Meeting Notes:

This is not a verbatim transcript of the proceedings of the meeting

Notes

Meeting of the FRCA Board of Directors

Date:  12 November 2008

Time:  7:00pm

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

Members Absent:  None

Others Present:  Susan Manch, Armstrong Management; Debbie Sutton, Property Manager; Ann Jones, Activities Director.

I:  The meeting was called to order at 7:00pm by the Board President, Toni Brown.

II:  Open Forum:  The following topics were discussed during the open forum:

            a:  Increase in the FRCA Budget for 2009.  Several residents felt that the increase in monthly assessment from $140 to $152 was excessive.  One resident stated that the 9% increase in assessments should have been 0%. 

            b:  A suggestion was made to cut the 2009 FRCA Budget by 3% in every category except Replacement Reserve. 

            c:  A resident asked if copies of the monthly income and expense reports were available to the community and was informed that they are available on Armstrong Connect.

            d:  After a question about the impact on our income because of residents switching from Cox Communications to Verizon for their cable service, Toni Brown had Don Horan explain the reasons behind the changes, both increases and decreases, in each major funding category from the 2008 Budget to the approved 2009 Budget.  He also discussed the impact of deficit budgeting in both 2008 and 2009; explaining that without it, the 2008 monthly assessment would have been $148 instead of $140.

III:  Announcements:

            a:  Toni Brown introduced the new Property Manager, Debbie Sutton, and thanked Susan Manch for filling in during the hiring process.

            b:  The traffic signal planned for the corner of Plantation Drive and Lyons Blvd. should be installed and operating by the end of the year.

            c:  The new library groundbreaking is scheduled for April 2009 with the opening of the library scheduled for 2010.

            d:  The FRCA 2009 Budget has been approved and is available to all residents on the website.  Paper copies may be requested from the Property Manager.

            e:  The FRCA monthly assessment will increase effective 1 January 2009 from $140 per month to $152 per month.  Residents should notify their banks about the change if they use direct payment plans.  If Armstrong Direct Pay is used, the increase will be automatic.

            f:  The Falls Run Community Association Annual Meeting will be held at the Community Center at 7:00pm, 19 November 2008.

IV:  Don Webb made a motion, seconded by Jack Mounts, to approve the minutes of the 22 October 2008 meeting as written.  Approved 7-0.

V:  Management Report:  Debbie Sutton reported that:

            a:  Status of Census Report Items:  Information from all forms received after the first notice has been entered and forms are on Connect.  We now have a listing of those for whom we do not have information. 

            b:  Gladstone Street Light Installation:  Down payment for the double fixture has been paid and the light is on order.

            c:  Air Conditioning in the Fitness Center:  Installation of the new unit was completed on 11 November.

            d:  Furniture was purchased for the Property Manager’s office as authorized.  Final cost was $1,496.35 of the $2,500 allocated.

            e:  Internet billing for the Clubhouse:  Cox Communications was contacted and has agreed to waive internet billing charges for the clubhouse only.  This will save FRCA about $800 per year.

            f:  American Disposal has notified us there will be a 9% increase: $10.44 per Villa residence and $12.88 per single family home.

            g:  Installation of the additional lighting circuit in the conference rooms is underway.

            h:  We are attempting to obtain a maintenance contract for the drain systems of the community’s storm water management facilities.

            i:  Stafford County is implementing a new system to charge for the annual inspection of the storm water management facilities. 

VI:  Treasurer’s Report:  Don Horan reported:

            a:  Smith, Barney has closed their Fredericksburg office.  This is not expected to present any problem to FRCA since most business was not done in person. We have already been contacted by another Smith, Barney office to take over handling our accounts.

            b:  Disposition of Committees’ 2009 Budget Requests:  All committees were sent the results of the Board’s actions on their requests on 31 October.

            c:  Motions presented to the Board for action: 

                        1/  Approval of use of Replacement Reserve funds in our Smith Barney RR account for purchase of CDs:  Don Horan made a motion, seconded by Harriet Schrader, that the Board of Directors approve the purchase of $90,000 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.

                        2/  Write off of bad debt:  Don Horan made a motion, seconded by Don Webb, that the debt of $556.08 associated with unpaid assessments and resulting fees and identified by WTF Number 082513.00303 be written off as a bad debt because of foreclosure on the property and unknown location of the former owners.  Approved 7-0.

                        3/  Approval of policy for Activities Director, Social Committee, and Travel and Trips Committee:  After explanation of the policies and discussion of them, Don Horan made a motion, seconded by Jack Mounts, that the 10 November 2008 draft Policy on Participation and Payment by Activities Director and Social Committee and Travel and Trips Committee Members and their families and guests be approved and adopted as Falls Run Community Association policy.  [This document is provided as Attachment 1 to these Notes.]  Approved 7-0.

VII:  Committee Reports:

            a:  Covenants:  No report.

            b:  Community Center:  The committee has been reviewing the current indoor and outdoor pool contracts.  The indoor pool contract has been forwarded to the Property Manager with suggested changes.

            c:  Property & Grounds:  No report.

            d:  Modifications:  The recently approved changes to the Design Guidelines have been posted to the website.  The changes mainly deal with the types of grass that is permitted in the community.

            e:  Election/Communications:  The polls close Monday, 17 November 2008, at 12:00pm, for the election of members of the FRCA Board of Directors.

            f:  Finance:  No report.

VIII:  Old Business:

            a:  Attorney review of By-Laws:  The revisions to the By-Laws have been provided to our attorney for review.  We have not received a reply to date.

IX:  New Business:

            a:  Lighting of waterfall:  The Property Manager has received a proposal to relocate the present lights to enhance the lighting of the Middlebrook entrance waterfall at a cost of $675.  After a short discussion, the Board authorized the Property Manager to proceed without a formal motion.

            b:  Development of resolution to enforce Falls Run age restriction requirements:

Jack Mounts presented a proposed plan to enforce all Falls Run rules and regulations, including: (1) the development of a general resolution by an Ad Hoc Committee (to include Villa and Mod Com reps) to enforce all rules and regulations in Falls Run, (2) letters to be sent out on the subject of age enforcement to residents, real estate agents and settlement companies, (3) the development of appropriate documentation to be given/sold to new tenants who have not been given these by the owners, and (4) the Property Manager to continue to assume the responsibility to monitor the arrival of new owners and tenants and their age qualifications.  He then made the following motion:  I move that the proposed plan be implemented and that the following statement be included in the Falls Run census letter to those residents who have not returned the completed age form: “Failure to return the Falls Run Age Qualification Statement form within the time specified will be considered in violation of the Falls Run rules and regulations and duly enforced, which could lead to an assessment of $50 and loss of owner privileges”.  A lively discussion ensued with Jack Mounts desiring the Board to form an Ad-Hoc committee to proceed with the development of the proposed resolution.  Jake Bernard instead suggested that the Covenants committee be tasked with the development.  Don Webb noted that the FRCA and Villas Covenants committees could meet jointly to work on the idea since both associations have the same problems.  Harriet Schrader indicated that she thought the idea was premature.  Chuck Strub asked Jack Mounts to identify the major need at this time.  Was it just for the age census requirements or was the problem more of an overall one?  Toni Brown stated that she felt we should approach this as a two part problem.  Part one was the inclusion of a statement in our census letters or other documents as needed.  Part two would be a general resolution.  Toni Brown polled the Board to determine if there was support for the formation of an Ad-Hoc committee at this time with negative result.  Jack Mounts then withdrew his previous motion and replaced it with a new motion – I move that the following statement be included in the Falls Run census letter to those residents who have not returned the completed age form: “Failure to return the Falls Run Age Qualification Statement form within the time specified will be considered in violation of the Falls Run rules and regulations and duly enforced, which could lead to an assessment of $50 and loss of owner privileges”.  The motion was seconded by Harriet Schrader and approved 7-0.

            c:  Cancellation of the scheduled 24 December Board meeting:  The Board discussed this topic and did not take action at this time preferring to defer consideration of it until a later date.

X:  Open Forum:  The following topics were discussed during this open forum:

            a:  Two articles of interest had been published in the Washington Post in the last few days.  One dealt with the impact upon Homeowners Associations of foreclosures and the second concerned the sentencing of Jeffery Koger for his embezzlement.

            b:  The cleaning and storage of the outdoor pool equipment had not been done in a timely fashion and the Property Manager is handling this situation.

            c:  An inquiry was made into our costs when dealing with Smith Barney.

            d:  Toni Brown was recognized for her service on the Board.

            e:  Bob Gilbert was recognized for his service on the Community Center committee.

XI:  Chuck Strub made a motion, seconded by Don Horan, to adjourn at 8:50pm.  The motion was approved 7-0.

THOMAS J. WHALEN

Recorder

Atch:  FRCA Policy on Participation and Payment by Activities Director and Social Committee and Travel and Trips Committee Members and their Families and Guest