COUNCIL CORRESPONDENCE As of March 28, 2014

COUNCIL CORRESPONDENCE as of March 28, 2014

CORRESPONDENCE RECEIVED

1. Email from Laurie Parkinson dated March 21 March 21, 2014 regarding proposed LNG plant at Woodfibre Pg 2 - 6

2. Letter from the Auditor General for Local March 24, 2014 Government dated March 21 regarding Annual Pg 7 - 8 Service Plan

3. Email from Donovan Whistler dated March 25 March 25, 2014 regarding 6217 SC Highway & Building Pg 9 - 10 Department concern

4. Letter from Brian Blackwell dated March 26 March 26, 2014 regarding past resolution on bollards on Baillie Pg 11 Road

5. Letter from West Sechelt Community March 26, 2014 Association dated March 26 regarding Jasper Pg 12 - 13 Road Infrastructure Improvements

6. Letter from Rural Coordination Centre of BC March 27, 2014 dated March 27 regarding Rural Emergency Pg 14 - 18 Continuum of Care Conference May 30-31, 2014

7. Letter from Sunshine Coast Community Forest March 28, 2014 dated March 24 regarding Sechelt Community Pg 19 - 51 Projects Inc. Annual General Meeting

From: Laurie Parkinson [mailto:[email protected]] Sent: March-21-14 12:01 PM To: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; Information Request Subject: concern re proposed LNG plant at Woodfibre

Dear Mayor,

I am a North Vancouver resident, a professional biologist, and land owner on Bowyer Island, in beautiful Howe Sound. I am a frequent user of recreational facilities in Howe Sound, including parks, marinas, and restaurants. I look forward to an unfettered wilderness view of Howe Sound from the Squamish Gondola.

As you know, the Sound was polluted by Woodfibre and Port Mellon pulp mills and Brittania mine until recent very successful clean-up efforts. We are all so fortunate re the return of grey whales (first time in a century!), orcas, dolphins, and their food herring. Now, none of us is very surprised to see a pod of dolphins or orcas in Howe Sound reported on the evening news – as you know orcas were reported near Squamish only days ago. For the first time in years, we have commercial salmon and prawn fisheries in Howe Sound! In addition, the clean air in Howe Sound is wonderful.

I realize that Squamish needs more businesses/sources of jobs. However, I have grave concerns re the proposed LNG plant for the following reasons (and I apologize for this email being long!):

-few long-term local jobs would come from this proposed plant (plant to be built in Asia, barged here)

-the LNG company is based in Singapore, the LNG would be sold in Asia, so profits would go offshore

-see the attached list of 30 recreational and service industries likely to be negatively affected by a LNG terminal and LNG carriers in Howe Sound

-LNG plant would probably be a major source of air pollution from burning natural gas (due to supply challenges and electricity prices), we would get smog in the Sound like in the Fraser Valley, irritating to all users of the Sound

-turbines (similar to jet engines) are used to liquefy natural gas; likely a major source of noise pollution above (irritating for all users of the Sound) and below water, scaring away herring and marine mammals, which are all sound sensitive.

-huge LNG carrying ships (see http://futureofhowesound.org) will have half mile zones around them excluding all other boats (see attached LNG carrier route map)

-all boats will have to wait for LNG carriers to pass, and there will be more LNG carriers in the summer, inconvenient/irritating.....wonder how BC Ferries and tugboats will deal with that

-not clear if there will be military escorts travelling with LNG carriers (as in the US), disconcerting to recreational boaters if their boats are boarded for security inspections (because LNG carriers attract terrorists due to huge explosive power – each equivalent to 70 Hiroshima A-bombs)

-could be dangerous for boaters/cabin dwellers/Squamish residents/drivers on the Sea to Sky Highway/West Vancouver/Bowen: If a storage tank at the Woodfibre LNG terminal, or in a LNG carrier travelling out of Howe Sound was damaged, it would release (very cold) liquid LNG. The LNG would flow over the water surface and suffocate and freeze anything in its path. When the right concentration of warming LNG/natural gas met a spark it would ignite, producing a massive fire. A spark could come from the spark plug in a boat engine, a propane stove in a local cabin, or from a spark plug in someone’s car in Squamish/along the Sea to Sky Highway/near the water in Horseshoe Bay, West Vancouver, or eastern Bowen, depending on where the accident happened/where the wind blew the flammable natural gas. The effects of the fire could fill much of Howe Sound (a confined area for a major explosion), depending on where the accident happened. The fire would probably burn for a long time, producing clouds of black smoke (like the train wreck at Lac Megantic).

-a flare at the LNG plant would burn all the time

-international LNG shipping regulations specifically advise against having an LNG plant in a narrow waterway such as Howe Sound (www.lngtss.org/standards.html)

-most of the natural gas to be liquefied comes from fracking by U.S. companies

-BC’s new royalty rules will tax LNG companies only 1.5% of net profits for the first 7 years until they have all their construction costs paid (and only 7% after that). This could be strung out forever by creative bookkeeping (little $ to BC)

-The worldwide demand for LNG is very uncertain. Once a pipeline is put in, it could be used to transport oil in the future – that sort of thing is being done these days – imagine oil tankers and oil spills in Howe Sound!

Why would we give up so much, for so little financial return? Howe Sound is recovering, let’s not screw it up again! It would affect so many people. 3

Why not grow the recreation industry instead? I am sure Squamish mayor and councillors have tried.

From a quick read on the web, I gather that the Squamish harbour needs dredging so bigger boats/ships (M.V. Brittania connection to the Royal Hudson, cruise ships, etc) can moor, and that either the provincial or federal government has promised but not delivered re dredging. This is quite a dilemma for you; I would like to help get the word re this out to more people. My friends and I are happy to email whoever you like re this dredging. I will email John Weston and Jordan Sturdy re this in the next week, and cc Squamish Mayor Kirkham.

There could be a land locked salmon farm at Woodfibre, and school kids from Squamish could visit it, as well as kids from present day kids camps around the Sound. With few landlocked salmon farms around, it would be a great eco-tourist attractant.

Thank you very much for your time,

Laurie Parkinson BSc, MSc from UBC

4 Probable air and noise pollution from LNG plant, and exhaust from LNG carriers would seriously impact local recreational and service businesses in Howe Sound:

1. restaurants, some with ocean view 2. recreational boaters (annual moorages) 3. boat rentals by the day 4. sport fishing – private and tours 5. whale watching tours 6. tourists on ferries, who also stay in BC hotels 7. charter boats to see the Sound 8. kayakers 9. recreational divers 10. water taxis 11. hikers 12. kids summer camps 13. bird watchers who come to see huge numbers of eagles at Brackendale, and eat at local restaurants 14. bus industry – fewer tourists taking the bus along the Sound, fewer drivers employed? 15. tourists who camp in parks along the Sound, and send pictures to friends 16. tourists driving along Sea to Sky Highway to Whistler 17. Royal Hudson clients 18. rock climbers up the Squamish Chief, who probably eat at Squamish restaurants 19. hang gliders 20. Heli-jet helicopter flights taking tourists to Whistler 21. Heli-jet helicopter aerial tours of Howe Sound 22. Harbour Air float plane: fishing and sightseeing charters in Howe Sound 23. cruise ships coming to see the Sound, and its dolphins and whales 24. film industry 25. customers of the Squamish Gondola 26. stores that sell food for the above, in Howe Sound and in Vancouver 27. stores that sell equipment for the above (i.e. dive shops, hiking/kayaking/fishing/hang gliding equipment stores in both Howe Sound and Vancouver) 28. government gets money from selling fishing licences, etc, stores make money selling them 29. trucking industry – delivers food to stores, restaurants, marinas, gas stations along Howe Sound - as well as delivering boat parts and gas to marinas - less trucking jobs? 30. mechanics who sell parts for and do service on float planes, helicopters, boats, the Royal Hudson, and (will service) the Squamish gondola – fewer jobs for mechanics?

I’m sure there’s way more.

5 Ferry Routes

Proposed LNG Carrier Route To Woodfibre Extent of 0.5 Nautical Mile Exclusion Zones Around Carriers

6 AUDITORGENERALFOR LOCALGOVERNMENT BRITIsH COLUMBIA ACCESSIBILIP(INDEPENDENCETRANSPARENCYPERFORMANCE

March 21, 2014 Ref.: 14-49

To: Mayors and Councillors 1EfJ..,.dI\71ED Chairs and Directors of Regional District Boards Chairs and Directors of Greater Boards MAR24 2014 !LE3c- c DISTRICTOF SECHELT Greetings to All:

Re: Annual Service Plan for 2014/15 - 2016/17

I am pleased to advise you that the Auditor General for Local Government annual service plan for the period 2014/15 - 2016/17 will be released on our website www.aglg.ca at the end of day Monday, March 24.

The Auditor General for Local Government Act requires that an annual service plan be published prior to commencing performance audits during the next fiscal year.

The annual service plan informs local governments and citizens of our goals, strategic objectives and the actions we will undertake over the next three years. Publishing our plans serves to make us accountable for the tax dollars we spend.

This plan builds on our previous plans and the year of hard work during which we launched 18 performance audits of local governments on three topics. We continue to work toward the same four goals and six audit themes we identified last year through extensive consultations.

Over the past year, our performance audit work has enabled me to visit 18 local governments in communities across the province. I very much appreciate the warm welcome I received and the productive exchange of ideas and views. This has added significantly to our understanding of the diverse circumstances of British Columbia’s local governments and has positioned us well for our future performance audit work.

Looking ahead, we will continue to emphasize strong, productive and respectful relationships with local governments. We will continue to provide accessible information about our audits such as our protocols and key decision points for local governments participating in a performance audit.

201 — 10470l52’’ Street Phone: 604-930-7100 www.aglg.ca Surrey,BC V3R 0Y3 Fax: 604-930-7128 LocalGovernmentsRe AnnualServicePlan Page 2

I want to thank the local governments we have worked with and the hundreds of British Columbians who have taken the time to let us know their concerns and priorities. This information is valuable as we strive to play a constructive role in assisting local governments to carry out their operations with economy, efficiency and effectiveness.

I continue to be impressed with the level of commitment, passion and dedication local governments demonstrate in serving their communities and furthering the public interest.

I hope you will take the opportunity to read our service plan and share your feedback and comments with us. Please send your comments to [email protected] or call the office at 604-930-7100.

Best regards,

Basia Ruta, CPA, CA Auditor General for Local Government pc: Chief Administrative Officers

8 From: Donovan Whistler [mailto:[email protected] Sent: March-25-14 7:08 PM To: Mayor John Henderson Cc: ‘anita@ Subject: 6217 Sunshine Coast Hwy, Sechelt — Concerns regarding District of Sechlet Building Department

Hello John,

We’ve met a couple of times... and I’mthe fellow with the new yellow electric SmartCar. I’ve been spotted a number of times now making use of the public EVcharging station in front of the

District of Sechelt offices something I might have to be doing for some time.

I will attempt to be brief, as I do not take this action on communicating with you lightly given the circumstances.

I My situation is that am in the process of building a new residence (above address), for which I am encountering serious problems with respect to our dealings with the District of Sechelt Building Department. More specifically, this involves one particular building inspector. It is obvious over the past week that the matter has been devolving. And absolutely clear as of today, that the situation is completely out of hand.

Briefly, this particular official has raised some specific concerns related to the building envelope of our garage / coach house structure. These “concerns” have been in my view adequately addressed by my consulting building envelope engineer, to which the DOSbuilding inspector has responded with continued rejection. Not only that, this official has just informed me at the end today that:

1. He has taken it upon himself to consult with the Professional Engineers Association of BCand on the basis of this communication (no details provided); 2. Require a peer review analysis of his concerns by another building envelope engineering firm; 3. Ordered a halt to further construction of the garage / coach house 4. Indicated that the outcome of this will impact the design for the house (likely meaning that all construction might need to stop)

I might observe, that it ishighly unusual for a residential homeowner! builders like myself to retain the services of a building envelope engineer. And certainly this was not required as part of the DOSprocess for obtaining building permits.

In sum, I’d like to request a meeting with yourself and / or an appropriate management level person with DOS.I believe that this particular individual is acting in a manner that is arbitrary and extremely unprofessional. As does everyone that is involved with my project. Simply, my perspective is that it is not acceptable to have my project disrupted in this fashion. Nor is it acceptable to force costs for such “peer reviews” on to myself.

Please understand that I also view this as a crisis matter, given the stop work order and uncertainty that has been imposed. 9 Thanks kindly for your attention.

Yours sincerely,

Donovan (and Anita) Whistler 2786 Westlake Drive Coquitlam, BC V3C 5K1 Phone: 604-942-4538 Cell: 604-612-3284

10 Brian Blackwell March th26 2014 et0ad RECEIVED VON3A7 604-885-9989 MAR262014 2- IZ? — 33 DISTRICTOF SECHELT Dear Mr Buchhorn,

I am requesting a review of the above resolution of July 16 2008 Regular Council meeting. It concerns a Traffic Study by Oracle Properties and the result of bollards installed on BaillieRoad in West Sechelt.

I recently moved from one house BaillieRoad to another house on Bailieand discovered we would not get the snow plough coverage in front of the new house because of the bollards which block the road. Icalled Public Works and they were removed to allow the plough through but they have now been put back. This has prompted me to question why they are there at all and I have not found a convincing or logical reason for them to be blocking the road.

When it snowed the bollards where down for three weeks to a month and as our house looks out on to them so we can see the daily volume of traffic going by and Iwould say it could not be more than

40 vehicles maximum and I know as a twenty year resident of Bailie Road that the projected figure of 900 vehicles is totally ridiculous. So why are they there?

As a forty year resident of West Sechelt I have driven in, through and around this neighbourhood so Ican’t understand the idea that so many vehicles would want to use BaillieRoad as a short cut down to the highway. Any resident West of Nickerson and Norwest Bay Roads would not come over to Baillie just to get back on to Norwest Bayat the bottom of the hill; it is not a short cut. Ido not know of any other place in the District of Sechelt where this kind of barrier exists

I have heard from different sources that an influential resident on Oracle Road (no longer here) was the driving force and instrumental in the motion to have a “TrafficCalming” solution to his neighbourhood, a perceived problem but not substantiated by fact.

Ithink Ward Consulting Group seriously over estimated the number of homes and the resulting extra traffic above Baillie Road; this should not mean we have to live with the road being blocked?

I look forward to your reply.

Yours sincer ly

Brian Blackwell 11 Bay Jasper In eiet must residents stretch unpleasant loads. precipitous take with Bay Mills As system high draw over elpandresidential well-planned it and these The liveability Streetlights, Dear

Several Re: P.O. District Director Mr. Sechelt, March easier addition, a east-west Road. Ray Road last up nrsrcueImprovements Infrastructure very that traffic

developing Box Sir: your upgrades. Road, All identified of 26, and a major of oget to few B.C. Parfitt of past great road constricted

of 129 and attention of Sechelt walk 2014 drop other areas. Development when as sidewalks, these months our couple as VON improvements Mills around could use far deal WSCA’s for community, off well

it West destinations community. we north factors the as of pedestrians 3A0 to on Road. readily have of canvassed shoulders

a Communit as P.O. on road the one high the sewers years as a areas foot mission Services make reduction road been particularly Samron That other. Box in priority be of to we along Thank and the www.westsechelt.net helps and space. connected a and our and course, 792, this portion our busy There now dark. — is by road Road Jasper neighbourhood is Norwest in neighbourhood a meet the 250 for you Sechelt. vehicle hazard Additionally, flanked have time the troublesome there is enhancement domestic of improvements metre and for that no to unsafe Road,

Jasper Sechelt good for making the in Bay for 12 street is west B.C. goal.

by Association stretch infrastructure a always existing vehicles, West pedestrian safe a soft is sewer Road to VON deep lighting With have the the area

for DISTRiCT the McCourt of road and of Sechelt more are membership, main road for installation. 3A0 our ditch resources — enhanced roadway sewer the particularly pleasant Jasper important shoulders all and corridors neighbourhood, has improvements to - pedestrian

installation MAR on of Road. do. installed parked high the one Road

a OF

available 26 things environment WSCA - dangerous A housing the for for The side running vehicle

in sewer SEC

between 2O vehicles access pedestrians along the residents the in considerably. road 2 _c and would West

we to HELT safety winter and west along traffic north-south a Norwest schedule and is to have regularly Norwest within making narrow Sechelt. the like along of and that when in seen bus to Page 2

With that in mind, and because of safety concerns, WSCA asks the District planning staff to review the schedule and priorities for sidewalks, street lighting and sewers as soon as practicable and consider making the appropriate improvements to the length of roadway in question. Thank you.

Yours truly,

Candice Sayre, President West Sechelt Community Association cc: Victor Mema, Chief Financial Officer Mayor Henderson & Council

PC Box 792, Sechelt, BC VON3A0 www.westsechelt.net

From: Baysan, Michelle (UBC CPD) [mailto:[email protected]] Sent: March-27-14 1:58 PM Subject: Rural Emergency Continuum of Care Conference ~ May 30-31, 2014

March 27, 2014

Greetings, Mayors and Council Members!

Re: Rural Emergency Continuum of Care Conference ~ May 30-31, 2014

Physician recruitment and rural health care issues are important to all our communities.

The Rural Coordination Centre of BC is an organization dedicated to rural BC and is a strong advocate of its health care needs. Our motto is “Enhancing Rural Health through Education”. The Rural Emergency Continuum of Care held its first conference in Kelowna of June 2010. This is a multidisciplinary conference, focused on meeting the unique needs of physicians, nurses, first responders, and other health care providers in rural communities and with the most recent conference had over 200 attendees.

We are writing to invite you for the opportunity to be an Exhibitor and showcase your community at our latest rural conference in Penticton. This is a wonderful opportunity for recruitment. There will be Rural Residents (doctors in the last stages of their training), as well as Medical Students, in attendance. They will be attending this conference because they are interested in pursuing a career in Family Medicine, with a particular interest in rural medicine.

The conference will be held at the Penticton Trade and Convention Centre on Friday, May 30th and Saturday, May 31st.

We invite you to share this email. Rural healthcare requires rural communities to be part of the discussion, not just represented by larger bodies. For a full view of the entirety of the conference, a brochure/agenda is available HERE.

If your community would like to send a delegate and sponsor a booth, please complete the attached sponsorship form and return to Michelle Baysan at [email protected] or fax to 604 875-5078.

We hope that you will be able to join us on May 30th and 31st!

Dr. Granger Avery Dr. Mary Johnston Rural Coordination Centre of BC Conference Chair

Sent by: ______Michelle Baysan, BA UBC CPD Conference Coordinator

Division of Continuing Professional Development UBC Faculty of Medicine 855 West 10th Ave, Vancouver BC V5Z 1L7

T 604.875.4111 x21483 F 604.875.5078 E [email protected]

15 Sponsorship Package 2014 RECC RECC

RURAL EMERGENCY CONTINUUM OF CARE CONFERENCE MAY 30 + 31, 2014 PENTICTON TRADE & CONVENTION CENTRE

The Rural Coordination Centre of BC presents the “Rural Emergency Continuum of Care Conference” (RECC) on May 30-31, 2014. The conference will provide an accessible, accredited, and multidisciplinary professional education for rural physicians, nurses, first responders and paramedics.

We, the organizing committee, would like to invite you to participate as a sponsor at our conference targeted at a multidisciplinary audience. We have worked hard to put together an interesting program that should particularly address the unique needs of rurally based BC healthcare providers. We feel that your presence would support this important initiative and provide a new opportunity to reach out to this concentrated audience of rural-based emergency health care providers.

Please note that we are not seeking any pharmaceutical support and only expect organizations such as yourselves and equipment companies to be present. To provide flexibility, we have broken down sponsorship into several tiers:

Gold Silver Bronze Sponsorship Opportunities $5,000 $2,500 $1,000

Complimentary exhibit staff registrations 4 2 2

Written acknowledgement of sponsorship in syllabus X X X and delegate kits

One (1) trade table First choice Second choice Assigned

Verbal acknowledgement as title sponsor during X X — welcoming remarks

Please note that 5% GST is applicable on the exhibit booth portion ($1000 x 5%) of the support above. 16 (Gold = $5,050 Silver = $2,550 Bronze = $1,050) RURAL EMERGENCY CONTINUUM OF CARE CONFERENCE MAY 30 + 31, 2014 PENTICTON TRADE & CONVENTION CENTRE

MEAL SPONSORSHIP If your organization would prefer to be recognized as a sponsor for a meal instead of the above options please see below for sponsorship costs.

Price to sponsor a meal: In return for your support you will receive: Breakfast $7,500  You can exhibit on all days of the conference Break $5,000  Colour signage that indicates that the meal was sponsored by your organization Lunch $9,000  All buffet items will have tags listing the food item – your logo will be placed on all tags  An announcement at the beginning of the day during the opening remarks indicating your support of the meal

As we have a limited number of display tables available, we would appreciate hearing from you at your earliest opportunity. If you have any questions regarding the program content or organization please feel free to contact:

Michelle Baysan at UBC CPD [email protected] Tel. 604-875-4111 ext.21483 www.ubccpd.ca

RECC IS SPONSORED BY:

Yours truly, Dr. Granger Avery, Executive Director, RCCbc Dr. Mary Johnston, Conference Chair

Sent on behalf of Drs. Avery and Johnston by:

Michelle Baysan, Conference Associate Division of Continuing Professional Development (CPD) Faculty of Medicine, UBC 855 West 10th Ave Vancouver, BC, V5Z 1L7 WITH THE SUPPORT OF: Phone: 1-604-875-4111 ext. 21483 Fax: 1-604-875-5078 Email: [email protected]

17 RECC 2014 EXHIBITOR / SPONSORSHIP FORM

Company: ______Contact: ______

Email: ______tel #______fax #______

Address: ______Prov/State: ______Postal Code: ______

We understand by remitting this agreement to the University of British Columbia, Division of Continuing Professional Development that we are contractually obligated to provide payment prior to the conference dates. By signing this agreement we are responsible for the amount of our selected support (indicated below). We understand that we cannot forfeit or reduce our support once this agreement is signed.

X ______Name: ______Date______Signature

CHECK 

 GOLD SPONSOR $5,000.00 + 50.00 = $5,050.00 ($50.00 is GST)  SILVER SPONSOR $2,500.00 + 50.00 = $2,550.00 ($50.00 is GST)  BRONZE SPONSOR $1,000.00 + 50.00 = $1,050.00 ($50.00 is GST)

 Additional Exhibit Staff $300 each $300 x _____ = (limit 2 additional staff per company) $______TOTAL

Names of the Exhibit Staff attending the conference:

1. ______2. ______

3. ______4. ______

Questions? Michelle Baysan at UBC CPD [email protected] Tel. 604-875-4111 ext.21483 www.ubccpd.ca

Please mail completed form with payment to: Cheques can be made payable to “UBC CPD”

UBC CPD, Michelle Baysan UBC GST # 108161779RT 855 West 10th Ave, Vancouver, BC V5Z 1L7 FAX: (604) 875-5078 18 TEL: (604) 875-4111 ext 21483 SUNSHINE COAST COMMUNITY FOREST operated by Sechelt Community Projects Inc.

March 24, 2014 RECEIVED

His Worship Mayor Henderson and Council MAR28 2014 District of Sechelt ci 7 -c - DISTRICT Sechell,B.C. VON3A0 OFSECHELT

To Whom It May Concern:

Re: Sechelt Community Projects Inc. Annual General Meeting

Please accept this letter as notice that the Annual General Meeting of the Shareholder for Sechelt Community Projects Inc. (the “Corporation”) is scheduled to take place on Monday, April 14, 2014 at 7:00 pm at the Seaside Centre, 5790 Teredo Street, Sechelt. The AGM will be open to the public.

In preparation for the meeting please find enclosed the following documentation:

• Meeting agenda, • Audited Consolidated Financial Statements to December 2013, • Copy of Minutes of 2013 AGM, • Report of potential directorship recommendations, and • Compiled list of resolutions to be considered at the meeting.

We ask that a resolution be considered by Council for the purposes of conducting the business of the Annual General Meeting as follows:

That the District of Sechelt, being the sole shareholder of Sechelt Community Projects Inc., authorize representatives of the shareholder to act on behalf of the shareholder at the Annual General Meeting for the purposes of:

a) receiving and accepting the minutes of the 2013 AGM b) receiving and accepting the audited consolidated financial statements for the year ended December31, 2013, c) appointing an auditor for the ensuing fiscal year, d) appointing directors to the board, e) receiving a report on the operations of the corporation, and f) transacting any such further business as may properly come before the meeting.

19 P.O. Box 215, Unit C — 5588 Inlet Avenue, Sechelt, BC VON3A0 Phone: 604-885-7809 E-Mail: [email protected] www.sccf.ca Prior to the meeting date please provide the names of those who will attend on behalf of the shareholder. Should you have any questions or wish to discuss this further please do not hesitate to contact me.

Yours respectfully, SECHELT COMMUNITY PROJECTS INC. I Linda Harris Administrator

End.

20 SUNSHINE COAST COMMUNITY FOREST

ANNUAL GENERAL MEETING OF SUNSHINE COAST COMMUNITY FOREST operated by Sechelt Community Projects Inc.

Monday, April 14, 2014 at 7:00 p.m.

Seaside Centre 5790 Teredo Street, Sechelt, B.C.

AGENDA

1. Welcome

2. Accept the minutes of the 2013 Annual General Meeting

3. Review and accept the Consolidated Audited Financial Statements for the year ended December 31, 2013

4. Appointment of Auditor for ensuing year

5. Election of Directors

6. Report of Operations of the Corporation for 2013

7. Guest Speaker - Peter Moonen

8. SCCF Legacy Fund - Glen Bonderud

9. Adjournment

Open session for questions and comments from the Public follows immediately after the Annual General Meeting.

21 Audited MOTION: Corporation provided UPON questions Richard the Glen The In The of REGRETS: ALSO PRESENT: the accordance outgoing agenda meeting Other: Management: Directors: Bonderud, meeting. PRESENT: MOTION Consolidated Wilson, an from be was overview board was with the and adopted. the called Partner 6, TEREDO OF MINUTES audience. are for DULY the Chair 2013 Directors Members Richard Linda THE Tom Dave Mayor Stan Glen hereby its of Financial Articles to contributions the SECHELT of order of

AT C Anderson, Pinfold Bonderud, MADE Lasser, SHAREHOLDER Harris, STREET, the John The 2012 accepted. Wilson, OF 7:00 - of of FINANCIAL at Board Elise OPENING Statements the Henderson, Coast 7:00 Incorporation, THE Operations Administrator Consolidated PM AND (the COMMUNITY Tim Public Chair Rudland, The in P.M. SECHELT, of AT 2012. Group, ANNUAL “Corporation”) Directors, Anderson, Coast SECONDED - THE STATEMENTS for Board STATEMENTS Manager Councillor HELD Peter Group Glen 22 Chartered the Financial & SEASIDE BC. of Recording welcomed Dale GENERAL Moonen, year PROJECTS Bonderud Directors ON Doug Eichar, IT ended Statements. MONDAY, Accountants, CENTRE, WAS Cam Secretary all Hockley assumed Tony December attendees MEETING

INC. C Forrester RESOLVED Greenfield, MAY Richard 5790 the was and 1 2012 31, position introduced acknowledged responded THAT of of Chair and the the to DISTRICT There Report Dave UPON MOTION: in The cheque year: following UPON MOTION: the LLP UPON MOTION: 2012. 2013 Shareholder Chartered Lasser, being on Glen Tim for Stan MOTION MOTION MOTION fmancial Operations persons $25,890 no OF Anderson Anderson Bonderud Operations further Accountants SECHELT was be year. DULY and DULY DULY and be presented business, a and Manager one-time

are ( MADE MADE MADE is hereby be hereby APPOINTMENT the ELECTION REPORT and with presented extraordinary AND meeting elected are Tony Dale Cam AND AND two acknowledged. PRESENTATION TERMINATION hereby SECONDED Forrester Eichar dividend Greenfield ON SECONDED to SECONDED an terminated OF -2- act overview OPERATIONS appointed dividend DIRECTORS OF as 23 cheques. Directors AUDITOR IT at of cheque 7:40 as WAS IT IT the the The of WAS WAS p.m. operational the RESOLVED auditor for Elise Tim Peter regular

Corporation C $200,000. RESOLVED RESOLVED Pinfold Rudland Moonen for activities return the THAT Corporation for on occurring the THAT THAT investment MacKay, ensuing the the for Sechelt Community Projects Inc. (Expressed in Canadian dollars)

Consolidated Financial Statements

December 31, 2013

24 Sechelt Community Projects Inc. (Expressed in Canadian dollars)

Consolidated Financial Statements

December 31, 2013

Page

Independent Auditor’sReport 2

Consolidated Statements of Comprehensive Income 3

Consolidated Statement of Changes in Equity 4

Consolidated Statements of Financial Position 5

Consolidated Statements of Cash Flows 6

Notes to the Consolidated Financial Statements 7 -20

1 Crowe MacKay. Crowe Mackay LLP Member Crowe Hoiwath International 1100, 1177 West Hastings Street Vancouver, BC V6E4T5 +1.604.687.4511 Tel +1.604.687.5805 Fax +1.800.351.0426 TollFree www.crowemackay.ca

Independent Auditor’s Report To the Shareholder of Sechelt Community Projects Inc.

We have audited the accompanying consolidated financial statements of Sechelt Community Projects Inc. and its subsidiaries, which comprise the consolidated statements of financial position as at December 31, 2013 and December 31, 2012, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’sResponsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial statements present fairly,in all material respects, the financial position of Sechelt Community Projects Inc. and its subsidiaries as at December 31, 2013 and December 31, 2012 and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards. c___ /.L4y p Chartered Accountants Vancouver, British Columbia March 11,2014

26 Average Total Earnings Income Income Expenses Interest Gross Cost Revenue Consolidated For (Expressed Sechelt The Travel Timber Telephone Office Amortization Rent Management Legal Advertising Insurance Forestry Consulting Community Board Bank Amortization Silviculture Logging the income accompanying of margin taxes before year sales weighted and charges and and per and tax Community projects in other accounting share ended and miscellaneous and committee fees (recovervl and engagement Statements_of (48.1%, income Canadian and and comprehensive communications number communications income notes administration December interest 2012 taxes (note dollars) Projects are of 36.1%) Comprehensive common an 13) 31, integral income Inc. shares part for of the Income these year 27 consolidated financial $ $ $2,134,536 statements 1,039,017 1,106,976 1,027,560 1,027,720 660,674 660,858 378,343 190,588 22,081 59,227 39,504 11,232 18,757 17,260 11,457 14,469 66,657 12,599 7,400 3,862 38.29 6,663 1,228 1,000 1,910 2013 (1841 - 422 $ $ $1,590,272 1,016,592 226,451 226,321 584,772 358,321 191,487 573,680 940,090 44,988 44,493 64,584 11,092 11,159 17,812 12,456 17,260 11,918 7,400 2,343 8,680 8,807 3,542 13.11 1,960 1,252 1,169 2012 773 130 3 As Dividend As Comprehensive Dividends Comprehensive Dividends AsatDecember3l,2011 Consolidated Sechelt (Expressed The for for at at December the December the accompanying per year year Community share in Statement Canadian 31, 31, income income 2013 for 2012 notes 2013 dollars) Projects of are is Changsin $13.09 an 17,260 Shares 17,260 17,260 integral - - - - Inc. (2012 Equity part Share $ - $ $1.50) of 172,600 172,600 17600 these capital - - - - consolidated 28 $ $ Contributed 49,770 surplus 49,770 49,770 - - - - financial $ $ statements 1,023,187 (225,890) Retained Earnings 660,858 226,321 588,219 387,788 (25,890) $ $ 1,245,557 (225,890) 660,858 226,321 810,589 610,158 (25,890) Total 4 Sechelt Community Projects Inc. (Expressed in Canadian dollars)

Consolidated Statements of Financial Position

December31, 2013 2012 Assets

Current Cash $1,147,375 $ 476,862 Accounts receivable 973 - Due from broker - 283,852 GST recoverable 16,473 4,882 Income taxes receivable 184 - Inventory (note 4) 155,120 16,741 Work-in-process - 37,725 Prepaid operational costs (note 5) 192,641 150,059

1,512,766 970,121

Property and equipment (note 6) 214,493 228,676

$ 1,727,259 $ 1,198,797 Liabilities

Current Accounts payable and accrued liabilities $ 149,414 $ 117,394 Accrued silviculturalcosts (note 7) 231,247 205,483 Accrued road deactivation costs (note 8) 72,874 39,311 Due to broker 2,277 - Income taxes payable - 130 Dividends payable (note 13) 25,890 25,890

481,702 388,208 Shareholder’s equity

Share capital (note 9) 172,600 172,600 Contributed surplus (note 10) 49,770 49,770 Retained earnings 1,023,187 588,219

1,245,557 810,589

$ 1,727,259 $ 1,198,797

Approved and authorized by the Board of Directors on March 11, 2014, signed on behalf of the Board:

Director . Director 29

The accompanying notes are an integral part of these consolidated financial statements 5

The

Supplemental

Cash,

Increase

Investing

Financing

Operating

Cash

For

Consolidated

The

(Expressed

Sechelt

Income

Interest

Redemption

Dividends

Change

Total

Items

Company

the

accompanying

end

beginning

Accrued

Accounts

Due

Work-in-process

Prepaid

Accounts

GST provided

Inventory

Income

Amortization

Due

year

income

not

activity

taxes

paid

activity

Community

from

activities

cash

year

affecting

in paid

broker

ended

had

non-cash

taxes

cash

operational

silvicultural

road

Statements (received)

Canadian

payable paid

broker

receivable

and

GIC

the

(used

year

flow

notes

deactivation

December

comprehensive

following

cash

working

and

information

for)

are

costs

dollars)

Projects

costs

accrued

Cash

cash

capital

31,

costs

integral

transactions:

Flows

income

liabilities

lnc

items

part

for

the

these

year consolidated

financial

statements

1,147,375

(225,890)

(138,705)

476,862

670,513

896,403

(11,809) 283,852

675,367

660,858

(42,582)

(11,591)

25,764

33,563 32,020

37,725

14,509

2,277

2013

(314) (973)

130

(283,852)

476,862

225,987

250,875 262,656

240,582

226,321

(11,781)

(60,286)

(17,982)

(14,330)

31,426

80,286

14,261

(2,305)

2,435

4,378

9,641 2012 - -

661 6

December

Notes

(Expressed

Sechelt

(a) to

The

preparation

Significant financial

applying

complexity,

The

certain

financial

The

Standards

International

Basis The

The

Inlet

laws

pursuant

Sechelt

Nature

the

Community

31, which

balances

December

has These

Company

Principles following

preparation

consolidated

sole

consolidated

Avenue,

address

Consolidated

2013

critical

Canadian

Basis

Statement

statements

the

Community

instruments

the

been

shareholder

preparation

has

Board

operations

accounting

consolidated

Company’s

Province

Financial

have

these

Sechelt,

Community is

inactive

31,

of accounting

areas

year of

the

measurement (“IASB”).

well

financial

consolidation

dollars) Projects

2013

summary

been

financial

consolidated are

Projects

measured

Company’s

Financial

end

compliance

of where

British

Reporting

disclosed

policies

the

accounting

and

eliminated.

British

financial

Forest

its

date

statements

estimates.

Company

statements

December

was

wholly-owned

Columbia,

Inc.

assumptions

Statements

the

and

corporate

Agreement

Columbia

financial

fair

(the incorporated

Standards

statements

Note policies.

significant

SCCF

value.

“Company”)

have

31,

VON

the

3(k).

the

also

statements.

compliance

office

and

subsidiaries

2013

District

(K3F)

and

been

Consulting

The

3A0. (“IFRS”)

Company

May

accounting

requires

its

contained

and and

estimates

areas

prepared

dated

was

major

30,

was

principal

Sechelt.

with

incorporated

2011.

involving

Services

Sunshine

have

May

management

issued

activity

incorporated

policies

herein

IFRS

are

30,

All

been

place

2011.

significant

inter-company

historical

requires

Ltd.

Coast

include

higher

used

prepared

utilizing

the

which

March

business

International

Community

degree

management

February

exercise

cost

the

certain

management

has

the

accounts

transactions

basis,

accordance

2005,

Unit

consolidated timber

judgment

year-end

Forest

Accounting

2010,

except

under

make

rights

5588

with

and and

Ltd.

the the

the

for

in 7

December31,

Notes

(Expressed

Sechelt

(d)

(c)

(b)

Significant

the

Community

comparing

income

Gains

will

Gains are

amount replaced

income

The

When

accounted

Subsequent

subsequently

and

Recognition

Property

Work-in-process

British Work

down

net estimated

Inventories

incurred ordinary

Cost the

Inventory Inventory

Consolidated

2013 flow

recognized

written Canadian

initial

cost

realizable

weighted

directly

and

Columbia.

or parts

accounting

inventories

reversed

part

process

course

loss.

recognition,

and

losses

the

loss

for

the

down

losses

bringing

replacing

costs

and

are

valued

attributable

recorded

is as

item

dollars)

average

Projects

equipment

value

Company

for

proceeds

derecognized

Financial

Measurement

separate recoverable.

written

below

income

consists

(the

the

business

includes

item

the

policies

because

part

year.

property

reversal disposal

cost

the

cost

inventories

down

probable

and

Inc.

from

costs

cost

items

Statements

lower

loss

The

method.

property

materials,

less

unbilled

(continued)

its

When

and

plus

longer

disposal

item

(major

costs

changed

cost

limited

estimated

that

net

incurred.

the

equipment

cost

any

acquisition

the

Net

their

can costs

and

exist

realizable the

item

direct

components)

property

corresponding

costs

and

with

the

circumstances

realizable

economic

future

the

present equipment

costs

day-to-day

labour,

measured

net

the

when

amount

property

are

and

economic

value

realizable

betterment

carrying

location

valued

the

value

circumstances,

there

manufacturing

equipment

completion

spacing

have

loss

property

when

that

servicing

asset.

reliably.

and

the

and

benefits

amount,

value.

the

previously

original

clear

different

less

equipment

cost,

the

recognized

contracts

condition.

Property

and estimated

The

and

accumulated

evidence

recognized

cost

being

Cost

overhead

embodied

the

property

write-down).

equipment.

and

estimated

carrying

useful

caused

amount

with

are

the

and

are

selling

inventories

determined

the

and

the determined

purchase and

lives,

amount in

within

recognized

equipment

inventories

amortization.

selling

the

Company’s

province

equipment

increase price

other

the

they

carrying

the

costs.

write-

under

costs

price

part

the

are

not

the

to in

December

Notes

Sechelt

(Expressed

(f)

(e)

Significant

(d)

the

Community

against

subsequent

timber

31,

The Accrued

licence.

Provisions

gains

generating which

largely

When

accordingly.

the

recoverable.

Non-finaiiciaI

Amortization

Impairment

adjusted

Amortization

Property

Consolidated

liability

carried

2013

changes

Canadian impairment

Furniture

Roads

Company

higher

previously

the

independent

The

asset accounting

future

harvested.

with

out

and

asset

unit not

necessary.

expenditures

Company

and

methods,

When

over

dollars)

Projects assets

.sllvicultural

possible

value

for

equipment

loss

the

non-financial

circumstances

Financial

recognized

subject

property

belongs

equipment

the

which

liability.

its

Upon

the

policies

are

useful

asset’s

charged

records

rates

the

carrying

use

impairment

Inc.

subject

harvesting

for

costs

estimate

Statements relating

and

(continued)

requirements

cash

expenses

life.

and

(continued)

which

assets

cash-generating

other

indicate

equipment

the

The

value

20%

residual

inflows

the

fair

the

estimated

comprehensive

impairment

testing

years

the

following

there

income

the

Declining

value

being

recoverable

that

33 timber

from

relating

values

Straight-line

reforestation

are

asset

the

less

performed.

methods or

recorded

costs

other

separately

unit,

the

recorded

tests

balance

loss,

are carrying

costs

exceeds

income

amount

the

which

associated

reviewed

assets. at

except

and

least

reforestation

amount

identifiable

silvicultural

cost

rate

these

its

sell,

rates

The

annually

the

loss.

recoverable

are

with

the

management

lowest

asset,

cut

Company

intended

used:

extent

sales

reforestation

asset

under

costs

cash

and

blocks

the

group asset

that

whenever

amount,

are its

inflows

impairment

silviculture.

has

are

written

timber

amortize

they

annually

recorded

may

one

when

assets

recorded

that

which

reverse

not

events

forest

cash-

down

test

and

the

are

the

All

in is

December

Notes

(Expressed

Sechelt

(i)

(h)

(g)

(f)

Significant

the

Community

and

Consulting they

expected

has

completion

from

significant

Revenues

Revenue

Revenue outstanding

common

31,

Basic

the Earnings

they

common

Financial

reflected As

Company’s

Income The

The

liabilities

completed

deactivation

The

Road

Provisions

Consolidated

the

sales

collectability

not

2013

issue

Canadian

can

use.

the

Company

municipal

Company

earnings

capital

deactivation

yet

Income

accounting

be sale

taxes

costs

not -

Per

includes

recognition

The

instruments

are

fees

logging.

risks

been

determined.

for the

new

wholly

liabilities and

they

(continued)

meet

costs

determined

dollars)

accounted

Projects

for

Company

the

Tax

Company’s

are

corporation,

raw

per

received

has

and

are

Financial

are

available

subject

the

reasonably

the

All

relevant

are

the

costs

recognized owned

Act.

logs

classified

the

policies

not

current.

are

reward

subsequent

entire

issued

sale

recorded

definition

are

Interest

Company

adjusted

used

Inc.

accrues

for

Income

Statements

measured

consolidated

subsidiary

for period.

shown

the

requirements

the

contract.

under

(continued)

the

assured.

computed

raw

use.

Company

Company.

the

income

ownership,

equity

discount

expenditures

taxes

basis

for

revenue

the

logs

the

a Company

Upon

equity

subsequent

Losses

net

liability

SCCF

financial

the

instruments.

and

financial

percentage

are

to is

recognized

rate

costs

when

completion

weighted

exempt

brokerage

deactivate

recorded

provision

dividing

provided

with

Consulting

are

deactivation

liability

deduction,

the

statements.

services

changes

incurred

the

classified

calculate

recorded

from

contracts

Incremental

the

average

using

when

collectability

fees

logging

completion

Services tax

logging

net

the

have

financial

net

and

the

against

earned

the

costs

estimates.

under

expense

date

income

are

roads

logging

number of

equity

been

recognized

asset-liability

net

costs

tax,

accounted

Ltd.

method.

compared

Section

and

the is

asset.

present

once

from

substantially

only

being

the

directly

reasonably

roads

and

accrued

services.

loss

they

time

the to

common

149

The

upon

recorded

are

The

for

value

the

method

with

the

attributable

proceeds.

applicable

liability.

are

the

Company’s

accordingly

transfer

extent

degree

Division

estimated

Revenue

provided assured.

payment

the

soon

road

longer

these

total

that

cost

the 10

H is

December Notes

(Expressed

Sechelt

Significant

the

Community

The

that

December

calculated

them

31, amortized

classified

Non-derivative

derecognized

Held-to-maturity Amortized

Gains

that

includes amortized

cash

date

The

receivables.

with

Loans

31,

profit A

designated

recognition.

investments

Financial

financial

Transactions

which

loss

Financial

Consolidated

included

FVTPL

2013

Canadian

2013

are

Company Company

the

are

settlement

(FVTPL)

and

the

dates,

an other

accounting

maturity.

loss. Company’s

fees

assets

and

directly

assets

financial

31,

assets by

cost

assets

cost,

asset

Receivables

instruments

integral

losses

held-to-maturity

These

and

income.

taking

assets

2012.

2013

Projects

dollars)

that Financial

costs

financial

The

are

has

FVTPL

did

using investments

are

impaired,

Financial

date

was

makes

using

are

After calculated

attributable

are

asset

part expensed

fair

Company

and

classified

assets

included

not

demand.

associated

into

policies

documented

basis.

classified

The

acquired.

the

recognized

value

are

assets

initial

2012.

the

assets

purchase

account

have

Inc.

lender

Statements

the

losses

integral

effective

are

classified

measured

The

taking

effective

when

well

through

(continued)

They

has

cash,

measurement,

effective

with

any

the

into

non-derivative

with

All

are

Company’s

incurred,

any

risk

arising

their

not

and

the

transactions

initial

part

are

into

one fixed

accounts

held-to-maturity designated

financial

through

interest

profit

borrower

the

discount classified

management

interest

Company

sale

initially

account

interest

acquisition

35 held-for-trading

carrying

from

fair

profit

or the

the

while

decisions

accounting

determinable

the

loss

held-to-maturity

value,

assets

method,

receivable

financial

following

impairment

recognized

effective

rate

any

rate.

any

amortization

has

return

transaction

amount

premium

loss

FVTPL

financial

and

discount

method,

classified

The

the

investments

based

investment

when

less

policy

for

issue

assets

categories

any

price

after

acquired

financial

cash

comprehensive

available-for-sale

the

objective instruments

recognition

hedge the

loss.

income

investments

31,

are

objective

flows

full

initial

for

2013

asset

fair

carried

liabilities

active

are

relationships

amount

held

the

evidence

value

recognition

carried

and

classified

the

entered

evidence

loss.

market

purpose

for

income

fair

group

2012.

held-for-

cost.

financial

through

trading

entities

Where

value

that

into

and

the fair

or a

December31,

Notes

(Expressed

Sechelt

Significant

the

Community

shareholder.

Dividend Accounts

accrued

this

the

This

carried

transaction

broker,

the

Financial

Other

Financial

Consolidated

the

distributed

2013

any

Canadian

balance

liability

context

ensures

financial

Company

interest

accounting

and

liabilities

payables

liabilities

amortized

payable

liabilities

instruments

was

costs

includes

dividend

These

that

dollars)

Projects

liabilities

the

Financial

incurred,

amounts

prior

coupon

any

directly

are

and

liability

represent

shareholder

payments

policies

cost

(continued)

payable. initial

interest

classified

accrued

(continued)

Inc.

using

payable

and

the

Statements

attributable

are

carried

transaction

(continued)

end

expense

comprise

unsecured

These

have

distributions

the

liabilities

subsequent

while

effective

other

been

the

liabilities

the

costs

over the

statement

represent

the and

financial

declared

period

accounts

liability

interest

the

and

issuance

are

year

the

period

which

usually

premiums

initially

liabilities,

liabilities

payable

rate

end.

Company’s

payables

outstanding.

financial

method.

are

paid

repayment

recognized

the

for

payable

based

unpaid.

within

and

instrument

December

goods

position.

retained

accrued

Accounts on

and

the

days

fair

redemption,

Interest

and

purpose

31,

services

earnings

constant

value

liabilities,

2013

subsequently

recognition.

payable

expense

net

for

provided

and

rate

due

which

well

and

any

will

the

to in

December

Notes

(Expressed

Sechelt

(k) Significant

the

Community

removed

roads. experiences

standard

Road

Road cut

31, specific

timber

The

independent

by Accrued

volume.

prospectively.

reviewed engineering

engineers

Expected Expected

discussed

liabilities

most

the

Information

The

profit

differ

The

believed amounts

historical

Critical

Consolidated

subcontractor

these

blocks.

2013

Canadian

management

change

Company

effect

deactivation

Company

or significant

from

Subsequent

forest

cut

accounting

from

future

loss

cost

accounting

cut

recognized

timber

experience and

below:

who

these

blocks

with

and

about

assets

blocks

expert

licence

the

dollars)

per

Projects

shy/cultural

accrues

The

the

makes

reasonable

future

updated assess

change

Financial

costs.

the

road

risk volumes

liability

estimates

costs

volumes

costs

meter

based

critical

and

period and

are

analysis.

policies

estimated

costs

estimates

building

the

periods,

the

and

the

may

estimates

These

logged

the

liabilities.

causing

are

the

Inc.

from

accounting

annually

costs

time

Statements recording

associated

consolidated

accounting

and

incurred. from

other

undiscounted

under

based

road.

differ

change,

expected

(continued)

The

costs

the

with

certain

costs

the

volume

assumptions.

and

material

the

certain

Estimates

and

factors,

from

These

the

assessment

timber

Company’s

reference

for

change

judgments

are

estimates

cut

with

assumptions

circumstances. managements

estimate

the

timber

the

each

the from

financial

management

adjustment

cut

accrued

blocks

estimates

estimated

is including

change

the

actual

and

deactivation

harvested.

affects

block

cut

blocks

supply

deactivation

in is

the

judgment

operational

statements

blocks

applying

based

costs

recognized

affects

are

both.

expected

about

are

expectations

cost

the

are

estimates

recorded

with

the The

associated

based

costs

may

time

each

determined

the are

that

the

accounting

carrying

within

estimated

reforestation

the

plans,

volumes.

any

continually

prospectively future,

future

the

differ

period

all

cut

location

completion

roads

the

such

changes

historical

with block.

inventory

from

amounts

past

that

future

actual

only,

initially

costs policies

These

costs

reforestation

and

evaluated

affect

and

required

the

expenditures

experience, or

financial

The

experience

events

are

data

consist

being

and

terrain

based

estimates

actual

that

including

the

determined

assets

associated

third

expensed

and

under

based

have

period

year

that

reported

service

applied

mainly

timber

party

past

and

may

are

and the

the

are

14 are

the

are

its

of in

December

Notes (Expressed

Sechelt

Work-in-process

Finished

Inventory

(m)

(I)

Significant

the

Community

31,

assess the

implement

limited

issues. developed.

classification,

issued.

Instruments:

IFRS

adopted

results The

Accounting

statements.

The

adoption

Adoption

Consolidated

2013

Canadian goods

Company

following

Company

the

modifications

and

The

Financial

Chapters

Financial

accounting

lAS

IFRS

impact

financial

these

Further,

Company’s

12 These

Recognition

policies

inventory

consolidated

new

dollars)

Projects measurement

these

13 7

new

Financial

has

Instruments

dealing

Instruments

financial

until

accounting

standards

standards,

position:

all

policies

standards

adopted

not

all

changes.

November

management

IFRS

Separate

Investments

Employee

Deferred

Fair Joint

Presentation Disclosure

Consolidated

Financial

with

Inc.

and

yet

Statements

statements,

financial

its

and

Value

(continued)

adopted

Arrangements

are: 9’s

Measurement.

impairment

these

standards

chapters

amendments

part

had

derecognition

financial

Tax:

Financial

Instruments

Benefits

2011,

Measurement

statements.

of in

accounting

have

Interest

Financial

Recovery

Associates

will

the Other

have

the

significant

methodology

asset

yet

Statements

IASB’s

and

been IASB

Comprehensive

may

Disclosure

Statements

Other

of date,

However,

classification

standards

assess

interpretations,

financial

and

wider

Underlying

have

published

tentatively

impact

the

Entities

Joint

and

the

project

chapters

Management

assets

hedge effective

Ventures

effect

impact

and

Assets

Income

model $

decided

the

they

that

155,120

152,014

accounting

and

replace

dealing

3,106

2013

to January

consolidated

the

can

this

have

liabilities

address

does

Company’s

consider comprehensively

new

lAS

with

not

are

not

standard

recognition,

application

have been

2013.

still

expect

Financial

16,741

financial

making

2012

future being

been

early

The

on to

December

Notes

(Expressed

Sechelt

Additions

Net

Accumulated

Cost

Net

Additions

Accumulated

Cost

Property volumes

year

completed

Management

Prepaid

atJanuaryl,

the

book

Communfty

book

31,

December

January

December31,

December

January

that

December

January

Consolidated

2013

Canadian

value,

for

operational

value,

and relate

and

those

amortization

has

equipment

31,

2012

December

31,

2013

31,

December

2013

areas

identified

dollars)

Projects

the

2012

such,

2013

Financial

costs

anticipated

are

these

31,

certain

realized.

Inc.

2012

Statements

2013

costs

activities

engineering

have

for

been certain

and

Furniture

deferred

Furniture

equipment

temporary

equipment

areas

11,958

21,427

13,867

11,958

21,427

9,469

2,344

9,614

7,560

1,909

and

road

are

amounts

expensed

building

219,207

306,827

206,933

306,827

87,620 75,347

12,273

Roads

99,894

12,274

87,620

Roads

costs

timber

the

incurred

that

anticipated

228,676

328,254

214,493

113,761

328,254

99,578

84,961

14,617

have

99,578

14,183

Total

the not

10.

December

Notes

(Expressed

Sechelt

in The

Futures

Contributed

Authorized

The

road.

(2012 Accrued

$40,100

The

metres.

Accrued

conjunction

the

Community

Unlimited

31,

shareholder

Company

Consolidated

-$13,075)

During

capital

2013

Canadian

Development

(2012

road

silvicultural

During

surplus common

with

the

accrues deactivation

accrues

$34028)

the

year

the

dollars)

Projects

the

Financial

year

Corporation

application shares

the

costs

road

silvicultural

Company

the

deactivation

cost

the

with

Inc.

Company

Statements

activities.

for

received

costs

2004

accrued

the

par

activities.

Probationary

value

costs

accrued

based

and

costs a

expended

SICEAI

the

costs

the

completion

$36,838

Community

volume Grant

those

$65,864

(2012

monies

Forest

$49,770

the production

(2012

$22,716)

construction

Agreement.

behalf from

$65,454)

measured

and

the

spent

Community

the

and

Company

logging

$3,275

spent

cubic 17

11.

December

Notes

(Expressed

Sechelt

included

Management

exposure

position.

financial

Canadian

primarily

Financial

Credit

Credit A

The to

has

are

making

Financial

because market

indicated,

The

Fair

Financial

financial

the

Community

been

31,

fair

classified

Company

value

risk risk

Consolidated

2013

Level

the

value

Canadian Level

Level

value

institutions instruments

considered

instruments

government is

cash

the

instrument

instruments

cash.

credit

measurements.

the

believes

hierarchy

carrying

using

and

estimates

near and

risk

The

dollars)

Projects

pricing

receivables

maturity

and

Financial

that

for

recorded

that

loss

Company

measuring

value or

fair

requires

valuation

not

directly

valuation

included

fair

classified

valuation

identical

the cash

potentially

invests

associated

based

the

value

The value

fair

Inc.

financial a

Statements

those

(i.e.

credit

these

the

fair

value

the

British

limits techniques

techniques

assets

fair

fair minimal. to

based

only

hierarchy

and

level

subject

value

use

the

amount

observable

instruments.

value.

value

financial

with

risk

prices)

risk

its

instruments

or of

lowest

on Columbia

its

that

hierarchy

exposure

observable

short-term

liabilities;

counterparty’s

concentration

management

the

quoted

that

financial

using

based

disclosed

42 are

the

level

Company

instruments

indirectly

market

reflects

observable

inputs

Consolidated

prices

Credit

has

with

instruments

market

inputs

obligations

credit

the

data

for

the

comparable

inability

(unadjusted)

with

(i.e

Union.

hierarchy

following

approximates

the

other

(unobservable

loss

consolidated

for

derived

significance

inputs

concentration

respect

asset

Statements

the

based

that

than

fulfil

The

whenever

asset

for

levels:

placing

from

terms.

quoted

are

which

liability

its

active

Company’s

their

statement

prices);

financial

current

payment

inputs).

guaranteed

its

liability,

the

credit

such

Financial

prices

Unless

fair

markets

that

cash

significant

inputs

and

interest

market

are

instruments

inputs

obligations.

risk

either

with

maximum

otherwise

financial

for

Position

used

consist

major

exist.

rates,

value

input

the

18 in

11.

December Notes

Sechelt

(Expressed

financial

investments The

iii) appropriate

defined

movements The

The

ii) 2012

these

profitability

currency

Market

classified

settle

the

sufficient fall

liquidity

Liquidity

Financial

Foreign

Price

the

Interest

settle

Community

short

31,

Company

due.

Company

and

Consolidated

current

December

risks

as risk risk

risk

2013

Canadian

these institution

requirements

risk,

risk

therefore

and

currency

The

reserves

rate

the

instruments

course

incorporates

and

current

the

liabilities

long

not

affect

with potential

risk

Company’s

does

the

volatilities.

exposed

31,

Company

considered

exposed

dollars)

Projects of

term.

risk

funds

risk

ability

the

and

Financial

not

2013,

action

not

subject

cash

under

adverse

that

fair

exposed

have

are

from

$481,702

range

approach

the

or is

value

values

the

price

The

anticipated

significant.

Inc.

both

the

its

have

interest

assets

Statements

Company

impact

positive

taken

Company

risk

and

Company

floating

(2012

risks.

normal

foreign

financial

with

held

rate

risk

available

the

managing

working

-$388,208).

had

Movement

will the

earnings

mature

respect

rate

market

and

management

closely currency

risk to

Company.

foreign

not

assets

cash

develop

stressed

credit to

capital

within

price

interest.

liquidity

the

monitors

and

able

risk.

balance

commodity

currencies

and

All

facility

risk

extent

position.

economic

this

conditions

(continued)

logs. liabilities.

factors,

the

market

meet

The

fiscal

commodity

that

Company’s

$1,147,375

meet

prices.

evaluate

interest

its

period.

value

such

the

The

its

financial

its

December

products

ensure

cash

prices

due

Company

Commodity

liquidity

rate

The

current

financial

market

(2012

maintained

obligations

risk

Company

that

commodity

requirements

and determine

31,

and

price

$476,862)

liabilities

price

exposed

the

2013 cash

maintains

expected

risk

intends

risk

future

price

they and

and

the

are

is in

13.

12.

December

(Expressed

Notes

Sechelt

Key

During $25,890

payable

During

subsidiaries The

There

December

capital

Company’s

contingencies year

review The

The

broker,

purposes

Capital

the

Community

31,

management

consolidated

Company’s

Company

and

Consolidated

were

the

management

2013

Canadian

income

will

disclosures

party

year,

financial

the

SCCF

31, Sunshine

year,

capital

and

this

prior

2013.

transactions

and

changes paid

taxes

considers

the

their

objective

the

on-going

Consulting

compensation

financial

section.

dollars) Projects

was

year

Company

reporting

after

Financial

Coast

Company

The

respective

receivable,

provide

$683,303

done

and

the

Company

the

Capital

statements

basis

Community

managing

year Services

declared

and

Inc.

paid

Company’s net

Statements

paid

ownership

management

and

reasonable

(2012

end.

longer-term

and

honourariums

was

fund $25,890

GST

calculated

Ltd.

payable

capital

unencumbered include Forest

not

$377,388).

current

approach

recoverable

listed

subject

rate

(2012

Ltd

capital

the a

conjunction

totaling

dividend

of operations,

financial

ensure

the adding

return

$NIL)

planning.

externally

capital

then

financial

following

100%

$6,000

sufficient

cash,

deducting

statements

with

$225,890

management

the

dividends

assets

table:

(2012

imposed

provide

the

accounts

shareholder.

capital

board total

(2012

held

December

$4,500)

which

for

covenants.

the

current

during

receivable,

to future

available

Company

budgeting,

$25,890)

were

The

the

liabilities.

the

capital

31,

liabilities

declared

year

Company’s

president.

during

2013,

due

and

regular

for

ended

which

from

and

the

20 as SUNSHINE COAST COMMUNITY FOREST operated by Sechelt Community Projects Inc.

Report to our Shareholder - 2014 Directors Nominations - March 24, 2014 Prelude

The following are some aspects of the roles and responsibilities of the directors that the board of directors requests the shareholder to consider: 1. All directors of SCPI are representatives of the shareholder. 2. The board believes it is very important for the shareholder to exercise their right to elect the directors of SCPI. 3. The board expects the shareholder will trust each and every director to act in the best interests of the company. if such trust does not exist, the shareholder has a duty to replace the board. 4. The board needs sufficient people to minimize the work required of any one or more volunteers. 5. The board believes the Chair should be the sole spokesman to the public and conduit to the shareholder. 6. The board welcomes regular meetings between the board and Councillors to ensure a free and frank exchange of views. Process for identifying potential directors

The Nominations Committee and Board of Directors has undertaken the following process to identify potential candidates to be directors:

All board members were contacted individually and asked if they were willing to stand for another term. It was agreed that continuity of membership would be prudent at this time and the recommendation to Council should be that all current members remain. Recommendations

The Nominations Committee of SCCF, with the unanimous support of the Board of Directors, is pleased to provide the following recommendations to our shareholder:

A. That the following list of 9 individuals be forwarded to the shareholder to fill 9 positions:

1. Glen Bonderud 2. Tim Anderson 3. Peter Moonen

45 P.O. Box 215, Unit C — 5588 Inlet Avenue, Sechelt, BC VON3A0 Phone: 604-885-7809 E-Mail: [email protected] www.sccf.ca March 24, 2014 Page 2 of 5

4. Stan Anderson 5. Tom Pinfold 6. Tony Greenfield 7. Dale Eichar 8. Jordan Louie 9. Brian Fournier

B. In accordance with the Articles of Incorporation approved September 6, 2013, and for this term only, that the following individuals be appointed for a one year term:

Dale Eichar, Brian Fournier, Jordan Louie, Peter Moonen

C. In accordance with the Articles of Incorporation approved September 6, 2013, that the following individuals be appointed for a two year term:

Stan Anderson, Tim Anderson, Glen Bonderud, Tony Greenfield, Tom Pinfold

Submitted by the Nominations Committee Elise Rudland (Chair), Tony Greenfield, Stan Anderson

Attachment: Brief Bios of the Candidates

46 March 24, 2014 Page 3 of 5

BRIEF BIOS OF CANDIDATES: Glen Bonderud Currently, Chair of SCPI

Glen spent 27 years with McMillan Bloedel Ltd mainly in Overseas Lumber Sales involved in the world markets for our lumber. In two postings to Tokyo totally almost 8 years, Glen was President of MB Building materials KK and then MB Ltd — Japan- a distribution company for pulp, paper and timber. On returning to Vancouver, Glen became president of Higa Canada and was a buyer of building materials for the Japanese markets. Glen is now retired. Over a career of 40 years, Glen, as a senior executive with extensive domestic and international marketing, sales and operations experience, made some significant accomplishments and developed some important strengths: • Administration of a cross cultural sales organization for successful expansion of business • Establishing and maintaining long-term business relationships from suppliers to customers on an international level • Research and marketing/business strategy on a worldwide basis • A broad knowledge of the forest industry.

Tim Anderson

After articling with Peat, Marwick, Mitchell, Chartered Accountants, in Prince George, Tim spent 20 years in the north, initially in public practice and then as the controller for a major logging contractor in Burns Lake, and later a logging equipment supplier in Prince George. He subsequently worked with three school districts as Secretary-Treasurer, most recently on the Sunshine Coast. He has been on the Coast for 25 years, retiring from the School District in 2001. In addition to his experience in both the private and public arenas, he has been involved as: a School Trustee, including Board Chair, a Director of the Sunshine Coast Credit Union, including three years as Chairman, a member of the local Elder College Committee, and an active participant in local theatre, sailing and skiing.

Peter Moonen

Peter Moonen is a third generation British Columbian who has his roots in the forest sector. He has more than 25 years experience as a communications specialist, the last 19 years in the forest industry. He is co-leader of the Sustainable Building Coalition formed with the Canadian Wood Council, Forest Products Association of Canada and various industry, government and non government organizations. He is also Coordinator of Sustainability and Special Projects for WoodWORKS!, a program developed by the Canadian Wood Council to stimulate and enhance a wood culture in B.C. through education, training and awareness-building programs.

He has been involved in community economic development, especially transitional strategies for small, rural and resource economies. He has worked closely with several communities around the province in enhancing and diversifying their economies with special emphasis on meeting the 47 March 24, 2014 Page 4 of 5 needs of small and medium sized value-added businesses. He is currently president of the B.C. Wood Co-op, an organization promoting B.C. made value added wood products.

He has a double major degree in Marine Biology and Zoology as well as studying forestry at the University of British Columbia and Communications and Marketing in Calgary. He lives in Roberts Creek with his wife, three daughters and one son.

Stan Anderson

Stan is a 50 year resident of the Sunshine Coast and a past Director of the Sunshine Coast Credit Union. Immediately after graduating from high school, he worked in the logging industry on the SC and Vancouver Island. He started as a boom man with Jackson Brothers and became logging Camp Foreman for Stoltz Logging.

In 1970, he turned to real estate sales, and in 1975, he and his wife, Diane, formed their own real estate and development company. Stan was a founding member of the SC Real Estate Association and served as President for many years. He served as a Director of the St. Mary’s Hospital for 8 years and a Director of the SC Credit Union for 16 years.

Tom Pinfold

Dr. Pinfold is President of Gardner Pinfold Consulting Economists Ltd., with offices in Sechelt and Halifax. He is trained in quantitative and qualitative economics, and holds Bachelor, Master and Doctoral degrees in economics.

Tom has been an Assistant Professor, Associate Professor, Special Lecturer and Honorary Adjunct Professor of Economics at Dalhousie University. He was also an Economic Advisor, for three years, to the Ministry of Finance & Planning, Nairobi, Kenya.

Since 1980, Tom has been an active member of Gardener Pinfold Consulting. He has been involved in many studies and reports on: agriculture development, fisheries development and management, forestry management, health, natural resources valuation, offshore petroleum development, sustainable development and tourism development.

Tony Greenfield

After a 30-year career as a silviculture contractor Tony now operates a nature tour company. Tony has been president of the Sunshine Coast Natural History Society for many years, and has a detailed knowledge of local biodiversity and ecosystems. Since 1980 he has been involved with local battles to preserve Tetrahedron Provincial Park, Spipiyus Provincial Park, Sargeant Bay Provincial Park, Big Firs Regional Park, the Wilson Creek estuary, and defeating the early 1980s plan to construct a canal through Sechelt to Porpoise Bay.

48 March 24, 2014 Page 5 of 5

Dale Eichar

Dale has been a resident of the Sunshine Coast since 1981. He retired in 2010 following a 35 year career in credit union general management, 29 years of which were as general manager/CEO of Sunshine Coast Credit Union. Dale has been an active community volunteer over the years and was a founding director of Sunshine Coast Community Foundation. He also served on a number of economic development groups on the Sunshine Coast. He grew up and has lived in rural, forestry dependent communities and understands resource dependent economies and the challenges they face now and in the future. Dale is a university graduate with a Bachelor of Science degree in Business Administration, General Management.

Jordan Louie

Jordan carries a broad range of skills from field work in forestry and fisheries, to governance with First Nation and local government. He represented Sechelt Indian Band and the Sechelt Indian District as a director of the Sunshine Coast Regional District for three years. He currently sits on the Sunshine Coast Community Foundation board and the Community Leadership Committee.

Brian Fournier

Brian and his wife Teresa have worked, lived, and grown with the Sechelt community over the past 20 years. Brian is a Registered Professional Forester (RPF) with a BSc in Forestry and BA Geography & Natural Resource Planning. He has extensive forestry experience in operational planning, reforestation, and forest resource management. Brian is currently employed by International Forest Products Limited, as Area Forester, and is responsible for managing Interfor’s silviculture program from Sechelt Inlet to Toba Inlet on the Sunshine Coast.

Brian is active in the community, as a co-owner of his family run business, and as a supporter of youth sports and community events. As a volunteer coach, team manager, and division manager with Sunshine Coast Minor Hockey, Brian has enjoyed taking a leadership role. He has also served and trained with the Royal Canadian Marine Search and Rescue - Unit 12 in Halfmoon Bay. Brians passion for the outdoors often finds him skiing, mountain biking, trail running, or on the water sailing in his spare time.

49 SECHELT COMMUNITY PROJECTS INC. 2014 ANNUAL GENERAL MEETING GUIDE TO RESOLUTIONS TO BE MADE BY SHAREHOLDER

MINUTES OF PREVIOUS MEETING

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT the minutes of the Annual General Meeting of the Corporation dated May 6, 2013 be and are hereby accepted.

FINANCIAL STATEMENTS

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT the Audited Consolidated Financial Statements for the year ended December 31, 2013 of the Corporation presented in the form attached hereto, be and are hereby accepted.

APPOINTMENT OF AUDITOR

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT Crowe MacKay, LLP be and are hereby appointed as the auditor for the Corporation for the 2014 financial year.

ELECTION OF DIRECTORS

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT the following persons be and are hereby elected to act as Directors of the Corporation for a one year term: Brian Fournier, Jordan Louie, Dale Eichar, Peter Moonen

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT the following persons be and are hereby elected to act as Directors of the Corporation for a two year term: Stan Anderson, Tim Anderson, Glen Bonderud, Tony Greenfield, Tom Pinfold

REPORT OF OPERATIONS

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT the Report on Operations be and is hereby acknowledged.

50 OTHER

MOTION: UPON MOTION DULY MADE AND SECONDED IT WAS RESOLVED THAT all acts, deeds and things done by and the proceedings of the Directors and Officers of the Corporation on its behalf since the last Annual General Meeting be and the same are hereby ratified, confirmed and approved.