FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Special Meeting of the Board of Directors

6 October 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 2010 Budget related items and the following subjects were discussed:

                a.  Are all Replacement Reserve items being properly charged to the Replacement Reserve?

                b.  Master Plan is not a necessity.

                c.  Where is the draft 2010 budget available?

                d.  Social supplemental and newsletter expenses.

                e.  Increases in assessments should be restrained

                f.  Cox basic cable rate costs.

                g.  Proposed inspection costs opposed

                h.  Impact of present economy on residents

                i.  Backyard inspections.

                j.  Lighting outside of the Community Center.

                k.  Options to the Cox cable contract.

                l.  Erosion control spending.

                m.  Covenants should be changed to eliminate backyard inspections.

III.  Budget Discussion by the Board:  The Board continued the review of each line item of the Working Budget and made the changes noted:

                a.  Grounds & Landscaping:

                                1/  Erosion Control Landscaping:  Reduced from $15,000 to $10,000.

                                2/  Landscape Seasonal Flowers:  Reduced from $7000 to $5000.

                                3/  Tree/Scrub Replacement:  Reduced from $5000 to $3000.

                                4/  Common Ground Upgrade:  Added this category in the amount of $5000 and directed it be used on the common ground around the Community Center.

                                5/  Master Plan Phase I:  Reduced from $25,000 to $0.

                                6/  Total Grounds & Landscaping:  Reduced by above actions from $183,641 to $154,641.

                b.  Utilities:  The Board made no changes to the requested funding level of $104,250.

                c.  Payroll and related:  The Board made no changes to the requested funding level of $189,344.

                d.  Pool Operations:

                                1/  Outdoor Pool Contract:  Reduced from $19,500 to $10,000 and directed that no pool attendant be employed in 2010. Also, directed the Property Manager to check with contractor to obtain estimate of cost wit no pool attendant.

                                2/  Total Pool Operations:  Reduced by above action from $43,000 to $33,500.

                e.  Professional Fees:

                                1/  Audit/Tax Preparation:  Increased from $6500 to $6650.

                                2/  Insurance:  Increased from $18,000 to $18,500.

                                3/  Legal:  Reduced from $20,000 to $15,000.

                                4/  Management Contract:  Reduced from $161,000 to $145,000.

                                5/  Temporary Admin Support:  Directed the addition of this item to support the Property Manager and allocated the sum of $6000.

                                6/  Total Professional Fees:  Reduced by the above actions from $214,500 to $200,150.

                f.  Taxes and Licenses:  The Board made no changes to the requested funding level of $13,500.

                g.  Reserve Allocations:  A draft 2010 Replacement Reserve budget was reviewed and no changes were suggested.

                h.  Total Expenses and Reserve:  Tentatively reduced from $1,724,661 to $1,671,811 by the Board’s actions in total on 30 September and 6 October 2009.  A monthly assessment increase from $152 to $157 would result in a balanced budget with a small surplus of $4493.  Questions still to be resolved before a 2010 Operating Budget can be approved involve operating the outdoor pool with no attendant and acquisition of an office grade copier.

IV:  Open Forum:  The following subjects were raised during this open forum:

                a.  Is this 3% increase fully funded?

                b.  Retained Earnings versus Use of Replacement Reserve.

                c.  Are there deficiencies in the Mason & Mason report?

                d.  How are FRCA’s taxes handled?

                e.  Single or twice weekly trash pickup during the summer.

                f.  Use of ArmstrongConnect by residents.

                g.  Inspection checklists.

                h.  Report by the Modifications Committee regarding inspections.

                i.  Inspections of Villa residences.

                j.  Use of coupon books.

                k.  Have outsiders do inspections using the proposed new Modifications Committee procedures.

                l.  Is Cox paying the FRCA everything we are owed.

                m.  Some money should be allocated for the Master Plan.

V.  An announcement was made that the planned 19 October Special meeting of the Board to continue work on the 2010 Budget was cancelled.  Instead, the regular 14 October meeting of the Board would start at 6:30pm instead of 7:00pm.

VI.  At 1:00pm, a motion to adjourn was made by Bill Barnes, seconded by Dan Owens, and passed by acclamation.

THOMAS J. WHALEN

FRCA Secretary

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Special Board of Directors Meeting of 6 October 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