Presented at the Annual General Meeting, March 29, 2017.
President’s Report
I am very pleased to present the 2016 Annual Report for Bella Coola Community Forest Ltd.
Oran Hoppe, Presient
Although it may not have seemed like it here in the valley, 2016 was actually our busiest year ever and our contractors logged over 36,000 m3. 2016 was also noteworthy in that we worked out a contract with Nuxalk Forestry LP to manage their logging at Camp 2 Bay in South Bentinck where over 33,000 m3 were logged. This project generated a lot of local employment and revenue; however, it was a drain on our local capacity and so only 3,544 m3 were logged on the Bella Coola Community Forest. This was not enough to cover our fixed costs, resulting in a net loss of $45,290 for the year. Despite this, the Board strongly feels that the year was a success as the broader community benefited greatly from the economic activity and the employment generated.
The logging that was done on the Bella Coola Community Forest was block NUS 15 in the East Nusatsum. We didn’t finish this block and so that is where we will start in spring 2017.
Other noteworthy events were the refurbishment of the booming ground in front of the dry land sort at Clayton Falls and the purchase of a property in Hagensborg that will serve as the home for the community forest. Currently, the office is housed in the existing trailer home, but the goal is to build a permanent structure that will feature community forest wood and local building talent.
Looking ahead, 2017 looks promising and we expect our crews will be back at work as soon as snow conditions allow. The US housing market continues to improve and the demand for cedar remains strong. However, impending Softwood Lumber Agreement duties and their effect on log prices is cause for some concern. Meanwhile, Asian markets are improving and a low Canadian dollar may offset any duty headwinds.
On behalf of the Directors, thank you for your continued support as we work for economic development in Bella Coola.
Highlights
| Highlight | 2016 | 2015 | 2014 |
|---|---|---|---|
| Employment – md (local) | 2,488 (95%) | 1,725 (88%) | 1,448 (97%) |
| Harvest – m3 | 36,904 | 21,337 | 12,627 |
| Local sales – m3 | 954 | 1,708 | 894 |
| Area harvested – ha | 59.0 | 44.5 | 21.3 |
| Roads built – km | 4.3 | 3.7 | 0.4 |
| Roads maintained – km | 27.7 | 30 | 29 |
| Trees planted | 54,360 | 26,295 | 21,100 |
| Government Fees & tax – $ | $25,959 | $99,410 | $103,717 |
| Contractor Pay – $ (local) | 2.25 mil (85%) | 1.90 mil (71%) | 1.66 mil (80%) |
BCCFL Board of Directors
The Board is very much involved in directing the management of the Community Forest. The 2016/17
Board consisted of Oran Hoppe, President; Troy Gurr, VP; Ron Nygaard Treasurer, Ed Willson, Rod Krimmer, Wayne Bittner and the Bella Coola Resource Society designated Director was Neil Oborne.
Operations
Safety & Environment
For the most part, 2016 was a safe year again on the Community Forest; however, there was one serious injury and incident when a hydraulic log loader caught fire and the operator broke his shin bone when he jumped from the machine. The injured worker was transported quickly to hospital and after several months of recuperation and therapy, the leg is healing well.
Safe Certification was retained in 2016 and there were no significant environmental issues to report.
Operations
Managing ‘in town and out of town’ operations was a logistical challenge in 2017. Crews traveled by boat to Camp 2 Bay everyday which made for long days. Most of the wood at Camp 2 Bay came from a very impressive second growth stand that was originally logged in 1910 era. There are areas there now that have 3 rd generation saplings growing on it.
Next year’s operations will be in Noosgulch and Salloompt. Beyond that, we will be focusing on the area west of Noomst, on the south side of the Bella Coola River towards Firvale and in Nookliklonic valley.
Silviculture
Over 54,000 trees were planted in 2016, which is a record for us. SAMS Outdoor Education class
helped with some of it. The dry spring and summers in previous years have caused higher than usual mortality in our younger plantations. These under-stocked areas were also fill-planted in spring, 2016.
Community
It is clear that we need to communicate and engage the community more regarding forest management and our activities. First step is to launch our website: bccfl.com. Please check it out and provide comments.
Summarized Financial Statement
The following summary is from the year-end financial report prepared by PMT Chartered Accountants.
| Summarized Income and Retained Earnings, Dec 31 | 2016 | 2015 |
|---|---|---|
| Revenue | $2,412,437 | $2,811,437 |
| Direct cost | $2,248,508 | $2,328,557 |
| Gross Profit | $163,929 | $482,880 |
| Gen Expense | $224,123 | $137,911 |
| Income from Ops | ($60,194) | $344,969 |
| Other Income | $8,707 | $14,055 |
| Income Before Tax | ($51,487) | $330,914 |
| Tax (Recovered) | $6,197 | $44,989 |
| Net Income (loss) | ($45,290) | $285,925 |
| Earnings start of year | $258,634 | ($22,766) |
| Net PD/Accrued Dividends | ($41,912) | ($4,525) |
| Retained earnings End of year | $171,432 | $258,634 |
| Summarized Balance Sheet, Dec 31 | 2016 | 2015 |
|---|---|---|
| Current Assets | $1,050,215 | $785,528 |
| Other Assets | $194,199 | $93,314 |
| Assets | $1,244,414 | $878,842 |
| Current Liabilities | $593,297 | $159,718 |
| LT debt & liability | $158,061 | $207,484 |
| Liability | $819,976 | $367,202 |
| Share capital | $253,006 | $253,006 |
| Retained Earnings | $171,432 | $258,634 |
| Shareholder Equity | $424,438 | $511,640 |
| $1,244,414 | $878,842 |
