March 15, 1999

To:Works and Utilities Committee

From:Commissioner, Works and Emergency Services

Subject:Provision of Litter Bins with Advertising

Purpose:

To respond to Council's request for a report to Works and Utilities Committee on the terms of reference for a Request for Proposals (RFP) for the provision of litter bins with advertising.

Funding Sources, Financial Implications and Impact Statement:

The provision of replacement litter bins with an advertising component, by the private sector, would reduce or eliminate the cost to maintain, replace and clean existing City-owned bins and could potentially generate revenue from the sale of advertising space. Once responses to the RFP are received, we will be able to report on the financial implications of the various proposals.

Recommendations:

It is recommended that this report be received for information.

Council Reference/Background/History:

At its meeting of February 2, 3 and 4, 1999, City Council approved the following recommendations pertaining to litter bins:

"(1)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;

(2)that no additional pilot programs be approved until the results of the above noted RFP have been received;

(3)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;

(4)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;

(5)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;

(6)all pilot projects in existence in Community Council areas be permitted to continue until such time as the RFP process has been completed;

(7)no bins be installed in any area in a Ward until a favourable staff report is recommended for adoption by City Council through the appropriate Community Council, after consultation with local residents and businesses;

(8)Council adopt a policy, and all interested parties in the proposed RFP process be advised, that no proposal will be accepted if the proponent has not been in full compliance with any previous contracts or pilot projects with the City of Toronto or its predecessor municipalities;

(9)appropriate protocols regarding permitted advertising be developed by the Commissioner of Works and Emergency Services, in consultation with the Chief Administrative Officer, and incorporated into the RFP.

(10)local residents, businesses and associations be consulted regarding approval of advertisements on litter containers and the placement of such containers on sidewalks; and

(11)notwithstanding any other recommendations in this Clause, a Business Improvement Area (BIA) pilot project using OMG Media Inc. litter containers, be permitted on the Danforth (by the Danforth by the Valley BIA and the Greektown on the Danforth BIA) for three years, commencing in 1999."

Council further recommended "that the Commissioner of Works and Emergency Services be requested to submit a report to the Works and Utilities Committee for its meeting scheduled to be held on March 24, 1999, on the terms of reference for this RFP, such terms of reference to include a provision whereby the City of Toronto is divided into geographical areas so that no one company will have a monopoly position in the City".

Comments and/or Discussion and/or Justification:

The following are draft terms of reference which will form the basis of the RFP for the provision of litter bins with advertising.

1.The City is interested in entering into agreements with proponents for the provision of litter bins with an advertising component at various locations within the public road allowances in the City of Toronto at no cost to the City.

2.The City will provide a listing of the litter bin locations under consideration and develop geographic categories of locations. The City reserves the right to choose the locations at which bins with advertising will be placed.

3.The successful proponent will be responsible for the supply, installation, cleaning, maintenance and repairs of the litter bins and all associated costs. Bins must be kept clean and free from posters and graffiti.

4.Toronto will retain responsibility for emptying the containers. As an option, respondents will be required to submit a fee schedule for emptying the containers and recycling and disposing of collected material.

5.Proponents are to specify the projected annual revenues in total and on a per bin basis grouped by category of locations, to be payable to the City with such amounts subject to audit by the City.

6.The Request for Proposals (RFP) will be broken down into separate contracts, by Community Council Area. Whereas proponents are encouraged to bid on all contracts, the City reserves the right to limit the number of bins to be provided by a proponent.

7.Respondents are to provide detailed specifications of the bins that they will be supplying including type of material, dimensions, size of slots etc. Samples or prototypes of the bins are preferred. The City will identify which bins will have single slots for litter and which bins must have three slots for litter and recyclable materials, e.g., litter, paper and containers. The bins must be fire, animal, dent and graffiti resistant.

8.The area of the bins that will contain the advertising must be clearly identified. Respondents must also stipulate whether any advertising space on the bins will be made available to Toronto at no cost for public service announcements.

9.All advertising shall be in accordance with the regulations and standards set by the Advertising Council of Canada, will not include advertising of tobacco products and will be free of vulgarity or indecent suggestions in the opinion of the Commissioner of Works and Emergency Services. All advertising must also conform with the advertising protocol currently being developed by the City under the Corporate Sponsorship Program.

10.The term of the contract will be five years, with an additional five year option.

11.The actual placement and orientation of the bins in the specified locations must be approved by the Commissioner of Works and Emergency Services, to ensure the safety of pedestrians and the safe movement of vehicles.

12.The successful proponent will be required to provide an irrevocable letter of credit, from a chartered bank or bonding company, or a certified cheque, in an amount to be determined once the number of locations where the new litter bins will be placed is determined.

13.The successful proponent will be required to enter into a legal agreement with the City based on terms and conditions acceptable to the Commissioner of Works and Emergency Services. The agreement will contain conditions that provide flexibility in terms of adding bins or changing locations, and will allow the City to request that some or all of the litter bins be removed if the bins, advertising or servicing are deemed unsatisfactory by the Commissioner of Works and Emergency Services.

14.Proponents are to provide an implementation plan for the design, manufacture, installation and maintenance of the bins; a description of the company's projected costs and advertising revenues associated with the project; a marketing plan outlining the sale of the advertising; and a description of past experience in similar projects.

15.Proposals will be evaluated based on revenue to the City of Toronto, quality and aesthetics of the bins, and operational considerations (e.g.-ease of emptying).

16.No proposal will be accepted if the proponent has not been in full compliance with any previous contracts or pilot projects with the City of Toronto or its predecessor municipalities.

17.The City reserves the right to enter into negotiation with the preferred respondent(s). In the event that the proposal does not entirely address the requirements of the City, or if the City's requirements should change after the public consultation process, mutually agreeable terms and conditions may be negotiated and included as a modification to the proposal.

Conclusions:

The draft terms of reference, which are subject to change once further information is available (e.g. further information on the Corporate Sponsorship Program), will form the basis of an RFP for the provision of litter bins with advertising. Discussions are underway with the Finance Department as to whether issuing an RFP at this time for advertising on litter bins fits in with the development of the Corporate Sponsorship Program recently approved by Council.

Contact Name:

Tim Michael

Manager - Waste Diversion

Solid Waste Management Services

Metro Hall

Phone: (416) 392-8506

Fax: (416) 392-4754

E-mail: Tim_Michael@metrodesk.metrotor.on.ca

Angelos BacopoulosBarry H. Gutteridge

General ManagerCommissioner

Solid Waste Management ServicesWorks and Emergency Services