1 Project 1: Club AffiliationOFATV/EOTA Project 1: Club Affiliation

2 Project 1: OFATV/EOTA affiliationAttended OFATV AGM as guests, June 2016 Attended EOTA ATV Club Executives Working Group, October 2016 Project leads have at least 10 meetings and conference calls with EOTA and OFATV Conference calls and conversations with presidents of 4 other OFATV Clubs Conference call with Northumberland Club President, Feb 2017 EOTA and OFATV conference call with Executive, March 2017 Board Meeting Discussion, March Board Consultation as required March 2017 Presentation to Membership April 7, 2017

3 Considerations Trail Pass Revenue Trail Leveling Fund vs Grant SupportMembership Management Marketing & Promotion Moving the Sport Forward CP Rail Corridor (Ottawa Valley Recreation Trail) Membership Benefits Multi-use vs ATV use RCATV ability to enact change

4 representation OFATV and EOTA Trail Permit is $132.74 ($150 after tax)OFATV is a federation of ATV Clubs, $ towards ATV clubs and the sustainability of the sport in Ontario. OFATV is recognized as the Provincial Federation by major stakeholders: COHV, NTC, MTO, TIO 2 new clubs and 248 members in 2015 2 new clubs and 798 members in 2016 OFATV works predominantly with industry and trail organizations Working committee member of PMSWG Power Motor Sports Working Group EOTA is a multi-use trail system management organization representing all trail users, all money goes to the management of development of trails EOTA has 5 clubs, has lost 1 club to OFATV in 2016 EOTA works predominantly with government organizations, municipalities and trail organizations Works with NTC, MTO, TIO and on working committee of PMSWG

5 STRUCTURE OFATV EOTA Each club is entitled to 2 voting delegatesClubs are organized into 11 Districts Each district has two Board members (Director and Alternate) Each Director has a vote on the OFATV Board Executive members are elected from the Board every 2 years All voting members at all levels are members, own ATVs and are ATV enthusiasts RCATVC is in District 6, which currently has no OFATV clubs Each club has 2 executives at the EOTA ATV Working Committee Board is made up of municipalities where EOTA trails exist (not Renfrew County currently), and one OFSC Rep, and will be one ATV Rep Clubs are autonomous organizations who run their own programs and priorities. EOTA is primarily a source of funding, promotion of multi-use trails provincially and northern US, negotiates insurance

6 OFATV PERMIT BREAKDOWNClub Receives: $65 plus trail leveling Pass Revenue: 43% Trail Leveling: % of trail leveling fund dependent on members/km’s of each club OFATV Receives: $85 pays out trail levelling Pays Trail Leveling Fund: 15% Pays HST: 13% Pays Insurance: 10% ($15M) Pays shipping: .02% Pays OFATV expenses: 19%

7 EOTA PERMIT BREAKDOWN Club Receives: $120 EOTA Receives: $30Pass Revenue: 62% Pays HST: 13% ** Pays Insurance: 5% ($5M) ** Club receives some HST back in ITC Credits EOTA Receives: $30 Pays EOTA expenses: 20% * 2016 EOTA contributed 35% towards insurance

8 Expense BREAKDOWN Clubs pays for : OFATV pays for: Clubs pays for :EOTA Clubs pays for : Board Expenses Trail Maintenance Maps Events Signage Online Trail Pass mailing OFATV pays for: Staff expenses Major Tradeshows HST Insurance OFATV Marketing Clubs pays for : Board Expenses Trail Maintenance Events HST *gets back Insurance * EOTA contributed Signage EOTA pays for: Staff expenses Major Tradeshows Trail Pass mailing Maps EOTA Marketing

9 OFATV Trail Leveling Case 150 members, 440km Rate of payout was $67/km of trail Adding RCATVC to the pool with 150 members would have increased the pool by $3,384 (150 x $22.56) Assuming RCATVC claimed 440km of trail, the per km payout would have dropped to $43.88/km from $67/km RCATVC would have been paid $19,323 from the Trail Revenue Leveling Fund $22.56 per permit goes into the revenue leveling “pool” Funds are paid out to each club based on % of provincial total km of trail Requires an annual internal independent trail verification audit Pool is zeroed each year and starts over Clubs with groomed winter trails receive a bonus on the kms they submit $ only for maintained trails with agreements signed Crown land signed and maintained currently being considered at a different rate of payout Roads and non-maintained trails, or trails without a signed agreement would not be included

10 Trail Leveling FUND BENEFITS RISK $ go to Clubs with trail; for trail maintenance, not just based on membership Acceptance of crown land is being discussed at OFATV Potential to have greater pay out than $22.56 per member that was put into the fund. As clubs come on board with more trails, the $ received goes down Fund paid out in Feb of the following year so clubs must manage with just $65 trail pass revenue/member until leveling fund comes in Crown land may be paid out differently (clubs with high crown go into a separate fund) results in decrease of funds OFATV cautions generally the trail audit comes back with less eligible km than the club submits for

11 2015 Case Study - 150 MBrs, 440km OFATV EOTA$9,750 in Membership dollars $19,323 in Trail Revenue Leveling $2,589 HST paid by OFATV $2,345 in insurance paid by OFATV Club receives $29,073 for the year ** If leveling fund drops to $22.56 (due to more clubs with lots of land, or crown land) club pays $3,384 into fund, receives $9, with total of $19,676) $18,000 in Membership dollars Less $2589 HST paid by Club less $2510 insurance paid by Club Club Receives $12,901 for the year ** Club receives grant donations as requested when $ avail from EOTA 2016 $838 ($5.59 per member) insurance pd by EOTA Some HST costs come back in ITC

12 Trail Revenue - Other ScenariosOFATV EOTA With 250 members and 440 km of trails $20,219 from Trail Revenue Leveling $16,250 in memberships $36,469 total to club for the year With 150 members and 300 km of trails $15,080 from Trail Revenue Leveling $9,750 in memberships $24,830 total to club for the year With 250 members and 300 km of trails $15,780 from Trail Revenue Leveling $32,030 total to club for the year With 250 members and 440 km of trails $30,000 membership Less $3010 insurance, $4315 taxes $22,675 total to club for the year With 150 members and 300 km of trails $18,000 in memberships Less $1950 insurance, $2589 taxes $13,461 total to club for the year With 250 members and 300 km of trails $30,000 in membership Less $2450 insurance, $4315 taxes $23,235 total to club for the year

13 Grant Support Grants are up to each club, there have been grants in the past through National Trails Council, they are rare $33, in trails in our area since December 2014 $21, between 2007 until Dec for a total $54,642.14 EOTA has written a grant to help in marketing and promoting of existing events and 3 new events and will know be the end of March Accesses grants from municipalities, province and other not for profit at request of club

14 Membership ManagementOnline: OFATV Database Member gets temp pass to print and welcome letter from club Club gets to login and assign pass Club mails pass, map at own cost Member gets auto-renewal notice 3 weeks before expiration Trail portion of revenue to club 2 weeks Club generates report and puts s into constant contact In person: Club picks up passes, enters into OFATV Database, submits all $ to OFATV, who returns $ in next revenue cycle Online: EOTA Database Member gets temp pass to print EOTA mails pass Club receives paper copy of pass and map. Club enters into own database Club manages renewal notices based on database Club portion received by EOTA Club enters into constant contact In person: Club picks up passes, enters into Club trails database, membership database and constant contact, submits EOTA portion only to EOTA

15 Marketing & Promotion Promotes federation and supports clubsPays for booth space at 4 major events annually, clubs only pay volunteer expenses, maps Provides a template for maps Maps at club cost Signs at club cost Local booths at club cost Website and other marketing at club cost Supports at briefings Promotes alliance and supports clubs Pays for space at major events (has offered to assist and pay for our booths in Ottawa and one in Renfrew County) Pays for and distributes EOTA maps with club trails Local maps at club cost Signs at club cost Website and other marketing at club cost Briefings done by club

16 ATV Advocacy Trail warden program CASI ATV safety programHas 2 reps on AQCC (Canadian all- terrain council) Rep on National Trails Council Rep on Power Sports Working Group Active with MTO for changes to legislation and by-laws Active with local municipalities for changes to by-laws and ATV access Partners with OPP and pays contractors for maintenance of own trails Rep on National Trails Council Rep on Power Sports Working Group Active with Province of Ontario and Tourism Ontario Active with local municipalities for multi-use trail management

17 Upcoming changes: risksOFATV voting on loyalty initiative where members can renew trail pass for $125 vice $150 (cost spread across all percentages of the trail revenue breakdown). While RCATV agrees with the change, for long-term revenue generation, if EOTA does not follow suit it could mean members purchase OFATV passes and ride our trails Leveling fund not constant. If OFATV continues to include northern clubs like Thunder Bay, Timmins with abundance of crown land and no members, will significantly drop the leveling fund. If EOTA gets rail corridor management contract, and we are OFATV, they could sell their own passes providing competition for membership (like Lanark County)

18 Upcoming changes: potentialMoving to OFATV before AGM would allow RCATV to have 2 delegates at the AGM for input into the changes Allows 2 delegates at OFATV to help move the sport of ATV, especially when it is likely OFATV will become the provincial body EOTA has agreed to become an affiliate member of OFATV EOTA has agreed to allow an ATV representative on the EOTA board

19 From OFATV “ Bottom line is EOTA is not going away, but should be managing trails, not clubs. They do a great job of funding trails but don’t excel when it comes to support the sport or the clubs. I see the EOTA/OFATV relationship being more like the EOTA/OFSC relationship in the future. ATVing in Ontario needs to be lead by a board of ATVers, not a board of municipal counsellors. One is in the interest of ATV’s, the other is in the interest of tourism. The current appetite is that these two things are mostly aligned, but that will not always be the case.”

20 From EOTA “I will discuss with the EOTA board March 9 about adding an appointed member from the EOTA ATV advisory committee. I know because of the growth of ATVs they will allow it. EOTA will become a member of OFATV as suggested by RCATV. EOTA will work with Renfrew County and your group on the continued development trails. EOTA continues to work with provincial and federal governments to seek funding to assist us all in Trail development, management, maintenance and marketing trails. Trail Tourism is working and growing the opportunities for trails and is an important part of the rural economy and job creation.”

21 Action/Project Review – COLLEEN next meetings - teresaMotion to Adjourn Executive Committee : Budget & AGM Prep ____________________ Directors Meeting: ______________ Rally in the Valley Planning Committee: ___________ B101 Planning Committee: _______________ Trails Committee: ___________________