FALLS RUN COMMUNITY ASSOCIATION

FALLS RUN COMMUNITY ASSOCIATION, INC

Minutes of the Meeting of the Board of Directors

26 May 2010

Members Present: Jake Bernard, Dan Owens & Piper, Tom Whalen, Bill Barnes, Toni Brown, Dot Foster, John Thrash

Members Absent: None

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

I. The meeting was called to order at 6:30pm in Conference Room 1 of the Community Center by the President, Jake Bernard.

II. Adjourn to executive session: A motion to adjourn to executive session to discuss personnel matters was made by Dot Foster, seconded by Bill Barnes, and approved 7-0. The Board adjourned to executive session at 6:31pm. The Board moved to reconvene in open session at 7:02pm by acclamation.

III. Reconvene in open session: The Board reconvened in open session at 7:04pm and announced that it had met to discuss personnel matters and that no actions were taken. Also, it was announced that three members of the Board [Jake Bernard, Bill Barnes and Tom Whalen] will meet with the Modifications Committee at 9:00am, 4 June, to discuss matters of mutual concern.

IV. Open Forum: The following topics were mentioned during this open forum:

a. Letter from Modifications Committee to Board regarding a resident’s appeal.

b. The 4 June meeting between Board members and the Modifications Committee.

c. FDIC coverage of the Merrill Lynch Money Market Accounts.

d. Cox Communications bulk cable contract.

e. Bulk cable contracts for less than 100% of the community.

f. Budget impact of bulk cable contract cancellation.

g. Notification of events to residents without Channel 20.

h. Revised Design Guidelines.

i. Availability of Board materials during the meetings of the Board of Directors.

V. Announcements: The following announcements were made:

a. FRCA will send a letter to Cox Communications tomorrow notifying them that we are not renewing the bulk cable contract at the end of the current period.

b. We received an inquiry about renting the indoor pool for several hours a day for a nine month period which we declined.

VI. Approval of Minutes: A motion was made by Bill Barnes, seconded by John Thrash, to waive the reading and approve as written the minutes of the meeting of 28 April 2010. The motion was APPROVED 7-0.

VII. Individual Reports:

a. Management Report: The Property Manager updated the status of ongoing projects. In addition, she provided information of upcoming contract actions and discussed items forwarded to the Board for their action at this meeting.

b. Activities Director: The Activities Director noted that the outdoor pool would be opening for the season on Saturday, 29 May, and that the volunteer pool attendants were ready for the opening. Also, she provided updated activities information.

c. Treasurer’s Report: A motion was made by Bill Barnes, seconded by Tom Whalen, to take $50,000 from the Operating Fund Money Market account and purchase a Certificate of Deposit at market rate for a term of three months to mature in September 2010 and to further take an additional $50,000 from the Operating Fund Money Market account and purchase a Certificate of Deposit at market rate for a term of four months to mature in October 2010. The motion was APPROVED 7-0.

d. Secretary’s Report: The Secretary reported that he has begun attempting to assemble a complete set of documents relating to the legal advice received by the Board of Directors from our attorney over the past five years. He thanked several former members of the Board for their assistance in beginning this project.

e. Villa Liaison Report: The Villa Board has indicated that they would prefer the selection of one snow contractor for the coming winter.

VIII. Committee Reports:

a. Communications: There is an article in the June Gazette regarding the Cox bulk cable contract.

b. Community Center: No report.

c. Covenants: No report.

d. Election: The committee is preparing the timeline for this year’s Board elections.

e. Finance: Mal Malo and Don Horan have joined the committee.

f. Modifications: The committee presented a proposed “120 day” letter to the Board for approval. After discussion, a motion was made by Tom Whalen, seconded by Bill Barnes, to approve the proposed letter as modified during discussion for use by the Property Manager and Modifications Committee. The motion was APPROVED 7-0.

g. Property & Grounds: No report.

IX. Old Business:

a. Survey to determine Cox cable usage: Deferred.

b. Design Guidelines revision: Deferred.

c. Standards of work for snow contract for 2011: After discussion, the Board directed the Property Manager to use the Statement of Work proposed by the Ad Hoc committee as modified by the Board during discussions.

X. New Business:

a. Notice to suspend privileges of residents: After discussion, a motion was made by Tom Whalen, seconded by Bill Barnes, to authorize the Property Manager to send Violation Notices in accordance with Administrative Resolution #09-09 “Enforcement Policy and Procedures” to the owners of accounts JHANC0017, FJVILLLD55, and FJVILLLD73 due to sustained failure to pay required assessments. The motion was APPROVED 7-0.

b. Determine dates for inspection of Falls Run: After discussion, a motion was made by Tom Whalen, seconded by John Thrash, to accept the proposal of the Modifications Committee to perform the 100% community inspection in accordance with the Design Guidelines during the weeks of 19 and 26 July. The motion was APPROVED 7-0.

c. Adopt Revision #6 of the Design Guidelines: The Board directed that the four foot height restriction for real estate signs be reinstated. After further discussion, a motion was made by Tom Whalen, seconded by Bill Barnes, to accept as revised Revision #6 of the Design Guidelines, publish and distribute them to all registered owners and make them effective 1 June 2010 in place of all previous editions. The motion was APPROVED 7-0. In addition, a motion was made by Tom Whalen, seconded by John Thrash, to accept as presented the revised Modifications Application form and inspection sheet for single homes and the new “short form” application form. All to be effective 1 June 2010 and replace all previous versions. The motion was APPROVED 7-0.

d. Recommendation for outdoor pool camera: After discussion, a motion was made by John Thrash, seconded by Dot Foster, to reject the request for installation of a camera at the outdoor pool. The motion was APPROVED 7-0.

e. Contract to repair sidewalks: After discussion, a motion was made by Tom Whalen, seconded by Bill Barnes, to accept the 17 May 2010 proposal from Murphy Concrete & Asphalt in the amount of $29,280 for repair work to concrete aprons and sidewalks throughout the community. Funding to be taken from Replacement Reserve funds. The motion was APPROVED 7-0.

f. Asphalt repair project: Consideration was deferred pending receipt of additional information.

g. Reconsider change to Merrill Lynch Money Market account: The Treasurer provided the Board with revised information and noted that the Replacement Reserve account was not eligible for the proposed change.

h. Town Hall meeting on Cox bulk cable contract: The Communications Committee will hold a Town Hall meeting to discuss the bulk cable contract at 7:00pm, 22 June, in the Community Center.

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

a. Violations procedures.

b. Snow removal from sidewalks.

c. The Design Guidelines.

d. Snow removal contract.

XII: At 9:33pm, a motion to adjourn was made by Bill Barnes, seconded by Dan Owens, and approved by acclamation.

THOMAS J. WHALEN

FRCA Secretary

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of Board of Directors meeting of 26 May 2010

/s/

By: Jake P. Bernard, 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 23 June 2010.

/s/

By: Thomas J. Whalen, Secretary