Frye Island Incorporated

Winter Meeting, January 20, 2001
Holiday Inn Express, Saco, ME

Meeting Minutes

President Thomas called the meeting to order at 2:55 p.m. All members were present, in person or via teleconference.

President Thomas noted that agenda item V d, discussion of Lot 800, would be taken out of order.

Carl Hommel made a motion to give Lot 800, as a gift with no restrictions, to the Town of Frye Island. Mr. Comley seconded the motion, and all were in favor.

President Thomas declared the meeting in recess at 2:56 p.m.

President Thomas re-convened the meeting at 3:35 p.m. All members were still present in person or via tele-conference.

III. Approval of Minutes

a.         Mr. Hommel made a motion to approve the minutes of September 30, 2000 as presented. The motion was seconded by Mr. Gately, and all were in favor.

b.                  Gately made a motion to approve the minutes of October 21, 2000, changing the list of attendees to exclude Mr. Mueller who was listed as both present and absent. Ms. Babineau seconded the motion, and all were in favor.

IV. Financial Reports

a.                   The Board reviewed the FY 2000 year-end report. Comments submitted by Thomas (attached) were reviewed, as were the responses provided by staff. There was concern raised about the incomplete nature of the report, noting that the several items appeared to be posted incorrectly. Mr. Theberge indicated that there were several items that he was still researching in order to make corrections.

b.                  Thomas noted that as of January 1, 2001, FII books were now being kept on Quicken, so the level of detail should be improved, as well as the report format. It was further noted that the Deputy Clerk was being assigned as the primary contact for FII financial information.

c.                   The Board reviewed the 2001 report as to format. No entries had been made due to the time early period of the fiscal year.

d.                  The Board reviewed the draft financial SOPs, (purchasing policy and cash management) and felt that they were heading in the right direction.

e.                   The Board was notified of the resignation of Patty Graham as manager of the Pro Shop/Lounge, and that Ms. Nute had declined the offer of accepting that position. It was decided to advertise for the position later in the winter.

V.                 Reports

a.                   Mr. Giggey reported that FII had revenues of approximately $91,000 from the sale of real estate in 2000. The General Manager was asked to send out a report of all real estate transactions in 2000, and pending ones for 2001, with lot #, price, owner, etc. It was noted that 2001 revenues from real estate sales could approach $300,000.

Mr. Svetlichny offered a motion to require FII to utilize the revenues from the sale of real estate to assume maintenance responsibility for the ferries, and to bill the town for any work completed; to proceed with cleaning the interiors, check hull thickness (one boat only), sandblast both boats, repaint both boats, perform critical weld inspections, construct haul out facility for ferries. The motion died for lack of a second.

Mr. Svetlichny offered a motion to prevent FII from selling any additional lots unless the proceeds from the lot sale were obligated to a particular item. The motion failed for lack of a second.

Thomas suggested a four part process to evaluate the existing ferries as follows:

1. Have Blount Marine perform the inspection and submit a report.

2. Evaluate various ways to pull ferries out.

3. Complete the maintenance as recommended by Blount.

4. Evaluate need for third ferry, using historical data such as population growth, number of trips, number of vehicles per trip, etc. and develop a projection for future growth.

Giggey continued with the real estate report on the following lots:

Lot 294 - negotiations are under way with Mr. Palli regarding building design and site layout, as well as the possible need for a pump back lot.

Lot 229 - No information was provided on this issue.

Lot 1223 - This lot is under investigation regarding the limited road frontage and any grandfathering issues.

Lot 137 - General Manager has been asked to investigate this lot regarding the placement of septic systems.

Lot 91 - This lot is under offer for sale pending location of adequate off site septic area. General Manager was asked to look into the ability of FII to extend septic lines across adjacent properties as per deed covenants.

Lot 236 - The General Manger reported that the closing on this lot had occurred on January 3, 2001, and that FII now owns it. He added that this lot was traded for Lot 137 at some point in the past, under the understanding that 137 was not buildable.

b.                  Thomas reported that the Golf Committees winter meeting was upcoming on February 3. The irrigation project from last fall is nearly completed, with some work remaining on 9 and 2. He added that FII should look for a new home for the golf course equipment. A suggestion was made by Mr. Decker that the Jed Shed be torn down and a new facility built there.

c.                   Decker reported that the Marina Committee (him) was preparing a survey of islanders regarding the needs of boaters for slip space and size. He added that the slips at the Marina should be placed earlier than in past years. The General Manager noted that all the slips at Quail Circle had been surveyed and that the pins were in. He added that the slip markers would be re-set this spring.

Decker brought up the issue of slip sales at the marina this year. There have been several requests. The General Manager was asked to check with Great Northern about the cost of slip construction and availability. After discussion, it was decided that the fee should be the subject of an "e-mail meeting" with a decision to follow.

VI.              Asset Transfers

This item was postponed to the end of the meeting.

VII.            Old Business

a.                   Thomas noted that no land was donated at the end of 2000, but that this would be an option to consider for 2001 as revenues will be even higher than in 2000.

b.                  The General Manager noted that he had received two requests concerning lots that the owners would like to sell/give to the Town/FII.

c.                   The window update was given previously during the Board of Selectmen's meeting.

d.                  The General Manager explained the problems encountered in obtaining group insurance for the Golf Course Superintendent, and the potential conflict between this position and the Pro Shop/Lounge Manager. On a motion by Babineau, seconded by Mueller, it was decided to offer health coverage to the Pro Shop/Lounge Manager, thereby creating a group. The General Manager was asked to expedite this process and secure coverage for the Superintendent ASAP.

VIII.         New Business

a.                   The General Manager briefed the Board on the issues surrounding the Boulanger and McLaughlin properties. The Board instructed the Manager to review the record from past  as it felt that it had agreed to a similar arrangement in the past. The Board reiterated that it had no objection to extending the ROW of Shore View Circle to the Boulanger property, as long as there was a written easement providing the McLaughlins access across both Boulanger lots.

b.                  The Quail Circle survey update was given previously.

VI.              Asset Transfer

As an introduction of the discussion on asset transfer, Thomas noted that this is a work in progress, and that any recommendations made would have to be considered at the next Town Meeting and Board meeting before becoming official.

a.                  Hommel reported on the Water System, and summarized his asset report. The recommendation was to give the water system to the Town, with a stipulation that in the event there were ever any user fees charged, all island property owners would have the same rate. Hommel was asked to follow up with the State regarding State funding that has been offered to the island, and whether the offer remains valid after July 1, 2001.

b.                  Hommel introduced his summary of the issues surrounding the roads on the island, specifically municipal responsibility for maintaining municipally owned roads. Thomas offered a motion to formally request a letter from the Town of Frye Island indicating that FII has no maintenance responsibilities for the roads on the island. The motion was seconded by Babineau and approved unanimously.

The consensus was that the roads should remain in FII ownership.

c.                   Crosby reported on the former dump. He reported that additional information regarding past uses of the site had to be completed before a firm recommendation could be given. The General Manager was asked to check with local firms regarding various technical issues.

d.                  Giggey reported that the recommendation was to transfer all recreational assets over to the Town, with a stipulation that at all times all island property owners would have equal access to them.

Mr. Potts commented that he felt the beaches should be excluded from this list and remain an FII asset, unless the Town could maintain the existing level of privacy for islanders and renters.

The General Manager was asked to seek an opinion from MMA regarding the ability of towns to charge differential rates for beach use by residents versus non-residents, and the applicability of ADA requirements for existing recreation facilities.

e.                   Thomas reported that the report on the Golf Course would be made later in the spring, after the various municipal courses in the State opened and he was able to discuss issues with the operators.

f.                    Decker reported that his recommendation was that the marina and Quail Circle be maintained as assets of FII.

g.                   Thomas reported on the various buildings owned by FII as follows:

Administration Building - ownership should be transferred to Town

Community Center - ownership should be transferred to Town

Old Fire Barn - ownership should be transferred to Town

Ferry Trailer - ownership should stay with owner of ferries

Pumping Stations - ownership should stay with owner of water system

Maintenance Building - wait on this pending report on water system

Golf Pro Shop - ownership should stay with owner of Golf Course

h.                   Decker reported that the recommendation was to have the ownership of the ferries transfer to the Town, but that it should be verified that there would be no additional requirements that a Town-owned ferry would have to meet.

i.                     Giggey reported that his committee had not completed its inventory of FII-owned lots, so no recommendation was available. The discussion of the Board lead to a recommendation that all un-buildable lots be given to the Town. Giggey stressed that any and all transfers should be subject to a requirement that that the Town maintain equal access and use for all islanders - residents, non-residents and renters - in the future.

Based on the recommendations received, the General Manager was asked to obtain a legal opinion as to the rights of the FII stockholders in the assets of the Corporation.

IX.              Adjourn

A motion to adjourn was made at 6:50 p.m. by Thomas. It was passed by acclimation!

Respectfully submitted,

Richard Roedner
General Manager

as approved 3/24/01