Frye Island Incorporated  Ė  Board of Directors Meeting Minutes

Friday August 11, 2006, 7:00 PM, Community Center


 1.     Call Meeting to Order and Take Attendance:

a.      Meeting called to order at 7:00 PM by President Joe Potts. 

b.      Board members present were:  Ed Charrette, Dave Gleeson, Phil Perry and Joe Potts.
Also in attendance was Wayne Fournier, FII General Manager.

c.      The following FII stockholders were also in attendance: Dick Giggey, Carl Hommel, Jim Kuiken,
Bill Stevens Jr., and Bob Sutherland.


 2.     Communications & Petitions from the Public:

a.      Dick Giggey reported that the Beach Committee wants to convert lots 1601/1602 into a public beach; he indicated that there would be no dock or boat moorings off the beach; he indicated that he talked to both abutting property owners and they have no problems with a beach being created; he gave some statistics on beach usage.

b.      Carl Hommel gave the board a handout listing private lots near the proposed beach and a handout proposing the selling of lots 2027/2028/2029 as two larger lots.

c.      Jim Kuiken indicated that Nancy Donio had talked to him about making 1601/1602 a beach.

d.      Bob Sutherland raised questions concerning the release of the May 2006 FII survey.


 3.     Approval of Minutes:

a.      The Board approved the minutes of the July 9th Board Meeting with one correction (i.e. changing the $55,000 entry to $65,000 in paragraph 6).


 4.     Discussion Items:

a.      In the fall of 2005 the FII Board had identified a need to have a FII Stockholder proxy vote on the Sale/Buy-Back concept. In the spring of 2006 a tentative date of August 2006 was set as the time for the proxy vote. Based on the feedback from the FII stockholders at their July 1, 2006 meeting, the plan for a proxy vote has been indefinitely postponed.

b.      There was a discussion of the possible transfer of FII lots 1601/1602 to the Town for use as a public beach. Joe Potts reported that feedback he received was that the Beach Committee had concluded there was no need for an additional public beach at this time, but they would like to maintain the option of using lots 1601/1602 as a beach in the long term.  It was concluded that there are no FII plans for lots 1601/1602 in the short term (four year planning cycle), and that if the FII Board wanted to take action on any potentially buildable waterfront lot it would only do so with the approval of the FII stockholders.

A motion was made by Ed Charrette and seconded by Phil Perry that members from the FII Board and from the Beach Committee walk lots 1601/1602 on Friday August 18th at 4 PM to gain a common understanding of the condition of the lots. Motion carried unanimously.


 5.     Old Business:

a.      A draft of the FII 2007 budget was given to the Board at the July 9th meeting for their review.  A motion was made by Ed Charrette and seconded by Dave Gleeson to approve the draft budget and present it to the FII stockholders at their October 2006 meeting for their approval. Motion carried unanimously.

b.      The Board discussed the possible sale of lot 1768 to William Stevens, the adjacent property owner. The appraisal report done for FII indicated that the lot had a market value of $66,000 and according to the Real Estate Policy the lot could be sold as a privacy lot for $42,600 (i.e. a 35% discount). The appraisal ignored the fact that Mr. Stevensí leach field was located on lot 1768 in accord with a deeded easement that was given by authority of Leisure Living.  For that reason, the Board felt that it would be rational to give Mr. Stevens an additional discount. A motion was made by Ed Charrette and seconded by Phil Perry to make a counter offer to Mr. Stevens of $21,450 for lot 1768 as a privacy or merged lot (i.e. a 50% discount) and if a purchase did not result then Mr. Stevens would need to relocate his driveway off of FII lot 1768. Motion carried unanimously.

c.      As a result of discussion at the July 9th Board meeting, Joe Potts was directed to prepare an introductory narrative to accompany the report of the results of the 2006 FII Stockholder Survey. A draft of that narrative was distributed to Board members by email on July 12th.  On August 10th a second version of a draft narrative was distributed to the Board via email by Dave Gleeson. As a handout for this meeting Joe Potts prepared a composite introductory narrative that combined both versions without change; the July 12th draft was identified as the Majority Report and the August 10th draft was identified as the Minority Report in the composite introductory narrative. A motion was made by Joe Potts and seconded by Phil Perry that composite introductory narrative and the report giving the results of survey be placed on the FI website where all information that might identify how an individual responded would be removed from the report. Motion carried unanimously. Phil will be handling the change to the survey report to remove an individualís identity. When the information gets on the website, an article will be placed in the FINS to make people aware of the information on the website.


 6.     New Business:

a.      A discussion ensued on appointing a person to the position of FII Clerk. For the past several years Carl Hommel has been the FII Clerk. Upon reviewing the FII By-Laws it was concluded that Wayne Fournier was doing the majority of the work assigned to the Clerk. Carl commented that he felt Wayne should be the Clerk. A motion was made by Joe Potts and seconded by Phil Perry to appoint Wayne Fournier as Clerk of FII. Motion carried unanimously.

b.      A discussion ensued on moving some of FIIís cash into an account that earned higher interest. A motion was made by Phil Perry and seconded by Ed Charrette that $25,000 be moved into a one-year CD at Evergreen Credit Union. Motion carried unanimously.


 7.     Executive Session: The Board discussed confidential matters for 25 minutes.


 8.     Next Meeting Dates: Board Meetings on 9/6/2006 & 6/13/2007; stockholders meeting on 10/7/2006


 9.     Adjourn Meeting: Meeting adjourned at 9:34 PM



Respectively Submitted,

Joseph Potts