A Historical Perspective
First Two Years of Operations

   CORPORATE MISSION
The operations of the Corporation are guided by its mission statement:

The Revelstoke Community Forest Corporation will manage and operate its Tree Farm License in a manner that will enhance the forest resource while respecting the principles of integrated use, environmental stewardship and public consultation; providing the following community benefits on a sustainable basis:

  • revenue to sustain the Corporation and support the community
  • local control of resources
  • local processing
  • local employment
  • forestry training and education
  • outdoor recreational activities
  • a lasting relationship with the land that comprise TFL 56
   ORGANIZATION AND OPERATIONS


Figure 3. Organizational structure of the corporation

The Board of Directors is appointed by City Council and includes four appointees from a combination of City Council and city management staff and three members from the community at large. The Board is responsible for the overall operation and direction of the corporation. The Management Committee, which includes three representatives of the industry partners, two RCFC Directors and the General Manager of the corporation, provides advice on the operation and management of the TFL by reviewing management and operational plans and making recommendations to the Board. This committee enables the Board to access local forest industry knowledge and experience to ensure the corporation’s operating costs and policies are in keeping with industry standards.

During the initial four months of operation, the Economic Development Officer filled the role of the General Manager. This position was then filled by a Registered Professional Forester. Other full-time staff positions include a Controller, a Woodlands Supervisor and an Administrative Assistant. 
  

   COMMITMENT TO THE COMMUNITY
The corporation has implemented several policies and procedures to ensure the original commitments to the community are fulfilled in its day-to-day operations:
  
local employment
As much as possible, local contractors are hired rather than employing full-time staff for planning, road building, logging, hauling and silviculture services. Where feasible, the corporation coordinates its operations with its industry partners to provide employment stability for local contractors.
 
timber available to local processors
The unique partnership between RCFC and its industry partners ensures that at least 50 per cent of the timber harvested from TFL 56 is processed in Revelstoke. In addition, RCFC operates a log sort yard to implement the requirement in the license agreement that the remaining timber be sold to the highest bidder through open sales. During the 1993/94 operating year, 27 per cent of the timber sold at this yard went to local processors. In 1994/95, this figure rose to 55 per cent of sales.
 
local suppliers
As much as possible, the corporation purchases supplies from local sources. In the 1993/94 fiscal year it is estimated that $1.3 million was spent locally, with $4.6 million spent during the 1994/95 year.
 
minimize financial risk
The corporation has a commitment to reserve $1 to 1.25 million which will be available to stabilize operations in the event of a prolonged economic downturn or to maintain operations in case of a fire, natural disaster or other unforeseen major disruption. Once the reserve is established, it is planned that revenue excess of operating expenses will accrue directly to the City.
 
return on investment
The City realizes a minimum annual dividend at the average of the prime interest rate for the fiscal year plus one per cent for its $1 million investment. This ensures that, at a minimum, the City receives a reasonable return on its investment.
 
training
Supporting the development of a local, skilled forestry labour force is an important goal of the corporation. Initially the corporation developed the concept of a Forestry Training Centre to provide on-going forest sector skill and knowledge upgrading to local citizens. This concept has been advanced through the establishment of the Community Skills Centre in partnership with the province of BC.

During the past year, RCFC sponsored a Forestry Worker Development Program in conjunction with the Ministry of Social Services and the Ministry of Forests. This project resulted in the establishment of a local silviculture contracting business which was financed in part by the Community Loan Fund operated by Revelstoke Community Futures.
 
public information
During the 1 980s, the City of Revelstoke repeatedly advocated increased involvement of local citizens in the planning and management of local forests. RCFC has begun to encourage increased involvement through regular newspaper articles and advertisements about its operations as well as by issuing an annual report to citizens and holding an annual general meeting in the community. Now that the organization of the corporation and its finances are more secure, the Board will be involving the community in a strategic planning process being initiated this year.
   EARLY PERFORMANCE
During the first two years of operation the focus has been on the essential tasks of getting a forestry corporation up and running. The following table details the forestry accomplishments during these early years.
  
Summary of Forestry Accomplishments to Date
Activity19941995
Road construction (kilometres)020
Harvesting (cubic metres)103,43484,314
Site preparation by burning (hectares)59266
Planting (hectares)13395
Manual brushing (hectares)154165
Herbicide brushing (hectares)018
Reforestation surveys (hectares)1,4631,996
Pruning (hectares)030

Of primary importance, a substantial road construction program was required to access timber for harvesting. Harvesting has been constrained during some periods because of restricted road access. A significant road construction program remains to be completed to ensure stable operations for the corporation in the future.

When the TFL was acquired, most previously logged cutblocks had been successfully reforested, making it relatively straightforward to establish an operational silviculture program on the TFL.

High log prices, particularly for quality spruce sawlogs, produced unexpected revenues for the corporation in its first years of operations. Table 2 provides a summary of financial performance to date. A total profit of $1,341,114 has been achieved to date, with dividends of $164,766 issued to the City. As well, the $1 million short-term loan has been repaid.

Summary of Financial Accomplishments to Date

Year-end Statements (as of April 30)

19941995
Revenue (including interest income)$5,976,995$7,227,105
Operating costs$5,630,212$6,232,774
Profit$346,783$994,331
Dividend to City$74,166$90,600
   EARLY CHALLENGES
Implementing the community’s vision of a profitable, environmentally sensitive community forest corporation has been more challenging than anticipated due to several situations:
  
road development
TFL 56 is in a very rugged, mountainous area with steep, forested valley walls rising to rocky peaks, snowfields and glaciers. The main valley bottoms were developed and logged by Westar in recent years so a good main road system exists. However, a substantial network of branch roads needed to be built in steep country with sensitive soils where extensive and costly engineering and construction is required. Heavy rains and deep snowfalls add to the physical difficulties of road
construction and maintenance in the area. These regular challenges were exacerbated during 1995 by abnormally wet summer weather. Development and implementation of new road requirements consistent with the Forest Practices Code further delayed road construction approvals and completion.
 
harvesting approvals
As with the rest of the timber industry, RCFC experienced difficulties in obtaining approval of harvesting plans as government agencies incorporated the developing requirements of the Forest Practices Code. These difficulties created a particular challenge for RCFC’s operations because of the limited area of accessed timber.
 
land-use planning
In developing the agreement with Evans Forest Products Ltd. to split the previous TFL, the City purposely chose to purchase harvesting rights to the area with the widest range of forest values. In addition to its timber values, the area within TFL 56 is used by the residents of Revelstoke and tourists for outdoor recreation, heli-skiing and hiking (one of the premier backcountry lodges is located in the area), hunting, fishing, guiding, trapping, and mining. The TFL also includes important wildlife habitat for grizzly bears and mountain caribou. Its close proximity to two national parks further increases expectations for sensitive timber management practices.

Since the corporation was created, RCFC staff and Directors have participated in the Kootenay-Boundary land-use planning process under the Commission on Resources and Environment. During the process, a substantial portion of TFL 56 was considered for protected area status where timber harvesting would not be permitted. In November, 1994, the Commission on Resources and Environment issued its report recommending a substantial amount of the operable timber harvesting land base in the TFL be classified as a special management area where limited timber harvesting would be permitted.

The community of Revelstoke loudly rejected this report and demanded an opportunity to develop a ‘made in Revelstoke’ plan. The City created a Negotiating Committee including one RCFC Director as a member and a City Councilor as an ex-officio member, to accomplish this task. This committee developed an alternative plan which restricted special management status to a smaller portion of the land base. This plan was accepted by government in its land use plan for the Kootenay-Boundary area announced in March, 1995. The plan called for the establishment of a Community Resources Board or an interim committee in Revelstoke to oversee the implementation of the plan.

RCFC Directors, City Council and city staff expect to continue to be heavily involved in the implementation of this plan.

  
[Table of Contents] [Introduction] [Background
[Opportunity is Created] [From Opportunity to Reality
[First Two Years of Operations] [Current Challenges
[Further Information] [Appendix]

 

P.O. Box 3199
Revelstoke BC Canada V0E 2S0
Phone: (250) 837-5733
Fax: (250) 837-5988
Email: info@rcfc.bc.ca

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