Okanagan Business Examiner

JULY 2010

INSIDE:

PM#41835528

Two Sides of a Coin: WFN & West Kelowna Dithering While a Railway Dies A Wine Sampler

Vernon’s Quiet Speaks Giant Out Always n

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National Aboriginal Business Opportunities Conference September 14th and 15th 2010

At the spectacular Spirit Ridge Vineyard Resort and NK'MIP Conference Centre in beautiful Osoyoos British Columbia

Join Host Chief Clarence Louie and 200 other national business leaders for 2 days of discussions that will shape the future landscape of business in Canada.

Don’t miss the networking opportunity of 2010!

Sessions include: For registration information contact: Geoff Greenwell Conference Organizer Toll Free: 1.866.284.8322 Email: Geoff@2gholdings.com

 Accessing Investment Capital  How to Create Profitable Energy Partnerships  Best Practice Case Studies of Aboriginal Businesses

and Joint Ventures  Understanding the Opportunities in Ontario and British Columbia’s New Clean Energy Acts Southern Interior Events Management

COVER

Vernon’s Quiet Giant Speaks Out How do you miss one of the biggest tech firms in Vernon for years? One that spends every hour of the day communicating to its clients? It turns out it’s easy if the giant, the SQM Group, has its clients everywhere but here in the Okanagan. An interview with founder Mike Desmarais.

Page 6

associate Publisher Chytra Brown chytra@businessexaminer.ca Editor Devon Brooks editor@businessexaminer.ca ADVERTISING SALES Sales Representative Murray Hicks Angus Cathro Jesse Kunicky Kathie Nickel

inside End of the Line - 10

Two months ago we told you about the hardships the closure of the rail line to the North Okanagan is causing business. Here is the chronicle of those fighting to reopen it.

HSTeria - 14

The HST is here and the sky hasn’t fallen.

Perhaps, just perhaps, there is life after a government tinkers with a much loathed tax.

Two Sides of the West - 17

To visitors and most people who drive on the Westside there is no way to tell where Westbank First Nations land and West Kelowna begin or end.

The Wonder of Lignin - 34

You may never have heard it, you can’t eat it, and it looks like brown goo, but lignin is the stuff that entrepreneurial dreams are made of. At least if your last name is O’Flynn it is.

4 Okanagan Business Examiner / July 2010

Publisher Craig Brown publisher@businessexaminer.ca

Design / Production Corrina Deters production@prospermediagroup.ca Executive Assistant Joanne Clarke jclarke@prospermediagroup.ca Contributing Photographer Shawn Talbot 1.888.317.1403 shawn@shawntalbot.com www.shawntalbot.com Subscription Rates 12 issues annually | One year: $27.00 778-755-5727 Distribution The Okanagan Business Examiner is published monthly at Kelowna, BC by Prosper Media Group Inc. Copies are distributed to businesses from Osoyoos to Greater Vernon. The views expressed in the Okanagan Business Examiner are those of the respective contributors and not necessarily those of the publisher or staff.

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inside

uture issue

The Future It’s rare that you can predict the future with any degree of certainty, but one of the joys of publishing is that you can make that claim. At least you can for the pages of your publication. Here are a few snippets about our future that we are so excited about that we couldn’t wait to tell you.

Cover Story - 6 organic orphans in africa - 8 guest Editorial - 9

Coming in August

Railways in the north - 10

Why won’t Canadians advertise? On a comparative base Canadians don’t spend nearly the money that Americans do to promote themselves. The obvious answer might be that it is too expensive, but even when advertising is free, many fewer Canadian businesses put the word out. Maybe Canadians just don’t like to brag, eh?

the desk of derriksan - 13 Dominick Dlouhy - 14 bc food processors - 16 west kelowna - 17

Coming in September

westbank first nations - 17

We ought to be in pictures. After all we live in one of the most beautiful places in the country. In fact we are in pictures, more so than most of us realize. Still, with the huge benefit of the low Canadian dollar eliminated we are coming to a crossroads and, as a region we need to decide whether we are going to get behind the film industry or not. An inside look at what happens and where the money goes.

veronica ukrainetz - 25 letters to the editor - 26 calendar of events - 27 movers & shakers - 28

Coming Later this Year

westside wines - 32

Later in the year we have two specials we want to share with you. One is the changing work place – what will work look like in 20 years?

pure lignin - 34 women’s enterprise centre - 36

The other great story we want to tell is that of the greatest business people in our entire Valley. Every year we are peppered with award ceremonies that highlight the best businesses in their area, but over time, who is the best of the best?

Watch this space for more details.

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Okanagan Business Examiner / July 2010 5

Who you gonna call (if you’re a call centre)?

By Devon Brooks

Any industry will eventually spawn byproducts and support services that eventually become as essential as the original product.

Think of auto sales and mechanics, or movies and popcorn. When you think of call centres, which few of us ever do, you might want to hyphenate that with the SQM Group.

According to owner and founder

Mike Desmarais, “We’re a call centre that checks out call centres.”

When you are on the line with your favourite bank or other large institution and you hear the automated recording say, ‘This call may be monitored for quality assurance purposes,’ there is a good chance that it will be one of SQM’s 100 plus employees that

will be doing the monitoring.

Call centres are growing in number around the globe, but it isn’t the number of call centres that is spurring SQM’s continued growth, it is rather the quality of call centres and customer sensitivity, perhaps more accurately called customer irritability.

If you mention call centres most people think of those dreaded calls you receive in the evening asking you for money, but that isn’t who SQM is dealing with. Desmarais’ clients are the big corporate names you think of every day. He says, “Most of our clients are blue chip.”

SQM works with 350 clients, 65% of them American and the rest from Canada. He deals with most Canadian banks, many American ones, Wells Fargo, ICBC, telephone companies, several U.S. healthcare providers, Canadian Tire, VSP insurance in the States, Rogers Communication, CP Rail, Blue Cross and BC Hydro, to name only a few.

The next time you are on hold waiting to talk with a representative it might help you to know that the company really does care about you – it’s just that some care more about you than others and sometimes, even though they may not want to annoy you with their departments, bureaucracy and hierarchy, they don’t know how not to. That’s where SQM comes in.

The reason that the Blue Chips pay SQM about $25,000 (on average) a year is to find out how well their call centres work and how to fix them.

When Desmarais started his

business in 1996 he was heading up the call centre for Superior Propane, which was then part of Petro-Canada. When he left there and started SQM, the Superior Propane call centre became his first customer. He worked the business out of his basement with his wife, six neighbours and $115,000 in seed capital.

Methods were a little cruder.

Desmarais recalls, “Fifteen years ago I surveyed people with a piece of paper and a pen on the phone.”

He says his survey of a customer was typically done up to three days after the customer had called in.

“Now we reach a customer within 10 minutes for a three to four minute call and we can data mine it much more effectively.”

Data mining in this case means analyzing the phone conversation for key words or phrases like ‘satisfaction’ or ‘unhappy’.

Data mining is important, not just because it is a cool, hi-tech thing to do. Desmarais’ original telephone surveys took 15 minutes and involved up to 60 questions, the kind of survey that most of us rarely agreed to do. Data mining means surveys are much quicker, so customers are more likely to agree to them and the results are very accurate.

Approximately 40% of those interviews with a customer are done live while the other 60% is automated.

For SQM’s customers the goal is improving the call centre’s customer’s satisfaction. Unhappy customers tend to leave, taking their money with them.

SQM Group’s Lara Pow, vice president of quality and analytics in SQM’s own call centre.

SQM not only analyzes the calls, but then compares a customer’s results to those of 400 other call centres, otherwise known as benchmarking, a process that SQM pretty much invented for the industry back in 1997.

Knowing how you are doing in relation to your competitors is important, but there is another measure that matters even more.

Desmarais calls it “the metric that matters the most.”

He explains, “The most important thing is first-call resolution (FCR).

There is no more highly correlated metric. It’s the holy grail for call centres.”

Intuitively that makes sense.

Whatever you might call in to deal with, would you prefer to get it fixed the first time or would you like to call in two, three or more times to sort it out?

The estimate is that a 1% increase in FCR satisfaction translates to a $276,000 saving for the average call centre and its parent company.

It’s not only that a customer who has to call in several times is

taking up more time and increasing costs, but it means their frustration factor is going up along with all the unpleasant consequences for the business. FCR is so important that it became the measure for SQM starting in 2000 when it started to track how many customers receive FCR. There is a belief that call centres are mostly focused on turnover, that is, how many customers they can process in a given amount of time. It is a factor, but according to Desmarais, it is a minor one. “The call centres I work with are not that concerned with call turn over. It’s not a sweat shop.”

SQM started a recognition program for its customers, helping to set the bar for their operations. It started in 1998 with Call Centre Industry Awards, and expanded in 2006 with the Call Center World Class Call Csat (Customer Satisfaction) Certification Awards.

If you’re covering a yawn at the thought of another award, Desmarais says it matters to the Continued on page 8

Photos by Shawn Talbot

Mike Desmarais sits behind his company’s most coveted possession, the Call Center World Class Call Csat (Customer Satisfaction) Certification awards.

Okanagan COnTInUED FROM PagE 13

Kelowna Waldorf School

however, far from homogenous in their approach or their development plans.

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Penticton has only recently formed and started to build its economic base through the Penticton Indian Band Development Corporation, following in the footsteps of the Osoyoos Indian Band Development Corporation. Osoyoos is already well established with ownership or interest in 17 different companies including Spirit Ridge Vineyard Resort, Nk’Mip Winery, Canyon Desert Golf Course, a convenience store, a construction company, an RV park, a daycare, Mt. Baldy Ski Corp., Senkulmen Business park and Oliver Readi-mix.

What each band started with is enormously valuable land. The City of Penticton is squeezed between mountains and lakes leaving the only easily developed flat land on the Penticton Indian Reserve to the west.

Osoyoos’ huge territory has been developed in places where highway access or proximity to the Town of Osoyoos makes the most economic sense.

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The Westbank First Nations has taken a much more individualistic Registration on just Now! approach.

The band’s land north of West Kelowna has been the sight of intensive residential, business and commercial developments.

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While the Band itself is prospering from an enormously increased tax base from no less than five large commercial developments and 8,000 non-band residents, the entrepreneurial spirit is embodied in a few key individuals who Waldorf have gathered Kelowna Schoolthe land packages. In addition to leasing land, individuals like Noll Derriksan have built up several enormously successful businesses on his own.

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www.KelownaWaldorfSchool.com N.C. Derriksan & Son Enterprises runs a development company, owns JSDS General Contractors, a heavy equipment leasing company, CA Okanagan Business Examiner 2010 7 Promotions, Skyline Billboards, an executive travel service and/ aJulyFirst Nation jewelry company. Derriksan is prominent, but not alone in his successes.

Call centre

Continued from 7

emotional calls – they have a worldclass call centre.”

The losers he won’t name directly, but it isn’t too hard to guess their identity.

Desmarais confides, “Telcos are the worst performing call centres.”

industry. He says, “Lots of customers come to us because they want this hardware [referring to the award].” Only one customer in 20 qualifies for this top designation.

The companies that are consistently doing the best and achieving this high level of distinction will probably surprise you. Some of the, shall we say institutions that Canadians love to complain about frequently, have made their call centres as friendly and effective as possible. The big banks are on that list, but Desmarais goes out of the way to mention how well ScotiaBank does in dealing with customers.

Another winner is our provincial insurance overseer. Says Desmarais, “A real success story is ICBC. Their call centre is taking on tough

productivity. Last year, with gross revenues of $5.5 million, just under $1 million, or almost 20%, was put into R&D. Lara Pow, vice president of quality and analytics, articulates the biggest part of that investment: “We build our own software.”

The irony that electronic communications companies are among the worst communicators is not lost on him.

It’s paid off. She adds, “We made such productivity gains in the software we developed at the start of the last recession that we were able to reduce our prices.”

Communication is something that SQM has done little of in its own home market. Business wise, it didn’t matter a lot because SQM’s customers are scattered about the globe; none are in the Okanagan.

SQM was rated as the 127th fastest growing company in Canada by Profit Magazine last month. That is based on a 401% revenue growth rate in the past five years and a 95% customer retention rate.

Still, just how far under the radar SQM is flying is surprising given its size. Desmarais opines, “We are the biggest tech firm in Vernon, possibly the whole Okanagan.”

Remember that this revenue growth has been in the face of a recession and the rapid rise of the Canadian dollar (the majority of SQM’s clients are American).

But it’s not just that SQM isn’t blowing its horn locally, it hardly blows it at all. Desmarais says, “We have never spent a dollar on marketing.”

Instead one of Vernon’s biggest companies relies on word of mouth, a website and satisfying its own customers.

The future is very bright. For all of SQM’s success Desmarais says there are 6,000 call centres in Canada, and 65,000 in the U.S., which means they are tapping into less than 1% of their potential customer base presently.

Part of that satisfaction arises from a firm commitment to reinvestment and high

Who knows, we might even hear again from Vernon’s quiet tech giant before it reaches 1,000 employees.

Focusing on what we have There are many good causes out there that deserve our support, and choosing one involves many considerations. When Steve MacGregor approached his friends and business colleagues about helping out with the Organics for Orphans’ initiative he relied on the project’s inherent common sense and worthiness to help sell the idea.

Much more detail on the Organics for Orphans program is available

at www.hopeforthenations.com/ project/project.aspx?asset=171, but it can be summarized by this statement: “Our vision is to see rural Africans escape extreme poverty by returning to agricultural basics, with enhancements. The Organics for Orphans strategy is premised on the belief that small scale farmers can produce greater harvests at a lower cost.”

Organics for Orphans isn’t about

Kim Koroll, along with Steve, Pegi and Sheila MacGregor, are all fundraising to assist Africans to make better use of their farmland and provide themselves with a decent living.

8 Okanagan Business Examiner / July 2010

giving away food, but fits in with the idea that teaching a man to fish is much better than giving him one.

A business colleague of Steve’s is Perry Hildebrandt of Flooring Canada, who is sponsoring MacGregor’s initiative with $500.

He says, “I have known Steve for years. He is a good man and I trust him.”

Pressed for why this cause is one worth supporting, Hildebrandt ponders a second, “We’re affluent.

I don’t mean just me – I mean the people in our society are very affluent. We throw more things away than most people in the world have.”

Despite that he says, “We too often focus on what we don’t have instead of what we do have. Then we feel grumpy.” Hildebrandt doesn’t say so, but clearly believes there are more important things to spend your time and money on and helping people is one of them.

Keith Stutters of Stutters Restoration has employed MacGregor for 15 years. Stutters works with a foundation called Gloria di Dio, which he started a decade ago. The foundation exists to make sure children don’t go hungry, and, says Stutters, “It seems to me that [MacGregor’s Organics for Orphans] fits in with our goal of feeding the children.”

The MacGregors do not run the Organics for Orphans program, but as they are journeying to Tanzania this fall, they have decided to use their upcoming climb of Kilimanjaro and their musical talents to draw attention and fund raise. If you wish to hear the MacGregors perform live while contributing to this worthwhile cause, plan to attend the fundraiser at the Minstrel Café in Kelowna on July 26 at 7 pm.

Tickets are $20 per person. More details at www.kilimanjaro2010.ca.

MacGregor’s wife Sheila says 100% of the funds raised at the event will go directly to Organics for Orphans.

How to Lift the PM’s

Muzzle

By Helene Buzzetti and Press gallery colleagues

A few weeks ago, many journalists nodded knowingly at this Tweet by Canadian Press reporter Jennifer Ditchburn.

Those hand-out shots are, unfortunately, widely used by media outlets, often without the caveat that they are not real journalism.

“My Friday giggle... a spokesperson who emails me ‘on background’ and then says: I can’t answer your question.”

In the end, that means Canadian only get a sanitized and staged version of history -- not the real history.

It’s a bit of gallows humour about a problem that began as a minor annoyance for reporters working on Parliament Hill in Ottawa and has grown into a genuine and widespread threat to the public’s right to know.

Rationing facts

Most Canadians are aware of the blacked-out Afghan detainee documents and the furor over MPs’ secret expenses. But the problem runs much deeper.

Under Prime Minister Stephen Harper, the flow of information out of Ottawa has slowed to a trickle. Cabinet ministers and civil servants are muzzled. Access to Information requests are stalled and stymied by political interference.

Genuine transparency is replaced by slick propaganda and spin designed to manipulate public opinion.

The result is a citizenry with limited insight into the workings of their government and a diminished ability to hold it accountable.

As journalists, we fear this will mean more government waste, more misuse of taxpayer dollars, more scandals Canadians won’t know about until it’s too late.

Life after muzzling It’s been four years since Harper muzzled his cabinet ministers and forced reporters to put their names on a list during rare press conferences in hopes of being selected to ask the prime minster a question. It’s not uncommon for reporters to be blackballed, barred from posing questions on behalf of Canadians.

More recently, information control has reached new heights. Access to public events is now restricted. Photographers and videographers have been replaced by hand-out photos and footage shot by the prime minister’s press office and blitzed out to newsrooms across Canada.

It’s getting tougher to find an independent eye recording history, a witness seeing things how they really happened – not how politicians wish they’d happened. Did cabinet ministers grimace while they tasted seal meat in the Arctic last summer? Canadians will never know.

Photographers were barred from the fake photoop.

Meanwhile, the quality of factual information provided to the public has declined steadily.

Civil servants – scientists, doctors, regulators, auditors and policy experts, those who draft public policy and can explain it best to the population -- cannot speak to the media.

Instead, reporters have to deal with an armada of press officers who know very little or nothing at all about a reporter’s topic and who answer tough questions with vague talking points vetted by layers of political staff and delivered by email only.

In addition, the Access to Information system has been “totally obliterated” by delays and denials, according to a scathing report by the country’s information commissioner. Requests are met with months-long delays, needless censoring and petty political interference – the most cringe-worthy recent example involves a bureaucrat forced to make a mad dash to the mailroom to rescue a report on Canada’s real estate holdings after a senior political aide ordered the report “unreleased.”

Politicians should not get to decide what information is released. This information belongs to Canadians, the taxpayers who paid for its production. Its release should be based on public interest, not political expediency.

This breeds contempt and suspicion of government. How can people know the maternal-health initiative has been well thought out or that the monitoring of aboriginal bands has been done properly if all Canadians hear is: “Trust us”?

Reporters have been loath to complain about this problem. But this needs to change. This is not about deteriorating working conditions for journalists. It’s about the deterioration of democracy itself.

A call to other journalists Last month, reporters gathered in Montreal at the Canadian Association of Journalists’ conference to discuss these issues. On behalf

of our members, we are calling on journalists to stand together and push back by refusing to accept vague e-mail responses to substantive questions that require an interview with a cabinet minister or a senior civil servant. We are also asking journalists to stop running hand-out photos and video clips.

We are also calling on journalists to explain better to readers and viewers just how little information Ottawa has provided for a story.

Every time a minister refuses to comment, a critical piece of information is withheld or an access request is delayed, Canadians deserve to know.

Finally, we are asking editors to devote the time and money it takes to dig beyond the stagemanaged press conferences to get to the real story. This is not about ideology or partisanship on the part of journalists. Journalists aren’t looking to judge the policies of the Conservative government. Rather, we want to ensure the public has enough information to judge for themselves.

Journalists are your proxies. At our best, we ask the questions you might ask if you had a few minutes with your prime minister or with Environment Canada’s top climatologist. When we can’t get basic information, we can’t hold your government to account on your behalf.

In order to have a genuine debate about matters of national interest, people need information.

In order for citizens to be involved and engaged and make smart choices at voting time, they need information.

It’s time we got some.

This article is by Hélène Buzzetti, president, Canadian Parliamentary Press Gallery; Mary Agnes Welchm president, Canadian Association of Journalists; Brian Myles, president, Fédération professionnelle des journalistes du Québec; Kim Trynacity, president, Alberta Legislature Press Gallery; Christine Morris, president, New Brunswick Press Gallery; David Cochrane, president, Newfoundland Press Gallery; Réal Séguin president, Quebec Press Gallery; Wayne Thibodeau, president, Press Gallery of the Prince Edward Island Legislative Assembly; Karen Briere, president, Saskatchewan Legislature Press Gallery Association.

Okanagan Business Examiner / July 2010 9

End of the Line part 2 As rail in the North Okanagan continues to wind down CP stonewalls and the federal government dithers

By Bobbi-Sue Menard

Driving through the North Okanagan it can be difficult to catch glimpses of the Okanagan Valley Railway tracks. Service has been shut down since August 2009 between Sicamous and Armstrong, and despite a desperate bidding process by small, local companies for the southern section between Grindrod and Armstrong the discontinuance process has moved to stage two as mandated by the Canada Transportation Act. CP’s spokesperson won’t comment directly on why private bids did not survive the negotiation process in stage one, citing commercial confidentiality.

Federal regulation proscribes what CP can charge on a standalone short rail line, and after Owens-Illinois closed its Lavington plant, CP says the entire North Okanagan section became a nonviable, money loser.

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10 Okanagan Business Examiner / July 2010

As of June 7 the three levels of government had 90 days to put together a plan and enter into negotiations with track-owner CP Rail to restart the economically vital rail service in the North Okanagan. Thousands of jobs and a very large share of the economy in the North Okanagan rely on rail transport.

A report commissioned by the City of Vernon, and released in March 2010, that examined the feasibility of an intermodal station stated, “The additional costs of trucking to reload centres for shipment by rail in the event that direct rail service becomes unavailable would be very significant. The forest sector accounted for 2,455 jobs in the North Okanagan in 2006, 6.2% of the total labour force.”

The report valued agriculture in the North Okanagan at $111 million per year, with 2,370 employees in the sector. Henry Bremer, president of the Kamloops Okanagan Dairymen’s Association, says closure of the railway hits directly at his 95 member-farmers’ bottom line.

“The potential effect is to increase the cost of feed 10 to 15 dollars a ton, even with market competition, when you feed 50 tons a month that’s thousands of dollars per year, per farmer.”

An oft-overlooked business sector that depends on rail is the composites cluster, which manufactures plastics and other modern materials. Over 1,200 employees generate approximately $250 million per year in revenue, and most of the raw material is shipped by rail,

which allows them to compete with lean and efficient inventories.

On the upcoming government negotiations, CP will only say, “We are not going to prejudge the outcome.”

In a June 18 letter sent to all three levels of government CP made its mandatory, regulated offer for government to step in and purchase the rail line. The federal government has the first option.

Okanagan Shuswap MP Colin Mayes has been aware of the rail discontinuance for some time and took the issue to Ottawa. At this point the answer appears to be that no federal help is forthcoming.

In a rambling, unfocused and mostly irrelevant letter from the Minister of State Transport Rob Merrifield to Mayes, Merrifield denies federal responsibility because the line does not cross provincial borders. Disruption or major losses to the local economy is not, apparently, important to Merrifield or his government.

Officials at MP Mayes’ office defend the letter, citing part of a single sentence, which states, “Transport Canada does not have any funding mechanism for the purchase of rail lines…”

The official also stated that because there is ‘no current, active land claim,’ (referring to Native land claims) it is not in federal jurisdiction.

This despite a line in CP’s letter, which states, “…the Line includes certain lands which may be former Indian reserve land under the Indian Act, there may be legal restraints on CP’s ability to transfer those lands for use for non-rail purposes.”

Merrifield’s letter then wanders off, trying to deflect attention from economic damage that is going to result from terminating the rail line, by rambling on about a near quarter a million dollars in funding the Okanagan Valley has received for the recreational rails-to-trails program.

Unfortunately Merrifield does not mention the portion of rail that private enterprise was bidding on or why it was turned down or what the government had to say about it.

That leaves the issue with the province and municipalities. Shuswap MLA George Abbott feels the rail line is, “Definitely worth fighting

Restarting rail operation between Armstrong and Grindrod, is only a part of the puzzle, says Hansma, who believes the viability of rail in the whole of the Okanagan is at stake.

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He feels an ideal solution would be to copy the rail trust agreement on Vancouver Island, but, regardless of the ultimate solution, “We’ve expressed an interest to CP,” says Hansma. “As far as we know the province must be at the table with us.”

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Municipal politicians have a much less sanguine view. Will Hansma, Mayor of Spallumcheen is blunt, “Without rail we become a ghost town for industrial jobs; we all rely on that rail system, often in ways you can’t immediately see. We aren’t talking about minimum wage jobs, but family supporting jobs.” Hansma has a seat on the board of Directors of the Regional District of the North Okanagan and is taking a lead role in the rail issue and is reasonably pleased with provincial support thus far.

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Abbott is cautious about endorsing the value of rail lines saying, “The province needs to look at a number of perspectives and the value of rail and non-rail, we need to take a comprehensive look.”

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Abbott is confident the provincial Minister of Transport Shirley Bond is, “Well aware of the issue.” A meeting has been scheduled between Bond and local municipalities.

Currently the only rail operator in the Valley study estimates a onetime upgrade and repair is Kelowna Pacific Railway. KPR operates on of the section will cost approximately $17 CN track from the Tolko plant in Kelowna to million. The second is the net salvage value price of the line, which has been speculated Kamloops and has an agreement to go from to be about $3 million. A relatively small total Vernon to Armstrong on CP track. The downturn amount compared to the $100 million invested in the U.S. housing market savaged the volume in twinning Highway 97 between Vernon and of business KPR did with Tolko, and currently and urging one that have the added KPR subsidizes their rail operations withInvalue less gets altit been thewould government JOn summerland parking. addition it Armstrong, is bonus trucks off theallroad, added services, including trucking to theirattention reload from to give the industry the making attracting a of keeping Adam Less, founder more competitive and the maintaining jobs facility in Winfield. breaks it can to keep number of companiesbusiness that former half owner o Okanagan Falls for thousands people. here. support work across the workofhappening KPR’s CEO, Ken Fitzgerald, admits it hasfilm been Marketing, has sold takes a bOw in the country.

For HansmapandOsy the cost benefit share of the busines spOtlight tough, “Our volumes over the last three Several years of them, bia analysis is simple, including Harold’s Custom struck out on his ow “Look at the big picture, rail has made us. have decreased by half, our costs have stayed mOves ahead Okanagan Film Equipment, HollyNorthTake andaway rail and we would be continually new company is Pro the same.

To survive we have had to provide Commissioner Jon The South Pandosy Business OffsetdoRentals Creative Brand Stra subsidizedImprovement by the province.” complimentary services. If we didn’t these are expected Summerland assisted Area in the to open their doors in and uses the logo o other things to subsidize the movement of Cannery Studios in its Mission district of Kelowna Okanagan Falls.

“Altitude is Everyth freight we couldn’t do this.

We still welcome the …Helping move from West Kelowna is going before Kelowna Okanagan Less believes his st challenge to hang in there.” In an unrelated story the to an advantageous city council to make their Businesses combine creative sk province is moving to boost facility in Okanagan Falls.of finding a solution get case. The new BIA has putsucceed KPR could be a key part in started today! navigatormultimedia.com experience in marke video and digital effects 201-260 Harvey Ave. ONLINE Summerland told Castanet together a proposed the North Okanagan.

The company is willing250-862-9868 to KELOWNA budget since He says, “I'm a grap work in the province by DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH that the new has for the foreseeable of $124,000 annually, based 1993 continue to goproperty to Armstrong artist and a writer, b extending the tax credits better working space for on a rate of $1 per thousand future, and their expertise makes them a also a strategist wit given to films to digital film including of assessed commercial readyproductions partner should the government decide career’s worth of ex media sectors.

None 32,000 sq. ft.the for line staging value. Points of interest to to purchase between Armstrong andoccurs in developing brands a of that work film shoots, a separate members parking, today! include navigatormultimedia.com Grindrod. “We have an interest the in going north,currently,get started strategic platforms Okanagan get started today! navigatormultimedia.com Harvey Ave. 3,000 sq. ft. carpentry signage, more community201-260 absolutely,” says Fitzgerald. “If but there is anyway 250-862-9868 KELOWNA me.” with the rise of the 201-260 Harvey Ave. section, aidtake and responsibility for ownership events, better lake access DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH someonefirst could KELOWNA Canadian dollar to near security rooms, a fenced and creating an identity for we would be a natural fit for operating themakers line have parity film DSFBUJWF t EBUBCBTFT t TFBSDI FOHJOFT t IPTUJOH lot three acres for the business area. andand doing maintenance.”

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for. I am very concerned by the loss. The province, municipalities and the regional district need to consider every possibility.”

250-862-9868

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Saving the line starts with two costs: a recent

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While rail is probably vital to future growth, there is barely enough current demand to keep the trains rolling at all.

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T 250.

Lipolaser & Spa

Changing the shape of things to come Science delivers results and at LipoLaser & Spa in Kelowna solid research and proven technology are delivering slimmer waistlines and more to clients from all over the Okanagan. Located in downtown Kelowna on Bernard Ave, LipoLaser & Spa has a full spectrum of services. Clients can enjoy teeth whitening, vibration machines, tanning, infrared sauna, sought after diamond and sapphire microdermabrasion, and cold laser facials.

LipoLaser & Spa owner Jason Ackerman invested in the best laser technology available approved and certified by Health Canada.

The choice was a simple one says Ackerman, “We chose technology with real research and science behind it. We use lasers with long term research and data with proven success.”

The LipoLaser Lapex 2000 BCS (Body Contouring System) delivers slimming results quickly when combined with a sensible eating and exercise program.

Clinical research has proven the LipoLaser works by delivering lowlevel laser to fat cell membranes.

This process releases intracellular fat, without affecting neighbouring tissue structures.

Moderate exercise allows the released fat to drain through the lymphatic system, the results are visible. The process has been evaluated by Health Canada and proven safe; each laser comes with an affixed Health Canada sticker.

To see client testimonials and the scientific data, research and results visit www.lipolaserandspa.com .

“The Lapex 2000 represents

some of the best science and laser technology available,” says Ackerman. “We have numerous happy clients who are achieving results they having been looking for.”

Advanced skin care at LipoLaser & Spa is delivered with diamond and/or sapphire microdermabrasion and cold laser facials. A team of four estheticians deliver competent and relaxing facials that have you lulled into relaxation and meditation while the cold laser is applied. It can be one of the most relaxing treatments you will ever experience. The microdermabrasion gently removes impurities and dead skin from the surface of the skin. When used in conjunction with cold laser therapy, the skin’s cellular rejuvenation is remarkable.

The Abrastim 200 is used for the cold laser facials. This cold laser operates beneath the skin to encourage healthy growth and a beautiful, glowing complexion.

Benefits of the photo rejuvenation process include increased circulation, stimulated collagen production, the reduction of hyper-pigmentation (age spots) and increases lymphatic activity. The results are fabulous and the process is pain free, the cold laser glides smoothly over the skin.

Additional esthetics services LipoLaser & Spa offer include teeth whitening, stand up tanning, infrared saunas, and whole body vibration and relaxation massage.

“When we chose the services LipoLaser would offer, we wanted to be able to give clients the opportunity to feel great about ADVERTORIAL

12 Okanagan Business Examiner / July 2010

themselves by seeing results,” says Ackerman.

Smiles are made brighter with the iBrite teeth whitening system, which can make teeth whiter in as little as 30 minutes. Two different whole body vibration technologies create a cardio effect that produces quick results, a ten minute program on the vibration machine is the equivalent of an hour on the treadmill. Many clients use the whole body vibration with LipoLaser Lapex 2000 treatments to amplify their progress, and others use it a part of a monthly toning program.

The variety of treatments that LipoLaser & Spa offers is matched with exceptional value for a limited time while they are located on Bernard. “When LipoLaser first opened we wanted as many people as possible to experience the results,” explains Ackerman.

“The decision was made to make LipoLaser extremely affordable and our clients are benefitting from that decision. We have clients from Kamloops, Vernon, Penticton, Vancouver and Alberta who make the trip to LipoLaser because of our pricing.”

LipoLaser enjoyed a fantastic first year. In November 2009 the company opened its second LipoLaser & Spa in Huntington Beach, California, where the LipoLaser concept spa has been met with an overwhelming response. “California and Kelowna are both early adopters of health technologies, with educated consumers,” says Ackerman.

“LipoLaser is building its success on results and value.”

FROM THE DESK OF

DERRIKSAN GRAND CHIEF, WESTBANK FIRST NATION | GRAND CHIEF, UNION OF BC INDIAN CHIEFS, FOUNDING MEMBER

Don’t advertise a bad credit rating Advertising can be a boon to get your product to your buyers. There are many ways to reach your market – a web site, brochures and trade magazines are just a few.

A curious thing constantly occurring within the advertising domain is clients not paying their invoices in a timely manner. It almost seems that those buying advertising don’t consider it a “real” cost, and tend to ignore their billings.

Entirely too much time is being expended by advertising media collecting their receivables.

When calls for payment are ignored and receivables go beyond the 30 day billing period it begins to get costly.

If you’re someone who is late in paying and find either of these procedures being used to get you to pay your bills, you need to consider that you have seriously impacted your credit rating and worthiness, which will hurt your ability to get a loan, or use your credit facility.

Advertising is a real cost to your advertiser provider; they have costs to cover the same as you do and they are running a business, just like you are.

The use of a collection agency or a small claims procedure against you will be on your credit record for some time and make it more difficult to do business, even after you’ve paid up.

Your credit rating is your most valuable asset – guard it well.

In business your credit rating is a valuable thing.

Without it you’ll find yourself having problems you wouldn’t have if you simply looked after your obligations.

The best advice I could give anyone in business is to ‘pay your bills’ in a timely manner.

Noll Derriksan is Grandchief of Westbank First Nation Lands, Grand Chief of the Union of British Columbia Indian Chiefs and owner of NC Derriksan and Son Enterprises.

Companies that provide the medium for advertising are reluctant for the most part to pursue their receivables in a more aggressive manner, and they shouldn’t be. They need to use a collection agency or a small claims procedure to get their money.

Okanagan Business Examiner / July 2010 13

HSTeria HSTeria

HSTeria HSTeria

HSTeria HSTeria HSTeria HSTeria HSTeria

The HST has arrived and it hasn’t changed civilization as we know it. This may have been the most controversial, least understood and worst communicated tax change in B.C. history.

• Housing costs rose by 1.4%, clothing and footwear by 1.5%;

• HST is good for business and the economy.

• Food costs fell by 0.7%, the cost of running a household fell by 2.9%, health and personal care fell by 1.4%;

There has been some fine theatre and speculation about what HST means for B.C. My favourite is the gentleman who claimed, on air, that his dental bills would rise by $30,000. It made a spectacular sound-bite, but implies he was spending $428,000 a year on dental work, and ignores the fact that most dental services are exempt from HST.

• Cost increases were slightly smaller for lower income households than higher income households HST was “progressive” rather than “regressive”

The reality is that for most consumers, HST will be a non-event.

It went into effect with little fanfare in Ontario and the three Maritime provinces.

I feel it is more useful to look at what actually happened after Nova Scotia, New Brunswick and Newfoundland implemented HST in 1997. According to studies by Michael Smart and Richard Bird of the University of Toronto: • Overall consumer prices in HST provinces fell by 0.3% relative to PST (provincial sales tax) provinces after harmonization;

• Business investment rose by 12.2% for three years above trend lines in HST provinces relative to PST provinces.

The important things to take away from these results are: • These are averages, and individual households will have individual experiences; • There was no increase in overall prices, and the shifting in categories (i.e. higher shelter prices, lower household operating costs) was small; • HST did not disproportionately disadvantage the poor;

TD Canada Trust can help.

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TD Canada Trust is dedicated to helping build and grow your business. We offer businesses a range of innovative, specialized products and services.

Our specially trained Small Business Advisors and dedicated Commercial Banking Relationship Managers are committed to helping you by: • discussing your banking needs • offering borrowing and investment solutions • delivering excellent personal service

Call us today for an appointment and find out how we can help your business succeed.

Why so contentious in B.C.?

There has been a well-run plebiscite aimed at removing the HST. The issue has acted as a lightning rod for discontent with the B.C. government, which failed utterly to make its case. The plebiscite required the government to register as a lobbyist, but it missed the deadline so it was gagged and the anti-HST side had control of the headlines.

The government went ahead with something as increasingly unpopular as HST because, it turns out, the HST is really good for the economy.

PST has several problems. It is fiendishly complicated, and the final consumer pays PST and GST on a sticker price that includes PST paid on some of the costs involved in producing or providing that item.

Imagine a reel of cable imported into B.C., and then used by a logging contractor. If the cable is used to bundle logs together, they have to pay PST on it, but if the cable is used for high lines to move logs around, then no PST is due. The price charged by the importer will include PST on things like computers and the electricity needed to run offices and warehouses. The cost of equipment used by the logger to build and maintain access roads is subject to PST, which must be covered in the price when the logs are sold. Again, it is complicated, and there is tax on tax on tax.

GST works differently. Businesses can deduct the GST they paid on their purchases every step along the way, so the government only collects 5% of the final sales price.

HST works like GST. Starting July 1 businesses will be able to deduct all the provincial sales tax they used to pay. Their cost of doing business goes down.

In a competitive environment, prices to the end consumer go down too.

14 Okanagan Business Examiner / July 2010

It doesn’t happen immediately, as it takes a while for those HST rebates to work their way through the chain.

Businesses also reinvest some of their cost savings in plant and equipment, for better productivity and lower costs. Healthy and profitable businesses tend to hire people. HST should be good for B.C.’s economy (exports in particular), and that is why the B.C. government is going ahead with this.

What happens next?

The chief electoral officer has until August 16 to determine whether the petition has been successful.

A multiparty committee (with a majority of BC Liberals) will recommend a vote in legislature or a referendum. The Liberals have a majority and can vote to keep GST, or hold a referendum that they can ignore.

The B.C. government is unlikely to repeal HST for several reasons. HST is likely to be good for the province.

Some 85% to 90% of registered voters did not sign the petition, so there is no clear mandate for scrapping it at this point. Further, repealing HST would likely be an economic pothole for the province.

Reverse the logic of the Maritimes example. Investment spending and profits would be cut back, along with jobs and economic growth.

Retail prices would jump. The province would also have to repay the $1.6 billion from Ottawa, funded by painful spending cuts or higher taxes.

A sensible strategy might be to put the HST to a referendum in the fall of 2011, where it may be supported.

Most voters will have realized by then that the HSTeria is much ado about nothing.

Dominik Dlouhy P. Eng, MBA, CFA is a Chartered Financial Analyst and planner with Partners in Planning Financial Services Ltd. and The Fraser Financial Group LLP. You can reach Dominik at 545-5258 or dominikd@ fraserfinancial.com with questions or comments. Opinions expressed in this article are those of the author and not necessarily those of Partners in Planning or The Fraser Financial Group.

Requests for Qualifications

The PenTicTon indian Band develoPmenT corPoraTion (PiBdc) is soliciting requests for

Qualifications (rFQ) from experienced developers, contractors and design companies who are interested in entering into a significant new land development joint venture.

a full range of infrastructure, design, engineering, land use and environmental planning and related capital and financing of the projects will be required for:

• Approximately 550 acres (215 Ha) of terraced lands • Prime lake and city views • Adjacent to the airport and highway #97 • Mix use development with a 90 year lease • Variable density with a planned unit development plan • A range residential neighbourhood styles and development • A professional 18 hole golf course • Potential Hotel/accommodation facilities • Village/neighbourhood commercial • Parkland, trails and open space areas If you are a company that can put together a master plan and a team who can oversee the full range of infrastructure, design, construction, funding and capital to undertake the development of the project to final sales and marketing; work with a first nations development corporation (and LLP) as a joint partner on the design, phasing, construction and revenue sharing, then; Send your Company profile including background, previous projects, qualifications, corporate principals and related expertise to the PIBDC offices: business@pib.ca, or mail to PIB Development Corporation, RR#2 S65 C35 Penticton, BC V2A 6J7, or drop off in person at 200 Westhills Drive, Penticton, BC.

A developer package is available and any questions may also be addressed to the

General manager, robert Greno, email: business@pib.ca or telephone: 250-492-3154.

Deadline for submissions is August 31/2010 at 12 noon.

PIBDC

Processing the Food Industry according to Agriculture and AgriFood Canada.

Across the country the processing industry employed 300,000 people.

These figures do not reflect agriculture; although there is overlap where some farmers also process food.

It is the second largest manufacturing industry in Canada.

In 2006 food processing rang up sales of $78 billion dollars. That number breaks down to $68 billion for food processing, leaving the other $10 billion to beverage manufacturers. Around 80% of all processed goods consumed

by Canadians is processed here,

In the Okanagan the industry is well represented, although perhaps more heavily by the beverage sector because of the wine industry and Sun-Rype.

There is however a considerable number of other processors in our region – a list compiled in 2007 by the B.C. government lists 63 food processors, not including wine makers, from Salmon Arm to Osoyoos. They did everything from making beer to dairy, meat processing to bakeries, coffee to nutraceuticals.

Nico Human is the CEO of the BC Food Processors Association, a small organization with five full

time staff that represents the concerns of food processors to government.

His group has a membership of 165 members, of which 95 are actual food processors (as opposed to allied groups or organizations that do not actually process food but have an interest in the industry).

Member companies range from two to 800 employees; although most are smaller. Human’s organization coordinates with a Canada wide processor association, provides education and business development programs to its members and lobbies governments.

He says there are many issues that are in common to most, or all food processors in the province and those are what the BCFPA focuses on.

He outlines some of the major issues currently facing food processors in the province.

On Food Safety “Food safety is also a huge issue.”

According to Human it’s not just about the usual list of issues like hygiene or proper storage. There are increasing regulations and accountability. He says many food manufacturers find that retailers can be stricter than the government. Big stores now demand that a processor not only be safe in their own environment, but can vouch for the suppliers who provide them with the raw products for their goods.

On Labeling You may recall a story from two years ago when a documentary highlighted a can of mandarin oranges that was labeled ‘Product of Canada’. Under the regulations existing at that time if 51% of the monetary cost of making a product happened in Canada, it could be so labeled. In the case of the oranges, the canning was done here.

Since then the government has proposed new rules that require 98% of the ingredients, as measured by cost, come from Canada. Human agrees this new system would solve the problem of foreign foods masquerading as

16 Okanagan Business Examiner / July 2010

home grown, but says the new suggestion would tilt the balance so far the other way it would still end up hurting producers. Some common ingredients in food are not necessarily produced in sufficient quantities in Canada Sugar is a good example. Used extensively in many food products, Canada produces sugar from beets, but that is seasonal. Once mixed into a sugar manufacturer’s supply it is impossible to determine how much of the sugar is Canadian beet sugar as opposed to imported, and it is very easy for sugar to represent more than 2% of an item’s value.

Spices can also easily take a product over the 2% cost limit.

If the 98% rule goes ahead it could well be the opposite of the old rule, preventing many companies in Canada buying almost exclusively from Canadian sources from calling their product Canadian. Human says a list of exclusions will need to be created or, a better solution, would be a requirement for 85% of the ingredients by value be Canadian.

On Buying Local Human says his organization has been long one of the vocal proponents that a ‘Buy B.C.’ program be brought back. The BCFPA is not alone in pushing for this. In fact, he says, “It’s strange that the main guy I used to lobby with, Steve Thomson (who used to head up the B.C. Agriculture Council), is now the guy I lobby to.”

On Consumers There is a change in how consumers see food. Human says the trend of people being divorced from the land and food producers is not stopping, especially among the youth. “Kids are distanced from the food and young kids don’t know how to prepare food.”

At the same time health scares and media is creating pressure on producers. Says Human, “The majority of consumers want it to be quick and convenient, but they want it safe and nutritious and to last on the shelf.”

The Reinvention West Kelowna is assembling the pieces of its own future as it strives to reinvent itself

Stories & photos By Devon Brooks

There is a party game where you ask people who know you to define your character in one word.

While fraught with possible misinterpretation or even insult, it is interesting because, whether you agree with the descriptions, it is probably a true reflection of what they see in you. If we were to apply that party trick to the District of West Kelowna the word that probably best applies is transition.

It’s much more than just the new municipal government; although it’s true there as well.

Mayor Doug Findlater says most people think the government transition is history since it was incorporated on December 6, 2007, but it’s simply not true. He points out, “We’re still in transition.”

Some items normally controlled by a municipal government are here, some are just arrived (like transit and GIS or computerized mapping), and some, like road maintenance, won’t be here for another year or two.

Road maintenance is still under the control of the province. While this is frustrating for some people who may want changes right now, Findlater points out that it saves money in the short term and it means there is one less thing he and the new administrative crew have to deal with this second.

This is providing West Kelowna time to put some studies in place and make some decisions.

If you ask studies on what, the answer is pretty

Driver

The Westbank First Nation Lands is probably the fastest growth in the Okanagan Think of China and the rest of the world, from an economic standpoint.

Most countries consider a 3% growth rate to be a healthy one, and if it tips into the 5% range economists worry about ‘bubbles’, but China is different. It recently announced it was trying to slow its economic growth rate to ‘just’ 9%.

Jayne Fosbery is the Westbank First Nation’s (WFN) economic development officer. Asked if the incredible pace of development seen on WFN land on the westside is going to take a breather in the next few years, she shakes her head. “I think the pace is going to continue, if not increase.”

If you are shaking your head skeptically consider this: even though four major shopping plazas have opened on WFN lands in the last five years, another one covering just over 10 acres was announced in conjunction with the $40 million interchange and overpass being built at Westbank Road and Highway 97 with one confirmed tenant. In addition Noll Derriksan is financing

Continued on page 20

This view from Mt. Boucherie shows the blend that is the West Kelowna: agricultural land, sprawling housing developments, the highway, industrial and commercial development, all bordered by Lake Okanagan and at the point, the treed land of Westbank First Nations

and building his own developments at 1979 Old Okanagan Highway, which includes the largest office building on the Westside along with two other buildings and more to come. Derriksan is also developing the area’s first nightclub and a large auto centre.

Residential building is still going, if more slowly. As the recession crunched into North America in 2008 the WFN issued 15% more building permits than it did the year before (248 in 2008 versus 215 in 2007), albeit the value of those permits declined.

Assessed property values have tripled from 2000 when they stood at $274 million to $933 million in 2008.

If the comparison is that both China and WFN lands are undergoing tremendous growth, the comparison stops there. China has a huge population and while exports provide the foreign currency reserves, it is internal growth that keeps it going.

Westbank First Nation has a small population of under 700. That’s about 10% of the 9,000 people who now live on WFN’s two westside reserves, called Tsinstikeptum #9 and #10. It is externalities that are providing the opportunity for growth.

What the WFN really has going for it, besides a wonderfully attractive land base, is the drive of entrepreneurs like Derriksan, a can-do attitude, little bureaucracy and a drive to move forward.

Continued on page 18

Okanagan Business Examiner / July 2010 17

Westbank First Nations Continued from page 17

As Phillippe Daigle, Westbank Chamber’s president puts it, “The WFN has been the real leader in moving the area forward in the last 20 years – now we have to catch up.”

Mayor Doug Findlater also sees reason to thank WFN for its strong growth, but sees the two jurisdictions as being able to complement each other. For that reason he believes if WFN is going to build one of the densest commercial and retail environments his community should look elsewhere for its future economic growth.

“To my mind there is no point in duplicating what Westbank First Nation is doing very successfully.”

There is one more important ingredient in the recipe for success and that is an ability to move quickly. When Wal-Mart indicated it was interested in opening up on WFN land, it took three months for approval to be given rather than the two years the average Canadian community requires, with the same values.

Then too, there is no ALR land restrictions on any First Nations land, which removes yet another level of bureaucracy and delay when developers want to build.

Detractors claim that uncertainty over unresolved land claims discourages investors and developers, but of course such uncertainty is on the land around the reserves, not the land already in it. In the case of Westbank, even that uncertainty seems to be minor, if it is a hindrance at all. Findlater is keen to work with WFN rather than fight them because he has to.

Case in point is the Gellatly Bay area. The Mayor says, “We have achieved an agreement where we acknowledged there are land claim issues outstanding.”

Some bands have most land held by the Band

council, but on WFN lands it is largely held by locatees. Roughly speaking this means individual band members hold title to the land similar to property held privately anywhere in Canada with the one distinction that it can never be sold to nonBand members. The majority of development is thus occurring on this locatee held land, which comprise all the big box stores.

That’s why developments on reserve land operate under multiyear leases, for 99 years to provide certainty for investors.

For now, the band is prospering.

Despite the amount of building Construction is already well underway on the already happening there is interchange at Highway 97 and Westside Road. substantial land left for development and like any other place, some will increased value puts more money into the hands undoubtedly be redeveloped in the future. of both jurisdictions.

The Band itself is seeing a lot of benefits.

In the future, Fosbery predicts one of the next Fosbery says, “We’ve created a more balanced waves of development will be around tourism. tax base.”

“You’ll see more tourism-based businesses on That’s in addition to thousands of jobs. Even IR 10.” She says a hotel on the waterfront will Mayor Findlater admits that when he was likely be one of the first major developments. talking to the CIBC, which recently closed down There is another big change in way the land their branch in West Kelowna and reopened development is going. The new commercial it on band land, they pointed out that the 25 development going up around the interchange employees still lived in West Kelowna and paid isn’t going to be just a lease. This time the Band taxes there. has negotiated partial ownership. Fosbery says As far as the aboriginal population goes it is at part of the reason for that is to make sure more full employment. Fosbery points out, “If they’re Band members will have opportunities for higher not working it’s because they don’t want to.” paying and more challenging employment.

Then too, WFN is paying for services to West Kelowna and many of those service fees are based on the underlying value of the property.

So as plazas, homes and offices are built, the

That vision is to keep the Westbank First Nation lands moving ahead as a driver in the greater Okanagan area for years to come, something we will all benefit from.

Every sign on this part of the highway shows off the astounding growth and development of the retail and commercial sector on WFN lands.

18 Okanagan Business Examiner / July 2010

5 Top Reasons to Join the Westbank & District Chamber of Commerce 1. Credibility: joining the chamber adds credibility to your business, showing clients and customers you are interested in the health and welfare of your community.

2. Advocacy: the chamber addresses issues and concerns to the business and resident community to all levels of government.

3. Networking: the chamber gives members and business non members the opportunity to network creating a stronger business climate for the Westside

4. Connection: Member to Member: the chamber gives members connections to other members through

the weekly enewsletter and published monthly newsletter and the Member to Member discount program.

Member to community: Members may Rack their business cards or brochure in the Visitor Centre, Web page Business directory, Buyers guide & Member Directory, Tourism Westside programs and we operate an authorized Tourism BC West Kelowna Visitor Centre.

5. Affinity programs: through BC Chamber of Commerce, the Westbank chamber can access programs

that give our members lower costs i.e. Chamber Group Insurance, TD Merchant Solutions, Versa Pay Merchant Credit Card discounts, Fuel Fleet plans with Esso, Petro Canada, Mohawk, Imperial Oil, Primus long distance and Payworks.

Mission Statement: On behalf of the Membership and the community: the Westbank & District Chamber of Commerce will locally and regionally, Advocate, Connect & Educate. “We are the A.C.E. up your sleeve�

Contact us: 2372 Dobbin Road, West Kelowna V4T 2H9 Ph: 250.768.3378 Fx: 250.768.3465 email: judy@westbankchamber.com www.westbankchamber.com www.westsidetourism.com

West Kelowna Continued from page 17

much everything. Jokes Findlater, “We have so many plans that we need a plan of plans.”

Council is right now looking at a draft economic development plan, transportation, development and zoning, plus GIS and tourism. It may sound like typical government double-talk for studying things to death, but Findlater says it is about getting things right the first time to save money and time later.

“We want to plan it first rather than respond to this thing and that thing. Look, the Old Okanagan Highway was dug up four times in two years. I want to avoid that.”

It makes for a bewildering number of decisions that must be made, but many are interconnected and putting a priority on one thing, often means something else is put on the back burner. That’s not even considering whether or not West Kelowna has the money to do it.

So a good kilometer of the Gellatly Bay Road, to the immediate north

of the Cove Resort has a new, wide pedestrian and bicycle path alongside of it. This is good for residents, good for giving Cove visitors and residents a safe place to walk, helps to build tourism, but Findlater says it is only the first stage.

Eventually he says council hopes to extend that walkway for another couple of kilometers making the beach accessible and much more friendly to non-vehicle traffic, but money going there can’t be going elsewhere.

Less exciting things like sewers and sidewalks have been long neglected. Admits Findlater, “We have a ton of catch up to do.”

Phillippe Daigle is the president of the Westbank Chamber of Commerce. He says is impressed with how council has handled the many headed hydra of getting the new municipal structure built and functioning.

The Chamber of Commerce is

The decision to adopt West Kelowna as the official name of the new municipality was controversial and is a good symbol of the difficulties the newest Okanagan community faces

going through as much of a rebirth as the town is. Consider that for years, while decisions were made in Victoria or at the RDCO, the Chamber was the only body that represented purely local interests and provided a public voice to businesses and, often enough, residents alike.

The Chamber was as close to a town council as existed, but that made for a strangely two-headed beast. While it was still dedicated to representing its 496 strong business membership, it took on more than a few community issues. It relentlessly plugged and supported, for example, Westside Daze, the community’s biggest annual party.

Now, says Daigle, the Chamber

has to rethink itself and focus on becoming a “regular” chamber, whose main job is advocacy for local businesses. It is no coincidence that it retained the name of Westbank Chamber, rather than becoming the West Kelowna Chamber. Daigle says, “People think we are a West Kelowna beast, but we’re not.”

The Chamber represents businesses from West Kelowna, WFN lands and more than a few Peachland and Kelowna businesses are also members.

Hence the Chamber’s push to emphasize its business advocacy role, stepping back a little from the Westside general promoter image.

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The newly opened bicycle and pedestrian path along the waterfront down by the Cove Resort

with jobs, revenues and taxes. The other side of the coin is the costs or losses that governments can impose on businesses, sometimes indirectly, without intending to.

The provincial Ministry of Transportation is a good example. Daigle says automobile traffic is the sole focus of the Ministry when it considers the Okanagan and, in West Kelowna, that means fast and easy traffic flow.

a separate conversation, paints a similar vision about creating a town square, but Daigle notes, “Vision is hard to sell.”

If it can be made to happen it will take time, he adds. “It’s a slow process. I’m a firm believer that we need engagement and a chance to discuss what can be done.”

In the meantime Findlater hopes to convince

the Ministry of Transportation to abandon the couplet, and create a wider two-way street.

The Mayor also says that while the District may be a new thing, he is happy about the sound base of businesses like Gorman Brothers, Alpine Helicopters and other industry that provides jobs and a tax base for the town. Business, he says, that his council hopes to encourage and grow as the planning comes together.

The couplet in the Westbank downtown area may move traffic along, but many people including Daigle don’t believe it is beneficial to local business. Mayor Findlater agrees, saying, “I think our community has a consensus that the couplet has hurt our community.”

Despite the beauty of its beaches, West Kelowna lacks a central focus that can entice visitors to stay or where residents can gather.

The recent spate of closures of businesses in the downtown is a reminder that it is struggling.

Daigle prefers to emphasize the half full cup, saying, “I’d like to look on the downtown as a great opportunity. Do we try to do the same or something unique or different?”

His idea is a village square, like the ones that are omnipresent in every European city and village, would be a great way to repopulate business vitality and attract people. Findlater, in

West Kelowna’s new police station, under construction in the downtown

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301-515 Hwy 97 S. Kelowna, BC. V1Z 3J2 T 250 769 4999 F 250 769 2443 www.wfn.ca

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Okanagan Business Examiner / July 2010 21

WESTSIDE STATISTICAL SNAPSHOT WESTBANK FIRST NATION WFN Self Government Act came into force April 1, 2005 Five reserves covering 5,306 acres (2,161 ha) Tsinstikeptum #9 and #10 on the Westside are the only ones with permanent residents #9 - 1,585.9 acres (641.8 ha) #10 - 837.7 acres (339.0 ha) 1,200 registered land leases (2007) Population (all figures from 2006 census unless otherwise noted) WFN Membership 666 WFN Members living on WFN land 510 Aboriginal Identity on WFN lands 810 Non-aboriginal identity on WFN lands 5,700 Total population estimated to be on WFN lands (aboriginal and non-aboriginal) in 2009 ~9,000

Highest Education Level Achieved

Median household income $40,945 (BC $52,709)

Business Licenses (figures from 2008)

Aboriginal Identity on WFN lands: High School 16.2% (BC 27.9%); Non-university diploma 20.2% (BC 16.7%) University degree 7.1% (BC 19.3%)

Employment (all figures from 2006 census unless otherwise noted)

Total licenses 341 WFN Member licenses 67

Total population on WFN lands High School 30.0% (BC 27.9%) Non-university diploma 17.2% (BC 16.7%) University degree 4.1% (BC 19.3%) Income (all figures from 2006 census, so for income they are based on 2005 figures) Aboriginal Identity on WFN lands: Median individual income $18,019 (RDCO $25,039) Total population on WFN lands Median individual income $19,964 (RDCO $25,039) Average individual income $25,417 (RDCO $33,241) Aboriginal Identity on WFN lands: Median household income $39,553 (RDCO $52,709) Total population on WFN lands

Aboriginal Identity on WFN lands: Labour force participation rate 71.4% (BC 65.6%) Unemployment Rate 8.6% (BC 6.0%) Total population on WFN lands Labour force participation rate 54.9% (BC 65.6%) Unemployment Rate 5.7% (BC 6.0%) Three largest employment sectors for Aboriginal Identity on WFN Lands: Construction Industries 20.3%; Health care & Social Services 18.8%; Other Services 15.9% Three largest employment sectors for Total population on WFN Lands Business Services 18.6%; Retail Trade and Other Services both at 15.7%

not part of the new municipality of West Kelowna. Other numbers from other sources are available, but those tend to lump in the growth that is occurring on Westbank First Nation land. Even today, the District of West Kelowna has few numbers to report for the same reason.

Construction & Building Permits Total number of building permits 169 (2005); 248 (2008) Total value of building permits $9.9 million (2005); $43.6 million (2008) Number of new residential units 52 (2005); 113 (2008) West Kelowna There is very little data available on West Kelowna because the provincial government does not record the usual set of community statistics on unincorporated areas. The Regional District of the Central Okanagan does keep statistics, but those numbers included the entire electoral area, which covers some people and areas that are

Incorporated: December 6, 2007 (incorporated under the name of Westside District Municipality, which was changed to West Kelowna when a poll at the second election indicated the majority of those who voted wanted to be known as West Kelowna) Population: 28,793 (2007) Key Economic Sectors (in alphabetical order): Agriculture, Construction, Forestry, Manufacturing, Real Estate, Tourism

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west kelowna building permits 1421 Pinot Noir Dr $490,000 residential new – SFD, 3306 sf Contractor: Rykon Construction Mgmt – 250712-9664 1550 Pinot Gris Dr $290,000 residential new – SFD, 4024 sf Applicant: Gregory & Natalie Lakovic 1645 Pritchard Dr $800,000 residential new – SFD, 5076 sf Contractor: San Marc Custom Homes – 250-769-2033 20 2040 Rosealee Lane $195,000 residential new – SFD, 1806 sf Contractor: Pentar Homes – 250-862-9006 20 2040 Rosealee Lane $195,000 residential new – SFD, 1806 sf

Contractor: Pentar Homes – 250-862-9006 21 2040 Rosealee Lane $199,000 residential new – SFD, 1694 sf Contractor: Pentar Homes – 250-862-9006 22 2040 Rosealee Lane $190,000 residential new – SFD, 1612 sf Contractor: Pentar Homes – 250-862-9006 2437 Saddleback Way $210,000 residential new – SFD, 2605 sf Contractor: Westville Homes 2004 Ltd – 250-769-5272 2463 Paramount Dr $300,000 residential new – SFD, 3637 sf Contractor: Authentech Homes Ltd – 250-491-7690

2469 Paramount Dr $344,000 residential new – SFD, 3961 sf Contractor: Jazel Ent Ltd – 250-768-5799 2921 Ensign Lane $200,000 residential new – SFD, 2784 sf Contractor: Ambrosio Construction – 250-317-0431 3087 Sageview Rd $275,000 residential new – SFD, 3446 sf Contractor: Daniel & Lisa Jabbusch 3259 Vineyard View Dr $469,000 residential new – SFD, 2070 sf Contractor: Lenarcic Bros Construction – 250-768-0133 8 1468 Green Bay Rd $1,000,000 residential new – SFD, 7825 sf

Contractor: Jaycor Construction – 250-768-5070 1576 Griffiths Pl $100,000 residential add/alter - addition Applicant: Troy Becker – 250454-6683 2575 Thacker Dr $30,000 accessory building – garage Contractor: Katama Contracting – 250-864-0033 2543 Juliann Rd $1,750,000 commercial new – 12 tenant spaces, 25,575 sf Contractor: 0731411 BC Ltd – 250-470-8887 3717 Hoskins Rd demolition – SFD Contractor: Lakeside Land Dev Corp – 250-870-8605

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WEST KELOWNA PROJECTS ON THE GO 2390 Dobbin Rd (institutional new) – RCMP Public Safety Bldg Architect Omicron – 604-632-3350 General Contractor Maple Reinders – 250-765-8892 Project New public safety building – 2 storeys – 1,770 sm – concrete & steel structure Stage Construction Start – underway – construction completion anticipated fall/10 2708 Olalla Rd (institutional new) –Westside Fire Rescue Station 32 Owner District of West Kelowna – 778-7971000 Developer Hynes Development – 604-730-1570 Project Replacement of Westside Fire Rescue Station 32 – 630 sm Stage Rezoning Application – submitted – negotiations for a land swap agreement with Hynes Development underway 3630 Brown Rd (mixed-use dev) – The Heritage Owner

Investicare Seniors Housing Corp – 403244-2124 General Contractor XPS Contracting – 403-210-1920 Project New mixed use development – 4 structures – 10 storey, 180 unit seniors facility – 9 storey, 160 unit supportive living facility – 8 storey office tower – 3 storey parkade Stage Construction Start – underway – construction completion anticipated fall/11 851 Anders Rd (mixed use dev) –Lakeview Heights Village Developer Hynes Development – 604-730-1570 Architects Joe Y Wai Architect – 604-689-3166 Thomas Gaffney – 250-769-7628 Project New mixed use development – one 10 storey building surrounded by 3 & 4 storey buildings – approx 400 to 550 residential units – 6,000 sm commercial space – 1,000 sm community space Stage Rezoning Application – at 1st reading – construction start anticipated 2011

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Butt Rd (commercial new) – Great Canadian Superstore Owner Westbank First Nation – 250-769-4999 Developer Anthem Properties – 604-689-3040 Project New retail grocery store in Governors Landing Shopping Centre Stage Construction Start – site work underway Hwy 97 & Westside Hwy S (commercial new) – West Kelowna Landing Partner Westbank First Nation – 250-769-4999 Developer Property Development Group (PDG) – 604-696-5155 Project New commercial shopping centre – 278,000 sf – 9 structures – tenants include: TD Canada Trust, Shoppers Drug Mart, private liquor store, cinemas, food store, electronic and fashion stores Stage Construction Start – underway – construction completion anticipated spring/11 Mission Hill Rd (commercial add/alter) – Mission Hill Winery Expansion Owner Mark Anthony Properties – 604-263-9994 Architects Olson Sundberg Kundig Allen – 206624-5670 R Martin Cruise Architect – 604-6838414 Project Addition to Mission Hill Winery – multi use concrete complex – 2 to 4 storeys – 6,600 sm boutique hotel with 104 units – 30 guest houses -4 artist in residence studio units – 1,200 sm wellness centre – conference centre – art gallery – restaurant – winery – caretaker house – u/g parking Stage Rezoning Application – public consultation underway – Phase 1 construction start anticipated 2011 Shannon Lake Rd (multi-family new) – Tallus Ridge Consultant Protech Consultants – 250-860-1771 Project New multi family development – 3 development sites – approx 188 units Stage Rezoning Application – revised application submitted

3010 Louie Drive, Westbank, BC Ph: 250-768-3010 Fx: 250-768-3026 24 Okanagan Business Examiner / July 2010

2528 2542 Main St & 2505 Delray Rd (mixed use dev)- Westwynd Village Architect MQN Architects – 250-542-1199 Project

New mixed use development – 8 storeys – ground level commercial Stage Rezoning Application – submitted Treasure View & Shannon Lake Rd (multi-family new) – Treasure View Condominiums Owner Duck Lake Enterprises – 250-860-6909 Project New condominiums – 2 structures – 3 storeys – 82 units Stage Rezoning Application – approval anticipated summer/10 Vineyard Dr, Vineyard View Dr, Pinot Noir Dr (multi-family new) – South Mount Boucherie Neighbourhood Owner Victor Projects – 250-861-8884 Project New multi family development – 60 SFD lots – 60 townhouses – walkways & trails Stage Rezoning Application – at 3rd reading 1070 Stevens Rd (commercial new) – Craftsman Collision Auto Body Developer / General Contractor Craftsman Collision – 604-904-8886 Project New auto body repair shop – 2 storeys – 1,100 sm Stage Construction Start – underway 3745 West Bay Rd (mixed use dev) – West Bay Beach Resort Owner West Bay Vineyards – 250-768-3004 Architect New Town Architectural Services – 250860-8185 Project New residential & tourist condominiums – 4 structures – 3 to 4 storey buildings – approx 125 units – vineyard – waterfront park Stage Rezoning Application – 3rd reading approved 2543 Juliann Rd (industrial new) – New Industrial Building Designer 4D Engineering – 250-762-6488 Project New industrial building – 2 storeys – approx 25,500 sf – concrete tilt up structure Stage Construction Start – concrete footings underway

What is “Wrongful Dismissal” anyway?

A typical day at my office can involve fielding any number of questions about an dismissing an employee. They often sound like this: • ‘My employee is arguing with other staff, always late for work, not doing her job. I can fire her right?’

• ‘My business is losing money hand over fist, I can lay off my employee and if business doesn’t pick up, not bring the employee back and I’m good, right?’

• ‘I just got fired without any warning, my employer can’t do that, can he?’

• ‘My employer won’t tell me why she fired me, she can’t do that, can she?’

The simple answer to these questions is that in Canada (let’s leave out Quebec as the rules are a little different there) an employer may dismiss a non-union employee at any time for no reason at all, but there is a right way and a wrong way to do so. A dismissal the wrong way can end up putting a small employer under.

An employer dismisses an employee the wrong way by not giving advance notice of dismissal or pay in lieu of notice (severance) or by violating the terms of a written employment contract, or by violating the employee’s Human Rights.

The only time an employer can dismiss without advance notice is if the employer has “just cause” to dismiss.

“Just cause” dismissals however, are tough to prove. Employers will come to me saying that their employee has been late or absent time and time again and they are sick and tired of it, so want to fire the employee now, no advance notice and no severance. ‘After all,’ they ask me, ‘doesn’t the employee have a basic obligation to report to work on time and ready to work?’

Employees do have basic obligations to their employers, but in Canada the law requires that in most cases employees be treated like recalcitrant teenagers and be told clearly -in writing- when they are not meeting basic obligations and the consequence of not doing so (ultimately, termination).

In most cases, when my employer clients come to me (hopefully before they have let the employee go), there are no warning letters on the employee’s file and no written employment agreement, and they want to let the employee go now. Then it’s my job to coach my client as to how to dismiss the employee the right way.

After addressing potential human rights issues (for example, is she the only woman on the workforce, is he gay, is she a visible minority, is he disabled (mentally or physically), are religious observations creating challenges, etc.) I discuss

the employer’s minimum obligations under B.C.’s Employment Standards Act (or equivalent in other provinces or federally) and the employer’s potential exposure under the common law (the judge-made law).

Section 63 of the B.C. ESA sets out a formula of weeks of notice or pay in lieu depending on the employee’s years of service. This formula caps out at eight weeks for eight years or more of service. “Phew” says my employer-client, I can do that.

Not so fast I warn my clients. That is a minimum obligation.

If you have no written employment agreement clearly setting out that the minimum is the maximum, and a judge gets to decide what is the employee’s maximum entitlement to pay in lieu of notice (and if the process has gone all the way to court, the pay in lieu of notice is now called “damages”), the judge will decide by considering the employee’s age, length of service, responsibility or specialisation of position, compensation level and the availability of alternative equivalent employment. Lawyers help the judge decide by directing her to similar cases. The “good” news is that the maximum entitlement to notice or pay in lieu is 24 months, yes months. Not eight weeks.

When employer clients (hopefully) come to me before they dismiss, it is my job to strategize how to let the employee go without ending up in court and facing a possible damages award equivalent to up to 24 month’s compensation. Coming to me after the dismissal makes my job tougher and usually means the employer will write the employee (and me) a bigger cheque.

Employers can make the situation worse by not respectfully dismissing an employee. Publicly dismissing an employee; not fully investigating concerns before terminating for cause; letting the employee go without any notice or severance at all while knowing there is no just cause, and; by getting into the reasons for dismissal with the employee, are all ways to invite a fight.

While you may think it’s only fair to explain to the employee why you are letting him go, unless the reason is purely economic, as in a business downturn and has nothing to do with the employee, explanations are rarely productive.

is to get legal advice up front, before dismissing the employee. Every time.

Veronica Ukrainetz is the principal of Ukrainetz Law Corporation in Vernon, B.C. Her website is www. ulclaw.ca. This article is meant for reference only and should not be construed as legal advice.

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The best investment in your employment lawyer Okanagan Business Examiner / July 2010 25

Letters to the

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long and if you’ve ever been in the position of having to chase down a delinquent client, you know it’s not fun.

Following through on collections can be an intimidating task. We worry about offending our customers and have them not like us. The next time thisNote: sounds like you, ask yourself whether Editor’s you feel flush enough to extend an unlimited, Every now andloan then writer or an interest-free to as thea customer whoeditor falls something strikes you hard, and you react behind on payment. Here are a few simple strategies toSometimes help make sure are paidareon a emotionally. your you intentions timelybut basis: good, your words aren’t clear and you make a1.mess of things because you didn’t check Require that new customers submit a credit something good editors should. applicationlike andall actually check their credit references alternatively, Two monthsor,ago I read aboutrequire a shownew in customers pay in cash; Armstrong that was going to be honouring Vern

2. Do not continue sellW.W. to customers who Flatekval, a gunner to from II. repeatedly fail to pay on time. Remember, a sale As it happened, this was close to the is not complete until the money is in your hands; anniversary of the day that my own Dad, who 3. Apply penalties lateWar payments, was alsostrict a veteran from on World II, passed including surcharges and/or loss of credit away. privileges; Believing that any time is pretty much a good 4. Contact – preferably call - customers time to remind us of sacrifices that those immediately for payment of overdue accounts. in the military who fought for us made (and Growth intobusiness delinquent customers continue make), I and decided to publish a note are not the only reasons cash flow comes in remembrance, not only of Vern, but of allunder the pressure. new and company other vets,Aalive dead.often has money tied up in inventory and other assets like equipment and vehicles. It’s important to know the difference between what’s necessary and what’s ‘nice to have’.

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Editor

The first problem is that my rush of personal emotion closed my eyes to what was in front of me, creating something that I thought I was seeing. James Proctor pointed out the first of my mistakes: First, you create a good magazine for our area.

One WW2 bomber pilot with 26 missions lives in Ashton Creek – I just talked to him last week.

But my mistake was worse than that. The notice I originally received said Armstrong was to honour the last tail gunner, who was Vern, at a June 29 Memorial Park Show.

I have a cousin in Vernon who survived Dieppe, the war in the desert, Sicily, Italy, France and Holland. Several of my Lumby

Put together the words ‘last’, ‘WWII’, and ‘Memorial’, and cross wire that with my tearyeyed remembrance of my Dad and I made my mistake worse. Here is what Kelly and Katherine Graves had to tell me: I was recently reading your June 2010 magazine and came across an article titled; ARMSTRONG HONOURS LAST WII TAIL GUNNER. The article states that Vern Flatekval has passed on, this came as a shock as he is one of my uncles and I just finished talking to him. Could you please print a retraction or correction as the information is inaccurate.

The mistake many business owners make in forecasting is bundling inventory and production costs with related revenues in neat little monthly packages.

Essentially, they to be held September 15,assume 2010 the net of those two figures will fall into their (Registration at 7:15 a.m.) hands every month in the way of cash. Not so.

pplier, ing pically or very

Women’s Enterprise Centre is the go-to place for BC on the Board of Directors, women business owners for business loans, skills please email directly to training, business advisory services, resources, manager@vernonchamber.ca publications and referrals. Call us at 1.800.643.7014 or email info@womensenterprise.ca from anywhere in B.C.

Thank you for your time.

Kelly and Katherine Graves My apologies to Vern Flatekval, Kelly and Katherine Graves and all the veterans of World War II. I know how and why I made my mistake, but it really wasn’t that I misread something, it was that I failed to check up on the details. I hope I haven’t upset anyone or made their life more difficult and I especially want to say I hope that the number of veterans who are with us still will continue to be for many years to come.

If you are interested in participating

26 Okanagan Business Examiner / July 2010

The last Canadian veteran died in Washington, just recently.

To James I intended to write that my mistake was that I accidentally left out the words he was quite possibly the last tail gunner in the province, rather than the last vet of WWII. I know there are still quite a few vets around, including my own father-in-law!

1I 5' As a matter of fact there are several -BLFTIPSF 3PBE ,FMPXOB #$ WW2 Veterans in this area. I would name &NBJM ECžOBODJBM!TIBXCJ[ DB them, but that’s not my right.

XXX CDCFOFžUQMBOT DPN

Greater Vernon Chamber of Commerce

as soon to them cquired ally up

We lost the last WW1 Veteran in Western Canada when my father died in December 14, 2005.

Yours, James Procter, Vernon

However in “Armstrong honours last WW2 tail gunner�, you mention that [Vern Flatekval was] quite probably the last WW2 veteran in B.C.

To ensure you have enough cash is to prepare a cash flow statement. This statement forecasts and tracks money flowing into and out of the business as it changes hands. A cash flow statement reflects sales when they are confirmed, not when payment is received and costs when they are incurred, rather when payment is made.

7:30flow a.m. to 9:00cana.m.

Realistic cash projections save you the at the Best Vernon Lodge heartache of fatalWestern cash deficits.

Plan ahead to cover shortfalls, and resist the temptation to Ticketscent can as be itpurchased throughthe thedoor. spend every comes through Greater Vernon Chamber of Commerce at That makes250-545-0771, for a healthy business and takes a via email at lot info@vernonchamber.ca of the stress out of financial management. or register online at With stress levels down, it also makes for a www.vernonchamber.ca healthier you.

friends are WW2 combat veterans.

February 2010 Okanagan Business Examiner

|

45

C a l e n da r ORGANICS for FOR Orphans ORPHANS Organics FUNDRAISER - Jul. JUL. 26 Fundraiser

MINSTREL Café, CAFÉ, Kelowna KELOWNA Minstrel

Live entertainment to support a group that is assisting African farmers work sustainably and more efficiently. See story this issue efficiently. for more details. $20 per person entry. 250-762-9991 or go to www. kilimanjaro2010.ca.

BUSINESS After AFTER Hours HOURS Business JUL. 28 - The THE Barn BARN Gallery, GALLERY, Jul. OYAMA Oyama

The Lake Country Chamber of Commerce’ regular networking event from 5:30 to 7:30 pm. $5 for members, $15 for nonmembers. RSVP to manager@ lakecountrychamber.com.

BUSINESS After AFTER Business BUSINESS Business JUL. 29 - Mabel MABEL Lake LAKE Farm, FARM, Jul. ENDERBY Enderby

An Enderby & District Chamber of

Commerce networking event from 5:30 to 7 pm. The Mabel Lake Farm is also known as the Blueberry Farm at 33 Kingfisher Kingfisher Road. Free, but RSVP is required. 250-8386727.

register call 250-490-9300.

COMMERCIAL Building BUILDING Commercial

members, $15 for non-members.

Call 250-545-0771 for information.

AWARDS Nominations NOMINATIONS - Aug. AUG. Awards

CHAMBER Membership MEMBERSHIP Chamber

16 - Online ONLINE Process PROCESS

A Westbank Chamber breakfast event from 7 to 8:30 am. Speaker John Pankratz will talk about the HST and its effect on the economy. $17 for members, $21 for nonmembers. Register by calling 250-768-3378.

The Okanagan Mainline Real Estate Board Commercial Zone is looking for nominations for its second annual Commercial Building Awards, which will take place on October 21 at the Coast Capri Hotel in Kelowna. Nominations must be in by August 16 and buildings nominated must have been completed between January 1, 2009 and September 1, 2010.

Nomination forms are available online at www.omreb.com.

FOODSAFE Level LEVEL 1 - Aug. AUG. Foodsafe

BUSINESS After AFTER 5 - Aug. AUG. 17 Business

13 - Wine WINE Country COUNTRY Visitor VISITOR

- Voila VOILA Hair HAIR Studio STUDIO & Spa, SPA,

CENTRE, Penticton PENTICTON Centre,

VERNON Vernon

Instructor Valentine Young will teach the one day Foodsafe course beginning at 8:40 am. $50 To

The Greater Vernon Chamber of Commerce’ monthly networking event from 5 to 7 pm. $5 for

BREAKFAST Learning LEARNING Breakfast SESSION - Jul. JUL. 30 - 19 Session STEAKHOUSE & Lounge, LOUNGE, West WEST Steakhouse KELOWNA Kelowna

LUNCHEON - Sep. SEP. 8 - Holiday HOLIDAY Luncheon INN Express, EXPRESS, Salmon SALMON Arm ARM Inn

Lana Fitt, the economic development officer officer for Salmon Arm will speak at the Chamber’s luncheon. Doors open at 11:45 am. $15 for members; $25 nonmembers. RSVP to 250-832-6247 or send a note to info@sachamber. bc.ca.

LUNCHEON - Sep. SEP. 8 VWIB Luncheon SCHUBERT Centre, CENTRE, Vernon VERNON Schubert

Vernon Women in Business’ monthly luncheon, networking meeting. From 11:30 am to 1 pm. $14 for members, $20 for nonmembers. Contact information: info@vwib.com.

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Movers& KGH Foundation loses Nelems

As of the end of this year, the Executive Director of the Kelowna General Hospital Foundation, Sarah Nelems, has announced she will be moving on.

Nelems has been at the helm of the Foundation since 2003, and

during that time, has raised more than $26 million. On the reason for leaving Nelems says only, “I have chosen this time to make my transition to other opportunities as the Foundation has never been stronger financially and operationally.”

by not knowing when seat sales would be announced. In response, he says prices will be fixed up to 330 days prior to departure. Dunleavy also said peak travel times will see substantial price reductions.

Terry Fox Run Lives

Westjet revamps Fare Structure

Westjet announced last month a revision in the way it prices fares. Aside from a 25% drop in fares, the company announced that seat sales will now be announced well in advance.

Spokesman Hugh Dunleavy told reporters surveys showed customers were frustrated

Thirty years ago a young man from B.C. set out to find a cure for cancer. On July 10, 1980, Terry Fox said, “Even if I don’t finish, we need others to continue. It’s got to keep going without me.”

Unfortunately, Terry didn’t finish, and his dream of finding a cure has not yet been fulfilled.

We are asking you to help keep it going. The simplest way to get involved is to sign up as an individual, collect pledges, and come out on September 19. For more of an impact form a team with your friends, family, sports team, or coworkers. It’s a great way to have fun and get more people involved! Come to the Run wearing your company or team colours.

Not only does the Terry Fox Foundation focus specifically on cancer research, it also boasts one of the lowest administration percentages of any charity in Canada. Eighty-seven cents of every dollar raised goes directly to cancer research.

Run day registration for this noncompetitive run/walk/ride starts at 10 am with the Run starting at 11 am on September 19 at Mission Sportsfields in Kelowna. Preregistration, team sign-up and fundraising can be made on-line at www.terryfox.org or by calling 1-888-836-9786.

This year’s volunteer coordinators Shane & Lisa Worman with their two boys meeting Terry Fox’s sister Judi. In the background is the original van from Terry’s Marathon of Hope.

Summer Layoff for Flightcraft Employees

The world’s recession in air travel has finally caught up to Kelowna Flightcraft. The airplane maintenance firm says with it caught up on all contract work and nothing on the immediate 28 Okanagan Business Examiner / July 2010

&Shakers horizon, it is forced to layoff 43 employees, for at least 90 days.

Flightcraft employs 550 people in the Kelowna area, and almost a thousand across the entire country.

McGrath now a

Professional Director

Lorraine McGrath, well known business person, advisor and columnist to the Okanagan Business Examiner, has earned her ‘Professional Director Certification’.

The 10-month program covers off business governance, financial and risk management, ethics, corporate social responsibility, executive compensation, mergers and acquisitions. McGrath has nothing but praise for the course, saying it exceeded all of her expectations.

Prosper Media launches Native Business Magazine

Craig Brown, President of West Kelowna-based Prosper Media

in-Chief of the new publication.

Copies will go to every band across the country, hundreds of native business organizations and relevant government offices. Brown says, “This is a huge opportunity. As a group aboriginal businesses are just starting a huge run. We want to be there to record and celebrate their successes.” The first issue emphasizes British Columbia based businesses, but future issues of the bimonthly magazine will look at companies and entrepreneurs in other provinces and the far north.

Okanagan Golf named as Country’s Best

Reports in the Globe & Mail picked out the best golf courses in the country, and called British Columbia as “Canada’s top golf destination.”

Among the courses that merited special mention were The Club at Tower Ranch in Kelowna and The Ridge in Vernon. The Ridge is the partial rebuild and redesign, by Doug Carrick, of the old Peregrine course. Getting almost as much attention is the opening of the $1 billion Ponderosa Golf Club and development, which is projected to be ready for play by 2012.

Cahill takes over Talius

When Andreas Presch, the owner of Talius Manufacturing in Salmon Arm decided to retire after 30

has launched the first issue of his latest publication, Native Business Development Magazine. Unlike Prosper’s other regionally focused publications Brown is taking Native Business Development Magazine right across the country. As the title suggests the new publication will be celebrating aboriginal businesses and those companies that partner with them. The new publication is the brainchild of Noll Derriksan, an extremely successful real estate developer from the Westbank First Nation. Derriksan has agreed to act as the Editor-

years of running the company, his general manager, Kelly Cahill stepped up to the plate. Cahill is buying Presch out and taking over as the new CEO of Talius. Talius produces retractable solar screens and rollshutters, which are sold all

around North America. Cahill says he is excited by the challenges ahead and promises, “…to pursue new growth opportunities and continue to deliver outstanding value as we shape market demand for our products and raise, meet and exceed customer expectations.”

Studio & Farm Tour Debut

A new brochure highlights the location of 37 farms, artisans and wineries in Lake Country, Kelowna and West Kelowna. Tom Ignatzi, the consumer programs manager for Tourism Kelowna says, “[The brochure] fills a niche in that it allows smaller businesses to cross market with others in their vicinity and promotes increased tourism to those businesses, as well as new business opportunities.” More than 75,000 copies of the brochure have been printed up and distributed to various locations where tourists can find them, including the Kelowna Visitor Centre.

A Touch of Milan

The newly opened Via Milano Boutique is a fashion outlet on Kelowna’s Ellis Street in the downtown core. Owner Patrizia Ferraris, who will be importing clothing in from Italy on a continual basis, says the store will stock unique items and no client will find they are wearing the same items as others on the streets.

“Women should be able to purchase an item and know that they are not just one in a crowd.

We do not carry extras in the back and we do not reorder the same items.” In addition to importing items Ferraris is looking for local designers who can produce clothing that will complement the boutique’s Italian flair.

The TOTA TRU Team-up

TOTA, a.k.a. Thompson-Okanagan Tourism Association, looks

after 3,200 members, and those members have a lot of questions about what works and what doesn’t for tourism. While every business makes its best estimate of what those answers are, and plans accordingly, TOTA decided it would be well worth the investment to see if they could realize some hard answers, which means investing in research.

That’s where Thompson Rivers University (TRU) in Kamloops, and its School of Tourism, comes in. A Memorandum of Understanding will allow for collaboration on several research projects and other initiatives. TOTA’s CEO, Glenn Mandziuk is excited by the possibilities coming out of the research. He says, “It is partnerships like this that will ensure our collective success, by maximizing our respective resources.”

Dr. Rob Hood who is TRU’s chair of the Tourism Management program, welcomes the chance to connect academia to the real life issues faced by tourism companies. He believes, “This action will keep us closer to the issues regionally, and ensure our education and research is relevant to managing, developing, and sustaining the Thompson Okanagan region as a spectacular tourist destination and wonderful place to live.”

Dr. Harold Richins (Dean, TRU School of Tourism), Glenn Mandziuk, and Dr. Rob Hood met to sign the TOTA-TRU agreement to collaborate on tourism research in the Thompson Okanagan. (TOTA photo) Okanagan Business Examiner / July 2010 29

Tourism 2010 Survey 112 respondents

Tourism counts say our readers. According to 99% of them tourism is extremely important or somewhat important to the Okanagan economy.

After that there is a little less agreement. The two biggest tourist draws are still sun and beaches, followed by wine. Despite those attractions a majority of people feel that tourism could benefit from more investment into facilities and infrastructure. As for turnoffs

opinions were wide spread, but the single largest factor was the high cost of everything, perhaps why B.C. is known to stand for ‘Bring Cash’ to some visitors. There is also a majority who feel the HST will have a moderate, strong or terrible effect on tourism this year. Then again, having said all of that, a slim majority feel we will have more visitors in 2010 then we did in 2009.

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Tourism 2010 Survey Questions: 1. Do you expect more tourists will come to this region in 2010 than in 2009?

Yes 53.6% No 34.8% Uncertain 11.6% 2. Are there enough events or attractions in the Okanagan to keep tourism healthy?

Yes 32.4% Enough of certain kinds, not enough of others 55.9% No 11.7%

3. Is there important infrastructure missing that retards or prevents tourism growth? (e.g. more golf courses, better recreation facilities, more restaurants or hotels, etc.)

Yes 56.2% No 33.9% Uncertain 9.8% 4. If there isn’t enough attractions who should be investing money to create more?

Governments 4.7% Private business 31.1% Combination of both 64.2%

5. What’s are the biggest factors working against tourism in our region?

Transportation 9.1% High Canadian dollar 10.0% Poor service 10.0% High costs in general 37.3% Lack of marketing/advertising 10.9% Poor marketing/advertising 11.8% High taxes 10.9%

8. What geographic area provides the best potential for increased tourism revenues?

Within the Okanagan 28.2% The Lower Mainland 7.3% All of B.C. 25.4% Alberta 10.0% Ontario 1.8% All of Canada 13.6% The U.S. 2.7% International 10.9%

6. How much of an impact do you expect the HST will have on tourism in 2010?

None 12.7% A little 19.1% Moderate 29.1% Quite a bit 31.8% Terrible 7.3%

9. What kinds of tourism bring in the most visitors?

Culinary 2.7% Wine 28.8% Art & culture 3.6% Adventure 12.6% Sun & beaches 41.4% Shopping 0.0% Other 10.8%

7. What time of year should we focus on for creating more tourist visits?

Summer season 7.3% Shoulder seasons 40.9% Winter season 5.4% All of them 46.4%

10. How important is tourism to the overall Okanagan economy?

Extremely important 83.8% Somewhat important 15.3% Not very important 0.9% It’s really pretty minor 0.0%

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Wines of West Kelowna As a group, they are highly educated, earn above the national household median income and are willing to spend money and time to pursue their passion. They are wine tourists and the wineries of West Kelowna have adopted different strategies to attract them to their doors.

The most recent survey of wine tourists, the Okanagan Valley Wine Consumer Research Study, was released in 2008. The survey methodology compiled responses from 1,977 participants who had attended one of seven wineries throughout the Okanagan. Some key take away facts are that 52% of respondents had a household income over $100,000; 74% had at least a college or technical diploma and slightly over three quarters had been on wine tourism trips before.

For cross promotional tourism half of the wine travelers stayed at traditional fixed roof accommodations like hotels, and the average daily spend per party was $305.

High value wine tourists are coming to experience more than just wine; what they want is the whole winery experience.

The winery experience trend has been visible for some time.

32 Okanagan Business Examiner / July 2010

In 2003 Tony Stewart, proprietor of Quails’ Gate Estate Winery, began planning and implementing a multiyear $8 million expansion.

The planning took into account the infrastructure necessary to ramp up production, and handle more visitors. A large portion of the planning went into Old Vines Restaurant.

“When it comes to wine tourism we have seen that the experience at the winery will dictate what the customer will buy in the future,” explains Stewart. “We wanted to be able to showcase wine pairings. We wanted to achieve our goal of quality and go direct to the consumer.”

Old Vines Restaurant opened in 2005 and the new wine shop opened in 2007. This season Allison House was renovated to create a more casual atmosphere as an alternative for people with limited time or traveling with children.

Every step of the way Stewart has had to ‘look at it in terms of years.’

There is always a next step in courting the wine tourist says Stewart. “We’ve started to look at changes to tours, to be more in depth and increase their visit time to two or three hours.”

Increasing the duration of visits and creating

By Bobbi-Sue Menard

more options are key to wine tourism. The majority of travelers who visit a winery (72%) is traveling for leisure, while the remainder is visiting family.

Mount Boucherie Estate Winery has had their wine shop open year round since the day they opened in 2001. The family owned winery may have had a few winter days when it didn’t see visitors in the first year, says family member Jaspreet Gidda, but not many.

“People come to the Okanagan for the skiing and then when they need a break during their week, they tour wineries. There have been winter days when the roads were closed due to snow, yet customers have still come to the shop.”

Wine shop sales are up 10% over last year and Gidda estimates that about one in ten of the customers she sees each day during the summer season are new to the Okanagan, but many are repeat customers from a global variety of locations.

“People come to the Okanagan to do other things,” says Gidda. “Golf, see friends then they visit a winery.”

The vast majority of people insert a winery visit

while on vacation to the Okanagan as a destination. A winery tourist is highly likely to visit complementary venues including fine dining and the farmer’s market. These strong clear preferences should give hope to West Kelowna businesses that are well thought of by earlier visitors and locals. Travelers who come to the Okanagan to visit family and friends have been shown to rely heavily (37%) on personal recommendations.

Word of mouth is a significant part of the marketing strategy for the new Beaumont Family Estate Winery, which opened its doors to the public in 2008. A private organic grape grower since 1995, Beaumont is starting to attract repeat business from locals says family member Louise Lubchynski.

“People mention us to their guests and the word gets out, which is so important.”

Beaumont’s guest book shows visitors have come from as far away as Mongolia. “Many of our customers like the smallness of our winery. We always have time to

Okanagan

talk, and everything is right there, in front of them when they come in,” explains Lubchynski. “They can see and experience the process.”

howev develo

Having a wide variety of wineries in West Kelowna from big to small is important says Salina Petschulat-Curtis, Tourism Coordinator for Tourism Westside.

That variety is key when it comes to the creation of a wine tour with the region, and eventually the extended cross promotion with other businesses.

“We are building the infrastructure for a wine tour. We are looking at how do you build that base, and what is a long term solution,” explains Petschulat-Curtis. Tourism Westside works with a variety of stakeholders within the wine industry to make certain there is wide spread input and support for plans going forward.

Some elements of building capacity on the Westside are among the tasks the District of West Kelowna is taking on, including a sign audit, and determining how to make it simpler

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Quail’s Gate has used its wine to attract visitors, who now stay longer sampling wine and cuisine at the Old Vines Restaurant.

14

| www.businessexaminer.ca February 2010

Okanagan Business Examiner / July 2010 33

Pure Lignin process moving to proving grounds

Two examples made using Pure Lignin’s process: the colourful panels

By Bobbi-Sue Menard

on the aquarium stand (left) and the cabinet (above) demonstrate the colours and textures possible with the new product.

When you open up a five gallon bucket of lignin, the deep brown, oozing, gelatinous mass is less than appealing, and on closer inspection it feels like melted plasticine, and smells faintly like wet 2x4 boards. The brown residue wipes cleanly from your hand with a damp cloth.

Despite the absolute lack of visual appeal, the substance is remarkable: lignin can be processed for countless applications currently

performed by either petroleum or pulp products.

It is a polymer, which is a large molecule made up of repeating units, which in the case of lignin, comes from the cell walls of a variety of plants, but is best known as a component that strengthens wood.

Pure Lignin Environmental has spent the last decade working on creating a technology that radically shifts the lignin industry to a cleaner, more widely usable product. But it has only been in the past few years as market sentiment has shifted away from petroleum products that the company is starting to see interest pick up.

Pure Lignin creates lignin, from any biomass, in an environmentally friendly process that is cheaper and creates a more effective and ‘malleable’ lignin than traditional methods. The result is lignins suitable for a wide range of applications like packaging, paper, cardboard, pharmaceuticals or human consumption applications including food.

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www.bficanada.com 34 Okanagan Business Examiner / July 2010

Even ethanol production from the biomass is possible.

Pure Lignin uses a closed system process leave behind only organic, water-soluble wastes versus traditional processes that leave multiple toxins and solvents behind. The Pure Lignin system requires a maximum temperature of 86º C and the energy footprint is strikingly small.

The two byproducts of the system are sugars, which can be fermented into proteins for animal feed and left over plant fibers.

Kelly and Lani O’Flynn founded the company in Mexico 11 years ago, working with the inventor of the chemical process. The cheap Mexican currency enabled Pure Lignin to create their first plant in that country and get a solid start. In 2005 the O’Flynns moved Pure Lignin to West Kelowna, their home base. The decision was

made in part to keep investors happy and in part to cut down on growing travel demands.

The end goal for the O’Flynns is building and licensing the plants to companies who require their own sources of lignin and have access to biomass. “With this process you can make lignin from anything – the husks of corn, processed sugarcane, even pine beetle kill,” says Lani.

“What is vital is that you have a consistent source of biomass near your plant. For example, aspen makes a different colour of lignin than pine.”

Pure Lignin’s versatile process has distinct advantages. One is the company’s ability to make lignin and then ethanol from shelled cobs of corn, rather than the whole cob and seed.

Pure Lignin worked with the Canadian government’s Industrial Research Assistance Program (IRAP) while developing the second version of the lignin distillation plant. Angel investors proved to be very expensive, so the O’Flynns decided to build the company at a different speed. While the R&D has been ongoing, the most difficult part of the process has been waiting on the market to have a reason to make the switch from petroleum based products. “We are cleaner and more economical, but we needed someone who has the reason to take the risk and build the first plant,” says Lani.

Within the next six months the O’Flynns are hoping to be releasing announcements of licensed plants in multiple U.S. states, Brazil and at some mega-corporations. “There are so many scenarios of how companies can use lignin for their specific purposes that we don’t want to be owner operators,” explains Lani. “Building and licensing the plant makes more sense for us.

Our customers will have a need for lignin plus access to biomass.”

GENERATIONS

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Baby Boomers are competitive, individualistic, question authority, and “Live to Work”. Known as the “Me Generation”, they want to build a stellar career.

(Keyword: “Optimistic”) Generation X are electric, resourceful, self-reliant, distrustful of institutions, highly adaptive to change and technology. They believe that the world is not as safe as it once. Are children of divorce, latch key children, impacted by downsizing and right sizing and wait a long time to start families (career first) and now seek work/life balance. (Keyword: “Skeptic”)

B U S I N E S S

F U R N I S H I N G S

Millenials have been over schedualed from birth.They were born into the information age; expect multi tasking, multimedia and have high expectations of self, and organization. Team oriented, need to feel valued and are known as the “the collaboration generation”. (Keyword: “Realistic”) The attraction and retention of workers is a key issue facing employers today. There is a need to create working environments that will appeal to the employees you want to attract and retain. The answer is not in one size fits all strategies, it is in creating a range of solutions to meet all generations needs, as well as address how everyone’s workplace needs change throughout the day/week.

The key issues being addressed are: • Healthy environments (daylight/views, air, temperature) • Sustainable spaces/energy efficient • “Future proofed” – able to grow & shrink • Mobile/changeable, sometimes by employees

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Traditionalists value hardwork, dedication, sacrifice and are known as the “Work to Live” generation. They focus on building a better future and are authoritarian, expect pyramid shaped organization. (Keyword: “Loyal”)

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After figuring out your generation, let’s take a closer look at the personality traits and behaviour of each generation.

A multigenerational workforce requires companies to meet the varying needs of each type of wroker. Companies will have to develop multiple strategies not a single dramatic one. Each companies approach will require a unique approach tailored to suit their needs. The companies who do it best will get the best people.

SA r staff yo u sa on V w yo E ou ur ra pu % d rc ha 1 0 and

A more interesting way to determine the generation you belong to is to ask yourself, ‘Who was my favorite musician growing up? Glen Miller, The Beatles, Madonna, or Usher? What about your favorite toy? Marbles, a hula hoop, Barbie and G.I. Joe, or maybe it was a Gameboy or Playstation?

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Te ll o

First and foremost we need to ask: Who are the generations? There are four: 1) the Traditionalists; 2) the Baby Boomers; 3) Generation X, and; 4) Millennials. The next question we need to ask is: What generation do I belong to? To answer this we have to take a look at the generational divide.

Traditionalists were born before 1946. Baby Boomers were born between “1946-1964”. Generation Xers were born between “1965-1980” and the Millennials were born between “1981-2002”.

Do’s and Don’t’s of Hiring Smart Hiring a new employee can be an exciting opportunity to bring new ideas and a fresh perspective into your business, but you want to make sure you find a good match between what your company has to offer and what the prospective employee is looking for. Here are four human resource (HR) practices that can help.

Employment Advertising Understand the law before you publish your job ad. The B.C. Human Rights Code Section 11 prohibits discrimination in employment advertisement in areas such as race, religion, marital status, or age unless they are required to do the job. For example, you cannot say, “Looking for a person under 30 years old for heavy lifting position.” The heavy lifting might be a needed to do the job, but you can’t discriminate against someone’s age!

Go to http://www.ag.gov.bc.ca/human-rightsprotection for any information you may require.

Application Forms If you use application forms instead of accepting resumes, be very careful to only ask for the

necessary information. You may request a candidate’s address, phone number and employment history, but stay away from any of the discriminatory areas as listed in Section 11 of the Human Rights Code.

You just need to know how to ask for the information you need. For instance, instead of asking ‘Do you have daycare arrangements for your children?’ you can ask, ‘Are you available to work days, nights, weekends or shifts?’

Then have them check off the boxes corresponding to the times they are available to work. Examples of application forms can be found on the Internet, but make sure to only gather the information required for the job the person will be asked to do.

Interviewing Interviewing takes some practice and many people get caught in the “people like to hire people like themselves” syndrome. Just because someone has the same skills that you do, doesn’t mean they are right for the job.

Generally, small business owners need to hire people with skill sets that compliment theirs.

For example, if you love sales and marketing,

but are weak in areas of administration and bookkeeping, hire someone who do those tasks.

Another way to increase your chances of finding the right person is to hire for “fit”. You want someone who shares your values, beliefs and goals for the business and someone who fits in well with you, your existing employees, and customers.

Lisa McIntosh of Urban Harvest Organic Delivery in Kelowna says, “We have a strong record of retention given the part-time nature of our business and I think it has to do with the soft benefits of working at Urban Harvest – particularly the alignment with personal values. We always find out what working at Urban Harvest means to a new employee – if they are personally connected to the social and environmental values inherent in what we do, they are much more likely to stay with us and enjoy their work.”

Probe to find their personality type. What kind of attitude does the person have and what is their customer service philosophy? Do they have good conflict resolution skills, along with technical skills such as organization, planning, computer proficiency and leadership?

This information provides a balance on both soft and hard skills required for the job and the culture of your organization. You can find lots of great interview questions online.

Reference Checking

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Privacy law requires that candidates give permission to check their references, so you always need to let them know that you intend to contact their former employers. You are also obligated to let them know what the information will be used for and to whom it will be disclosed.

Again, it is very important to only ask questions that are applicable to the job and the candidate’s skills. Ask questions regarding the quality of their work, their ability to get along with others in the workplace and their ability to learn new tasks. Most importantly, ask the referee if he or she would hire this person again. That one simple question can cover a lot of ground.

These four steps are critical to ensure you have followed obligatory employment practices during the hiring stage and give prospective employees the assurance that you’re an employer who cares about their rights.

Women’s Enterprise Centre is the go-to place for BC women business owners for business loans, skills training, business advisory services, resources, publications and referrals. For more information visit www.womensenterprise.ca.

36 Okanagan Business Examiner / July 2010

The Virtues of Virtualization What is Virtualization?

Today’s server and desktop computer hardware was designed to run a single operating system and a single application, leaving most machines vastly underutilized. Virtualization lets you run multiple virtual machines on a single physical machine, with each virtual machine sharing the resources of that one physical computer across multiple environments. Different virtual machines can run different operating systems and multiple applications on the same physical computer. While others such as Virtuozzo Cisco and Microsoft are leaping aboard the virtualization bandwagon now, VMware is the market leader in virtualization.

How does Virtualization Work?

Use software such as VMware vSphere and VMware ESXi (a free download) to transform or “virtualize” the hardware resources of your servers— including the CPU, RAM, hard disk and network controller—to create a fully functional virtual machine that runs its own operating system and applications just like a “real” computer.

Multiple operating systems run concurrently on a single physical computer and share hardware resources with each other. Each virtual machine contains a complete system, eliminating potential conflicts.

VMware virtualization works by inserting a thin layer of software directly on the computer hardware or on a host operating system. This contains a virtual machine monitor or “hypervisor” that allocates hardware resources dynamically and transparently.

By encapsulating an entire machine, including CPU, memory, operating system, and network devices, a virtual machine is

completely compatible with all standard operating systems, applications, and device drivers.

You can safely run several operating systems and applications at the same time on a single computer, with each having access to the resources it needs when it needs them.

Benefits of Virtualization Thousands of organizations— including all the Fortune 100—use virtualization solutions. More recently, virtualizing a small office (with one to five servers) has become much more prevalent due to the need to maximize server and data availability. Also, the cost of the underlying virtualization software has been dramatically decreased and made it much more affordable for many SMB’s.

personnel requirements are reduced as well.

High accessibility of applications and data • Virtualization so transforms the applications and data in the virtual environment that high accessibility without any time delays and disruption results.

This makes it possible to fulfill the needs of both customers and staff in a secure environment.

Increase Protection Across your Infrastructure VMware High-Availability can be configured with a single click to provide automated failover protection across multiple servers.

This can be completed without the complex setup and configuration (such as “Clustering”) that has been required in the past.

• Provide uniform protection of all of your applications from server and operating system failures, regardless of the server hardware or operating system used by the virtual machine.

• Establish a consistent first line of defence for your entire IT infrastructure.

• Protect applications with no other failover options and make high availability possible for software applications that might otherwise be left unprotected.

Lance Swetlishoff is the Branch Manager, Storage & DR Specialist at the Voda Group, which is located at 2263 Leckie Road in Kelowna. You can reach Lance by e-mail at lance. swetlishoff@vodagroup.com.

Reduction in cost of infrastructure • Virtualization enables administrators to reduce the number of servers, which not only downsizes the infrastructure and maintenance costs, but also reduces power consumption.

• Pool common infrastructure resources and break the legacy “one application to one server” model with server consolidation.

Enhances flexible functionality of management • Virtualization requires fewer servers to perform the routine, repetitive, time consuming tasks such as configuration, upgrades, monitoring and system scheduling.

• Fewer servers and related IT hardware means reduced real estate and reduced cooling requirements.

Better management tools let you improve your server to administration ratio so

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250-768-6618 Call to inquire about classes held in studio Okanagan Business Examiner / July 2010 37

ThisDemocracy Shut up and get back to work!

Hey, what’re you going to do with your 43% pay hike this year? What?

You didn’t get one? Oh, I see...you work for the private sector. Poor schmuck. Silly worker...you actually worked hard this year, didn’t you?

I’ll bet you provided your employer with measurable results, met your deadlines and maybe even earned a performance bonus. If you’re in sales your hard work probably paid off in a well-deserved commission cheque. Meanwhile, people over in the public sector just did what they always do − little to

squat − and still managed to get massive raises. Why’s that? Well, you see, you stupid hoser, bosses in the public sector claim that if they don’t give their employees massive raises they’ll lose them to the private sector. You see, silly taxpayer, there just aren’t that many talented people out there willing to take public-sector jobs that pay measly six-digit salaries and provide phenomenal benefits with fully indexed pensions which, assuming an employee lives 20 years after retirement, can easily

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be worth three million dollars.

Yeah...they just can’t find anyone willing to take these jobs. Anyone? … Anyone? No, not you, you silly private-sector worker; shut up and get back to work! Oh I know, it seems a tiny bit counterintuitive, doesn’t it? I mean, it’s not as though these public-sector employees produce anything.

They’re not under the gun to get things done in a timely manner or to hit performance targets. Heck, sometimes it’s even difficult to tell exactly what some of them do from 9 to 5, five days a week. Oh! Sorry... Make that 8:30 to 4:00, four days a week with five weeks’ vacation. Don’t let yourself get all bent out of shape just because you can’t comprehend what it is these people actually do when they’re “at work.” You just have to have faith in your political masters that if someone like the provincial premier’s top aid needs a 43% pay hike then he or she had darn-well better get one because it’s so hard to find good people these days for just $235,540 a year; $348,600 is a tiny but better, but only just barely so. What? You say you’d take the job for half that? Let me see. How can I explain this to you without hurting your feelings? You see, silly citizen, you’re hopelessly under-qualified to even lick stamps in an office full of high-ranking government staff who earn six digits a year and have degrees in things none of the rest of us poor saps even understand. Okay?

Besides, according to our political masters, it’s people like you out there in the private sector who are the problem! Yeah. Apparently there are droves of people out

38 Okanagan Business Examiner / July 2010

there in the private sector who earn MASSIVE salaries and, as mentioned above, our political masters say they have to raise their employees’ salaries just to compete! Clearly the problem here is that people like you have to quit performing and producing results, and quit taking home those big fat paycheques! C’mon you greedy, overpaid, private-sector boondoggler! Lower the bar and then maybe the government will finally be able to lower publicsector salaries and benefits and, who knows – they might even be able to lower our taxes some day. Ha! Nah! I’m just kidding.

It won’t make a damned bit of difference.

Okay seriously, if you mention “the pursuit of happiness” in polite Canadian company you’ll be branded a pro-American right-winger. The old definition of “happiness” was synonymous with “happenstance.” What those evil right-wing Americans enshrined in their constitution was not the right to be happy, but the right to have the chance to succeed, but unless you’re in the public sector these days, you have no such a right.

Your only “right” is to shut up, get back to work, and pay your taxes so someone else can retire in his fifties and live a life of luxury.

Happiness indeed.

It’s time to personalize all government pensions. Why should I pay for someone else’s retirement?

Mischa Popoff is a freelance political writer with a degree in history. He can be heard on Kelowna’s AM 1150 with host Phil Johnson on Friday mornings between 9 and 10.

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