DREAMS LANDING CONDOMINIUM BOARD MINUTES

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

MINUTES:

Upon motion, the minutes of the October 26, 2004 meeting were approved as submitted.

NEXT BOARD MEETING: The next Board meeting will be held along with the 2004 Annual Meeting on Saturday, December 11, 2004 beginning at 9:00 a.m.

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MANAGEMENT REPORT

Per the request of the Board, Brodie obtained competing bids for the 2005 pool management contract. The incumbent pool contractor, Anchor Aquatics, had previously bid $17,750.00. Brodie obtained a bid from American Pool Management, Inc. of $14,000.00 and one from DRD Pool Service, Inc. of $14,400.00.

Ray Turner, as Pool Supervisor, related that though Dreams Landing has had a long history with Anchor, there have been repeated serious problems over the past two or three years, virtually all of which involved substandard and grossly inappropriate performance by life guards. It was agreed that Anchor’s response to these specific issues were not satisfactory. When questioned by the Board, Pam Conti stated that Brodie has been aware of similar complaints concerning Anchor from other communities. She also said that Brodie has worked with both American and DRD, and that both received favorable reviews. After discussion, the Board agreed to award the 2005 pool management contract to American Pool Management, Inc.

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Note: Due to the need to address the 2005 operating budget, and to time conflicts, the normal course of business for this meeting was suspended. Any pending matters not addressed will be taken up at the December 11^th meeting.

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TREASURER/BUDGET REPORT

Treasurer Ray Turner presented the recommendations of the budget committee. Bernadette Benik and Randy Old, two other prime contributors to the committee’s efforts, were present and participated in the discussion.

First, it was noted that, according to information provided by Anne Arundel County, the community overwhelmingly approved the public sewer proposal. From the ballots received immediately prior to the meeting, just over seventy-five percent (75%) of all owners had voted in favor of the project. (Note – the County required an affirmative vote of 51% of all owners to go forward.) A few ballots had not yet been returned. Not one ballot returned was in opposition to the public sewer project. Thus, the proposed budget from the committee was predicated upon the assumption of the implementation of public sewage.

Ray explained a few updates to the October 26^th proposed operating budget spreadsheet which had been circulated with the annual budget letter. There was an additional line item of income in the amount of $960 representing management fees payable from the Marina. This represents a charge back to the Marina by Dreams Landing since Brodie bills Dreams Landing a lump sum for managing both the condominium and for providing administrative services to the Marina. The new pool management contract resulted in a reduction of $3,750 from contract expenses. An update of the reserve study based upon implementation of the public sewer project reduced reserve contributions from $67,898 to $51,357. Based on these adjustments, it was reported that the budget committee proposal called for revenue from regular assessments (condominium fees) in the amount of $256,857. This would require an increase in condominium fees of two and nine-tenths percent (2.9 %).

A discussion ensued which included estimated operating cost reduction once the conversion to public sewer is completed, the concept of borrowing against reserves in contemplation of those future savings, and reserve investment strategy. The Board then voted unanimously to approve the proposed 2005 operating budget, subject to the modifications as set forth above.

The final independent audit draft prepared by Gordon and Associates, Certified Public Accountants, was presented by the treasurer and accepted by unanimous vote of the Board. The final audit will be made available on the Web site.

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ADJOURNMENT: Upon motion, the meeting was adjourned at 8:10 p.m.

Respectfully submitted,

/s/

Rusty Bergen, Secretary

MANAGEMENT REPORT

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Note: Due to the need to address the 2005 operating budget, and to time conflicts, the normal course of business for this meeting was suspended. Any pending matters not addressed will be taken up at the December 11th meeting.

TREASURER/BUDGET REPORT

Note: Due to the need to address the 2005 operating budget, and to time conflicts, the normal course of business for this meeting was suspended. Any pending matters not addressed will be taken up at the December 11^th meeting.