THE CORPORATION OF THE CITY OF FERNIE Resort Development Strategy Advisory Working Group held at 9:00 AM on Tuesday, July 25, 2017 Council Chambers at City Hall, 501-3rd Avenue, Fernie, B.C. AGENDA Page . 1. CALL TO ORDER . 2. APPROVAL OF AGENDA AND LATE ITEMS . 3. ADOPTION OF MINUTES . 2 - 4 3.1 Minutes of the Resort Development Strategy Advisory Working Group meeting of June 27, 2017 for adoption. 2017-06-27 Minutes . 4. BUSINESS . 5 - 7 4.1 Winter Shuttle Program Update Local Shuttle 17-18 Projections 2017-2018 Fernie Ski Shuttle Schedule . 8 - 10 4.2 Projects Update 2017 Fernie Quarterly Report 2017 Q2 . 11 - 95 4.3 RMI Collaborative Update MayorsReportExecutiveSummaryHighlightsSept24 MayorsReportResort Municipality InitiativeSept24 . 5. NEXT AWG MEETING . 5.1 Next AWG meeting Tuesday, August 29, 2017 . 6. ADJOURNMENT .THE CORPORATION OF THE CITY OF FERNIE Minutes of a Resort Development Strategy Advisory Working Group held at 9:00 AM on June 27, 2017 in the Council Chamber at City Hall, 501-3rd Avenue, Fernie, BC. PRESENT REGRETS Courtney Baker Community at Large Tracey Kelly Leisure Services Advisory Board Derick Berry Fernie Central Reservation Shawn Tomlin RDEK (Non-Voting) Patty Vadnais Fernie Chamber of Commerce Jon Levesque Council Liaison (Non- Voting) Jikke Gyorki Tourism Fernie Julie Kelly Fernie Trails Alliance Louise Hilliard Fernie and District Arts Council Andy Cohen Fernie Alpine Resort Norm McInnis Chief Administrative Officer Suzanne Garand Corporate Officer Mayor Giuliano Ex-Officio (Non-Voting) CALL TO ORDER The Chief Administrative Officer called the meeting to order at 9:02AM. APPROVAL OF AGENDA AND Moved by Derick Berry LATE ITEMS THAT the Agenda of the June 27, 2017 Resort Development Strategy Advisory Working Group be adopted. CARRIED ADOPTION OF MINUTES Moved by Patty Vadnais THAT the minutes of the Resort Development Strategy Advisory Working Group meeting of May 30, 2017 be adopted. CARRIED The Chief Administrative Officer confirmed that AWG’s recommendation to allocate $100,000 from Gateway Signage to capital purchase of 2 -24 passenger buses was approved. The recommendation to allocate funds to a Tourism Master Plan was not approved by the province. DELEGATIONS Mr. Barrington provided a summary of the progress by the task force to Update - Winter Shuttle Task develop the workplan for the Winter Shuttle Service and responded to Force questions of the committee. He explained the intent is to have two separate funding streams – one for capital assets and one for Minutes of a Resort Development Strategy Advisory Working Group held June 27, 2017 operations. Depreciation could be funded annually in the order of 20% which after 2 years could be used to purchase more equipment. City of Fernie will be owner of the buses and contribute to ongoing maintenance but not committed to the operational costs. Fernie Alpine Resort will also contribute to maintenance. Key assumptions: • $34,000 operating cost • Depreciation $12,000 annually each bus • Operational costs to be reviewed • Driver $11 hour (estimated) • Total operating cost estimated $31/hour Currently a projected shortfall of approximately $33,000 in operating but includes $24,000 sinking fund for depreciation. Capital shortfall is $20,000. If buses can be purchased for less than $100,000 (at $80,000) the remaining $20,000 capital budget could be allocated to the sinking fund. The independent task force that would be responsible for the entire program would include one member/group managing the capital budget who is experienced in raising capital, managing sinking funds and building community partnerships and the other member/group managing the operational budget and familiar with scheduling, customer service and able to ensure operational shortfalls are covered. The AWG discussed the potential for the City to manage the capital side and benefactors contributing $7500 annually plus a potential corporate sponsorship to cover the operating shortfall. The program estimated costs are based on operating 20 hours day at $3.50 / ride. AWG members noted: • Low rate used to calculate the driver wages • Assumption that benefactors could contribute $7500/annually • City contribution of $24,000/annually to sinking fund • Tourism Fernie is also a contributor to the shuttle service The AWG agreed that a subcommittee including members from the Chamber, Tourism Fernie, Fernie Alpine Resort and the City be struck to continue work on this project. Resolution Moved by Derick Berry THAT the Winter Shuttle Subcommittee work to refine the proposal, schedule, stakeholder engagement, marketing. CARRIED Minutes of a Resort Development Strategy Advisory Working Group held June 27, 2017 Items 4.2 and 4.3 Deferred Next meeting Tuesday, July 25., 2017 at 9:00am in Council Chambers. ADJOURNMENT The Chief Administrative Office adjourned the meeting at 10:27AM. Norm McInnis, Chief Administrative Officer AWG Chair Suzanne Garand, Corporate Officer I hereby certify the foregoing to be the correct Minutes of a Resort Development Strategy Advisory Working Group held June 27, 2017 Updated Financial Projection COSTS Capital Cost of Two 24-Passenger Buses $ 100,000.00 17-18 Season Operational Costs $ 55,575.00 TOTAL Costs for 17-18 Season $ 155,575.00 REVENUES Shortfall = $ 20,575.00 Capital RMI Funds for bus purchases $ 100,000.00 Rider Fare Projected Revenues $ 35,000.00 Sponsorship Revenues $ - Fares $3.50 one-way. Special fares for families/10 punch card/season pass Sector Funding Support $ - Kids 5 & under ride free with paying adult TOTAL Revenues for 17-18 Season $ 135,000.00 Operational Cost Projections Annual insurance x 2 buses $ 2,400.00 204km per day for 1 bus operating full schedule Annual inspection x 2 buses $ 400.00 110 days of full operation (Dec 20 - Apr 8th) Fuel for 29,000km $ 10,000.00 Drivers operating hours: 16 hours/day for 1 bus operating full schedule. Estimating 30% use of bus #2 Driver wages at $13/hour, plus MERCS $ 31,975.00 16hrs x 110 days x 1.3 = 2,288 total operating hours ($13/hour plus 7.5% MERCS) Minor maintenance & tires $ 1,700.00 4 trips up in AM, 4 trips down in PM, 5 trips in evening = 13 return trips Administration & Marketing $ 1,600.00 Annual estimated kms based on 1.3 buses operating = 29,000 Contingency $ 7,500.00 $ 55,575.00 Fuel cost $1.10/litre. 3.2km/litre of fuel Depreciation per vehicle $ 12,000.00 2017-2018 Fernie Ski Shuttle Schedule Daily operations from December 20, 2017 – April 8, 2018 (110 days) Morning Service to Fernie Alpine Resort Lot #1 Guest Services Pick Up Location Departure Time (shuttle will not leave earlier than these times) Fernie Alpine Resort n/a 8:45 9:45 10:45 Lot 1 Gearhub/Downtown 8:00 9:00 10:00 11:00 901 Fernie/Downtown 8:03 9:03 10:03 11:03 Best Western 8:08 9:08 10:08 11:08 Snow Valley Motel 8:10 9:10 10:10 11:10 Raging Elk Hostel 8:13 9:13 10:13 11:13 Park Place Lodge 8:15 9:15 10:15 11:15 Super 8 8:20 9:20 10:20 11:20 Stanford 8:24 9:24 10:24 11:24 Timberline Lodge 8:30 ARRIVAL TIME AT 8:35 9:35 10:35 11:35 Fernie Alpine Resort Lot 1/Main Village Afternoon Service to Town Pick Up Location Departure Time (shuttle will not leave earlier than these times) Fernie Alpine Resort 1:30 2:30 3:30 4:30 Lot 1 Timberline 1:33 2:33 3:33 4:33 Stanford 1:38 2:38 3:38 4:38 Super 8 1:42 2:42 3:42 4:42 Park Place Lodge 1:47 2:47 3:47 4:47 Raging Elk Hostel 1:50 2:50 3:50 4:50 Snow Valley Motel 1:53 2:53 3:53 4:53 Best Western 1:57 2:57 3:57 4:57 901 Fernie/Downtown 2:00 3:00 4:00 5:00 Gearhub/Downtown 2:05 3:05 4:05 5:05 ARRIVAL TIME AT 2:15 3:15 4:15 5:15 Fernie Alpine Resort Lot 1/Main Village Evening Service The primary purpose of the evening shuttle is to bring people from the resort down to town for dinner and nightlife. Shuttle Stop Departure Time (shuttle will not leave earlier than these times) Snow Creek Lodge 5:30 6:15 7:00 7:45 8:30 9:15 Lizard Creek Lodge 5:33 6:18 7:03 7:48 8:33 9:18 Fernie Alpine 5:38 6:23 7:08 7:53 8:38 9:23 Resort’s Mountain Pantry Timberline 5:41 6:26 7:11 7:56 8:41 9:26 Stanford 5:47 6:32 7:17 8:02 8:47 9:32 Super 8 5:50 6:35 7:20 8:05 8:50 9:35 Historic Downtown 5:57 6:42 7:27 8:12 8:57 9:42 Park Place 6:00 6:45 7:30 8:15 9:00 9:45 Lodge/Hwy Super 8 n/a n/a n/a n/a n/a 9:50 (drop off only, no pick up) Stanford n/a n/a n/a n/a n/a 9:53 (drop off only, no pick up) Timberline n/a n/a n/a n/a n/a 9:58 (drop off only, no pick up) Fernie Alpine n/a n/a n/a n/a n/a 10:00 Resort’s Mountain (drop off only Pantry no pick up) Lizard Creek Lodge n/a n/a n/a n/a n/a 10:05 (drop off only no pick up) Snow Creek Lodge n/a n/a n/a n/a n/a 10:08 (drop off only no pick up, last stop of the day) Resort Municipality ‐ Financial Reporting 2017 Total COF Jan.