Rate Plan Proposal

1. Rate Plan Proposal Member Consultation May 2013

2. Rate Plan Proposal • Proposal is revenue neutral to co-op (based on analysis of past year`s driving) • Single rate for all driving (time+kms) • Maintain 2 types: shareholding vs casual • Casual renamed `provisional` • No monthly fee for shareholding members • Annual fee for provisional members is reduced but monthly fee is now charged • No roaming for provisional members

4. Rates same as previous table

5. Rationale - practical • Marketing simplicity • Single rate is ALOT easier to explain • Less administration time • No switching between rates (currently up to 3x per year) • For shareholding members, no driving = no invoice • For provisional members, lower annual fee = less staff time chasing unpaid dues

6. Rationale - principles • Fairness • Share capital required for associate members • $25 registration fee to defray initial costs • More appropriate valuation of shareholding vs casual membership • Member Value • Many members choose Simple plan to avoid monthly fees (only a third drive in any given month) even though this is costly for short trips – discourages use • Proposal is generally cheaper for shorter trips than Simple plan • Value plan members use cars the most yet are penalized for longer trips in comparison (not fair, discourages use) • Proposal is generally cheaper for longer trips than Value plan

8. Sample Monthly Bills Tammy: Value Plan user - shorthaul

9. Harry: Simple Plan user - shorthaul

10. George: Simple Plan user – long haul

11. Xavier: Value Plan user - mixed

12. Xavier: Value Plan user - mixed