Tag: alberta

Edmonton is ground zero in the PC campaign of fear

What an interesting week in the Alberta Election, especially here in Edmonton. It started with Mayor Don Iveson’s confident State of the City address, in which he declared that “Edmonton is too important to Alberta’s future to be ignored.” He said he’s confident that Edmontonians “will not stand for any provincial government ever forgetting about Edmonton again.” The mayor contrasted a strong, vibrant Edmonton with an uncertain, shaky Alberta, and said that Edmonton could play a significant role in a provincial turnaround. Edmonton is not just the capital.

With every passing day the NDP have looked stronger and stronger. The polls, whether you trust them or not, have consistently had the NDP either in the lead or close to it, with today’s predicting a minimum victory of 25 seats. Everywhere you look there are signs of the “orange crush” sweeping across the province, but especially here in Edmonton where NDP support is strongest. The prospect of an NDP win has become so realistic in fact, that the PCs have had to take the unusual position of fighting back. And it’s here in Edmonton that they have focused their efforts.

Last week Edmonton-Rutherford PC candidate Chris Labossiere wrote a widely-criticized blog post that said the NDP “have not demonstrated any real passion or partnership with Edmonton as a dynamic and changing global city.” He wrote, “I do not trust that they share or appreciate Edmonton’s story, our energy or our ambition.”

Edmonton-Spruce Grove MP Rona Ambrose said today that an NDP government here in Alberta would be a “risky experiment.” She said that although she understands the anger being directed at the PCs, Albertans “need to think twice about electing an NDP government.”

edmonton business leaders
Photo by Dave Cournoyer

And in a press conference late this morning, five Edmonton businessmen called the NDP’s policies “amateur” and urged Albertans to make sure they’re “thinking straight” when they go to vote on Tuesday (you can read their opinion letter here). The Journal reports that together, the five have given nearly $95,000 to the PCs since 2010. There have been incredible things said every day during this election, but a couple of comments today were just on another level. Here’s what Tim Melton, executive chairman of Melcor Developments said:

“I don’t understand the unhappiness and disenchantment that appears to be out there. We don’t need amateurs running this province through these difficult times … we’ve got to stay with the government that has got us to where we are today.”

Is it really so hard to understand why Albertans are unhappy with a government that has faced scandal after scandal? With a government that has failed, again and again, to get us off the resource revenue roller coaster?

As if that wasn’t enough, NPO Zero CEO Ashif Mawji had this to say at the same news conference:

“If there’s no bottom line, then there’s no money that goes to charities. We won’t make donations to charities,” Mawji said, using the Stollery Children’s Hospital and the University of Alberta as examples of where the losses will be felt.

There’s no question that leaders like Doug Goss have done great things for Edmonton, and I’m sure they will continue to, but to threaten the charities that support Albertans when the government won’t? Disgusting.

Rachel Notley
Photo by Dave Cournoyer

Here’s what NDP leader Rachel Notley said in response today:

“Frankly, if I were them, I’d be more focused on talking with Albertans about what it is they can do to make the lives of regular families better. They’ve chosen to fearmonger about the NDP instead. I guess we’ll see … which approach is more appealing and more convincing to Alberta voters.”

Indeed we will, in just a few days.

“Changing our government is not something Albertans should be afraid of,” is what Dave wrote today. “It is something we should probably do on a regular basis.”

What does Alberta’s Budget 2015 mean for Edmonton?

Today was budget day in Alberta. Budget 2015 is being called “a bad news budget” but it could have been much worse. There are tax and user fee increases, cuts to spending (including the first cut to health spending in 20 years), and a new “Health Care Contribution Levy”, and still Alberta’s deficit will grow, to a record $5 billion this year. On the other hand, infrastructure spending seems to be mostly intact, programs for the most vulnerable have not been cut, Alberta retains its tax advantage, and the Province is taking some baby steps toward getting us off the energy price roller coaster. Here is Dave’s take.

Budget 2015

There’s a lot of truth to the “government town” label that people often apply to Edmonton, so any Provincial cuts are going to have an impact. According to the City’s chief economist John Rose, 22% of Edmonton’s employment is related to health care, education, or public administration.

Still, Rose said in recent weeks that Edmonton as a whole would weather the storm better than others in Alberta. From his Labour Force Report issued on March 13:

“Although the impact of lower oil prices is evident in some sectors, the diversity and depth of
Edmonton’s economy has insured that employment continues to grow in Edmonton and that the
City remains a very attractive location for those seeking new opportunities.”

So what does Budget 2015 mean for Edmontonians and for Edmonton?

Highlights

Here are some of the key takeaways from the budget that I think are relevant to Edmonton:

  • For 2015-2016, Alberta Health Services (AHS) faces a decrease of $286 million or 2.1% and will need to cut nearly 1,700 positions
  • The budget includes $926 million in capital spending for health-related “capacity expansion projects” in Calgary and Edmonton
  • There is $50 million over at least two years to renovate emergency rooms in Calgary and Edmonton (specifically the Misericordia, Grey Nuns, and Royal Alexandra hospitals)
  • The budget promises than 300 new restorative care beds in Calgary and Edmonton
  • Post-secondary institutions face $114 million in cuts
  • Campus Alberta institutions (which includes the University of Alberta) are facing a 1.4% operating grant reduction in 2015-2016 and a 2.7% reduction in 2016-2017
  • School boards will receive no money for more students and must cut 3% from non-instructional costs
  • The Province says that “most” school projects announced in 2013 and early 2014 will open in 2016-2017
  • Family and Community Support Services, which helps to fund more than 60 agencies and 80 programs in Edmonton, will be maintained at $76 million.
  • Funding for police remains the same
  • Capital spending of $1.1 billion for the next 5 years includes $124 million for NAIT expansion and $120 million for NorQuest downtown
  • GreenTRIP funding remains intact, which means the first portion of the Valley Line LRT will continue to move ahead
  • MSI funding will remain stable, even if it is more of a loan than a grant
  • The smart fare proposal from Edmonton, St. Albert, and Strathcona County is still “under consideration”
  • The budget contains no funding for the proposed Galleria project

Discussion

Certainly the health care sector is going to take a hit and that will have some impact on Edmonton. The Province maintains that we can get the same quality of service for less, while critics disagree and suggest the effect of this budget won’t be felt only by those at AHS who lose their jobs but also by Edmontonians in need of care. “The time has come for us to start looking at how we can do things in a more efficient manner,” said Health Minister Stephen Mandel. “I don’t think Albertans should have to pay 20 and 30 per cent more for things.”

In addition to the cuts in health-related spending, the budget also introduces the Health Care Contribution Levy, which will apply to individuals with taxable income greater than $50,000 per year. There’s a sliding scale from $200 to $1000 depending on your income bracket. This tax takes effect on July 1, 2015, and applies to roughly 1.1 million Albertans.

The health-related surprise though was money for hospitals, especially given recent suggestions that Edmonton facilities need more than $225 million in maintenance and repairs. The previously announced funding for emergency room upgrades will help in that regard.

It’s not clear how many cuts the education sector will face, but clearly the 3% reduction is going to have an impact. A lack of new funds to deal with growth will likely also mean larger class sizes. At the post-secondary level the cuts are much smaller than many expected.

While there is no provincial sales tax, there are increases to personal income taxes. If you make more than $100,000 per year your tax rate will increase from 10% to 11.5% (phased in over three years) and if you earn more than $250,000 your tax rate will rise to 12% when fully implemented (Edmonton’s media family income is about $100,000). We know that nearly 10,000 employees of AHS earn at least $100,000 a year, which means if they aren’t among the job cuts, they will face increased personal income tax. Though it likely won’t be those who make the most that face the cuts. According to the Herald, Mandel’s own department will spend 18% more than last year.

For most Edmontonians, increased taxes, fines, and user fees will be felt immediately. Gas taxes are increasing by 4 cents to 13 cents per litre. Cigarette taxes are increasing by $5 to $45 for a carton of 200. A bottle of wine or spirits will cost 16 cents more, and a 12-pack of beer will cost 90 cents more. Fines for speeding and other traffic offences are increasing by an average of 35%. Marriage licenses are increasing by $10 as are birth and death certificates.

There is some good news for the most vulnerable Edmontonians. There will be no reductions to child care subsidies for low-income families, nor are there any reductions to the Alberta Seniors Benefit income support. The budget will also accommodate growth for AISH and Persons with Development Disabilities. Starting July 1, 2016 there will also be a new Alberta Working Family Supplement refundable tax credit on earnings up to $41,220. Funding for FCSS, which supports many Edmonton agencies, will be maintained.

On infrastructure there’s mostly good news. Or at least a sigh of relief that important projects will continue moving forward, like the Valley Line LRT which the Province previously committed to.

Responses to Budget 2015

From Mayor Don Iveson:

“The city of Edmonton and Alberta municipalities faired reasonably well on this budget, all things considered – certainly compared to what we all heard and were concerned might be coming,” Iveson said.

“The numbers are fairly small and speaking to our chief economist just now, it may have a small effect on Edmonton’s growth, but we’re talking a decimal to Edmonton’s GDP, not a side-swipe,” Iveson said.

“We can work with the dollars provided,” said Iveson.

From Doug Goss, char of the University of Alberta’s board of governors:

“The message is clear — we all have to find new ways of doing business, we have to be a little more creative,” said Goss.

From Indira Samarasekera, President of the University of Alberta:

“This is a very good outcome,” said Samarasekera, “much better than many were expecting. The provincial government is facing financial pressures, but they’ve demonstrated they understand the importance of post-secondary to Alberta’s future.”

President Samarasekera will address the campus community at a forum on March 31.

From Michael Janz, Edmonton Public School Board chair:

“We’re going to see more students arriving at the school doorsteps with no new money provided to educate them,” he said. “I don’t think this is a good news budget for Edmonton public schools.”

From Marilyn Bergstra, vice-chair of Edmonton Catholic Schools:

“The budget cuts will make it increasingly difficult to support all of our students, particularly our most vulnerable, as well as the new students that are coming to our district,” she said.

From Helen Rice, President of the Alberta Urban Municipalities Association (AUMA):

“Sufficient funding for infrastructure is vital to address the deficit that has continued to grow across the province, and to provide for new infrastructure requirements to meet our obligations to citizens,” said Rice.

“Given the current economic climate, now is the time to secure funding to meet infrastructure needs when prices are falling and the availability of resources to work on projects is increasing,” said Rice.

The reaction from the business community appears to be more mixed.

Budget 2015

Budget 2015 Details

Here are all the budget-related news releases:

Here is the budget presentation from Robin Campbell, Minister of Finance:

You can also download the budget speech in PDF here. You can access the full list of budget documents here.

Roundup: Pre-Election Politics in Alberta

As you know I stay fairly focused on municipal issues, especially as they relate to Edmonton. But with the provincial budget set to be released on Thursday, a televised address from the Premier tonight, the review of the Municipal Government Act, and expectations of an imminent election, I’ve been thinking more about provincial politics lately. Here’s a brief summary and some thoughts on what I’ve been paying attention to.

Premier Prentice’s TV Address

Tonight, Premier Jim Prentice delivered a 16 minute address called Alberta Looks Ahead on CTV (which apparently cost between $80K and $100K). “We are a turning point in our province,” he said at the beginning. He described the need for “thoughtful decisions for the future” and said Albertans have told him they want balance.

The highlights as I understood them:

  • A 10 year plan will be introduced with the budget, with three pillars: strong fiscal foundation, building a lasting legacy, securing Alberta’s future
  • There will be no sales tax and Alberta will retain “the most competitive tax system in Canada”
  • The goal is to be back to a balanced budget by 2017
  • The government will hold the line on expenditures, which essentially means cuts in a growing province
  • Albertans will be asked “to contribute to the costs of the health system”, slowly at first but growing over time
  • By 2018-2019, 75% of energy revenue will go to program spending
  • By 2019-2020, 50% of energy revenue will go to program spending, with 25% going to emergency funds and paying down the debt and 25% going to the Heritage Savings Trust Fund

The Premier talked a lot about how he is determined to restore our commitment to the Heritage Fund, and said “paying off our debts is something we simply must do.” If I remember correctly, he mentioned only two former Premiers by name: Peter Lougheed and Ralph Klein.

Perhaps this is a more accurate, succinct recap courtesy of Marty Chan:

There were no “look in the mirror” comments tonight, but I did love the soundbite toward the end when Premier Prentice spoke about “a spirit of openness across every segment of Alberta”. He offered some examples, including “from bloggers to loggers,” which led to this gem:

Dave is probably the most well-known political blogger in the province. You can see his latest nomination update post here.

The Premier is also planning to host a series of Telephone Town Halls along with various Ministers, on March 25 and March 30. You can dial in toll-free at 1-855-269-4484. Tonight I saw many complaints about robocalls, so it’ll be interesting to see how those town halls are received.

Budget 2015 Consultations

The Province conducted an online survey for Budget 2015 and in total received 40,513 responses. The survey was open from February 5-28. Some of the key findings include:

  • 9 out of 10 respondents feel low oil prices will greatly or somewhat affect the Alberta government’s ability to budget
  • when asked what is the right balance to respond to the drop in revenue, Albertans were split almost evenly 3 ways between reducing spending, increasing revenue and running a deficit budget
  • 9 out of 10 respondents feel government needs to take action either immediately or within this year

I’m not sure how representative the results are, but it’s useful data to consider nonetheless. Budget 2015 will be released on Thursday, March 26.

Perhaps most interesting to me is that the survey results were made available through the Open Data Portal! This enables you to ask the hard questions, like: how long did the average person take to fill out the survey? The average length of time was 7 minutes, with the median at 11 minutes. Ignoring the records that were greater than 90 minutes (people leave tabs open all the time) here’s what the data looks like in a chart:

budget survey time taken

You can download all the data as a 13 MB Excel file. Give it a go and have some fun!

I hope this is a sign of things to come in terms of making information available through the open data catalogue in a timely fashion.

Municipal Government Act Amendments

Last week, the Government of Alberta tabled amendments to the Municipal Government Act. You can get a brief overview of what’s changing here. From the news release:

“The last major consolidation of the MGA took place in 1995, after nearly 10 years of review. The current MGA review began in 2012 and has involved input from more than 1,200 written submissions, and more than 1,500 people at 77 community meetings.”

A few of the proposed changes I found interesting:

  • Municipalities would be required to adopt public participation policies that outline their approaches for engaging with stakeholders. Edmonton already has a policy for this and is actively review and improving its approach to public engagement.
  • Existing petition requirements make it difficult to successfully petition a municipality, so one proposed changed would allow municipalities to change the rules for petitions.
  • Currently municipalities need to use snail mail or newspapers to notify the public about things like bylaws and public hearings, but this is 2015! The proposed change would make it possible for municipalities to announce notifications online or using other methods as they see fit.
  • Another change would require municipalities to adopt three-year operating plans and five-year capital plans. Edmonton is already moving in this direction.
  • Municipalities are currently required to have statutory plans, but there is no explicit hierarchy specified, they simply need to be consistent with one another. The proposed change is to identify the hierarchy and relationship of those plans. In Edmonton, this could impact The Way Ahead.
  • Another change would allow for the creation of civic charters, which the Province, Edmonton, and Calgary have already been pursuing.

There are more amendments still to come. Additional review and consultation will take place this spring with the goal of proclaiming the fully revised MGA and regulatory updates by the end of 2016.

MSI Funding (March 2015)

Another pre-election, pre-budget announcement was about the allocation of $400 million in MSI funding. Edmonton is slated to receive just over $80 million out of that, which is less than half of what the City was expecting for 2015.

“Until we get the provincial budget, I won’t know how much additional dollars are available and we won’t be able to make any decisions about which projects go ahead until we see the provincial budget,” said Mayor Don Iveson.

For its part, the Liberals have called the MSI announcement “an elaborate ruse” due to some creative accounting with the Basic Municipal Transportation Grant.

Wildrose Leadership Race

Also tonight, we held our third #abvote Hangout at http://abvote.ca. In addition to Dave, Ryan, and myself, we had the three Wildrose leadership candidates join us: Drew Barnes (MLA for Cypress-Medicine Hat), Derek Fildebrandt sitting in for Brian Jean (Former MP for Fort McMurray - Athabasca) and Linda Osinchuk (Former Mayor for Strathcona County). We started with a discussion about the Premier’s address, and then moved on to some other questions for the candidates.

You can watch the archived video on YouTube or here:

I asked a question about how they’d support municipalities, and of course the Wildrose 10/10 plan came up, which would allocate 10% of tax revenues and 10% of surpluses to municipalities.

They’re rushing this race, but with speculation the writ will drop on March 30, they don’t have much of a choice. You can learn more about how voting works for the leadership race here. The Wildrose party will announce its next leader on March 28 in Calgary.

Other

I have already mentioned these things in previous roundups but it’s worth linking to them again:

That’s it for now! Stay tuned for our next Hangout and follow all the latest stuff online using #ableg and #abvote. Now I guess I had better go update the Election Results dashboard…

Recap: Edmonton’s Economic Impact Luncheon 2015

“Never waste a good crisis,” EEDC President & CEO Brad Ferguson told the hundreds of Edmonton business leaders gathered today at the Shaw Conference Centre for EEDC’s annual Impact luncheon. He channeled local business pioneer Frank Spinelli and said “it’s what you do in the good times that determines how well you perform in the bad times.” He argued that Edmonton and EEDC in particular have done a lot of great things over the last two years when times were good and that means the year ahead won’t be as bad as many anticipate.

A short while later, Premier Jim Prentice took to the stage and disagreed. “It is what we are going to do in the bad times that will determine how successful we’re going to be in the good times,” he said. The Premier talked about the need to change both the income and expense side of the equation, and cautioned that all Albertans will have a role to play in making it through a difficult time.

So which is it? Well, it’s probably a little bit of both. The feeling I was left with after today’s luncheon is that Edmonton has been doing the right things and will weather the coming storm better than the province as a whole.

impact 2015

Mayor Don Iveson brought greetings to start the event and offered his two cents on the economic situation, saying “there’s no reason to panic.” He said the Edmonton economy is becoming more resilient as it becomes more diverse and that “our city’s entrepreneurial spirit has never been stronger.”

The mayor also took the opportunity to call upon the Province to keep Edmonton in mind as it tries to address a shortfall in revenue. “City building, I believe, is Province building,” he said. Later, Premier Jim Prentice referred to the comment and said, “I couldn’t agree more with that.”

Before the keynote began, EEDC showed their Build It Here video, highlighting the fact that it can be customized for businesses to use in their own materials.

Keynote

Brad Ferguson delivered the keynote address today, which you can read online. He began by talking about 2014, calling it “a great year”. There was a lot of euphoria in 2013 and throughout most of last year, so EEDC asked itself a key question:

“What should an economic development authority do when it is not in the job creation business? What should we do in the good times that will help us when the economic cycle turns?”

And with that in mind, the organization focused on ten themes throughout 2014 “that would strengthen our economy over the long term.”

  1. Direct Flights
  2. External Marketing
  3. Downtown Density
  4. Entrepreneurial Ecosystem
  5. Foreign Investment
  6. Event Attraction
  7. Regional Collaboration
  8. Unified Voice
  9. National Positioning
  10. Building the team at EEDC

Brad talked about the way EIA and EEDC are working together so effectively now, which resulted in the KLM flight. He discussed the new approach to tourism and marketing. He mentioned the big announcements that were made recently and said “more than anything else, 2014 will be remembered as the year of downtown.” He talked about the importance of event attraction, saying that big events “create a rhythm and a pulse and an energy that builds excitement and confidence.” He praised the mayor’s leadership in the region and on speaking with a unified voice. And he referenced the many newspaper and magazine articles that have been popping up across the country talking about Edmonton’s transformation.

Brad had a lot of praise for his colleagues. “I am extremely proud of the team we have built at EEDC.” He said the organization has reduced the portion of its operating budget that comes from the City, from 43% when Brad took over to 38% today. Brad said they’re on track to reduce that even further to 33% by 2017.

He then talked about oil prices and what they mean for the economy. If you want to understand the roller coaster, read this passage:

“If we look back over the last 7 years: In 2006-2007 this place was on fire, the world economy was expanding, oil prices were high, and everything was rocking. Until in March 2007 Bear Stearns collapsed and in September of that same year Lehman Brothers collapsed, the biggest financial collapse in recent history. The price of oil went from $140 to $40 (a $100 dollar drop) in six months than then settling around $58 which created a population boom scenario in Alberta and in Edmonton starting in 2010, 2011 and 2012 when the WCS (Western Crude Select) pricing traded at a significant discount, now known as the Bitumen Bubble, followed by 2013-2014 where the price rose again to $95-$100 range while the world started to rebound, and then half way through 2014 the price started to dramatically drop as the global economy started to pick up, which has us moving from a budget crunch which can be addressed into a competitiveness crunch that is more structural and tends to last for quite some time.”

He did not mince words, saying “our revenue model at the provincial level continues to fail us.” Brad said he sympathized with the Premier though, as he inherited this problem. Still, he cautioned that unless we make changes now, we’ll be experiencing the same revenue volatility in the 2020s, 2030s, and 2040s. “It’s time to be humble being from Alberta,” Brad said. “And it is time to have a serious conversation about our financial picture and to make incremental changes to our tax structure.”

Brad predicted that in Edmonton, the year ahead will be better than most people are predicting. He said we’ll outperform Calgary, and while the Province’s budget will capture the headlines, “there are many positives in front of us that cannot be forgotten.”

He urged attendees to do more than hope for a return to $100 oil prices. “We’re planning for a very competitive world and we need to operate with more intention than ever before.”

Q&A with Premier Prentice

After the keynote, Premier Jim Prentice joined Brad on stage for a fireside chat, sans fire. “This is a world class city, with world class leadership,” he said. He disagreed with Brad about the good times/bad times point-of-view, then said that “this year will be about leadership and confidence.” Premier Prentice predicted that 2015 will be a challenging year, but also a transformational one.

The Conference Board of Canada has predicted that Alberta will experience a recession in 2015, but Premier Prentice disagrees. “We are tough, we are resilient, we are entrepreneurial, we have the capacity to get through this, and we will get through this.”

At times the Premier seemed to be doing exactly what Brad cautioned against – hoping for a return to $100 oil. “The best solution for low oil prices is low oil prices, they will come back,” he said at one point. At other times, he was very clear that action was necessary. “People have had enough of the roller coaster,” he said. He has struck a new budget committee and confirmed that “everything is on the table.”

The Premier was also very honest about the challenges faced by the Province. “We have not done a good job with our public finances,” he said. “We have been living beyond our means.” He said that needs to change, and that “we are living on resource revenue that properly belongs to our children and our grandchildren.” He said the amount we spend in Alberta on health care “is not sustainable” and added that “we’re going to have to contain expenditures as we move forward.”

Premier Prentice did not shy away from the topic of taxation, either. Asked if the market is ready for a conversation about it, the Premier replied, “I certainly hope so.” He suggested that most Albertans probably don’t support the idea of a provincial sales tax, but did say that now is the time to discuss it. “We welcome the views of all Albertans on taxation,” he said. “Now is the time to speak up about this.”

Perhaps thinking ahead to the budget, Premier Prentice talked about what to expect. “First and foremost we need a fiscal plan than Albertans can look at and have certainty,” he said. And knowing that the roller coaster cannot continue, “it has to be a ten year plan.” He said that oil “may always be the family business” but said that diversification is important.

Given the opportunity to offer some closing thoughts, Premier Prentice said “you don’t win a bigger lottery than to be an Albertan.” He ended on an optimistic, hopeful note. “This is a remarkable province and we have a remarkable future.”

Extra Notes

EEDC Board Chair Barry Travers brought greetings on behalf of the board of directors, and introduced all of his colleagues. The event was hosted by Grant Ainsley and featured a giant Twitter wall powered by Freeman Audio Visual and SAM that received rave reviews from attendees. Everyone received a copy of “Navigating Your Economic Future in Edmonton: A Guide for Business Leaders”. The entire event was livestreamed by the Edmonton Journal, which you can watch here.

For additional context on this story, check out the following posts:

Recap: TEC VenturePrize 2014

Local entrepreneurs were celebrated tonight at the 12th annual TEC VenturePrize awards celebration in Hall D at the Shaw Conference Centre. More than $200,000 in prizes were handed out to the nine finalists across three competitions!

TEC VenturePrize 2014

Here’s what VenturePrize is all about:

“You have a business idea, but don’t necessarily have the business training to launch your company. The more you brainstorm about transforming your vision into a venture, the more questions you have. What are the legal issues with creating a company? Where is the financing going to come from? Am I targeting the right market? Find out by participating in the TEC VenturePrize business plan competition.”

It’s a great opportunity for participants to make connections with investors and other entrepreneurs, to learn more about what it takes to run a business, and to gain valuable insight from experienced mentors.

TEC VenturePrize 2014

Our host for the evening was Ryan Jespersen from BT Edmonton. Premier Dave Hancock opened the event bringing greetings on behalf of the Province, followed by TEC Edmonton CEO Chris Lumb who brought opening remarks and also presented the Recognition Award to Bob Teskey. His acceptance speech was about twelve seconds long, which helped to contribute to a timely program that finished slightly ahead of schedule.

“Bob envisioned and designed the TEC Edmonton structure: an unincorporated Joint Venture to create strong commitment among Joint Venture partners, enable the University and City ti work together in unique ways, and build linkages between university and community.

This award is presented in recognition of Bob’s role in growing a strong Edmonton, through his outstanding ability to forge institutional partnerships.”

Mayor Iveson was the next speaker. He talked about the changing energy in Edmonton, and said “it’s getting easier to make an idea reality in this city.” Mayor Iveson stayed on stage to help interview the three student competition finalists: AlieoGames, Livi Design, and Smart Count Health. All three were from the University of Alberta!

TEC VenturePrize 2014

This year TELUS came on board to sponsor the first ever ICT Competition at VenturePrize. We heard pitches from the three finalists: It’s Date Night, MyMenu, and Zayfti. You can learn more about each one at TEC Edmonton. Given the ridiculous state of online restaurant menus, I really hope that Edmonton-based MyMenu is successful in its quest to help diners with dietary restrictions. It’ll be tough to get restaurants to upload menus though when so many don’t even keep their own sites up-to-date!

TEC VenturePrize 2014

Since 2002, the Fast Growth competition has awarded more than $1.5 million to Alberta-based entrepreneurs to help them grow their companies, an impressive number of which are still operating! The finalists in this year’s competition were:

Belgravia Tech Inc.

“BTI has created a safe, reliable, and cost effective alternative to a nuclear reactor-generated medical isotope vital for timely diagnosis and management of patient treatment for many major health issues, including cancer and heart problems. BTI’s unique technology is well positioned to fill this critical need and provide healthcare organizations with the means to offer quality care for heart and cancer patients worldwide.”

Localize Services Inc.

“Localize in an Edmonton-based company that helps tell the stories behind the foods we all love. Their unique grocery-shelf labeling service rapidly collects and conveys product information to consumers, making it easy for grocers anywhere to launch local, regional, and domestic food campaigns in their stores. These smartphone-enabled tags and unique “Localize scores” empower shoppers to quickly learn the who, what, where, and how behind thousands of products on grocery shelves across Canada.”

Tactalis

“Tactalis develops amazing tactile tablet computer systems that help people who are blind or visually impaired to explore, create and share images and digital media that they cannot see. Each of their award winning products has a unique touch sensitive interface and embedded tactile display that lets users touch and feel physical representations of features, symbols and graphics on an LCD screen.”

All very interesting companies with great elevator pitches! I think the work that Localize is doing is really important and they delivered a really clear message to the audience this evening. Tactalis has such an interesting product – think of it like braille for the digital era. I can see a huge market for what they’re doing!

TEC VenturePrize 2014

Up next was the keynote speaker, Dianne Buckner. She spoke about the art of the pitch, giving the judges an opportunity to leave the room to make their final deliberations. As the host of CBC’s Dragon’s Den and as a member of the Business Team at CBC News, Dianne knows a thing or two about pitching. Her advice tonight? Do tell a story, don’t let a “dragon” discourage you, do align your goals with those of the person you’re pitching, and don’t be afraid to talk about your weaknesses. She also said to keep in mind that the first thing you’re pitching is always yourself – if they aren’t interested in you or don’t think you’re competent, why would they be interested in your product or service?

TEC VenturePrize 2014

Finally, it was time to find out the winners!

Edmonton Journal People’s Choice Award
Localize Services Inc., with 59.5% of the vote

TEC VenturePrize Student Business Plan Award
AlieoGames

VenturePrize TELUS Information & Communication Technology Award
MyMenu

TEC VenturePrize Fast Growth Grand Prize Award
Localize Services Inc.

It was a big night for Startup Edmonton, as all of the winners and many of the finalists had a connection in some form or another to the organization. It’s great to see the continued positive momentum behind entrepreneurship in Edmonton!

TEC VenturePrize 2014

Congratulations to Localize and to all of the participants, finalists, and winners! Thanks to TEC Edmonton for providing me with a seat tonight to capture the action. You can see more photos from the evening here.

Edmonton aspires to eliminate poverty within a generation

More than 100,000 Edmontonians live in poverty – that’s 1 out of every 8 residents. Nearly 30% of those who live in poverty are children. Thousands of Edmontonians are unable to fulfill their true potential in life due to poverty. Furthermore, the cost of poverty to Albertans is estimated to be between $7.1 and $9.5 billion each year. We cannot continue trying to simply manage poverty – we need to invest in ending and preventing it. Can we eliminate poverty in Edmonton within a generation? I think we can.

Poverty Elimination Steering Committee

Over the last year, I’ve been a member of the Poverty Elimination Steering Committee, led by Councillors Henderson and Sohi and the United Way of the Alberta Capital Region. Made up of 26 members, our committee was established in 2012 and initially aligned its work with the United Way’s “Pathways out of Poverty” initiative, as well as the Province’s Poverty Reduction Strategy. The committee’s summary report was presented to City Council on March 3:

“The cost of not responding to poverty now will have enduring intergenerational effects on individuals, families and society. Investing in eliminating poverty today is creating a better future for all Edmontonians. We can end poverty in Edmonton in a generation and build a truly inclusive and vibrant city where prosperity is shared by all. A new conversation along with dynamic and nimble partnerships will bring us successfully to this goal.”

Shifting our approach from charity to investment and transforming the public conversation accordingly were key motives behind our work. I was happy to be able to contribute in a number of ways, including building the website and making poverty a key issue for candidates to consider during last year’s municipal election. Most of all, I was grateful for the opportunity to learn so much about this complex issue from some of the local leaders I most respect and admire.

Over the last couple of months it became clear that a Mayor’s Task Force would be established, so the committee shifted its efforts to identify focus areas for action. Based on community engagement sessions, research conducted, and other input, we identified five areas for the new task force to consider.

“These five Focus Areas for Action are all critical and strategic opportunity areas to advance real change and progress as Edmonton shifts the conversation from one of band aid solutions to comprehensive long-term change towards ending poverty. It is important to note that each focus area is related to, and dependent on, the other. None can be tackled in isolation, and it is essential to avoid creating new silos.”

focus areas for action

All of these areas are important, but I’m particularly interested in transportation. It was eye-opening to see how significant a barrier it can be during the poverty simulation I participated in. I was also surprised to learn throughout my time on the committee that for an increasing number of Albertans, transportation accounts for the greatest portion of monthly expenses, even more than housing. City Council is already very focused on transit and transportation in the city, and I hope they’ll seriously consider the impact of their decisions on poverty as they progress that work.

Our last committee meeting took place a few weeks ago, to finalize the report and prepare to pass the baton to the new task force.

Task Force for the Elimination of Poverty in Edmonton

City Council passed Bylaw 16765 establishing the “Task Force for the Elimination of Poverty in Edmonton” at its March 12 meeting. In his comments about the initiative, Mayor Iveson said:

“I think we are unafraid to dream of a more inclusive Edmonton and though it will take time and a shift in our thinking I really think Edmonton is perhaps one of the best places to show leadership on this, because we are the kind of city that can bring together business, academic experts, people in civil society and leadership, non-governmental organizations, faith communities; that is the Make Something Edmonton piece of this. We can rally the whole community around this the way we have around other complex challenges.”

If you get a chance, listen to the comments Council made about the initiative. Councillor Walters shared a personal story about poverty and talked about how important it is to help all Edmontonians reach their potential. Councillor Henderson and others also spoke passionately about the importance of the work.

The task force’s mandate is to prepare and present to City Council a report on poverty in Edmonton which includes:

  • information on the nature, extent, and causes of poverty within the Edmonton region;
  • a concrete plan for eliminating poverty in Edmonton within a generation;
  • recommendations to Council on how to implement the plan.

The volunteer members of the task force are:

  • Bishop Jane Alexander
  • Justin Archer
  • Jeffrey Bisanz
  • Kate Chisholm
  • Yvonne Chiu
  • Joseph Doucet
  • Sarah Eadie
  • Dr. Louis Francescutti
  • Mark Holmgren
  • Sandra Huculak
  • Eugene Ip
  • Tiffany Linke-Boyko
  • Maria Mayan
  • Carman McNary
  • Janice Melnychuk
  • Zahra Somani

There is also one spot reserved for an aboriginal member (to be selected by Aboriginal Round Table), one spot for a provincial government representative, and one spot for a federal government representative. Councillors Henderson and Sohi will still be involved, and of course Mayor Iveson will co-chair along with Jane Alexander. Additionally, the task force will have the ability to engage others via working groups.

By September, the task force will bring a report back to Council “providing possible amendments to include in the bylaw regarding definitions for ‘poverty’ and ‘generation’.” The bylaw states that the task force will fulfill its mandate by providing its report to Council on or before December 31, 2015.

What’s next?

Just three of the task force members (Yvonne, Mark, and Janice) were also on our Poverty Elimination Steering Committee. I point that out only to express a hope that the task force doesn’t end up repeating work that we’ve already done (in many ways, the committee was repeating work done by other organizations over the years). What’s needed is ownership and action, not more research and report writing. The bylaw does explicity state that “the task force will continue the work of the Edmonton Poverty Elimination Steering Committee” so I’m hopeful that will be the case.

On Thursday, March 20, dozens of Edmontonians will come together at the Shaw Conference Centre for the Mayor’s Symposium on Poverty. It’s an opportunity to review previous work and discuss next steps. I’m looking forward to meeting the members of the new task force and contributing to the direction it will go.

The work to eliminate poverty in Edmonton will not be easy nor will it be quick, but it is important. I want to end with this passage from our committee’s final report:

“We need to shift our focus from charity to investment, from poverty alleviation to poverty elimination, recognizing that social infrastructure is as important as physical infrastructure. We have to be people centred and place-based, seeking made in Edmonton solutions involving Edmontonians.”

Our goal is to end poverty in Edmonton within a generation. How can you help?

Edmonton’s Valley Line LRT moves forward with commitment from the Province

It was the announcement Edmonton was hoping for last Thursday when the Province unveiled its Budget 2014: money for southeast LRT extension to Mill Woods.

Valley Line LRT Funding Announcement

Edmonton’s Valley Line LRT is moving forward after the Province today made a commitment to provide up to $600 million to help finance the project. In a prepared statement, Premier Alison Redford said:

“Alberta is preparing to welcome a million new residents over the next decade, many of whom will be choosing communities like Edmonton as their home. Our Building Alberta Plan is helping municipalities build public transit systems to accommodate growth and make it easier for Albertans of all ages and levels of mobility to get where they need to go.”

In stark contrast to his disappointment last Thursday, Mayor Don Iveson was understandably pleased with today’s result, calling it “a momentous occasion”:

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Today’s announcement was a bit over-the-top in my opinion, with Premier Redford, cabinet ministers, and MLAs arriving at Churchill Station via LRT. I think Mayor Iveson picked up on the pomp as well, joking that he hoped the ministers enjoyed their trip on the LRT.

Valley Line LRT Funding Announcement

It was a good opportunity for Edmontonians to show support for LRT expansion however, with students from City Hall School holding up #yeg4lrt signs at the top of the escalator. There was a sizable crowd gathered and lots and lots of media on hand to capture the event. If you’d like to watch the announcement, you can see the raw footage here.

What the Province has committed to is:

  • up to $250 million under GreenTRIP over three years beginning in 2016-17 upon approval under the second call for GreenTRIP projects,
  • up to $150 million in matching provincial funding if the federal government approves this project under the new Building Canada Fund beginning in 2016-17, and
  • up to $200 million in an interest-free loan to be repaid by the city over 10 years, fully backed by the Alberta Capital Finance Authority (ACFA).

As Mayor Iveson noted today, only $400 million of that is new money. The interest-free $200 million loan is simply a creative way to bridge the gap.

Valley Line LRT Funding Announcement

It is unusual though not unprecedented for the Province to offer interest-free loans to municipalities through the Alberta Capital Finance Authority (ACFA). For instance, a program known as “ME first!” launched in September 2003 and provided interest-free loans to encourage municipalities to achieve energy savings in their operations. It is common for the City to receive loans from ACFA for infrastructure projects, with typical interest rates ranging from 1.6% to 3.3%. Some projects that the City has previously borrowed for include the Whitemud Drive/Quesnell Bridge rehabilitation, the Walter Bridge replacement, and the NAIT LRT line. Any loans would be subject to the Municipal Government Act, which outlines debt limits and other restrictions. Edmonton is well within both the provincial debt limit and its own more strict limits.

Technically the money won’t start flowing until 2016, which perhaps not coincidentally happens to be the pre-election budget. It certainly did feel like a politically motivated announcement today. The Province received immense pressure from Edmontonians after last week’s budget and Mayor Iveson and his colleagues on Council did a good job of harnessing that to their advantage (the mayor even played along with the #SadDonIveson meme).

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As Dave noted today:

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Still, the assurance from the Province means that the City can keep the project moving forward, and that’s a win for Edmonton. We won’t lose a construction season, and the federal funding will likely be received without issue. Mayor Iveson confirmed:

“Knowing that we have a clear pathway to apply for those dollars allows City Council to consider moving ahead to the next step of this journey.”

The mayor thanked Council, our regional neighbours, and the ministers at the Province for working hard to get the deal done.

Valley Line LRT Funding Announcement

I know many people have been working on this for a long time, but I think Mayor Iveson deserves a lot of credit for making this happen. He expressed disappointment and frustration last week, but did not alienate the cabinet ministers he needed to work with to move things forward. He kept the lines of communication open, and clearly said the right things.

Today’s news, while positive for the Valley Line LRT, is not the long-term commitment that the mayor has been seeking, but it is another step in the right direction.

Valley Line LRT

Here’s a look at what the Valley Line LRT will look like from Mill Woods to 102 Avenue downtown (subject to change):

The City’s website has already been updated with details related to the funding:

“Thanks in part to timely commitments by our provincial and federal partners, the Valley Line will remain on schedule for a construction start of 2016, aiming to be open to the public by the end of 2020.”

The next step is a Request for Proposals to shortlist qualified consortia (groups of affiliated companies) that bid on the project. That stage is expected to take three months.

Keep up-to-date on the Valley Line LRT here or sign up for email updates.

Province to Edmonton’s City Council: “You’ll like the 2014 budget…just kidding!”

Things were looking up for LRT expansion in Edmonton. As recently as a few weeks ago, Mayor Iveson sounded optimistic that the Province was going to provide money for LRT. Other members of City Council had also received positive indications from the Province. But talk is cheap, and the Province didn’t follow through with today’s budget, as Mayor Iveson made clear:

“Not in a position to celebrate anything today at this point. Little bit of disappointment that yesterday’s message and really the message our Council has been consistent about since last year hasn’t quite gotten through yet.”

The Province unveiled its 2014 Budget this afternoon, saying it “delivers the core services Albertans expect, makes strategic investments in innovation to improve the lives of Albertans today and into the future, and strengthens new and existing infrastructure to address the demands of our growing province and economy.” Unfortunately, LRT was not deemed a priority as evidenced by the complete lack of commitment to funding its ongoing expansion in Edmonton and Calgary.

The original GreenTRIP fund of $2 billion, created by the Stelmach government in 2008, has not been increased. MSI funding increased slightly, but not nearly enough to fund the LRT expansion to Mill Woods. Besides, as Mayor Iveson again pointed out today, Edmonton has a need for LRT funding on top of all the things that MSI funding is used for in other municipalities – building libraries, recreation centres, etc. The lack of increase in GreenTRIP funding was especially disappointing to the mayor:

“My interpretation of long-term commitment to GreenTRIP isn’t just saying we’re going to roll out all the money we announced serveral years ago by 2019 and announce this year’s money like its new when its actually money that we’re putting into the NAIT line today because its money that was announced previously.”

He clarified yet again what a long-term commitment would look like:

“For me, a long-term commitment to transit would be an open-ended or ten year commitment to sustained levels of funding for rapid transit expansion in our province.”

The reaction from local leaders was disappointment, as expected. “There’s no new commitment to transit here,” Mayor Iveson said.

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There are two key risks the City faces by not receiving funding for LRT expansion from the Province. The first risk is that we miss yet another construction season, which could add around $65 million to the total cost of the project. The City has a deadline of April 30 to try to get all of the necessary funding in place. If that date isn’t met, then the completion of the Southeast LRT expansion by 2019 is in jeopardy.

The second risk is that the federal funding Edmonton has applied for under the P3 Canada program could be at risk if construction doesn’t begin by the end of 2015. “There is a timeline on the P3 grant,” Mayor Iveson said. “If we were to lose another year, then we would potentially begin to lose some of the federal funding, and then we’d really lose momentum.”

Mayor Don Iveson

But the biggest issue here is that the Province made noise about a long-term commitment to LRT, and simply hasn’t delivered. Mayor Iveson expressed his frustration with this:

“Frankly I received a lot of mixed messages from the Province over the last six to eight weeks, that we’d be happy, that we should manage our expectations, that we’d be satisfied, that we’re asking for too much, and often from the same people, so that is a frustration.”

Still he tried to remain optimistic, adding, “that just tells me that things are fluid still.”

You can listen to Mayor Iveson’s full remarks here:

If there wasn’t already a trust issue between City Council and the Province, there most certainly is now. Conversations can only be considered productive if they actually lead to an outcome that all sides are happy with. If the Province wasn’t prepared to make a commitment now, they should have made that clear to the mayor and the rest of Council.

Asked what he thought about his first provincial budget experience since taking office, Mayor Iveson sighed audibly. “That’s what I think,” he said. Ever the optimist, he said he remained dedicated to working with the Province to find a positive outcome for the city. “I think they’ve figured out in the last 24 hours that we really mean it, this is really important to us.”

You can read more about the Province’s Budget 2014 here.

Does high speed rail have a future in Alberta?

Last week I attended a public meeting on high speed rail in Alberta (which I typically abbreviate ABHSR). The issue is being considered by the Standing Committee on Alberta’s Economic Future, an all-party committee consisting of 18 MLAs. As part of the process, the committee has now heard from the public in Calgary, Red Deer, and Edmonton, and is encouraging additional written submissions by March 31. I hope at least a few Albertans take them up on that, because their “public” meeting was poorly publicized and required going past three security checkpoints.

Alberta High Speed Rail Public Meeting

Here’s the stimulus provided by the committee on the idea:

  • It could offer service between Edmonton and Calgary (including a stop in Red Deer) with a trip time of one to two hours at speeds of 200-500 km/h.
  • One-way ticket prices have been estimated at between $66 and $142.
  • Capital costs have been estimated at $2.5 to five billion, but could be significantly higher.
  • A route would be chosen and land would be acquired along the route for tracks and stations.
  • Overpasses or underpasses would likely have to be built to accommodate many of the road crossings or, alternatively, bridges above any roads the track would cross could be constructed.

Clearly the idea is intriguing. A hundred bucks to get to Calgary in less time than it would take to drive? Sign me up! Driving is stressful, I could read or do some work on the train, there are lots of positives, for sure. But is Alberta ready? Is this an investment we’re prepared to make now?

There were some interesting viewpoints put forward at the meeting. Some felt the time is right, and that a project like this could allow us to harness the talents of all the smart, creative, and innovative people we have throughout the province. Others expressed concern that our population isn’t big enough to warrant such a project. And still others argued that automated, driverless cars are coming and will make the entire idea irrelevant (as exciting as the work Google and others are doing in this area is, there are significant hurdles still to overcome, so I’m not holding my breath).

Technically, the project sounds feasible. A few speakers talked about Maglev technology that has been deployed in a number of other places, notably in Asia. One speaker, Deryck Webb, said Maglev combined with vacuum tubes was the way to go (what he described sounded very similar to Elon Musk’s Hyperloop). I think the key issues are financial and political, not technical.

Alberta High Speed Rail Public Meeting

The issue last came up in 2009, when a report was issued assessing the potential for service between Calgary and Edmonton. At the time I wrote:

“I personally think if the province is going to be spending money on transit, it should be on city and regional transit. Both Edmonton and Calgary could use the assistance to improve their respective transit systems…”

I still feel that way today. If we’re going to spend a few billion dollars, let’s spend it on LRT first.

This is the message our local leaders are sending to the Province. One of the written submissions the committee has received thus far was from the Edmonton International Airport. President and CEO Tom Ruth wrote the following:

“Given the lack of local networked options in the Edmonton Region, we agree with the position of the City of Edmonton and the Edmonton Economic Development Corporation (EEDC) that the priority should be to ensure there are fully developed networks in advance of HSR; including Light Rapid Transit (LRT) service fully developed within the Edmonton Region, with connectivity to EIA. Until these intra-regional options are fully built out, the utility of HSR is severely limited.”

Maybe high speed rail is in Alberta’s future, but I hope it’s after we have developed the LRT networks in Calgary and Edmonton.

You can see the full transcript of last week’s public meeting here (or in PDF here). You might also be interested in the Reddit thread on the issue. If you’d like to submit something to the committee, send it to economicfuture.committee@assembly.ab.ca. The deadline is March 31, and all submissions and the identities of their authors will be made public.

A vision for the future of transportation in Alberta

The Province is currently working on a new long-term transportation strategy for Alberta. Over the last two months, public discussions have been held throughout Alberta and in the spring, an online survey will be released.

“This Strategy – which will focus on all forms of transportation, connections and ways to move people and products – provide an overarching vision for Alberta’s transportation system over the next 50 years. It will also help guide government decisions on transportation investments, policies and programs.”

That’s a big challenge. But it’s exciting to consider!

Since I missed the meeting here in Edmonton, I took a look at the feedback form. It includes a number of questions that aim to capture what the public thinks about the strategy. One of the first deals with the proposed vision for the Transportation Strategy for Alberta:

“A world-class transportation system that is safe, sustainable and innovative, and that supports Alberta’s economy and quality of life.”

I suppose there’s nothing wrong with that, but it just seems rather bland, doesn’t it? It’s very expected. And phrases like “world-class” are just meaningless. The proposed vision is also incredibly similar to others. For instance, here is Transport Canada’s vision:

“A transportation system in Canada that is recognized worldwide as safe and secure, efficient and environmentally responsible.”

Needless to say, I’m not a fan of the proposed vision. It doesn’t tell me anything about what transportation in Alberta will look like in the future, especially as you could credibly argue that it reflects the current state of Alberta’s transportation system.

welcome to alberta
Welcome to Alberta by Magalie

What could it be instead? Well let’s consider the context.

The shift from rural to urban has been dramatic in Alberta. According to the 2011 federal census, more than 56% of Albertans now live in population centres larger than 100,000 people in size, and 83% live in urban areas of any size (compared to 81% nationally). We’re an urban province now more than ever. The economic power of cities cannot be ignored.

We know that vehicles are dangerous. According to the World Health Organization, “road traffic injuries are the eighth leading cause of death globally, and the leading cause of death for young people aged 15-29.” Here in Alberta, traffic fatalities have declined significantly from 2007 through 2011, but there are still too many of them. We also know that vehicles have a negative impact on the environment. They contribute to global warming, they contribute to smog, and they take up an incredible amount of land that could otherwise be used more productively.

There are lots of other factors to consider, but I think these are the two most important. Reducing our dependence on vehicles and recognizing the importance of cities should be central any vision of the future of transportation in our province. Unsurprisingly, the two biggest cities in Alberta have already recognized this.

Our neighbours to the south have the Calgary Transportation Plan, which says:

The decisions made today about where and what to build will affect Calgarians for 100 years or more – just as decisions made in the past affect us today. Going forward, the transportation system must perform a wide variety of roles and consider the context of surrounding land uses, be they natural or manufactured. It must provide more choice for Calgarians – realistic choices that are convenient, affordable and attractive. These choices include walking, cycling, transit, high occupancy vehicles (HOV or carpooling) and single-occupant vehicles (SOV).

Here in Edmonton, we have the Transportation Master Plan, The Way We Move. It is even more aggressive:

We are building a 21st century city, shaping an Edmonton that will meet the needs of our diverse and growing urban and regional population. Growing environmental concerns, acknowledgment of the ongoing investment needed to maintain our transportation infrastructure and the rapid growth of our city demand a shift in transportation priority setting. It is a shift from single passenger vehicle use to more public transit; from building outward to a compact urban form. From an auto oriented view of transportation to a more holistic view of an interconnected, multi-modal transportation system where citizens can walk, bike, bus and train efficiently and conveniently to their desired location.

I recognize that Calgary and Edmonton have a completely different context and set of challenges than the rest of the province does, but I think their transportation strategies are informative. Let me also say that I don’t think creating a vision statement is easy. I know a lot of hard work, thought, and difficult discussions are needed to come up with them. That said, I’ll take a stab at it.

Here’s my attempt at crafting a stronger vision for the future of transportation in Alberta:

An innovative and sustainable transportation system that emphasizes high occupancy vehicles and strengthens the global competitiveness of Alberta’s urban areas.

What do you think?