CITY CLERK

Clause embodied in Report No. 3 of the Economic Development and Parks Committee, as adopted by the Council of the City of Toronto at its meeting held on September 28 and 29, 1999.

9

Third Party Outdoor Advertising

on City Property and Assets - All Wards

(City Council on September 28 and 29, 1999, amended this Clause by adding thereto the following:

It is further recommended that the Commissioner of Economic Development, Culture and Tourism be requested to include agencies, boards and commissions in any consultation process regarding third party outdoor advertising.)

The Economic Development and Parks Committee recommends:

(1) the adoption of the joint report (August 23, 1999) from the Commissioner of Economic Development, Culture and Tourism and the Acting Commissiner of Corporate Services, subject to:

(a) adding to the beginning of Recommendation No. (3) the following:

effective the date of Councils adoption of this recommendation, ...;

(b) adding a new Recommendation No. (4) to read as follows:

(4) the deferral in Recommendation No. (3) shall not include third party outdoor advertising initiatives currently under consideration (such as the proposed litter bin program).; and

(c) renumbering the previous Recommendation No. (4) to Recommendation No. (5) as follows:

(5) this report be forwarded to each Community Council for information purposes.; and

(2) that the report (September 7, 1999) from the City Clerk advising that the Administration Committee on September 7, 1999 recommended the adoption of the aforementioned report, be received.

The Economic Development and Parks Committee reports, for the information of Council, having:

(i) requested the Commissioner of Economic Development, Culture and Tourism to report back, upon completion of the public consultation process, by February 1, 2000, or sooner, so that the tendering process may begin at the very latest by the end of March 2000; and

(ii) requested the City Solicitor to report directly to City Council for its meeting of September 28, 1999, on the ability of City Council to impose deferrals on Third Party Advertising for Agencies, Boards and Commissions.

The Economic Development and Parks Committee submits the following joint report (August 23, 1999) from the Commissioner of Economic Development, Culture and Tourism and the Acting Commissioner of Corporate Services:

Purpose:

The purpose of this report is to examine issues relating to the development and implementation of a third party outdoor advertising program for City of Toronto properties and assets. We are also seeking Councils authorization to conduct a public consultation process regarding such advertising. The draft objective and principles for third party outdoor advertising contained in this report will form the basis for discussion during the community consultation process. The report also recommends that Council defer consideration of unsolicited proposals for third party outdoor advertising until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a comprehensive third party outdoor advertising program.

Source of Funds:

Other than minor advertising expenses regarding public consultation, which will be accommodated within existing departmental budgets, there are no immediate financial implications.

Recommendations:

It is recommended that:

(1) City Council endorse the draft objective and principles for third party outdoor advertising contained in this report, and authorize the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, to commence a public consultation process regarding third party outdoor advertising, utilizing the draft objective and principles set out in this report as a basis for discussion;

(2) the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, report back to the Economic Development and Parks Committee, and the Administration Committee, respecting Recommendation No. 1, including in the report a draft third party outdoor advertising program which takes into consideration the input gained from the public consultation process;

(3) Councils consideration of unsolicited proposals for third party outdoor advertising on City-owned property and facilities be deferred until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a third party outdoor advertising program, subject to the deferral not including the proposed litter bin program which is currently under consideration, or any signage associated with City partnership or promotional initiatives; and

(4) this report be forwarded to each Community Council for information purposes.

Background:

City Council, at its meeting on July 29, 30 and 31, 1998, recommended the adoption of a report from the Commissioner of Corporate Services to terminate existing signboard agreements for certain non-conforming signboard locations, and to issue a tender to lease certain other locations. At the same time, Council recommended that a similar report be provided for former Metropolitan Toronto signboard agreements. City Council, at its meeting on November 25, 26 and 27, 1998, recommended that the existing signboard agreements continue until Council has adopted a City-wide policy. Council also directed a report be prepared regarding policies, process and criteria for tendering signboards, and that this report ensure that there will be more than one provider of these advertising services.

At its meeting on December 16 and 17, 1998, Council considered a report from the Commissioner of Economic Development, Culture and Tourism regarding outdoor advertising at City Parks and Recreation facilities. The report was prepared in response to several enquiries the Department had received from companies interested in placing outdoor advertising on City properties, buildings, facilities and equipment. Council adopted a recommendation that called for the establishment of a staff project team to examine issues related to this matter.

In addition, Council, at its meeting on March 2, 3 and 4, 1999, adopted a recommendation contained in a report from the Commissioner of Economic Development, Culture and Tourism to include the feasibility, planning criteria and revenue potential of billboard advertising on City-owned or maintained properties as part of the mandate of the staff project team noted above. The report was prepared in response to a communication from Councillor Silva respecting opportunities for revenue generation through billboard advertising.

In keeping with Councils direction, a staff project team was established in February of this year to identify and address issues pertaining to the development and implementation of a third party outdoor advertising program on City assets. The project team consists of staff from the following departments: Economic Development, Culture and Tourism, Corporate Services, Urban Planning and Development Services, and Works and Emergency Services. Staff from Heritage Toronto are also included in the project team.

In a related matter, Council has requested comments from the Community Councils with respect to their participation in a proposed program that entails the replacement of existing litter bins with new bins providing space for third party advertising.

Comments:

Existing Third Party Outdoor Advertising

Third party outdoor advertising is advertising which is located upon City-owned lands, buildings or facilities, but which is not related to City business, or that of its agencies, boards or commissions. Typically, the advertisements promote private sector corporations and their products or services. Outdoor advertising companies, subsequent to Council approval of sign locations, enter into a lease agreement with the City, erect the sign, and then lease the signage space to advertisers.

Currently, the City is engaged in several third party outdoor advertising initiatives including the leasing of City-owned lands for signboards, and advertising on and in TTC buses, bus shelters, and subway stations. The Parking Authority has erected a series of ground signs that include space for third party advertising. In addition, Council currently has before it a proposal to permit third party outdoor advertising on street litter containers.

Corporate Sponsorship Program Initiative

City staff are preparing a Corporate Sponsorship Program for Councils consideration through which the City will develop an ongoing, long term relationship with one selected company in each of a number of targeted business categories. The category sponsor will receive a package of entitlements from the City, which may include provisions for outdoor advertising on City assets, in exchange for an annual sponsorship fee. Sponsors will also be expected to promote their association with the City through support of events and other City-related activities.

Third party outdoor advertising is not the same as corporate sponsorship. In third party advertising, the City simply enters into an agreement to allow a media corporation to lease space on a City asset on which to erect advertising signage. It is the responsibility of the outdoor advertising company, not the City, to secure advertisers for the signage space, and other than the terms of the agreement, there are no additional responsibilities or entitlements on behalf of the City or media corporation.

Issues Identified

The staff project team agreed that third party outdoor advertising has the potential to generate significant revenues for the City. The team also agreed that a hastily designed and implemented third party outdoor advertising program could have serious ramifications with respect to the quality, compatibility and legal conformity of third party signage, and the programs acceptance by residential and business communities, and users of City parks, buildings and facilities.

The project team has identified the following issues that it recommends be addressed in designing and implementing a third party outdoor advertising program:

- maintaining the aesthetic and functional integrity of City assets, such as parks, buildings and recreational facilities, used for third party advertising;

- the impact of a new third party outdoor advertising program upon existing third party advertising contracts and leases;

- the impact of third party outdoor advertising signage with respect to liability issues and the structural integrity of buildings and facilities;

- the impact of third party advertising on road allowances with respect to public safety, visual effect on streetscapes and neighbourhoods;

- the content of third party advertising with respect to issues such as product, target audience, discrimination and accuracy of message;

- the design of third party signage and the need for detailed design guidelines to be professionally developed and adopted by Council;

- the lack of a harmonized Sign By-law;

- the authority of Council to demand the removal of inappropriate advertising;

- defining the difference between third party advertising and corporate sponsorships;

- the allocation of revenue generated by the program; and

- the potential of increased reliance of core City services and programs upon the availability of City assets for advertising purposes.

Draft Objective and Principles for Third Party Outdoor Advertising

To help address the issues noted above, the project team has developed the following draft objective statement and principles for third party outdoor advertising on City property and assets. Due to the visible and sensitive nature of outdoor advertising, the project team recommends that broader consultation on the objective and principles of third party outdoor advertising be undertaken to ensure that community concerns have been sufficiently identified and addressed. Combined with the list of issues noted above, the draft objective and principles will form a basis for discussion during the public consultation process.

Draft Objective:

To restrict third party outdoor advertising to those initiatives which maintain the visual aesthetics and integrity of City-owned assets, are sensitive to the character of the Citys neighbourhoods, and are acceptable to community stakeholders.

Draft Principles Respecting Third Party Outdoor Advertising on City Assets:

(a) the content of third party outdoor advertising shall conform to the Advertising Content Guidelines, as adopted by Council; (still to be developed);

(b) the design of third party outdoor advertising signs shall conform to the Signage Design Guidelines, as adopted by Council; (still to be developed);

(c) all third party outdoor advertising signs shall conform to all applicable by-laws and legislation;

(d) third party outdoor advertising shall be prohibited within or immediately adjacent to:

- passive parkland areas generally described as those where leisure activities take place such as walking or reading;

- ravines and other naturalized open spaces; and

- childrens playgrounds, wading pools or waterplay facilities;

(e) in those parkland areas where active recreational uses take place, third party outdoor advertising shall only be permitted so as not to interfere, physically or visually, with the use or enjoyment of sports fields, swimming pools or other such facilities;

(f) third party outdoor advertising shall be prohibited on heritage buildings, heritage properties and other heritage assets;

(g) within road allowances:

- third party advertising may be permitted on street furniture, provided that such advertising does not detract from public safety, streetscape aesthetics, or from the residential amenity or business interests of the surrounding community; and

- the addition of new freestanding outdoor advertising structures shall not be permitted unless the structure also serves the public interest and community objectives as may be determined by Council. The placement of any such structures shall not detract from public safety, from pedestrian or vehicular use of the right-of-way, streetscape aesthetics, or from residential amenity or business interests of the surrounding community;

(h) third party advertising shall not be permitted on bridges or overpasses;

(i) third party outdoor advertising may be permitted on City-owned buildings and structures subject to legal liability issues, the compatibility of the proposed signage with the buildings character, and the structural and functional ability of the building or facility to accommodate signage;

(j) during the sign approval process, the City may request that a portion of a proposed outdoor advertising sign be made available for the City of Toronto logo, public announcements or public service messages, at no cost to the City;

(k) City Council, or its designate, shall retain the authority to approve the location of all third party outdoor advertising signage on City-owned property;

(l) prior to Councils consideration, proposals for third party advertising shall be evaluated by an interdepartmental staff team who shall have regard for the advertising content and signage design guidelines; and

(m) the City shall reserve the right to demand the removal of any third party outdoor advertising which does not, in the opinion of the City, conform to the Advertising Content Guidelines or Signage Design Guidelines noted above.

The principles noted above reflect the concerns of the staff project team that third party outdoor advertising could have considerable negative impacts upon the Citys more environmentally, aesthetically and socially sensitive assets such as passive parkland, natural open spaces, roadways, heritage buildings and properties, and playgrounds.

The principles regarding advertising content and signage design guidelines are proposed to help ensure that third party outdoor advertising is not offensive to community sensitivities, and is designed to complement, not detract from, the character, structural integrity and functionality of buildings and properties on which the signage is located. In addition, one of the proposed principles reserves Councils authority to demand the removal of any third party outdoor advertising which does not conform with the content and signage design guidelines.

Public Consultation

Given the potential negative impacts of a third party outdoor advertising program on City-owned lands, buildings and facilities, the staff project team recommends that a public consultation process be developed and implemented this year. The purpose of the consultation will be to discuss and confirm those issues identified by the staff project team, identify other issues, and obtain input on the draft objective and principles. The input received through the public consultation will be considered during the development of a draft third party outdoor advertising program. The consultation process will involve resident groups, business associations and other stakeholder organizations such as recreation advisory councils, arena boards of management, and cultural, heritage and environmental groups, that utilize City parks, buildings and facilities. The process will also include representatives from the sign industry.

Interim Process for Considering Third Party Outdoor Advertising Requests

Recently, there have been several requests from signage companies seeking approval to erect third party outdoor advertising signage within City road allowances and public squares. Currently, there appears to be no consistent, City-wide process for reviewing such requests. Given the sensitive nature of this issue, its potential negative impacts upon City assets, and the need for consistency in the Citys approach, the project team recommends that Council defer consideration of unsolicited proposals for third party outdoor advertising on City-owned property and assets until a formal process for receiving, evaluating and making decisions on such proposals has been adopted by Council as part of a comprehensive third party advertising program.

The recommended deferral shall not include the proposed litter bin program which is currently under consideration. In addition, the deferral shall not apply to signage associated with City partnership or promotional arrangements. For example, the Economic Development, Culture and Tourism Department is currently developing a partnership initiative with private sector businesses to erect Gateway signs, which may include corporate advertising, at strategic entry locations to the City.

Conclusion:

As directed by Council, a staff project team has been assembled to identify and address issues pertaining to third party outdoor advertising on City assets. This report identifies several of these issues and presents a draft objective statement and principles that will assist in conducting a community consultation process which will lead to the development of a sensitive and consistent third party outdoor advertising program.

It is recommended that the staff project team be authorized to conduct public consultation to obtain additional input. It is also recommended that Council defer consideration of proposals for third party outdoor advertising until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a comprehensive third party outdoor advertising program. The recommended deferral shall not include the proposed litter bin program which is currently under consideration and shall not apply to signage associated with City partnership or promotional arrangements.

Contact Names:

Ms. Winnie Li, 392-8183; Mr. Sal Dominicis, 397-0806; Ms. Diane Stevenson, 392-0098.

The Economic Development and Parks Committee also submits the following communication (September 7, 1999) from the City Clerk:

Recommendation:

The Administration Committee on September 7, 1999, recommended to the Economic Development and Parks Committee the adoption of the joint report (August 23, 1999) from the Commissioner of Economic Development, Culture and Tourism and the Acting Commissioner of Corporate Services.

Background:

The Administration Committee on September 7, 1999, had before it a joint report (August 23, 1999) from the Commissioner of Economic Development, Culture and Tourism and the Acting Commissioner of Corporate Services, recommending that:

(1) City Council endorse the draft objective and principles for third party outdoor advertising contained in this report, and authorize the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, to commence a public consultation process regarding third party outdoor advertising, utilizing the draft objective and principles set out in this report as a basis for discussion;

(2) the Commissioner of Economic Development, Culture and Tourism, and the Acting Commissioner of Corporate Services, report back to the Economic Development and Parks Committee, and the Administration Committee, respecting Recommendation No. 1, including in the report a draft third party outdoor advertising program which takes into consideration the input gained from the public consultation process;

(3) Councils consideration of unsolicited proposals for third party outdoor advertising on City-owned property and facilities be deferred until Council has adopted a formal process for receiving, evaluating and making decisions on such proposals as part of a third party outdoor advertising program, subject to the deferral not including the proposed litter bin program which is currently under consideration, or any signage associated with City partnership or promotional initiatives; and

(4) this report be forwarded to each Community Council for information purposes.

Mr. Jeff Lyons appeared before the Administration Committee in connection with the foregoing matter.

The following persons appeared before the Economic Development and Parks Committee in connection with the foregoing matter:

- Mr. Ron Barr, Executive Director, Government and Community Relations, Pattison Outdoor Advertising, and filed a copy of his submission; and

- Mr. Blair Murdoch, Vice President of Real Estate, Mediacom.

(City Council on September 28 and 29, 1999, had before it, during consideration of the foregoing Clause, the following report (September 17, 1999) from the City Solicitor:

Purpose:

The purpose of this report is to respond to the request of the Economic Development and Parks Committee that, the City Solicitor report directly to Council with respect to the ability of the City to impose deferrals on third party advertising for the Citys Agencies, Boards and Commissions.

Funding Sources, Financial Implications and Impact Statement:

N/A.

Recommendation:

That this report be received for information.

Background:

The Report of the Commissioner of Economic Development Culture and Tourism and the Acting Commissioner of Corporate Services dated August 23, 1999 Re: Third Party Outdoor Advertising on City Property and Assets recommended that City Council endorse draft objectives and principles on third party outdoor advertising and commence a public consultation process. It further recommends that during the consultation process, and until such time as Council has added a formal process as part of a third party outdoor advertising program, for receiving, evaluating and making decisions on proposals for third party outdoor advertising, that Council's consideration of unsolicited proposals for third party outdoor advertising on City owned property and facilities be deferred.

At its meeting of September 13, 1999 the Economic Development and Parks Committee questioned whether or not this deferral could be extended to include Agencies, Boards and Commissions such as the TTC and the Toronto Parking Authority.

Comments:

The Citys major Agencies, Boards and Commissions (ABCs) are independent bodies governed by specific statutes which have their own operating and procedural by-laws, which vary from ABC to ABC. Many are incorporated as corporations without share capital and are run by a Board of Management or a Governing Board. As such, ABCs Members of Council may sit in these Boards, Agencies and Commissions. Council may enter into agreements with Boards which may contain provisions establishing general policies for them to follow. Subject to the specific provisions contained in specific by-laws of the various ABCs, Council policies do not govern the operation of ABCs and they may sell or lease their property and assets for third party outdoor advertising or such other purposes as statute permits and are deemed appropriate.

The TTC, for example, has statutory authority to acquire by purchase, lease or otherwise, and to use any real or personal property for its purposes. This would include the right to lease property or assets (i.e., buses), for third party outdoor advertising purposes. Council could recommend that the TTC follow a policy on third party advertising but it could not make such a policy mandatory. The Toronto Parking Authority may sell, lease or otherwise dispose of land or buildings which have been designated for Parking Authority to use but which are no longer required for Parking Authority purposes. This would include the right to sell or lease space for third party outdoor advertising. In the Parking Authority's case, however, this right is established by Council by-law and Council may also, by by-law, impose restrictions on the Authority's right to sell, lease or otherwise dispose of land or buildings. This could include restrictions on the right to lease space for third party outdoor advertising at the present time, such restrictions do not exist.

Conclusions:

Depending upon the statutes governing the various ABC's and the particular by-law of each, Council may have the ability to exert a greater or lesser degree of control over an ABC's ability to permit third party outdoor advertising. The time frame between the Economic Development and Parks Committee meeting and Council does not permit a complete analysis to be carried out. The general principle would, however, be that the ABCs are independent bodies with authority to make decisions with respect to the used assets and property owned and/or controlled by them and Council cannot take away this authority and impose its own unless specifically authorized to do so. However, there are specific exceptions, including the Toronto Parking Authority as indicated above and the Board of Governors of Exhibition Place. A more specific response requires more time to explore and would include a review of each separate ABC. We would propose to undertake this task if Council wishes.

Contact Name:

Jasmine Stein, Tel.: 392-7226, e-mail: jstein@toronto.ca.)