MINUTES

 

Frye Island Incorporated

Saturday, January 16, 2002

Marlborough, MA

 

1.               Call to Order

 

The meeting was called order by President Thomas at 9:30 a.m.

 

2.               Attendance

 

Present                                    Mark Thomas, Richard Giggey, David Decker, Jeanne Sullivan-Toomey, Tim Tinsman, Richard Roedner, Gen. Manager.]

Present via phone                    Steve Comley, Carl Hommel, Fritz Mueller.

Guests                                     Mr. & Mrs. Osborne, Jim Fredricks (via phone) and Patty Noyes (via phone).

 

3.               Real Estate Report

 

Thomas excused himself from this item based on his friendship with the Osbornes.

 

The Board considered the bid from Mr. & Mrs. Osborne to purchase lot 1330 on Knoll Circle for $5,000.

 

Questions about market rates, premature clearing and Real Estate Committee recommendations were raised.

 

Comely moved to table this item pending a recommendation from the Real Estate Committee. The motion was seconded by Tinsman.

 

Discussion ensued about the need for a variance to construct a home within the setback, regardless of ownership.

 

Vote on motion to table was unanimous, with Thomas abstaining.

 

Following additional discussion, Decker made a motion to take the item off the table, and to sell to the Osbornes for $5,500, subject to restrictions that the lots be merged into a single lot, and only one home be built. The motion was seconded by Sullivan-Toomey, and passed with 5 yeas and 3 Nays (Comley, Giggey and Tinsman) and 1 abstention (Thomas).

 

Giggey then presented the revised Real Estate Plan. Discussion topics included utilizing lot sales revenue for capital expenses, desire to minimize tax obligation and problem with local zoning regulations that do not provide for any grandfathering of lots in a Resource Protection District. The Board concluded that the Frye Island Planning Board should be petitioned to review the Shoreland Zoning Ordinance to include changes that would grandfather unbuilt lots in the RP district for the purposes of home construction.

 

The Board discussed details of a policy that will be presented to the FII Corporation in July. It was agreed that Thomas would develop a basis draft outlining the presentation and distribute it to the Board. The Board will work as a group to develop the policy between now and July.

 

4.               Approval of Minutes

 

A.        September 29, 2001    On a motion by Mueller, seconded by Sullivan-Toomey, the minutes were unanimously approved as written, with Giggey abstaining.

 

B.        October 6, 2001          On a motion by Mueller, seconded by Babineau, the minutes were amended on page 2, item D, to change the date from July 2001 to July 2002. The motion was unanimously approved, with Giggey abstaining.

 

C.        December 1, 2001       On a motion by Mueller, seconded by Giggey, the minutes were amended to delete the word "for" from the first line of Item B on page 1. The motion was approved unanimously.

 

5.               Financial Issues

 

The Board discussed the items FII paid for in 2001 that supplanted Town budgeted items, and requested that the Town set aside these funds into a capital improvement account. These included $5,000 for a ferry haul out study, $22,979 for ferry repairs, $950 for office rent in November and December, $127 for carpet cleaning in the office, and $1,000 for winter meetings.

 

Manager was requested to develop a preliminary calculation on FII's 2001 tax liability. Several changes in the income statement were requested by the Board, dealing with funds that were charged to an incorrect account. Several changes to the Balance Sheet were also noted, including dock expenses, pro shop inventory and acquisition of new golf equipment.

 

Manager was requested to evaluate the flow of cash into the office and develop a system to ensure accuracy.

 

6.               Marina

 

Jim Fredrick presented the revised Marina Policy from the Marina Committee. It was agreed that a general notice in the Winter Newsletter would alert property owners of the availability of slips for rent this year. A letter to those on the waiting list informing them of the need to place a $100 deposit to remain on the waiting list should be sent out. A notice to those on the waiting list that already have slips should be sent out informing them that they will be dropped from the waiting list, but would be eligible for a non-renewable season rental until all slips are full, due to a change in FII policy.

 

The agreed policy change was: “Only one slip may be assigned per household between the Marina and Quail Circle sites.” Those individuals that currently hold two slips will be temporarily “grandfathered: and may to hold two slips until such time as all slips are gone, At Marina “build out” and when all slips have been rented, the FII Board will revisit this issue and may eliminate the grandfathering provision.

 

Sullivan-Toomey made a motion, seconded by Decker, to have six more slips constructed for the Marina. The motion was approved unanimously.

 

Mueller then offered a motion, second by Sullivan-Toomey, to set the following fees for the marina and Quail Circle for the coming year:

 

            $750 for a renewable marina slip

            Quail Circle to remain unchanged

            $100 weekly slip rental at Marina

            $700 seasonal rental at Marina

            $850 for seasonal oversized rental at Marina

 

The motion was approved by a unanimous vote.

 

7.               Land Swap with Mr. Treacy

 

The Board discussed the history of the lot, deed restrictions and past usage.

 

The Board then raised the following questions that may be answered by an attorney:

 

A.              What impacts on buffers would a change in zoning from WOC to residential cause?

B.              What are the actual deed’s language for the recreation area, and what if any restrictions are there?

C.              What is the significance of Lot 1696 to the surrounding land uses?

D.              Does FII have any liability for the sale of liquor on the property leased by tenant from the abutter?

E.               What is the history on the conversion of this area from residential to Water Oriented Commercial?

F.               What are the pros/cons of switching this area back to residential?

G.              Are there any restrictions on this property that would cause it to revert to a previous owner?

H.              There is a shared right of way (ROW) on Playground Lane between FII and the abutter. Would a zoning change affect this ROW?

I.                 What ability, if any, does the abutter, or any other person, have to affect the usage of the road/path to the beach? What rights does FII have in this path? Would the use of this path be affected by changes in zoning?

J.                If the area in question is changed back to residential, can it still be used for recreational purposes?

 

Manager was asked to rewrite and revise these questions and submit back to Board members for review.

 

8.               Real Estate Transactions

 

The Board considered the pending 2001 negotiations for Lot 363, and on a motion by Giggey, seconded by Decker, the Manager was instructed to offer the owners the currently assessed value of the property, up to $3,000. This motion was approved unanimously.

 

9.               Property Transfer To Town

 

The Board discussed this issue, and determined that it was more appropriate to work out a new lease with the Town than to transfer additional properties to the Town. The future of this policy was left open depending on circumstances, such as State aid or increased outside funding options.

 

10.            Lease with Town

 

The Board discussed the existing lease, approvedin 1991, and determined that a new lease should be developed, that accurately reflected the services rendered by both the Town and FII, as well as what financial obligations were held by both parties. Thomas was asked to draft a new lease and then circulate for comments.

 

11.            Frye's Leap Lease

 

There was general discussion about what FII pays in property taxes on the Administration building, and whether any of those costs are covered by the lease, or should be.

 

Specific changes to the lease were suggested as follows:

 

Article I           Include language that covers the outside area between the building and the water as a part of the leased premises, and to include this area in the tenant's insurance coverage.

 

Article III        Change the date on the base rent from 1992 to 2002, and to insert the word "any" before succeeding in second sentence. The total of the lease payments should include the cost of property taxes for the leased area.

 

Article V         Insurance levels for liquor sales should be increased to $1,000,000, to include any areas where the tenant provides alcohol.

 

Article VI        The septic system should be the responsibility of the tenant.

 

Article XI        In the description of providing trucks with perishable priority status, the language should be changed as follows:

 

                        The word 'taken' should be deleted, and after 'current run' should be inserted 'if loading has not begun'.

 

Manager was asked to ascertain whether the tenant has insurance coverage that would include other leased portions of the building in the event of a fire.

 

12.            Playground and Basketball Court

 

Sullivan-Toomey presented the conceptual plans that have been drafted to date to bring the Board up to speed on these developments. The Board was very supportive of this effort and thanked the Town for its efforts to develop these two areas.

 

13.            Consideration of FII contract with Town for employment services

 

The Board determined that this was not a priority item at this time, as the savings didn't appear to be significant.

 

14.            Request to Change name of Marina

 

Manager presented a request from a “Long Beach Marina” elsewhere on Sebago Lake that FII change the name of the Island marina to eliminate confusion. This was referred to the Marina Committee.

 

15.            Golf Report

 

Thomas presented the report from the Golf Committee winter meeting, noting that fee increases for members were about 3%. The Board conducted a first reading of the proposed 2002 Policy, and scheduled a second reading and action for the March 23 meeting.

 

The golf crew will cut the grass at the ball field.

 

As part of the report, Manager was asked to contact the owner of the lot near the ball field that has a garage on it.

 

16.            Recreation Activity at Recreation Beach

 

Giggey reported on the Halloween party held at the former Recreation Building location, and noted that plans for this coming year included a community garden, new picnic tables, beach signage and a Halloween party.

 

17.            Social Activities

 

Thomas reported that the planned activities for the coming year included ice cream socials, a kids day, the Halloween party and a Sing 'n Swing.

 

18.            Other

 

Thomas asked for a motion to include meals and lodging as reimbursable expenses for those attending winter meetings. The motion, made by Sullivan-Toomey and seconded by Giggey, was approved unanimously.

 

The next meeting will be held on March 23, 2002.

 

19.            Adjourn

 

The meeting adjourned at 5:50 p.m.