BEYOND THE HEADLINES: Consider social costs too

by Richard Rolke - Vernon Morning Star posted Mar 5, 2014 at 1:00 AM
When asked to provide input on Vernon’s proposed business license bylaw, many residents will respond, “I don’t have a business, it doesn’t impact me.” But they would be wrong. As you delve through details, you will find that one of the largest license fee increases would be for businesses that provide rooms for rent. “A three or four-unit complex that is currently paying $40 would pay $115 with the proposed bylaw,” states a city press release. In another case, daycares are currently paying $50 to $60 a year for a business license but that may climb to $90. Now it should be pointed out that it’s not businesses that pay higher fees. If their costs go up, businesses pass them directly on to the customers. A friend spends about $500 a month for child care/pre-school three days a week. A $90 license for her service provider will probably only translate into a few additional cents on to her overall bill, but it’s just more money coming out of the family’s already tight financial resources. In her case, both parents are working, but what about for those single-income earners raising children? Every cent counts. It should be noted that while the city is looking at hiking its fees for businesses, Vernon officials have been demanding the provincial government make child care more affordable. “The economic and business return is so powerful,” said Mayor Rob Sawatzky in October 2012 of the benefits of ensuring children develop at an early stage. “We can’t afford not to do it.” At that time, the Early Childhood Educators of B.C. told council child care costs are a significant stumbling block for many families, and the government should take action. “There’s a lot of solid science and data behind it,” said Coun. Juliette Cunningham. “We will wind up with a more educated, well-rounded workforce with stronger social networks.” Another social issue of concern for Vernon politicians has been the high price of housing. Being unable to find a place to afford has led to some people couch-surfing, living on the street or leaving town. Some businesses have faced difficulties luring new employees to Vernon because renting or buying a house is out of reach.  “It’s still a challenge for people with limited resources to find suitable accommodations,” said Cunningham in June 2013. But, through the proposed bylaw, anyone with three rooms for rent, will see their business license go from $40 to $115. That means rent will climb. Now the city explains that business license fees will drop for many businesses such as graphic design, lawyers, photographers and computer care, and while that is great, child care and housing are as essential as milk and bread. As part of defending its plan, the city insists business licenses are not a tax but a cost recovery for services provided by the city. “These services can include, but are not limited to, review by building, planning, fire and bylaw compliance,” states the city release. Obviously, no one wants the city to go broke providing services as everyone is a taxpayer, whether they rent a single room or own a home. But it appears the anticipated boost faced by child care operators and landlords goes directly against the city’s previous stance on some critical social issues.

Ironman bid draws debate

By Richard Rolke - Vernon Morning Star Published: September 12, 2012 1:00 AM
Bureaucratic hurdles are part of pre-Ironman training. Vernon council instructed staff Monday afternoon to prepare a bid package to host Ironman Canada. But a decision on submitting the proposal to Ironman’s parent company won’t be made until Sept. 21. “There are still some gaps we need to fill in,” said Coun. Brian Quiring. Among the issues staff has been asked to look at are finding a major sponsor, bringing regional jurisdictions on board, developing a budget and how to recruit upwards of 4,000 volunteers. “There’s a short period of time (submission deadline is Sept. 24) and a comprehensive bid needs to be put together,” said Quiring. But support for seeking the international event certainly exists. “I’d like us to proceed on a request for proposals even if we can’t find a local sponsor in 10 days,” said Coun. Mary-Jo O’Keefe. The potential economic impact to the host community is $10 to $15 million a year, with many of the benefits coming in the hospitality sector. However, the host community is responsible for a number of items including public works, policing, road services, lifeguards, medical services, waste management and security. A staff report says the minimum budget obligation is about $400,000 a year. Coun. Bob Spiers questions some of the information provided by Ironman’s parent company. “We don’t have 200 police officers within 1,000 miles of this place. Even if we did have 200 officers, that is $130,000 minimum,” he said. There are also questions as to why Penticton severed its ties with Ironman after 30 years. “There had to have been some significant issues for them to go away from Ironman,” said Coun. Juliette Cunningham. Ironman in Vernon could also be held at the same time as a new event in Penticton, which could impact the availability of athletes and volunteers. As part of discussions Monday, council heard from local running enthusiasts. “We have everything it takes to put this on,” said Melissa Spooner, an Ironman champion. “This is a once in a lifetime opportunity. Vernon needs this, Vernon wants this.” Support for the bid also came from Ingrid Dilschneider, director of sales and marketing at Predator Ridge Resort. “It will have a positive economic impact on Vernon. Vernon needs a win and we believe this is a win,” she said.

Politicians discuss company’s future

By Richard Rolke - Vernon Morning Star - May 30, 2008

Efforts are underway to try and keep a large employer firmly in Vernon. North Okanagan Regional District officials met Wednesday with Sutherland Global Services to ensure the call centre and its 150 jobs will remain in place. “There’s concerns about Sutherland possibly closing and moving because it’s happened in other Okanagan communities,” said Mayor Wayne Lippert. “We wanted to verify what their plans are and to let them know that we are willing to work with them to address any issues.” Sutherland officials insist there aren’t plans to close the operation, but they admit there are financial pressures. “Sutherland is challenged with the ever changing foreign exchange rate and the increasing cost of doing business in Canada,” said Tom Stuewe, senior vice-president, in a written statement from his New York office. “This is multiplied in Vernon by a lack of affordable housing or training programs.” Specifically, the strength of the Canadian dollar makes it difficult to attract foreign clients, when call centre services are less costly in countries such as India. “The big issue is trying to get the right client in here that will pay for the service,” said Lippert.

One option that was discussed Wednesday is providing call centre services to Canadian-based companies so labour costs and the value of the dollar aren’t factors. “Sutherland is currently running a marketing campaign specifically targeted to attract Canadian businesses to our Canadian locations,” said Stuewe. Sutherland has promised to bring back some information to NORD, and then the regional district will look at how to handle the situation. “We want to be proactive and if there is something we can do, we should do it,” said Jerry Oglow, NORD chairman. Oglow has suggested that discussions may be needed with the provincial government. Lippert also agrees that civic leaders should be accessing their contacts. “We have opportunities to open certain doors that private business always can’t,” he said. Sutherland’s operations in Ontario have worked with governments there to create apprenticeship programs. “These programs create a deep pool of candidates and a community wide relationship with the cities. Sutherland would welcome this type of program in Vernon,” said Stuewe. Lippert insists that it’s crucial to keep people employed at Sutherland.“It’s more effective to try and keep an employer than let them go and try and recruit a new one,” he said.

Lippert asks businesses to speak up

By Tyler Olsen - Vernon Morning Star - February 17, 2008

The City of Vernon is hoping businesses will make their voices heard as the municipality works to adapt to a new reality in the 21st century, Mayor Wayne Lippert told a large business crowd Tuesday at the Greater Vernon Chamber of Commerce’s annual mayors’ breakfast.“We’re looking at ways to give you more of a voice on different committees so we can hear what you have to say,” said Lippert. He said the city is working on a new official community plan that will look to go beyond land use issues by looking further down the road to try and craft a well-planned city. “We want to have a community that we all are proud to live in,” said Lippert. “I’m pretty positive about where we’ve come to and where we’re going. I want to see this community grow because growth and development are necessary.”Chamber members were asked to make their voices heard on the city’s transportation options and Lippert spoke about the importance of moving people around town while at the same time making it easier for residents to leave their cars at home. And he added, “Bypasses are just one part of our transportation plan and I want you all to remember that.”Lippert also noted that work with Telus may bring improved Internet and wireless access to Vernon soon and touted success in making the downtown core safer.The difference between walking downtown today and a couple years ago, Lippert said, “is night and day,” pointing to activities in Cenotaph Park, although he conceded there is still work to be done. Meanwhile, the regional district’s industrial growth strategy is trying to identify land for new industries in the area, whether in Spallumcheen, Lumby, or somewhere else. Lippert said industrial land may be hard to come by but it is not the only thing prospective businesses need.“They’re very, very much interested in what the amenities of the community are,” he said. That means activities, shopping outlets and homes for both middle-class workers and high-paid managers.

Earlier, Coldstream Mayor Gary Corner told the audience his municipality has targeted three areas for commercial growth – the town centre, the area near the lakeshore and a parcel of land near Highway 97 and Aberdeen Road, where a mall has been planned for sometime. Corner said the property’s owner is currently seeking a major food anchor before the project goes ahead. Corner, who is chairman of the Greater Vernon Services Committee, also presented the area’s economic outlook for the coming year and beyond. The outlook, which was drafted by economic development manager Denny Raincock, forecasts good business conditions through 2009 and moderately strong population growth. Job growth should be robust, it said, led by construction, non-forest product manufacturing and retail and wholesale trade. And it said Vernon is forecast to have the lowest unemployment rate and tightest labour market in the Okanagan. The report also mentions the need for more campground spots and improved lake access.

UBC-Okanagan Dean of Management Ian Stuart kicked off the event with a less positive outlook.“I think this particular year is going to be a very challenging one for businesses and services in the area,” said Stuart. The economy “really is a U.S.-Canada issue and obviously, with the amount of trade we do with the U.S. and import from the U.S., it has significant implications.“The best thing you can do is take a good hard look at the service you offer and products you manufacture and try to differentiate yourself as much as possible.”

The Business Assist Factor in Vernon 2007

Click on Table to enlarge
What is the effect of having business in our city? As we increase our non-residential tax base do we reduce the tax burden on residential tax payers? The tables show the effect that Business (etc) has on our residential tax rate. The higher the assist factor the more taxes are reduced to the residential taxpayer. The first table illustrates the progress in Vernon from 2001 to 2007. (The business assist factor © is a way of measuring how increased non residential property assessments in our community affects the residential tax base. It is a different measure than the tax ratio method although there is some correlation.) The second table shows our relative standing with other cities in 2007.

The business assist factor is easily calculated by taking the % total Assessment of the Residential class, subtracting the % total taxes paid and expressing that product result as a % of total assessment.( (%Ass-%Tax) /Total Ass.)

Since 2001 the Non Residential Class (Business, industry, utilities etc.) has tended to trend upward indicating that they were shouldering a bigger part of the tax burden and helping the residential tax class. This trend was stopped abruptly in 2007 when the Residential Tax Class was hit with a 4.95% tax increase while the Business tax class was the beneficiary of a 6.6% tax decrease.

Who's hot, who's not on Vernon council ! Bulldog UBCM Bound ??

http://www.dailycourier.ca/ – Editorial Wed. June 13

-managing editor Scott Neufeld

After a long stay on the cold list Coun. Buffy Baumbrough finds herself on the hot list for stepping up in Coun. Juliette Cunningham’s absence. Baumbrough was far more talkative Monday than at most meetings, expressing her opinions and generally picking up the slack. We’ll have to wait for the next meeting to see whether this is a trend or merely a blip.

Coun. Jack Gilroy earns another cold rating as he stayed silent throughout the entire council meeting. It’s no easy task to not speak for more than three hours but Gilroy manages to do it on a regular basis. However, Gilroy and Coun. Barry Beardsell earn approval for colour-co-ordinating their blue shirts at the meeting.

Speaking of Beardsell, he’s on the hot list this week for proposing to push the issue of hospital funding to the next Union of B.C. Municipalities meeting. Often a critic of the group, Beardsell appears to have found a good avenue to raise the contentious issue. Beardsell should consider attending the gathering to really drive the issue home.

Also on the hot list this week is Mayor Wayne Lippert who continues to impress with his ability to direct meetings and keep them moving at a steady pace. In particular he cut off two homeless activists who tried to cause another disturbance at council. He stopped them short saying that
there are proper avenues to address council and this isn’t one of them. But if these activists do try other avenues council needs to be more helpful than they have been.

Coun. Pat Cochrane is on the cold list this week for being one of the main proponents of giving the O’Keefe Ranch more money. Although the ranch desperately needs the money for repairs, council was not critical enough of the ranch’s finances. There are too many unanswered questions. Add to that the fact that they are running a deficit this year mainly because they didn’t stick to their budget. Council and Cochrane should have taken that into consideration when handing over the funds.

Landing on the hot list this week is Coun. Patrick Nicol who brought up a hot topic at the meeting. In discussing a development variance request for an Okanagan Lake project, Nicol wondered if every homeowner would be seeking a variance. The city has received a steady volume of requests from owners who want to build closer to the lake than bylaws allow. Too often the city approves these requests. However, what needs to be taken into account is the overall benefit to the community. How does it benefit Vernon as a whole if home after home is
built too close to the lake. Council and city staff need to take a tougher stand to ensure that development regulations are adhered to and not bent or broken.
Click on cartoon to enlarge:

Three funds look to join CPP, bypassing Teachers in BCE hunt

SINCLAIR STEWART Globe and Mail April 23, 2007 Report on Business (Full Story)

Three more pension funds are prepared to throw their support behind the Canadian Pension Plan Investment Board's proposed takeover of BCE Inc [BCE-T]., a move that could deal a significant blow to other potential bidders for the country's largest telecommunications company. Ontario Municipal Employees Retirement Board, B.C. Investment Management Corp., and Alberta Investment Management have expressed interest in joining a bidding consortium that already includes the CPP, U.S. buyout firm Kohlberg Kravis Roberts & Co. and Quebec's Caisse de dépôt et placement du Québec, said sources close to the talks.

No formal agreement has been signed yet, but one source indicated that these additional pension funds would collectively commit between $400-million and $500-million if they are admitted to the group. That represents less than 10 per cent of the estimated $5.5-billion worth of equity needed to finance what would be the largest corporate acquisition in Canadian history. All three of these provincial funds were regarded as likely candidates to join the Ontario Teachers Pension Plan and create a rival group that would battle the CPP and KKR group for control of BCE.

Liquor store sold

http://www.vernonmorningstar.com/
The owner of Monashee’s Bar and Grill has arranged to purchase the Kalamalka Hotel and Gerry O’s Cold Beer and Wine Store. The final sale of the hotel, including the pub and liquor store, which are directly across from Monashee's, will go through in March. “It’s just a good opportunity,” said Monashee’s owner Steve Pauls. “It’s a great place and it’s kind of handy that it’s right across from us.”

College & Kal Tire Partner

Castanet by Press release - edited - Story: 22889 October 10, 2006 / 2:00 pm
A new Okanagan College-industry partnership will give Automotive Service Technician students the opportunity to combine their classroom training and hands-on practical experience with guest lectures, industry tips and job interviews from automotive leader, Kal Tire. "We are desperate for trained technicians," says Renee Pellerin, Mechanical Coordinator for Kal Tire. "By pairing two well-known organizations like the College and Kal Tire we hope to attract high-quality students who will be trained and available to enter the workforce in the near future." The seven-month program will focus on transforming students with little previous experience in automotive repair into professional tradespeople capable of seeking employment as apprentice mechanics. The program will cover all of the fundamentals of the Automotive Service Technician program and will include sessions with human resource specialists from Kal Tire who will offer information and insight into potential careers. At the end of the program students will be prepared to go to work with a range of employers, including Kal Tire.

Kal Tire expands Ontario presence

By: James MenziesVERNON, B.C. --Trucknews
Kal Tire has continued its expansion into the east, acquiring three Ontario tire companies.Kal Tire's most recent acquisitions include Timmins Tire, The Tire People and The Mississauga Tire Centre Group. The company now has branches from Victoria, B.C., north to Whitehorse and as far east as the Quebec border.Danny Funk, chief operations officer for Kal Tire's Ontario division, says the company is thrilled to be expanding its Ontario presence.