FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Special Meeting of the Board of Directors

30 September 2009

Members Present:  Don Horan, Dan Owens & Piper, Tom Whalen, Bill Barnes, Harriet Schrader, Jack Mounts, Jake Bernard.

Members Absent:  None

Others Present:  Ann Jones, Activities Director; Debbie Sutton, Property Manager.

I.  The Special Meeting of the Board of Directors was called to order at 9:00am in Conference Room 1 by the President, Don Horan.  The purpose of the meeting was preparation of the FRCA 2010 Budget.

II.  Open Forum:  The open forum was restricted to Budget related topics and the following items were discussed:

                a.  Finance Committee support to the Board of Directors during budget preparation.

                b.  Landscaping costs.

                c.  Master Plan costs.

                d.  Cost of inspections for compliance with governing directives.

                e.  Rumors of cost increases.

III.  Budget Requests by Activities Director, Property Manager and Committee Chairs:

                a.  Activities Director:

                                1/  Social Budget:  Requested a reduction from $15,000 to $12,000.  The Board agreed.

                                2/  Security Software:  $620 requested and approved.

                                3/  Maintenance support for media player:  $1200 requested and approved.

                                4/  Main gate camera replacements:  $500 requested.  To be taken from general maintenance funding.

                                5/  Computer and printer for resident use:  $1300 requested.  The Board did not agree to fund this item.

                                6/  Professional consultants for technical support:  $1050 requested and approved.

                                7/  Website fees:  $120 requested and approved.

                                8/  Two computer chairs:  $500 requested.  The Board directed use of available 2009 Replacement Reserve funds.

                                9/  Computer racks/shelving:  $320 requested.  The Board directed use of available 2009 Operating funds.

                b.  Property Manager:  Requested a replacement for the home quality copier presently in use.  The Board requested additional information on cost of lease vs purchase and asked about the possibility of a second bidder.

                c.  Property & Grounds Committee:

                                1/  Master Plan Planting:  Requested $50,000 to continue implementation of the Master Plan.  Desired minimum funding at 2009 level of $25,000.  The Board deferred a decision.

                                2/  Irrigation Watering:  Requested $13,000.  The Board agreed.

                                3/  Seasonal Flower Beds:  Requested $10,000.  The Board reduced this item to $7,000.

                                4/  Tree Trimming/Removal:  Requested $10,000.  The Board agreed.

                                5/  Tree/Shrub Replacement:  Requested $5,000.  The Board deferred a decision.

                                6/  Erosion Control:  Requested an increase to $15,000.  The Board agreed.

                                7/  Common Ground Upgrade:  Requested $20,000.  The Board deferred a decision.

                                8/  Garden Club:  Requested $200.  The Board agreed.

                d.  Community Center Committee:

                                1/  Pool deck resurfacing:  Completed in 2009.

                                2/  Tennis Court resurfacing:  Funded in 2009.

                                3/  Bocce Court repairs:  $5,000 requested for resurfacing.  The Board deferred a decision.

                e.  Ad Hoc Committee for Enforcement Document:  Requested $16,000 addition to AMS management contract to permit contract inspections of all residences for compliance with governing documents.  The Board deferred a decision.

IV.  Budget Discussion by Board:  The Board began the review of each line item of the Working Budget and tentatively made the changes noted:

                a.  Non-Assessment Income:

1/  Interest income:  Decreased from $3500 to $3000.

                                2/  Late fee income:  Raised from $1000 to $1500.

                                3/  Legal fee income:  Raised from $0 to $500.

                                4/  Total Non-Assessment income:  Increased by above actions from $204,400 to $204,900.

                b.  Administrative Expenses:

                                1/  Newsletters:  Decreased from $25,000 to $23,000.

                                2/  Office Supplies:  Increased from $2000 to $4000.

                                3/  Dues/Subscriptions:  Decreased from $750 to $400 and directed that the current subscription to USA Today not be renewed upon expiration in 2010.

                                4/  Total Administrative Expenses:  Decreased by above actions from $155,250 to $154,900.

                c.  Maintenance Expenses:

                                1/  Door maintenance:  Decreased from $500 to $0 and directed deletion of this category and inclusion of expenses therein into General Maintenance.

                                2/  Furniture/Appliance repair:  Decreased from $1500 to $1000.

                                3/  Electrical repairs:  Decreased from $6000 to $5000.

                                4/  Street Light Maintenance:  Decreased from $10,000 to $8000.

                                5/  Plumbing repairs:  Decreased from $3000 to $2000.

                                6/  Total Maintenance Expenses:  Decreased by above actions from $95,000 to $90,000.

                d.  Services:

                                1/  Trash/Recycling Contract:  Decreased from $147,500 to $140,000.

                                2/  Total Services:  Decreased by above action from $381,410 to $373,910.

V.  Open Forum:  The following items were discussed at this open forum:

                a.  Office copier needs.

                b.  Role of the Finance Committee in the Budget process.

                c.  Inspections of Villa homes.

                d.  Lack of stability in Modifications Committee – 4 Chairs in 4 years.

                e.  Modifications Committee spring inspection process.

                f.  Lack of follow-up after inspections.

                g.  Cost of proposed inspections by AMS.

                h.  Need for education of residents in inspection/violations process.

VI.  At 1:20pm, Jack Mounts made a motion to adjourn, seconded by Harriet Schrader.  The motion was APPROVED 7-0.

THOMAS J. WHALEN

FRCA Secretary

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Special Board of Directors Meeting of 30 September 2009

By:  Donald M. Horan, President

                I attest that the foregoing minutes were accepted and approved by the Board of Directors at a duly called meeting of the Board of Directors on 14 October 2009.

By:  Thomas J. Whalen, Secretary