January 26, 1998
To: Urban Environment and Development Committee
From: Commissioner of Transportation
Subject: Bell Canada Telephone Booth Advertising
Purpose:
To respond to the request of the Urban Environment Development Committee of January 12, 1998, for a further report on Bell Canada telephone booth advertising.
Funding Sources, Financial Implications and Impact Statement:
The proposed agreement is estimated to generate a minimum of $33,750.00 in the first year, increasing to a minimum of $262,500.00 in the tenth year, subject to the number of advertising panels installed.
Recommendation:
It is recommended this report be received for information.
Council Reference/Background/History:
At its meeting of January 12, 1998, the Urban Environment and Development Committee deferred consideration of various communications on the proposed commercial advertising panels on Bell telephone booths located on various major roads (formerly Metro roads) rights-of-ways. The Urban Environment and Development Committee:
- deferred consideration of the aforementioned communications until its next meeting, scheduled to be held on February 9, 1998;
- requested the Interim Functional Lead for Transportation:
(a) to submit a comprehensive report thereon to such meeting; and
(b) to meet with Mr. Ron Barr, Executive Director, Community/Government Relations, Gould Outdoor Advertising, to discuss his concerns; and
- directed the City Clerk to invite Members of the Community Councils and all other interested parties to appear before the February 9, 1998, meeting of the Urban Environment and Development Committee regarding illuminated commercial advertising on telephone booths.
Discussion:
A comprehensive report entitled Bell Canada Booth Advertising, dated December 2, 1997, was before the former Metropolitan Toronto Council on December 10, 1997. This report dealt in detail with the issues related to the completion of an agreement with Bell Canada for advertising on telephone booths on the former Metro road system. The report specified the details of the proposed business arrangements and outlined the concerns of the former City of Toronto with respect to the proposed agreement. The former Metro Council referred the report to the new Urban Environment and Development Committee for consideration which will be resubmitted to the Committee for it=s February 9, 1998 meeting.
In response to questions raised at the Urban Environment and Development Committee on January 12, 1998, a review was carried out on the status of Bell Canada=s request to allow commercial advertising on Bell telephone booths in the former municipalities and the results are as follows:
- the former municipalities of Etobicoke and East York signed agreements with Bell Canada for telephone booth advertising. The proposed term was ten years but in both cases the Financial Advisory Board only approved a one year term to allow any other municipal agreements to be merged with these two at that point;
- the former City of Toronto Council rejected advertising on Bell Canada booths at its meeting on January 13 and 14, 1997; and
- the former municipalities of York, North York and Scarborough, were waiting for the former Metro Council and other municipalities to make a decision on this matter.
The Urban Environment and Development Committee also requested that we report on the questions and issues raised by Mr. Barr at the Committee=s January 12, 1998 meeting. Our comments are as follows:
- Public Safety:
The issue of public safety was addressed at the previous meeting of the former Metropolitan Transportation and Planning Committee by including Metropolitan Police Services in the location approval process;
- Aesthetics:
As indicated in our previous report, aesthetics are to a large degree a subjective matter and in the final analysis a political decision is required relative to the trade off between revenue benefits versus additional street advertising;
- Minimum Guaranteed Revenue:
The proposed business arrangement with Bell Canada contains a guaranteed minimum revenue per advertising panel; and
- Competition for Advertising Revenues:
Mr. Barr suggested that advertising on Bell Canada booths will compete with the existing transit shelter advertising which could then impact on existing municipal revenues from transit shelters. It is difficult to know whether this will occur or, if it does, to what extent and whether there would be any negative impact on overall revenues to the City. In this regard, the Bell Canada advertising representative has indicated that the telephone booth panel is about 40 percent of the size of the transit shelter panel and therefore it is more oriented to pedestrian oriented advertising compared to transit shelter advertising which is oriented to both motorists and pedestrians.
As directed by Urban Environment and Development Committee a meeting was held with Mr. Barr (Gould Outdoor Advertising Incorporated) on January 16, 1998. At the meeting we reviewed Mr. Barr=s alternate proposal that involves other forms of advertising on the road rights-of-ways. Mr. Barr was advised that his proposal was a separate matter that could only be considered in the context of any competitive proposal call regarding advertising on the road allowances. The proposal for advertising panels on telephone booths has been dealt with on a sole source supply basis in view of the direct association with the installation of telephone booths as described in earlier reports.
Contact Name:
Keeva G. Lane, Supervisor, Road Allowance Control, Transportation
Phone No.: (416) 392-9312
Fax No.: (416) 392-9317
E-mail Address: keeva_lane.metrodesk.metrotor.on.ca
Douglas P. Floyd
Commissioner
Reviewed by Barry Gutteridge
Acting Executive Commissioner
KGL/mbg
a:\keeva.rp7
