Signant Two Holdings Ltd.

Minutes of 2018 Annual General Meeting

October 28, 2018

Lunch @ noon; Meeting 12:50

Sheila’s Castle

MINUTES

Call to order

Meeting called to order by Sheila at 1:13,

Vic moves to approve agenda, Sharyn seconds, all in favour

Proxies 

Proxies for Carson and Brenna from 2015 are in effect until further notice.

Length of meeting

Decision regarding length of meeting

Sheila proposes 90 minutes, Duane approves

Motion to approve the agenda

Vic proposes removing ‘-clearing out of remains of old dock cribbings from lake (great thanks to several families)’ from section 6

Minutes of previous meeting, Signant Two AGM Nov. 18, 2017

Title of the document amended from ‘2016 AGM’ to ‘2017 AGM’, Sheila moves to accept as amended, Duane seconds, all in favour

Bank Account Balance Update

(Sheila – Message from Jennifer that account is low, although second installment on Annual Assessment expected from several family blocks, shortly)

Sheila contacted Jennifer to assess the bank account balance, which is quite low (on the order of $800). Jennifer stated that the November payments will yield$4,875 for a total of $5,675.

Matters arising from previous meeting (previous AGM)

Discussion and Prioritizing of Project Options Which Require Funds

Utility Room: Cabin Winterizing Procedures update and recommendation that insulation of utility room become a priority so that water can be left on all winter with thermostat at low temperature and, in turn, outdoor underground valve does not need to be turned off or on, risking breakage. (Sheila)

Sheila notes the water valve is from 1967 and worries it is at risk of braking, which could potentially undermine the cabin. Proposes we consider winterizing the space beneath the cabin and leaving the heat on over the winter.

Vic notes there are maintenance costs associated with the cabin and regardless of whether we insulate under the cabin the water valve will need to be replaced eventually. Insulating the area under the cabin will also be problematic as it renders the area more hospitable to ants. Vic had to replace his water valve at home recently, which was a substantial expense. He notes that when we recently replaced the shingles on the cabin and boat house roofs there was rot underneath so there is likely a need to conduct repairs in a more timely manner before things break. We had the money to replace the shingles through the reserve, which will be replenished in time.

Duane notes it’s not a good feeling when you go to turn something on and it might break so the repair should be done. The insulation should happen after we have a foundation in place so the ants don’t migrate into the crawlspace. He is also in favour of replacing the valve and trying this during the easter work bee.

Ant Control

Update/observations. Vic reported a huge number of dead ants found under carpet removed from ensuite. Is fumigation required again?

Vic notes the ants under the carpet in the ensuite were alive. He worries we may have a substantial problem under the carpets in the cabin in general. He discovered the hose on the hot water tank was leaking and the carpet under the leak was crawling with ants. He thinks fumigation won’t be enough and wants to lift the carpets in the back bedrooms and put down laminate flooring. He wonders whether we should do the whole cabin at once. He also notes the carpet in the cabin is old and likely dirty and unhygienic. He suggests we should plan on doing a work bee around Easter to get started on ripping up the carpet. We could have fumigation done at the end of the work bee.

Duane notes we may have to do this in stages, potentially prioritizing the bedrooms over the main cabin area. He wonders how much we would be able to do this year in terms of labour and cost?

Cody wonders whether we should address the issue of how the ants are getting into the cabin?

Vic notes we need to keep the back of the cabin (outside) free of dirt to limit access. He suggests we need a more concerted effort to spread powder and put down traps and notes the boathouse is also an issue. He thinks this will be a continual battle, and asks whether we want to do more than just rip up the carpet.

Melanie asks whether there is something we could put down after we’ve ripped up the carpet and before we put down the flooring to keep the ants at bay.

Duane notes we can use this opportunity to fill in the holes in the floor to block their passage. He suggests we move this topic into the easter work bee discussion and come to a consensus on priorities for the upcoming year. He notes it should be feasible to remove and replace the carpet in the three bedrooms this year and estimates the cost at $400-$500 per room (he can watch to see if laminate goes on sale at Costco) plus labour.

Vic notes the job would be easier if we had access to a pickup truck to haul the old carpet to the dump. Given Brian has hauled multiple loads of refuse from the cabin to the dump, Vic suggests paying gas money or a gift card every time Brian does this.

Duane suggests we should be looking into getting a trailer we could hook up to our vehicles to do some of this hauling ourselves. He notes we are reliant on Bryan now, which may not be sustainable over the long term.

Sheila notes she likes the idea of getting fumigation done after the carpets are ripped up so we can assess the state of the cabin.

Duane proposes we rip up the carpet this year and then put flooring down in the future given we could live with plywood for one year.

Carpets and Laminate Flooring

Addressed in previous item

Dock

Review of Dock Committee Report sent prior to meeting, followed by discussion of options

Sheila sent out a report summarizing the learnings of the dock committee. The committee had to have a survey conducted to determine the present natural boundary (high water mark) which delineates our land from crown land and determines how much of the boat ramp would have to be taken out given we can have a dock or a boat ramp, but not both. It appears we would have to take out 1 ½ sections of the boat ramp.

Vic has requested two quotes for removal of old dock/boat lift/boat ramp and dock building for insurance purposes. Quotes for dock building varied substantially, and the quotes were not generated based on knowledge of how much of the boat ramp would need to be removed. A quote of $36,000 is on the generous end, however there are other options which we have not explored. It would be possible to get a quote for the driving of the piles and construction of the frame if we wished to put down the decking, but Vic did not pursue costing for this option. He notes we could potentially look into financing the cost of the dock so we could repay the dock over time, with a loan to the corporation (not to an individual shareholder). Option 7 describes building the dock using pallet racking, but is fraught with complications. Vic notes it would be cheaper if it were doable but we would have to get approval from multiple agencies. Currently the best situation looks to be piles, which Vic estimates would cost $450 each to drive for douglas fir, which is the least expensive option. He suggests we have to decide whether we want to pursue the pile driven dock and request some more solid quotes. He notes the fisheries people have become more stringent lately so we want to be compliant with all existing regulations.

Sharyn notes the people living in the Oldenburgers have made repairs to their dock and shoreline, and asks why we have to follow the regulations if they don’t? She asks whether we have enough money to prioritize both the reflooring of the cabin and the dock?

Vic states that if we don’t rebuild the dock now it will only get more expensive. He notes we have gotten by over the past 25 years with relatively few expenses, but we will have to commit money to the cabin eventually.

Sheila states the ants in the cabin should take priority over the dock.

Duane states that if we have a cabin on the lake we should have a dock, given it would be much more marketable if it has a dock that’s done properly. We should proceed based on this, especially if we can finance it over 5 years.

Cody states that he, Carson, Brenna, and Melanie are willing to commit to this as long as the cost isn’t exorbitant.

Vic asks whether the shareholders would be willing to pay $1,000 a year over the next 6 years?

Duane notes he has the option of working on contract for now but may not in the future.

Vic states we could still look into doing some of the work ourselves to save on costs but notes we would need to talk about a ballpark figure that would cover the costs.

Cody asks whether we can look into ways of building the dock which will protect it from future flooding?

Vic states there are ways this could be addressed. For example, planks could be removed in the fall and barrels or weights could be put on the dock to steady it. He notes the 2017 flood may have been a perfect storm.

Duane states this would have to be part of the discussion if we engage a company to do the work.

Cody, Duane, Vic, Sheila (provided we don’t replace the flooring this year) are in favour.

Vic proposes a $36,000 budget over 6 years. Melanie notes we might be pleasantly surprised as this is a generous budget.

Duane notes we could come up with a plan to cover as much of the labour costs as possible. For example, he has the experience to execute the demolition of the boat ramp. Vic suggests doing it in conjunction with a professional. Duane notes we would need somebody with a saw to cut the one block.

Sheila notes she was provided with 4 legal certificates from the survey, which are kept in the minute book

Vic motions to pursue quotes and proceed with a rebuilding plan with a maximum budget of $36,000 which Vic would finance and would be repaid over 6 years by the corporation according to the distribution of share ownership. The motion was seconded by Duane. Duane, Shelia, Vic, and Cody were in favour, Sharyn was opposed.

Sheila motions funding of the rebuild would start in the 2019 calendar year regardless of whether the work would be conducted in 2019 or later. The levy would be $70 per share per year payable at $35 per share twice annually as per the existing schedule of cabin fees. Duane seconds the motion. Duane, Sheila, Vic, and Cody were in favour, Sharyn was opposed.

Vic states he wouldn’t expect any payment until there’s an outlay but there should be a dock levy starting in 2019 according to typical cabin fee assessment dates.

Sheila estimates the likely maximum annual expense will be on the order of $1,200 per family per year. She notes she has been exploring passing some expenses on to her children and recommends other families pursue this as well.

New Beds and Night Tables

Item deferred until after we have removed the carpet and installed new flooring

Purchase of New Fridge (Duane was to explore locally)

Duane notes he looked at appliance retailers with locations in Vernon and Kelowna and saw a fridge that would fit into the space which would cost $400-$700. He would like approval to purchase a fridge and have it delivered. He would be willing to oversee this and asks whether Brian could help with the delivery of the fridge?

Hot Water Tank

(Melanie-was to check for date/record on tank) Replacement?

Sheila notes we don’t know the year the hot water tank was installed

Vic suspects it’s very old

Duane notes it would be better to replace it before it breaks.

Cody asks whether we should replace it and move it to a different location?

Vic thinks it was placed in the master bedroom closet because the basement wasn’t filled in at the time.

Melanie notes she has heard insurance may not cover flood damage if the hot water tank is over 10 years old

Sheila asks whether a plumber could evaluate the health of the tank?

Melanie notes she found water underneath the tank which is why Vic ripped up the carpet in the closet.

Vic notes the shutoff valve was leaking and that he tightened it, which stopped the leak. He states we should be worried about the tank corroding and a leak emerging that way and that we should take use into account. The hot water tank may be 40 years old but we only use it half of the year or less. He states we should look into repairing/replacing this next summer.

Duane has seen the cost estimated at $1000 in Calgary, although it will be more expensive if we want to install the new tank in a different location.

Sheila asks whether we should be making this a priority? She wonders if the cost is that low is it better to be safe than sorry?

Vic notes we have decided not to buy flooring this year, which would offset the costs.

Duane suggests we move discussion of this to the Easter bee section and make a decision then.

Disposal of old boat in yard

(Vic was to give to Alan Bradley Card, Melanie will update)

Melanie notes that Alan is working out the details of the insurance. He has all the paperwork and will remove the old boat as soon as the transfer is confirmed.

Cabin Manual – Digital Copy (Sheila)

Sheila will get to this

Cabin Users’ Ongoing Maintenance Checklist (Sheila)

Sheila will get to this during the summer

Sewing Machine

Has anyone thought about taking it?

Vic asks whether anybody wants it?

Sharyn notes she hasn’t asked anyone

Duane states nobody in his family would want it

Leaf blower and orbital sander

Yet to be purchased (Sheila)

Sheila notes we would need an orbital sander for staining if we want to stain at the work bee. She would also like to get a leaf blower

Duane agrees, noting he uses this tool more than anything else and it would be very handy. He recommends the battery operated Geo brand ($300) and will keep his eye open for a sale and let Sheila know if he sees one.

Monitoring of cabin during the winter

Sam Sanderson for this winter 2018-19.

Discussion re: thank you giftcard for Sam.

Sheila notes we gave Sam Sanderson a $100 gift card, would like to do it again and proposes we make it a yearly thing. All are in favour.

Giftcard for Karen and Bryan

Discussion re: gas giftcard for Karen and Bryan to thank them for the use of their truck for hauling away debris from yard and prunings in the spring and fall of 2018.

Sheila proposes a $150 gift card

Vic asks what would they prefer?

Melanie states a gas gift card works well

Duane suggests Melanie could keep track of how many loads they’ve hauled and give them gift cards periodically (of approximately $20 per load)

Sheila recommends a $150 card for the work they’ve already done and that Melanie purchases additional gift cards as warranted (at ~$20/trip)

Staining

Spring 2018 Work Bee was cancelled. Need to re-schedule

Sheila notes this badly needs to be done and could be a part of an easter work bee and suggests she could take care of this at a work bee.

Meeting Extension

90 minute mark reached but meeting will proceed to accommodate remaining points.

New Business

NOTE: Several items could be included in one or two workbees

Duane reports he and Vic will manage pulling out carpet, investigating/preparing floors, and scheduling a fumigation. He notes they could also look into the hot water tank and suggests Melanie could look for a plumber to take this on.

Melanie notes she will not be around the month of April.

Sheila states she can take on staining on the May 24^th weekend

Lawn (Vic and Melanie)

Sharyn asks what lawn, it’s all dirt at this point

Duane responds that it’s a dirt bath because it’s not been watered. He watered the previous spring and the lawn did start coming back, so if we were to water on a regular basis it would look better.

Melanie notes this is only possible if somebody was out there. Between April and July, nobody is out there.

Duane responds, we could commit to watering every other day and mowing between July and August.

Sheila asks whether we should we look into drought-resistant grass as it may require less watering.

Melanie: we could put some out at the start of the summer and see if it lasts into next year.

Sheila volunteers to look into this.

Duane suggests he look into it given he will be at the cabin for Easter and could seed it then to give it a better head start.

Melanie asks who will water it between then and the summer?

Duane responds maybe the May long weekend would be better timing to plant the seed.

Drip line (Vic)

Vic reminds the group that the drip line needs to be on all season. He also notes there is a leak in the line that has been taped but the line needs to be repaired. The line can be turned off at night but must be turned back on in the morning. He also notes there are dead trees and stumps that need to be removed at some point, although acknowledges we have higher priorities at the moment.

Sheila notes there was an end that seems broken

Vic asks whether this is a tagged end or is it broken?

Duane and Vic volunteer to examine the line when they come out to work on the floors.

Planting replacement cedars for those that have died (Vic)

Deferred for now

Removing dead trees on Western property line (Sheila)

Melanie is worried about the fire hazard the dead trees pose and suggests Brian could take them down with his chainsaw.

Duane suggests we’ll eventually have to rent a stump grinder and take these all out

Sheila suggests this be done in 2020

Vic notes the underside of the cabin is a visual nightmare and suggests we will need to do a big cull at some point.

Procedure for repair of vertical bars on spiral staircase (Vic)

Workbee dates 2018-2019

Aluminum Boat Use and Maintenance of Motor

Next generation

Discussion regarding inviting next generation to attend AGM, beginning next year, in order to hear their ideas and help them to be aware of what is involved in working as a group to maintain the cabin, thus enabling the transition to them governing Signant Two Holdings Inc., if this is what they choose (Sheila)

Duane notes this would be worth discussing with the children give they need to have some understanding of what goes on if the next generation wants to continue. He asks whether we can include our significant others in these meetings as well?

Melanie notes we would likely need to extend the amount of time allotted for each meeting if more people were to attend.

Vic notes there have been issues with Kathleen’s participation in the past so limit the extended invitation to children only?

Sheila suggests all children can be invited to the next AGM, but that not all need to participate.

Distribution od Cheques

Duane suggests if we each had some cheques it would be easier to manage the repair/purchase expenses.

Sheila responds this is a good idea, as we could report the expense to Jennifer with a copy of the cheque/receipt.

Cheques were distributed across the group.

Boat lift

Vic reports we almost gave away the boat lift but the guy drove out to pick it up without a trailer. He asks whether we can we dissemble the boat lift and notes we may need an impact driver or to shear off bolts with a grinder. He notes the lift likely doesn’t have any sale value but is in working condition and suggests it could potentially be given away for scrap metal.

Sheila asks whether we could use the boat lift with the new dock?

Vic responds we could but we would need to move it back out. He notes moving it in was difficult and it’s still 15’ off high water.

Melanie notes if we use it again it will have to be moved to the middle of the property (where the new dock will be located), ruining the view.

Vic suggests there are more slightly ones we could purchase and will advertise the lift again in the spring on Kijiji

Year-end Review and Synopsis

Maintenance, Improvements and Additions 2017-2018

-removal of pine needles and leaves from gutters (all families)

-old boat hoist pulled closer to shore for disposal (Vic)

-re-covering of swing (Kathleen)

-new toilet and removal of carpet in ensuite (Vic)

-new storage system for commonly used items in shelving to right of fireplace (Vic)

-load of wood (Sept 2018, Sheila)

-pruning of all trees overhanging cabin (Melanie)

-dining table legs shortened to lower table height (Vic)

-Repair of vertical bars on spiral staircase (Vic)

-removable wheels purchased to roll the boat down into the lake (Vic)

-cedars trimmed at front (East) end of boathouse (Vic)

OTHER

Light fixture

Vic added a wired fluorescent light fixture to the boat house

Long-term Maintenance Timeline (Sheila)

Discuss timeline for major items not yet discussed, if any

Booking Procedure 2019

Discussion regarding maintaining current summer timeslots (as discussed at 2017 AGM) or using the 2019 picking order which is as follows:

2019 booking order:

1 Sharyn,

2 Duane,

3 Sheila,

4 Vic,

5 Melanie’s Block Option of Maintaining Current Summer Time slots for            2019:

Block 1: June 28-July 11 (Sheila)

Block 2: July 12-22 (Duane)

Block 3: July 23-August 5 (Sharyn)

Block 4: August 6-19 (Vic)

Block 5: August 20-September 2 (Melanie)

Review of 2018 Financial Statements

Directors’ Resolutions

(Great thanks to Jennifer for preparation of all Financial documents and Directors’ Resolutions)

Other _____________________  

Next Meeting set for  _____________________

Adjournment

Sheila moves that we adjourn at 3:16 pm