November 17, 1998
To:Works & Utilities Committee
From:General Manager, Solid Waste Management Services
Subject:Advertising on Litter Containers and the Transfer of the Collection of Waste from
Litter Containers to the Solid Waste Management Services Division
Purpose:
The purpose of this report is to provide information and recommendations with respect to the
provision of advertising on new three compartment litter container installations within the
public road allowance at various locations within the City of Toronto and to recommend the
consolidation of the management of litter containers into the Solid Waste Management
Services Division.
Funding Sources, Financial Implications and Impact Statement:
The provision of replacement litter containers with an advertising component by an outside
firm could reduce the annual cost for the maintenance and replacement of existing City-owned
litter containers by an estimated $75,000 and could potentially generate revenues from the sale
of the existing containers and from the advertising component associated with the new
containers.
Recommendations:
It is recommended:
- that the Works and Emergency Services Department put out a Request for Proposals (RFP)
in early 1999 for the supply, installation, and maintenance (excluding emptying) of new
litter containers which include an advertising component to replace existing litter
containers at various locations within the road allowance in the City of Toronto;
- that no additional pilot programs be approved until the results of the above noted RFP have
been received;
- that when existing pilot programs terminate, the successful proponent(s) from the RFP in
recommendation no. (1) be required to provide litter containers in the pilot areas under the
same terms and conditions stipulated in the RFP;
- that the collection of waste from, and the maintenance of litter containers within the road
allowance be consolidated into the Solid Waste Management Services Division; and,
- that the Commissioner of Works and Emergency Services, in consultation with the
Commissioner of Urban Planning and Development Services, submit a report to the Urban
Environment and Development Committee with recommendations on a policy framework
for advertising on litter containers within the road allowance and on a consultation process
with Community Councils.
Council Reference/Background/History:
OMG Media presently supplies the stainless steel litter containers (info boxes) within the City
of Toronto. There are currently three agreements in place between the City and OMG Media
as listed below.
In June 1997, the former City of Etobicoke entered into a ten year agreement for a pilot
program with OMG Media for the supply, installation and maintenance (excluding emptying)
of stainless steel litter containers (info boxes) at various locations within the road allowance in
the Etobicoke Community Council area; to date, there are 57 of these info boxes in place. The
City's share of the revenue, generated from the advertising component of the litter containers
and pro-rated over the ten years, is approximately $8.00 per container per month or $5,472.00
annually.
On November 12, 1998, based on a request by the local Business Improvement Area (BIA),
the Etobicoke Community Council endorsed:
- the removal of two OMG Media info boxes on Bloor Street West in the Kingsway BIA,
and,
- that no further litter containers of this type were to be installed in the Kingsway BIA
without the BIA's approval.
It is our understanding that the Kingsway BIA group did not think the info boxes blended
aesthetically well in the area.
In August 1998, the City entered into an agreement with OMG Media for a pilot program for
the supply, installation and maintenance (excluding emptying) of approximately 20 stainless
steel litter
containers (info boxes) at various locations within the road allowance along St. Clair Avenue
West between Winona Drive and Lansdowne Avenue. The pilot study will be completed in
December of 1998. Staff are currently monitoring the area to:
1) determine if the additional litter containers have reduced the litter on the street;
2) measure the impacts the new litter containers have had, if any, on the City's collection
systems; and,
3) receive input from the public with respect to the appearance and locations of the litter
containers.
Preliminary analysis indicates that the new containers have been well received by the public.
In October 1998, City of Toronto Council approved a six month pilot project for the York
Community Council Area with OMG Media for the supply, installation and maintenance
(excluding emptying) of approximately 20-40 stainless steel info boxes at various locations
within the road allowance in the York Community Council Area.
During that same month, a letter was received from OMG's solicitors requesting approval to
give a presentation to the Scarborough Community Council to place info boxes within the
road allowance in the Scarborough Community Council area of the City of Toronto.
Comments and/or Justification:
In addition to OMG Media, we have received enquiries from other firms interested in
supplying the City with litter containers that have an advertising component.
In order to provide all interested firms an equal opportunity to compete for the supply of these
containers to the City and in order to allow the City to identify its options to maximize cost
reductions and potential revenue opportunities, we recommend that a Request for Proposals be
issued in early 1999 for the replacement of existing litter containers. The replacement
containers will be placed in locations that are acceptable to the Commissioner of the Works
and Emergency Services Department (WESD) and the local Community Councils.
There are currently 4,649 litter containers located at various locations within the public road
allowance (litter containers in parks are not included). The type and style of the litter
containers range from standup plastic, single and double aluminum standup, wire baskets with
metal inserts, and pole mounted. The capital costs of the above-noted containers range from
$115 to $700 per container.
The estimated annual cost city-wide for the replacement and maintenance (excluding
emptying) of the existing litter containers is approximately $150,000 or $32 per container.
Currently, the management of the litter containers in the Etobicoke, North York, East York,
and Scarborough Community Council areas is the responsibility of the Solid Waste
Management Services Division (SWMD) and the responsibility of the Transportation Services
Division (TSD) in the Toronto and York Community Council areas. The emptying of the litter
containers is performed by a mix of municipal SWMD staff, garbage collection contractors for
the SWMD and by municipal TSD staff.
At this time, it makes operational and economic sense to consolidate the management of the
litter containers into the SWMD since litter collection is part of this division's core business.
Consolidation of this function will also eliminate any confusion amongst City Councillors and
their constitutents as to which division of the WESD is responsible for the management of
litter containers.
There are financial benefits to the City in avoided replacement and maintenance costs as well
as potential revenues from the sale of advertising on the new litter containers and the sale of
the existing containers, should Council decide to go with an OMG-type info box litter
container. It is difficult to provide precise figures with respect to the avoided costs and the
potential revenues that could be generated. However, if 50% of the existing litter container
locations are deemed appropriate for the info box type of litter container, the annual avoided
replacement and maintenance costs would be approximately $75,000.
Conclusions:
This report requests approval to put out a Request for Proposals for the supply, installation
and maintenance of street litter containers with an advertising component, and to consolidate
the management of the existing litter containers into the Solid Waste Management Services
Division from the Transportation Services Division. The consolidation would be completed
by mid-1999.
Contact Name:
Steve Whitter, Director
Solid Waste Collections, Districts 1 and 2
Solid Waste Management Services Division
Phone: (416) 392-1950
Fax:(416) 392-0396
email: swhitter@toronto.ca
Angelos Bacopoulos, General Manager
Solid Waste Management Services
B. H. Gutteridge
Commissioner
Works and Emergency Services
SW/em