FII BOARD MINUTES
SEPTEMBER 22, 2001
I. CALL TO ORDER
The meeting was called to order by Vice President Babineau, at 12:35 P.M.
Present were Diane Babineau, Dave Decker, Steve Comley, Dick Giggey, Carl Hommel, Fritz Mueller, Mark Thomas, Tim Tinsman, and Jean Sullivan-Toomey. Dave Decker (excused) was absent
Comley MOVED and Babineau SECONDED that the minutes of the FII Board Meetings of August 18, September 15 and September 16, 2000 be approved as presented. Motion PASSED unanimously.
IV. 2002 BUDGET
President Thomas requested the Board Members attend a special meeting at 12:30 PM September 29th to finalize the proposed budget (Later changed to 9:30 AM).
V. COMMITTEE REPORTS
A) Golf Committee
B) Real Estate
Lots 2026, 18 and 1925: Tabled to September 29th meeting.
General Manager Roedner reported that the Town Board of Appeals rejected the FII request for a variance for Lot 91, on the grounds that there are other uses for that lot, such as a privacy lot.
C) Ball Field Committee
Comley reported that the ball field is over ninety percent complete. The grass has sprouted. See attachment.
D) Marina Committee
Sullivan-Toomey presented a report. See Attachment.
VI. OLD BUISNESS
A) Water System Donation
The Letter to the Stockholders regarding the donation was mailed Friday, September 21, 2001.
B) Playground Funding
Sullivan-Toomey gave a proposal for purchase of playground equipment from the Real Estate Reserves. It was decided that this would best be purchased by the Town due to sales tax considerations, using funds from the Recreation Reserve. Mr. Kuiken, First Selectman, who was present, committed the town to this purchase in 2002.
C) Review Proposal for Ferry Haul Out Design
Tabled until September 29th meeting.
VII. NEW BUISNESS
A) October 6 Stockholders Meeting
M. Hommel has volunteered to prepare a list of stockholders names and lot numbers so proxies could be checked off as they arrived in the mail and those stockholders who attended the Stockholders meeting could also be checked off. Based on her questions, the Board gave her the following guidelines:
(1) One vote per lot, even if it had been split.
(2) Privacy Lots are to be counted as voting shares
(3) If a lot was sold by Leisure Living or FII, and then title is reverted back to FII, this is not a voting share.
(4) Lots designated as 500 lots can be voted, only one vote per lot
(5) If a proxy is received, and then the shareholder attends the meeting, the proxy will be returned to the shareholder
B) Request by Frye’s Leap to exercise the lease option. Tabled until September 29th meeting.
C) G. Tedford, a stockholder, requested that Real Estate reserve funds be used to repair the basketball court at the Community Center. It was decided that the court would best be repaired using the Town’s Recreational Reserve Fund. Mr. Kuiken, First Selectman, who was present, committed the town to this project in 2002.
D) Mr. R. Norris, a stockholder, presented a memo regarding the beaches. See Attachment.
E) Mr. O. Svetlichny, a stockholder, presented a memo concerning items he wanted discussed at the Stockholder’s meeting. See Attachment.
VIII. USES OF FII RESERVE FUNDS
Treasurer Babineau reported that unless steps are taken, the FII tax liability for 2001 would be in the neighbor hood of $59,650, unless steps were taken to obtain tax write-offs. After discussion, it was decided to spend about $100,000 from the Real Estate Reserve funds in the year 2001. This would bring the tax liability to about $8,600.
The following expenditures were approved:
• Engineer's report on dry dock, $5,500
• Paint Community Center exterior, $15,000
• Fire Department Warning system, $3,000
• Repay Town for its share of 2000 winter office rent, $3,000
• Copy machine lease, $3,000 a year for 3 years
• Pay for a portion of 2001office labor, $23,000
• Golf Course Equipment, $17,000 a year for 5 years
• Road gravel, $10,000
• Forgive 2001 lease to Town, $13,650
• Pay 2001 property tax on FII owned buildings, $6,636
• Staircase at golf lounge, $800
It was MOVED and SECONDED that the meeting be adjourned. PASSED unanimously. The meeting was adjourned at 3:10 PM.
Attachment Steve Comley Ballfield Report
Financial update on Ball field:
Grondin Contract Price $30,000.00
Purchase of additional needed loam & Bark 6,000.00
Portland Plastic Pipe 344.00
Turf Products Corporation 3,500.00
Supplies for Fertilizing and Seeding:
Allen Sterling & Lothrop 1,003.78
Total current expenses $40,847.78
Projected additional expenses (back stop and Plantings) 2,000.00
Remainder of funds left from 2000 Town budget $2,000.00
Frye Island Inc. appropriated for the Ball field for 2001 budget 7,500.00
Funds raised from donations in 2000 and 2001 to date. 24,000.00
(total anonymous Pledges are $8,000.00)
Additional Current Pledges 7,250.00
Total funds including current pledges raised so far $40,750.00
Attachment Sullivan-Toomy Marina Report
DRSAFT MINUTES OF THE MARINA COMMITTEE MEETING
The location of the meeting was the Community center, Frye Island, Maine.
Jean Sullivan Toomey, chair of the Marina Committee, called the meeting to order at 9:00 a.m.
Present: Chair Toomey, Debbi Anthony, Charles Arey, Rick Aspeg, John Atkinson, Ken Dolloff, Jim Frederick, Walt Hensel, Nick Lupo, Ed Mann, John Musorofiti, Pat Nannola, Dick Norden, Dick Palmisano, Brian Riley, Bob Russo, Todd Savage, Roger Stenz, Tim Toomey.
Chair Toomey noted that the Committee has been inactive in recent years, and that its present membership is uncertain. She appointed Jim Frederick to act as secretary so that minutes could be taken.
The meeting began with an open forum discussion of various issues and problems to be addressed by the Marina Committee. These included:
1. Membership on the Committee. The Frye Island Yacht Club Policy, sometimes referred to as the "Policy" indicates that members should be elected, but no elections have been held for the past several years. Chair Toomey indicated she will consider appointments of ad hoc members until elections can be held, and will also investigate when elections can be held.
2. Several in attendance expressed concern about the records of waiting lists for Quail Circle and the Marina and their accuracy.
3. The sale of four slips in the Marina this past Spring may have violated the provision in the Policy that no more than sixty (60) slips are to be sold, Questions were raised as to how to ensure that the FII Board follows policies, in both this and other situations.
4. Concerns were raised as to how rental slips in the Marina were assigned. There is a particular concern that if no more slips are to be sold, whether annual rentals could be on a renewable basis.
5. There are still issues regarding slip positions in Quail Circle following the survey completed last Winter and implemented in the Spring. There is a particular concern as to whether No. 82 is an actual slip.
6. There is a need to either move or mark rocks in the channel leading into Quail Circle.
7. There are concerns regarding the aesthetics of the barge being moored at various locations around the Island, especially near Quail Circle.
8. Questions were raised as to the budget for the marina and Quail Circle operations, including what amounts of money are being spent, the services for which they are being spent, and what contingency funds are available.
9. Concerns were raised regarding value received when money is spent for services. It was suggested that more supervision is required and that verification of performance be made before payment.
10. The docks in the Marina require maintenance, such as pounding down nails for safety, water seal for preservation, and possibly tarps for Winter protection. it was uncertain if or when regular maintenance is being performed on the docks. Also, some of the new docks appear to require adjustment.
11. With respect to the channel from the Marina, information was requested regarding the present depths, the permit process for dredging, dredging methods and progress, and related issues. Tim Toomey has some of this information but there was insufficient time for him to share it.
12. Also with respect to the channel in the Marina, it was suggested that the condition of the channel be monitored on a regular basis, with an effort to ascertain the rate of filling and the source of the sand being deposited in the channel.
13. Survey results regarding the need for additional new docks were discussed. Chair Toomey has the results and will make a preliminary determination as to the number of new docks that might be needed.
14. Security and lighting issues at the Marina were raised.
15. A need exists for a walkway from the causeway to the docks, particularly as the docks are extended further down the causeway.
16. Landscaping and plantings for bank retention were discussed.
17. The regulations regarding trailer parking were brought up for discussion.
Chair Toomey appointed working groups to gather information and, where appropriate, develop proposals regarding the items brought forward in the open forum discussion:
Dick Norden will investigate the placement and assignment of slips in Quail Circle. The object is to discover any lingering problems and solve them before the next season begins.
Ed Mann will investigate the budget and finance aspects of the Marina and Quail Circle.
Jim Frederick and Walt Hensel will consider rental issues, including what waiting lists exist and how they were developed, and long term rental policies.
Ed Mann and Tim Toomey will look into issues regarding maintenance docks.
Tim Toomey will look into issues regarding the channels and navigation.
Discussion was also had pertaining to the shooting of beavers in Quail Circle. Chair Toomey indicated that there would be serious law enforcement efforts directed against any such incidents.
Chair Toomey will hold the next meeting over the Columbus Day weekend at a time and place to be announced.
The meeting was adjourned at approximately 11:05 a.m.
Attachment Letter from Oleg Svetlichny
To: Board of Directors of Frye Island Incorporated
Dear Board Members:
Please put the following two items on the 6 October meeting agenda.
A. Building and Leasing Town Office. The Frye Island Incorporated (FII) should consider constructing an Office Building on an FII lot and then leasing it to the Town of Frye Island at a fare market value.
The following facts are the rationale behind this proposal. The present Office Building does not adequately meet the needs of the Town and does not meet at all the Federal ADA requirements. Nor does it have sound fire protection for Town's records. Furthermore, it is not efficient in terms of heating and cooling. For example, the largest room is heated or air‑conditioned to benefit, for the most of the days, just one employee. Finally, its structural condition is very poor. On the other hand, I'll has many suitable lots and the money to construct a well‑designed office building, which would provide FII with a steady income and improve its tax position.
B. Moratorium on Selling FII Land. The Frye Island Incorporated (FII) should consider changes to the process of selling I'll land by requiring that any sale must be approved by the majority of shareholders at a general or special meeting of shareholders. The exception to this rule would be sales of lots as privacy or pump back lots.
The following facts are the rationale behind this proposal. At this time FII does not need additional funds. Recent sales have put FII in an unfavorable tax position. FII had no clear and clearly communicated statements why it decided to sell valuable waterfront lots this summer. This activity has created unhealthy atmosphere on the Island. FII lots are most valuable corporate assets. The decision to sell any lot should not be left to the discretion of only nine shareholders.
22 September 2001