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1 THE CORPORATION OF THE CITY OF VERNON TOURISM ADVISORY COMMITTEE MEETING WEDNESDAY, FEBRUARY 15, 2017 OKANAGAN LAKE ROOM 3:00 p.m. A G E N D A - REVISED 1. ADOPTION OF AGENDA 2. ADOPTION OF MINUTES a) January 18, 2017 (attached) 3. PRESENTATION a) MainStage Theatre BC Presentation MainStage Theatre BC Council Resolution from Jan. 23, 2017 meeting (attached) 4. UNFINISHED BUSINESS a) 3% Application process - update b) Biking Community Workshop c) Winter Campaign Update d) CTV Winter Wellness with Sparkling Hill Resort e) Visitor Guide and Sales Update 5. NEW BUSINESS: a) Endorsement of the Tourism Vernon Marketing Plan and Budget (attached) b) Tourism Vernon App will launch in April 2017 c) Renewal for the Destination BC Visitor Network Agreement for 2017 d) Lake Access Site request for community/stakeholder input e) Request for Letter of Support creation of Silver Star Resort Association (background info attached) 6. INFORMATION ITEMS: a) Accommodation Tracking (attached) b) Visitor Info Centre Statistics (attached) c) Municipal Reg. District Tax Update (attached) d) Media: Tracking: i Summary Upcoming Hosting: i. Margaux Lushing March 5 VegNews focus on wellness and food

2 Tourism Advisory Committee Agenda Page February 15, 2017 ii. Joanne Sasvari spring or fall unique cocktails and libations iii. Crai Bower Spring mountain biking family iv. Max Hartshone from GONOMADs.com destination feature pending dates v. Nick Rockel BC Business feature on Vernon as follow up to Best Cities to work in BC Vernon was listed as #22 vi. May Media FAM Articles: i. Expedia.ca - 17 Canadian Cities to Visit in 2017 ii. Snowbest.com - SilverStar the mountain, I almost forgot - by Rachael Oakes-Ash iii. Snowseekers.com Mining for the group stash at SilverStar Mountain Resort - iv. National Post Good eats in Vernon before you hit that champagne powder get something good in your stomach by Gord Scott v. Via Rail Blog Celebrating Canada 150 West - by Lucas Ackroyd vi. Avenue Calgary 4 Places for a Great Cross Country Ski - by Joanne Elves Upcoming Media Dinners: i. Seattle on March 2 ii. Edmonton on March 9 iii. Calgary on March 23 iv. Vancouver in early May TBC v. Spokane in early May - TBC vi. Toronto in late September TBC vii. Montreal in early October TBC e) Media Shows: Travel & Word April in Salem, Oregon Travel Media Association of Canada Quebec City, Quebec Go Media Canada October 1 5 in Halifax, Nova Scotia f) Consumer Shows: Seattle Golf Show March 3 5 Edmonton Golf Show March Calgary Golf Show March g) Travel Trade: Canada s West Marketplace h) Conferences/Hosting: 7. NEXT MEETING: The next meeting of the Tourism Advisory Committee is tentatively scheduled for Wednesday, March 15, ADJOURNMENT

3 THE CORPORATION OF THE CITY OF VERNON MINUTES OF TOURISM ADVISORY COMMITTEE MEETING HELD WEDNESDAY, JANUARY 18, 2017 OKANAGAN LAKE ROOM PRESENT: VOTING: Mike Smallenberg, Vernon Express Aaron Deans, Allan Brooks Nature Centre Alex Reed, Predator Ridge Resort Jacqueline Birk, Sparkling Hills Resort Christine Kashuba, Greater Vernon Cultural Advisory Kari Wilton, Community at Large Claus Larsen, Best Western Pacific Inn & Suites Lara Konkin, Downtown Vernon Association Matthew Ball, North Okanagan Cycling Society Raj Sood, Super 8 Vernon Tanis Black, Silver Star Mountain Resort NON-VOTING: Mayor Mund GUEST: ABSENT: STAFF: Gladys Fraser, Vice President and Director Friend of the Games, Vernon and Area BC Games Kevin O Brien, Kalavida Surf Shop Dan Rogers, Greater Vernon Chamber of Commerce Kevin Poole, Manager, Economic Development & Tourism Janice Nicol, Legislative Committee Clerk WELCOME TO NEW MEMBERS New and returning Committee members were welcomed. ELECTION OF CHAIR The Legislative Committee Clerk called the meeting to order at 8:00 a.m. and called a first time for nominations for the position of Committee Chair for Claus Larsen was nominated. A second and third call was made for nominations. Moved by Aaron Deans, seconded by Mark Ball: 1

4 TOURISM ADVISORY COMMITTEE MINUTES JANUARY 18, 2017 THAT Claus Larsen be elected Chair of the Tourism Advisory Committee for CARRIED. ELECTION OF VICE- CHAIR The Chair called a first time for nominations for position of Committee Vice-Chair for Mike Smallenberg was nominated and respectfully declined. A second and third call was made for nominations. ELECTION OF VICE- CHAIR Moved by Aaron Deans, seconded by Mark Bell: THAT Mike Smallenberg be elected Vice-Chair of the Tourism Advisory Committee for CARRIED. ADOPTION OF AGENDA Moved by Lara Konkin, seconded by Aaron Deans: THAT the agenda for Wednesday, January 18, 2017 Tourism Advisory Committee meeting be adopted. CARRIED. ADOPTION OF MINUTES Moved by Lara Konkin, seconded by Mike Smallenberg: THAT the minutes of the Tourism Advisory Committee meeting held Wednesday, December 21, 2016 be adopted. CARRIED. REVIEW OF TERMS OF REFERENCE AND BULLYING AND HARASSMENT POLICY The Committee reviewed the Tourism Advisory Terms of Reference and the Bullying and Harassment Policy. Tanis Black entered the meeting at 8:12 a.m. PRESENTATION Gladys Fraser of the B.C. Seniors Games Society gave a presentation on the 55+ Games. The following points were noted: Hosting the Seniors Games provides an exciting opportunity for Vernon; 2

5 TOURISM ADVISORY COMMITTEE MINUTES JANUARY 18, 2017 It s the 30 th Anniversary of the Games, the first Games were also held in Vernon; Anticipating 3,500 participants, could be up to 4,000; Games will add value to tourism related business in fall; Events are to occur in Armstrong as well as Vernon; Focus is to host a high-caliber event; Key item is to create a North Okanagan experience for participants with an aim for them to return; Expected impact will be 2.1 million dollars, although amount could be more if there are longer stays; The Games Society is asking for Tourism Advisory Committee support with tourism related events; The Society has examined costs in detail, needs vs. wants; Budget - total cash expenditure or $398,210 plus gifts in kind $147,700; Tourism related expenses: $89,650 excluding gifts in kind of $48,000. Budget broken down as follows: o Promotions - $31,250 (advertising, souvenir program, participant packages, maps, games poster) o Protocol - $12,050 (medals holders, host stations, community awareness/host training, VIP packages) o Special Events - $26,750 (Okanagan hosted evening, Games Village promotion) o Ceremonies - $4,600 (Torchlighting Ceremony, banners, programs) o Registration/Results - $15,000 (7500 lanyards, accreditation badges) Currently have community support and are working hard to build the rest of their budget; Events plan include hosting participants and partners Taste of Okanagan Event ; There is a desire to work with Downtown Vernon Association and will draw in any tourism related business that would be interested in being featured at the event; It is expected entry fees will generate approximately $145,000; Sponsor packages are now going out, Telus is a major sponsor providing all communication. Other sponsors are interested but not confirmed to date; Support has been requested from other jurisdictions (Armstrong, Township of Spallumcheen and Greater Vernon); Requesting $75, from Tourism It was suggested that there could be a B.C. Seniors Games mountain bike route as a legacy, similarly a running route, etc. 3

6 TOURISM ADVISORY COMMITTEE MINUTES JANUARY 18, 2017 It was also suggested that a Tourism Vernon link be added to the B.C. Seniors Games Society website. Moved by Jacqueline Birk, seconded by Lara Konkin: THAT the Tourism Advisory Committee approve a Cooperative Marketing Funds Grant to the Vernon & Area Games Society in the amount of $25,000 for promotion of the 55+ B.C. Games to be held in Vernon September 12 16, AND FURTHER that the Vernon & Area Games Society come back to the Tourism Advisory Committee four months prior to the Games, to provide an update on sponsorship, detailed budget figures and to investigate the need for further grant money from the Tourism Advisory Committee. AND FURTHER that Claus Larsen and Alex Reed represent the Tourism Advisory Committee to participate and support the Taste of the Okanagan event. CARRIED. UNFINISHED BUSINESS: 3% APPLICATION PROCESS UPDATE The Manager, Economic Development and Tourism provided an update on the process of increasing the Municipal Regional District Tax from 2% to 3%. The following points were noted: The next step is to bring increase before Council, which involves preparing a new bylaw; Should Council proceed with increase, the proposed start date would be January 2018; This proposed timeline will alter budget figures for 2017 and there may be a need to utilize reserve funds. ROGERS HOMETOWN HOCKEY BIKING COMMUNITY WORKSHOP An update provided on the upcoming events for Hometown Hockey A draft action plan will be presented by Destination Think! on January 24,

7 TOURISM ADVISORY COMMITTEE MINUTES JANUARY 18, 2017 WINTER CAMPAIGN UPDATE VISITOR GUIDE AND SALES UPDATE Individual hotel digital ads were launched on January 3 on Facebook. The commercial is on hold until after CTV Winter Wellness Campaign is over in early February. A copy is currently being written, the first draft was available on January 9 for review. More information to follow at the next meeting. NEW BUSINESS WINTER WELLNESS CAMPAIGN BUDGET FROM RESERVE This has been undertaken in partnership with Sparkling Hill Resort and was launched on January 16. The digital campaign runs from January 16 to the 19 with the kinesiologist from Sparkling Hill promoting Tourism Vernon on CTV. As outlined above, the timeline for the increase in the Hotel Tax is tentatively January This proposed timeline will alter budget figures for 2017 and there may be a need to utilize reserve funds to finish this year. INFORMATION ITEMS: ACCOMMODATION TRACKING VISITOR INFO CENTRE STATISTICS MUNICIPAL & REGIONAL DISTRICT TAX (MRDT) UPDATE repectfest MEDIA/CONFERENCES RESPECTFEST The Committee reviewed the statistics attached to the agenda. The spreadsheet provided in the agenda package details how many visitors attended the Visitor s Centre, per month. The Committee reviewed the statistics attached to the agenda for the Municipal & Regional District Tax. Happening after senior games sept Funds from government will be promotional material in seniors games packages to encourage longer stays. Suggestion to request media promote RespectFest as well as Seniors Games. The Committee reviewed various media information including events, conferences, hosting opportunities and articles that are upcoming. A variety of celebratory and educations public events will be held through Vernon September (directly following the B.C. Seniors Games). Funds from government grants will be used for promotional materials in the B.C. Games delegate packages to encourage longer stays. 5

8 TOURISM ADVISORY COMMITTEE MINUTES JANUARY 18, 2017 Suggestion to request the media covering the B.C. Games to also promote RespectFest. DATE AND TIME OF NEXT MEETING ADJOURNMENT The next meeting of the Tourism Advisory Committee is scheduled for Wednesday, February 15, 2017 at 8:00 a.m. in the Okanagan Lake Room. The Tourism Advisory Committee meeting adjourned at 9:23 a.m. CERTIFIED CORRECT: Chair 6

9 Council Resolution from the January 23, 2017 Regular meeting: THAT Council receive for information the presentation made by Ms. Adele Kuyek, Theatre BC Mainstage 2017 Chair and Vice-President of Theatre BC, at its Regular Meeting of January 9, 2017; AND AND FURTHER, that Council refer the request for funding made by Theatre BC Mainstage 2017 to the Tourism Advisory Committee for review and consideration. CARRIED. THAT should the Tourism Advisory Committee not support the request for funding made by Theatre BC Mainstage 2017, that this request be referred back to Council for consideration. CARRIED.

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26 DATE RANGE: January PHONE CALLS AB MB BC ON SK USA UK Local Europe Other Total Toll Free Regular s Packages TOTAL 150 *Some calls may have more than one inquiry TOLL FREE INFORMATION VISITORS 2017 % Change over 2016 Requested Total Regular Source Total TF Total Parties % Increase Phone Number Website Tour 13 Total Visitors %Increase Event/Attraction 10 Website Other Relocation 6 Print 3 ORGANIZATIONS ASSISTED Silver Star 3 Repeat Visits 3 Name of Group Assistance Provided Roads Other (Word of mouth) 1 Ad Sales Completion Feb Services Media Launch Carnival Staff Attended Accommodation 1 Queens Silver Star Packages 63 Packages TOTAL 20 Total 20 Hockey Packages 50 Minor Hockey REGULAR CALL LINE Hometown Hockey Tourism Booth set up & staffed Requested Total Regular Source Total Virus Management Working with IT Virus Jan 21 Phone Number 4 Website Tour 26 Tourism Float Ongoing Work Event/Attraction 29 Website Other Museum Meetings Carnival Float Partnership Relocation 2 Print 15 Publisher Training Staff Training Silver Star 12 Repeat Visits 9 Roads Other (Word of mouth) 23 Services 26 Stakeholder Accommodation TOTAL 73 TOTAL 73

27 WEBSITE VISITS Facebook Monday Tuesday WednesdayThursday Friday Saturday Sunday 0 Klout = 62 Organic Paid Day Mon Tue Wed Thur Fri Sat Sun Totals Tourism Vernon Twitter Activity Twitter Followers 3384 Increase of 49 WEBSITE TRAFFIC Organic % Referring Sites 749 7% Direct Traffic % Social % Total Visits MAIL OUTS SENT INQUIRIES Totals s Sent Relocation 3 All from the website Info Pkg 5 Accommodation Camping Advert Pack Vernon Information Requests 5 TOTAL 8 Other 3

28 Visitor Services Network Statistics Program Year Over Year Report 2017 VERNON Start Date: End Date: Parties Per Hour January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % -0.7% % % % % % % % % % % % % -66.8% Total Hours January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % -67.2% % % % % % % % % % % % % -93.1% , Total Parties January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % -67.4% % % % % % % % % % % % % -97.7% ,367 2,790 1,928 1,913 1,416 5, ,237 9,981 Total Parties-Event/Roaming January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % % % % % % -87.6% Total Visitors January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % -68.4% % % % % % % % % % % % % -98.2% , ,536 2,220 4,493 3,672 3,787 2,450 9,909 1, ,958 17,365 Total Visitor-Event/Roaming January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change % % % % % % % % -88.6% ,420 Total Buses January February March Q1 Total April May June Q2 Total July August September Q3 Total October November December Q4 Total TOTAL % change

29 City of Vernon Municipal Regional District Tax (MRDT) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total % Change 2010 $ 14, $ 15, $ 29, $ 28, $ 57, $ 51, $ 37, $ 23, $ 15, $ 15, $ 286, $ 13, $ 16, $ 17, $ 21, $ 30, $ 36, $ 53, $ 55, $ 39, $ 28, $ 16, $ 16, $ 348, % 2012 $ 15, $ 22, $ 23, $ 25, $ 45, $ 32, $ 58, $ 65, $ 46, $ 30, $ 21, $ 19, $ 406, % 2013 $ 16, $ 23, $ 19, $ 40, $ 24, $ 57, $ 58, $ 75, $ 46, $ 28, $ 25, $ 22, $ 438, % 2014 $ 25, $ 26, $ 38, $ 35, $ 46, $ 60, $ 71, $ 89, $ 51, $ 34, $ 30, $ 25, $ 535, % 2015 $ 29, $ 31, $ 33, $ 32, $ 63, $ 84, $ 63, $ 95, $ 61, $ 62, $ 15, $ 43, $ 616, % 2016 $ 17, $ 42, $ 37, $ 53, $ 50, $ 70, $ 110, $ 116, $ 71, $ 48, $ 31, $ 651, % % Chg 15/ % 15.9% 13.6% 6.2% 38.3% 37.8% 11.8% 6.9% 19.7% 83.0% 49.4% 73.4% % Chg 16/ % 35.6% 11.8% 62.7% 20.9% 15.8% 75.2% 21.5% 16.3% 22.4% 109.0% $140, $120, $100, , 2014, 2015 and 2016 MRDT Monthly Revenues Year % Change 2016 YTD $ 651, % 2015 $ 616, % 2014 $ 535, % 2013 $ 438, % 2012 $ 406, % 2011 $ 348, $80, $60, $40, $20, $ Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

30 SILVER STAR MARKETING TASK FORCE NEWSLETTER 1 INTRODUCTION The Silver Star Marketing Task Force (Task Force) was established to explore alternative approaches to marketing the resort and to make recommendations for either changing the current approach or maintaining the status quo. A recommended option has been developed and is proceeding through the initial review process by the Province and Regional District of North Okanagan. See page 4 for more information about the review and approval process. on marketing, sales and events and Silver Star must find ways to do the same if it is to continue to be heard in the market place. Successful destinations work together to sell their destination. They recognize the strategic value in pooling resources in order to maximize their impact. Destination Marketing Organizations (in different forms) are located throughout BC. In December, once people have returned to Silver Star, a full public engagement program will be initiated with residents, home-owners, business owners and other stakeholders. Sign up for notices about the public engagement opportunities using the URL or QR code: This newsletter provides background information about the Task Force process and an overview of the recommended option: a Silver Star Resort Association. THE CURRENT SITUATION Silver Star is competing in an extremely competitive environment and we are falling behind our year round competitors. This competition is only going to increase over time. Competitors are spending more In response to this competitive environment, the Task Force was formed to evaluate alternative approaches to marketing the resort and to recommend a preferred approach. TASK FORCE MEMBERS The Task Force consists of nine members includes a broad representation of the Silver Star community with representatives from the residential community; the Silver Star Property Owners Association; and the retail, food and beverage, accommodation sectors; the mountain operator and the alternate Director for Area C of Regional District. Ross Foden, a full-time resident with no business affiliation, chairs the Task Force. Task Force member names and contact information can be found on the last page. 1 Building a Stronger Resort Community

31 SILVER STAR MARKETING TASK FORCE NEWSLETTER 1 SUMMER 2016 PROCESS OVERVIEW THE ALTERNATIVE MODELS CONSIDERED The Task Force has reviewed the marketing structure and funding sources for other successful destination marketing organizations and has reviewed different models including the existing Resort Area Management Program, a Business Improvement Area, a Resort Association and a Regional District Service. THE EVALUATION PROCESS In reviewing options for moving forward, the Task Force was guided by these five principles: Fairness and Equity; Value for money; Engaged decision making; Enhanced local autonomy; and Ease of Implementation. After the development of the guiding principles, the key steps in the Task Force process to evaluate the Presentations by Tourism Sun Peaks and the Regional District; The development of specific evaluation criteria; and A comparative analysis using the guiding principles and criteria. THE RECOMMENDED OPTION: A SILVER STAR RESORT ASSOCIATION CORE PURPOSE After the extensive evaluation process, the Task Force unanimously decided to explore further the formation of a Silver Star Resort Association (SSRA), with the core purpose being to enhance marketing/sales of the resort and increase brand awareness such that the Silver Star is seen and heard in the market place. Accountable to its members, the SSRA would focus on these key activities and provide incremental funding for them: Marketing and sales Research Communications Special event planning and execution Silver Star Mountain Resort will continue with its significant marketing and sales programs and event planning and execution. The Resort Association would work closely with Silver Star Mountain Resort to maximize value. models included: 2 Silver Star Building a Stronger Resort

32 SILVER STAR MARKETING TASK FORCE NEWSLETTER 1 SUMMER 2016 THE RESORT PROMOTION AREA It is proposed that the SSRA would responsible for marketing the Resort Promotion Area, which would mirror the current Silver Star Controlled Recreation Area. THE VALUE PROPOSITION The ultimate objective is to increase resort visitation. Attracting more visitors to Silver Star will help strengthen the local economy, provide resources for re-investment and enhance the vibrancy of the resort. By helping to increase resort visitation, the Resort Association will help to: 1. Maintain and Enhance the Silver Star Experience: Strong visitor numbers will enable continued investment in the Silver Star experience, infrastructure and amenities, including trails/runs, facilities, programs, etc. used by residents and visitors alike. 2. Enhance Resort Community Vibrancy Visitors help create the critical mass of people needed to keep programs viable and the resort community feeling lively and fun. 3. Enhance Property and Business Values A stronger local economy and more vibrant resort will help enhance and/or protect property and business values for the whole resort community. 4. Improve Business and Accommodation Success The viability of businesses, including both commercial and residential accommodation providers, is good for the owners themselves, and for residents and visitors who rely on and enjoy the amenities, products and services that are locally available. ADDITIONAL BENEFITS In addition to the primary objectives described above, the Resort Association will result in a number of other benefits: Provides a democratic and collective voice for the resort community Provides access to incremental funding opportunities like the Municipal and Regional District Tax, Tourism Co-op Programs (Provincial and Regional), Government 3 Silver Star Building a Stronger Resort

33 SILVER STAR MARKETING TASK FORCE NEWSLETTER 1 SUMMER 2016 Grant/Support Programs and Partnerships with local businesses Enables engaged decision-making by all members of the resort community Provides a lobby group that can advocate on behalf of the resort community with regional, provincial and federal governments Provides an added voice in support of resort community amenities and services BOARD OF DIRECTORS The proposed Board is comprised of eleven directors with sector representation as follows: Sector No. Residential 1 Residential Lodging 2 At Large 1 Hotel Lodging 2 Commercial/Tenant/Independent Operator 1 Single Owner Hotel Lodging 1 Silver Star Mountain Resort 2 Regional District of North Okanagan 1 MEMBERSHIP The proposed membership provides that Members of the Resort Association shall include each Owner of a Resort Lot within designated Resort Lands and the Silver Star Mountain Operator. Others who may apply to become a member include: owners of land, whose land is within the Resort Promotion Area, but not specified as Resort Land; non-resident business owners; occupier of a Resort Lot; and agents of owners of Resort Lots. PROPOSED RESORT LANDS The proposed Resort Lands mirror the Silver Star Official Community Plan boundaries. It is proposed that each sector, with the exception of directors from Silver Star Mountain Resort and the Regional District of North Okanagan, which are appointed by their organizations, elect their respective directors. If the Regional District decides not to appoint a director, the proposed Board of Directors would include two directors At Large. 4 Silver Star Building a Stronger Resort

34 SILVER STAR MARKETING TASK FORCE NEWSLETTER 1 APPROVAL PROCESS The approval process requires approval from the Province and the Regional District of North Okanagan, as well as property owners through a successful property owner petition. Please sign up for notices about the public engagement opportunities using the URL or QR code: Regional District Approval: The Regional District must approve both the resort promotion area and the resort association bylaws. Property Owner Petition: A valid property owner petition must have the support of the majority of the property owners representing at least one-half of the assessed value of the parcels within the designated Resort Lands. Provincial Approval: The Province must do three things: first, it must order the establishment of a resort promotion area; second, it must specify resort lands within the resort promotion area which will be subject to the levies of the resort association; and third, it must approve the bylaws of the association. STAKEHOLDER ENGAGEMENT A stakeholder engagement process will be initiated in December 2016 to gather input and to better gauge the level of support for the creation of a resort association. The engagement opportunities will include: a public open house, presentations to sector groups (Silver Star Property Owners Association, businesses, etc.) and an online survey. If stakeholders are generally supportive of the Silver Star Resort Association model, the Task Force will modify as necessary based on stakeholder input, and will then proceed with the property owner petition process. If there isn t general support, then the Task Force will go back to the drawing board! PROJECT CONTACTS For more information, please contact a Task Force member. Brian James, bjames1@shaw.ca Village Ski Sho p* Warren Burgess, wburgess@pinnacles.com Pinnacle Suite Hotels* Russell Haubrich, russell@vancecreekhotel.com Vance Creek Hotel* Gordon Baughen, gbaughen@capri.ca Long John s Pub* Ken Derpak, kderpak@skisilverstar.com Silver Star Mountain Resort* Ross Foden, rossfoden@gmail.com Property Owner/Resident Don Kassa, donkassa@donkassa.com Property Owner/Resident Denys Lawrence, silverdale@shaw.ca Silver Star Property Owners Association* Mike Randell, randell@shaw.ca RDNO Liaison* *Also a Resident or Property Owner 5 Building a Stronger Resort Community

35 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET INTRODUCTION This is the third newsletter from the Silver Star Task Force, which was established to explore alternative approaches to marketing the resort and creating a stronger resort community. A non-profit alternative was sought to the status quo; an alternative that would include all facets of the resort, from the residents to the lift company to the commercial interests. This newsletter responds to the input received from the community regarding the formation of a resort association, which the Task Force felt was the best alternative. The input received, in particular regarding the bylaws and assessments, has been carefully considered and adjustments are being proposed. The Task Force is keenly aware of the concern and trepidation with which the proposal has been met and has actively met with as many residents and businesses as possible, in order to clarify what is being proposed. Resorts like Sun Peaks and Whistler, where resort associations have been established, are able to lobby for and leverage opportunities and funding sources our competitors have been accessing for some time. They have access to additional funding like the Hotel Tax (Municipal and Regional District Tax), lottery funds and government grants. Some even gain access to or benefit from the Resort Municipality Initiative (RMI) through their local government. These types of funding are used to benefit the resort communities through the development and/or enhancement of festivals, events, village services, public art programs, trail development, village revitalization, museum upgrades, improved directional and interpretive signage, village shuttle services and many other useful initiatives and infrastructure. A resort association at Silver Star, with broad-based representation from the entire community, would be eligible for grants and other funding. The current for profit model, known as RAM, is not. A Silver Star Resort Association would give a vote to every property owner within the Resort Lands. By including all property owners, even those living abroad, along with all commercial interests and the lift company, a Silver Star Resort Association would represent all of Silver Star. This newsletter also includes background already mentioned in the two previous newsletters, along with detailed descriptions of board composition, budgets and bylaws. It is hoped the Silver Star Community will take the time to inform themselves of what is being proposed. The Task Force urges all Silver Star stakeholders to come out to the two upcoming open houses, to be held on January 21st and February 8th. Informal discussions will be held where questions can be asked and concerns will be considered by members of the Task Force. WHAT S IN THIS DOCUMENT? This document provides background information about the Task Force process and an in-depth look at the recommended option: a Silver Star Resort Association. It also summarizes stakeholder input appreciatively received to date please see What We ve Heard So Far. Introduction... 1 What We ve Heard So Far... 2 The Current Situation... 5 Process Overview... 6 Task Force Members... 6 The Alternative Models Considered... 6 The Evaluation Process... 6 The Recommended Option: A Resort Association... 7 Approval Process Upcoming Stakeholder Engagement A Brief History of RAM Task Force Bios Appendix A: Proposed Member Assessments Appendix B: Organization and Budget Backgrounder Building a Stronger Resort Community

36 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET WHAT WE VE HEARD SO FAR Stakeholder input is extremely important to this process. It has already helped shape the proposed resort association and will continue to inform the process moving forward. The Task Force has received input through a number of channels (see next paragraph) concerning the draft Silver Star Resort Association Bylaw. Although the draft Silver Star Resort Association Bylaw (available online at goo.gl/8qyzze) is generally consistent with bylaws in place at Tourism Whistler, Tourism Sun Peaks and Rossland, the Task Force recognizes that each community is different and that the Silver Star Resort Association Bylaw should reflect the specific needs of the Silver Star resort community while benefiting from the experience of other resort associations. Stakeholder input has been received to date via these channels: several letters from interested residents/property owners; a RDNO staff report dated June 10, 2016; two meetings with a committee of the Silver Star Property Owners Association; input received at the Silver Star Property Owners Association AGM; several strata council meetings; consultations with commercial property owners with a RAM Rent Charge Agreement; and several informal meetings with interested property owners/stakeholders. In response to the input received thus far, the Task Force has proposed a number of major changes to the draft Silver Star Resort Association Bylaw or has responded to and clarified information as necessary. Both the proposed changes and the clarifying responses are included here. INPUT RECEIVED: Concern has been expressed that properties without a RAM Rent Charge Agreement on title should not be charged a member assessment. PROPOSED CHANGE: The Task Force is proposing to amend the bylaws by deleting the member assessment for a non-renting residential property whether or not the property has a RAM Rent Charge Agreement on title. The Task Force is not proposing a change to the member assessment for residential properties that offer their property for rent whether or not the property has a RAM Rent Charge Agreement on title. The Task Force believes that a residential property being offered for rent is clearly benefiting from the Silver Star brand, marketing, sales and events. INPUT RECEIVED: Concern has been expressed that a developing lot should not be charged a member assessment. PROPOSED CHANGE: The Task Force is proposing to amend the bylaws by deleting the member assessment for a developing lot. INPUT RECEIVED: The draft bylaw allows the Board of Directors, with the agreement of the Mountain Operator, to change the assessments payable by members. PROPOSED CHANGE: The Task Force is proposing to limit the ability of the Board of Directors to increase assessments to the change in the British Columbia Consumer Price Index (annual average change for all items) plus 2 points without the approval of the membership. The requirement for the agreement of the Mountain Operator is proposed to be deleted. 2 Building a Stronger Resort Community

37 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET INPUT RECEIVED: If a homeowner is operating multiple home-based businesses from their residential home, they would be assessed for each business. PROPOSED CHANGE: The Task Force is proposing to amend the bylaws to limit the assessment to one home-based business regardless of how many operate from the home. INPUT RECEIVED: The draft bylaw provides that the initial Mountain Operator s assessment is the lessor of 25% of the total membership assessments or $200K. PROPOSED CHANGE: The Task Force is proposing (and the Mountain Operator has agreed) that the Mountain Operator s assessment would not exceed 25% of the total membership assessment but shall not be less than $200K. INPUT RECEIVED: The draft bylaw provides the Board of Directors with the authority to designate different classes of membership for existing members and to create new classes of membership. PROPOSED CHANGE: The Task Force is proposing that changes to the class of membership or the creation of new classes of membership would require the approval of the membership by a special resolution. INPUT RECEIVED: The Board of Directors could add a function that is consistent with the Constitution but not included within the preliminary budget, without approval of the membership. PROPOSED CHANGE: The Task Force is proposing that the addition of a function (beyond marketing, sales, communication, research, event planning and execution and advocating for the resort community) would require the approval of the membership by a special resolution. INPUT RECEIVED: The draft bylaw does not restrict borrowing by the Board of Directors. PROPOSED CHANGE: The Task Force is proposing to limit the borrowing authority of the Board of Directors to $250K (excluding borrowing for cash flow purposes), beyond which the approval of the membership would be required by a special resolution. The Task Force is also proposing that the borrowing sections of the bylaws be re-written to be more restrictive. INPUT RECEIVED: Concern has been expressed about the conflict of interest provisions. PROPOSED CHANGE: The conflict of interest provisions under the new Societies Act have changed. This section of the draft bylaws will be revised to meet the new provisions. INPUT RECEIVED: The RDNO Area C director has advised that it would be inappropriate for any member of local government to sit on the proposed resort association Board and has asked that any reference to RDNO Board membership (appointment) be removed. PROPOSED CHANGE: The Task Force is proposing to remove the RDNO Board appointment and replace it with a second director At Large. INPUT RECEIVED: Concern has been expressed that the definition in the draft bylaw for carrying on a business is too broad. 3 Building a Stronger Resort Community

38 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET PROPOSED CHANGE: The Task Force is proposing to tighten the definition by limiting it to services provided to the Silver Star resort community. INPUT RECEIVED: It has been suggested that the title President might not be appropriate for the senior staff position. PROPOSED CHANGE: The Task Force is proposing more flexibility in the title of the senior staff position by amending the bylaws to provide that the Board may select and employ an officer known as the President or other title as determined by the Board from time-to-time. INPUT RECEIVED: The proposed resort association member assessment will be in addition to the existing RAM fee. RESPONSE: The resort association member assessment would replace the RAM fee. INPUT RECEIVED: A Business Improvement Area (BIA) would resolve the RAM issues and the proposed tourism association isn t necessary. RESPONSE: A BIA is limited to Class 5 and Class 6 properties and would not apply to strata hotels and other properties classified as Class I properties. INPUT RECEIVED: Would like to know the pros and cons of becoming a Resort Municipality. The Task Force has not covered this option. RESPONSE: Reviewing the merits of a becoming a Resort Municipality was beyond the scope of the Task Force. A Resort Municipality is a form of local government. The primary scope of the Task Force was to review options for marketing the resort. Both Whistler and Sun Peaks are resort municipalities and each has a resort association with responsibility to promote and market their respective resort communities. The Sun Peaks Resort Association was in place for many years before the Sun Peaks Mountain Resort Municipality was created. INPUT RECEIVED: The Task Force should be very clear about the approval process. RESPONSE: The overall approval process for the creation of a resort association is outlined in the Newsletter. The Task Force is preparing an information handout on the property owner petition process, which will be available by Open House No. 2 on February 8. INPUT RECEIVED: The Mountain Operator would have veto power. RESPONSE: The Mountain Operator would have 2 of 11 votes on the Board of Directors. INPUT RECEIVED: The draft bylaw provides that when a poll of the membership is being taken, an Owner who owns more than one Resort Lot would have one vote for each Resort Lot owned. PROPOSED CHANGE: The Task Force is reviewing this provision in the draft bylaw and will present its response or the proposed change at Open House 2 on February 8th. INPUT RECEIVED: The Silver Star Resort Association would be able to collect member assessments through property taxes. RESPONSE: The Silver Resort Association would not have the legislative authority to collect member assessment through the property tax process. 4 Building a Stronger Resort Community

39 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET INPUT RECEIVED: The Resort Associations Act is designed for rural areas and developing resort areas, and not an established resort like Silver Star. RESPONSE: The Resort Associations Act is for both established and emerging resort communities. The model is used by two of the most successful resorts in the Province (Whistler and Sun Peaks). INPUT RECEIVED: Homeowners do not have a proportionate vote in deciding who should sit on the board. RESPONSE: What is proposed is consistent with other resort associations AND homeowners could potentially fill at least 4 of the 8 elected positions on the board. INPUT RECEIVED: The Mountain Operator s assessment is capped and is the greatest beneficiary, while the homeowner s assessments are not capped. RESPONSE: The Mountain Operator s assessment is not capped at $200,000. It will increase as assessments increase over time, but will not exceed 25% of the total assessments received. INPUT RECEIVED: The Task Force should be using the provisions of the Mountain Resort Associations Act and requiring two-thirds of the owners having at least one half of the taxable values with area to vote in favour. RESPONSE: The Mountain Resort Associations Act has been replaced by the Resort Associations Act, which requires the majority of the property owners within the Resort Promotion Area representing at least fifty percent of assessed value to vote in favour. INPUT RECEIVED: The Task Force was seeking RDNO approval at the Committee of the Whole meeting of July 20, 2016 for the Resort Promotion Area, Resort Lands and bylaws prior to going to the public. RESPONSE: The Task Force was not seeking any approvals from the RDNO. It was only seeking preliminary input prior to a thorough stakeholder engagement process. INPUT RECEIVED: Will the Task Force be appearing before the RDNO in the near future? RESPONSE: Yes, the Task Force will be appearing before a RDNO Committee of the Whole Meeting on February 22, The purpose of the meeting is for the Task Force to share stakeholder input. The Task Force will not be asking for any approvals from the RDNO, the intent is to simply share information. INPUT RECEIVED: The preliminary budget does not include a provision for an annual financial or compliance audit. RESPONSE: The preliminary budget has been modified to include a provision for an annual financial or compliance audit. THE CURRENT SITUATION Silver Star is competing in an extremely competitive environment and we are falling behind our year round competitors. This competition is only going to increase over time. Competitors are spending more on marketing, sales and events and Silver Star must find ways to do the same if it is to continue to be heard in the market place. Successful destinations work together to sell their destination. They recognize the strategic value in pooling resources in 5 Building a Stronger Resort Community

40 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET order to maximize their impact. Destination Marketing Organizations (in different forms) are located throughout BC. Tourism Golden Tourism Sun Peaks Tourism Tofino Tourism Whistler Tourism Kelowna Tourism Mt. Washington Tourism Fernie Tourism Rossland Tourism Vancouver Tourism Victoria In response to this competitive environment, the Task Force was formed to evaluate alternative approaches to marketing the resort and to recommend a preferred approach. PROCESS OVERVIEW THE ALTERNATIVE MODELS CONSIDERED The Task Force has reviewed the marketing structure and funding sources for other successful destination marketing organizations and has reviewed different models including the existing Resort Area Management Program, a Business Improvement Area, a Resort Association and a Regional District Service. THE EVALUATION PROCESS In reviewing options for moving forward, the Task Force was guided by these five principles: Fairness and Equity; Value for money; Engaged decision making; Enhanced local autonomy; and Ease of Implementation. After the development of the guiding principles, the key steps in the Task Force process to evaluate the models included: TASK FORCE MEMBERS The Task Force consists of nine members and includes a broad representation of the Silver Star community with representation from the residential community; the Silver Star Property Owners Association; and the retail, food and beverage, accommodation sectors; and the mountain operator. Ross Foden, a full-time resident with no business affiliation, chairs the Task Force. Task Force member bios can be found at the end of this document. Presentations by Tourism Sun Peaks and the Regional District; The development of specific evaluation criteria; and A comparative analysis using the guiding principles and evaluation criteria. 6 Building a Stronger Resort Community

41 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET THE RECOMMENDED OPTION: A RESORT ASSOCIATION CORE PURPOSE After the extensive evaluation process, the Task Force unanimously decided to explore further the formation of a Silver Star Resort Association (SSRA), with the core purpose being to enhance marketing/sales of the resort and increase brand awareness such that the Silver Star is seen and heard in the market place. Accountable to its members, the SSRA would focus on these key activities and provide incremental funding for them: Marketing and sales Research Communications Special event planning and execution Advocating on behalf of the resort community Silver Star Mountain Resort would continue with its significant marketing and sales programs and event planning and execution. The Resort Association would work closely with Silver Star Mountain Resort to maximize value. THE RESORT PROMOTION AREA It is proposed that the SSRA would responsible for marketing the Resort Promotion Area, which would mirror the current Silver Star Controlled Recreation Area. THE VALUE PROPOSITION The ultimate objective is to increase resort visitation. Attracting more visitors to Silver Star will help strengthen the local economy, provide resources for re-investment and enhance the vibrancy of the resort. By helping to increase resort visitation, the Resort Association will help to: 1. Maintain and Enhance the Silver Star Experience Strong visitor numbers will enable continued investment in the Silver Star experience, amenities and infrastructure, including trails/runs, facilities and programs for 7 Building a Stronger Resort Community

42 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET the enjoyment of both residents and visitors alike. 2. Enhance Resort Community Vibrancy Visitors help create the critical mass of people needed to keep programs viable and the resort community feeling lively and fun. 3. Enhance Property and Business Values A stronger local economy and more vibrant resort will help enhance and/or protect property and business values for the whole resort community. 4. Improve Business and Accommodation Success Residents and visitors benefit from the amenities, products and services that are made locally available. BOARD OF DIRECTORS The proposed Board is comprised of eleven directors with sector representation as follows: Sector No. Residential 1 Residential Lodging 2 At Large 2 Hotel Lodging 2 Commercial/Tenant/Independent Operator 1 Single Owner Hotel Lodging 1 Silver Star Mountain Resort 2 It is proposed that each sector, with the exception of directors from Silver Star Mountain Resort, would elect their respective directors. The Silver Star Mountain Resort would appoint their two directors. ADDITIONAL BENEFITS In addition to the primary objectives described above, the Resort Association will result in a number of other benefits: Provides a collective voice for the resort community Provides access to incremental funding opportunities like the Hotel Tax (Municipal and Regional District Tax), Tourism Co-op Programs (Provincial and Regional), Government Grant/Support Programs and Partnerships with local businesses Enables engaged decision-making by all members of the resort community Provides a lobby group that can advocate on behalf of the resort community with regional, provincial and federal governments Provides an added voice in support of resort community amenities and services MEMBERSHIP The proposed membership provides that Members of the Resort Association shall include each Owner of a Resort Lot within designated Resort Lands and the Silver Star Mountain Operator. Others who may apply to become a member include: owners of land, whose land is within the Resort Promotion Area, but not specified as Resort Land; non-resident business owners; occupier of a Resort Lot; and agents of owners of Resort Lots. 8 Building a Stronger Resort Community

43 SILVER STAR RESORT ASSOCIATION NEWSLETTER 3 AND FACT SHEET PROPOSED RESORT LANDS The proposed Resort Lands mirror the Silver Star Official Community Plan boundaries. ORGANIZATIONAL STRUCTURE The proposed organizational structure is based on the experience of other destination marketing organizations. PRELIMINARY BUDGET The following table outlines the preliminary Silver Star Resort Association budget. REVENUE Member Assessments $750, Hotel Tax* 150, Co-op Programs 25, Investments Other 45, Total $970, EXPENDITURES Staffing $285, Office 51, Marketing 404, Sales 130, Co-op Programs 25, Events 40, Capital 25, Total $962, Surplus $7, *The Hotel Tax (Municipal and Regional District Tax) is a tax of up to 3% applied to sales of short-term accommodation and is used to provide funding for local tourism marketing, programs and projects. PROPOSED MEMBER ASSESSMENTS The proposed member assessments used to fund the operations of the Silver Star Resort Association are based on a modification of the approach used by the Red Mountain Resort Association to assess their members. While the original proposal included assessments for owners of developing resort lots and owners of resort land not offering their resort land for rent, these assessments have been eliminated in the current model in response to stakeholder input received. 9 Building a Stronger Resort Community