FALLS RUN COMMUNITY ASSOCIATION

Meeting Minutes:

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

I: The meeting was called to order at 10:00am by the Board President; Toni Brown.

III: Announcements: Toni Brown announced that the Board had received a check in the amount of $58,838.00 from the Villas.

IV: A motion was made by Don Webb, seconded by Jack Mounts, to approve the minutes of the 13 August 2008 meeting as written. Approved 7-0.

b: Entrance Gate work: Weather permitting, the Gladstone gate will be closed for work on 28 August, Thursday, and the Smithfield Gate on Friday, 29 August.

c: Smithfield light: The globe has been received and the light should be operational next week.

a: Investments Procedure: He is still working on this item. He is attempting to clarify who may move the community’s money and under what conditions.

b: Replacement Reserve Disbursements Procedure: The proposed procedure to authorize and control disbursements from the Replacement Reserve was discussed in detail by the Board. After this discussion, a motion was made by Don Horan, seconded by Jack Mounts, to approve the proposed FRCA Replacement Reserve Disbursements Procedure and to implement it immediately. Approved 7-0.

1/ Specific RR Disbursement for pool heaters: Don Horan made a motion, seconded by Jack Mounts, that $6,900 approved on 28 April 2008 and an additional $1,754 approved on 11 June 2008 for a total of $8,654 to be used to replace one heater for the indoor pool and one heater for the spa be disbursed from the Replacement Reserve based on Mason and Mason Component 5.18 Pool Pumps, Filters, Heaters, & Chlorinators & Dechlorinators Allowance. Approved 7-0.

2/ Specific RR Disbursement for server: Don Horan made a motion, seconded by Jack Mounts, that the $4,000 approved on 23 July 2008 to purchase a replacement server be disbursed from the Replacement Reserve based on Mason and Mason Component 4.11 Office Furnishings & Equipment. Approved 7-0.

3/ Specific RR Disbursement for Gladstone and Smithfield gates: Don Horan made a motion, seconded by Jack Mounts, that the $20,598 approved on 13 August 2008 to replace the existing gates at the Gladstone and Smithfield entrances be disbursed from the Replacement Reserve based on Mason and Mason Component 3.5 Access Control Gates & Key Pad Systems. Approved 7-0.

4/ Approval of prior purchase of certificates of deposit: Don Horan made a motion, seconded by Jack Mounts, that the Board of Directors acknowledge and approve the following three Replacement Reserve certificates of deposit which were purchased based on the Board's approval on 23 January 2008 authorizing use of up to $200,000 of Replacement Reserve funds to purchase CDs:

5/ Approval of deposit of $98,431 check into operating fund: Don Horan made a motion, seconded by Jack Mounts, that the Board of Directors approve the deposit of the $98,431.00 check from CBA on 30 July 2008 into FRCA's money market operating funds account at Firstrust bank. This check was in settlement of our insurance claim for damages caused by Koger Management Group's misuse of FRCA funds. Approved 7-0.

6/ Approval of deposit of $58,838 check into operating fund: Don Horan made a motion, seconded by Jack Mounts, that the Board of Directors approve the deposit of the $58,838 check from the Villas at Falls Run into FRCA's money market operating funds account at Firstrust bank. This check represents the amount of assessments collected in 2006 by the Villas at Falls Run on behalf of the FRCA, but never forwarded to FRCA by Koger Management Group. Approved 7-0.

account and purchase of CDs: Don Horan made a motion, seconded by Jack Mounts, that the Board of Directors approve the recent transfer of $190,000 from the FRCA Replacement Reserve money market account at B B & T to the FRCA RR money market account at Smith Barney and the purchase of $190,000 of FDIC insured, long-term Replacement Reserve CDs through Smith Barney with maturities up to 5 years based on prevailing interest rates. Approved 7-0.

8/ Approval of transfer of operating funds to our Smith Barney operating funds account and purchase of CDs: Don Horan made a motion, seconded by Jack Mounts, that the Board of Directors approve the transfer of $95,000 from the FRCA operating funds money market account at Firstrust Bank to the FRCA operating funds money market account at Smith Barney and the purchase of $95,000 of FDIC insured, short-term CDs through Smith Barney with maturities up to 90 days based on prevailing interest rates. Approved 7-0.

d: The 31 July 2008 Financial Reports have been received and contain no surprises.

e: Elections: The deadline for nominations for the FRCA Board of Directors election is 5 September 2008.

g: Communications: Jack Mounts reviewed for the group his report to the Board on the status of AMS Connect. He discussed the information currently in the system database and where data is lacking. After the discussion, Jack Mounts made a motion, seconded by Harriet Schrader, to conduct an age census of all owners/residents who do not have age data in AMS Connect. The census forms would be returned by mail or hand delivery to the Property Manager at the Community Center. Approved 7-0.

h: Waterfall Ad-hoc Committee: Dan Owens and Bill Barnes made a presentation to the Board of the three options identified by the committee and pursued with possible contractors. They detailed the pros, cons, and projected costs of the options:

4/ Bill Barnes discussed the differences between option 3 as presented and the earlier proposal for similar modifications presented to the Board.

5/ Recommendation: The Waterfall Ad-hoc Committee recommends that the Board approve option 3 as described above including a maintenance contract. The committee noted that this option would take 10-12 weeks to have operational after contract award.

6/ The Board President thanked the committee for its’ report and requested that they present the same report at the 10 September evening Board meeting. The committee received a round of applause from the audience.

a: Contract proposal for heaters in dressing rooms: Since the last Board meeting, the Property Manager has received a proposal from Samuels for electrical work to complement the Robert B Payne proposal for heaters. That combined cost is $5,520. Also, ESV Inc. has submitted a proposal for heaters to be mounted just above the floor in each locker room. After discussion, Don Horan made a motion, seconded by Harriet Schrader, to accept ESV Inc’s proposal #1219, dated 25 August 2008, for 3kw heaters to be installed in the locker rooms at a cost of $3,045.24 as described in the proposal. Approved 7-0.

b: “No Mow” Areas: The Board discussed this topic’s history and results achieved to date. After discussion, Chuck Strub made a motion, seconded by Jack Mounts, to eliminate the ‘no mow’ areas previously established and return to the previous mowing areas in all parts of the community under the FRCA contract with Shenandoah Landscape Service. It was noted that this change does not apply to the lawn cutting/maintenance done under Shenandoah’s contract with the Villa association. Approved 7-0.

a: Resolution re: resale inspections: The Board discussed AMS’ request for a change to resale inspection procedures and our attorney’s proposed resolution on this topic. After discussion, Chuck Strub made a motion, seconded by Harriet Schrader, to accept the resolution regarding Association Disclosure Packet Inspection Procedures as written by our attorney, Ed O’Connell, and the Amendment to Association Services Agreement and to accept alternative #1 as submitted by the Chair of the Modifications Committee, Robbin Sentell. Approved 7-0.

b: Property Manager’s debit card dollar allocation: Toni Brown made a motion, seconded by Don Webb, to establish a $1,000 limit on any single purchase on the Property Manager’s debit card and to authorize regular replenishment of the account supporting the card to the agreed $5,000 limit. After discussion, the motion was approved 7-0.

c: Establish date for Special FRCA Board Meeting on 2009 Budget: The Board decided to hold a special meeting devoted to the 2009 Budget at 10:00am, 29 September 2008. This meeting is open to all residents of Falls Run.

d: Request to Award Contract – Installation of packages A, B, C & D of Master Plan Phase I:

The Board discussed the Property & Grounds Committee request for contract award. Discussion topics included soil conditions, erosion issues, maintenance vs enhancement of the common grounds and the price differentials between vendors.

1/ After the discussion, Don Webb made a motion, seconded by Don Horan, to accept

and approve the recommendation of the Property & Grounds Committee to accept the bid of $46,820.00 from Shenandoah Landscape Services for the implementation of the Master Plan, Phase I. This includes Packages A, B, C & D. This will take effect if approved in time for the fall planting of 2008. The Board voted to NOT approve the motion 3-4 [Harriet Schrader, Jack Mounts, Jake Bernard, Chuck Strub opposed].

2/ Harriet Schrader made a motion, seconded by Don Horan, to accept the bid from Shenandoah Landscape Services for the implementation of the Master Plan, Phase I, Package A only, at a cost of $25,145.00. The Board voted to approve the motion, 5-2 [Jake Bernard, Chuck Strub opposed].

3/ Don Horan made a motion, seconded by Don Webb, to accept the bid from Shenandoah Landscape Services for the implementation of the Master Plan, Phase I, Package B only, at a cost of $13,331.00. The Board voted to NOT approve the motion, 3-4 [Harriet Schrader, Jack Mounts, Jake Bernard Chuck Strub opposed].

4/ Don Webb made a motion, seconded by Don Horan, to accept the bid from Shenandoah Landscape Services for the implementation of the Master Plan, Phase I, Package C only, at a cost of $3,078.00/ The board voted to approve the motion 4-3 [Jake Bernard, Jack Mounts, Chuck Strub opposed].

5/ Don Horan made a motion, seconded by Jake Bernard, to accept the bid from Shenandoah Landscape Services for the implementation of the Master Plan, Phase I, Package D only, at a cost of $5,266.00. The Board voted to NOT approve the motion 3-4 [Harriet Schrader, Chuck Strub, Jack Mounts, Jake Bernard opposed].

e: Attorney’s Fees: Toni Brown notified the Board that attorney’s fees for recent business conducted by Ed O’Connell on behalf of the Falls Run Community Association had totaled $4,179.84 which would be paid out of operating funds.

a: Ownership of Gladstone land: Residents questioned how the ownership of this land from our gate to Plantation Drive could be in question. The problems encountered in trying to settle the ownership question were explained.

b: There was additional discussion of the Board’s actions regarding implementation of the Landscaping Master Plan.

c: A question regarding the age 55 requirement was raised and it was explained that at least one resident in each home or villa must be a qualified resident [age 55 or older] and that there is no similar restriction upon owners.

XII: The Board met in executive session to discuss legal and personnel concerns. No official action was necessary as a result.

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

I: The meeting was called to order at 10:00am by the Board President; Toni Brown.

III: Announcements: Toni Brown announced that the Board had received a check in the amount of $58,838.00 from the Villas.

IV: A motion was made by Don Webb, seconded by Jack Mounts, to approve the minutes of the 13 August 2008 meeting as written. Approved 7-0.

a: Pool Heaters projected installation: The pool heaters have arrived. We will find out today when the contractor will install them.

b: Entrance Gate work: Weather permitting, the Gladstone gate will be closed for work on 28 August, Thursday, and the Smithfield Gate on Friday, 29 August.

c: Smithfield light: The globe has been received and the light should be operational next week.

e: There are over 7,000 linear feet of wrought iron fencing in the community. Painting of the fencing will be part of a future project.

f: There is no new information on the FedEx check. A letter to the Virginia Real Estate Board is the next step.

g: The August financial reports should show a credit to FRCA from AMS for the charges for late fees.

h: Backup of community documents onto CDs: There will be a meeting on Friday, 29 August, to discuss this project.

i: Legend Gate Easement: The attorney for Del Webb/Pulte is now involved and has written to the homeowner in an attempt to resolve this issue.

j: Gladstone Drive: We are attempting to determine who owns this road from our gates to Plantation Drive.

k: Snowplow contract: To date, no bids have been received. A number of local vendors were contacted without result.

a: Investments Procedure: He is still working on this item. He is attempting to clarify who may move the community’s money and under what conditions.

d: The 31 July 2008 Financial Reports have been received and contain no surprises.

c: Property & Grounds: Several members met with personnel from Stafford County on 19 August to discuss maintenance of streams and ponds in the community. Stafford County is pushing Del Webb/Pulte to complete work so that the county can release the bonds on the property. Stafford County requires maintenance of these ponds and streams and will inspect them and our maintenance records which the Property Manager will keep. We are looking into a maintenance contract for this requirement. A detailed report was posted on the Falls Run website and sent to the Yahoo group.

e: Elections: The deadline for nominations for the FRCA Board of Directors election is 5 September 2008.

g: Communications: Jack Mounts reviewed for the group his report to the Board on the status of AMS Connect. He discussed the information currently in the system database and where data is lacking. The principle on-going problem is age data on residents. We lack age data on the residents of about 150 homes or villas. He stated that some type of census of the population would be required to obtain the missing data. The Board discussed the benefits of both a full or partial census. When asked, Sylva stated her preference for a full census to try to have a firm starting point for the future. After the discussion, Jack Mounts made a motion, seconded by Harriet Schrader, to conduct an age census of all owners/residents who do not have age data in AMS Connect. The census forms would be returned by mail or hand delivery to the Property Manager at the Community Center. Approved 7-0.

a/ Pros: No expense to maintain the pond. No need for chemicals to control algae. No need to deal with soap suds issues.

a/ Pros: Would repair leaks, add new liner and return the pond to a natural color. Also, a skimmer box to help control algae would be added to the bottom pond. Landscaping around the ponds would be enhanced with additional plants.

b/ Cons: Requires fish to control algae and a high volume of water [10,000 gallons capacity] due to surface evaporation. High chemical and water costs. Monthly maintenance and annual cleaning needed and there remains the high vandalism potential.

a/ Pros: Eliminates leaks and blue color of the lower pond. Would provide additional filter and run with about one half the water [5,000 gallons capacity]. Would run year-round and would still be useable in another drought emergency.

4/ Bill Barnes discussed the differences between option 3 as presented and the earlier proposal for similar modifications presented to the Board.

d: Request to Award Contract – Installation of packages A, B, C & D of Master Plan Phase I:

1/ After the discussion, Don Webb made a motion, seconded by Don Horan, to accept

b: There was additional discussion of the Board’s actions regarding implementation of the Landscaping Master Plan.

XII: The Board met in executive session to discuss legal and personnel concerns. No official action was necessary as a result.

The Armstrong Connect system is now operating at the level directed by the FRCA Board of Directors. The Connect system was determined by FRCA to be a reference and historical computer site which would supplement the Falls Run Website. The Connect system was announced by Armstrong Management Systems (AMS) to Falls Run residents April 24, 2008.

Armstrong Connect now basically provides the services to the Falls Run Community as announced, including the ability to input/change personal data, review modification documents and their history of assessments, and access FRCA documents and older issues of the Gazette. This present operational level was reached by AMS as a result of the listing of operational problems and provision of recommendations by the Communications Committee (Com Com), Board members and FR residents. AMS computer operations generally responded quickly and positively to fixing the problems and adding/deleting operations according to FR comments.

Maintenance of the database (db) of resident information in Connect, however, has not been adequate. No new data was added for the period November 2007 to within the past month or two. AMS said they are reviewing the situation and, in coordination with some Board members, developed a plan to address the data entry issues. Because the system data was not kept up to date, AMS will need to conduct a census of FR residents who do not have age data in Connect. AMS has not consistently informed the FRCA Board of the arrival of new FR residents (and their age data) as requested.

Over a year ago, Com Com began a coordinated effort with AMS to maintain an ongoing up to date resident db which would provide: (1) an ongoing census of FRCA and Villa residents to meet Federal requirements for classification as an age-restricted community, (2) a listing with current data to produce a FR resident directory, (3) the FRCA/Villa Boards with current information on owners and tenants and FRCA documents, (4) FR residents with information and service in an easily accessible format, and (5) an Alert system for reaching FR residents with messages.

To provide continual updating of the FR resident db, three forms were designed by the FR Com Com/AMS: (1) Age Qualification Form, (2) Tenant Certification Form and (3) Resident Information Update Form. These forms were to be included in the FR resale disclosure documents and the data input by AMS computer operations in Fairfax. The AMS Property Manager was designated by AMS as being responsible for inputting data from these forms when they were completed locally (i.e., at the Community Center).

The FR Information System (FRIS) db maintained by the Com Com was provided to AMS in October 2007, and this data was physically transcribed into Connect by AMS computer operations in January 2008. The FRIS db had been developed over a 3 -year period by Com Com as a result of compiling resident information to develop the FR directory of residents.

Based on recommendations of Com Com, the FRCA Board designated the Connect Alert system, which can reach most residents by telephone, to be used for specific purposes that affect FR residents only; it is not be used for alerts/warnings provided already by Stafford County, NOAA and radio and TV stations.

Com Com, Board members and FR residents provided to AMS a list of difficulties with operations of Connect, including problems navigating the website, major issues with Villa data (including the lumping together all modification documents into one PDF file and the inability to add emergency numbers), need for additional documents to be added to the Documents Section, and other operational problems. Most of these problems have been corrected by AMS computer staff. Also, AMS added the capability for the Villa Board members to have the same access level to confidential information as for FRCA Board members.

AMS assigned the Property Manager the responsibility to coordinate all inputs to the FR Connect. She has increased the number of documents included in the system and available for viewing by FR residents and Board.

The FR Election Committee is considering the use of the Connect Alert system to remind residents to vote in November FR Community election of Board Directors.

The FRCA Board understood from emails and conversations with AMS that the three AMS/FR forms were to be included in disclosure documents for new residents to complete and send to the AMS Fairfax office for data entry. Data for new residents, as well as changes from the Resident Information Update form from current residents, was to be added into the Connect system by the FR Property Manager when forms were completed at the Community Center.

As far as can be determined, the Property Manager has input some data from forms within the past month or two. However, preliminary reviews in March/April of the Connect db by Len Godek and Com Com revealed no additions had been made to the basic FRIS db since it was provided to AMS last October. Fairfax said the new FR residents were not completing the forms; a local realtor said she personally sent completed age forms to Fairfax.

HOPA Federal regulations state the requirement for either an ongoing census (such as envisioned with the implementation of Connect FR resident db) or a census every two years. The last census at FR was conducted in 2006. Therefore, AMS will conduct a census of FRCA and Villa residents without age data in Connect during August – September of this year.

Until the Connect FR resident db is complete, Com Com will be relying mainly on the db maintained by Len Godek to develop future FR resident directories.

A plan was agreed to by Sylva Southwell and Susan Manch of AMS and Toni Brown and Jack Mounts to, first, conduct a census of FR residents to create an up-to-date database of FR units with age qualified residents and, second, develop a controlled process in which age qualifications and other information of new residents are entered into Connect.

This process would enable FR, if asked at any time to justify our age restricted community status, the ability to develop a listing and percentage of FR units occupied by age qualified residents.

1. Send a letter to FR owners who do not have age data in Connect asking them to complete an Age Qualification and/or Tenant Certification form.

2. Input the data received from the FR forms and any remaining data from forms not previously processed into the Connect FR residential db

3. Send a second letter (certified) to those who do not have an age form in their file.

4. Send a letter to local realtors asking them to ensure that new residents complete the applicable age and tenant forms.

The controlled process by which AMS Property Manager will provide continual updates to the Connect System follows. The Property Manager and AMS will:

1. Change all three forms (age, tenant, RIU) to note that each completed form should be sent/given to the FR Property Manager (instead of sending it to the Fairfax office), and include these three forms in the AMS disclosure package.

3. Maintain copies of all three forms (age, tenant, RIU) at the Community Center and give them to new residents requesting an entry card.

4. Develop and maintain an FRCA/Villa Resale Table that lists all owners selling/ new owners, noting all actions from the time of the inspection by the Property Manager and the house goes on the market through completion of all three FR/AMS forms.

1. If any person challenges FRCA as to whether or not they meet the requirements of HOPA age restricted community regulations, the percentage/names of those units with an age qualified resident can be easily printed out.

2. Control over the whole process is in the hands of the FR Property Manager (PM), eliminating confusion and requiring no interface with Fairfax, except for transmitting a copy of HUD-1 to FR PM.

3. The Board and PM will have ongoing knowledge of new owners and tenants and their qualifying ages