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2011/04/04 COMMITTEE OF THE WHOLE AGENDA SIXTH MEETING Monday, April 4, 2011 5:30 p.m. City Hall, Committee Room #2A & B 1) Approval of the March 21, 2011 Committee of the Whole minutes. 2) REPORTS: STAFF CONTACT: a) R &C- 2011 -09 Sports Tourism Policy Kathy Moldenhauer b) TS- 2011 -18 Transit Fare Increase Proposal Karl Dren 3) NEW BUSINESS: 4) ADJOURNMENT: IN- CAMERA SESSION a) Resolution to go into Closed Meeting. 'll III MINUTES OF COMMITTEE OF THE WHOLE Monday, March 21, 2011 Committee Room 2, 5:15 P.M. All members of Council were present. Councillor loannoni chaired the meeting. 1) MINUTES: a) MOVED on the motion of Councillor Thomson, seconded by Councillor Mayes that the minutes of the February 28, 2011 Committee of the Whole meeting be approved. Motion: Carried Action: Recommendation submitted to Council March 21, 2011. Mayor Diodati, Councillor Pietrangelo and Wing arrived. 2) REPORTS: a) TS- 2011 -17 Downtown Board of Management Request for 2 -hour Free parking on Queen Street/Valley Way MOVED on the motion of Councillor Wing, seconded by Mayor Diodati that the request for free parking along Queen Street and Valley Way be deferred until after the completion of the comprehensive Parking Operations study due in June. Motion: Carried Action: Recommendation submitted to Council March 21, 2011 b) HR- 2011 -02 Fire Department Full Time Recruitment MOVED on the motion of Councillor Pietrangelo, seconded by Councillor Morocco that the matter be dealt with in Council Chambers later this evening. Motion: Carried Action: Recommendation submitted to Council March 21, 2011 3) NEW BUSINESS: MOVED on the motion of Councillor Pietrangelo, seconded by Councillor Kerrio that the New Business matters pertaining to Downtown be dealt with in Council Chambers later this evening. Motion: Carried Action: Recommendation submitted to Council March 21, 2011 -2- 4) ADJOURNMENT: MOVED on the motion of Councillor Wing, seconded by Councillor Pietrangelo that the meeting be adjourned at 6:15 and Committee move into an In- Camera Session. Motion: Carried Action: Recommendation submitted to Council March 21, 2011 R &C- 2011 -09 NiagaraJalls April 4, 2011 REPORT TO: Councilor Carolynn loannoni, Chair and Members of the Committee of the Whole City of Niagara Falls, Ontario SUBMITTED BY: Recreation & Culture SUBJECT: R &C- 2011- 09 Sports Tourism Policy RECOMMENDATION That Council approve the Sport Tourism Policy effective May 1, 2011. EXECUTIVE SUMMARY Many Ontario and Canadian municipalities have developed a Sport Tourism Policy and Grant Program. The purpose of Sports Tourism Policy and Grant Program to provide assistance in the provision of hospitality for visiting sports teams, officials and spectators attending a major sporting event being held in the City of Niagara Falls. BACKGROUND On November 16, 2009, Council approved report R- 2009 -33, Playing Field Fees, that directed staff to investigate the development of a Sport Tourism Policy for the City of Niagara Falls. Sports Tourism Policy and Grant Program will: • Support City of Niagara Falls youth and adult sport organizations to host regional, provincial and national amateur sport events within the City of Niagara Falls. • Encourage provincial and national sport organizations to host their event/tournament(s) in the City of Niagara Falls. • Generate positive economic impact by attracting and hosting visitors. • Benefit the local sport system with development of volunteers, athletes, coaches, officials and community pride. Recreation & Culture facility user groups were invited to a Sport Tourism Information meeting on Tuesday, March 1, 2011 at the Gale Centre. Staff presented an overview of Sport Tourism and reviewed the draft Sport Tourism Policy and Grant Program. Meeting attendees discussed the policy guidelines and how the funds will be distributed to tournament organizers. Staff recommends reviewing the Sport Tourism Policy and Grant Program in a year to determine if the distribution process of grant dollars needs to be clearly defined by season or sport. User groups attending the annual Playing Field Allocation April 4, 2011 - 2 - R &C- 2011 -09 meeting on Thursday, March 24 were also informed of the policy and asked for their comments. ANALYSIS /RATIONALE The City of St. Catharines launched their Sport Tourism Policy in 2007. Over the last three years the City estimates visitor expenditure of $11 million with an estimated $17 million economic impact generated from twenty -three tournaments at City facilities. The economic impact from sport related special events are significant to a community. This past summer the Niagara Sport Commission completed an economic analysis on two local tournaments, the Teddy Bear Tournament organized by Niagara Falls Girls Minor Softball Association and the Canlan Youth Niagara Falls Hockey Challenge II. The combined visitor, capital and operational spending for both tournaments generated $581,631.00 of which directly impacted Niagara Falls. The Teddy Bear Tournament attracted 624 participants with 47% staying overnight and 498 spectators with 44% staying overnight more than three days, Friday to Sunday. The Canlan Youth Niagara Falls Hockey Challenge II attracted 32 teams of 12 - 14 youth, 400 participants and approximately 800 spectators over the three -day tournament. Approximately 53% of the participants stayed overnight in local hotels and 52% of the spectators. During both tournaments participants and spectators enjoyed local restaurants, stores and hotels /motels. FINANCIAL /STAFFING /LEGAL IMPLICATIONS With the introduction of user fees for use of City of Niagara Falls playing fields local sport organizations have approached City Council requesting their rental fees be waived for tournaments. To date approximately 33 tournaments are booked at the Gale Centre with 12 soccer and 25 baseball tournaments planned for this summer at City playing fields. In response to the significant economic impact of tournaments at City arenas and playing fields staff recommends implementing a Sport Tourism Grant program to support and encourage tournaments and other related sport competitions in Niagara Falls. A budget of $20,000.00 is recommended with Recreation & Culture staff administrating the program. The City of St. Catharines Sports Tourism Grant program is administered by Economic Development & Tourism Services Department with a budget of $25,000.00 and the City of Welland's program is administered by Parks, Recreation and Cultural Services staff with a budget of $10,000.00. Tournament organizers will contact Niagara Falls Tourism to coordinate room rebates and tourism related packages. April 4, 2011 - 3 - R&C- 2011 -09 CITY'S STRATEGIC COMMITMENT The City of Niagara Falls' Strategic Plan for the Provision of Parks, Recreation, Arts and Culture, Action Plan #four states: "Determine Role of Sport Tourism in Future Additions or Improvements to Field Supply." Staff and user needs acknowledge the need for a Sport Tourism Grant program which exists in other communities. The Grant program can be part of an overall Sport Tourism Policy. The City of Niagara Strategic Priorities, Economic Vitality states, Encourage development of new tourism products, to promote and expand year round sport tourism opportunities utilizing City recreation facilities such as the Gale Centre. The proposed Sport Tourism Policy and Grant program will assist in promoting new and existing sporting events. LIST OF ATTACHMENTS 1. Sport Tourism Policy Recommended by: 21� ( ?,c(ErC A (t tp Kathy Moldenhauer Actin Di ector of Recr tion & Culture Approved by: Ken odd Chief Administrative Officer Page 1 of 2 DEPARTMENT: DATE EFFECTED: POLICY: RECREATION & Sport Tourism Policy & CULTURE May 1, 2011 Grant Program BUSINESS DEVELOPMENT Section Purpose The purpose of Sports Tourism Policy and Grant program is to provide assistance in the provision of hospitality for visiting sports teams, officials and spectators attending a major sporting event being held in the City of Niagara Falls at City and community facilities. Sports Tourism Policy and Grant Program will: • Support City of Niagara Falls youth and adult sport organizations to host regional, provincial and national amateur sport events within the City of Niagara Falls. • Encourage provincial and national sport organizations to host their tournament(s) in the City of Niagara Falls. • Generate positive economic impact by attracting and hosting visitors. • Benefit the local sport system with development of volunteers, athletes, coaches, officials and community pride. Guidelines • Sport Tourism opportunities may include international, national, provincial and regional single -sport championships. Also include annual tournaments /events, multi -sport games and training camps, selection camps and /or preparation events. All events to be endorsed or sanctioned by a Provincial, National or International sporting body. • Only non -profit organizations, or charitable events with 100% of proceeds benefitting local charities, can apply for a sport tourism grant. • New and returning events are requested to provide information on anticipated number of competitors and /or teams attending the sporting event. • Sporting event is to be a minimum of two days. • The event will be hosted in the City of Niagara Falls with the majority of participants /spectators staying overnight in the City's motels and hotels. Page 2 of 2 Process • The Sport tourism Economic Assessment Model (STEAM) software tool may be utilized to assess the economic impact of each tournament/special event. STEAM will allow staff to measure, track and support the event. • Applicants will complete and submit the Sport Tourism Grant Program form requesting event and organizer information to Recreation & Culture staff. Form is to be submitted 30 to 60 days in advance of the event. • Non -profit organizations will provide a copies of the Constitution or Charter and /or By -Laws. Event Type Room Nights (Overnight Stay) Amount Level 1 50 - 249 $300 Level 2 250 - 500 $700 Level3 >501 $1500 Level 4 >750 $4,000 maximum Significant Events* * Significant Event - Consider spectator interest, additional visitors, media coverage and legacy benefits to the City, for example National level event. • Applicants will be directed to contact Niagara Falls Tourism (905) 356 -6061 ext 16 or by email LeisureSales (a�niagarafallstourism.cpm to secure room Grants and tourism related packages. • Post event organizations must provide their actual budget report complete with documentation to validate the number of out of town participants who stayed overnight in Niagara Falls hotels and /or motels. • Post event organizers of charitable events must provide documentation to support proceeds have been provided to local charities. I Revised March 25, 2011 S: \Council \Council 2011 \R &C 2011-09 - Attachment #1- Sports Tourism Policy draft.wpd TS- 2011 -18 Niagaraaalls April 4, 2011 REPORT TO: Councilor Carolynn loannoni, Chair and Members of the Committee of the Whole City of Niagara Falls, Ontario SUBMITTED BY: Transportation Services Department SUBJECT: TS- 2011 -18 Transit Fare Increase Proposal RECOMMENDATION 1) That Council endorse the proposed five year plan for Transit Fare revisions as outlined in Schedule `A'. 2) That the revisions to the Conventional Service fares come into effect July 1S 2011 and the revisions to the Falls Shuttle Fares come into effect on May 1' , 2011. 3) That the Commission for the sale of Conventional fare media be increased from 2% to 3% and that the sale of Falls Shuttle fare media be decreased from 10% to 5 %, effective May 1S 2011. EXECUTIVE SUMMARY Niagara Falls Transit is proposing a fare increase to ensure operating revenues keep pace with operating expenditures for the continued health of the system. The previous fare increase was implemented in April, 2009 and only the cash fares were increased by ten cents to $2.35 for an adult, $2.10 for seniors and students, and $1.10 for children six to twelve. Thus, the ticket and pass prices were not increased at that time to further encourage our customers to migrate away from the cash fares and promote multi ride fare media, which better promotes loyalty to the service. In addition, the Falls Shuttle passes have remained the same price since 2002, even though wages and fuel prices have been rising. It is recommended the fare price for an all day pass be increased from $6.00 to $10.00. This fare allows one adult and two children to ride the Falls Shuttle, as well as our conventional system all day. By comparison, the fare to ride the NPC People Mover would cost $16.50. The Transit Strategic Business Plan, prepared by the IBI Group and endorsed by Council, identified a recommended five year fare structure implementation plan to help offset rising costs, as well as the proposed enhancements to transit services. These fare adjustments will be phased in over the next five years, so there will be adjustments prior to, during, and after the routing improvements. April 4, 2011 - 2 - TS- 2011 -18 In addition to the proposed fare increases, staff recommend adjustments be made to our vendor commission rates. Niagara Falls Transit currently has over twenty independent vendors throughout the city, which provide tremendous convenience for our customers to purchase their tickets and passes. The 2% commission paid to these vendors has remained unchanged for over fifteen years and should be enhanced to ensure the growth of this valuable sales network. Thus, an increase from 2% to 3% is recommended for our conventional fare media and a decrease from 10% to 5% is recommended for our Falls Shuttle Day Pass. The lower commissions being paid on conventional fare media reflect the higher value of the product and year round nature of the sales opportunity. The commission was lowered on the Falls Shuttle Day Pass due to the increase in the Pass pricing. BACKGROUND As noted, Council approved the ten cent cash fare increase, which was implemented in April, 2009. Neither the ticket or monthly pass prices were increased at that time as ridership data indicated Niagara Falls Transit collected approximately eighty percent of its revenue from cash fares, which is disproportionately high. In most systems, the percentage of revenue generated from cash, tickets, and monthly passes is proportional. Those customers, which utilize the service most, choose the ticket and monthly pass options due to their reduced cost per ride. These loyal customers are critical to the health of Niagara Falls Transit as their patronage generates increased ridership, which in turn, results in a larger portion of the Provincial Gas Tax Subsidy. It has been eight years since the ticket, monthly and semester pass prices were increased and nine years since the day pass price was increased. During this period, operating expenditures associated with wages, fuel, and maintenance increased by approximately three percent per year. In addition, the Ontario Bus Replacement Program, which subsidized one third the cost of each replacement bus purchased was eliminated in 2010 and the utilities and repair costs associated with maintaining the deteriorating Operations Facility on Bridge Street have continued to escalate. The additional fare revenues will greatly assist with the management of these ever increasing expenses. ANALYSIS /RATIONALE The cash fare increase would place Niagara Falls Transit on parity with Welland and St. Catharines Transit, which have been at $2.50 for their adult cash fare since 2009. By increasing the monthly pass rates, Niagara Falls will also be in line with Welland and St. Catharines, which have higher rates for their passes. At $70.00 per month for an adult pass, a frequent commuter making twenty round trips per month, has effectively reduced the per trip ride to $1.75. On a go forward basis, the principle of fare pricing should be to establish a high cash fare with progressive pricing incentives for loyal, more frequent customers. The greater price increase associated with the Falls Shuttle day pass is based on several factors. The current $6.00 fare is far below market value for this premium service providing transportation to 1:30 a.m. and half hour headways during the peak tourism season. In comparison, the Niagara Parks Commission charge $7.50 for an adult and $4.50 per child (5 through 12 years of age) for an all day pass on their People Mover system. Thus, for April 4, 2011 - 3 - TS- 2011 -18 a family of two adults and two children it would cost $24.00 per day to travel on the People Mover versus our current Falls Shuttle pass for $12.00. The price increase in the Falls Shuttle pass would make the cost for this family $20.00 for the entire day and they could have up to four children at no additional cost. As noted above, the wages, fuel, and maintenance costs have continued to rise each year while many of the fare categories have not kept pace with these increasing expenses. On average, these costs have risen about three percent per year and thus, over an eight year period equate to a compounded increase of approximately twenty five percent. Therefore, the $2.25 cash fare, which was being charged customers in 2003, should be $2.85 for 2011. Also, the IBI Strategic Plan indicates the fare for 2011 should be increased to $2.55 for adults and $2.30 for Seniors and Students to protect our revenues. The following statements have been hilited for your information from the Strategic Plan; • Increase the average fare by approximately 5 per cent (5 %) per year, subject to rounding to nearest convenient $0.05 over the 2010 -2015 period, which is consistent with inflation and the significant improvements to be made to the services. • Price monthly passes on the basis of 30 rides times the cash fare. • Continue to provide a Day Pass on the basis of 2.5 times the adult cash fare. • All fares rounded to the nearest convenient coinage. FINANCIAL /STAFFING /LEGAL IMPLICATIONS There are no staffing or legal implications associated with the proposed fare increases. The financial implications should result in additional fare revenues. Public transit is an inelastic service and increases to fares do not result in proportional decreases in revenue due to reduced ridership. It is difficult to predict ridership decreases due to fare increases, but the overall revenue realized per trip will increase. CITY'S STRATEGIC COMMITMENT This initiative is supported by Council's Strategic Priority regarding Convenient, Accessible, and Sustainable Transportation, specifically, continue to generate revenues, which keep pace with rising operational costs to ensure our community is provided with a healthy, sustainable transportation option. Make Niagara Falls Transit an environmentally responsible, reliable, and convenient choice that connects people to destinations through the implementation of the Transit Strategic Business Plan and Ridership Growth Strategy April 4, 2011 - 4 - TS- 2011 -18 List of Attachments Schedule 'A' - Recommended Fare Structure 2010 - 2015 Recommended by: Karl Dren, Director of Transportation Services Respectfully submitted: Ken odd, Chief Administrative Officer Dave Stuart S. \General Administration \GA 1.01 Reports \2011 Committee of the Whole \04 Apr 4 \TS- 2011 -18 Transit Fare Increase Proposal.wpd SCHEDULE "A" RECOMMENDED FARE STRUCTURE 2010 - 2015 Conventional Transit FARE RATE BY YEAR FARE CATEGORY 2010 2011 2012 2013 2014 2015 Cash Adults $2.35 $2.50 $2.65 $2.75 $2.90 $3.00 SeniorsNlP* $2.10 $2.25 $2.30 $2.40 $2.40 $2.50 Student (13 to 19) $2.10 $2.25 $2.30 $2.40 $2.40 $2.50 Child (6 to 12) $1.10 $1.25 $1.25 $1.35 $1.40 $1.50 Infants (5 and under) Free Free Free Free Free Free 10 Ride Passes /Tickets ** Adults $22.00 $23.00 $24.00 $25.00 $26.75 $28.50 Seniors/VIP* $19.50 $20.50 $21.50 $22.50 $23.00 $23.50 Youth (High School) $19.50 $20.50 $21.50 $22.50 $23.00 $23.50 Monthly Passes (30 DAYS) Adults $65.00 $70.00 $74.00 $77.00 $81.00 $84.00 Students (High School) $50.00 $54.00 $58.00 $62.00 $66.00 $70.00 SeniorsNlP* $50.00 $54.00 $58.00 $62.00 $66.00 $70.00 Student Semester Pass * ** $180.00 $192.00 $204.00 $216.00 $230.00 $244.00 Adult Day Pass $6.00 $6.00 $6.00 $7.00 $7.00 $8.00 * VIP Passes and tickets are sold to adults, which are receiving Provincial support subsidies. ** Tickets to be phased out upon the introduction of a 10 ride Smart Card Pass * ** Semester Passes are valid for high school students for 5 months Smart Cards - Initial issuance $2.00 Smart Cards - Replacement $5.00 Falls Shuttle Falls Shuttle One Way $3.50 $3.50 $3.50 $4.00 $4.00 $5.00 Child (12 and under) $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Falls Shuttle Pass $6.00 $10.00 $10.00 $12.00 $12.00 $15.00 ' �II ; . yu 1� r CITY OF_ _ v CANADA NIAG4RA fA The City of Niagara Falls, Ontario Resolution No. Moved by Councillor Seconded by Councillor WHEREAS all meetings of Council are to be open to the public; and WHEREAS the only time a meeting or part of a meeting may be closed to the public if the subject matter falls under one of the exceptions under s. 239(2) of the Municipal Act, 2001. THEREFORE BE IT RESOLVED THAT on April 4, 2011 Niagara Falls Council will go into a closed meeting to consider a matter that falls under the subject matter of 239(2)(f) of the Municipal Act, 2001, advice that is subject to solicitor - client privilege. AND The Seal of the Corporation be hereto affixed. DEAN IORFIDA JAMES M. DIODATI CITY CLERK MAYOR