Vancouver, BC – May 9, 2013. The British Columbia Real Estate Association (BCREA) released its 2013 Second Quarter Housing Forecast today.

BC Multiple Listing Service® (MLS®) residential sales are forecast to edge up 1.9 per cent to 68,900 units this year, before increasing a further 6.5 per cent to 73,400 units in 2014. The five-year average is 74,600 unit sales, while the ten-year average is 86,800 unit sales. A record 106,300 MLS® residential sales were recorded in 2005.

“Stricter mortgage credit regulation combined with slower economic growth has kept BC home sales at a cyclical low over the past three quarters,” said Cameron Muir, BCREA Chief Economist. “However, a faster growing economy is expected during the second half of the year and through 2014 which will support a growth trend in provincial housing demand.”

“The BC average home price forecast is revised upward for 2013, from a decline of 1 per cent to remaining unchanged, as a result of stronger than expected market conditions in Vancouver,” added Muir. The average MLS® residential price in BC is forecast at $515,800 this year, before rising 1.7 per cent to $524,500 in 2014.

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To view the full BCREA Housing Forecast, click here.

For more information, please contact:
Cameron Muir Damian Stathonikos
Chief Economist Director of Communications and Public Affairs
Direct: 604.742.2780 Direct: 604.742.2793
Mobile: 778.229.1884 Mobile: 778.990.1320
Email: cmuir@bcrea.bc.ca Email: dstathonikos@bcrea.bc.ca

Video by Scott Simmons.

Saltspringer Nancy Wigen asking question about fish farms

BC Home Sales Tick Higher in March

Vancouver, BC – April 15, 2013.  The British Columbia Real Estate Association (BCREA) reports that a total of 5,661 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during March, up 6.6 per cent from February on a seasonally adjusted basis, but down 17.7 per cent compared to March 2012. Total sales dollar volume was down 18.5 per cent to $3.06 billion. The average MLS® residential price in the province was $540,662, up 2 per cent from February, but down 1 per cent from a year ago.

“BC home sales in March posted the largest seasonally adjusted month-to-month increase since January 2011,” said Cameron Muir, BCREA Chief Economist. “However, homes sale per capita continue to remain near a cyclical low, suggesting that pent-up demand may be beginning to grow in the housing market.”

Year-to-date, BC residential sales dollar volume declined 22.1 per cent to $7.2 billion, compared to the same period last year. Residential unit sales dipped 18.8 per cent to 13,572 units, while the average MLS® residential price was down 4.0 per cent at $530,435.

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For more information, please contact: 

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).

To demonstrate the profession’s commitment to improving Quality of Life in BC communities, BCREA supports policies that help ensure economic vitality, provide housing opportunities, preserve the environment, protect property owners and build better communities with good schools and safe neighbourhoods.

For detailed statistical information, contact your local real estate board. MLS® is a cooperative marketing system used only by Canada’s real estate boards to ensure maximum exposure of properties listed for sale.

What is a fire hall? According to wikipedia A fire station (also called a fire house, fire hall, or firemen’s hall) is a structure or other area set aside for storage of firefighting apparatus such as fire engines and related vehicles, personal protective equipment, fire hoses and other specialized equipment. It may also have dormitory living facilities and work areas for the use of fire fighters.

Basically, a fire hall is used for storage of equipment and as work area for firefighters.

Does Salt Spring have the $6,000,000 saved up to spend on the fire hall?  No.  We (the collective we, the property owners of Salt Spring) are going to have to borrow the money.  From where would we borrow the money? The fire board would probably have to go to the Municipal Finance Authority of BC (MFABC) and borrow the money via a bond.  Tax payers (via property tax) and eventually renters (via increased rental prices to cover the cost of increased taxes) would be on the hook for the loan for 30 years!

From MFABC web site:
“A new issue will generally be for a term of 10 years which means the lending rate will be set from the date of funding for a period of 10 years. Members have the option to borrow for periods ranging from of 5 to 30 years therefore any terms that exceed the 10 year period will need to have their lending rate reset starting in year 11. Typically the rate will be reset for the next 5 years covering the start of year 11 to the end of year 15, and this “5 year reset process” will continue as required (i.e. until loan obligations mature). Interest payments will be required semi-annually; with the first interest payment being 6 months after proceeds are received. Interest costs over the life of the loan are based on the original amount borrowed.”

So, the fire board will borrow up to $6,000,000 and hope bond rates are not significantly higher in 10 years.  As anyone with a mortgage can tell you, in the first period of a mortgage one pays off little of the principal.  With the current MFABC rate of 3.09%, after the first 10-year term, the island would still owe approximately $4,573,000.  We will pay out approx $1,636,000 in interest. Not including fees.

If the rates go up to 5% in 2023 and we refinance for 5 years on a 20-year term, we will still owe approximately $3,800,000.  We will have paid out approximately $1,042,000 in more interest (plus the 1.6 already paid), plus fees.  For those that do not follow bond rates, I can tell you the long-term rate trend is up.  The massive borrowing by all levels of government is flooding the market with bonds.  Most analysts are predicting that bond rates will continue to go up.

This debt servicing goes on and on for 30 years.  The Salt Spring fire board does not have the $6,000,000 and would be counting on the world wide banking system/governments to keep interest rates low for the next 25 years.  The new proposed fire hall could cost us over $10,000,000 (about a $1,000 each).  Now that is one expensive storage building and work area.

There is another option for the fire hall? A simple steel building.

Maybe I’m just a simple person, but I like the fire hall shown above.  There has to be something said for simple, efficient, utilitarian design.  After all, it’s a fire hall for storage and work areas, not a public library.  Photo from the Nucor web site.

Instead of the architecturally designed fire hall that has been proposed, we could build a simple slab on grade, steel building, which could be used for storing the trucks and enclosing an office space.  After all, a fire hall doesn’t go out to the fires and rescue people.  That is up to firefighters and their equipment.

The new 7,800 sq. ft. Salt Spring tennis building, built by Mr. Norm Elliott’s company, Permasteel Group, was built for less than $700,000.  Here is an approximate breakdown of the cost of the tennis building:

•  size is 60′ x 130′ and 27′ tall,
• building cost was approximately $325,000,
• site development a little over $200,000
• paving, surfacing and other interior work a bit over $100,000.

Based on my discussion about steel buildings with Fire Trustee,  Mr Richard Hannah  and this letter to the  Salt Spring Island – Letter to the Board  from Permasteel,  it is evident that there are some misconceptions about steel buildings.  I really wonder if the fire board did enough research on the option of utilizing steel buildings.  Nucor, the type of building built by Permasteel, actually builds purpose made fire halls.  Here is a the link to their fire hall info.  Some of the structures look nicer than the one I featured.  I wrote Permasteel an email asking for information and they sent me some nice brochures about steel buildings.  They are available for viewing at any time.

Mr Elliott’s company Permasteel group could probably build a steel (85%-90% recycled steel)building for the fire hall for approximately $1.5M-$2M.  That is less than the cost of the interest we are going to pay on the proposed new fire hall.  You can listen to Mr. Elliott’s statement in the podcast below (at the approx. 4 minute mark)

Tennis building

I’m curious to see if the fire board will get a quote from Permasteel for a new steel building and let the taxpayers decide what is best for the island.  After all, it is our money that is going to be spent on this new building.

I cannot understand why the Salt Spring Island fire board has not presented the taxpayers with options for the new fire hall.  I do not know why these options are not put to a general referendum question such as:

Do you want the Salt Spring fire board to borrow (on your behalf) and build?

• (A) architecturally designed fire hall at approx 6 million as per our firehallinfo.com web site

• or (B) simple steel building for 1.5 – 2 million. (similar to the new tennis building)

If you pick A I hope you are prepared to pay your portion of the $10,000,000.  I wonder will the fire budget go up by approx $300k per year (approx financing cost) or will the fire board cut the $300k out of the existing budget?

Here is a startling quote from the fire department’s website http://www.firehallinfo.com/hot-topics/   “Another concern with a Referendum is the fact that an apathetic populace will allow a motivated group to dominate the results.”  To have a government agency call the islanders (taxpayers) apathetic is, in my opinion, over the top.  This blog post is my personal response to being called apathetic.

Please feel free to comment below.

Cheers
Scott Simmons

PS; Again I do think the volunteer fire fighters of Salt Spring are fantastic and should be supported in every way with state of the art fire fighting equipment ie trucks and gear not fire halls we can not afford.

Disclaimer I do not work, have never been paid by and would not accept any payment from Permasteel and or Nucor and do not represent them in any way.   I simply want to explore all options regarding any new Salt Spring fire hall.

All homes on Salt Spring are priced according to size, location, waterfront, water access, and square footage.  But, beyond all other criteria, SUNLIGHT is of the utmost importance.  Whether you purchase a stunning waterfront McMansion or a little starter home, sunlight and/or the lack of it, can make any home either livable or uninhabitable part of the year.  Seasonal affective disorder (SAD)  is a real problem on Salt Spring.  To counter SAD it is imperative that the home you buy is basking in year-round sunlight.

Sun Path Chart

Between May and July, when the sun is higher than 60 degrees on the horizon, almost all Salt Spring homes are sunny.  But, in December, when the sun is not over 20 degrees, it might be a different story.  I’m always amazed at homes that are built on the south lot line of a property.  Homes should be built on the north end of the lot, leaving the trees on the south end of the lot under the control of the homeowner.  This seems so logical, but unfortunately, many homes were not built with this basic logic in mind.  Salt Spring is blessed and/or cursed with trees.  Trees located to the north of a house can provide a nice windbreak and make a home feel warm and cozy.  However, if trees are south of the house, the home can resemble a dark cave with sunlight for just a few months of the year.  If those same trees are on the neighbor’s property, there is little you can do to increase the sunlight in the home.

Part of the problem on Salt Spring is homes are generally built to take advantage of the views, not the sun.  But, armed with this Sun Chart (or smart phone app) and a compass, you can find out if any home will have year-round sun.  Simply figure out where south is and hold up the Sun Chart.  If the trees, mountain, hill, buildings, etc. are below the 20 degree mark, the home will get year-round sun.

Sunny homes are warmer, have a better feel and are happier homes.  The sun gives us life.  When one is living close to the 49th parallel on the west coast, where clouds can block the sun, it is imperative to have the maximum amount of light, especially during the shortest days of the winter.  A simple Sun Chart or Sun Chart app can make the difference of enjoying Salt Spring year-round or listing your home for sale in November.

Download Sun Path Chart pdf here. Sun path chart pdf

“Sun Path Chart” is reprinted from BC Hydro book Solar Systems in BC as per their reproduction agreement.

Cheers
Scott Simmons

A BAD INSPECTION REPORT

When a buyer refuses, for a legitimate reason, to remove a subject clause because of a bad inspection report, what is the listing licensee to do with that knowledge?

This was the issue in a recent case where the court found the listing licensee liable for $47,000 in damages for failing to fully tell subsequent buyers about problems revealed in an earlier inspection report.

In Gundersen v. Savoy, the property was a modified single-wide manufactured home on land near Cranbrook¹. The sellers had built an addition to the home.

In June 2004, the sellers listed the property. In their Property Disclosure Statement (PDS), the sellers said they were not aware of any moisture problems.

In February 2005, the sellers accepted an offer subject to inspection. When the buyer received a negative inspection report, she collapsed the deal. In his report, the inspector cited some mildew in the basement under the addition. The inspector said that a vapor barrier should be installed over the exposed earth under the home, and the area treated with a solution to kill mildew. He also found that the furnace was too small. Later, the buyer’s agent told the listing licensee that the buyer collapsed the deal because the inspector reported mould in the home. With the inspector’s report in mind, the sellers took steps to repair the problem by covering the exposed earth with poly and applying a mildew-killing solution.

In January 2006, new buyers viewed the home twice. On January 29, the sellers entered a Contract of Purchase and Sale to sell the property for $178,000 to the buyers. There was no subject-to-inspection clause in the contract. The sellers also updated their PDS to certify they were not aware of any moisture or water problems in the walls, basement or crawl space.

When the buyers moved in, they discovered widespread mould and mildew. For health reasons, they apparently abandoned the home after roughly six months. The buyers sued the sellers, the listing licensee and his brokerage. The court dismissed the claim against the sellers, but found the licensee liable for deceit. The brokerage was vicariously liable for its licensee.

At trial, the listing licensee claimed that he told the buyers that the black poly was there because the earlier inspector had noticed mildew on the underside of the addition. He testified that he told the buyers that the sellers had received advice to spray underneath the floor with a solution, and to insulate and cover the area with a vapour barrier. According to the licensee, he told the buyers that the sellers had apparently remediated the mildew problem on the inspector’s instructions. He also told them the furnace was too small. The licensee testified that this was when the buyers decided to proceed without a subject-to-inspection clause.

The court, however, preferred the buyers’ evidence, rejecting the licensee’s version. The wife of the buying couple testified that when they suggested making their offer subject to inspection, the listing licensee said that an inspection had already been done, and that all was fine except the furnace was too small. She was adamant – the furnace was the only deficiency that the listing licensee told them about.

The court found that the licensee persuaded the buyers by half-truths not to seek an inspection, when he knew that an inspection would be prudent, especially given the property’s mildew history. The court said that if the licensee really believed that the seller had remediated the property, he should have told the buyers about all of the inspector’s findings. Instead, the licensee edited his information, keeping silent about that which might worry the buyers most.

Generally, whether a seller responds to a legitimate negative inspection by repairing the problem or not, the listing licensee should disclose the situation to a later buyer. The licensee should also consider whether the problem is a material latent defect within Section 5-13 of the Real Estate Council of British Columbia Rules², in which case the licensee must disclose the situation in writing before the buyer enters an agreement to buy the property.

Mike Mangan
B.A., LL.B.

BC Home Sales Remain Subdued but Stable

Vancouver, BC – February 18, 2013.  The British Columbia Real Estate Association (BCREA) reports that a total of 3,410 residential sales were recorded by the Multiple Listing Service® (MLS®) in BC during January, up 1.8 per cent from December on a seasonally adjusted (SA) basis, but down 13.6 per cent compared to January 2012.  Similarly, total sales volume increased 3.8 per cent SA, but declined 16 per cent from the same month last year. The average MLS® residential price in the province was $514,134, up 3.2 percent from December, however, down 2.7 per cent from a year ago.

“Despite a modest uptick in consumer demand last month, home sales have remained relatively stable at a noticeably lower level since last August,” said Cameron Muir, BCREA Chief Economist. “Continuing low mortgage interest rates combined with an easing back of home prices in some areas is expected to trend home sales higher during the spring and summer months.”

“The ratio of home sales to new listings is indicative of a balanced market at 42 per cent,” added Muir. “However, there remains a backlog of existing home listings to either sell or be pulled off the market before supply and demand can be considered in check.”

Dramatic swings in average price statistics caused by a surge and subsequent pullback in luxury home sales appear to be near an end. The year-over-year change in average prices now more closely reflects the home price indices in Vancouver and the Fraser Valley.

CFSI has been sold to a Surrey BC Company.  Satnam Media Group (BC) Ltd. (Satnam BC).

Attached is a letter that came from the CRTC regarding the sale. CRTC CFSI Letter

Some of the programmers meet with Mr Sukhdev S. Dhillon owner of Satnam Media group on Feb 11, 2013 at the Harbour House hotel on Salt Spring.  The meeting went well.  Mr Dhillon said he hopes to build the station and retain the community feel of the station.

About 30 programmers meet up on Salt Spring on the night of Feb 12, 2013. It seemed to be unanimous that we are all looking forward to working with Mr. Dhillon. It seems as if our goals are the same; building up CFSI and making it a fantastic local Salt Spring community station. It was a consensus that the programmers will be warmly welcoming Mr. Dhillon to the island. There will be an official welcome letter going to Mr Dhillon. I personally want to congratulate him on his purchase of CFSI.

Here is another link with more info about the sale.

Link to the Driftwood article about the sale.  

Article in the Times Colonist newspaper about the sale of CFSI Saltspring radio station..

Scott Simmons

Art Beat Radio Show.  Please feel free to comment below.

Found this on line from the Globe and Mail It will give readers a historic snap shot of CFSI fm.

COMMUNITY BROADCASTING

Saltspring hippies put good vibrations on air
Eclectic mix of groups vie for slots as island residents win
approval from federal regulator for radio station

SHANNON MONEO

Special to The Globe and Mail

November 9, 2007

VICTORIA — Saltspring Island’s eclectic mix of 11,000 residents should be tuning into the island’s first radio station by May, and already they’re clamouring for air time.

“I have a woman who wants to do a Scrabble show. She wants us to broadcast the game while they’re playing,” said Richard Moses, who with fellow Saltspring resident Gary Brooks got federal approval for 107.9 CFSI-FM. “We’re going to have everything under the sun.”

It’s no wonder.

Saltspring is a fabled place where middle-aged men and women with flowing hair still wear tie-dye shirts and hitchhike. Magic mushrooms and dozens of heritage apple types are harvested. Soap-makers and organic cheese-makers sell their wares at the funky and famed Saturday market. And pot growing isn’t panned.

If a Saltspringer wants to air marijuana gardening tips, that will be fine with 74-year-old Mr. Moses.

“We want the station to grow out of the island,” he said, tongue firmly in cheek, about a place still painted as a hippie haven. “It [hippie] is a bit of a dated term, but the spirit is there.”

As station program director, Mr. Moses wants organic farmers and alternative health practitioners to pile into the as-yet non-existent studio to broadcast informational shows.

Many of Saltspring’s special-interest groups, numbering some 150, have indicated they want air time, said Mr. Moses, who spent two decades working at community radio stations in Toronto and Edmonton after moving from New York in 1971.

Listeners can also expect lots of salty dialogue during open-line shows.

Folk singer Valdy told Mr. Brooks that Saltspring is an argument surrounded by water. “There’s a lot of hot-button issues we can talk about,” said Mr. Brooks, a semi-retired entrepreneur who came to Saltspring from New Mexico five years ago and couldn’t believe the island didn’t have a radio station.

Initially, the station will air about 16 hours a day and eventually work up to 20 hours, from 6 a.m. to 2 a.m., Mr. Moses said.

Toned-down, spoken-word ads read by retired radio announcers or actors will replace hyped-up jingles. “Saltspring has an amazing amount of people who worked in radio. It’s a ridiculously high percentage,” Mr. Brooks said.

As promised in the application to the CRTC, CFSI won’t play Top 40 music. Classical, jazz, blues and folk will be the core music programming. The station also wants to feature new artists and has promised to eventually fill 50 per cent of the music slot with Canadian content. “It seems like every second person here has musical talent,” Mr. Brooks said.

Mr. Moses has amassed several dozen CDs made by Saltspring musicians.

Randy Bachman, former rock star and now CBC radio host, might be persuaded to move his show closer to home. Artist Robert Bateman would make an eloquent radio voice.

CFSI will also spread the word when such emergencies as fires occur, a service that has been dangerously lacking on the 185-square-kilometre island.

High-school students will be invited to produce shows about issues they find relevant, said Mr. Brooks, 56, who has two children, 11 and 14.

Born and raised in New York, Mr. Brooks was known as the Chile Guy when he ran a successful chili pepper business out of New Mexico and Mexico. In financing the station, he put up at least $100,000 to get it off the ground and on the air, and at least another $100,000 to run it for one year.

The partners hope that advertising revenue and volunteer staff will help CFSI break even. They conservatively predict revenues of $130,000 in the first year. “This is a labour of love,” Mr. Brooks said.

But the new radio station has already brought some static.

About 70 people signed a letter saying they don’t want CFSI’s proposed 33-metre tower and 1,000-watt transmitter on Mount Belcher, said Rick Laing, a building contractor who has lived on the mountain for 25 years.

While he’s not against the radio station, there are concerns that the tower is unsightly, will lower property values in the rural neighbourhood and may cause health problems.

“It’s not scientifically proven, but it [a tower] can be dangerous to birds’ health and disorienting to animals,” Mr. Laing said.

The municipal government must give its blessing to the tower site, Mr. Brooks said, and he expects it will, since Industry Canada has already approved it. There are at least two other potential tower sites in the same geographical position that could be used, Mr. Moses added.

As it happened, after residents spent about 15 years trying to bring a station to Saltspring, a competing bid was made in January, two months before CFSI’s.

But the CRTC considered the first bid’s business plan to be flawed, while CFSI had a “viable” plan and the “financial capacity to fulfill its plan.”

In October, the CRTC awarded a seven-year licence to CFSI.

“It’s going to be full-tilt boogie,” Mr. Brooks predicted.

Update April 2013 from Radio West

CFSI 102.1/107.9 is now branding itself as “Green FM 102.1 + 107.9″ and has a new website and logo to match:

GREEN FM WEBSITE

Now under ownership by Satnam Media, ‘Green FM’ still operates as Salt Spring’s community station with a continued musical emphasis on Category #3 music – local Salt Spring artists, world-beat, folk, jazz, blues & classical. Many shows by volunteer programmers are now moving to evening and weekend slots, but virtually all shows remain on air (including my own). New owner Sukhev “Dave” Dhillon has kept Dave Gordon on as station manager, Bobby Magee now handles sales, & Rob Pingle remains as Music Director and webmaster. The mood at the station amongst management, programmers and advertisers is an upbeat, positive one as the station rebuilds from all the damage done by the previous owner and moves forward daring to go where few radio stations dare tread!!

(thanks to Sky Valley Radio for the above)

I like the ferries.  I like all the ships, the crews, and yes, I love the breakfast on the Queen of Nanaimo.  I have been on the Salt Spring Ferry Advisory Committee (FAC) for 5 years.  Here is the website I made for our committee. I have made many positive comments on things they can do to improve the experience.   Two of my pet peeves about the Crofton run are “hot loading” and when the ship is late.

• All islanders know you should walk forward and get a ticket in Crofton.  When the ship is in things happen fast and you want to be able to show your ticket (you have just purchased using your Experience Card) and get on that boat headed home.  Often I’m running late and the cars are backed up the road and past the cafe.  I run forward to grab my ticket, get back to the car and wait, wait and wait.  Slowly we inch forward and then we are so close to the ticket booth all of the cars are rolling through.  Then, the guy with Californian plates stops at the ticket booth and has only US cash or some card not used by BC Ferries.  Ug.  Panic sets in.  One can see the Captain on the top of the ship looking out with his binos.  The guy from California has a solution – he has quarters and will pay with change.  Slowly, he is counting out his coins, then, just as he is almost there, the light turns red and the ship pulls out.  Usually a few **** and **** come out in a subdued whisper (OK, I don’t actually swear, but think about it.)  I’m a Canadian and a Salt Springer, so I think, “There will be another boat.”  My point is, there is no sign saying, “PLEASE COME FORWARD AND BUY YOUR TICKED IN ADVANCE.”  Over the last 5 years I have brought this up at almost every FAC meeting.  I have offered to buy the wood and paint the sign.  I have even thought of just putting a sign up at night.  They always say, “That is a good idea.  Hot loadings are the biggest problem with that run.  We will do that.”  They always seem so positive and happy about the idea, but they never commit to a timeframe for installing the sign and, of course, they never do it.   I have come to the conclusion that BC Ferries does not care about customer service.  They do not care if you do not get on the boat.  It is not the boat crew’s fault or ticket staff’s fault and surely not the Californian’s fault.  It is a failure of BC Ferries management.  Hang on – it gets worse.

• How about the days the ship is late.  Let’s say on the first run in the morning someone has a dead battery and cannot start their car.  Now, every sailing of the day will be late.  It is really bad when it is 45 -50 minutes late because one will drive to Vesuvius and see the ship pulling out of the dock 15 minutes early.  However, it’s not 15 minutes early, it is 45 minutes late.  All day long we will all wait and wait because of one dead battery on the first sailing.  I have asked BC Ferries if they could just sit and miss a run to get back on schedule?  “No.  Breaks the service contract.”  That ship and the 1000 or so people a day who use it will be waiting all day.  How hard is it to fix this? One just has to care about customer satisfaction.    But, there is no winning with BC Ferries because the management at BC Ferries stinks.  As the crews will all tell you, when no one is within earshot, they are working for the “man.”  BC Ferries has taken a page out of the worst of Britain’s labour relations in the 60’s and 70’s and totally un-empowered their employees to implement simple solutions.  BC Ferries and customer satisfaction – Can it happen?

Let’s look at some recent history.   BC Ferries has sunk a ship and two passenger tragically died (RIP.)  Ships have hit docks or, as they like to say, “hard landings.”  This should not happen in modern times.  Pre GPS, radar, etc., one can envision how ships went down.  The reason their ship recently sank is simply due to bad management.  Yes, I’m sure they are going to blame the crew, but crews do what crews are trained to do.  Standard operating procedures and training are the role of management.  It’s a basic lack of leadership that has led to employees with extremely low morale  and hostile relations with workers.  Forget about customer service, this is a totally dysfunctional company.  Customers do not figure into their tangled mess.   Customers are like cattle to BC Ferries management. Maybe we should all be mooing when we get on board?

BC Ferries is kind of like the Russian coal mines during the heyday of the USSR.  Apparently, the miners had the lowest output of any worker on the planet.  News flash!  It was not the mine worker’s fault – they had no incentives to work.  Workers need to feel empowered.  Workers need to be part of the team.  They need to be able to make a difference.  What would BC Ferries look like if Jack Walsh or Sir Richard Branson was in charge for the last 10 years?  OK, OK…I’m breathing… I will slow down on this rant.  Just don’t get me started on Throughfares and lack of conductivity.  Or how about the crazy turn around route at Swartz Bay?  It would be comical if it was not killing Salt Spring and the rest of the coast.

The only cure at this time is a coup d’état of the management.  If you have not been to the Atrium Building in Victoria, you are missing out on seeing one of the most posh buildings in the Capital.  The management occupies the top three floors of The Atrium – that’s 90,000 sq ft. of Class A office space.  It’s inconceivable that a business of that size could possibly need another 700 at HQ.  There are so many VPs and management just toiling away their time.  It’s fitting that on the ground floor of The Atrium there is a restaurant called, “The PIG.”  I’m sure they do not have troughs, but as the old saying goes, “Pigs get fat, hogs get slaughtered.”

The President and CFO make over $900k per year.  It is not as if they are making money for the shareholders and driving up share value.  They are not the ones that started this company with their capital at risk, but for some strange reason they are paid like Wall Street CEOs.  The financial statements that they put out are not practical.  I wanted to know the cost of fuel and wages per run vs. sales.  The numbers they provided were padded.  The management fee is disbursed throughout the routes.  Even the size of the ship capacity is wrong.  The Howe Sound Queen does not carry 70 cars but only 55 cars.  I have gone through all their material and cannot find the cost of running the management.  The cost must be so high they have hidden it.  Now their big idea to cut cost is to cut 98 round trips.  How about cutting 200 or 300 jobs in Victoria at HQ?  ICBC just did this -  “ICBC expects to save $29 million per year for the full 250 reductions.” Read it on Global News: Global BC  ICBC to shed 250 staff and 8 VPs following damning report.  Cutting routes to save money is like a store closing early to save money.  Yes, some labour and fuel cost might be saved, but what about the customers?  What about building ridership?  What about making it a great ferry system?

How could one turn the corner with BC Ferries?  It is really not that hard to do.  Here is how I would do it.  First off, if I was CEO, I would want to get the same hourly rate as the deck hands.  Animosity and jealousy create descent.  It’s called work with your workers.  The greatest asset BC Ferries has is the workers, not the ships.  The workers need to be given control to “own” the routes.  Empower them.  It sounds like it is so easy and it is.

Ferry rides should be an experience.  The discount cards are named “Experience Card.”  What experience do we get?  There is no fun on the ferries now.  Tourists gawk and snap a few shots.  Workers empty garbage cans and vacuum.   It’s like a flash back to East Germany.  So, here is the kicker – Let’s make it fun to ride on BC Ferries!  Ever go to one of those drive-thru oil change places?  They hand you a paper and coffee, then smile and they seem to make an oil change fun.  One almost feels like they are in an Indy pit stop.  Here are a few things BC Ferries could do:

• How about opening up the bridge for tours?

• How about engine room tours?  I have never seen below deck on the ferries but would really love to see how they work.

• How about creating an Event Day on the ship during the slowest times of the year.  Instead of cutting runs, motivate people to ride on the ships.  I know this sounds extreme.

• Buskers on the boats?

• How about a band?

• How about an art show?

• Put in massive sand boxes and have castle making contests in the summer – ship vs. ship.

• How about a kite flying event?  Now there is an idea that would bring in people from around the world.  Ride the Queen of Nanaimo all day and fly a kite for $49 bucks.  How much fun would that be?  What is the world record for kites off a ferry?  Go for the record.

• How about a play or open mic for stand-up comic wannabes?

• Karaoke anyone?

• Let crews have the power to create a fun event on “their” ship.  Empower the crews.

• How would a pirate day be? I would go to Vancouver just to go on the ferry to see it.  I can think of one crew member from Salt Spring that would love to be a pirate on board.  I have been to his house on Halloween.  He has all the gear.

• How about a zombie day?  All deck hands dress as zombies on one day of the year.  Pick the slowest day of the year and do it.  Social media would go nuts.  There would be 1000′s of YouTube videos.  What would happen on the 2nd or third year?  Zombies from around the world would flock in. They would spend money in hotels, buy food (zombies do have to eat and sleep).  Would it still be the slowest day of the year?  No it would not be.  Workers would be waiting all year for Zombie day. OK, you have outed me, I love the zombie thing.

• How about jean and tee-shirt day on a Friday in the summer?

• Have you ever seen the Southwest airline toilet paper races?

• I will never forget my time in Paris and the live jazz music in the subways.

My first act would, of course, be the sign at Crofton – it would go up, I would just do it. The second thing I would do is ban the words, “We can’t do that because …Transport Canada, service contract, union contract, etc.”  Just do it! I have never heard so many lame excuses.  They have more excuses than my 12 year old when he does not want to go to school.  What would Richard Branson do?  I don’t know, but I imagine he would energize the staff and there would be some life on board.  Could you just imagine him in charge?

Like I said, the management hangs out at “The PIG” in Victoria and does not actually lead the company.  Leadership is called leadership because leaders are meant to be out in front leading the charge, not hiding in the ivory tower.  Have you ever had senior management greet you on the ship?  Ever see them out glad handing with workers?  Ships do not hit docks because of some broken part.  They hit docks because no one gives a darn.  If BC Ferries had morale they would be a winning enterprise.  People would look forward to a trip and tourists would rave about it. Why can’t they do these things?  Don’t say, “Because of Transport Canada,” etc.  That is a cop out.   They can’t because they have no vision, no leadership and frankly they just do not care.  They are sitting in their ivory tower (see photos above), collecting their fat salaries and getting very fat at The PIG. The party will end, and when it does, they are all going to get slaughtered like the hogs they are.

Ever hear the old “Build it they will come?”  How about, “Make it fun and they will ride your boats.”  Keep it dead and dysfunctional and it will die a slow painful death.  The sad thing is, we are their island hostages.  Yes, we have our FAC, but do they listen? Where is my “Please come forward and pay” sign? The lack of a sign is my proof that they just do not care.  It sucks to be on an island serviced by such a poorly led company.  Is there hope?  Yes, there is hope?  Yes the coup is coming.  Will it change? Let’s hope so.  It really cannot get much worse.

This is just my rant of the day and continuation of my “Why is Salt Spring stagnant?” article.  Is there hope you ask?  Yes, of course there is hope …and an election.

Yes, if the job of CEO comes up I will put in my application, but I will not negotiate my pay.  I’m firm on that point. CEOs or Presidents or any senior management of crown corporations or semi –private, government owned companies should not get more than the wage of the lowest deck hands.  BC Ferries is not about their ships, they are about the people that run the ships and the joy they bring to work.  When that special joy is passed on to the customers, magic just happens. Customers become raving fans.  Like I said, check out the toilet paper race on Southwest Air.  I’m sure it breaks all the FAA flying rules, but they just do it because it’s fun.

Cheers,
Scott Simmons

Please feel free to comment below. Thanks.  I feel better.  This is like having a massive weight off my shoulders.  This rant will probably get me canned off the FAC.  Let’s hope so.
Vive La Revolution

Note to readers: I do not have an Editor.  If you see errors, please let me know. I’m not a supporter of any political party, just a fed up business person.  These thoughts are my own and not from the Salt Spring FAC.

Why is Salt Spring Stagnant part 1

VICTORIA, BC–A slow start to the year in Victoria’s real estate market is evidence that buyers are continuing to wait for prices to drop. Although January 2013 sales are 27% lower than January 2012, the six-month average price for a Greater Victoria home is only down 1% for the same period.

“We are realistic and sales are not what we would like to see,” says Shelley Mann, President of Victoria Real Estate Board. “But there are many stories within the market. This week, three houses sold in Sidney that were all newly listed and they sold for over asking price.”

Mann adds that she’s spoken to several local REALTORS® who have clients who want to buy, but they are looking for good houses with quality amenities. “One Member told me that he has several potential buyers, but they can’t find anything they like.”

In January, 294 houses sold, compared to 372 in January 2012. The median price of a single family home is $482,500 compared to $522,000, a decline of 7.6.%. The six-month average shows a 1.4% decline, year-over-year, but less than one percent over last month.

“My basic message is that sales are down, prices are flat and our provincial economist is predicting 2013 will be a transition year,” Mann says. “He believes the economic fundamentals are strong, and as a result the sales volume will increase 4% this year over 2012, but prices will remain flat.”

Current active listings are 3,870. There were 81 condominium sales in January, a 24.6% increase over December 2012, while the median price of $238,350 is down 12.1% year-over-year. Townhouses saw increased sales in the past month and a median price of $382,000, up 4.7% year-over-year.

Total Waterfront Single Family Dwellings sold:                    9, up 5 over January 2012

Total Non-waterfront Single Family Dwellings sold:          144, down 43 sales from January 2012

Single Family Dwellings sold over $1 million:                         3 (1 over $2 million)

While the use of average price information can be useful in establishing trends when applied over a period of time, e.g. six months or longer, the Victoria Real Estate Board cautions that an average price does not indicate the actual value of a property in a particular neighbourhood. Those requiring specific information on property values in their area should contact a REALTOR®.

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January stats summary below.

Maggie Kerr-Southin APR
Manager, Communications, Victoria Real Estate Board

January 2013, MLS® Real Estate Sales and Average Prices, Greater Victoria

January 2013, MLS® Real Estate Sales and Six-Month Average Prices over December 2012

* All Areas includes Shawnigan Lake/Malahat, Gulf Islands and Up Island

Maggie Kerr-Southin APR, Manager, Communications, Victoria Real Estate Board – www. vreb. org
3035 Nanaimo Street, Victoria BC V8T 4W2