II. ATTENDANCE

Present were Diane Babineau, Dave Decker, Steve Comley, Carl Hommel, Fritz Mueller, Mark Thomas, and Jean Toomey. Dick Giggey (excused), and Tim Tinsman (excused) were absent

III. REAL ESTATE AUCTION

President Thomas reported the Mr. Hirsch has withdrawn his bid for Lot 2026, and General Manager Roedner is proceeding with the sale of the lot to Mr. Sullivan.

IV. FINANCIAL REPORT YTD AND 2002 BUDGET

The financial report was not available. President Thomas requested the Board Members attend a special meeting at 1:30 PM September 15^th.

V. TRANSFER OF THE WATER SYSTEM TO THE TOWN

Hommel MOVED and Decker SECONDED that the FII Board recommend to the Stockholders that FII turn over to the Town the water system, including the intake system, the pump house and pumping system, the pump house lot, the piping to the treatment plant, the water treatment system, the storage tank and the water distribution system., and that the transfer be implemented upon authorization of the transfer by the FII Stockholders and acceptance by the Town, at the October Town Meeting. Motion PASSED unanimously. This recommendation will be included in a proxy statement mailed to the Stockholders for their vote if they do not attend the Stockholders meeting in person.

VI. AUTHORIZATION OF PAST ACTIONS BY THE FII STOCKHOLDERS

Babineau MOVED and Decker SECONDED the Stockholder’s proxy also contain the following motion: “Move that the corporation ratifies and affirms those acts taken on its behalf by the stockholders and directors through this date as if voted herein and now”. Motion PASSED unanimously.

VII. QUORUM

Babineau MOVED and Mueller SECONDED that a raffle be offered to the Stockholders in the proxy statement, such that if proxies or attendees achieve a quorum of Stockholders, three drawings will be made, with prizes of $100, $50 and $25.

VIII. USES OF FII RESERVE FUNDS

A list was made of potential uses of FII reserve funds (see attachment).

IX. REZONING OF RECRETIONAL AREA ADJACENT TO LOT 501

Hommel reported that the Town Planning Board had proposed that the Recreational area adjacent to Lot 501 be rezoned from a Water Orientated Commercial District to a Residential District, and wished to have the approval of the FII Board. Decker MOVED and Babineau SECONDED that the FII Board not recommend that the Planning Board that the land not be rezoned, and asked that Mr. Treacy explain his reasons for requesting the rezoning. Motion PASSED 6-0-1 (Hommel abstained).

X. ADJOURNMENT

It was MOVED and SECONDED that the meeting be adjourned. PASSED unanimously. The meeting was adjourned at 10:30 PM.

POTENTIAL EXPENSES FOR FII REAL ESTATE RESERVE FUND

• Current repairs to ferry

• Repairs to ferry recommended by Blount Marine

• Engineer's report on Dry Dock

• Dry Dock (2002)

• Engineer's report on buildings

• Repair of buildings (2002)

• Handicap ramp to office

• Playground equipment

• Warning system

• Electrical upgrade of pump house

• Upgrades to Community Center (electrical, heating, AC)

• Permanent winter office

• Winter office rent

• Copy machine

• Computers

• Golf Course Equipment

• Grass mower with trailer

• Pay for store ferry costs

• Pay for a portion of office labor

• Road gravel

• Handicap access to pool

• Driveway access to Community Center

• Forgive lease

• Basketball court