October 29, 1998

To:Etobicoke Community Council

From:John Thomas, Director, Transportation Services - District 2

Subject:Introduction of OMG Waste Containers

Kingsway Business Improvement Area -

OMG Agreement Details and Comments

Purpose:

To respond to a directive from the Etobicoke Community Council for a staff report on Clause 47 of the EtobicokeCommunity Council meeting of September 16 and 17, 1998, relative to a communication from Mr.S.Bayzat, President, Kingsway BIA.

Funding Sources:

There are no funding implications associated with this report.

Recommendation:

It is recommended that this report be received.

Background:

City of Toronto Council at its meeting held on October 28, and 29, 1998, adopted the recommendation of EtobicokeCommunity Council of September 16 and 17, 1998, as follows (Attachment No. 1):

(1)requested the Director of Transportation Services - District 2, to obtain a plan showing the location of all waste containers installed by Olifas Marketing Group Inc. (OMG), to examine each of the locations in consultation with the Waste Management Division, and to submit a report to the Community Council including a comment on whether the agreement with OMG should be terminated; and

(2)received the following communication:

(September 10, 1998) from Mr. S. Bayzat, President, Kingsway BIA, regarding the introduction and proliferation of waste containers into the Kingsway Business Improvement Area by an advertisingcompany, which contain advertising for business located outside the BIA area, and requesting removal as soon as possible.

The subject of this report is to respond to the request by Council and to comment on action taken by staff with respect to the correspondence from Mr. S. Bayzat.

Discussion:

A.The OMG Agreement

The former Council for the City of Etobicoke, on April 14, 1997, through the adoption of Clause 52 of the Seventh Report of the Works and Environment Committee, 1997, and adoption of Resolution Number 160, approved an Agreement between the City of Etobicoke and the Olifas Marketing Group Incorporated for the installation of INFO-BARS in the City of Etobicoke (Attachment No. 2). Furthermore, on November17,1997, through the adoption of Clause 186 of the Seventeenth Report of the WorksandEnvironment Committee, 1997, and adoption of Resolution No. 443, the former Council for the City of Etobicoke authorized amendments to the Olifas Agreement to include INFO-BOX public waste and recycling receptacles (Attachment No. 3).

The Agreement currently in place with Olifas Marketing Group Incorporated is enclosed herewith for reference (Attachment No. 4). Briefly, the key elements of the Agreement are as follows:

1)The term of the Agreement is ten (10) years commencing June 1, 1997;

2)OMG assumes full responsibility for the installation, maintenance, replacement and upgrading requirements;

3)The City retains the right to approve all locations for the installation, as well as the advertising message;

4)In consideration of the rights granted herein, Olifas shall pay Etobicoke revenue of $5.00(fivedollars) per month per Info-Bar and Info-Box (side faces only) in each of the first two(2)years of this Agreement. In the third (3rd) year of this Agreement Olifas shall pay Etobicoke revenue of $6.00 (six dollars) per month per Info-Bar and Info-Box (side faces only). In the fourth(4th) year of this Agreement Olifas shall pay Etobicoke revenue of $7.00 (seven dollars) per month per Info-Bar and Info-Box (side faces only). In the fifth (5th) year of the Agreement Olifasshall pay Etobicoke revenue of $8.00 (eight dollars) per month per Info-Bar and Info-Box (side faces only). In the sixth (6th) year of this Agreement Olifas shall pay Etobicoke revenue of $9.00 (nine dollars) per month per Info-Bar and Info-Box (side faces only). In the 7th, 8th, 9th and 10th (seventh, eighth, ninth and tenth) years of this Agreement Olifas shall pay Etobicoke revenue of $10.00 (ten dollars) per month per Info-Bar and Info-Box (side faces only);

5)Where the end faces of the Info-Box are also used by Olifas for revenue generating advertising purposes as set out in Section 6.8 of this Agreement, Olifas shall pay Etobicoke revenue of $6.25(six dollars and twenty-five cents) per month per Info-Box in each of the first two (2) years of this Agreement. In the third (3rd) year of this Agreement Olifas shall pay Etobicoke revenue of $7.50 (seven dollars and fifty-cents) per month per Info-Box. In the fourth (4th) year of this Agreement Olifas shall pay Etobicoke revenue of $8.75 (eight dollars and seventy-five cents) per month per Info-Box. In the fifth (5th) year of the Agreement Olifas shall pay Etobicoke revenue of $10.00 (tendollars) per month per Info-Box. In the sixth (6th) year of this Agreement Olifas shall pay Etobicoke revenue of $11.25 (eleven dollars and twenty-five cents) per month per Info-Box. In the 7th, 8th, 9th and 10th (seventh, eighth, ninth and tenth) years of this Agreement Olifas shall pay

Etobicoke revenue of $12.50 (twelve dollars and fifty cents) per month per Info-Box; and

6)OMG will dedicate to the City eight (8) percent of all Info-Bar and Info-Boxes installed, for the purpose of community messaging at no cost to the City beyond the production cost of the display.

The Agreement with OMG has provided the City with an opportunity to enter into a public/private partnership, to secure Info-Bar railings where they are required, in order to assist in the management of pedestrian traffic, at no cost to the City. (Info-Bars have been placed at 19 (nineteen) locations throughout Etobicoke District). The Info-Boxes have provided the City with the opportunity to locate at the source recycling receptacles, again, at no cost to the City. (57 Info-Boxes have been installed since the program's inception). Both initiatives result in cost avoidance to the City and opportunities for revenue generation.

A map will be available at the Community Council Meeting depicting the location of the OMG products.

At the program's inception, there were some contravention of the procedural requirements perhaps because of interpretation problems, however, for the most part and particularly over the last ten months, OMG has acted in a very responsible and diligent manner in fulfilling the requirements of the Agreement.

Given the direction by Community Council at its meeting held on September 16 and 17, 1998, staff will no longer authorize the installation of Info-Bars and/or Info-Boxes without first receiving comments from the Ward Councillors; this practice went into effect immediately following the Community Council meeting, when a meeting was convened with the President of OMG to officially implement the new requirement to the protocol.

B.The Correspondence from the Kingsway BIA

In a correspondence dated September 10, 1998, Mr. Sandy Bayzat, President of the Kingsway BIA, expressed his concerns regarding the installation of the Info-Boxes in the Kingsway Business Area along Bloor Street West, and expressed the fact that the Kingsway Management Board did not support the project and furthermore requested the removal of the Info-Boxes.

Senior staff members of the Transportation Division had the opportunity to discuss the concerns expressed by the Kingsway Management Board with Mr. Bayzat. As a result of those discussions staff agreed to have OMG remove the two (2) Info-Boxes that were installed along Bloor Street West in The Kingsway (N-Equadrant of Bloor Street West and Royal York Road and the South-West quadrant of Bloor Street West and Prince Edward Drive); they have since been removed. An invitation has informally been extended to OMG to appear before the Kingsway Management Board should OMG choose to locate their products in the Kingsway BIA.

Conclusions:

The Agreement that the former City of Etobicoke struck with OMG for the provision of Info-Bars and Info-Boxes is serving its purpose well in most instances, and with savings and revenue generation potential for the City. Further refinement of the protocol to be followed in the installation of these products will serve well in gaining further public acceptance and revenue generation potentials. Telephone calls and letters received from the public speak of the acceptance of these products. (See enclosed letters as Attachment No. 5).

District staff is convinced of the value and the functional purposes that these products serve and that OMG has been diligently responding to all concerns expressed by Members of Council, staff and the public.

Contact Name:

Dominic Gulli, Director - Transportation and Engineering Planning.

(416)394-9409; Fax 394-8942.

John Thomas, P.Eng.

Director, Transportation Services - District 2

DG

Attachments

cc: C-23

T-71