BOARD MOTION: The Board of Directors will research becoming an INDEPENDENT CLUB, seek a

reciprocal agreement with Kawartha ATV Association and their partner clubs, and bring their

recommendations to a General Members vote at the 2018 AGM.

Passed at the Strategic Planning Session, January 22, 2018

Board Research Reportto the Members of RCATV

Riders Desire Value:

§ Trail Pass at a reasonable cost

§ Safe and well maintained local trails

§ Flexibility to ride outside of Renfrew County

§ Maintain existing riding relationships

§ Access to the entire OVRT

§ Increased ATV Access and Advocacy

§ One voice throughout Ontario

Club Needs Sustainability:

§ A financially viable funding model

§ Strong voice in decisions that impact our riders

§ Support with provincial issues

§ Resources for Growth

§ Mentorship and continuous development

§ RCATV is an Eastern Ontario Trail Alliance (EOTA) Club

§ In Ontario there are four large ATV/Trail organizations and independent clubs: EOTA (5 clubs), Ontario Federation of ATV’s OFATV (16 clubs), ATV Ontario (4 clubs), Kawartha ATV Club

§ At the 2017 AGM, RCATV members voted to remain with EOTA§ To put in place certain measure to ensure increased value from

their affiliation with EOTA§ Revisit their decision of affiliation in 5 years or if circumstances

change which warranted a revisit.

§ In 2017 a number of factors come into place which significantly impact RCATV riders prompting the club to again review their affiliations remaining with EOTA

§ Jan 2018 a motion was passed for the board to research becoming an independent club

RCATV 2017 Snapshot

- 168 Active Annual Members

- 257 Trail Passes Sold in 2017

- 21 Corporate Members

- 750km of Trails

- 250km of Connecting Routes

- MOU’s signed with 5 township, ATV by-laws in City of Pembroke

- $26,000 (87%) in trail-pass revenue spent directly on trails

§ OFATV is an ATV Club only and not multi-use

§ The loyalty program was a consideration, and it was unknown how it would affect reciprocals

§ We would not have been able to keep the trails open and maintained on only $63 from trail pass revenue (compared to $120 (although OFATV pays insurance and leveling fund)

§ The first year RCATV would have been without the benefit of the trail leveling fund (paid the year after it is earned)

§ Leveling fund process for crown land was undetermined and risky given our high % crown land

§ RCATV did not have current written MOU’s for many trails

§ Requirement of needing an EOTA pass on the Ottawa Valley Recreation Trail (former CP) was still a risk

What is the Loyalty Program

- $25 loyalty discount provided to OFATV members

- Offered on on-line purchases when trail passes are renewed before their expiry date

- Encourages continuous trail pass revenue for the clubs

- Easier for clubs to budget their trail maintenance expenses

§ Jan 2018: OFATV loyalty program initiated ($25 discount on online renewals for OFATV members)

§ Feb 2018: Break in EOTA/OFATV reciprocal program

§ Feb 2018: OFATV Clubs at either end of the Ottawa Valley Recreation Trail OVRT (former CP) are now OFATV Clubs. VMUTS in Mattawa and Ottawa Valley ATV Club in Lanark County.

§ March 2018: Ontario Trails Council has done management strategy for OVRT and OFATV is on that board

§ Reciprocal with Quebec (using the RCATV leased CN Bridge) may only be possible through OFATV

§ County of Renfrew is considering future purchase of CN (B Trail)

§ OFATV has been approached to start a club in the North Hastings (Madawaska, Whitney, Lake-St. Peter)

§ County of Renfrew still has not made their decision on establishing OVRT as trail-pass required

§ OFATV changes to crown land verification of trails being voted on which would impact RCATV

§ RCATV has MOU’s in place should members choose to move to OFATV (required for levelling fund)

§ Mar 19, EOTA in partnership with COHV is putting a one provincial pass partnership together under the Ontario Powersports Working Group with EOTA and a few other ATV organizations

EOTA (currently) OFATV IndependentReasonable Cost $150 trail pass $150/ $125 continuous renewal $120 trail pass

Revenue available to the Club for Operation and TrailExpenses

80% trail pass revenue available which determines priorities $ comes in continuous

43% trail pass revenue available plus 15% trail levelling over time which could delay maintenance$ comes in chunks

100% trail pass revenue available which determines priorities$ comes in continuous

Access to trail funding

EOTA gets access to provincial and federal trail grants, however % to RCATV is minimal

OFATV gets access to provincial and federal trail grants, and COHV ATV industry grants available to their clubs

Would have to continue to

Flexibility to Ride outside Renfrew County

5 EOTA clubs in Ontario (1,400 km)Working on a one-pass partnership to include any other alliances interested in joining them

16 clubs in Ontario (1,700 km of trails)other provinces (NB,PEI,NS), potential Quebec

2+ other clubs in Ontario (Kawartha and Haliburton) 2,600 km

EOTA (currently) OFATV IndependentRiding relationships Relationship between other EOTA

clubs, day pass for OFATV/KATVA. Relationship between RCATV and OFATV riders and trails stay maintained

New relationships, new reciprocals or day pass for OFATV/EOTA trails and riding

Access to OVRT Puts trail pass required at risk, could go no-trail pass or any trail pass or OFATV or EOTA pass

Stronger voice for 1 OFATV pass for entire corridor

Puts trail pass required at risk, could go no-trail pass or any trail pass or OFATV or EOTA pass

Increased By-laws & Advocacy

Remain the largest club in EOTA, EOTA a member of provincial trail organizations and OPSWG,EOTA currently creating partnerships for one-pass in Ontario

OFATV is recognized as the Ontario provincial ATV organization, is a member and on board of many provincial and federal trail and ATV organizations

Continue as a strong club on our own, supported by KATVAnetwork, continue to build relationships on our own

One Provincial Voice Provincial working group – RCATVleader. Working relationship with OFATV

Provincial working group – OFATV recognized on many provincial / federal boards

Provincial working group –RCATV leader. Working relationship with OFATV

OFATV

§ Riders save $25 loyalty discount on renewals after 1st year

§ Riders can travel the entire Ottawa Valley Recreation Trail from Lanark to Mattawa with one trail pass

§ Riders who previously enjoyed OFATV trails and rider relationships with the reciprocal still can

§ Stronger voice for one solution for ATVing in Ontario

Independent

§ Riders save $30 on annual trail passes

§ RCATV makes decisions based on RCATV riders needs

§ Reciprocal access to Haliburton and Kawartha trails

§ May have to purchase day pass when using non-RCATV and second for other trails

§ Club Receives: $150/member in trail pass revenue

§ RCATV Pays independently: $22.00§ Pass Expenses: $10§ Pays Insurance ($5M): $12

§ RCATV Pays: $30§ Online pass admin§ HST§ EOTA map

§ Towards operating and trails (65%)§ $98.00/member in trail pass revenue

$10.00

$30.00

$12.00 $98.00

Pass Expenses

EOTA

Insurance

RCATV

§ Club receives $84.20 in trail pass revenue to pay RCATV admin and trail expenses

§ RCATV pays independently: $35.80a. Trail pass Expenses: $10 b. HST: $13.80c. Insurance ($5M): $12

§ Towards trails and operations (70%)§ $84.20/member in trail pass revenue

$84.20

$12.00

$13.80

$10.00

RCATV Exp

Insurance

HST

Trail Pass Exp

§ Club Receives: $65/member in trail pass revenue for RCATV expenses

§ OFATV Pays $62.44/member a. Admin & trail pass: $29.55 b. HST: $17.26c. $15M Insurance: $15.63

§ OFATV Pays $22.56/member into trail leveling fund

§ Total Trails and Operations (43%) per member§ $65/member in trail pass revenue§ plus trail leveling ($/km)

Note: for day pass, or loyalty discount the percentages stay the same. Funds based on percentages

§ For 2018 crown land will be included in trail verification (important for RCATV)

§ Decision-pending at OFATV Board on the exact mechanism on pay-out of leveling fund for crown land, therefore important RCATV participates prior to decision being made if they want to have an impact on decision

§ Not yet determined the process for crown land

§ OFATV has 1,700 private property km’s§ Only 2 OFATV Clubs have significant

crown land trails

§ 2016 leveling fund was paid out at $77/km. Should RCATV decide to join and with VMUTS joining, the rate would decrease to likely $60/km in 2018 due to # of km’s being added to the equation.

§ NOTE: To be considered as a private trail (vs public trails) trail has to be covered under a an agreement with RCATV as steward of those trails (signing, maintaining, etc)

§ Not necessarily that trails are designated as “trail-pass required”

§ What is the Loyalty Program?

- $25 loyalty discount provided to OFATV members

- Members have the option to save $25 on their trail pass renewals after the first year

- Offered on on-line purchases where trail passes are renewed before their expiry date

- Encourages continuous trail pass revenue for the clubs

- Easier for clubs to budget their trail maintenance expenses

- Discount is absorbed between both clubs and OFATV

EOTA $132.75 + HST OFATV $132.75 + HST Independent $106.20 + HST

Financially viable option $150/pass (80%) initial revenue to club

$65/pass (43%) initial revenue to club

$120/pass (100%) initial revenue to club

Direct Expenses $52.00 direct exp. paid by RCATV- $12 insurance- $10 pass expenses$30 to EOTA- maps, HST, pass admin

$62.44 direct exp. paid by OFATV- $17.26 HST - $15.63 insurance - $29.55 OFATV admin/pass$22.56 into trail levelling paid by OFATV

$35.80 direct exp. paid by RCATV- $13.80 HST- $12 insurance- $10 pass expenses

Net Trail Pass RevenueEst. 200 mbrs, leveling fund paid out at $40/km @500km

$98.00/mbr (65%)

$19,600 in trail pass proceeds

$65/mbr (43%)$40/km levelling example$20,000 levelling funds$13,000 trail pass proceeds

$84.20/mbr (70%)

$16,840 in trail pass proceeds

Note: regardless of decision RCATV still has other revenue like corporate membership, grants, event revenue

EOTA $132.75 + HST OFATV $132.75 + HST Independent $106.20 + HST

Voice on provincialmatters

RCATV on the provincial working groupRCATV member of Ontario Trails CouncilEOTA sits on many provincial trail boardsEOTA establishing one-pass partnerships for Ontario

RCATV 2 district reps (District 6) and one vote on OFATV BoardOFATV rep on provincial working group, OFATV on board of Ontario Trails Council

RCATV on the provincial working groupRCATV member of Ontario Trails Council

Membership Management

EOTA handles online salesRCATV handles local sales and membership management

OFATV members databaseOFATV trail pass admin staff

RCATV pay for databaseRCATV pays for trail pass admin and trail pass books

Mentorship/ sustainability

RCATV strong group in EOTARelies on our own network EOTA and RCATV both promote

OFATV club mentoringOFATV promotes us

Rely on our own network in partnership with strong independent clubsWe promote ourselves

1. Can we keep our Corporate Membership and other non-trail revenue? Yes stays with us2. Does RCATV still own our trail agreements (OFATV trail)? Yes, they remain managed by

club3. Who absorbs the $25 loyalty program? Across all % in the trail permit breakdown4. Family passes / group passes? Not online, full-price for 1st two and $100 thereafter5. What about our multi-use non-ATV passes? OFATV is ATV only trail passes. RCATV would

still need to do a trail pass for multi-use. Non-ATV wouldn’t have the reciprocal benefits 6. Online trail passes only? We can still have trail pass books with vendors – loyalty discount

can only be done online7. Membership online database? OFATV database allows members to get updates and renewal

notices, Board can access the database and access reports.8. How involved is OFATV with safety and provincial issues? They have 2 board positions on

the AQCC Board, Cdn Off-Highway and other powersports working groups and Ontario Trails Council as the recognized provincial federation. Provincial and Federal grants come through OFATV to their clubs.

9. How do we not get lost under OFATV with some of our own initiatives to meet ridership? We can still move our interests forward and sit on committees, work with other clubs as long as they don’t contravene OFATV mandate and values

1. How do you manage the costs of your own trail passes? Outsource % of trail pass revenue to a municipal partner to handle trail pass and membership database purchased by KATVA.

2. Would KATVA/HATVA be willing to increase their trail pass costs for the value of reciprocals? Yes if RCATV chooses to remain independent they would take the matter to their boards for reciprocals at $120 annual pass (they increase from $110)

3. Would there be an exchange of funds between the clubs with the reciprocal? No, each club is their own corporation. There are partnerships that can be done for things like tourism, advertising, trade shows etc.

4. Family passes / group passes? $220 for up to 5 machines in the same family5. What about our multi-use non-ATV passes? Trails are multi-use but trail passes are ATV only,

other trail users have their own passes or support their trails in other ways. 6. How do you do your online trail passes? Website with online purchasing. Also available at

municipal tourism partners. (KATVA provided contacts and costs for their trail pass stickers and books).

7. How involved is KATVA with safety? They have a team of CASI instructors willing to mentor and support. KATVA was on the AQCC Board and is looking to re-establish that role.

8. How can we benefit from KATVA established provincial connections? KATVA on the board of Ontario Trails Council, and recognized as a leader in Ontario ATV industry. Great partnerships with their county and municipal leaders.