Russlen Farms Annual Home Owners Meeting Salem Public Library Sunday, March 2, 2008 The meeting was called to order at 3:35 p.m. by Joe Thomas. Several questions were asked by home owners while reviewing the budget, including the following: Question: When did Graham/Thomas begin paying the $1,000 monthly lease payments for the Sales Office rental in the clubhouse? Answer: It was either November or December. Betty Gray will check and correct the budget to reflect the actual payments. Question: Does the Board get quotes on landscaping? Answer: Yes, Betty Gray has already obtained two landscaping quotes and will get a third. The Board will determine who is selected as the landscaping company, keeping cost and quality in mind. Note: Joe Thomas reimbursed the HOA $3,000 for the mis-communication with the landscaper that resulted in the excessive weed retention work performed last summer. Question: Does the clubhouse have programmable thermostats – this is a good way to conserve energy? Answer: Joe Thomas will check and install programmable thermostats. Question: Why are we paying for snow removal when Roanoke County provides this service? Answer: We hired Turfmasters for snow removal as an added benefit to our home owners because if often takes the county several hours after a snowfall to plow. We will immediately stop using Turfmasters and rely upon the county. Question: The cable bill ($112.68) looks very high, what does it include? Answer: We will review the cable bill in detail and make any necessary changes to our cable subscription so that we are only paying for basic service. Question: Do the Villas have a separate maintenance program? Answer: Yes, there is a separate maintenance plan for the Villas. We are looking into having a separate home owners meeting for the Villas’ residents. Question: How many houses are part of the HOA? Answer: 118 homes at this time. Question: How often will the annual HOA fee be reassessed? Answer: Each year the Board will assess the fee after the budget is prepared. It is important to keep in mind that we have to start planning for reserves so that we can pay for building and equipment replacements (i.e., pool pump and heater). Question: How many additional house fees are included in the HOA budget for 2008? Answer: We assumed 10 additional house sales as part of the budget. This is a conservative number and if we sell more houses, we will have more revenue that can be used for reserves. Question: The phone bill seems high, what does it include? Answer: Joe Thomas commented that all utility bills will be reviewed in detail by the Board and necessary adjustments will be made. After the question and answer session, a motion was made and seconded to approve the 2008 HOA budget. The budget was approved by a majority of homeowners. Survey Results Joe Thomas reviewed the results from the home owners survey. Here are the findings: 1. Are the pool and clubhouse hours adequate? Yes: 36 No: 5 2. The water temperature of the pool is: Too cold: 19 Too hot: 0 Just right: 19 3. How do feel about the maintenance and cleanliness of the pool and clubhouse? Clean: 27 Average: 10 Needs improvement: 0 4. Does the exercise equipment meet your needs? Yes: 31 No: 8 5. Should the clubhouse reservation policy be changed? Yes: 2 No: 28 After reviewing the survey results, the following topics were discussed: We are going to keep the pool rules the same for now based on the survey results. We have about $3 million in liability insurance for the pool and clubhouse. The pool chemicals are checked 3 times per week. We are going to add a bulletin board by the pool for updates. For the 2008 pool season, we will begin requiring swim pants for all children in diapers based on situations that occurred last year. We are not going to reduce the age requirement for children to use the exercise equipment. If a street light is out, call AEP to repair. Please make sure you place your trash can in your garage and do not allow loose trash to fly around the neighborhood on windy days. Construction Update River Oaks II is nearly completed. River Oaks III is being reviewed by the bank and county. Woodhill is under construction and additional recreation areas may be added. Additional villas are also being considered for Woodhill. The meeting was adjourned at 4:40 p.m.