Minutes

Frye Island Incorporated

March 23, 2002

Saco, Maine

 

1.               Call to Order

The Meeting was called to order by President Thomas at 1:30 p.m.

 

2.               Attendance

Members present in Saco: Decker, Sullivan-Toomey

Members present via phone: Thomas, Babineau, Giggey, Mueller, Hommel, Tinsman, Comley

Additional attendees: Jim Kuiken, John Crosby, Bob Roberts, Pat Karpacz, Oleg Svetlichny

Staff present: Richard Roedner, Pat Noyes

 

3.               Approval of minutes

January 19, 2002         After reviewing the minutes, and the comments of Mueller and Sullivan-Toomey, the minutes were approved by a unanimous vote.

 

4.               Financials

The Board reviewed the 2001 year end financials, and suggested that the following adjustments be made: Separate pool income into FII Rental (under Admin.) and Pool Income (under Marina). There should also be an FII Pool Administration Income line.  Additionally, seemingly some of the transfers that were made for tax purposes were not yet reflected in 2001 reports.  The financials should be updated to show these adjustments as soon as possible.

The Board then reviewed the 2002 report, and suggested that the monthly budgets should be made realistic. For instance, Greens fees only come in when the island is open, not in 12 equal increments throughout the year.  It was noted that a reasonable approach would be to use last year monthly “actuals” as a basis, and then to adjust the actuals to meet this year’s budget.  It was also noted that the payroll information did not appear current.

 

5.               Reports

A.              Real Estate

There was discussion as to the sale of lots that were agreed to last fall, specifically the interest rate to be charged for financing. Decker made a motion to finance at 6% fixed for 15 years. This was seconded by Mueller, and failed by a unanimous vote.

Giggey offered a motion to offer a 15-year loan, at a variable interest rate, to be 2% above prime, adjusted annually. This was seconded by Hommel. This motion was discussed at length, regarding the length of term and the proposed interest rate. Comley offered a motion to amend, changing the interest rate to Prime + 1.5%. This was seconded by Babineau and approved by a unanimous vote, with Sullivan-Toomey abstaining.

It was clarified that the loan would be adjusted annually on January 2, at the then current Prime Rate plus 1.5%.

Thomas noted that the buyers should be responsible for paying the bulk of the legal fees involved in the closings.

Lot 2026 was brought up in light of the Steeves & Graf letter. Roedner indicated that he had checked the plans for an approval date, which was confirmed by Hommel. The requested ceding of the sides of the cul de sac can be included in the deed.

The real estate policy was reviewed. Giggey asked for critiques via e-mail, so that it could be brought back in May.

Thomas requested that the letter he drafted with Dick Norris’ assistance be mailed out over his signature. The Board agreed that these were changes in the land use ordinance that should be pursued.

 

B.              The 2002 Golf Handbook was reviewed for the second time. Giggey made a motion to approve, which was seconded by Hommel and approved by a unanimous vote.

Thomas noted that the second position at the Lounge was still open. This is the third shift bartender.

Comley noted that in the minutes for the February 16 meeting, the reason for having the Golf Course staff cut the new ballfield was at the request of the staff, so that they would not have equipment spread all over the island.

Roedner was asked to contact Buxton regarding his lot with a garage adjacent to the ballfield about his thoughts on selling the lot to FII.

 

C.              Roedner reported that many requests for slips at either Quail Circle or the Marina had been received, approaching 28. It was agreed that as of April 1, we would order the number of slips necessary to provide spaces to all those on the waiting list who had paid the required deposit for a slip.

It was suggested that the Marina Committee establish a process for electing members, on rotating terms. This was in response to a question as to whether the new waiting list policy had been approved by the entire Marina Committee.

 

6.         Old Business

A.              Staff was authorized to offer the assessed value for Lot 393, DiFrancesco.

B.              Roedner was asked about Lot 1879, which was a purchase from Rudy, and has been closed.

 

7.         New Business

A.              The construction of new slips in the Marina was confirmed by the Board.

B.              A second vendor to place the docks was mentioned to Roedner, What’s Up Docks from Poland, should our existing vendor no longer be interested.

C.              The ferry haul out was brought up, with a thought that FII may be able to do this with the revenue from lot sales, and then write it off over time.

D.              Thomas summarized the status of the Frye’s Leap lease. Roberts suggested language governing the timing of deliveries should be included. Sullivan-Toomey suggested that our insurance agent should review the lease to make sure sufficient insurance has been required. Thomas noted that once the final version of the lease had been worked out, it would be sent for legal and insurance reviews.

 

There being no other business, the Board meeting was adjourned at 3:30 p.m.

 

Respectfully Submitted,

 

Richard Roedner

General Manager