Report to/Rapport au :
Comité des transports
and Council/et au Conseil
13 July 2006/le 13 juillet 2006
Submitted by/Soumis par : R.G. Hewitt,
Acting Deputy City Manager/Directeur municipal adjoint par intérim,
Public Works and Services/Services et Travaux publics
Contact
Person/Personne ressource :
John Manconi, Director, Surface
Operations/Directeur, Opérations de surface
613-580-2424 x 21110, John.Manconi@ottawa.ca
SUBJECT: |
INTEGRATED STREET FURNITURE request for proposal (RFP) FRAMEWORK |
|
|
OBJET : |
CADRE DE DEMANDE DE
PROPOSITIONS – programme de mobilier urbain intégré |
REPORT RECOMMENDATIONS
That Transportation Committee recommend and Council approve:
1.
The
guidelines contained herein for the development of an integrated request for
proposal (RFP) framework for the integrated street furniture program, including
the associated proposal evaluation criteria and weightings and the make-up of
the proposal evaluation team.
2.
That a full-time equivalent
(FTE) position at an estimated cost of $82,000 be included in the Draft 2007
Operating Budget for consideration subject to the costs being offset by an
increase in the on-street litter/recycling revenue stream for the coordination
and management of the on-street litter/recycling component of the program.
3.
In the event that there is a
need to place temporary stand-alone litter/recycling units adjacent to transit
shelters during the 16-month transition period created by staggered expiry
dates of existing contracts, that the Draft 2007 and 2008 Operating estimates
provide for consideration transition impacts in the total amount of $240,000.
4.
Delegated
authority to the Deputy City Manager of Public Works and Services to award the
contract.
RECOMMANDATIONS DU RAPPORT
Que le Comité des transports recommande et que
le Conseil approuve:
1.
Les
lignes directrices énoncées dans le présent rapport en vue de l’élaboration
d’un cadre de demandes de propositions pour le programme de mobilier urbain
intégré, y compris les critères d’évaluation des propositions et les
pondérations connexes ainsi que la composition de l’équipe d’évaluation des
propositions.
2.
L’inclusion
dans le Budget de fonctionnement préliminaire de 2007 d’un ETP (équivalent
temps plein), au coût estimatif de 82 000 $, à la condition que ces
coûts soient compensés par une augmentation des recettes provenant des
installations de dépôt de déchets et d’articles de recyclage sur rue pour la
coordination et la gestion du volet collecte des déchets/recyclage sur rue du
programme.
3.
S’il
devient nécessaire de mettre, à côté des abribus, des contenants autonomes
temporaires pour la collecte des déchets et des articles recyclables durant la
période de transition de 16 mois faisant suite à l’échelonnement des dates
d’expiration des contrats actuels, la prise en compte, dans les estimations du
Budget de fonctionnement préliminaire de 2007 et de 2008, des répercussions de
la transition pour la somme totale de 240 000 $.
4.
La
délégation du pouvoir d’attribution du contrat au directeur municipal adjoint
des Services et Travaux publics.
This
report provides the results of a staff review of existing street furniture
service agreements. The review was
initiated at the direction of Council provided on June 22, 2005.
The review assesses the feasibility of adopting an integrated approach for all such street furniture service agreements and explores the potential of a comprehensive and competitive RFP. In addition, the review was to address a number of issues that had developed with respect to the street furniture agreements, specifically:
Based on the research, consultation and analysis conducted through this review, it was found that there would be significant benefit to integrating the agreements for the following street furniture elements that currently contain advertising:
By integrating the three identified elements of advertising-supported street furniture into one agreement, a number of significant benefits aligned with the following Ottawa 20/20 objectives can be achieved: Fiscal Responsibility, Partnerships, A Focus on Walking, Cycling and Transit, and Clean Air, Water and Earth. Specifically, the benefits would include:
1. Transit shelters, transit bus benches, and on street litter/recycling facilities whose appearance complement each other with a consistent look and feel, making for a more pleasant and less cluttered streetscape;
2. More effective litter and recycling services which service the pedestrian network, the cycling network, and enhanced facilities along the transportation network;
3. Transit shelters, transit bus benches, and on street litter/recycling containers whose appearance and design has flexibility for customization to complement BIA themes and other interest areas;
4. Fully engaging the successful proponent in defining the physical limits for the placement of advertising street furniture and striking a balance between service needs and revenue generating potential in public places, while retaining the City’s final approval for the placement of all three services components;
5. Environmental benefits from waste diversion, increased recycling, and increased infrastructure supporting reduction of on-street litter; and
6. Utilizing an existing City review process (Right-of-Way circulations), ensure that all proposed future placements of the on-street furniture components are screened by Public Works & Services Department to ensure a demonstrated need for service and circulated to Planning and Growth Management Department to ensure harmony of the components with local streetscapes and ensure consistency with the City’s Street Design Policy, Urban Design Guidelines, and future planning directions.
These benefits are captured in the specification guidelines for the RFP that are detailed under the following headings:
· Expansion of service
· Placement locations must have a service requirement
· Placement opt-out by Ward Councillors and BIAs for on-street litter/recycling containers
· Consistent look and feel of on-street furniture
· Type of service
· Level of service
· Waste disposal and diversion tracking
· Term of the agreement
· Strategy to accommodate staggered expiry dates of existing agreements
· Guaranteed revenue projections
· Advertising standards
· Advertising space reserved for City use
· RFP evaluation criteria
·
RFP evaluation team membership
·
Mechanism for service expansion.
·
Asset ownership at expiry of
agreement.
Upon the approval of the report’s recommendations, the Department will begin work on an RFP for an integrated agreement utilizing the guidelines contained in this report with the goal to award the tender during the first quarter of 2007.
BACKGROUND
Ottawa
has a number of street furniture agreements in place, generally with the intent
of providing a public service while transferring associated costs to the
private sector in exchange for advertising opportunity. The City’s transit shelters, bus benches,
bicycle racks, and some of the on-street litter containers are provided through
such agreements. Generally, the City
has used the following type of principles in developing these agreements:
· Provide a service. There must be an existing service or an identified and demonstrated need for street furniture. Advertising is secondary to the purpose of the structure.
· Offset capital and operating cost. Costs associated with the initial acquisition, ongoing maintenance, and periodic renewal of street furniture is transferred from the City to the service provider.
·
Generate revenue. A portion of the
advertising proceeds generated from the street furniture is returned to the
City as a revenue stream.
Over the past
several years, Council has been approached with a number of requests/proposals
related to street furniture contracts.
These requests/proposals, which were rejected by Council, highlight a
number of issues that have developed with respect to the street furniture
agreements:
1.
The City’s
streetscape could be improved if street furniture had a common look and feel,
and that there is a high potential for an increase in visual clutter if
services are expanded under the existing agreements.
2.
There is a need
for additional services in various parts of the City.
3. Advertising on various types of street
furniture may compete for the same audience and changes in individual
agreements can significantly undermine revenue potential of other agreements.
At its
meeting of June 22, 2005, Council directed that staff conduct an integrated
review of existing street furniture service agreements and report back to
Committee regarding the feasibility of adopting an integrated approach for all
such service agreements and explore the potential to issue a comprehensive RFP
to obtain best value for the City.
Currently,
as shown in the following table, the city administers six agreements whereby
service providers are allowed to support various forms of advertising on city
infrastructure or on their own infrastructure but placed on the city
right-of-way.
Table 1 - REVIEW OF
EXISTING SERVICE AGREEMENTS
Service Description |
Firm |
Contract Ends |
Extension Possible |
On what Conditions |
Length of Extension |
Current Approx. Inventory |
Annual Revenue To City $$ |
Advertising
on Transit Shelters |
ClearChannel Outdoor |
30 June
2008 |
Yes |
Service
& mutual agreement |
Two years |
600 shelters, 1200 Ad panels |
$ 600k in
year 1 escalating to $ 965k in year 5 |
Advertising
on Transit Buses |
Pattison Outdoor |
30 June
2008 |
Yes |
Service
& mutual agreement |
Two years |
Over 900
buses. Ad panels on all |
$ 1.20 M in
year 1 escalating to $ 1.29 M in
yr 5 |
Transit Bus
Benches |
Creative Outdoor Advertising |
31 August
2008 |
No |
N/a |
n/a |
700
benches; 600 with ad panels & litter bins |
$ 170k (in 2004) |
Litter
Recycling Bins |
Eucan (OMG) |
29 April
2007 |
Yes[1] |
Service
& mutual agreement |
Five years |
304 |
$ 14.4 k in
2006 and $ 18 k in 2007 |
Bike Racks |
Velocity Media |
30 November
2006 |
No, but
could be negotiated |
N/a |
N/a |
Approx. 835
with ad panel |
$2,000
annual encroachment payment |
Newspaper
Distribution Boxes |
Citizen, Sun, DOSE, Metro Express, etc |
Annual
encroachment sticker |
N/a |
N/a |
N/a |
4,330
stickers issued |
$68/sticker/year
or approx $250k/year |
The following sections provide some brief information on each of the existing service agreements.
DISCUSSION
The general objectives of the integrated street furniture RFP framework are as follows:
1. Integrated design approach. Street furniture components are to have a common “look and feel” to mitigate visual clutter and improve the aesthetic appeal of the streetscape.
2.
Responsible management of advertising. Recognizing that there are limits to revenue
generating potential in public places and that advertising modes have potential
for undermining each other’s revenue potential and the general appearance of
public spaces, manage the various agreements in a responsible and sustainable
manner.
3.
Best value for the City.
Treat suppliers equitably and serve the public interest through a fair
and competitive procurement process.
The
following sections provide details of the proposed street furniture RFP
framework resulting from research, consultation and analysis conducted through
this review.
Integrated
Design Approach
After careful review and consideration, it was found that there would be significant benefit to integrating the agreements for the following street furniture elements that currently contain advertising:
· Transit shelters,
· Transit bus benches, and
· On-street litter/recycling containers.
The basis for grouping these elements together is that transit shelters and bus benches are frequently co-located, while there is considerable duplication of services between the bus benches and litter/recycling container agreements.
Street furniture supported by advertising but not considered in this harmonized framework include:
· Bicycle racks, and
· Publication (newspaper) distribution boxes
Discussions with the administrator of the advertising bicycle rack program did not reveal any dissatisfaction or advertising conflict with their rack placements and their proximity to other on-street advertising mediums. Similarly, the administrators of the transit bus bench agreement and the litter/recycling agreement did not experience any conflicts with the placement of bike racks in close proximity.
Similarly, discussions with staff who administer access to the city rights-of-way for use by newspaper distribution boxes through the Encroachment By-law, indicated no conflicts between newspaper distribution boxes and other on-street advertising mediums. Further, Council has asked Departmental staff to report on limiting the number of newspaper distribution boxes at any one location, balancing the City’s right to rent out its right-of-way with the right of the community to maintain an uncluttered streetscape aesthetic.
Finally, advertising on and in transit buses was also deemed to be out of scope for this framework primarily since it is not considered to contribute to streetscape clutter. Similarly, while there is no existing agreement in place, light rail vehicles and the LRT corridor is also deemed to be out of scope.
By integrating the three identified elements of advertising-supported street furniture into one agreement, a number of significant benefits aligned with the following Ottawa 20/20 objectives can be achieved: Fiscal Responsibility, Partnerships, A Focus on Walking, Cycling and Transit, and Clean Air, Water and Earth. Specifically, the benefits would include:
1. Transit shelters, transit bus benches, and on street litter/recycling facilities whose appearance complement each other with a consistent look and feel, making for a more pleasant and less cluttered streetscape;
2. More effective litter and recycling services which service the pedestrian network, the cycling network, and enhanced facilities along the transportation network;
3. Transit shelters, transit bus benches, and on street litter/recycling containers whose appearance and design has flexibility for customization to complement BIA themes and other interest areas;
1. Fully engaging the successful proponent in defining the physical limits for the placement of advertising street furniture and striking a balance between service needs and revenue generating potential in public places, while retaining the City’s final approval for the placement of all three services components;
2. Environmental benefits from waste diversion, increased recycling, and increased infrastructure supporting reduction of on-street litter; and
3. Utilizing an existing City review process (Right-of-Way circulations), ensure that all proposed future placements of the on-street furniture components are screened by Public Works & Services to ensure a demonstrated need for service and circulated to Planning and Growth Management to ensure harmony of the components with the local streetscape and ensure consistency with the City’s Street Design Policy, Urban Design Guidelines, and future planning directions.
While some elements of advertising supported street furniture have been omitted from the scope of the proposed RFP, it is suggested that the application of the "consistent look and feel" guiding principles and placement criteria proposed here could also be considered to inform policy or contracts for those other street furniture elements. Furthermore, if future review of these issues during the development of the RFP identifies a strong benefit for incorporate the bicycle rack element into the integrated street furniture RFP, staff will work towards modifying the scope of the RFP accordingly.
Responsible
Management of Advertising
Advertising on City infrastructure, including street furniture, has significant but limited revenue potential. Advertisers compete for this revenue by attempting to maximize audience share and exposure. As a result, the City’s various advertising-supported street furniture agreements have the potential to undermine each other from the perspective of revenue generation. While the potential impact to revenue has not been quantified, it has been raised as a concern by the private sector.
There are three primary ways that revenue potential can be compromised between agreements:
1. Over-saturation of the market (streetscape) with the proliferation of advertising;
2. Co-location of advertising media from different agreements; and
3. Similar physical geometry (size) of advertising media.
Consultation
with the administrators of the various existing agreements, and based on
previous communications with a number of the existing service providers,
provided the following insights regarding potential for conflict:
· Litter/recycling containers and transit shelters may conflict, particularly if the physical format of the litter/recycling containers is changed to reflect international advertising standards, making them similar in geometry to the shelters.
· Litter/recycling containers and bus benches conflict in their current format where they are co-located.
· Transit shelters (vertical format) and bus benches (horizontal format) serve different markets and do not conflict.
· While it seems that the potential for conflict exists between bike racks and other forms of advertising-supported street furniture, experience has shown that the conflicts are minimal.
· Newspaper boxes and transit shelters have conflicted in the past in locations where there is restricted room in the right-of-way. These conflicts have generally, but not universally, been resolved satisfactorily on a case-by-case basis.
· There is no apparent conflict between bus board advertising and on-street advertising, since the bus board advertising does not occupy a fixed location in the city.
In summary, potential for revenue generation conflict exists between litter/recycling containers and either transit shelters or bus benches or both – depending on the geometry and placement of the litter/recycling containers. No other significant conflict is anticipated. These findings support the integration of the three street furniture elements identified in the “Integrated Design Approach” section of this report.
In order
to responsibly manage its advertising-supported agreements, the City could make
attempts to limit cross-agreement impacts through contract terms and
conditions. A more effective approach
is to integrate the agreements that have significant potential for conflict so
that the private sector deals with these issues without direct City
involvement. This is consistent with
the integrated RFP approach being presented.
Best Value for the City
The third objective of the integrated street
furniture RFP is, as previously stated, to treat suppliers equitably and serve
the public interest through a fair and competitive procurement process. This objective was re-confirmed by Council
when it rejected a recent integrated proposal from the three incumbent service
providers of transit shelters, bus benches, and litter/recycle containers.
Specification Guidelines for the Integrated Street Furniture RFP
In this section, general guidelines for the development of the integrated RFP are presented. The intent of presenting these guidelines is to confirm the overall direction and strategy associated with the contracting approach. The detailed specifications of the individual tenders/agreements for each, the transit shelters, transit bus benches, and the on-street litter/recycling containers, will remain largely intact (i.e., all servicing/emptying of litter/recycling, timely graffiti removal, damage repairs, etc.) within the framework of the guidelines presented.
Following are the specification guidelines for the RFP:
As the starting point for the RFP, the points of service are proposed to be:
o 600 litter/recycling containers – 80% of which carry advertising
o 600 transit shelters – 100% of which carries advertising
The current litter/recycling container agreement contains only 304 points of service, 100% of which carry advertising. Service points and advertising percentages for the other two services (bus benches and transit shelters) remain unchanged from their current level as a starting point for the RFP.
Having some capacity of non-advertising units allows the City flexibility to provide one or all of these services in locations that would not otherwise receive the service based upon an advertising need.
In accordance with the Municipal Act, the RFP will include the following
language with respect to committing future Council’s to the terms of the
agreement: “Since the proposed integrated street furniture contract will extend
beyond the term of the current Council, it will be subject to approval by
future Council(s), at their discretion”.
It is proposed that the entire integrated RFP be issued at a time
such that a successful bidder could be awarded in the first quarter of 2007,
with services schedule to take effect as existing agreements expire. In effect
this will mean that the Term of the Agreement for the on-street litter/recycling
containers will be 16 years, whereas the Term of the Agreement for remaining
two components, transit shelters and bus benches which both expire in 2008,
will be 15 years.
In the event that the proposed design of these components is physically
integrated (i.e. a litter/recycling container be physically integral with a
transit shelter) then the Department would be unable to pursue this phase-in
approach. The Department may be forced
to take steps to bridge the sixteen-month gap resulting from the April 2007
expiry of the on-street litter/recycling agreement. This may create a short
term operating pressure averaging $15K per month over the interim period, based
on historical costs of service.
Revenues will be split into the three streams representing the three components of the RFP. Design and functionality will address the “consistent and complementary look and feel” of the three street furniture components including the proposed advertising format on each. Maintenance and servicing will consider the type of service, expansion of service and level of service provided in response to the RFP. Relevant experience will look at the proponents proven relationship with on-street advertising markets - both national and local, as well as their experience with the maintenance and servicing of the integrated street furniture components covered by the RFP.
Also, as the issue of competing interests of street furniture and the visual clutter of the advertising is far more acute in the downtown area, it is proposed to engage a member of the Downtown Design Review Panel to participate as a member of this evaluation team.
CONSULTATION
Public consultation is not required.
FINANCIAL
IMPLICATIONS
The Surface Operation Branch of Public Works & Services Department has identified the need for an FTE in 2007 to manage and co-ordinate the on-street litter/recycling component of the program of the Integrated Street Furniture Program at an estimated cost of $82,000. This expenditure is to be funded from an anticipated increase in the annual on-street/recycling revenue stream. Therefore the approval of the FTE request is subject to the successful bid demonstrating that the anticipated increase in the annual guaranteed revenue stream is sufficient to offset the increased cost.
The existing EUCAN litter/recycling standalone units provided under the contract are to be removed on April 29, 2007 including those adjacent to transit shelters. Transit shelter locations are currently under a separate contract until August 31, 2008. Should the proposed replacement units for the transit shelter locations that are to be provided under the new contract be physically integrated into the transit shelter, temporary replacement units will be required under this scenario until that date. The estimated cost of this transition initiative is an average of $15,000 per month to a maximum of $240,000 for the 16 months (April 29, 2007 to August 31, 2008).
Subject
to Council approval, as part of the 2007 budget, the Surface Operations Branch
of Public Works & Services will bring forward a budget pressure identifying
the FTE, funding and revenue requirement in accordance with the above.
DISPOSITION
Upon
approval of this report, the Public Works and Services Department will proceed
with implementation of the recommendations.
Document 1
Advertising
Standards for Integrated Street Furniture Contract
1 The City is guided by the general principles embodied in the Canadian Code of Advertising Standards, in determining the acceptance of advertising.
2 The
City will not accept advertising of questionable taste or which is irritating
in its content or method of
presentation.
3 Advertising
must be free from offensive references to racial matters.
4 Material calling for the advocacy of,
or opposition to, a political point of view, policy or action is
prohibited. Material advocating the
name of any political party is acceptable.
Material advocating the candidacy of an individual may be accepted
providing the content is in keeping with all guidelines and that the message
centres generally on the candidate's name and party affiliation, the office
being sought, election date or other such information pertinent to the
election. Material which tends to
disparage a candidate or party or cause will not be allowed. In addition material informing the public of
the specifics relating to a meeting, gathering or event will be permitted if
the information is confined to subject, name of speaker, location, date and
time of event.
All political advertising will
indicate that the advertisement is paid for by a party or candidate so as to
avoid giving the impression that the City is supporting a given party or
candidate.
5 Religious advertising which promotes a
specific ideology, ethic, point of view, policy or action, which in the opinion
of the City might be deemed prejudicial to other religious groups or offensive
to users of the transit system is not permitted. Religious advertising will be
permitted if the information is designed to promote a specific meeting,
gathering or event and the location, date and time of said event.
6 The
City will only accept advertising that:
6.1 Recognizes the changing roles of men and
women in today's society and reflects this in the distribution of labour, the
range of occupations shown and the assignment of roles in the workplace and in
the home;
6.2 Portrays people as they are - of varying
ages, appearances, ethnic and
cultural heritages;
6.3 Portrays people as users, buyers and
decision makers, and not as inappropriately dependent upon the product being
advertised;
6.4 Uses models for other than solely attention
getting purposes, avoiding particularly the display of lightly clothed models
whose presence is not relevant to the product being advertised;
6.5
Portrays
positive body images of people, avoiding the use of extreme and inappropriate
postures that inappropriately accentuate one part of the body, thereby
fragmenting that part from the total person.
6.6
Does
not, in the opinion of the City representative, disparage any City service or
promote a product by drawing a negative comparison with a City service.
7 Although the City is guided by the
Canadian Code of Advertising Standards, the City is the sole and final arbiter
in all matters relating to advertising acceptance. The City may refuse, or
order removal of any advertising material at any time in its absolute
discretion.
8 The following clarifies the
City policy and operating procedure with regard to transit advertising acceptance, which shall be
binding on the parties to this Agreement.
8.1 Potential advertisers shall deal with the
Company directly, and the Company shall interpret the policy. If there is
disagreement between the Company and a potential advertiser on policy
interpretation, the matter may be referred to City Communications staff.
8.2 A contract must be signed with the
Company before the matter will be considered by the City. In cases where the
content of the ad is in dispute, the contract will be signed "subject to
approval" by the City.
8.3 City staff charged with the
responsibility of interpreting and implementing the City advertising policy may
overrule decisions made by the Company.
9 Should a change in policy be requested
or a question of policy interpretation be raised by potential advertisers, the
City may become involved, at its discretion. The City continues to be the sole
and final arbiter in all matters relating to City advertising acceptance.
10 Tobacco
Advertisements are not acceptable. Any displays depicting the use of tobacco or
consumption of tobacco shall be
refused.
11 The Company agrees that advertising is
to be accepted based on all current or future policies of acceptable
advertising and the City shall not be held responsible for any loss of
advertising business as a result of any changes it shall make in its policy
regarding the acceptability of certain types of advertising or individual
advertisements.
12 Advertisements of alcoholic products may be accepted so long as permitted by law whether Federal, Provincial or Municipal or the Liquor Licensing Board of Ontario. Notwithstanding the above, the City may at any time, by providing the Company with 90 days advance notice, alter its policy on the advertising of alcoholic products.
[1] Council 22 June 2005 declined to extend and Eucan have been provided with written notification that the contract will expire 29 April 2007.