Tuesday, February 12, 2013

The Shell Game-Municipal Finances 101


Back during the deliberations on the municipal  budget for 2011. It was determined that the need existed for more administrators in the municipal office so money was placed in the budget to fill those position. The organizational chart comes out with a Manager of Corporate Services in place. By April of 2012 the position is filled, by July the position is vacant so following a logic path one would assume that this being such a priority to have this position in place, that very quickly it would be filled. Well it was not now the shell game begins, in our case it’s called making the numbers work. This position was probably somewhere in the $70,000 a year range so the fact that it was only filled for three months now means that $55,000 of those dollars are available to help make the year end look good.
Monday night I go to the Municipal open house and part two of the shell game is played, despite the fact that this job was created by this council over a year ago and had such a high priority that it was only filled for three months. They now show the job has being eliminated which get this reflects as a $70,000 savings for the 2013 budget.
Then they show two CUPE positions being eliminated for an additional savings of $100,000 a year, a warehouse position and the additional HR clerk position they created not that long ago, why create positions to turn around and eliminate them?
The next shell game is beinging for this year they are showing $70,000 in wages and $10,000 in other costs for a Economic Development Officer to be put in place from May 1 to the end of the year. It is now Feb 12 does anybody believe that you are going to be able to find an Economic Development office by May 1? It is probably very unrealistic but again it will be money that can be shuffled from one shell to another for 2013. 

Crowsnest Pass Hotel Update

In today's Crowsnest Pass Promoter is a little more information from Joni MacFarlane about the Hotel development with the financial implications included . From reading the story it appears now that the $300,000 cash we received a $100,000 is directed towards creating a green space next to the development so in all essence the Municipality is only receiving $200,000. At the end of the story is a poll for you to vote and how you feel about the deal.

http://www.crowsnestpasspromoter.com/2013/02/11/hotel-announced-for-crowsnest


Hotel announced for Crowsnest


Joni MacFarlane

A 50-75-room hotel, located at the former site of the Crowsnest Centre, was announced last week.
Medican, a Medicine Hat-based construction company and Group Vachon, a Calgary-based hotel management company, signed an agreement with the municipality to build a development that is to include a pool, hot tub, breakfast area and meeting spaces. The project will be accompanied by a complementing restaurant and sports bar as well as a green space with amenities such as a dog run and playground area.
The development group said their vision for the project is to “create a signature hotel and commercial area that will allow tourists to enjoy the numerous outdoor activities available within the Crowsnest Pass and also to create the primary rest area location between Lethbridge and Fernie”.
Medican has been in business since 1974 with a primary focus on development and construction of seniors’ residential communities and retail commercial development.
Group Vachon is a Calgary-based company with over 22 years experience in the hotel industry, building and managing properties including international brands as well as independent hotels across North America.
Details from a public open house on Feb. 12 were not available as at press time.
After the announcement was made, The Promoter spoke with Chief Administrative Officer Myron Thompson to discuss the financial details and implications for the municipality.
Thompson said the purchase price was $1.1M that includes $300,000 cash and total responsibility for the demolition and clearing of the site.
The municipality had looked at doing the demolition themselves, he explained, but it was included in the proposal from the construction company.
“We said, well fine, because that takes that risk and liability from us,” he said. “If we had to spend that $800,000 on the demolition and then get $1.1M, it’s all the same.”
Thompson said they discussed the offer with an appraisal company who said it was “very close to being at market value”. The value had decreased slightly from July 2010 when it had been appraised at $1.4M, he said.
“There was talk about giving the land away for nothing so I think it’s a good deal,” he added. “Because what it does, it develops an entire parcel of land.”
The purchase price of $300,000 is held in trust, Thompson said, and the developer will get title to the land. If they don’t meet the requirements set out in the agreement, there is a certain time period that the municipality can take the land back.
The demolition is to be completed by late summer, the foundation is to be in by late fall, and the development has to be completed within two years from the date the agreement was signed, said Thompson.
He added that Medican and Group Vachon have been working with a hotel developer and the name of this hotel will be announced within the next month.
Lethbridge architect Alvin Fritz is developing a design for the hotel.
A stand-alone restaurant will be built on the site by Medican, he added, and another restaurant will be located inside the hotel.
A separate company has been contracted to do the demolition work, but Medican is unable to confirm their name until the agreement is signed.
As part of the agreement, one-third of the funds from the sale - $100,000 – will go towards development of a green space on the northeast corner of the site, said Thompson.
This land is owned by the province and will be leased to the municipality for Medican to develop a tourist/rest stop with picnic tables, playground, dog run and other amenities.
The balance of the funds $200,000 – will go into land reserves, Thompson said.
There are many steps to be taken before demolition and construction get underway, he said, such as rezoning of the land and development agreements and permits.
“We had 82 changes in the agreement. Eighty-two,” Thompson emphasized. “I don’t think people realize the amount of work that we went through… to protect the community so we didn’t end up with another River Run… I know the concerns and it’s a balancing act not to scare these guys away but yet protect ourselves and I think we’ve got a really good deal.”

Thursday, February 7, 2013

Mayor Decoux clarifies Annexation and Taxation

At Council meeting Feb 5 the Mayor gave a little bit of a commentary on two issues in the Crowsnest Pass and even though his comments sounded strange to me the public deserves to know.

(Anybody that was at the meeting and feels I am misquoting the Mayor please let me know and I will be glad to change the comments but this is what I heard)

He began by talking about "Annexation" he stated "let me be clear we are investigating and talking about the process of annexation, we have never said that we are actually doing it"

Then he went on to talk about the inequities between municipalities in this province within his comments about those inequities he stated the following "This small community is having the life taxed out of us"

On point number two myself and the Mayor agree, fortunately for the Mayor and Council they have the opportunity in their hands to reverse that direction right now, the budget process is still ongoing. 

Note: Administration was asked the question what percentage of the RCMP tickets does the municipality receive? the answer was the same has the Peace Officers tickets.
Now keep in mind one subtle difference, we do not pay for the RCMP just another thought for the budget process.

Wednesday, February 6, 2013

Riversdale Presentation

Just got back from the Riversdale presentation, would have been earlier but apparently my invitation got lost in the mail.
Good turnout I would say roughly 100 people, the folks from Riversdale gave a little back ground about themselves, explained why they were here and then answered a few questions. They made it clear that nothing is guaranteed and best case scenario they will start production in 2017 if everything goes perfectly. (Very much in line with my previous comments of 5-10 years).
Either way I do not believe our community can lose, hopefully this will bring some economic activity to our town. Unfortunately it will not increase our tax base due to being in Ranchlands, but the people will live here, put their kids in our schools and spend their money in our local businesses those are good things.
Yes I think these people are here to take advantage of our resources and make lots of money, that is a good thing healthy companies create good jobs.

Note: One comment I found interesting from Mr Dann (Spelling?) was his comments about how he has been coming here for a while and that just a few months prior to purchasing the land he gave the Mayor a courtesy call to see how accepting he felt the community would be about them coming here. Certainly took the bite out of the assumption some people have been making that Mayor and Council have been working on this for a long time and were very instrumental in bringing them here.  

Either way good to see them in our community and hopefully 5-10 years from now the coal industry will return to the Crowsnest Pass.

Tuesday, February 5, 2013

Crowsnest Centre Sale

Well tonight at Council the CAO informed all that attended that the Centre deal is in place.
The municipality shall receive $1.1 million $300,000 in cash and the rest will be covered by the demolition.
Demolition will be complete by late summer (Oct 21), foundation will be in place by late fall and completion of the hotel within 24 months.
He also informed us that the Vachon Group will be announcing the name of the hotel within 30 days.    

Monday, February 4, 2013

GroupVachon coming to the Crowsnest Pass


Available at http://www.crowsnestpass.com/


Media Release
Crowsnest Pass soon to be home to signature hotel and commercial area
“New 50-75 room hotel will include pool, hot tub, restaurant and meeting spaces”
CROWSNEST PASS (February 4th , 2013) - Crowsnest Council is very pleased with the announcement this week of the proposed development of a 50 - 75 room hotel and complementing services in Blairmore. “This is a very exciting initiative for us,” says Mayor Bruce Decoux. “Council has worked very hard to bring this project to fruition and we are certain that it will generate many positive dividends for our community.”
The hotel, which will be located at the intersection of Highway 3 and 20th Avenue is to see construction commence in 2013 and will include a pool, hot tub, breakfast area and meeting spaces. It will also be accompanied by a complementing restaurant and sports bar and an enhanced commercial area development. Developer Medican and Group Vachon described the location of the hotel and commercial area development as “one of the most strategic locations in the southern travel corridor of the majestic Rocky Mountains.”
“Council is very pleased that we arrived at a place where we can now move forward with the development process," said Mayor Decoux. “Council and Administration have delivered on their commitment to address the Crowsnest Centre site issue,” added Mayor Decoux.
Medican Construction and Group Vachon’s vision for the project is to create a signature hotel and commercial area that will allow tourists to enjoy the numerous outdoor activities available within the Crowsnest Pass and also to create the primary rest area location between Lethbridge and Fernie, B.C. “We are extremely pleased to be able to work with the
Municipality of Crowsnest Pass to bring this hotel and commercial development forward,” said Bill Cooper, Medican’s vice president of Sales and Marketing.
The hotel project is just one part of Council commitment to the Municipality’s strategic plan which—among other things—focuses on diversifying Crownest’s local economy. A hotel feasibility study was undertaken by the municipality as a way of building confidence in a hotel project. Christopher Vachon of Group Vachon said “When you look at the feasibility study and some of the things that are going on in the Crowsnest Pass, you can’t help but get excited about this development.
"The recommendation to complete a hotel feasibility study put forward by our Chief Administrative Officer and supported by Council, proved to be an invaluable asset in attracting a signature hotel and other supporting development for the site," said Mayor Decoux.
Media inquiries may be directed to:
Myron Thompson
Chief Administrative Officer
403-563-2201


http://groupvachon.com

Efficiency: Doing Less for More in the Crowsnest Pass.


On January 22 at the last G+ P, meeting Administration had intended to present the Fire/Rescue Master Plan to council, at the beginning of the meeting the CAO requested that the issue be placed “In Camera” due to there being some sensitive Personal issues. They also stated that this plan is tentatively scheduled to be brought back to council and the general public on May 19 at the next G+P meeting. 

Most of our present members of council ran on a platform of “Change”, change that would make the municipality more “efficient”. My understanding of efficient was doing the same for less, or in a perfect world doing even more with less.

So let us get to the issue at hand the Fire/Rescue plan, this great opportunity to provide us the good taxpayers of the Crowsnest Pass with a better service at either close to what we were paying before or optimistically even cheaper.  

Therefore, what confuses the hell out of me is I and many other folks are expecting this Grand Fire/Rescue Plan to bring us Less Fire Stations, Less Equipment and Less Firemen. Some taxpayers would be open to debate this issue if it was going to make us more “efficient” but the sad reality is it is not.

In 2010, our operational cost of running the Fire Departments was less than $300,000; today we are paying close to that just to administrate the Department. Don’t believe me? Let us look at the numbers Director of Community and Protective Services $110,000, Fire Chief $95,000, Assistant Fire Chief $85,000. Assume that half the Director’s wages are being applied to Fire/Rescue that is $235,000 just in salary, add on top of that the 35% that the Municipality allows to cover benefits, the $235,000 becomes $316,000.   

The next issue is the contract Firemen nobody knows how long they are going to be here but at $6,000, a month each multiplied by the three that are here that becomes $216,000 for the year.  

Now keep in mind that we have not included a dollar for Firemen’s wages for call out, being on call, or training. For a uniform, for a tank of gas, a bad tire on a truck nothing has you can see for yourself the numbers just do not make sense.

Would anybody like to disagree? Please show me that we will have even the same number of Fire Departments, the same amount of equipment to protect us and the same number of Firemen to serve us. After the full implementation of the Fire/Rescue Master Plan.   

Only in the Pass under this regime can we argue that being more “efficient” is providing less at more cost.