Moving the Association Forward: Council Recommends $39 Fee Increase
Derek Doyle, P.Eng.
Producing 12% of Canada’s GDP, the BC economy is maturing into a diverse, strong entity. One needs to look no further than the BC housing market to see the upward economic pressures on the cost of doing business. Like our members, the Association has experienced increased costs for overhead, travel and labour.
To realize the objective of a sustainable financial model for the Association, Council is recommending a fee increase of $39 per year, per member. This sustainable financial model is one of Council’s priorities for the 2006/2007 term—when funding core programs will be tied to annual fees. In BC’s strong economy, where the cost of goods and services is rising, the costs associated with the core functions of the Association are also increasing. I have directed senior staff to review efficiency and the effectiveness of current expenditures and revenue strategies. It is readily apparent that the Association is in need of additional financial resources to sustain its forward progress.
In addition to upward economic pressures on fixed costs, our assessment to the Canadian Council of Professional Geoscientists (CCPG) has increased by 136% or about $22 K. This increase covers the cost of establishing an office and staffing the CEO position. This assessment to CCPG will increase by another $5.56 per P.Geo./GIT to create and administer a national database (a one time capital cost is expected in late 2007 or early 2008). While this increase may appear significant to some, it allows for inter-provincial mobility, which Council wholeheartedly supports. This national database will have an associated maintenance cost, but this will be modest compared to the upfront capital cost.
Additionally, our assessment to Engineers Canada, the national council of professional engineers, has increased from $137k per year in 2003 to over 212k in 2008. The Association is obligated to pay these assessments—such increases are beyond the control of Council.
The priorities that Council has outlined for us also include improved governance, improved quality assurance to ensure that the professions are protecting the public interest, enhanced government relations to build on our collaborative framework, and improved communications and member services. Government relations activities continue to be of importance to Council, so we are looking to increase our collaboration with government on initiatives that are important to our members, their professional practice, and those initiatives that serve the public interest.
Presently, the Association is undergoing a review of policy, business processes and systems review to increase overall efficiency. Additional funding will be required to execute upgrades to processes. As an example, our member database and information system is antiquated—so much so that the software developer does not provide further updates to the program implemented in 1996. Based on technology and programming that is over 20 years old, we are unable to integrate many web-based systems with our current database to improve member service. Due to a growing membership and my objective of enhancing customer service, the Association must upgrade its aging information systems. Without additional funding, we cannot proceed with our IT transformation strategy and will be forced to hire additional staff to compensate for the incapacity of the technology to keep up with the growing volume of members.
In terms of improving member communication, Council has directed that all initiatives will be paired with communication strategies to more effectively communicate with targeted audiences. Council has also directed that the connection between Branches and the Association be improved such that each Branch can make an impact on its respective community and region. Pending the fee increase’s ratification, Branches will also be offered more support to assist Council in achieving Association objectives.
Improved communications will also include a revitalization of branding for the Association. Extra funding is required to increase advertising, tradeshow presence and government relations to illuminate the value that professional engineers and geoscientist have to society, the economy and public safety. Further, we are looking to amplify the positive public profile of all our award winners: President’s Awards, Environment Awards, and Sustainability Award.
With increased funding, the Association will be better equipped to produce and disseminate a larger scope of practice guidelines to our membership, and will be in a position to refine its practice review. Enhanced member communications must include a feedback loop so that we can continue to improve and refine our interaction with our membership. To accomplish this, we will conduct a member survey and a compensation survey. The Association is also looking to centralize member support through a central customer service coordinator to more effectively and efficiently respond to member needs and inquiries.
In addition to applying the fee increase to meet our rising costs, additional funding derived from the fee increase will be applied to boosting efficiency within the Association. For example, the use of electronic balloting and electronic seals for members is currently being investigated; however, there will be a cost associated with implementing these revenue neutral initiatives. Likewise, with the increased funding the Association will purchase services and goods in bulk, thereby reducing the overall costs of travel and administration. Council has also directed that support programs such as CPD continue to be self-financing.
Teleconferencing, webcasting and conference calls will reduce cost and environmental footprint. We also intend on initiating online delivery of materials for committees, Branches and task forces, such as agendas, minutes and newsletters. We hope to further enhance this environmental commitment by applying the triple bottom line to decision making and the reporting of the Association’s activities, financial and otherwise. Again, to implement these sustainable initiatives, additional funding from member fees is required.
Since our last fee increase in 2002, when member dues increased from $210 to $240 per member, per annum, the Association has been able to make good use of electronic communication. Seventy-two percent of the membership paid their annual dues online in 2006. The membership is also using electronic registration; in 2006, approximately 70% of registrants for Professional Development used the online registration feature, allowing for higher productivity of Continuing Professional Development staff. To reduce mailing costs, Innovation magazine is published and mailed out to the membership only six times per year, as opposed to 10 times per year. We are distributing a monthly electronic newsletter, Connections, in its place. We do seven mail-outs to the entire Association per year: six issues of Innovation and the election ballot packages, as required by the Engineers and Geoscientists Act.
In terms of staffing, even in a competitive labour market, we have been able to hire more specialized labour to reinforce our in-house capability and decrease the need for contracting out to legal, graphic design and communications consultants. Council has also directed me to create a flourishing environment for all Association staff to reduce employee turnover and increase productivity.
As the Executive Director of the Association since January, I remain in awe of the collective knowledge and experience of our 24,000 members. I see this collective knowledge as an enormous and ever advancing resource serving all of British Columbia. However, in order to sustain this resource, we need to invest in the Association, its resources, and its staff. The fee increase amounts to $3.25 per member, per month. I feel that this fee increase is warranted to move the Association forward.
I welcome your direct feedback and I can be reached via e-mail at ddoyle@apeg.bc.ca or by phone at 604-430-8035 ext. 229 or toll free at 1-888-430-8035. Self-regulation is a privilege granted in the public interest for the public good. Let us maintain and support this privilege by enhancing our operations.
Two-thirds majority is required to pass a new bylaw for the proposed fee increase. I encourage you to make your voice count by voting in the 2007 election and voting “yes” to the fee increase. Your “yes” vote will give the Association the sound financial footing it needs to meet the current and upcoming financial demands that are inherent to a growing, progressive province like BC. Move the Association forward—vote “yes” for the fee increase.
Correction Notice: Pleased be advised that a typographical error occurred on page 13 of the May/June issue of Innovation in the graphic at the top of the page, entitled “APEGBC Program Spending.” The burgundy section of the pie chart should read 11.8% versus 1.8%. The production team regrets this error.