Harriet explained the cost of special projects is not going to be an on-going occurrence – if more is needed, we will need it to balance the shortfall but that will not be until next year if at all.
Recap of P&L
Everyone is up to date for Fees and Property Tax.
Special Projects are paid up by everyone but 5 parties, one of which has submitted a payment plan which has been approved by the Board of Directors. Please pay now if owing – or propose written payment plan. If any outstanding by 15 Sept we will look at late payment penalties.
Cassius will be invoiced for their share in the Dock expenditures, they have been informed and once we know how much their shares come to.
Foreshore lease has been renewed for 6 years from 2018 – expiry Jan 2024.
Dock issues discussed in detail by Harriet, issues explained with Ministries. See updates.
Taxes: Refunds available if requested by Sept 15, 2022, otherwise it will be a credit for next year.
Income taxes will be done by KPMG going forward.
Motion of adopting April 30th year end going forward.
Katja second
Carried.
Katja has to balance the last 10 years and create proper Balance Sheets before we can file.
We are hoping CRA will accept filings going back 10 years rather than 30 yrs.
Sewer: Manifolds decided to put on back burner at this time as it is not a requirement by Ministry but a recommendation by “ClearTech” who is the Sewer advising company we have used.
The other items for sewer project will be done as they are requirements imposed by Ministries
Water Intake has proven to be okay as is – had diver go down and take a look and everything looks like it is in good shape.
Sand filter installation is proposed to assist with keeping sand out of pumps – a lot cheaper than moving intake.
Evie’s Security Contract –
Harriet proposed to renew security contract –
Jeff second
Motion moved
Evie’s and Jerry’s Lawn Mowing contract:
Proposal: increase by $500 due to increase in price of gas, inflation to Total $4000
Second by Jennifer
No objections – motion carried
Evie drives into Barriere every Monday to deliver water samples for 6 months of the year.
Proposal: compensation of $0.25/km for 24 weeks – payment to Evie of $400 for the year.
Marie Hewson second
No objections – Motion carried
Projects for the coming year – consideration of adoption of Strata, dock rules and continuation of current issues.
8New business – Forward notice of resolutions to be considered in the future:
Strata concepts/Management Plan
Bylaws update
Election of Directors :
Thanking Pat Gunn for her service.
Nomination: Jill Kalinocka
Introduction of Jill
No other nominations –
Voted in by acclamation
Meeting adjourned 10:49 am
DOCK MEETING:
11:05 am start
Q: Should we still collect the $100/dock slip for this year?
Voted 28 out of 44
Motion carried.
Question from Rick:
If New Wave Dock company comes out to assess overall maintenance – can we request the report and also indication what type of bolts, etc are recommended. YES – absolutely
Pilings:
Motion: Do you want to install Pilings in water at 0.8m depth for 6 boat slips that Ministry is requiring?
No Hands
We need 9 more slips – 6 to replace the ones that Ministry is rejecting in low water and add slips for people who should have slips with their lots but do not.
Harriet Explains why the Ministry is coming down on us with the Section 11 .
If we would have applied for the Section 11 when Dock was replaced these shortfalls of the dock would have been founds and rectified at the design stage of new dock.
It is 7 months since most of us joined the Board of Directors and it has been a busy time. We have been working to clarify the issues the resort is facing, how those might best be resolved, and the costs of doing so.
We are calling a shareholders’ meeting on 24 April 2022 at 11am to discuss the way forward and our aim is for you to have notice and information in advance so that we can be as efficient as possible at that meeting.
It has been raised that the AGM should take place on May long weekend. For the past two years, this has been pushed to August due to Covid. We would like to push it to August for one more year to enable us to deal with these pressing issues below now and then hold the AGM (and update you as to progress) in August. There is too much to get through it all in one meeting in May.
We now need to agree the shareholder financial contributions for the coming year.
Apologies for the length of what follows. We suggest you grab a drink, settle down and please try and make it to the end!
Issues to be resolved:
Foreshore Lease renewal
You have all received our update emails and posts on the website so I won’t repeat the issues here. In terms of where we have got to:
Land Survey Report. That has been carried out and is with the Ministry for approval. The issue was whether the lake front properties had encroached on Crown land. The findings are that Burke’s (now Gord and Jill’s) property encroaches by between 1.1 and 1.8m.
The rest of the properties will hopefully be approved by the ministry and if so, it is thanks to Darrin’s powers of persuasion. We are waiting for confirmation however before we relax too much.
Hydrodynamic report: Following shareholder approval, this has been instructed and we hope will progress in the next month or so. It is to reassure the ministry that our dock is not disturbing fish habitat and water flows from the creek.
Burke and Brad’s dock: Burke tells us that the houseboat will be gone this week. A mechanic is out to it on Weds, 23 March.
Before the dock can be removed, we need ministry approval for the works to be done outside the approved window. That has been requested and is awaited.
In passing, when Burke sold the house to Gord and Jill Hotchkiss, he remained responsible for the houseboat and the dock (along with Brad re the dock). Welcome to Gord and Jill and thanks for all their help in moving this forward.
Once the houseboat and dock are removed and boundaries are in compliance, we hope that the hydrodynamic report will clear the way for the ministry to permit our new boom to be installed and a foreshore lease to be renewed for the next 10 years.
The Dock:
We anticipate that some members may wonder why all shareholders are bearing the cost of this foreshore renewal regardless of whether they have a boat slip. The view of the board is that access to the water and the presence of the dock is a central part of the resort and the value of all properties.
It is the board’s intention that over time, each lot should have the opportunity of a boat slip on the dock if they want one. Limit of one slip per lot. If you do not have one and want one, please let us know for our forward planning. It may take some time to accomplish given the system we have inherited but that is our aim in the longer term.
We will also be looking at the cost of the slips. At the moment, they are all charged an equal annual fee, regardless of size. That would seem unfair particularly when limited space means there are some who do not have a slip.
Also, we appear to have a problem with the positioning of some larger boats as they are concerns around the strain on the dock of larger boats being nearest the boom in stormy weather. We may in due course, need to seek approval to make some adjustments to placements to ensure the safety and maintenance of the dock for all.
In the meantime, the dock has suffered considerable storm damage this winter. We need to replace around 36 bolts holding fingers to the main dock, a bracket holding the piling to the dock has sheared off and the old boom has almost entirely come apart. The concern is why and whether the chains holding it in place have been sunk. A diving company is out this next week to assess the situation. Costings for this issue are currently very uncertain.
Repairs are being done urgently (Darrin will update at the meeting) but PLEASE DO NOT launch your boat to the dock until those are complete. The existing finger bolts will probably not take the additional weight of boats in a storm until the bolts are secured.
Water intake:
You all know that water for the resort is pumped from the lake. A concern is that once Brad and Burke’s dock is taken out, the barrier it provides between us and the sand bar/creek will also be removed. The water intake pipe currently runs from in front of the pump house out to the corner of the dock boom near the marina entrance.
Once more sand is being moved by the creek, it is anticipated that the issues we currently have with the pump house being silted up by sand, may become considerably worse.
I have sought costings therefore, to install a new water intake away from its current location to the other corner of the boom nearest the public launch. There it will be bedded on stone rather than sand and will hopefully be further removed from the creek’s effect.
McCaskills are coming out this week to assess this and firm up costs below.
Property Taxes:
The BC Assessment of value came in for 2022. Jeff has worked his usual magic and has done the calculations for 2022 property taxes with an adjustment for 2021 over or under payments. The overall tax bill has gone down from $35,000 in 2021 to $30,000 in 2022.
Copy of Jeff’s calculation for 2022 is attached and will give you an idea for budgeting purposes. The 2021 calculation is also attached for comparison. As is the case every year, the actual taxes will not arrive until May.
Corporate Taxes:
It was with dismay that we learned that the resort has never filed a company tax return. I understand that there was a belief that if the resort did not make a profit, then it did not need to file CRA tax returns. This is incorrect. The law is clear that every corporation (even non-profits) must file an annual T2 return.
I have been in discussion with a contact at KPMG about being appointed the resort’s accountants for this annual requirement. We have discussed making a voluntary disclosure to the CRA and seeking to agree that we will file retrospective returns for the last 10 years as opposed to the last 30 years! The estimated cost for each return is $750 plus tax. The indications are that as no profit is made, there is no tax and if we make a voluntary disclosure before we are found, the CRA will not levy penalties for late filing.
However, there is one other issue. Companies with assets of over $200,000 also have to file a T1044 return. The question arises as to whether us holding shares in the company means that the company technically owns the resort as a whole (worth a lot more than $200K) in which case the T1044 would also be due.
The late filing penalty for T1044 is $2,500 per year!! We are some 30 years overdue!
I have discussed with KPMG that my preferred approach would be to not file T1044’s and if questioned by the CRA, argue that although we hold shares in the company, our shareholder’s agreement giving us rights to our individual lots effectively means that we each own the beneficial interest in our lots rather than the company owning it. Beneficial interest should be sufficient to remove the asset value from the company.
I cannot guarantee that this will be accepted by the CRA but I think it has sufficient legal precedent to make it a viable position. KPMG agrees so far!
Sewer Project:
I have carried out a review of the paperwork on this and can identify the following areas which need completing in order to finish this long running project.
As previously stated, the aim of the project is twofold:
General system not coping as resort develops;
Ministry of Environment compliance requirements.
System efficiency:
Cleartech Consulting advised reducing the load on the general system by installing separate septic tanks for cabins. This works by leaving sludge in separate tanks and only passing water into general system. 8 out of 11 of these tanks have been installed.
The three left to install are Harriet, Gord/Jill and Brad. Burke had said he doesn’t want one because of siting issues. Gord has said he would.
Longer term, we need to review whether the current general system can cope if three extra tanks are installed. If not, then an extra tank will need to be installed in the trailer section. Issue is tank sites cannot be driven over and trailer lots are smaller. Volunteers would be sought for location of extra tank if needed.
Ministry of Environment compliance required:
Cleartech Consulting recommended:
Installation of 3 monitoring wells – 2 quotes were obtained and Ryan Pallard’s firm, Metro testing was most competitive. Wells installed in 2020 at a cost of $12.5k.
Metrotesting carries out quarterly testing of system and annual reporting. Cost of $3k per year. However, we have just been notified that that cost will increase fourfold as Ryan is leaving Metro. Alternative quotes are being sought.
Outstanding compliance issues:
4 observation ports required for each drainage field. 8 in total. McCaskell have estimated.
Drainage fields cannot have animals grazing or heavy machinery cutting. We need to speak to the Andersons to agree fencing. Quote needed for post and wire fence around drainage field. 150-200 metres of fence. Wooden posts/steel stakes with wire should suffice.
Flow rate meter needed to comply with monthly summer reporting requirements.
Pressure manifold needed to even up flow into each drainage field. Est cost $12k incl design.
There are some other issues which have been discussed. Sand filter, improvements to the pump house beyond the water intake, fire fighting equipment and TNRD zoning issues. The board is currently at capacity dealing with the above urgent issues and so these other matters are currently taking a back seat. They will be addressed as soon as we can get to them.
Thank you for making it this far!
Unfortunately, the world has become highly regulated and the government more proactive. The days of the resort bobbing along on an informal basis are sadly, over. The various ministries have us in their sights and if we are not careful, the CRA will too.
Inevitably, there are costs associated with all this. We have done our level best to identify those and obtain costings. Below is a table of our best estimate of what it means for each shareholder. Please be clear that we have only been able to get estimates. The picture evolves constantly so revisions are inevitable. This is our best shot with the information we currently have.
We appreciate that finding additional funds will not be easy for many members. We accept that we may need to make priorities or consider payment plans.
Please be aware, however, that this has been (and will be) an enormous amount of work for each of your directors on top of their day jobs and family commitments. The longer we pan it out for, the longer that effort continues. The regulatory clock is also ticking.
The directors’ aim is to bring the resort into modern management and to improve communication with the members. There is no sense dwelling on how we got here. We hope that you will recognize our efforts and intentions and get behind the board in getting the resort to where it needs to go.
To the extent we can, therefore, we would like to raise the funds needed to bring the resort into compliance as soon as we can and to set up its forward management in an organized and efficient way, so that we can all go back to enjoying our little piece of paradise!
Thank you. Please scroll down for costings.
Estimated costings for 2022:
Property Tax for 2022 – please see Jeff’s assessment attached.
Regular Maintenance contribution – $725 per share. This is calculated as to
$35,000 expenditure (excl property tax) in the 10 months to March 2022 – see income account attached.
Applied as to 12 months = $42,000
$725 per share
Special Projects Estimate – $1,500 per share – see below
Special Project
Next Steps
Estimated costings
Foreshore Lease
Land Survey
$4,600
Hydrodynamic Survey
$10,000
Water intake
Initial survey Very rough ball park if all as Anticipated
$900 $10,000
Corporate Taxes
$750 plus tax per T2 x 10 years
$7,500
Sewer Project
8 Observation ports
$3,500 – $4,000
Fencing to drainage fields Estimate 150-200 m of wooden posts/steel stakes with wire
?? Any offers to obtain quotes or do work with materials?
Flow rate meter
$1,000
Pressure Manifold and design
$12,500
Two 1200 litre septic tanks
$15,000 x 2
One 900 litre septic tank
$10,000
Dock Repair
Piling bracket – replace and a spare Replace bolts Boom
1. You all know about the foreshore lease is needing renewal. This has involved the Ministry turning the spotlight on us and a more thorough review of everything to do with our docks and use of water.
2. The ministry did its review and below in this communication at the bottom in red is from the Ministry which sets out their immediate requirements.
They are requiring action.
a. the removal of two private docks.
b. the removal of the boom replacements with yellow separators by the shore.
c. A hydrodynamic survey of the resort’s dock
(which is needed before they decide about the use of our new boom) and
d. A land survey to see if any of the frontage properties have crept over foreshore lines.
In order to do the works in a. and b. above, we had to submit a Section 11 approval application. That was asking permission to do these works and it gets passed to various other departments for approval. Katja and I did that on 11 Dec and then had to amend it on 21 Dec.
We got approval for it on 4 Jan.
The Section 11 approval notice was received on 4 Jan, we are only allowed to do works within a certain time frame. For Adams Lake that is 15 July to 30 September to avoid spawning times. I spoke to Ryan Whitehouse today who wrote the approval letter to ask him about these time frames.
He told me that if I email him with details of how the docks will be removed and that low water work will minimise the need for heavy machinery in the water, he will probably approve the removal works to be done outside this window.
Please don’t do anything until we have the approvals. We are trying to get collective approval for all of it at the same time. We will share all the information as soon as we can.
Ministry Items:
The first items that we would put in the Management plan for immediate action would be:Submit an application for authorization under Section 11 of the WSA to remove the unauthorized dock and the booms/breakwater floats that are currently grounding out at the shore’s edge
Have a qualified environmental professional submit a Hydrodynamic Assessment for the main dock structure. The EnvironmentalAssessment that was conducted on the main dock does
Hire a legal surveyor to establish the strata property line/present boundary
Current bank balances are $47,000 and $3,000 between two RBC accounts
Agreed, that Pat will input into her software program, the account for the last 2 financial years from Karen Alexander’s spreadsheets
4. Insurance
Resort renewal has been agreed. Insurance agent has been to resort to review on site and has included the third electrical housing by the Hewsons. Coverage limits have been increased to reflect build costs to bridge and pump house and by natural inflation.
Post meeting note: Premium roughly $800 higher than last year due to increased coverage from $5.4K to $6.2K
5. Dock Boom:
Jen and Travis marked up the 6 chains to the anchors on the book
Another work party for the boom to be scheduled:
Replace boom sections from marina entrance towards public launch
No plan at the moment to use yellow sections along ede of boom nearest public launch- though best available logs will replace existing where needed.
Cost around $5K so far. Log are chains by mill. Happy for us to take what we find on the lake.
6. Bridge heat/lights
Planned for 24 September 2021.
Jerry Turko lending his trencher
Jeff is lending his cabin to his son, Brad and his friend Trevor who is electrician and they will help Evie dig cables in from pump house to bridge.
Trevor will connect up electrics.
Spencer Pallard assisting.
Costs estimated to be materials only – around $300-400. Labour all donated
Post meeting note: – work completed 24 September 2021. Many thanks to all those involved.
7. Pump House
Katja met with Evie and Nate who looks after similar system in Sun Peaks. No cost to his visit.
Nate concluded system set up well and like that in Sun Peaks resort.
As resort grows and weather systems change, possible suggestions:
Replace a pump with larger to assist existing.
Upgrade would be needed to increase from 1” to 2” pipework,
Add a new UV filter
Darrin asked about a sand filter. Nate felt not necessary, but you could clear out the intake with the use of a diver.
We could hive off the irrigation to a separate pump – but would need new generator and housing for it. Is the benefit worth the expenseGeneral advice:
Filters need to be changed frequently.
Evie to be asked to keep a log of actions taken in the pump house.
Chlorine could be changed to an on-demand basis.
Agreed Katja would try to get some ballpark costs to these.
Post meeting notes: Evie confirmed there is a log in pump hour and all actions are completed.
Evie’s thought after that meeting was whether we move the intake from the corner of the dock nearest the creek (massive sand movement) to the corner of the dock boom nearest public launch which is on rock and furthest from sand movement. Harriet to speak to Katja (refer to Nate?) and re costings
8. Sewer Project
Aim of the project: twofold:
General system not coping as resort develops
Ministry of Environment compliance Requirements
System efficiency:
Cleartech Consulting advised reducing the load on the general system by installing separate septic tanks for cabins. This works by leaving sludge in separate tanks and only passing water into general system. 8 out of 11 of these tanks have been installed.
The three left to install are Harriet, Burk and Brad. Burk does not want one. Harriet is costing hers and Brads.
Proposal is to see if general system can cope with 2 extra tanks installed.
If not, then an extra tank will need to be installed in trailer section. Issue is tank sites cannot be driven over and trailer lots are smaller. Volunteers would be sought for location of extra tank if needed.
Ministry of Environment compliance:
Cleartech Consulting recommended:
Installation of 3 monitoring wells – 2 quotes obtained and Ryan Pallard’s firm, Metro testing was most competitive. Wells installed in 2020 at a cost of $12.5k.
Metrotesting carries out quarterly testing of system and annual reporting. Cost of $3k pa.
Outstanding compliance issues:
4 observation ports required for each drainage field. 8 in total. McCaskell to quote.
Drainage fields cannot have animals grazing or heavy machinery cutting. Need to speak to Andersons to agree fencing. Quote needed for post and wire fence around drainage field.
Flow rate meter needed to comply with monthly summer reporting requirements. Harriet waiting for quote from McCaskell’s.
Pressure manifold needed to even up flow into each drainage field. Est cost $12k incl design.
Harriet to report once quotes in from McCaskell and we know budget from bank balance to seek approval from shareholders to complete this project.
The electrical line was installed last week from the pump house to the bridge to power the heat tape. Thank you to Evie for organizing the project and reaching out to Jerry Turko for the use of his trencher.
Ryan, Brad and their electrician friend got the wire laid and connected and working. The project hard costs were for materials only. Jeff has kindly provided his cabin to Trevor for a hunting trip for his labour.
Common Area Sprinklers
Sprinklers have been blown out for the year!
Thank you to Evie, Brad and Mike for organizing the rental and doing the work.
As a shareholder community organization, Agate Bay Resort is governed by a board elected by its members.
Over the years there have been long-time board members that have brought critical leadership to the resort’s management and initiatives. As the new board, we hope to take the torch and continue with the great work done.
The new Board of Directors was nominated by the shareholders on August 1st, 2021, AGM at Agate Bay Resort.
As the new board, we would be remiss if we didn’t thank the outgoing board members for all the personal time and resources, they have put forth to govern the resort. We are truly grateful for their contributions and dedication to Agate Bay Resort.
Our first official meeting will be in September
FAREWELL:
Jeff van Haastregt – most recently served as President for 26 years
Helen McKellar – most recently served as Secretary for 4 years
Karen Alexander most recently served as Treasurer for 1 year
Trevor Douglas – most recently served as Director for 16 years
WELCOME
Welcome to the four new board members, along with Darrin Berglund as a re-elected member. We are grateful and excited to join the board and bring our talents, expertise, and perspectives to the resort.
AGATE BAY RESORTS LTD ANNUAL GENERAL MEETING OF AUGUST 1, 2021
This year’s meeting took place at the playground: started at 10:07am. The following people were in attendance: Anita Barlow, Scott Barlow, Jeff and Wendy Van Haastregt, Ryan Spencer, John and Nelda Orton, Bob Kirschner and Evie Smith, Harriet Burge, Bradley Matthews and Katherine Bugera, Bill and Maria Hewson, Jennifer McKinney, Bonnie Roberts, Dean and Katja Roberts, Doug and Helen Galuska, Louis and April Dagdick, Paul King, Bob and Margo Wipf, Peter King, Stephen and Amelia Ringdal, Madeline Galuska, David and Jane King, Rick and Karen Alexander, Trevor and Angie Douglas, David and Pat Gunn, Mike and Helen McKellar, Rick and Karen Borys, Harold Hutching and Diane Arnott, Darrin Berglund, Rob and Joyce Buchanan, Jerry and Sheryl Turko Introduction and opening remarks made by the President, Jeff van Haastregt. Bob and Margo Wipf of Lot 3 were welcomed.
The minutes from 2020 AGM were adopted as read, moved and carried. Business arising from the minutes: Louis Dagdick ’s proposal for amendments to his site were tabled as there was incomplete information to move forward. Louis has stated that he has withdrawn his request. Will be discussed with new board of directors.
Correspondence: Will be moved to New Business regarding TNRD, water systems, buried wires by foot bridge. Directors Reports: Financial Report: Treasurer Karen Alexander All 2021 taxes and assessments have been collected. Frank Lapka has paid his taxes and assessments but not the fine of $1000.00 for late payment of his fees and taxes. Copies of the 2020-2021 Financial Report were distributed. The Resort is operating on the 2019 budget due to disruption from Covid 19. The assessment fee is $350.00 for our fiscal year. Sewer Project Report: Director at Large Trevor Douglas Trevor suggested that the Resort would need more money in the fall to continue with the sewer upgrades. Ryan Pallard has taken charge of overseeing the sewer project with the Ministry of Environment. Trevor suggested that all the sewer tanks for the cabins be installed either this fall or early next spring. Trevor stated that the project is @ 25% completed. Each cabin is to have one tank and two RV lots will be sharing a tank. Motion was made for a progress report from the sewer project engineers and an accounting of monies spent from MacCaskills . Shareholders are also requesting that a plan be formulated and distributed to the shareholders. Sewer pumps seem to be working well. The tanks are being vacuumed quarterly. Water system report: Evie Smith Water line under the walking bridge froze this past winter. The heat tape was not turned on. MacCaskill repaired the broken line. A water pump in the pump house seized in June. Pump was replaced by MacCaskills. New pump malfunctioned after two weeks. It was subsequently repaired. It was agreed to supply two fire extinguishers to the pump house. Water sampling is done on a regular basis by Evie.
New Business
Contract for Security and Maintenance of common areas to continue. Bev Anderson will no longer be doing security. Evie Smith will take on this position. Evie will also continue the lawn maintenance.
Harriet spoke to her research on TNRD C-4 zoning regarding Agate Bay Resorts and will continue her work on this matter. John Orton will work with Harriet.
Discussion on upgrading the water system.
Power supply to water line across walking bridge needs to be fixed Motion: The directors will work to improve communications to shareholders with regular information updates as seen necessary by directors and committees, as well as quarterly meetings if required for specific projects. Carried Bylaw Amendments; 5.5 amendment was defeated in a poll vote. 6.1.1 amendment was defeated in a poll vote. Motion to destroy ballots. Seconded by Anita Barlow Election of Officers: Helen McKellar has decided to step down as director. Karen Alexander has decided to step down as director. Jeff van Haastregt has decided to step down as director. Nominations : John Orton nominated Jennifer McKinney Trevor Douglas nominated Pat Gunn Maria Hewson nominated Harriet Burge Harriet Burge nominated Katja Dean Results: Jennifer McKinney Pat Gunn Harriet Burge Katja Dean Darrin Berglund Jennifer McKinney indicated that she and Travis Van Mol would like to build a cabin on their M1 RV lot. Jennifer will have an Environmental Assessment done on M1 at their expense, to see if building on their site is permissible. Demonstration by Ryan Pallard on how to use water pump for fire suppression. Instruction on how to use the pump will be written, laminated and attached to pump. Meeting adjourned at 1:03 Dock Meeting to follow at 1:30
