DREAMS LANDING CONDOMINIUM BOARD MINUTES

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CALL TO ORDER: The meeting was called to order at 7:05 PM.

MINUTES:

Upon motion, the minutes of the September 28, 2004 meeting were approved as submitted.

NEXT BOARD MEETING: The next Board meeting will be held on Tuesday, November 30, 2004 at 7:00 PM. This meeting will also serve as an open hearing on the proposed 2005 Budget.

TREASURER’S REPORT[1]

Ray Turner introduced Gregory Gilbert, who is a Reserve Analyst with the firm of Miller Dodson, consultants that recently performed a reserve study for Dreams Landing. Mr. Gilbert briefly explained what the reserve study entailed and the methodology used in preparing it. The content of the replacement reserve report is posted at the Dreams Landing web site (see address above).

Following up on the findings of the reserve study, Ray explained how that relates to the 2005 budget proposed by the finance committee, and how the decision as to how to deal with the sewer issue impacts. Ray recognized and complimented the following owners who participated with him on the committee: Bernadette Benik, Randy Old, Dennis Seymour and Vicki Lathom.

At the request of the finance committee, Miller Dodson prepared two separate calculations of minimum annual contribution to replacement reserves. The first assumed the status quo as to the tennis court and sewage treatment plant. The recommended amount was $67,898. The second calculation assumed removal of the tennis court and discontinuation of the sewage treatment plant (i.e., conversion to public sewer). Under this scenario, the recommended annual contribution is reduced to $51,357. Ray explained that until and unless the community votes to commit to public sewer, the finance committee was compelled to assume reserve contributions under the first calculation.

A copy of the proposed budget for 2005 is attached to these Minutes as Exhibit 1. It includes an increase in condominium fees of 11.3%. However, if Dreams Landing votes to commit to the county sewer proposal, the committee would then recommend a budget which would include a 4.7%[2] increase in condominium fees, and potentially even less. This would be possible because reserve contributions would be lowered and because the community might fund some of the 2005 operating budget from reserves on a one time basis in anticipation of savings to be realized once the sewer conversion is completed. Ray further explained that if Dreams Landing converts to public sewer, there would be a reduction in condominium fees which will come in two steps. The first reduction relates to the reduced need for reserve fund contribution as set forth above. This will take effect once the community votes to commit to the county plan. The second reduction will occur once the conversion to public sewer is completed, at which time we will be able to permanently delete all sewage treatment plant expenses from the operating budget.

Discussion then turned to the costs associated with implementation of the Anne Arundel County sewer plan for Dreams Landing, and how those costs would compare to the cost of replacing the existing treatment plant with a new one. Ray submitted an updated Cost Summary relating to public sewer, along with a Comparative Cost Study prepared by Jim Patterson. Those documents are attached to these Minutes as Exhibits 2 and 3 respectively. While the various assumptions in the study may be subject to debate, the conclusion appears to be that conversion to public sewer would be considerably less costly than updating the private treatment facility.

After considerable discussion concerning all of these related matters, the Board voted unanimously to adopt and approve the budget submitted by the finance committee. This was done with the understanding that, in the event that the community votes to accept the county public sewer proposal, the budget (including the increase in condominium fee assessments) will be revised accordingly. Formal budget letters will be mailed out to all owners.

Concluding the Treasurer’s Report, Ray announced that there are no current delinquencies in receivables relating to units, but that there is one outstanding arrearage of a marina fee. The Board instructed Brodie to institute collection procedures which could result in a forfeiture of the slip license.

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MANAGEMENT REPORT

Dennis Sesplankis submitted an Operations Report dated October 21, 2004, a copy of which is attached to these Minutes as Exhibit 4.

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OWNERS’ ISSUES

Lou Swart inquired about the status of the remedial work by Gutter Helmet. She stated that rain water at the 200 building runs between the edge of the roof and the gutter. Vicki advised that Randy Old has volunteered to coordinate an effort to get Gutter Helmet to finish the gutter repairs throughout the community.

Eva Gholson had to leave the meeting before owners’ issues were addressed so she asked James Morrow to raise for her again her suggestion that the Dreams Landing Rules and Regulations be posted in the common area of the 800 building. The Board reiterated that it opposes such a posting. However, the rules have been mailed to both residents and non-resident owners. All are reminded that the rules are also posted on the web site.

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COMMITTEE REPORTS

ARCHITECTURE COMMITTEE:

No report.

FITNESS CLUB:

No report.

GROUNDS:

Pam Cicetti reported that Brickman had performed tree trimming work throughout the community.

MARINA COMMITTEE:

Dennis Seymour reported that he is still waiting for signed and notarized slip license documents from 502, 605, 903 and 1101. Please deliver the same to him as soon as possible.

PET COMMITTEE:

No report.

POOL:

Ray reported that the pool is now closed for the season. Dennis Sesplankis submitted a proposal from American Pools for next season. The bid is $3,750.00 below that of Anchor Aquatics, the incumbent pool management contractor. Ray and the Board will explore this possible option.

SECURITY/PARKING:

The Board noted a recent increase in vehicles parked in fire lanes and other no parking areas. All residents are reminded that the posted parking restrictions are in place for carefully considered reasons. Please take care to adhere to them and ensure that guests comply as well.

SEWER:

Nothing in addition to matters addressed previously herein.

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OLD BUSINESS

None

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NEW BUSINESS

None not addressed elsewhere in these Minutes.

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ADJOURNMENT: Upon motion, the meeting was adjourned at 9:25 PM.

Respectfully submitted,

Rusty Bergen, Secretary

[1] In order to accommodate our guest from Miller Dodson, and so as to be able to have ample time to discuss both the proposed 2005 budget and matters relating to the public sewer project, the Treasurers Report was addressed out of the normal turn of business.

[2] These increase figures were reported at the meeting as 11.1% and 4.5% respectively. They have been adjusted upward due to one increased expense that was discovered subsequent to the Board meeting.