BBB* of Central and Northern Alberta

2016 Annual General Meeting

* Trade-mark of the Council of Better Business Bureaus used under license

BBB serving Central and Northern Alberta, Lloydminster, Northeastern British Columbia, Nunavut and the Northwest Territories

Your BBB - Reaching New Heights

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

Table of Contents

Agenda 3

Minutes of 2015 Annual General Meeting 4 Nomination Report 7

Board of Directors - 2015/2016 8 Annual Report 2016 9

BBB Principles of Trust 10

Message from the CEO - Chris Lawrence 11

BBB Yearly Statistics 12

Statement of Operations 14

Year in Review 15

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2016 BBB Annual General Meeting

BBB - Reaching New Heights

59th Annual General MeetingThursday April 28, 2016: 4:00 p.m.

The Derrick Golf ClubEdmonton, Alberta

Agenda

1. Call to Order and Confirmation of Quorum 2. Welcome from the Chair 3. Approval of the Agenda 4. Approval of the Minutes from 2015 Annual General Meeting 5. Business Arising from Minutes of 2015 Annual General Meeting 6. Treasurer’s Report 7. Appointment of the Auditor 8. Appointment of Counsel 9. President’s Report 10. Report of the Nominating Committee 11. New Business 12. Acknowledgement of Long Term Members 13. Induction into the 50 Years of Trust Club 14. Adjournment

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

58th Annual General Meeting Wednesday, April 29 2015: 4:00 p.m.

The Derrick Golf ClubEdmonton, Alberta

Meeting Minutes1. Call to Order and Confirmation of Quorum

Chair Sherry Galan called the meeting to order at 4:00 p.m. She called upon Chris Lawrence, President to declare a quorum. The bylaws of BBB require a minimum of 15 members present for a quorum. Having seen that there were more than 15 members present, a quorum was declared.

2. Welcome Remarks Chair Sherry Galan welcomed all present and acknowledged Board Members in the audience.

3. Approval of the Agenda The agenda was provided in the AGM kit. MOTION: Ken Durrant/Jonathan Bunce “That the agenda be approved as presented.” Carried

4. Approval of the Minutes of the 2014 AGM The minutes from the 2014 Annual General Meeting were provided in the AGM kit. MOTION: Robert Dunlop/John Rennie “That the minutes of the 2014 Annual General Meeting be approved as presented.” Carried

5. Business Arising from the Minutes of the 2014 AGM There was no Business Arising from the 2014 AGM.

6. Treasurer’s Report A summary of the audited statements from fiscal year 2014 was included in the Annual Report. Treasurer Sherry Galan provided a report on fiscal year 2014. SVS Group, Chartered Accountants of Edmonton, Alberta, audited BBB’s financial statements. It was indicated that the full statements were available for review. MOTION: Ken Durrant/John Rennie “That the Audited Financial Statements for fiscal year 2014 be accepted as presented.” Carried

7. Appointment of Auditors MOTION: Robert Dunlop/John Rennie “That the firm of SVS Group LLP be appointed as auditors for the Better Business Bureau of Central and Northern Alberta for fiscal year 2015.” Carried

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2016 BBB Annual General Meeting

BBB - Reaching New Heights

8. Appointment of Counsel MOTION: Robert Dunlop/John Rennie “That the firm Field Law be appointed as legal counsel to Better Business Bureau of Central and Northern Alberta for the year 2015.” Carried

9. President’s Report The Annual Report for 2014 was included in the AGM kit. President Chris Lawrence provided brief highlights from the year and recognized the efforts of the Board and Staff.

10. Report of the Nominating Committee The Nominating Committee Report was attached to the agenda. Nominating Committee Chair Paul Wielens assumed the chair and provided an overview of the nominees.

The following were nominated as Directors of the Better Business Bureau of Central and Northern Alberta for the period starting April 29, 2015 and continuing to the Annual General Meeting in 2017: Ray Grenier Jeff Roberts Ken Durrant Kathy Schmidt Colin Kuefler Donna Wynn Stuart Neal Acting Chair Paul Wielens called three times for further nominations from the floor.

MOTION: Jonathan Bunce/Robert Dunlop “That Nominating Committee Report be accepted and nominations cease.” Carried

Chair Sherry Galan once again assumed the Chair and congratulated all the elected Board Members.

11. New Business a. Other New Business Items There were no additional New Business items.

12. Acknowledgement of Retiring Board Members Retiring Board Members Shawn Lazaruk and Paul Wielens were acknowledged.

13. Acknowledgement of Long Term Members Chair Sherry Galan presented long term member certificates to those members present who qualified.

14. Induction into the 50 Years of Trust Club The following companies were inducted into the 50 Years of Trust Club:

Done-Rite Floors Ltd Edmonton Chamber of Commerce NS Pawliuk & Sons Contracting Ltd

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

15. Adjournment MOTION: Paul Wielens/John Rennie “That the Better Business Bureau Annual General Meeting be adjourned at 4:25 p.m.” Carried

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2016 BBB Annual General Meeting

BBB - Reaching New Heights

Report of the Nominating Committee

1. Board of Director Status

Directors eligible for an additional 2 year term (expires 2018)

Robert Dunlop (served since 2014)Sherry Galan (served since 2010)John Rennie (served since 2014)Scarlett Wilson-Brown (served since 2012)

2. NominationsThe following are nominated as Directors of the Better Business Bureau of Central and Northern Alberta for the period starting April 28, 2016 and continuing to the Annual General Meeting in 2018.

Ed Croken Jeff McCammonRobert Dunlop John RennieSherry Galan Scarlett Wilson-BrownDave Martyshuk

3. Executive CommitteeThe Executive Committee will be elected at the June Board Meeting.

New DirectorsEd Croken, Investors Group IncDave Martyshuk, Martyshuk HousingJeff McCammon, Covers In Play Inc

4. New Nominees

Ed Croken, Investors Group

Dave Martyshuk, Martyshuk Housing

Jeff McCammon, Covers In Play Inc

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

Board of Directors 2015 - 2016

Executive Colin Kuefler, Chairman Johnson IncScarlett Wilson-Brown, Vice-Chair Empire Express Travel LtdSherry Galan, Treasurer Home Re-Use-Ables Chris Lawrence, President & CEO BBB of Central and Northern Alberta

Directors at LargeRobert Dunlop A Clark Roofing & Siding LPKen Durrant Funk’s Moving & StorageRay Grenier GP Promotional Products LtdStuart Neal Ambergate Advisors IncJohn Rennie JBR Inspections LtdJeff Roberts Wrenchmasters ProHolly Jones Alberta Carpet & Furnace CleaningKathy Schmidt Schmidt Realty GroupDonna Wynn Retire-at-Home Services

Legal CounselRick Pabst Field Law

BBB 2015 Annual ReportBBB serving Central and Northern Alberta, Lloydminster, Northeastern British

Columbia, Nunavut and the Northwest Territories

* Trade-mark of the Council of Better Business Bureaus used under license

truthful

transparent

respectful

trustworthy

responsive

honest

Your BBB - Reaching New Heights

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

Principles of Trust

Start with Trust - Establish and maintain a positive track record in the marketplace.

Advertise Honestly - Adhere to established standards of advertising and selling.

Tell the Truth - Reveal all related conditions or exceptions regarding products or services offered.

Be Transparent - Openly identify the nature, location and ownership of the business; clearly disclose all policies, guarantees and procedures that bear on a customer’s decision to buy.

Honour Promises - Abide by all written and verbal agreements.

Be Responsive - Address marketplace disputes quickly, respectfully and reasonably.

Embody Integrity - Approach all business dealings, marketplace transactions and commitments with integrity.

Safeguard Privacy - Protect any data collected against mishandling and fraud, and respect the preferences of customers regarding the use of their information.

BBB MissionBBB’s mission is to be the leader in advancing marketplace trust. BBB accomplishes this mission by:

Creating a community of trustworthy businesses,Setting standards for marketplace trust,Encouraging and supporting best practices,Celebrating marketplace role models, and;Denouncing substandard marketplace behavior.

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2015 BBB Annual Report

BBB - Reaching New Heights

Message from the CEOOur BBB enjoyed another stellar year. We continue to grow on all levels. We increased our number of Accredited Businesses, as we welcomed 882 new Accredited Businesses, and are now the largest BBB in Canada, even though we have a relatively small number of businesses in our territory. Our market penetration grew to 9.10% of all the businesses in our assigned territory which includes: Northeastern BC, Central and Northern Alberta, Lloydminster, Nunavut and the Northwest Territories. We have set an objective to grow our number of Accredited Businesses by twenty-five percent over years 2015 – 2017, and we are well on our way to our objective of 5156 Accredited Businesses by the end of 2017.

In terms of operational metrics, I am pleased to report that our BBB was the first one in North America, including the United States and Mexico, to meet all 70 Performance and Accountability Standards, which are audited by the Council of Better Business Bureaus. This is truly a testament to the excellence and dedication of our Board of Directors and Staff who are truly committed to our brand.

Financially we are in great shape, and the Board approved paying down the maximum allowable against our building mortgage. We exceed the required 60 days of reserves, and have shown an excess of revenues over expenses for the last three years – a required Performance and Accountability Standard. We have been able to maintain the fee structure for Accredited Businesses with no increases for the past three years, as a result of our success – which is in spite of the economic pressures that Alberta is facing.

In terms of new projects, our BBB initiated Customer Reviews which went live on February 2, 2015. Subsequently, the Board approved the introduction of a Star system which works in conjunction with our rating and customer review systems. For businesses for whom BBB has both a BBB rating and at least one customer review, the star score weights BBB’s rating 67 percent and the customer rating 33 percent to get the overall star score. The stars appear on goggle searches when searching for a business.

In 2015 from February to December, well over 1,000 Customer Reviews were submitted, and 988 were published, with the vast majority being positive for Accredited Businesses.

The Board also approved the introduction of the Scam Tracker program which appears on the homepage of our web-site. Almost immediately we received 38 scams, and to date have had 135 scams reported in our territory since the introduction of the program in December.

We also showed improvements in the following areas:• Days to Open Complaints (reduction of the time to open a complaint)• Investigations (almost doubled over last year)• Dynamic Seal Clicks (increased by 10%)• Visitors to Edmonton.bbb.org (increased to 1,811,324 from 1,173,848 in 2014)• Request-a-Quotes (increased to 16,519 from 12,962 in 2014)• E-northerner (readership increased to 31.85% from 28.74% in 2014)• Media Contacts (increased to 147 from 120 last year)

It has been my pleasure to be associated with this organization for over 15 years and I look forward to another successful year.

Respectfully submitted,

Chris LawrencePresident and CEO April 28, 2016

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

Accreditation Statistics 2015 2014

As of December 31 4,259 4,072

Website Statistics 2015 2014

Page Views 2,586,993 2,776,819 Visits 1,811,324 1,173,848 Unique Visitors 1,002,976 1,039,763

Complaint Statistics 2015 2014

Received (Opened) 3,271 3,826 Answered (Closed) 3,379 3,930 Accredited Business (Opened) 840 929 Accredited Business (Closed) 432 937

BBB - Reaching New Heights

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2015 BBB Annual Report

Satisfaction Index2015 2014

Accredited Businesses 100% 100% Non-Accredited Businesses 69.10% 63.66%

Total 84.55% 81.83%

Inquiries Statistics2015 2014

Accredited Businesses 629,526 695,722 Non-Accredited Businesses 742,563 730,370

Total 1,372,089 1,426,092

2015 Top 10 Complaints1. Furniture - Retail2. Auto Dealers - New Cars3. Home Builders4. Burglar Alarm Systems5. Utility Contractors6. Movers7. Auto Dealers - Used Cars8. Auto Repair & Service9. Roofing Contractors10. Plumbing Contractors

2015 Top 10 Inquiries1. Home Builders2. Roofing Contractors3. General Contractors4. Plumbing Contractors5. Movers6. Auto Repair & Service7. Landscape Contractors8. Auto Dealers - Used Cars9. Burglar Alarm Systems 10. Auto Dealers - New Cars

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Better Business Bureau of Central and Northern Alberta

BBB - Reaching New Heights

Financials 2015 2014 2013

Revenues $2,412,599 $2,354,837 $2,053,776Expenses $2,014,663 $1,971,144 $1,732,057

Loss on Disposal of Capital Assets ($0) ($352) ($2,819)

Excess Revenue (Expenses) $397,936 $383,341 $318,900

Balance SheetCash and Sundry Assets $1,205,672 $1,029,045 $733,652Restricted Cash: Ric Wrobel Memorial Award Fund $0 $0 $5,000Restricted Cash: Chase Paymentech $7,946 $6,313 $2,647Capital Assets $1,868,364 $1,771,235 $1,654,426

$3,081,982 $2,806,593 $2,395,725

Payable and Accruals $234,695 $233,837 $161,957Long Term Debt $703,097 $828,135 $871,154Lease Inducement - - -Total Liabilities $937,792 $1,061,972 $1,033,111

Net Assets $2,144,190 $1,744,621 $1,362,614

$3,081,982 $2,806,593 $2,395,725

Statement of Operations

0

500000

1000000

1500000

2000000

2500000

3000000

2015 2014 2013

Revenue Expenses

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2015 BBB Annual Report

BBB - Reaching New Heights

- - - - - - - - - - - - OVER 2.5 MILLION PAGEVIEWS

- - - - - - - - - - - - 1,610,649 BUSINESS REVIEWS READ

- - - - - - - - - - - - OVER 11,000 DYNAMIC SEAL CLICKS

- - - - - - - - - - - - 4,259 ACCREDITED BUSINESSES

- - - - - - - - - - - - OVER 3,000 COMPLAINTS

- - - - - - - - - - - - OVER 1,000 CUSTOMER REVIEWS

- - - - - - - - - - - - 147 REQUESTS FROM MEDIA

- - - - - - - - - - - - 47 INVESTIGATIONS

73%

1%

26%

AB Customer Reviews Submitted

Positive

Neutral

Negative

2015 Year in Review Your BBB - Reaching New Heights

34%

3%63%

Non-AB Customer Reviews Submitted

Positive

Neutral

Negative

Better Business Bureau of Central and Northern Alberta16102 100 AveEdmonton, AB T5P 0L3

Phone: 780.482.2341Fax: 780.482.1150Website: www.bbb.org/edmontonEmail: info@edmonton.bbb.org

Follow us on:

Facebook: facebook.com/BBBCentralandNorthernAlbertaTwitter: twitter.com/edmontonbbbYouTube: youtube.com/EdmontonBBB

Start with Trust