Honorariums part of budget

By Richard Rolke - Vernon Morning Star Published: September 23, 2008

Members of a City of Vernon-appointed agency are being paid for their work. The Captain Bailey Way Corporation has budgeted $64,000 over three years for honorariums for its five directors, or $200 a month. “I’m really not happy with the honorarium part at all,” said Coun. Barry Beardsell, adding that members of other committees are volunteers and don’t financially benefit. While the honorariums are supposed to cover expenses related to corporation duties, Beardsell is convinced they could be handled differently. “If they have out-of-pocket costs, I would rather they submit them for reimbursement,” he said. The corporation is charged with developing 10 hangars and 10 residences at the airport. The project cost is about $8.4 million, and it’s anticipated that the units could be sold for between $800,000 and $1.4 million. The total projected selling price is $11.8 million, and the net forecasted profit is $1.9 million.

Coun. Pat Cochrane, who sits on the corporation, defends the members of the committee sitting on the board getting paid. “They do put a lot of time and effort into that committee. There’s a lot of experience on the committee,” he said. Cochrane is also receiving an honorarium, but he doesn’t believe that is appropriate as a councillor and the funds will be donated to a community charity, The issue of honorariums arose two years ago when the Vernon Land Corporation compensated its directors. Most council members were opposed to honorariums at that time and ultimately the land corporation was scrapped. But Mayor Wayne Lippert believes there is a significant difference with the Captain Bailey Way Corporation. “The land corporation had no end date and this one is set up for three years,” he said. “The honorariums help offset the expenses of going to meetings.”

Interest in the hangars and housing units at the airport are coming from Albertans in the oil and gas sector and local residents. “We are convinced the customers are there for the project and it’s working to the benefit of the taxpayers,” said Cochrane.“The $1 million in profit will go back into the airport instead of coming from the taxpayers.”The units would be pre-sold and phase one of the project would include four units.

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Mixed messages By Richard Rolke - Vernon Morning Star Published: September 23, 2008

Apparently memories are extremely short lived among the politicians at Vernon city hall. It was only a couple of years ago that honorariums for members of the Vernon Land Corporation caused a tremendous stir. Ultimately, the corporation was downgraded in authority and financial compensation was scrapped. But now, funds are being allocated for those individuals sitting on the city-appointed Hesperia and Captain Bailey Way corporations. In its budget projections, the Hesperia corporation has set aside $25,000 annually until 2015 for directors’ fees. The budget for the Captain Bailey Way Corporation calls for $64,800 for honorariums over three years. And just like the debate with the former land corporation, the same question arises. What message does this send to residents who volunteer their time for crucial committees such as planning and the environment? “All of the other (city) committees do not get paid,” said Coun. Barry Beardsell in January 2007.

Now perhaps I should back-track for a bit and explain the role of each of the corporations. In the case of the Captain Bailey Way group, it is charged with developing 10 hangars and 10 residences at the airport. Over at Hesperia, it is spearheading the construction of attainable housing and other uses on 69 acres along Longacre Drive. The argument can be made that the individuals sitting on these corporations bring specific skills and expertise to the tasks at hand. And I am sure that is the case. But the same theory also applies to every other committee that falls under the jurisdiction of council. If you look at the environmental advisory committee, there are scientists and naturalists at the table. Over at the affordable housing committee, you will find developers and realtors. The athletic commission consists of marital arts experts who can determine if a professional fight should be sanctioned to come to town. In justifying honorariums, some city officials like to point out that the members of the Hesperia and Captain Bailey Way corporations put in a lot of time and effort. And not for a moment do I question their dedication.But those involved in other city-appointed functions also work very hard. In the case of the advisory planning committee, they look over development applications that come in, whether it’s for a single-family residence or a multi-million-dollar resort. And that means considering all of the issues involved and frequently visiting the property itself. Members of the APC are ultimately responsible for how the community develops and looks long-term. And they do it all for free.

And then there are the city’s auxiliary police officers who bolster the resources at the RCMP. They put their lives in the line for the community, but not a dollar goes into their pocket.

When honorariums for Captain Bailey Way were questioned at council Monday, Mayor Wayne Lippert's only defense was, “It is a corporation,” as if it is some independent institution. But consider that the members of that corporation were appointed by council, the city is the only shareholder and everything the corporation does — such as the income statement presented Monday — must be approved by council. It may be a corporation, but the umbilical cord is still tied to city hall. In the end, there is a double-standard when members of some committees are paid and others are a free-be. Whether intentional or not, it sends the message that some council appointees are more important than others.