Thursday, July 31, 2008

National Accounting Firm suggests contacting your M.P. to change GST charge on Provincial Carbon Tax

Don Quixote Note: The following is part of a weekly newsletter that BDO Dunwoody sends out to people on their e-mail list and adds credence to my month long struggle for answers from both the Federal Leaders as well as the Provincial ones on the charging of GST on the Provincial Carbon Tax.. I intend to forward this on to all the leaders etc. who haven't replied to my original two e-mails on this subject. (Emphasis in message below are mine.)
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BDO Dunwoody Special Announcement: BC Carbon Tax - Is it really revenue neutral


One cannot hear a provincial politician mention BC's new Carbon Tax without hearing the mantra-like recitation of the phrase revenue-neutral" preceding it. While the provincial government may indeed be returning to BC taxpayers every cent it collects as Carbon Tax, that does not make the tax "revenue-neutral" to you the ultimate consumer.

The reason is simple: the Federal government charges GST on the Carbon Tax.

The BC government estimates that the Carbon Tax will bring in approximately $1.85 billion over three years. If those estimates are accurate, GST of over $92 million will also be levied by the Federal government. Some (but certainly not all) businesses can recover this GST as in input tax credit, but consumers cannot. Schools, universities, hospitals, charities, and non-profit organizations will also be paying additional GST that cannot be recovered.

If, as has been estimated, individuals will be paying 1/3 of the Carbon Tax assessed, that means that a minimum of $30 million will flow out of BC and into the Federal treasury on account of GST charged on the Carbon Tax over the initial 3 year period. This estimate does not factor in the aforementioned schools, universities, hospitals, charities and non-profit organizations, which will certainly account for millions more.

Was this intentional? Not likely. Pursuant to Federal legislation, only PST, Hotel Room Tax and Property Transfer Tax are not subject to GST. Any taxes under new provincial statutes are subject to GST by default.

Can the BC government do anything about it? Doubtful. This is the result of Federal legislation over which the province has no control. What would it take to fix it? The Federal government would have to make a change to the Taxes, Duties and Fees (GST/HST) Regulations to specifically exclude BC's Carbon Tax from the GST regime. You might want to make this friendly suggestion to your Member of Parliament whilst he/she is on the barbeque circuit this summer.

BCLC predicted smoking ban would lead to drop at bingo halls

Written by MARK NIELSEN Citizen staff Thursday, 31 July 2008

The effect of the ban on smoking in public on the bottom line of the Chances Good Time Gaming Centre comes as no surprise to the B.C. Lottery Corporation. BCLC spokesperson Greg Walker said John Major's claim that revenue has fallen 20 to 25 per cent falls in line with what was expected as a result of the regulation, which came into effect on March 31, just four days after the gaming centre was opened. "The corporation estimated that, particularly for bingo, we could be facing declines of up to 25 per cent, that was our projection," Walker said, adding similar-sized drops were recorded at bingo halls in other provinces when the ban was introduced.

The BCLC has given support in principle to Major's proposal to move the bingo operation to Treasure Cove casino and sell the gaming centre building at Seventh Avenue and Quebec Street to someone else. Major has said there's a chance it will be converted into a mini-mall. The decline is not the only reason BCLC is backing Major's request, which must win approval from city council before it can be acted upon. Improved efficiency, more effective marketing and additional room for parking are some of the advantages of moving to the casino, said Walker. The situation in Prince George is unique, where we have one business partner providing the full-service casino and the community gaming centre,," he noted. The old Good Time Bingo Hall was the second-largest revenue generator for the game among the 27 halls in B.C., bringing in $14.9 million in 2007-08 behind only Planet Bingo in Vancouver, which reaped $16.6 million.

At 660 seats, the new gaming centre holds the same number as the old Good Time Bingo Hall did, with 300 touch-screen bingo terminals and 360 paper bingo seats, but the new location also holds slot machines and is about 50 per cent larger. BCLC has been in the process of upgrading bingo halls around the province to gaming centres to help revitalize interest in the game. If not for such moves the drop in interest as a result of the ban on smoking would have been even higher, Walker maintained.

While BCLC is reponsible for operation and maintenance of the equipment, the service provider is responsible for the operation of the venue and receives a percentage of the revenue in return. In 2006-07, Major's Good Time Bingo Hall Inc. received $2.15 million according to BCLC's audited financial statement, while $14.2 million in revenue was generated.

A human rights complaint has been launched against the "Jesus sucks" fellow


Dean Skoreyko of Coldstream, B.C. has launched a human rights complaint against Kenneth Joel Hotz (of Kenny vs. Spenny fame) for his "Jesus sucks" airplane-banner stunt in Toronto. You can see the complaint in its entirety here.

HEALTH AUTHORITIES SCORE HIGH IN HOUSEKEEPING AUDIT

VICTORIA Results from the most recent independent provincial housekeeping audit show that British Columbia hospitals and health authority-run long-term care facilities meet the prescribed benchmark for cleanliness. For the second year in a row, all participating health authorities scored above the benchmark rate of 85 per cent in the audits carried out by Westech Systems, Inc. B.C. was the first province to implement provincewide quality and cleanliness standards, which apply to all hospitals and health authority-managed facilities.

“We are pleased that all health authorities met this high benchmark for housekeeping services,” said Minister of Health Services George Abbott. “Housekeeping provides an important function in our health facilities, helping prevent the spread of infection as well as ensuring the safety and comfort of patients and staff. These audits are another example of our accountability and transparency to residents of British Columbia.”

The audits of these facilities were done between August 2007 and March 2008 in five health authorities, as Westech moves towards a continual auditing of facilities throughout the year. Previous audits were done in 2005 and 2006. All audits are done by a third party, are independent, and are unannounced. Westech audits approximately 10 per cent of rooms in a facility, placing a higher priority on higher risk areas such as operating rooms and emergency departments. These audits are in addition to internal audits done by health authorities, based on the same provincial criteria set out by the Westech audits. Information on housekeeping audit results is posted to health authority websites.

HOUSEKEEPING AUDIT RESULTS

The average scores for each health authority for each independent audit are as follows. The standard benchmark for the audit is 85 per cent.

Health Authority

2005 Score

2006 Score

2007/08

Score

Fraser Health

86.14

87.26

87.44

Interior Health

90.36

90.09

N/A

Northern Health

88.43

87.32

87.20

Provincial Health Services Authority

85.22

92.44

89.41

Vancouver Coastal Health

87.64

85.57

87.47

Vancouver Island Health Authority

84.46

94.52

87.24

NOTE: Interior Health did not participate in the 2007/08 survey – but is continuing their regular internal audits of housekeeping, which continue to show similar results. As well, Interior Health is participating in the next provincial third-party audit, which is currently underway.

Blame game over airport dispute

By Peter McIntyre 107.5 KISSFM

The city says its the feds, but the feds put the blame on the city. It seems no one wants to admit who's holding up a lease dispute that could close down Vernon's airport. Okanagan Shuswap M-P Colin Mayes says Indian and Northern Affairs Canada (INAC) is ready to approve a new long term lease involving the Firs Nations members who owns part of the site, but still needs more info from the city. The MP says, "We checked with the person that's handling, on behelf of the government of Canada, the lease agreement, and we were reassured they were just waiting for the city of Vernon's lawyer to send their submission and then they were going to deal with it as quickly as possible." Mayes, who is attending the Conservatives caucus meeting in Quebec, tells KISS FM, INAC appears ready to give the go ahead to the new lease. "As far as I know but I don't know the terms and I don't want to get involved in those terms and get in between the Jack family and the city of Vernon. I just want to make sure they follow a process and that it's open and transparent, and they work together to reach a mutal agreement." City of Vernon officials have said the the federal agency is the one that's holding up a new 49 year lease. John Jack, who owns part of the airport land, says he will end a month to month lease with the city on August 31-st, if a long term deal isn't reached.

Nord Meeting next week Wednesday at 2 PM


The COLDSTREAMER has a long article concerning the matter of spray irrigation on Mountain Land on his website. The article can be accessed at this link.

Excerpts from Article:
The information below was sent to me by a contact and also forwarded to Rick Fairbairn, NORD director, who will be discussing it at next Wednesday's NORD meeting. I thought it would be of interest to you to attend the meeting and follow up on this
Huguette Allen 250.547.0272
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"There is a major difference between spray irrigating bottom lands as opposed to irrigating high elevation alpine environment. On bottom lands it is easy to control movements of the sprayed wastewater. Do it on top of the mountain and nobody knows whose drinking water is enriched by the mountain folks' generosity." -The Eagle.

Vernon airport could close due to Native dispute

Andy Ivens, The Province Published: Wednesday, July 30,

A dispute over lease payments is threatening to shut down Vernon Regional Airport. A small stretch of the airport's runway sits on Okanagan Indian Band land. But unlike the vast majority of First Nation land issues in B.C., the airport operator and the band are generally in agreement on a new lease agreement. t's the federal Department of Indian and Northern Affairs that seems to be holding up negotiations, Vernon Mayor Wayne Lippert said Wednesday. "I'm hopeful that we have everything sorted out," Lippert told The Province. "We have a meeting with John Jack and Cindy Brewer, who have a certificate of possession for the land, along with [OKIB director of operations] Edmund Gus." The last lease on the seven-acre plot in the middle of the runway ran out in 2006. Since then, the city of Vernon, which owns the airport, has made monthly lease payments of $4,100 to Jack and Brewer - double the previous tariff.

Lippert said both sides are feeling "a level of frustration." Vernon city council approved a new fee schedule of $3,500 a month, said Lippert. "I've spoken to [OKIB] Chief Fabian Alexis a couple of times and he said their council supported the original agreement, and the Jacks. "It seemed like everybody was onside." But when the proposal was sent to a bureaucrat at Indian and Northern Affairs, the deal stalled. Chief Alexis was unavailable for comment. Lippert said Jack and Brewer imposed a deadline of today on negotiations. If no agreement is reached the airport could be shut down Aug. 31 by Jack and Brewer, according to a recent report posted on castanet.net. "We've been making our payments under the [month-to-month] agreement all along," said Lippert, who would like to negotiate a 49-year-lease. "Indian and Northern Affairs Canada ... are the ones who control the leases. The lease the city enters into is actually with Canada," he explained.

With a runway only 3,518 feet (1,072 metres) long, the airport does not have any scheduled commercial flights, but it is an important amenity for the city of Vernon, said Lippert. "There are some charter flights that work out of it," he said. "There's an [aviation] business park [with] 125 to 150 good-paying jobs." Okanagan College offers a course to become an aircraft maintenance engineer at the airport, as well. "It's frustrating, because it's out of our control," said Lippert. "We've got a good relationship with the Okanagan Indian Band and we don't want to jeopardize that. Chief Alexis has indicated he doesn't want to lose that either."

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Don Quixote Note: Maybe our M.P. knew of the difficulty of working with the Department of Indian and Northern Affairs when he said “Government is not bad. We are trying,” said Mayes. “And it is very difficult when you deal with INAC (Indian and Northern Affairs Canada), a heartless department. But believe me, there are politicians who are representing you in Ottawa, and we do have a heart for aboriginal people.” Eagle Valley News July 8 Splatsin seek to heal from wrongs of the past

Wednesday, July 30, 2008

Residents Express Concerns about Effluent Spraying

Starlee Speers Astral Media Radio (Vernon)

Residents living downstream of Silverstar Mountain have expressed concern about effluent spraying at a water shed at the top of the resort. Rick Fairbairn, Regional District director for Electoral area 'D" says the company contracted by the resort does have permission to do so. "There has been a permit issued to do that and I think the staff is trying to determine what's involved with the permit and the ramifications..." The report will be presented at next weeks NORD Meeting.

Don Quixote Note: A brief overview of the system can be found at http://www.waterworks.ca/silverstar.html

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Starlee Speers Astral Media Radio (Vernon) No Golf Course For Silverstar Resort Yet

Rumours of construction of a golf course at Silverstar Mountain are not true says the Resort's VP of Sales and Marketing. Michael J Ballingall says right now their focus is on building a world class ski and snowboard resort. "Right now the only plans we have for a golf course are on paper. In our Master plan there is an area set aside for a golf course." Ballingall says, the North Okanagan Regional District has already approved the Official community plan for Silverstar but there would be a public consultation process if they were to begin building a golf course.

Volunteer N.S. firefighters sued for failure to stop house fire

CBC July 30

An insurance company that paid out the claim of a Nova Scotia couple after a devastating fire is suing two volunteer fire departments, claiming the damage could have been avoided. The lawsuit by Aviva is against the North Sydney and Frenchvale volunteer departments. The fire departments were called to a home in North Sydney in July 2007. They put out a blaze in a back bedroom, but it reappeared a few hours later and destroyed the rest of the house. Larry and Diane Stonehouse spent the next nine months in hotels. They were compensated by their insurance company, and Diane estimates the total cost to the company was more than $400,000. Aviva is suing for damages and court costs.

The Stonehouses are named in the lawsuit because their name is on the policy. "We didn't know anything about it," Diane told CBC News Wednesday. "The firemen are friends, neighbours, customers of my husband, who has a small-engine repair business." A statement of claim, filed in Nova Scotia Supreme Court in Halifax, says the fire departments didn't have specialized equipment designed to detect heat and flame, or turn to somebody that did. If they had, the suit claims, the second wave of flames would have been detected and extinguished completely. The volunteer fire departments wouldn't comment on the lawsuit, saying the case is now before the courts. Diane Stonehouse hopes there are no bad feelings. "If my new house burns down, you want them to come," she said. "I'm hoping that the firemen will know that we're not doing this to them. This is not our decision."The allegations have not been proven in court.

Affordable apartments shouldn't cost $360,000 per unit (Modesto)

By DICK HAGERTY Modesto BEE

"New apartments to help low-income families."

That was a June 22 headline in The Bee heralding the Village One Town Center apartments being developed by the Stanislaus County Housing Authority, with help from the city of Modesto. And in times like these, those are welcome words indeed. But wait! Affordable? $360,000 per unit! Are you kidding me? Sure, the rental rates are affordable, but who in the world was sitting still when the bids came in on this project? At sizes of only 930 to 1,150 square feet, these units come out somewhere above $325 per square foot. Wow! Custom houses in Del Rio are being built cheaper than that. A more recent story talked about the new homes completed by Habitat for Humanity. A quick check with Habitat Executive Director Anita Hellam indicated that those homes came in at $65 to $70 per square foot. Admittedly, those are partially built by participants in the program, but surely that saves no more than $20 to $25 per foot. Figure $100 per square foot and we are still less than one-third of the "affordable" units in Village I.

Many reasons, I suppose, could be offered as elements of cost that would drive this to such a high total, such as prevailing wage, costly financing, less density on the lot than was originally proposed. But, in the end, it seems to me a clear case of government doing tasks that would be better left to the private sector. As developers and builders, we don't make laws, nor do we administer functions of the government. On the same hand, government clearly should not be building and developing housing that the private sector could better construct. As private developers, we first have to pencil out a project -- in other words, make sure that it is financially feasible. Sounds to me like this one was never penciled -- and if it was, who decided to go ahead at those costs? That project would never fly in our business.

Hard building costs for residential housing run about $65 per square foot today. Add permits, infrastructure and school fees, land, and the overhead and financing costs and the typical semi-custom subdivision home will cost no more than $150 per square foot, including profit for the builder. (An ad in a recent Sunday Bee offered new homes in Livingston for $99 per square foot.) And, according to several sources, this project did not even have to pay the full development and infrastructure fees, at least upfront like all the rest of us developers. Those could add $30 to $40 per square foot to the end cost. Recently I purchased a new rental house in a new subdivision in Ceres. The house is just over 1,000 square feet and I paid $140,000 for it. That works out to less than 40 percent of the cost of these "affordable" units. And most people would prefer to live in a single-family detached house instead of an apartment complex.

I suppose that the argument could be made that the units in question are right next door to a neighborhood shopping center. Well, my rental house is just a few blocks from shopping, and for the price differential I could hire a car and driver and still be ahead. Perhaps the most surprising aspect of the entire story -- no irate letters to the editor, no questioning editorials, no outcry from any quarter. Simply amazing!

Hagerty is an Oakdale real estate developer active in community nonprofits.

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Don Quixote Note: Some representatives from Modesto are meeting with the City this Friday. Perhaps the media can get a reaction to their view of government building "affordable housing". A viewpoint from a local real estate agent about a local project can be found at : Hesperia - Why is the City involved in developing attainable housing and just what is attainable housing?

Corporation denies secrecy

A city-owned development corporation insists it has nothing to hide. Representatives from the Hesperia Development Corporation addressed questions from Vernon council and the Vernon Taxpayers Association Monday about plans for 69 acres on Longacre Drive and Apollo Road. “We do not have a full-blown development plan for this site. We are not keeping anything secret,” said Ken Stewart, chairman of the board appointed by the city. The taxpayers association has raised concerns that the corporation is meeting in private, but Stewart insists that is just how land issues are handled. “When there is something to deal with, there will be public meetings,” he said. Because the city is the corporation’s lone shareholder, Stewart says his board can only provide full disclosure on some matters, such as the land appraisal, to the city. There is a budget for consultants, such as planners, and the five directors receive a fee for their duties. “There are rates established, but it’s nominal,”* said Stewart, who would not go into details. The goal for the 69 acres is for 1,000 homes, with half of them for people with moderate incomes and the remainder for those with higher income levels.

“Our target is median family incomes in the $55,000 to $100,000 range a year,” said Stewart. Stewart believes the site would be desirable for families because of its proximity to schools, beaches and parks. Stewart added that the focus is not on low-income housing. “We will not be subsidizing any of the units unless the city instructs us to subsidize.” While the city currently owns the land through the corporation, the property will ultimately be sold to developers. “We have no favourite contractors,” said Stewart, adding that the mandate of the corporation is to make money for the city. “We will not proceed, if it’s not profitable.”

Some residents have expressed concern about the possible scope of the development, but Stewart says the plan is for about 15 units per acre, and there would be a buffer to preserve adjacent farm land. “It’s medium density. There is nothing in our tentative plans that exceeds four storeys.” There were plans for a public presentation this summer and a public hearing on rezoning this fall, but that timeline has been delayed because of market trends. But Stewart is adamant that the public will be involved. “People can support or attack our plan as they see fit,” he said.

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*The original cost flow projections for this project can be found here. In 2007 the Directors fees were projected to be $11,000 and 2008 were to be $25,000. There appear to be 4 non political directors at this time. The 2007 financial statements of Hesperia will provide the actual amounts paid out. Hopefully the City will post these statements on their website shortly?

DKA makes pitch for higher business fees

Don Plant 2008-07-30 Kelowna Courier

Downtown property owners will pay for cleaner surroundings, more security and a higher profile if the Downtown Kelowna Association has its way. The business association, which represents 280 property owners, is asking members to spend nearly 60 per cent more to fund its operation over the next five years. An open house at The Grand hotel on Tuesday drew several property owners to learn more about the plan. “Initially, when I read about it, the increase seemed to be very high,” said Shabbir Dhalla, who owns the Royal Anne Hotel. “After hearing the reasons for the increase, I feel a lot more comfortable.” Revenue from a special property tax collected from the property owners is set to rise to $679,000 in 2013 from $428,000 this year. In contrast, the DKA‘s operating levy has risen less than five per cent since 2004, to $428,000 from $411,000. “A $17,000 increase over five years isn‘t enough. That‘s what our members are telling us,” said the association‘s president Tim Brown. “People expect more and better things downtown.” After a flat few years in the mid-2000s, the downtown economy is improving, said DKA executive director John Perrott. Developers are constructing new commercial and residential buildings. Owners are improving building facades. People are moving downtown.

“That‘s attracting new retailers and restaurants to downtown,” Perrott said. “People expect a cleaner, safer downtown. They expect a downtown with more life, more events, more activities … a more diverse mix of restaurants.” Accordingly, the DKA has set out a plan to improve the look and feel of Kelowna‘s central core. Right now, a worker operates a Zamboni-like street-sweeper that scrubs the sidewalks during the summer tourist season. The association wants to buy a pressure washer and vehicle, and hire two full-time workers. The DKA wants to expand its Downtown on Call program, which provides five security staff who walk people to their cars, escort staff making bank drops and remove unwanted people from businesses. The association plans to broaden the Biz Patrol program, which employs young ambassadors to help tourists and remove graffiti. Another goal is to help organize more community family events like the July car show and Mardi Gras. Unless more than half the downtown property owners object to the spending plan, it will be implemented early next year.

City tax crunch less noticeable (Penticton)

By JOHN MOORHOUSE Wednesday, July 30, 2008 Penticton Herald

Penticton‘s annual tax crunch has arrived -- only this year things are a little less “crunchy” at City Hall. The city will be collecting $47.7 million in overall taxes this year, including school, hospital, regional district and other taxes. The city‘s own general tax levy amounts to $22.8 million Ð up from $21.2 million in 2007. Tax deadline is Thursday at 4 p.m. to avoid a 10 per cent penalty. City collector Lorne Raymond expects the heaviest line-ups to occur today since many residents don‘t want to leave their payment to the final day. However, Raymond said line-ups are noticeably shorter this year due to a couple of recent improvements. For the first time, provincial home owner‘s grant applications can be filed online, in addition to city tax payments. The city has also acquired new computer software which doubles the number of cashiers able to handle tax payments and home owner grant applications. The two utility payment cashiers can now accept payments in addition to the two tax counter wickets. “This is the first year people have been able to claim their home owner grant electronically,” he said.

Residential property taxes in Penticton went up an average of 4.95 per cent this year. Additional increases in electrical, water and sewer levies were also approved during city council‘s 2008 budget deliberations. The late payment penalty is 10 per cent of the outstanding tax bill. If still unpaid by Jan. 1, 2009, additional interest will be charged on the amount in arrears. About 97 per cent of taxpayers pay their bills on time.
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Don Quixote Note: The reason I posted this article was the taxation deadline date of late July in Penticton. I checked their website and the line that jumped out at me was '
City taxes are due the last working day of July. Any outstanding balance after the deadline date is subject to a 10% penalty.'

I was always under the impression that all cities and municipalities had the same tax deadline date but if this is correct I was mistaken. I still remember City Hall staff saying that the tax procedures re deadlines and penalties if overdue are written in stone and can't be changed. I will be exploring this new information and will post my findings asap.(see below)

Up in the air -

CHBC Video Web posted on Tuesday, 29 July 2008

A property lease dispute could ground most flights at the Vernon airport.

Battle erupts over airport

Activity at Vernon’s airport could possibly be grounded if a dispute escalates. John Jack, who owns part of the land the airport is on, has announced that he is ending a month-to-month lease with the City of Vernon Aug. 31 if a long-term lease agreement can’t be reached. “It is unfortunate that there are businesses that may suffer because of this, but I am left with no alternative,” he said in a release to the media. Jack and his family are now looking at ways to prevent city access to the seven acres – which includes part of the runway – if a deal can’t be reached with the city. “We will park something on his piece of the airport,” said wife Cindy Brewer, adding that a court order is also being sought to keep the city off the property after Aug. 31. In his release, Jack says the original lease expired in 2006 and while month-to-month payments have been received from the city, a long-term agreement has not materialized.

“Meetings have been held where I was told the agreement would be forthcoming within the month and now two years later, I am still waiting,” he said. “I had asked for a good faith payment which had been approved and then subsequently denied. I have been advised that if we do not accept their terms and conditions, that the city will not provide my adjacent property with water and septic services.” City officials, though, say the lease is not actually with Jack but with the Department of Indian Affairs, which is legally responsible for reserve lands. But Leon Gous, chief administrative officer, said there has been no response from the federal government on the lease and that has created delays. “The minute this (old lease) expired, we’ve been paying double the old rate,” he said, adding that amounts to $4,100 a month.

In terms of Jack’s claims, Gous says payments were promised based on a long-term lease being in place. “We’ve not given up on the process in the least. We’ve not gone against anything we’ve agreed to,” he said. “In renegotiations, they asked to service the rest of his property and we agreed. But what we have said is if the lease is cancelled, why would there be a servicing agreement?” Mayor Wayne Lippert is worried the dispute could lead to the airport being shut down. “It’s a concern because I thought we had things moving ahead,” he said. The Okanagan Indian Band is aware of the situation. “We don’t have much control over locatee (reserve lands in individual names) but council supports the individual locatees and their positions,” said Chief Fabian Alexis. Alexis believes the slow bureaucracy within Indian Affairs is the problem. “It’s holding things up,” he said of the lease.
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Morning Star Editorial July 30 Airport deal must be priority

Uncertainty has taken flight over the Vernon Airport as a property owner has indicated he will cut off access to part of his land the runway is constructed on after Aug. 31. If that occurs, it could mean a halt to activities at the airport, both for recreational pilots and the commercial businesses there. Both the property owner and the city have made claims against each other in terms of lease negotiations, or the lack thereof. And for a person sitting on the outside, it is difficult to know what the actual facts are. However, one thing is extremely clear and that is that both sides are frustrated and much of that frustration is a result of the federal government. The land in question is on Indian reserve and falls under the jurisdiction of the Department of Indian Affairs. Any lease is not actually with the local Okanagan Indian Band member whose name it's in, but with the Crown. The government must approve the terms of any deal. And yet after two years since the last lease lapsed, a new agreement has not materialized from Ottawa. Okanagan Indian Band Chief Fabian Alexis is concerned with the bureaucracy involved. "It's holding things up," he said. And that is unfair to the property owner, the City of Vernon and the entire community. A lot of businesses and people depend on that airport operating. It is time for Okanagan-Shuswap MP Colin Mayes to find out why things are dragging in Ottawa, and what needs to be done to expedite the matter. If something doesn't happen fast, activities at the airport could be grounded.

Accident drives safety concerns

Another accident at a Vernon intersection has reignited the debate over safety precautions taken by the city. A Honda Civic smashed into a fence at 20th Street and 43rd Avenue Friday at 10 p.m., after being struck by a Mazda. “Maybe we will have to flip-flop a fourth time,” Coun. Barry Beardsell told his colleagues during Monday’s council meeting. Two weeks ago, a majority of council decided to spend $70,000 on wider lanes and a pedestrian-operated flashing light at the intersection, following a staff recommendation. This action was originally supported by council in May, but was briefly abandoned by the politicians in June when they agreed to install a four-way stop there instead. The city had received a 600-name petition demanding a four-way stop after cab driver Howard Collins was killed there in a two-vehicle accident April 20. Despite the latest accident, Coun. Jack Gilroy stands behind the installation of traffic-calming devices. “Our safety people have said put up blinking (pedestrian) lights,” he said. “People are going through stop signs and putting up more stop signs won’t help.”

Mayor Wayne Lippert says a four-way stop won’t guarantee there won’t be accidents. “People aren’t stopping at four-ways. They get used to them and people start using them incorrectly,” he said. Coun. Pat Cochrane agrees that some people abuse four-way stops, but they do provide a safety element. “People are stopped and they can see people coming,” he said. Friday’s accident occurred when a Mazda going southbound on 20th Street inched out across the intersection. It contacted an eastbound Honda Civic on 43rd Avenue, sending the Honda spinning into a fence and a fire hydrant. Three people, all between the ages of 19 and 22, were taken to Vernon Jubilee Hospital with minor injuries. It’s not believed that speed or alcohol were factors in the crash. No charges have been laid at this time.

Police are concerned about the number of accidents that occur at the intersection. “I know on 20th, traffic has increased dramatically over the last few years, and 43rd is a very busy intersection,” said Gord Molendyk, with the RCMP. “With the amount of accidents that have happened there, I think the engineering people will be sitting down and taking a very serious look at whether it requires a traffic light.” Molendyk isn’t sure if a four-way stop is the solution. “Sometimes a four-way stop, for the majority of people, does stop them, but doesn’t stop everyone,” he said. “There are some issues about sight lines, so, yes, that whole intersection is going to have to be seriously looked at.”

Legion branch makes way for new tower

A highly visible chunk of downtown Vernon will be transformed. The Royal Canadian Legion branch on 31st Avenue has been sold and it’s expected to be replaced by a six-storey, 52,000-square-foot office tower. “We can’t financially afford to stay there,” said Gary Caswell, branch president. It was decided to dispose of the property because of declining membership and the high maintenance costs that come with a building from the 1940s. While much of the 22,000-square-foot structrure has been leased out to commercial interests, it remains an onerous undertaking for the non-profit organization. “The heating system and the air conditioning are old,” said Caswell. Fewer people are also using the lounge, a significant source of revenue. “The no-smoking rules have hurt us,” said Caswell.Countless memories and friendships are associated with the branch, but longtime member Bill Chalmers says it wasn’t a hard decision to sell. “Everything is wrong with it. We need a new building,” said Chalmers, who has been with the legion for 36 years.Members are now searching for space to purchase or lease for a new branch. They are looking for about 5,000 to 6,000-square-feet anywhere in Vernon. Despite selling its traditional home, Caswell insists that the legion still plays a vital role in the community. “We donated more than $60,000 to charities and bursaries within Vernon last year,” he said.

The site is zoned for four storeys, so approval will be needed from the City of Vernon for a six-floor office tower. “There is a need and we want to create a building that will be establshed for 50 years to come,” said George Oldacker, with Geo Pacific Enterprises, the new owner. Geo Pacific, which is based in Vernon and the Lower Mainland, will take over the property Jan. 6, and it’s anticipated that demolition of the existing building will occur soon after. Construction of the new tower will begin in April. The prospective tenants include lawyers, accountants and financial institutions. “We’ve had some discussions but I won’t mention with who,” said Oldacker.

Tuesday, July 29, 2008

Vernon airport in danger

by Kelly Hayes & Wayne Moore - Jul 29, 2008

Vernon's airport could be shutdown if owners of a small piece of land in the middle of the runway don't get a new lease by July 31. The lease expired in March 2006 and family spokesperson, Cindy Brewer, says the City of Vernon has been dragging its feet since then. "Two years have gone by and they have not made a very good effort to get this resolved," says Brewer. "They have said if we don't sign the lease agreement according to their terms and conditions, they won't provide services to the adjacent property. There's about 15 acres there for development. They shouldn't be doing that." Property owner John Jack and Brewer are both members of the Okanagan Indian Band. The property in question is situated on Reserve Number 6. Brewer says there has been a deal in place with the City of Vernon for the land for well over 30 years.

She says an appraisal was done when the lease expired in 2006 and says they are requesting a reasonable sum, as per the appraisal. Brewer says if the City of Vernon doesn't come forward with an acceptable lease by July 31, then the lease will be terminated by August 31. "It's not something we look forward to but if we can't come to an agreement, that's what we would have to do. There are other businesses that have lease agreements with the city that are surrounding the airport. It would impact them as well." Vernon Mayor, Wayne Lippert says the city has been doing its due diligence in trying to come to an agreement with Jack. "I don't know where this has come from or why, but we've had discussions with Edmund Gus, the Okanagan Indian Band Administrator this morning and I'm hopeful everything will get resolved," says Lippert. "We've had agreements in place up until about 18 months ago. We're still happy with the original deal and we've been paying as if we were working with the new agreement."

Lippert says while he hopes it doesn't come to this, Jack could effectively shut down the airport. "Anything is possible. It would still be an airport but essentially it would restrict the use of what could go in there. No airplanes could land, but we have businesses that have helicopters, so it would be a large helipad I guess." Brewer says all the owners want is what's fair. She claims they even agreed to take less than the appraised value if the city were to pre-pay the amount within a short period of time. "It was the city that proposed that." She says that was in early July, and by July 22, they said they would not pay the amount they themselves had suggested and were not going to pay any type of advance on the payment.

Another crash at high profile intersection

By Peter McIntyre 107.5 KISSFM

There's been another crash at a dangerous Vernon intersection. RCMP say a Mazda and Honda collided at 20-th Street and 43-rd Avenue Friday night, the site where a Vernon cabbie was killed by a suspected drunk driver earlier this year. Police say the Mazda driven by a Vernon female was slowly trying to cross at 20-th Street when her car hit the Honda which ended up on a residential fence. Three people suffered minor injuries and police are investigating if charges will be laid. Vernon city council has held several discussions about what to do with the intersection, and recently flip-flopped by deciding to install traffic calming devices instead of a four way stop.

Airport lease dispute

By Kevin Rothwell/Peter McIntyre 107.5 KISSFM

Air traffic into the Vernon airport could be halted by the end of August if a new lease isn't worked out with the owners of part of the airport land. The City has been leasing part of the land from Okanagan first nation members Cindy Brewer and John Jack. Brewer says they've given the city a month's notice before terminating the month to month lease. "There are a lot of other businesses down there that would be affected byu it and we don't want to cause them any hardship but at the same time we feel we need to be treated fairly and at this time, we feel we're not being taken seriously." Brewer claims the city has threatened to cut off water and sewer to one of their adjacent properties if they don't re-sign. "The last agreement they submitted, they said if we did not sign on their terms that they will not provide our adjacent property with water and septic service and to me that almost on the bridge of blackmail."

Mayor Wayne Lippert denies the city has used heavy handed tactics. "The city of Vernon has always agreed to make payments. We've offered to make them a year in advance or five years in advance as long as they provide us with a lease to sign." Lippert says the city has been making lease payments of $50,000 a month, double the amount of the intial lease agreement, since the end of the last deal in 2006. Lippert is confident a new 49 year lease will be worked out before the August 31-st deadline.

Airport Lease Up

Starlee Speers, Astral Media Radio - Vernon

The owners of a portion of the lands Vernon airport is operating on says they're terminating the city's lease. Cindy Brewer says she and her husband have been in negotiations with the city since 2006 and and now they've lost patience and have now been left with no alternative. Brewer says an agreement was reached in mid July but the city has since retracted their offer and refused to pay. She says they've now been told if they don't sign an agreement the city will no longer provide water and sewage services to their adjacent property. She says that's blackmail and the city's lease will be terminated as of August 31st. Brewer says they won't be bullied by the city. The property in question is located in the centre of the actual airport runway.

Vernon Mayor Wayne Lippert says, negotiations are not just with John Jack for the airport lease. Lippert says, the city isn't withholding money but they can't write a cheque without a signed lease agreement. He says Indian and North Affairs Canada also plays a role in talks which are lengthy, because it's a 49 year lease. Lippert says, negotiations for the sewer and water service are separate from the airport lease and there's no intent to threaten or blackmail from the city's standpoint.

Petition demands roundabout halt

by Peter McIntyre 107.5 kissfm

Vernon city council is being asked to halt plans for a new roundabout in Easthill. A representative for dentist Dr. Karl Denk presented city council with a 296 name petition from patients and area residents Monday. They want the plan for a traffic circle at 32nd Ave and Pleasant Valley Road scrapped, citing concerns about the cost, the impact to the dental business, and the trouble drivers will have with it. Councillor Barry Beardsell feels the city should stick with its decision. "I think the city made up it's mind. I've looked at the petition.I 've looked at the wording on it and I have considered it. It has not changed my mind." Mayor Wayne Lippert, who was against the roundabout in the original vote, disagrees with revisiting the issue. "At this point in time, the roundabout will go ahead. Regardless of whether I think it should or not, the majority of council decided it should, and the procedural bylaw says that's what will happen and that's what we need to follow." Easthill resident Larry Lundgren told council, opponents to the circle won't go down lightly, and could take legal action. The elected reps will debate the issue at the city's August 11-th meeting.

Hesperia Presentation on Monday Brings some answers.

Mr. Ken Stewart, President of the Hesperia Development Corp which is a 100% owned company with one shareholder, namely the City of Vernon addressed Council on Monday and answered the 8 written questions submitted by Councillor Beardsell (the rest of Council had no questions). He then went on and answered the questions and observations submitted by the Vernon Taxpayers Association.

The questions were answered in the above order and after the presentation there were few questions from the Council and none allowed from the attentive audience that had gathered to hear these answers. There were no questions allowed because this had not been advertised as a public input session and consequently none could be heard under that particular section of the community charter. The Hesperia President had concluded his remarks by inviting questions both from the Council members and the audience but he was stymied from taking audience questions directly at this time.

He did invite further questions to be sent to Hesperia by phone at 250-540-0720 or e-mail: hesperiadevelopment@shaw.ca

These contract details were listed on the 4 page handout entitled Hesperia Land -Planning for Attainable Housing.

The answers to the submitted questions elicited responses that were illuminating in some regards, troubling with regards the interface between the Corporation and the real shareholders (the taxpayers of Vernon) that will reveal the progress of this new housing initiative, and informative of what the perceived mandate of this arms length new corporation is from the corporations viewpoint. Some of the figures cited were too broad ranged for my liking and the DCC figures and their expected costs or credits bear much more scrutiny if they are to be accepted as part of a valid business reason for continuing this venture.

While I learned some new facts and figures and projections I will still have to await the answer to my main concern, the appraisal of the value of 69 acres of land if sold at highest use configuration. There was acknowledgment during the questioning that there was an appraisal done by a local appraiser (R.Mc) and this appraisal will be given to interested members of council. As this was a City appraisal the President of Hesperia was in no position to authorize its release to the public and any such release would have to be authorized by the Council.

It is my hope that the City will publish the answers to these questions asap on their website. This will enable the public to judge the validity and value of this new enterprise.

A publicly released copy of the actual appraisal so we can determine if there is any subsidy for these housing units would be important. The President of Hesperia maintains that there is no subsidy and while this might turn out to be a semantic argument I still must maintain that if the projected dividends and revenue eventually returned to to the City in the future is less than what the City could pocket now if the Land was sold to the highest bidder then the difference is a subsidy.

It is then up to Council to decide if that subsidy should be paid to obtain x number of units of attainable housing of if that amount of subsidy money could be better used as matching monies to built affordable and senior government sponsored housing.

Remember the Attainable Housing envisioned in this proposal is to provide housing that is attainable by a target population whose family income is $56,000 to 100,000.

It was also mentioned that the Hesperia Corporations had already had produced its first year audited financial statements. It would be beneficial if these statements could be produced on the City's website. (They were probably consolidated into the full financial statements of the City but the breakout of the original must be available for publication.)

Please feel free to add comments to this posting.

Replay the 2005 Municipal Election in Vernon. Less than 17 hours to vote!

In order to show your satisfaction with your selections in the 2005 Municipal Election, Have some fun and remake your selections in the Poll at the right side of the page. Names are in Random order, mostly alphabetical with your vote totals in 2005 following their name. ReVote Election Closes in less than a day.

It's like voting in a Mulligan Election!

Remember vote wisely this time as the results may influence the Decision to Participate of some of these people in the November 2008 election !

Monday, July 28, 2008

Another crash

- CHBC Video
Web posted on Monday, 28 July 2008

Some Vernon residents say the city isn't doing enough to safeguard a dangerous intersection.

Kin Beach closed to public

By Kevin Rothwell 107.5 KISSFM

Kin Beach park in Okanagan Landing is cordoned off this morning. Greater Vernon Parks and Recreation Manager Al McNiven explains why. "The Kin Beach property will be closed (for now). There was a sewer line breakout in the Okanagan Landing area (Sunday) night and there's some concern that some of it got into the creek so we're shutting down the beach until we have a chance to so water tests and send them in and confirm everything is fine." McNiven says they will run water tests as soon as possible to determine when the park can be re-opened and if there was an contamination of the creek.

B.C. company under probe counts MPs as shareholders

Glen McGregor, Canwest News Service Published: Monday, July 28, 2008 (Full Story)

OTTAWA - A B. C. company accused of providing false and misleading financial information to investors has counted an estimated 50 MPs as shareholders, according to its cofounder, former New Democrat politician Nelson Riis. Canadian Rockport Homes, a firm that builds low-cost concrete homes in the developing world, is the subject of a British Columbia Securities Commission hearing into allegations it gave out "overly optimistic" revenue projections for the start-up. The allegations have not been proven. Mr. Riis helped launch the company after he was defeated in the 2000 election and approached many of his former colleagues in the House of Commons to invest, including one who now sits in Cabinet.

Royal Host sells Grand Okanagan resort in B.C. for $131 million

CALGARY — Royal Host Real Estate Investment Trust (TSX:RYL.UN), a Calgary-based hotel owner, says it has finalized a deal to sell the Grand Okanagan Lakefront Resort and Conference Centre in Kelowna, B.C. for $131 million. Royal Host will book a $78 million gain on the sale, slated to close Aug. 14, the Calgary trust said Monday. The real estate company did not identify the buyer of the Kelowna property.

Council Preview

Betty Selin, Astral Media Radio - Vernon July 28

More discussion is expected at Vernon City Council today regarding a roundabout planned for 32nd Avenue and Pleasant Valley Road. City staff say there was a 56% increase in injury accidents at that intersection between 1998 and 2006 and traffic circles tend to reduce accidents by 77 per cent. Council will be getting a petition from a dentist who's office is in the area.

The Vernon taxpayer's association say council either knows all the answers or they're not concerned about the handling of taxpayer's money by the Hesperia Development Corporation. The group made a presentation to council two weeks ago, but say there's been no response and instead of putting the issue on the regular agenda it will be dealt with at a special Committee of the Whole, where no one from the public can speak.

Hesperia Questions to be answered to determine Taxpayer Subsidy to attainable housing ! Answers today at 4:30 at City Hall ??

Fill in the missing number and it can be easily determined if the subsidy we will be giving is a wise use of our money or whether it can be better leveraged elsewhere to obtain more units of affordable housing.

Maximum Return = X (market value of 69 acres)
Return Now Projected = $19,970,649
Subsidy Implied = Difference.

When we are informed of the real value that these lands would realize on the open market if sold to developers and the number of units of attainable housing that are projected for the Hesperia Development, we can stop this speculation and be in a position to make an informed decision about whether this project should proceed.

Basically the taxpayer of the City will receive a total of $22,578,000 ($19,578,000 in 'dividends' and $3,000,000 for Land). (Present value of this deal in 2008 $'s is $19,970,649). (Dividend present value at 2% is $17,253,457 at 3% is $16,212,881 Land Present value at 2% is 2,717,192 at 3% is 2,587,826.) This is our return from the initial cash flow projections.

The sales value of 69 acres on the open market with the same highest use zoning as is envisioned on the Hesperia Land Project now is the Taxpayers maximum return on this taxpayer's asset.

The # of attainable housing units is the number of units that would not have been built in the medium 1/3 (Lowest scale of medium, moderate and high) if the Land was not controlled by the Vernon controlled subsidiary the Hesperia Land Corp.

When the average person can clearly say, we will give up "x" number of dollars if we develop that land rather than sell it to developers BUT we will get "y" number of attainable housing units and I think that is fair, then the deal should be made. When the average Councillor can actually say and understand that, than then and only then should they actually vote on this deal.

This is a political decision regarding the use of taxpayers assets and Council should assure themselves that can defend their decision by explaining the financial benefits that we will gain and this can only be done if all these facts are debated in an open Council Meeting with all financial projections made available to the public.
--------------------------------

PROVINCE FUNDS AFFORDABLE HOUSING IN VERNON

At the above posting it is indicated that the 2.348 acres of land that was contributed by the city was valued at $900,000. This would make each acre worth $383,304. The 40 units of affordable housing would make each unit's land cost to the city's taxpayers to be $22,500. (Sounds like a good deal because City is leasing this land to this project and will retain ownership and any further capital appreciation !) (The city will provide a 60-year lease to the society for a nominal amount)


WHAT WILL BE THE DIFFERENCE IN SUBSIDY BETWEEN "AFFORDABLE" HOUSING AND "ATTAINABLE " HOUSING ??

Metro Vancouver changes emission fee rules

CBC Monday July 28

Metro Vancouver is changing the way it charges fees to companies that produce industrial emissions. In a policy shift that takes effect immediately, the costs companies pay will be based on the type of emissions they discharge, not simply on the amount of the discharge. Under the old system, "two facilities could be paying very similar fees and distributing vastly different amounts of material and vastly different harmfulness," Raymond Robb, a regulation and enforcement manager with Metro Vancouver, told CBC News. But under the new rules, the more harmful the emissions, the higher the price per tonne of contaminant, said Port Moody Mayor Joe Trasolini, chair of the environment and energy committee of Metro Vancouver. The new system "imposes higher fees for more dangerous contaminants that are emitted," Trasolini said. "For example, if you're emitting dust, that's one thing. But if you're emitting more dangerous contaminants, then the fee changes."

Trasolini said that while the intent of the new regulations is to improve air quality, he couldn't guarantee that would be the result. However, he added, they will at least "safeguard the quality of air we have."Greenhouses and farms in the Lower Mainland will be exempt from the new emission policy, at least until Metro Vancouver staff can prepare a report for the board on the types of pollutants they expel.

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Don Quixote Note: These fees are similar to our fees or surcharges for the discharge of High Strength Wastes into our sewer system.

OKANAGAN SPRING BREWERY ENFORCEMENT AGREEMENT
(i) THAT the Enforcement Agreement between the City of Vernon and Sleeman Breweries Ltd. be extended to June 30, 2008, to allow for further modifications to the facilities and operation of the Okanagan Springs Brewery;

This extension has expired and it is expected that the surcharges kicked in on July 1 ? This will bring in an estimated $150,000 ++ to sewer revenues. ??

Nurses help ease doctor shortage

By Don Plant Sunday, July 27, 2008 Penticton Herald
Interior Health has a new weapon to fight the shortage of family doctors. Fourteen nurse practitioners are now caring for patients in the health region – six of them in the Okanagan. The specialized nurses can diagnose problems, prescribe medications and order tests for patients who might not otherwise get to see a doctor. “It‘s a new, evolving role,” said Fairleth McCuaig, a faculty member at UBC and a nurse practitioner at the Downtown Primary Care Centre in Vernon this summer. “It‘s an exciting role, an autonomous role. I really see it as a growing profession.” Nurse practitioners are registered nurses with two extra years of training at the master‘s-degree level. They can manage common acute illnesses, like ear infections, and chronic conditions, such as diabetes. They order X-rays, blood work and electrocardiograms for heart conditions. They refer patients to surgeons, cardiologists and other specialists. They don‘t replace doctors. Rather, they collaborate with them. McCuaig treats homeless people in downtown Vernon. Except for visits from a family doctor to the centre two mornings a week, she works full time on her own.

Wayne Senner, a nurse practitioner in Kelowna, looks after patients who‘ve undergone thoracic surgery at Kelowna General Hospital. He does the rounds at the hospital and works with three thoracic surgeons at a nearby clinic. “A lot of patients we treat are from out of town and don‘t have a family physician,” Senner said. “A physician doesn‘t necessarily have to deal with (patients‘) problems when a nurse practitioner is quite capable of dealing with those patients.” The shortage of family physicians is especially acute in rural parts of the Interior. A nurse practitioner now works at the Primary Healthcare Centre in Enderby. The nurses aren‘t taking jobs away from doctors, said McCuaig, but expanding their role to benefit patients. “There was a primary-heath-care crisis,” she said. “There are many orphaned patients in B.C. who don‘t have a family physician. “I‘m excited. Nurses are very well educated.”

B.C., one of the last provinces to introduce nurse practitioners, now has 100 working in the province. Linda Sawchenko, who recruits nurse practitioners for IH, said they‘re a “very positive addition” to the health-care system. “A physician colleague told me recently, ’It‘s so nice to have someone else to share the workload with,‘” she said. “It‘s a huge benefit to the public.” The province gave $80 million to all health authorities to expand the role of nurse practitioners. Their salary is about $90,000, plus benefits. The first class of nurse practitioners graduated from UBC and the University of Victoria in 2005. The program is also available at the University of Northern B.C. Health Minister George Abbott expects about 45 nurse practitioners to graduate each year.

Sunday, July 27, 2008

Vernon to enter into a "Scheme" with Kelowna, Westbank and Penticton.

THE CORPORATION OF THE CITY OF VERNON BYLAW NUMBER 5154 (p107) Agenda Package - 10.4MB
A bylaw to establish an intermunicipal services scheme.
WHEREAS the Intermunicipal Participants, for the benefit of the inhabitants of the Okanagan, have agreed to establish an intermunicipal scheme in relation to a number of matters for which they have authority under the Community Charter or the Local Government Act

FIRST, SECOND AND THIRD READINGS Agenda - 228Kb
(ii) THAT Bylaw #5154, ‘Intermunicipal Service and Regulation Bylaw Number 5154, 2008” – a bylaw to establish an intermunicipal services scheme, be read a first, second and
third time. (P. 107)
  • Memo dated July 23, 2008, from Mr. Leon Gous, Chief Administrative Officer, re: Intermunicipal Service and Regulation Bylaw. (P. 120) Agenda Package - 10.4MB
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Don Quixote Note: This part of the Agenda caught my eye when the word "scheme" was used. The Miriam Oxford dictionary has several definitions of this word and I choose to believe that my Council is using the ' a systematic or organized configuration' definition rather than the one most of us automatically think of i.e. 'a plan or program of action; especially : a crafty or secret one'

I checked with the Community Charter and the words are there. '
Under Division 3 of Part 2, two or more municipalities may, by bylaw of each participating council, establish an inter-municipal scheme. The scheme may provide for certain functions of one municipality to be exercised in another municipality, such as a service or regulation.' It is in the Partnering with Local Government section.

Our CEO Mr. Gous in his letter to council on Page 120 was more circumspect and careful with his choice of language to describe this Political Arrangement.

'Council, at the May 12th meeting, passed the following resolution after a discussion regarding the benefits of an inter-municipal partnership with Kelowna, Westside and Penticton:
"That Council supports entering into an Intermunicipal Service and Regulatory Authority Bylaw with the City of Kelowna, the City of Penticton and the District of Westside, for affordable housing, Climate Action, Sustainable Development, Transit and Harmonization of Regulations."
Since that time, the four CAOs have been working to develop a bylaw that would meet the goals of the proposed partnership and the Mayors have met to discuss ongoing issues that fall under the intended scope of the partnership.'

Hesperia President to provide answers to Council Question on Monday at 4:30

DELEGATION – QUESTIONS OF COUNCIL – HESPERIA DEVELOPMENT CORPORATION
(4:30 PM) (P. 34) Agenda Package - 1.63MB
A. Mr. Ken Stewart, President, Hesperia Development Corporation (HDC) re: Questions of Council Regarding HDC

'THAT Council requests the Hesperia Development corporation provide responses to the
following questions regarding the Hesperia Development:
1) is the affordability ratio, presented by Ms. Flick's memo of March 10th, indicating 1/3 - medium, income; 1/3 moderate and 1/3 above applicable, and if so, how many units in each class would this represent?
2) Is the norm for this development costing 1/3 land, 1/3 costs and 1/3 profit, applicable?
3) Why is the revenue of only $38 million? Provide breakdown, costs and donation of land.
4) Why the decrease from $47 million previously indicated?
5) Why $2 million in DCC's?
6) How was the appraisal of the property done?
7) lf offered for sale to the Development Community, would it be for high density development? What is anticipated? What zoning is being included in the financial plan, ie units per acres?
8) Letter of Credit to the ALR, is it a 5 year plan and contingent on anything?
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Don Quixote Note: It appears that the answers to Council's questions will be forthcoming at a COW meeting that will be reopened after regular Council meeting on Monday afternoon. Expected time to hear these answers is slated for 4.30 PM.

The Vernon And District Taxpayers questions appear on the regular agenda at P.75
Agenda Package - 10.4MB under unfinished Business. Whether their questions will be answered at this time or deferred to the 4:30 COW meeting is left unanswered.

The President of Hesperia did have a 2 hour meeting at City Hall last Thursday and hopefully this will provide sufficient preparation to provide some clarity to the Hesperia Project.

Municipalities and the BNA Act.

An Act for the Union of Canada, Nova Scotia, and New Brunswick, and the Government thereof; and for Purposes connected therewith.

Did you know that the only mention of 'municipalities' in the BNA Act (now the The Constitution Act, 1867) is in THE FOURTH SCHEDULE. (Assets to be the Property of Ontario and Quebec conjointly.)

Municipalities share the same schedule as another more well established place of gathering at that time namely "
Lunatic Asylums."
Wire, briar, limber-lock
Three geese in a flock
One flew east, one flew west
And one flew over the cuckoo's nest.

Westside cop shop moving ahead

by Castanet Staff - Jul 27, 2008
Construction on the new Westside RCMP detachment is expected to begin near the end of August. The 16,000 square foot building, on the site of the Westbank Chamber of Commerce, will replace the current 2,000 square foot space the RCMP currently occupy. The Regional District purchased the land for the new building in 2005. The cost of the project, initially pegged at just over $8.2 million, is now estimated to cost $8.8 million. Rising construction costs account for most of the additional $600,000. Mike Hickman with Omicron, designers of the building, says a firm budget will be established once all tenders have been awarded in early August. He adds the hot local construction market has created some challenges in getting qualified bidders for some of the construction work. "There are fewer bidders available because many of them are busy and it often reduces the number of preferred bidders because obviously preferred bidders tend to be busier than non-preferred bidders," says Hickman. "The available bidders then pick the work they want to do and exclude the work they don't."

The new detachment will not include cells, meaning individuals arrested in Westside will still be transported to jail cells in the main Kelowna detachment. The building has been designed to allow for the inclusion of cells at a later date. Acting Mayor, Duane Ophus, says he's pleased progress is being made on the building. "We'd like to see things move along a little bit quicker, but it seems to be coming together now," says Ophus. "If this comes back to council in August, I think we'll be able to make a decision that we can move forward on." No date has been announced for completion.
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Don Quixote Note: This estimate works out to $550 per sq. ft. and does not include cells at this time although building will be designed for later inclusion. This is up from the $512.50 per sq. ft. initial projection

Vernon Taxpayer Association Questions of July 14 on HESPERIA Land Development

Taxpayers of Vernon are deeply concerned at the secretive operational style of the Hesperia Development Corporation. The City of Vernon owns 100/" of the shares in the Corporation meaning that the shares are legally held by the taxpayers and yet:
1. There is no decision on whether the City will continue to own the land after development and what part the City will play in the development of both the 'attainable housing' and the market housing. To date - 125 units are listed as attainable and 875 units are listed as
market housing
2. There is no public input or public hearings on the actual business plan for the Hesperia Development or the workings of the Hesperia Development Corporation. The only public hearing will concern the rezoning in the tall, too late to influence the planning.
3. There is no revelation of the true market value of the taxpayers' 69 acres of land that has been transferred to this the Hesperia Development Corporation. lf there is a certified appraisal, it has not been made public, What can you get for a family for $870/month??!!
4. There is no information as to what the taxpayers will be spending to subsidize the 125 units of 'attainable housing'; also there is no clear definition of what 'attainable housing' means in the context of this development.
Definition of Attainable Housing:
According to the CMHC definition, is households are in the core housing need if they cannot find somewhere to live that is in reasonably good condition and is big enough for their household without spending more than 30% of their gross income. An acceptable benchmark of affordability is thirty percent of the median household income, $34,793 per year or roughly $15.00 per hour; therefore housing costs should not exceed $870 per month."
5. What safeguards are in place to ensure that all profits accrued by this corporation will be audited and returned to the city coffers. We request a transparent and viable business plan.
6. ls the city of Vernon to be the sole beneficiary of these profits and if so what are the proposals we taxpayers are given to consider? Taxpayers are deeply concerned about the use of our tax dollars to pay' directors' fees', planners' fees, development costs, project manager's fees, etc. without any transparency or accountability. As shareholders the taxpayers of Vernon are entitled to full disclosure as required by law.

We, the Citizens of Vernon, demand:
1. The market research and business plan that proves this development is a needed, viable and profitable operation to the Citizens of Vernon;
2. A compilation of the input that was provided at the one and only public meeting in May 2008;
3. As shareholders, the reports submitted to Council by the Corporation and minutes of its meetings;
4. The impact studies relating to the quality and quantity of the water supply;
5. The financial impact on Vernon taxpayers;
6. To know if the Corporation will be making money on the sale or lease of lots and/or housing;
7. To know whether the project will be contracted out by the bidding process or will it be given to one contractor;
8. Full disclosure and transparency on all the business conducted within this Corporation ;
9. To know who appointed the Directors of this Corporation, on what basis and why do we have realtors and developers and people who don't live in Vernon running our real estate projects;
10. To know why a citizen was told by Councilor Cunningham, "There are no options on development, just public input into some of the details";
11. To know why this project is supported by Council when it flies in the face of the Official Community Plan and the anti-sprawl sentiment within the Vernon Community and the Okanagan Valley as a whole;
12. That public meetings be arranged and held immediately to clarify the covert nature of this enterprise.