MINUTES OF THE BIT EXECUTIVE COMMITTEE MEETING
TOWN OF FRYE ISLAND
June 23, 2006
The location of the meeting was the Community Center, Town of Frye Island
The meeting was called to order by Bruce Nisula at 7:02 PM
Those present were as follows:
BIT EXECUTIVE COMMITTEE: Bruce Nisula, Jim
Debbie Anthony, and James Kuiken
OTHER: Wayne Fournier, Town Manager; and Marge and Carl Hommel
WARRANT FOR THE SPECIAL MEETING OF THE BOARD OF ISLAND TRUSTEES (BIT) TO BE HELD JULY 1, 2006
Wayne showed data indicating that the ferry system continues to operate at a deficit. He presented an analysis of the ferry financials to date that indicate that revenues to date are about 20% below those for the comparable period last year. This is the second year in a row that ferry revenues have been declining.
Very substantial cuts have been made this year in personnel and in frequency of operation of the 2nd ferry, and as a result expenses are projected to be about $40,000 less than last year.
Unfortunately, the reduction in revenues has outpaced the reduction in expenses such that a substantial deficit is projected for the year overall, which is unacceptable. Some further action is required.
The next level of cost cutting available to eliminate the projected deficit is to curtail the 2nd ferry altogether. It was agreed that this would in all likelihood be an option unacceptable to the people of Frye Island. Thus, raising ferry revenues in order to bring ferry operations out of its deficit was deemed advisable, so a Special Meeting of the B IT will be called to consider the issue:
Jimmy Kuiken made a motion, and Deb Anthony seconded, that a warrant be submitted to the BIT to institute a surcharge of $2 for Discount Tickets and $4 for Regular Tickets (previously bought tickets not exempt) through to the end of the year. The funds are to be applied to ferry operations. Unanimously approved.
The Special Meeting of the BIT will be held on July 1, 2006, with Bruce Nisula presiding, and Jimmy Kuiken making comment on behalf of the Executive Committee, and Wayne presenting a review of changes made in operations this year to cut costs, and a financial analysis to show how declining revenues have outpaced reduced costs leading to a deficit, which must be addressed. He will emphasize that this is not an issue of increasing reserves for capital expenditures, but rather one of pulling operations firmly into the black.
ISLAND FERRY LANDING HINGE DEFECT IDENTIFIED
The ferry ramp on the Island side was inspected this week, and a defect in the ramp hinge to the south was identified. The engineer has been contacted. Procedural changes to reduce further damage were suggested. Recommendations from the designing engineer are being sought. It is hoped that it will not fail this season, and that conditions will permit repairs to be conducted in the fall.
James O’Connor made a motion to adjourn at 8:50 PM, which was seconded by Deb Anthony – Unanimously approved.
Minutes were unanimously approved at the July 7, 2006 meeting of the BIT Executive Committee.
Bruce C. Nisula