DREAMS LANDING CONDOMINIUM BOARD MINUTES

Christine Alvey

James Morrow

Jean Morrow

Tim Pohmer

Nancy Pohmer

Jill Voran

Eva Gholson

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CALL TO ORDER: The meeting was called to order at 7:00 PM.

MINUTES:

Upon motion, the minutes of the August 31, 2004 meeting were approved as submitted.

NEXT BOARD MEETING: The next Board meeting will be held on Tuesday, October 26, 2004 at 7:00 PM.

MANAGEMENT REPORT

Dennis Sesplankis reported on behalf of Brodie Management. He advised of the following issues:

· The water leak situation in the area of the 900 building has been successfully repaired. The location of the leak was consistent with that determined by the leak detection contractor. The excessive sump pump operation in 901 has ceased, and there is no more water percolating up through the road bed.

· An electrical contractor investigated the inoperative street light in front of 1002. It was determined that the recent concrete work may have severed the power line. Repairs are under way.

· A maintenance contract for the fitness club has been consummated with Fitness Technologies at a bi-annual cost of $190.00.

· Work is in progress to determine the best way to address repairs to the eroding wall at the northwest end of the tennis court adjacent to the access road.

· The roof of 1304 was inspected and a missing shingle on the ridge cap was replaced. Also, based on a report of leaking in the patio room at 601, an inspection revealed clogged weep holes in the sliding glass window. Repairs were made.

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OWNERS’ ISSUES

Tim Pohmer extended appreciation to Brodie Management for the prompt fix of the water leak problem at 601. He also inquired about inadequate outdoor lighting in various areas of the community. Dennis Seymour related that, several years ago, BG&E assisted in a lighting security study of the community. Several areas were identified for possible improvement, but the Board at that time determined that the cost to upgrade the existing lighting was prohibitive. The Board now agreed that Brodie is to study the situation and see if improvements can be made at an affordable cost.

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COMMITTEE REPORTS

ARCHITECTURE COMMITTEE:

No report.

FITNESS CLUB:

Jill Voran reported that she and Rusty Bergen have been working on a revision to the club rules so as to provide for use of members’ personal trainers. The revised rules will be submitted at the next Board meeting.

GROUNDS:

No report.

MARINA COMMITTEE:

Dennis Seymour reported that the bill for the repairs and replacement of the marina electric circuit breakers totaled $547.45. He also reported that there have been several recent incidents of crabs being stolen from marina slip holders’ crab traps. All residents are asked to watch for and to report any suspicious activity around the marina.

PET COMMITTEE:

No report.

POOL:

Ray reported that the pool is now closed for the season. The Board also discussed that there were several incidents of less than satisfactory behavior and performance by the lifeguards provided by the pool management company. Dennis Sesplankis stated that Brodie has received reservations from other communities which it manages about renewing the contract with the same pool management company. However, it is unclear what other pool management options might be available.

SECURITY/PARKING:

No report.

SEWER:

Vicki Lathom reported that Anne Arundel County is scheduling another meeting with the Board to follow up on matters discussed in the August meeting. In addition to responding to the board’s request for examination of using the existing building, it is expected that the county will present a new design proposal which in all likelihood will involve locating certain pumping station equipment on the hillside as close to the east boundary as possible. The meeting is expected to take place in mid October.

The current four year maintenance contract with our treatment plant operator will expire at the end of this calendar year. The current contractor has submitted a renewal proposal reflecting an annualized increase from $26,000 per year under the expiring contract to $36,000 per year under the proposed renewal. Vicki believes that the contractor would be willing to agree to a year to year agreement which would give Dreams Landing the right to terminate without penalty if circumstances change. The increase is driven by escalating time required to maintain the aging plant, and by significant insurance cost increases imposed on treatment plant operators. The Board agreed that it is unlikely that we could find a reliable treatment plant operator which would be willing to serve our needs at a significantly lesser cost. Also, the current operator has knowledge of and experience with issues unique to our plant. Thus, it is the sense of the Board that we should reach an agreement with our current contractor for a one year renewal.

In response to community questions about the probable cost to individual unit owners related to the potential county sewer project, Ray Turner made a presentation concerning the options. He explained the different cost scenarios, based upon variables such as the applicable interest rate, percent of ownership, etc. Ray has prepared a written summary of his presentation, a copy of which is attached to these Minutes.

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TREASURER’S REPORT

Ray first discussed the state of the current budget and made these points:

· Expenditures for maintenance of the sewage treatment plant are currently over budget and will certainly be over at years end.

· The year to date deficit is about $5,800. However, due to the timing of various recurrent expenses, this may move closer to even by the end of the year.

· There is one unit owner account showing delinquent. Brodie will verify and invoke the collection process as appropriate.

He then addressed the draft budget proposal prepared by Brodie Management. Ray advised that the proposal includes a recommendation to increase condominium fees by five percent (5%). One major factor in the increase is the thirty-six percent (36%) increase under the proposed renewal of the sewage maintenance contract. Ray also stated that the Brodie draft budget did not include a proportionate increase in reserve funding consistent with historical budgeting. If the reserving is increased proportionate to the overall budget increase, the condominium fee increase would be approximately nine and a half percent (9.5%). On a related matter, Ray briefly discussed the recently completed Replacement Reserve Report prepared by Miller Dodson Associates. Any owner wishing to obtain a copy of that report may do so by contacting Brodie.

One bit of positive news -- we have learned that the condominium insurance premiums for the coming year will actually go down. While the base premiums will remain level, we will no longer be required to pay a loss history surcharge, due to the fact that Dreams Landing has not submitted claims over the last three years. The total amount of property coverage under the master policy is now six million dollars.

The budget committee will be meeting soon in order to review the Brodie proposal and to develop a budget proposal from the committee for submission to the Board. Any owner may participate on the committee; contact Ray Turner to do so.

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OLD BUSINESS

Rusty Bergen reported on recent activity in the Strange v. Dreams Landing civil matter which is still pending before the District Court of Maryland. Though trial in this case was completed last fall, no decision has been issued as yet by the court.

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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 8:25 PM.

Respectfully submitted,

Rusty Bergen, Secretary

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Attachment to 28 September 04 minutes:

The following is in response to several owner requests about estimated costs for public sewer. As previously circulated, there are three components of the cost:

1. Equivalent unit capacity purchase charge (aka "connection charge"): $3,000/unit, one time upon connection to public sewer. Billed by county to homeowner directly; financing available from county.

2. Debt service and retirement on Dreams Landing capital project sewer construction costs of $748,000. Billed by county to homeowner directly; financing available over 30 years, as expanded on below.

3. Waste water treatment sewage charges billed by county to Dreams Landing Condominium and paid for by owners as part of condo fee (like done presently).

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Expansion on Item #2 above:

ANNUAL PAYMENTS FOR 30 YEAR LOAN FROM COUNTY OR STATE

FOR CAPITAL PROJECT CONSTRUCTION COSTS OF PUBLIC SEWER

October 7, 2004

Total cost: $1.2 million

County share: $442,000

Our share: $748,000

Loan rate (30 years)	Typical Unit @1.79%*	Highest % ownership units @2.86%*	Lowest % ownership units @1.34%*
5.2% (county)	$889	$1424	$667
2.8% (state)	666	1063	498

Lump sum	$13,389	$21,393	$10,023

Notes:

1. County remains consistent in saying our share of project will be equal to, or less than, $748,000.

2. Loan rates are county estimates and are subject to change with market conditions. We continue to hold out good hope that we will qualify for the lower state financing rate.

3. Loan balance may be transferred to new owner or unpaid balance may be paid off at any time.

4. Annual payments will be billed by county to unit owner annually on January 1. Mortgage lenders sometimes provide, and may require, that annual payments be prorated and made part of monthly mortgage payment (similar to property tax escrow process).

5. *percentage of ownership. These numbers are intended to show some examples. Owners can check the web site for specific unit percentages and do their own calculations.

6. Sewage Plant Contract, Sewage Plant Supplies, and Sewage Plant Maintenance accounts all would disappear from Dreams Landing budget upon connection to public sewer.

10/7/04

Dreams Landing Condominium

DECLARATION FOR ESTABLISHING A PLAN FOR CONDOMINIUM OWNERSHIP OF PREMISES LOCATED IN ANNE ARUNDEL COUNTY, MARYLAND PURSUANT TO THE REAL PROPERTY ARTICLE OF THE ANNOTATED CODE OF THE STATE OF MARYLAND

June 25, 1975

Units Grouped by Percent Interest as Provided in Condominium Declaration (Exhibit "B")

% ownership interest units to which % ownership interest applies

1.34 301, 302, 303, 801, 802, 803, 804, 1201, 1203

1.41 304, 1202, 1204

1.49 1004, 1005, 1006

1.58 904, 1102

1.60 902, 903

1.61 703

1.62 403, 1101, 1104

1.64 1103

1.66 901

1.70 701, 1301

1.73 402, 702, 1302, 1303

1.74 704, 1304

1.77 202, 203

1.79 201, 204, 401, 404

1.85 1007

1.87 1002, 1003

1.96 102

2.00 1001

2.03 103

2.13 604

2.21 101

2.24 602, 603, 605, 606

2.45 502

2.70 503

2.86 501, 601, 607