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WL Community Forest LP

Annual Report to the Community for the Year Ending December 31, 2016

April 20, 2017

Contents Governance Structure, Role of Partners ............................................... 2

Appointments by the Board of Directors .............................................. 2

Operational Report ................................................................................ 3

Achievements towards the stated Goals 2016 ...................................... 7

Operations Plan for 2017 ...................................................................... 8

Community Granting Program .............................................................. 9

Annual Financial Report ...................................................................... 10

From the Application

Mission Statement

Our mission is: To sustainably manage the natural resources and cultural heritage of the Community Forest to the benefit of local communities, thereby creating a foundation of mutual respect on which to maintain and develop the local economy

Partners’ Goals

The partners’ goals for the Community Forest are to: • reflect community values

and respect the land; • sustainably manage for all

forest resources;

enhance local partnerships that support forest education and an increased public understanding of forestry;

• operate the Community Forest as a viable forestry enterprise;

realize socioeconomic benefits such as local employment and economic activity associated with milling and manufacturing, and

• generate revenue for

economic development and

community stability.

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Governance Structure, Role of Partners

WL Community Forest LP – Details at a Glance

Registered Limited Partnership (LP0625915) formed by the Williams Lake Indian Band and the City of Williams Lake

1,000 partnership units – 499 held by each partner, 2 held by WLCF General Partner Ltd.

The expressed purpose is to apply for, hold and manage a Community Forest Agreement

The Partnership conducts all the business – the public face of the community forest

Limited Partnership – the partners are sheltered from liability for the activities because they are completely arm’s-length from management decisions

WLCF General Partner Ltd.

A limited company formed by the partners to act as the managing general partner for the partnership

Partners are 50/50 shareholders of WLCF General Partner Ltd.

Board of directors is appointed by the partners – 3 from each for 6 directors For WLIB: Byron Louie, Gabe Pukacz, Steve Capling For COWL: Tom Foley, Leah Hartley, and one vacancy Recognize the contributions of retired directors Darrell Garceau, Brian McNaughton, Dr. Ray Sanders

Only one director can be not at arm’s-length from each partner

Quorum is 4 directors, 2 representing each partner

Has the full power and authority to manage the business affairs of the partnership

Costs and revenues are incurred in the name of the partnership

Appointments by the Board of Directors The Board of Directors has made the following appointments in effect in 2016:

1. Bank of Montreal is our bank (Ongoing)

2. Flo Pelchat, Pelchat & Co. is our Accountant and Book-keeper (Ongoing)

3. Ken Day, MF, RPF (as Manager of the UBC Alex Fraser Research Forest) is our Manager until December

31, 2017.

4. Canadian Overseas Log and Lumber is our Log Broker (Ongoing).

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Operational Report

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Respectfully Submitted by

Ken Day, MF, RPF, Manager

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Standing Committee on Resource Interests and Values

Activities The Standing Committee met on four occasions in 2016, including one field trip. Discussion focused on

access planning and recreation, community granting programs, archaeology, Douglas-fir bark beetles,

and landscape-level fuel break for Williams Lake.

One public meeting was held in Williams Lake, to discuss the Douglas-fir bark beetle sanitation plans,

development of a landscape-level fuel break for Williams Lake, and take input on operational planning

more generally.

Excerpts from Standing Committee Terms of Reference A. Purpose:

The purpose of the Standing Committee on Resource Values & Interests is to encourage meaningful consultation with residents, communities and resource users to identify resource values and interests for consideration in management of the WL Community Forest; and to convey these recommendations to the Board of Directors of the WLCF General Partner Ltd.

B. Overall Role: The Standing Committee on Resource Values & Interests will: 1. Provide guidance on public engagement, including at minimum an annual forum for residents, communities

and resource users to make known their interests and values in the Community Forest 2. Recommend how best to accommodate those interests and values and to improve community support for

the Community Forest 3. Review and make recommendations on Community forest Agreement activities with respect to resource

interests and values 4. Encourage engagement of residents, communities and resource users in public engagement, education and

extension 5. Ensure effective and fair distribution of grant program funds provided by WL Community Forest LP (i.e.% of

net revenue according to the business plan) 6. Review and provide input on strategic plans and policies related to resource values and interests 7. Provide guidance on the design and delivery of outreach and education activities, to encourage youth

involvement in the Community Forest C. Expected Outcomes

1. Meaningful consultation with communities that improves the management and administration of the Community Forest.

2. Increased community support for the Community Forest 3. Protection or enhancement of community values and interests in all Community Forest plans and

operations. 4. Fair distribution of benefits from the Community Forest. 5. Good communication with the public. 6. Strong forestry education and extension programs. 7. Youth involvement in the Community Forest.

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Standing Committee Membership

The Directors recognize and appreciate the participation of all committee members, and particularly Richard

Case, Joan Sorley and Kurt Williams who have resigned from the committee in 2016.

BlockResidence/

Interest Location

Community

ResidentsRange

Trapping/

Guide

Outfitting

Hunting

Fishing

Education

&/or

Youth

Aboriginal

and

Traditional

Use

RecreationWater

Environment

Social

Perspectives

Henry Doucette Flat Rock Moore Mtn Yes Yes Yes Yes Yes Yes

Gord Flatt Potato Mtn Miocene Yes Yes Yes Yes

Jim Hilton Flat Rock Esler Yes Yes Yes Yes

Tom AlphonsePotato Mtn

and Flat RockLikely Rd Yes Yes Yes Yes

Bill Stafford Flat Rock Chimney Ck Yes Yes Yes Yes Yes Yes Yes Yes Yes

Leonard Teppema Potato Mtn Horsefly Yes Yes Yes Yes Yes

Dave White Potato Mtn Big Lake Yes Yes Yes Yes Yes Yes

Susan Woermke Potato Mtn Horsefly Yes Yes Yes Yes Yes Yes Yes

Bette MacLennan Flat Rock Williams Lk Yes Yes Yes Yes Yes

From Approved Terms of Reference

1.       Up to 12 interest-based committee members, of which one may serve as chair

a. Members to be appointed to represent the interests of communities, residents, stakeholders and licensed users.

b. Committee members will have an interest in the land area of the Community Forest

2.       The interest-based structure for the Committee should:

a. Reflect the geographic and social diversity (i.e. Big Lake, Miocene, Horsefly, Esler, etc.)

b. Reflect interests of resource users such as guides/trappers, ranchers, residents, etc.

c.   Include education and youth

d. Include aboriginal and traditional use

e. Include recreation

f. Include environmental, ecological and social perspectives

g. Reflect the interests of local citizens

3.       A majority of the Committee Members will have a prime interest in the Potato Mountain Block

Standing Committee Matrix of Interests Represented

From Self-Declared Interests

Name

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Achievements towards the stated Goals 2016

Reflect community values and respect the land; Working with mountain bike club and FLNRO to protect mountain bike trails while managing Douglas-fir

bark beetle

Hosted one public meeting to take input on operational planning, plus four meetings of the Standing

Committee on Resource Interests and Values

Archaeological impact assessments identified new archaeological sites and features

Sustainably manage for all forest resources; Plans in place for grassland restoration on two areas at Flat Rock

Strong emphasis on Douglas-fir bark beetle management at Flat Rock

Plans in place for harvest in more than thirty blocks – including mule deer winter range, visually sensitive

areas, Douglas-fir bark beetle control, landscape-level shaded fuel break, and First Nations Birch Areas

Enhance local partnerships that support forest education and an increased public understanding of forestry;

Hosted one public meeting in Williams Lake including a presentation by Dr. Lori Daniels, UBC Forestry

Facilitate a summer work project for UBC Geography students

Participate in the Standing Committee on Resource Interests and Values, including a presentation at

each meeting by an outside expert on a topic of importance to the standing committee.

TRU has provided meeting space free of charge for Standing Committee Meetings

Engaged UBC Alex Fraser Research Forest as Manager

Promote and support research on fire frequency, severity and forest and community resilience

Operate the Community Forest as a viable forestry enterprise; Appointed Pelchat & Co as book-keeper and auditor

Careful attention to cash flow – bi-monthly reporting to directors in place

Appointed Canadian Overseas Log and Lumber as broker to represent us to the market.

Two successful proposals to Forest Enhancement Society of BC totalling $563,000 for Steep Slope

Salvage and Landscape-Level Shaded Fuel Break

Realize socioeconomic benefits such as local employment and economic activity associated with milling and manufacturing, and

Qualified numerous local service providers to undertake operations

Harvested 17,750 m3 into the market

Shipped logs to two major mills plus three small mills, all in the local area

Planned the harvest of 150,000 m3

Generate revenue for economic development and community stability. Insufficient harvest in 2016 to support disbursement of revenues to this time.

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Operations Plan for 2017

Cut Control Situation in the 2014-2018 Period Allowable Annual Cut: 40,000 m3/year. Objective: 200,000 m3 developed and harvested by December 2018

Cut 2014-Present: m3 2014 0 2015 1,027 2016 17,750 2017 YTD 66,178 Total 2014-Present 84,955

Plan: m3 2017 May-Dec 25,332 2018 89,713 Total 2014-2018 200,000

Timber Harvest Planning 105,000 m3 are planned or in process for 2017 and 2018

Aim to have 100,000 m3 standing timber inventory at end of 2018

Douglas-fir Bark Beetle 12,470 m3 scaled in 2017 YTD Including 3,041 m3 of helicopter logging

2,000 m3 on deck ready for trucking when roads dry

Trap trees and anti-aggregation pheromones -- deployment underway

Funnel traps on decked logs

Probing to take place July-Nov

Road Construction/Improvement 10 km new road built YTD for 2017 logging

10 km new road in anticipation of 2018 harvest

Capital maintenance/upgrade on 20 km 2017 – R/W clearing, ditching, culverts and gravel

Special Projects Garbage collection, particularly cars and appliances at Flat Rock

LiDAR coverage to support planning and inventory

Governance Develop Board of Directors Terms of Reference and Policy package

Select a new Manager

Public Engagement Hold four Standing Committee meetings, including one field trip

Hold annual public meeting in the early summer

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Community Granting Program Under our application, we promised to establish a granting program to distribute 5% of the Net Income from the

Community Forest, after repaying partner investments.

This is a key role of Standing Committee on Resource Interests and Values

Currently Establishing a policy and procedure recommendation for Board of Directors

Policy will describe eligible applicants and eligible purposes

Award decisions will be made by the Standing Committee according to the approved policy and

procedures

No surplus of net income was available in 2016, and as a result no grants will be distributed in 2017

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Annual Financial Report

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