Saga of politics in a small town

Where some business owners can squeal louder than a stuck pig!

As an artist and communicator I like to document certain events that occur in my life. I do it in the belief that internalizing stress is toxic to one’s mental and physical health. One way to exorcise these strains is to write them down or spew them out.

It’s not always pretty but it works for me.

When I was thrown off eBay in 2003 for expressing an unpopular opinion among their clientele, I recorded all the relevant details and chain of events on thebushadministration.com.

I’ll do the same on these pages by documenting the reaction to my outspokenness on retail gasoline pricing in the Dawson area during the winter and summer of 2009.

At this time I stood up and defended the consumer on the basis that fuel prices were and still continue to be disproportionately very high here.

My opinions on this topic were bandied about since July 2009 inciting outrage by one business in particular. Conversely, I received an outpouring of support by regular citizens for having the courage to speak out.

With encouragement from one of our town councilors at the time, Ms. Sharon Edmunds worked up a lather over the idea that the Mayor would publicly implicate her husband’s Shell gas station as having overcharged customers.

The reference was made to the following article in the Friday, July 24, 2009, issue of the Yukon News written by Tristin Hopper.

Dawson City gas stations ‘gouging’ customers

By Tristin Hopper

Dawson City’s gas stations are “unconscionably gouging” their customers, said Mayor John Steins.

Gas in Dawson is selling for 23 cents more than in Whitehorse, making these the highest gas prices of any Yukon community.

Over the weekend, Dawson City’s downtown Shell station sold fuel at $1.30 per litre.

Meanwhile, stations in Whitehorse sold fuel at $1.01 per litre.

“Obviously, $1.30 (per litre) is excessive,” said Steins.

“I don’t know what you’re supposed to do, stand there with a gun and threaten them? — it’s ridiculous” he said.

In January, Dawson gas stations justified their high prices by saying that they were still selling off “expensive” gas purchased before the post-recession drop in fuel prices.

“We still have the old gas, so unless we sell it at a loss, we can’t match the prices in Whitehorse,” an employee of Dawson City gas and tire told the News, at the time.

Six months later, Dawson gas stations have all filled up with low-priced post-recession gas, but their prices remain sky-high.

The difference comes from “freight,” said a representative of Dawson City’s Fischer Fuels.

Dawson’s fuel prices typically hover at about 15 to 30 cents higher than those in Whitehorse.

Even at 15 cents, that means that for every 37,500-litre tanker truck, “freight” would be costing $5,500.

During the winter, when Dawson service stations were charging 47 cents more per litre than in Whitehorse, a premium of $17,625 would be attributed to “freight.”

MacKenzie Petroleum charges $10 per “one-way mile” to ship fuel.

A tanker truck to Dawson, therefore, would only cost about $3,300.

Smith Fuel Services, based in Fort St. John, BC, estimates it would cost only about $2,500 to ship a tanker from Whitehorse to Dawson, a sum equal to about 5.5 cents extra per litre.

Per-kilometre, Dawson gas stations don’t pay any premium for North 60 fuel, said Sharon Ness, president of North 60 Petroleum limited.

You’d have to ask the gas stations why prices are so high, she said.

“I won’t disclose what we pay (for freight),” said the Fischer Fuels representative.

It’s more expensive to operate a gas station in Dawson City, said Don Frizzell with MacKenzie Petroleum.

“Their power costs more and their labour costs more, and their volumes are lower, so they need a higher margin, but I don’t know if it’s justified or not,” said Frizzell.

MacKenzie operates a cardlock in Dawson, but otherwise doesn’t provide fuel to service stations.

Lower sales volumes may also be prompting the price spread.

“(Dawson) service stations have to provide a service all-year round, none of them close for the winter, and they’ve really only got an audience there for three months,” said Frizzell.

“Whatever money you’re going to earn in three months is going to carry you through the rest of the year,” he said.

Gas stations in Beaver Creek and Destruction Bay face similar challenges, but manage to keep their prices more than 10 cents lower than in Dawson.

For June, Beaver Creek was charging $1.17 a litre, Destruction Bay was charging $1.16.9.

The above article along with a radio interview caused the following letter to be presented to town council with Ms. Edmunds in delegation where she read it out loud:

I have now interjected my responses where appropriate.

To: Mayor John Steins
Re: Yukon News interview with Mayor Steins, “Dawson City gas stations ‘gouging’ customers”, printed in Friday, July 24, 2009 newspaper.

As our Mayor, what you are reported as saying is unjustified.

FYI:
-Dominion Shell is owned by North of 60, Boyd leases it with an agreement to run a CONVENIENCE STORE as well as vending North of 60′ s fuel.

- the store is required to be open 7 days a week… and it takes 2 8-hour shifts of 2-3 staff on each shift….we have mature staff that are paid well, as we have found that teenagers and summer students are not always available or reliable. Labour is a major cost component of running the operation, maintenance of equipment is another major component. Basically, it costs a lot of money to run a business, and we have commitments to our staff to make payroll so that they in turn can meet their commitments..

JS – The message here appears to say that this business is not viable unless consumers support it by paying a premium for gasoline.

the tanker comes in with fuel and that fuel is paid for… cash on delivery..it costs money to pay up-front. And that fuel price is determined by North of 60. Northern Superior then adds a markup just like any business that is selling a product. That price stays as it is until that tanker amount is sold, and that depends on the amount of traffic..

JS – This policy appears to work only one way. Noticeably when market prices go up it seems that gets reflected immediately on existing inventory. Never the other way around.

-the prices in Whse are cheaper, they have many more customers…a population of 22,000 vs. our 2000, and we don’t have mega Super Store to purchase from. And yes, freight does enter into it, it costs big money to bring a truck in 535 km north of Whse, and returning empty.

JS – Nobody said that Dawson prices should be on par with Whitehorse. In January of 2009 the pumps in question were almost 47¢ per litre more than in Whitehorse. A little decency please.

if you are so price conscious, you should not be driving your old truck OR your Jaguar, neither is fuel-efficient. And what are YOU paid per kilometer by the government for each trip you make to Whse and back on ‘official business???

JS – The argument isn’t about fuel efficiency, it is about businesses engaged in exploiting a captive market. Travel allowance has no bearing on this at all. These are petty personal attacks.

-why would you single out the gas stations? Are you as concerned about the price of a pound of butter…which is 4.29 here and 3.79 in Whse… do you not feel THAT is outrageous. And a gallon of paint costs more here… so does Tide laundry soap! I don’t hear you questioning other businesses in town whose prices are higher than Whse. Is that fair? If you are going to take issue with one sector then you should do so with all businesses here.

JS – Comparing apples with oranges won’t get us anywhere. Fuel is a commodity on par with other energy utilities. It is not something one can purchase in bulk storage to hedge against future increases. Tourists and locals alike are absolutely dismayed to see such a large margin between Whitehorse and Dawson.

But you are our MAYOR, John… you have a responsibility to be supporting this town, lest you forget!!!

JS – Indeed I was the mayor and I did support the hard working people that are continually subjected to excessive pricing at the pumps.

I think a sincere apology from you written to the Editor of the Yukon News and our local Klondike Sun is in order.

JS – Council unanimously agreed that an apology was not in order. The complainant did not get the pound of flesh she was looking for.

Because Ms. Edmunds left the chambers frustrated with the outcome of her presentation to council she lashed out with the following email she sent to all city staff, town council and whoever else might have been on her mailing list:

Subject: Anger Managment

I laughed so hard it Made me cry! Hillarious!

I was sitting at my desk when I remembered a phone call I’d forgotten to
make.

I found the number and dialed it. A man answered, saying “Hello.”
I politely said, “This is Sharon. Could I please speak with Robyn
Carter?”

Suddenly a manic voice yelled out in my ear “Get the right f*** ing
number!” and the phone was slammed down on me.

I couldn’t believe that anyone could be so rude. When I tracked down
Robyn’s correct number to call her, I found that I had accidentally
transposed the last two digits.

After hanging up with her, I decided to call the ‘wrong’ number again.

When the same guy (John S.) answered the phone, I yelled “You’re an asshole!” and hung up. I wrote his number down with the word ‘asshole’ next to it, and
put it in my desk drawer. Every couple of weeks, when I was paying bills
or had a really bad day, I’d call him up and yell, “You’re an asshole !”
It always cheered me up.

When Caller ID was introduced, I thought my therapeutic asshole calling
would have to stop.

So, I called his number and said, “Hi, this is Sharon from the
telephone company. I’m calling to see if you’re familiar with our Caller
ID Program?”

John yelled “NO!” and slammed down the phone. I quickly called him back
and said, “That’s because you’re an asshole!” and hung up.

One day I was at the store, getting ready to pull into a parking spot.
Some guy in a silver BMW cut me off and pulled into the spot I had
patiently waited for. I hit the horn and yelled that I’d been waiting
for that spot, but the idiot ignored me. I noticed a “For Sale” sign in
his back window, so I wrote down his number.

A couple of days later, right after calling the first asshole (I had John’s
number on speed dial), I thought that I’d better call the BMW asshole,
too.

I said, “Is this the man with the silver BMW for sale?”
He said, “Yes, it is.”
I asked, “Can you tell me where I can see it?”
He said, “Yes, I live on 8th Ave. in Dawson City
It’s an old house, and the car’s parked right out in front.”

I asked, “What’s your name?” He said, “My name is Helmut.”

I asked, “When’s a good time to catch you, Helmut?”
He said, “I’m home every evening after five.”

I said, “Listen, Helmut, can I tell you something?”
He said, “Yes?”
I said, “Helmut, you’re an asshole!”

Then I hung up, and added his number to my speed dial, too. Now, when I
had a problem, I had two assholes to call.

Then I came up with an idea. I called Asshole #1. He said, “Hello.”
I said, “You’re an asshole!” (But I didn’t hang up.)

He asked, “Are you still there?”
I said, “Yeah.”
He screamed, “Stop calling me!”
I said, “Make me.”
He asked, “Who are you?”
I said, “My name is Helmut.”
He said, “Yeah? Where do you live?”
I said, “Asshole, I live on 8th Ave. in Dawson City, an old
house, I have a silver Beamer parked in front.”

He said, “I’m coming over right now,Helmut. And you had better start
saying your prayers.” I said, “Yeah, like I’m really scared, asshole,”
and hung up.

Then I called Asshole No. 2.(Helmut)
He said, “Hello?”
I said, “Hello, asshole .”
He yelled, “If I ever find out who you are…”
I said, “You’ll what?”
He exclaimed, “I’ll kick your ass,”
I answered, “Well , asshole, here’s your chance.
I’m coming over right now.”

Then I hung up and immediately called the police, saying that I lived on
8th Ave. in Dawson City and that my gay lover was on his way over
to kill me.

Then I called CBC News about the gang war going down on 8th Ave. in Dawson City
I quickly got into my car and headed over to 8th Ave.. I got there just
in time to watch two assholes beating the crap out of each other in
front of six cop cars, an overhead news helicopter and surrounded by a
news crew.

NOW I feel much better.

Anger management works.
Have a great day everyone!

Sharon

This makes no sense to me and appears to be driven by a desperate need to insult.

The real insult came in the form of a letter from the Dawson Chamber of Commerce to try and extract an explanation or an apology from me regarding the fuel price comments. Hence the following was received from this tenuous organization as a result of pressure from a motivated town councilor and Ms. Edmunds.

I’ve added commentary where necessary.

September 3, 2009
Mayor John Steins
Box 308
Dawson City, YT
YOB IGO

Dear Mayor Steins,

At the August meeting of the Dawson City Chamber of Commerce discussion
arose during round table regarding comments made by you in the Friday July 24th edition of the Yukon News.

Members present felt it disheartening that our Mayor would single out a specific
business and industry in an article that was regarded as damaging not only to that
business and industry but the overall perception of businesses in our community. The
Yukon News is distributed to all communities in the Yukon and many visitors have opportunity to read it. Since the article, the momentum of your comments has escalated to national coverage – an even more damaging portrayal of business practices in Dawson City.

JS – Why aren’t the members disheartened by the excessive pricing practices of some of their members? Isn’t it possible that consumers in Dawson have been disheartened for decades?

The article, the follow up articles, blog posts and street conversations have had a
negative effect on our community as a whole. In a season when tourism numbers are
down, tourists following the saga of gas prices and our Mayor may decide to not visit our community and will spread the word down the highway. How does this help an already volatile economy?

JS – These statements are inflammatory and speculative. They are not based on fact. Many businesses that I talked to reported a very good season. Further, the reference to a volatile economy is silly. Which study supports the suggestion that Dawson has a volatile economy?

While it is understood that in our country that people have a right to express their
opinion we could only hope that any Mayor would be supportive of business and
economic growth within their own community. The Chamber believes that the manner in
which your comments were expressed was not supportive and did nothing to encourage
businesses to invest or remain within Dawson City.

JS – I was and still am supportive of businesses and people who believe in fair pricing. I would encourage those that share the same values to come and invest in Dawson.

It is also believed that you feel you can justify your comments because you are
looking out for the citizens of Dawson City. The business that you publicly criticised is
owned and operated by citizens of Dawson City. They have made an investment in the
community and are one of a handful of Dawson businesses that commit to staying open
year round to provide service. They should not be singled out in the media as “gougers”
and opportunists when they strive to make a living for themselves and the people that
they employ.

JS – Justification can be found to accomplish anything including the establishment of price points that will provide the best return for investment with a total disregard for the consumer. The Chamber and many of its members need to understand that if customers are treated with respect and fairness they will vote with their dollars in return.

The Chamber realizes the damage this article and the follow up created cannot be
undone but urges you to consider remarks that you make in the future that could have a
negative impact on our community, its businesses and its citizens.

JS – The only damage that has been done is a disclosure of how how protectionist some business owners can be.

Yours truly,
Dina Grenon
2009 President

This letter was posted on the local Home Hardware bulletin board by someone who felt the need to broadcast this rather nasty letter during the mayoral election in October 2009.

The following is my reply and believe me, it took several drafts to get it to a point where it was half way polite:

Friday, September 11, 2009

Dina Grenon
President
Dawson Chamber of Commerce
Box 1006
Dawson City, YT, Y0B 1G0

Dear Dina & Chamber,

Thank you for your letter of September 3 where you described your dissatisfaction with public comments I made regarding retail fuel prices.
Your letter caused me to see this issue from your point of view, for that I am grateful.

I also regret that your membership is disheartened by my opinions.

I would like to make it clear that I am in no way anti business or out to attack any particular entrepreneur.

The problem arises when it comes to fuel prices at the pumps. I understand that to compare us to Whitehorse is like comparing apple to oranges. When I see a 25 to 30 cent difference per litre at some of our pumps it not only causes me concern but it disheartens visitors to our town who need to fill up.

Why criticize fuel and not the price of bread? Fuel is in a category close to other energy commodities, it is something that northerners can’t easily do without or buy in bulk to store in back yards. We depend on it for almost everything. Therefore, if there is a hint that there is a lack of diligence in adjusting prices accordingly one begins to think the worst and has to speak out.

If this comes up again I will chose a less controversial course to air my concerns rather than submit to the whims and aims of the media.

Sincerely yours,

John Steins,

Mayor

This entry was posted on Wednesday, September 30th, 2009 at 10:39 pm and is filed under X-Mayor Barks Back. You can follow any responses to this entry through the RSS 2.0 feed.