Fall Creek Condominium Owners' .

Association General Membership Meeting, June 15, 2013 Proposed Minutes

Call to Order. The meeting was called to order at 10:00 a.m. by President Larry Denton on Saturday, June 15, 2013.
A quorum was established 141 units represented, 131 proxies

New members were introduced and welcomed.

Minutes. Minutes of the March meeting were read. Glenn Newsom 34-2, objected to the portion of the minutes regarding his statement about the project manager. He was told to go to the office and talk to Dennis, and this would be straightened out. Rick moved that the minutes be approved with the correction to be made regarding Mr. Newsom's objection. Jeff seconded the motion, approved 7-0. Treasurer' s Report Nick Cuezze resigned as treasurer of the Board while still remaining as an
active board member. Eugene Kennedy was appointed by the board to serve as treasurer. He has only been serving as treasurer for about two months now. During this time he has been trying to get our accounts in order and to recreate some records which were missing. Larry stated that Gene has a long history of accounting and will be a very valuable asset to our association. Since September 7 of last year we have had to rebuild our whole system. Eighteen or nineteen controls have been implemented to watch our money. Gene has been changing some things in order to put in place more checks and balances. The account balances as of May 31, 2013 are: Business checking account (land remediation) $ 49,550 General checking account (everyday business) 14,748 Reserve account 280,785 Money Market (interest bearing) 381,456

Member Questions and Comments. Leon Cabrillo, 19-3, requested that members be given a
copy of the minutes. Larry stated that a copy of the minutes would be available at the next

meeting. Minutes are on file in the FCCOA office. A question was raised regarding the status of the fraud and embezzlement. It was explained that this is still under investigation. It is under investigation by the IRS and the FBI along with all information and findings from our audit. It was not a forensic audit in that it was not an audit of the whole association but only on the people who committed the fraud. The auditor did a very thorough job. We are not at liberty to say any more about the investigation at this time. Bob Rood, former board member, sold his unit recently. Since there was only about two months remaining of his term, it was a board decision not to appoint anyone at that time and to wait until the June meeting to elect someone. Bob served as a board member for several years and was of great service to our association.

Janice Clark wanted to know how many people pay their dues annually. The exact number was not available at this time. Shirley Landon, 42-9, asked if a member paid for the year in advance and then sold his/her unit, will they get a refund? You will get your money back, but this is usually done through the title company along with the sale. A gentleman in 44-1 wanted to know the total expenses of budget to ratio. Gene could not give this mformation now. This had not been done in the past. If there is a variance he will be able to explain it. Janice Clark asked if money was put into the reserve fund prior to June 1. Yes, money was put into the reserve fund. Board Member Candidates President Denton announced that we have five candidates who are running for two board positions. Rick Key served as chairman of the Nominating Committee. He worked very hard along with the other members of the committee. Each candidate will be given approximately five minutes to introduce themselves and tell us something about them and why they want to be on the board of the FCCOA. The first candidate to speak was Mary Lawmaster. Jackie Moore spoke next followed by Christine Pennington. David Wells was next, and Nick Cuezze speaking last. Members voted for candidates of their choice. Ballots were collected. Four members volunteered to help with the counting of the ballots and the proxies. While we waited for results of the election we continued with the member comments and questions. We were able to get one insurance settlement. A portion of the money went into the land remediation account and some into the reserve account. A lesser amount was deposited in the checking account. Glenn Newsom asked, "Why are we doing decks?" It was explained that we have lost money due to the fact that the decks were not built according to code in the first place, It should take approximately six weeks to complete the work on Bldg. 34. Shirley Landon complained that she never got a report informing her that her deck was unsafe and that it was replaced. She said that she had paid all of her assessments, and that four years later she was asked to pay for the deck. A question was asked if the assessments had anything to do with the embezzlement issue. The two assessments had nothing to do with the fraud. One was for $450 and the other for $1565. These had to do with the flood. Question, Do we have a line item for Phase III?" Leon Cabrillo wanted to know what is spent each month on the project. This information is available in the office. The work still remaining to be done and the buildings involved were discussed at length. The

buildings mentioned were 71, 75, 69, 43, 44 and 26. Shirley Landon wanted to know what it would take to have our board members bonded. This would.he yet another safety feature. Larry said that he would bring it up to the Board. The issue of having background checks done on employees was also discussed. Dennis was asked to give an update on the two main services that the POA provides - lawn care and bug killing. He has been reviewing the work done in the past. Lawn care has cost us as much as $46,000 per year. He has contracted with a local company for $28,500 per year and reported that they are doing an excellent job. It was done $4,000 cheaper than what we had budgeted for the year. Some of our property is intertwined with Diamond property, and we should not be mowing their property. Josh shows them specifically where their property lies. If any of you owners know of some areas that have not been cut or trimmed let us know. Janice asked if the lawn care company was using their own equipment or ours. They are using their own equipment. The equipment that we bought in the past is still in our possession. Mike Melton with Country Pest Control is doing our pest extermination for one year. Mike is a professional, and those who work for him are also professionals. He will be here the second Thursday morning of each month. He will be taking care of all outside work for you and will do any inside work in your condo for $35.00. The previous company charged $75.00 for the inside. If you have any problem, go to him or go to the office, and he will take care of it. Mike is going to teach a couple of our men how to do the work and how to set up the storage facility for the bug juice. We will be out the cost of labor and the juice. Mrs. Niccum, 21-7, reported that when she came for a meeting and entered her condot she wondered what had happened. She said she was not notified that anything needed to be done and that they received a bill for work that was done. It was explained to her that we have a strict procedure that we follow when decks need to be replaced. Pictures are taken. Dennis and Josh look at the pictures and make the decision regarding whether the deck needs to be replaced. If it is determined that the deck needs to be replaced, a letter is then sent to the owners notifying them. If you do not want us to do the work, you need to let us know. If you want to get your own bid, you need to notify the office. If we do not hear from you within 30 days, we will start building your deck. All documentation is kept in the office. Shutters and doors are the owners responsibility. It is very important for owners to keep information regarding telephone numbers and contact information updated in the office. Election Results. The results of the election were as follows: Nick Cuezze 81 Mary Lawmaster 49 Jackie Moore 20 Christine Pennington 131 David Wells 120 Nick Cuezze wanted to know if Mrs. Shay's proxy votes were counted. He questioned whether she was a member in good standing because she still owed money in the amount of $12,000.

Larry explained that she was put on a payment plan which had previously been approved by the board. Mrs. Shay owns 38 condos and still owes money on 4 or 5 units. We got a legal opinion on this issue. She may vote the proxies on the units that are paid off but not on those where money is still owed. A member mentioned that there needs to be an amendment to the by laws. They can only be changed every three years. Dish TV At this time ten units have been hooked up to this new cable technology. The cost is $19.95 per month. It could increase up to 6%. If you wish to be signed up, call the number on the flyer. We lost our tax exempt status in 2007 or 08. An accounting firm is trying to help us get it back. Larry adjourned the meeting at 12:22 p.m. Board members will return at 1:30 for the board meeting. Respectfully submitted) Ruth Houk Recording Secretary