, the matter of the residents making direct payments to FRCA will be revisited.
The Real Estate Disclosure packet cost was increased by the VA general assembly in 2006. It is now posted on the web site and reflects a study of the industry costs that brings the Villa portion to $200. Villas residents must also get an FRCA resale package from Armstrong Management Services at a cost of $275. A total of $475 is required for the complete set of Villa unit resale packets. Physical inspections, encumbrances, violations, must be disclosed to a prospective buyer.
Open Forum Questions:
A lengthy discussion of the 2005/2006 draft audits was held in an attempt to clarify our Koger difficulties.
The recent inspection of the interior of the roofs, done by an engineering firm to support a quality finding related to our Mason and Mason Reserve Study which had decreased the life expectancy of our roofs, was for the purpose of checking the industry standard on the size of the opening at the ridge vent. That is why it did not take long for the inspector to see what amount of light and where it was visible. When the technical report is received at completion of the outside roofs, an attorney will review the language and case for possible litigation.
If an inspector told you about a non roof problem, it is your obligation to call DelWebb about this.
Though reserves would ideally increase the assessments by $37, Treasurer, Nancy Garner, reported that the Finance Committee is presently working on the 2008 budget and such an increase will not happen.
The sprinkler system schedule from WCC has not been forthcoming; there have been leaks and the necessity of shutting down for lawn enhancements. Several residents were critical of the lawn watering. Paul pointed out there are 80 zones, over 1400 heads and the schedule we have requested was not in the contract. The BOD, with the help of Grounds Chair, will continue to pursue this.
If you have received notice of backflow inspections, which seem too frequent or have never had an inspection, please call JCA Bill Myers to report. The county’s records have not been accurate, but JCA is now maintaining a spreadsheet covering all our 199 units and when they were inspected.