FALLS RUN COMMUNITY ASSOCIATION, INC

Minutes of the Meeting of the Board of Directors

23 June 2010

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

Members Absent:  Dot Foster

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

I.  The meeting was called to order at 7:00pm in Conference Room 1 of the Community Center by the President, Jake Bernard.

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

              a.  Presence of Cox Communications personnel at the Town Hall meeting.

              b.  Several trees on common ground at the end of Carson Drive appear to be dying.

III.  Announcement:  The Town Hall meeting regarding the bulk cable contract was held yesterday.

IV.  Approval of Minutes:  A motion was made by John Thrash, seconded by Bill Barnes, to waive the reading and approve as written the minutes of the meetings of 26 May 2010 and 16 June 2010.  The motion was APPROVED 6-0, Dot Foster absent.

V.  Individual Reports:

              a.  Management Report:  The Property Manager updated the status of pending contracts and current work in progress.  In addition, the Board was requested to approve the issuance of letters to three owners as a result of the Covenants Committee hearing on 23 June.  Therefore, a motion was made by Bill Barnes, seconded by Tom Whalen, to direct the Property Manager to issue “Failure to Respond to Notice of Violation and Hearing Opportunity” letters to the owners of Accounts JHANC0017, FJVILLD73 and FJVILLD55 in accordance with the procedures contained in Administrative Resolution #09-09, “Enforcement Policy and Procedures”.  After discussion, the motion was APPROVED 6-0, Dot Foster absent.

              b.  Activities Director’s Report:  The Activities Director provided an update on planned activities during the summer and noted that 15 members of the concierge staff had received CPR training recently.

              c.  Treasurer’s Report:  A motion was made by Bill Barnes, seconded by Tom Whalen, that the Falls Run Community Association take $200,000 from the BB&T Reserve Money Market account and purchase two Certificates of Deposit of $100,000 each at market rates for a term of 24 – 36 months.  This will reduce the balance in the FRCA BB&T Reserve Money Market account to a FDIC insured level.  The motion was APPROVED 6-0, Dot Foster absent.

              d.  Secretary’s Report:  The Secretary discussed the list of historical documents previously distributed to the Board and indicated that these documents would be made available to residents with the exception of those so noted on the list.  The Board concurred without a formal vote.

              e.  Villas Liaison Report:  No report.

VI.  Committee Reports:

              a.  Communications:  Norm Kolb reported that over 135 residents attended the Town Hall meeting regarding the bulk cable contract and that Cox Communications had confirmed that they would not offer a bulk cable contract for less then 100% of the community.

              b.  Community Center:  No report.

              c.  Covenants:  No report.

              d.  Election:  No report.

              e.  Finance:  No report.

              f.  Modifications:  The workshops for the volunteer inspectors are going well.

              g.  No report.

VII.  Old Business:

              a.  Asphalt repair project:  Major asphalt rejuvenation has been postponed as not being needed at this time.

              b.  Snow plowing contract:  The “Requests for Proposals” have been mailed to potential vendors with a requested return date of 1 August 2010.

VIII.  New Business:

              a.  Approve 2009 Audit:  After discussion:

                             1/  A motion was made by Bill Barnes, seconded by Tom Whalen, that the Board of Directors approve the 2009 Audit, Draft 2, as prepared by Goldklang Group and dated 30 April 2010.  In addition, request approval for the Falls Run Community Association President to sign the Representation Letter which will authorize the Goldklang Group to issue the Final version of the 2009 Audit report.  The motion was APPROVED 6-0, Dot Foster absent.

                             2/  A motion was made by Bill Barnes, seconded by John Thrash, that the Falls Run Community Association follow the recommendation by the Goldklang Group and file its 2009 Income Tax using the corporate method.  The motion was APPROVED 6-0, Dot Foster absent.

                             3/  A motion was made by Bill Barnes, seconded by Dan Owens, to accept the proposal from The Goldklang Group to perform FY 2010 and FY 2011 financial audits of the FRCA at a total cost of $6,350 [2010] and $6,550 [2011].  The motion was APPROVED 6-0, Dot Foster absent.

              b.  Asphalt repair & striping:  After discussion, a motion was made by Dan Owens, seconded by Bill Barnes, to accept the Brothers Paving proposal to perform asphalt repair and striping in the amount of $7818 to be taken from Replacement Reserve funds.  The motion was APPROVED 6-0, Dot Foster absent.

              c.  Paint balance of retaining wall railings:  After discussion, it was decided that the Property Manager would survey all FRCA retaining wall railings not painted last year to determine those in need of immediate painting or repair.

              d.  Develop timeline for budget review:  The following timeline was established for the FY2011 Budget review process:

                             1/  15 July – Committee inputs due to Finance Committee.

                             2/  15 September – Finance Committee draft budget sent to Board.

                             3/  29 September – First Board special session on budget.

                             4/  6 October – Second Board special session on budget.

                             5/  8 October – Third Board special session on budget.

                             6/  27 October – Budget approval on Board agenda for regular monthly meeting.

              e.  Reserve Fund study:  After discussion, a motion was made by Tom Whalen, seconded by John Thrash, to select Mason & Mason to perform a Reserve Fund study in 2011 at a cost of $7525.  The motion was APPROVED 6-0, Dot Foster absent.

              f.  Trash contract:  After discussion, a motion was made by John Thrash, seconded by Dan Owens, to accept the 15 June 2010 proposal from American Disposal Services to cancel our current contract and replace it with a new contract for the period 1 June 2010 to 31 December 2016 at a cost per month of $10,497.78 for 2 weekly collections and $9,019.68 per month for one weekly collection.  This represents a savings of $6,484.02 per year over our current contract.  The motion was APPROVED 6-0, Dot Foster absent.

              g.  Reimbursement of FRCA Officer’s expenses:  A motion was offered by John Thrash to establish expense accounts for the President, Secretary and Treasurer of the Falls Run Community Association at a rate of $30 per month.  The motion failed to be seconded and was not considered by the Board.

IX.  Open Forum:  The following topics were discussed at this open forum:

              a.  Replacement of retaining walls.

              b.  Expenses for Board officers.

              c.  Asphalt crack filling.

              d.  Basis for Violation letters.

              e.  Length of Certificates of Deposit of FRCA funds.

              f.  Maintenance of railings on retaining walls.

X.  Adjournment:  At 8:40pm, a motion to adjourn was made by John Thrash, seconded by Dan Owens, and APPROVED 6-0, Dot Foster absent.

              /s/

THOMAS J. WHALEN

FRCA Secretary

FALLS RUN COMMUNITY ASSOCIATION, INC.

Minutes of the Board of Directors meeting of 23 June 2010

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 28 July 2010.

By:  Thomas J. Whalen, Secretary