Report to/Rapport au:

Transportation and Transit Committee/

Comité des transports et des services de transport en commun

and Council/ et au Conseil

22 May 2001/ le 22 mai 2001

Submitted by/Soumis par: R. T. Leclair, General Manager/Directeur général

Transportation, Utilities and Public Works/Transport, Services et Travaux publics

Contact/Personne ressource: Dale Philpotts, Director of Surface Operations/Directeur, Opérations de surface

580-2424 ext. 25543, Dale.Philpotts@city.ottawa.on.ca

Ref N°: ACS2001-TUP-SOP-0002

SUBJECT: LITTER/RECYCLING BINS AND PUBLIC SPACE RECYCLING CONTAINERS

OBJET: BACS À DÉCHETS/RECYCLAGE ET CONTENEURS À RECYCLAGE DANS LES ESPACES PUBLICS

REPORT RECOMMENDATION(S)

That the Transportation and Transit Committee recommend Council approve:

1. That pursuant to the positive results achieved by the pilot project undertaken by the Department on this initiative, the Department be authorized to initiate a Request for Proposal (RFP) for the supply and installation of up to 300 litter/recycling bins with advertising to replace and supplement the City’s current inventory of waste receptacles.

2. That the terms of reference for the RFP be based on the key principles outlined in Attachment 1.

3. That in the absence of corporate policy dealing with third party commercial outdoor advertising on the road allowance, the advertising guidelines outlined in Attachment 2 be the basis of the advertising standards. Responses to the RFP and contractual documents will be reviewed by Communications and Marketing Branch as part of this interim step.

RECOMMANDATION(S) DU RAPPORT

Le Comité des transports et des services de transport en commun recommande au Conseil d’approuver :

1. Qu’en vertu des résultats positifs du projet-pilote mis sur pied par le Service à ce sujet, le Service soit autorisé à lancer une Demande de propositions (DP) en vue de la fourniture et de l’installation d’un maximum de 300 bacs à déchets/recyclage avec publicité pour remplacer et compléter l’actuel inventaire de poubelles de la Ville.

2. Que les paramètres de la DP soient fondées sur les principes clés définis à l’attachement 1 çi-joint.

3. Qu’en l’absence d’une politique municipale traitant de la publicité extérieure commerciale d’une tierce partie sur l’emprise réservée, les lignes directrices sur la publicité définies à l’attachement 2 çi-joint servent de fondement aux normes de la publicité. Les réponses à la DP et les documents contractuels seront examinés par la Direction des communications et du marketing dans le cadre de cette étape provisoire.

BACKGROUND

The Department of Transportation, Utilities and Public Works is responsible for keeping the City’s streets and sidewalks clean and free of litter and debris. An important part of this program is the supply and servicing of waste receptacles conveniently placed at locations of high pedestrian traffic within the public road allowance.

A waste audit of the former City of Ottawa’s on street waste receptacles in 1995 indicated that approximately 500 tonnes of waste was deposited annually and that 30 to 50 per cent of that waste was recyclable material. These conditions provided an opportunity to save landfill space and reduce the City’s litter disposal costs as well as to provide potential revenues from the sale of the recyclable material.

Currently, the Department provides and services approximately 600 roadside waste receptacles within the area of the former City of Ottawa and 70 units within the former City of Vanier. The annual operating budget for servicing these waste receptacles (excluding purchase and repair costs) is $435,000.00 or approximately $650.00 per receptacle per year.

The frequency of servicing of the waste receptacles varies from daily to once per week, depending on its location and usage.

Budget constraints over the years contributed to a decline in the number of waste receptacles provided by the Department from approximately 850 units to 600 units placed on former City of Ottawa streets. Many of these waste receptacles are old, in very poor condition and in need of replacement. The Department has established the cost to replace the City's current inventory at $600,000.00.

It is important to note that prior to amalgamation, only the former cities of Ottawa and Vanier provided roadside waste receptacles. As part of its work plan, the Department will be reviewing the service standards of this program area and will be making recommendations in this regard in the future. For now, it is recommended that the program only be continued where previously provided.

The area of the previous locations can best be described as the core area of the former cities of Ottawa and Vanier and arterial roadways. One of the benefits of this type of venture, if approved by Committee, is that it may enable the City to expand this service into areas of the new City where it was not previously offered with little or no increase in operating or capital costs.

Background on Pilot Project

The Department was in the process of replacing its inventory when it was approached last year by OMG Media, a Toronto based firm, with an unsolicited proposal to supply and install, at no charge to the City, approximately 750 to 850 litter/recycling bins with an advertising component to replace the inventory of roadside waste receptacles. The litter/recycling bin offered by OMG Media is a large rectangular shaped, stainless steel receptacle that features three compartments; one for recyclable containers, one for paper fibre recyclables and one for garbage (see Figure 1). The bins are ergonomically designed and feature a closed top so material cannot overflow onto the streets. The bins are approximately 1.5 m long by 1.2 m high by 0.5 m deep. Two advertising panels that measure .75 m by 1.5 m face the street on one side and the sidewalk on the other. Compared to regular waste receptacles, this litter/recycling bin has approximately three times greater storage capacity. In return for supplying and maintaining the bins (excluding emptying) at no cost to the City, OMG Media, as part of their offer, requested the authority to sell space on the bins for advertising goods and services.

Figure 1

On the issue of commercial advertising on the road allowance, the Department is guided by the principles that any such structure, supporting the advertisement, must support or enhance an existing service provided by the City or demonstrate an identified need for the structure, and secondly, that the advertisement be secondary to the purpose of the structure. In this regard, the Department was satisfied that the proposed litter/recycling bins have met these principles.

In response to this offer from OMG Media, the former Ottawa City Council, at it's meeting of June 7, 2000 approved a motion to undertake a pilot project with OMG Media for the supply and installation of up to 100 litter/recycling bins on municipal streets, subject to former Regional Council approval, which was given on August 8, 2000 and which excluded Bank Street, between Holmwood Avenue and First Avenue, and the Rideau Street BIA. The intent of this pilot project was to assess the performance of the containers, participation rates, examine material collection rates and contamination levels.

In addition public feedback on the advertisement was to be reviewed.

Pilot Project Details

The locations for 100 of these receptacles were approved based on (former) city wide participation in all wards covering areas of known demand, as well as areas not currently being serviced, with a perceived need, generally located at or near bus stops and schools. Installation of the bins began on August 23, and was completed early in September of 2000.

During the first four to five weeks of the project, various comments (see summary below) were received from the public relating to the size and design of the bin; the location of the installation; the prominent advertising displayed on the bins; the orientation of the bins to the street; and the potential obstruction to pedestrian flow and sight lines. Calls were also received from government, businesses and a community centre in the city requesting that we install a number of these receptacles in front of their buildings to fulfill an existing need for recycling facilities.

In responding to some of the earlier public comments, 41 of the 100 installations underwent some minor realignment/adjustment, with a few of the bins actually being moved to other locations. Each installation was monitored for usage, that provided the Department with useful information on the effectiveness of each of the locations.

This monitoring eventually identified a number of locations which were not experiencing the amount of usage expected. Since the purpose of this project was to deploy this new litter/recycling container on city streets in areas which will support their use, a meeting was held with OMG Media to discuss the removal of the less productive installations, notwithstanding the fact that the pilot project had not yet been completed.

The Department submitted an Information Report to the former Ottawa City Council on October 25, 2000 proposing the removal of 25 unproductive units and requesting any comments they might have in this regard. Since no dissenting comments were received, the Department proceeded to arrange for the removal of 25 units, which was completed on November 26, 2000. Since that time, the Department has continued the pilot project with 75 units deployed throughout the former City of Ottawa boundaries.

Some of the major issues which the Department responded to included:

· Concentrating the use of these containers in the business districts and areas of high pedestrian traffic and abstaining from residential areas except for schools and bus stops which can support their use.

· Placing these containers on the inner side of the sidewalk in most applications, to ensure clear, unobstructed access to the sidewalk for both pedestrians and maintenance staff.

· Monitoring usage of each receptacle in the initial period after installation to ensure the location justifies the use of this new container.

· Installing the new containers parallel to the road surface to reduce the visual impact of the units on pedestrians and motorists.

· Ensuring that installation of these new containers at bus stops provides for adequate space for entry and exit from the forward and rear doors of the buses.

All of this information will be very useful in implementing the full-scale project.

The year to date figures collected for this pilot project (September 2000 to March 2001) are summarized in Table 1 below. It is important to note that this project was carried out during the period of least pedestrian activity.

Table 1

MONTH	CANS and BOTTLES(kg)	NEWSPAPER MAGAZINES(kg)	GARBAGE(kg)	TOTAL COLLECTED Kgs	PERCENT RECYCLABLES %
September October November December January February March	215.22 435.48 325.02 155.86 234.00 201.89 244.43	818.33 1,178.45 1,267.43 814.64 916.80 1,069.70 1,254.25	2,033.09 1,660.05 1,700.27 665.09 1,487.07 1,315.43 1,716.36	3,066.64 3,273.98 3,292.73 1,635.59 2,637.86 2,587.02 3,215.05	34% 49% 48% 59% 44% 49% 47%
TOTAL	1,811.90	7,319.60	10,577.36	19,708.86	46%

These figures are very encouraging for the future of such a program since it demonstrates Ottawa's acceptance of and willingness to participate in public space recycling and supports our overall goal to reduce waste. Based on an average price of $100.00 per tonne, the recovered recyclables had an approximate value of $900.00. During the pilot project, the City also received revenue from OMGA set amount of $10.00 for each unit deployed which amounted to $5,000 to the end of March this year for the 75 units.

Benefits of the Program

An example of the benefits of this program can be demonstrated by looking at the City of Toronto which is collecting a minimum of 600 kilograms of recyclable material per annum from each of it's units or 1.6 kilograms a day of recyclable material. They currently have approximately 3,500 units deployed throughout the city with an additional 1,000 units scheduled for installation during 2001. These results continue to exceed expectations for that City and represent a significant amount of litter, in the form of recyclable material, which did not make the trip to the landfill site. In addition to this benefit, the City of Toronto estimates a net profit of at least $2 million dollars over the 10 year term of their contract. This amount does not take into consideration the capital cost savings of not having to purchase the litter/recycling containers.

Since this new litter/recycling bin was introduced last fall and through the winter months, a daily average of nearly 100 kilograms of litter was collected to the end of March this year with 46% of that amount, or 46 kilograms per day, consisting of recyclable materials. This represents 0.6 kilograms per day of recyclable material per unit collected over the winter months. If we were to factor in the spring and summer months, which generate the highest amount of pedestrian traffic, the total yearly collection of recyclable materials per unit would be comparable with that of Toronto.

Proposed Implementation Plan

Assuming positive results from the RFP process, the Department would roll out the 300 units to existing locations that meet the operational criteria associated with the placement of street furniture (i.e. sight lines, snow storage etc.). The inclusion or exemption of Business Improvement Areas in the program will be subject to their input and concurrence from the Ward Councillor.

The Department would continue to monitor the use of the containers and if they continued to perform well, could expand the program to other areas of the City with possible service level enhancement at no increased costs. The proposed RFP will provide the department with the ability to add units to the program should the need arise.

A positive response to the RFP would also preclude the present need to replace existing city receptacles and avoid incurring a portion of the planned capital expenditure of $80,000.00 for 2001. It also has the potential to reduce the operating costs of this program.

Basis for Recommendation

The Department is interested in expanding this pilot project for several reasons:

1. It provides pedestrians with the opportunity to conveniently discard their litter and recyclable products that would otherwise end up as landfill.

2. Environmentally, the program contributes to waste reduction and promotes recycling.

3. Capital costs required to replace the current inventory of litter contained can be reduced.

4. Operating costs for the program can be reduced.

5. This opportunity could also enable the City to replace and expand its current inventory or waste receptacles at little or no cost.

CONSULTATION

A copy of this report has been provided to the local Business Improvement Areas (BIA’s). A copy of this was also provided to the co-ordinators, Corporate Green Team.

Their comments will be provided to Committee at the meeting.

FINANCIAL IMPLICATIONS

1. Subject to RFP results advertising revenues will be generated.

2. Revenues will be generated from the sale of recyclable materials.

3. Capital cost reduction to the $80,000.00 budgeted in 2001 for replacing existing litter containers may result subject to RFP results.

4. Subject to RFP results, Operating costs for the program may be reduced.

The 2001 operating budget for servicing waste receptacles (excluding purchase and repair) is approximately $435,000. The award of the RFP will be contingent on the service being provided within that budget.

ATTACHMENTS

Attachment 1 - Provision of Litter/Recycling Containers with Advertising Component

Request for Proposal – Key Principles

Attachment 2 - Advertising Guidelines

DISPOSITION

On the approval of Recommendation 1, the Department of Transportation, Utilities and Public Works (Surface Operations Branch) undertake an RFP for the supply and installation of up to 300 litter/recycling bins in the area designated in this report.

Attachment 1

PROVISION OF LITTER/RECYCLING CONTAINERS WITH ADVERTISING COMPONENT

Request for Proposal - KEY PRINCIPLES

The following are draft terms of reference which will form the basis of the RFP for the provision of litter/recycling bins with advertising in addition to standard terms and conditions included in all RFP's.

1. The City is inviting proposals from proponents for the provision of litter/recycling bins with an advertising component at various locations within the public road allowance in the City of Ottawa at no cost to the City.

2. The City will provide a listing of the litter/recycling bin locations under consideration. The City reserves the right to choose the locations at which litter/recycling bins with an advertising component will be placed.

3. Litter/recycling bins with advertising component will not be permitted on Confederation Boulevard which includes Sussex Drive, Mackenzie Avenue, Wellington Street (Rideau to Chaudiere Bridge), Elgin Street (Laurier Avenue to Wellington Street) without the approval of the National Capital Commission.

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

5. The City of Ottawa will retain responsibility for emptying the containers.

6. Proponents are to specify the proposed annual revenues, in total and on a per bin basis, to be payable to the City of Ottawa with such amounts subject to audit by the City.

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 prototype of the bins are preferred. 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.

9. Respondents must provide advertising space available for the City of Ottawa use at no cost to the City. Proponents must state what percentage of the total available space would be designated for the city.

10. 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 suggestion. The City shall have the right to have any advertising removed in its absolute discretion. All advertising must also conform to the additional advertising standards set out in Attachment 2.

11. The period of the agreement will be for five years from the date of award, with an option for a further five year extension, based upon the provision of satisfactory service, a continued need by the City and mutual acceptance of agreeable consideration.

12. The actual placement and orientation of the bins in the specified locations must be approved by the General Manager, Department of Transportation, Utilities and Public Works, to ensure the safety of pedestrians and the safe movement of vehicles.

13. All such litter/recycling bins which are deemed to interfere with snow removal operations will be required to be removed from the street no later than October 31 of each year and not be reinstalled on the street prior to April 15 of the following year but no later than May 1st.

14. The successful proponent will be required to provide Performance Security in the form of an irrevocable letter of credit, from a chartered bank or bonding company,or a certified cheque, in the minimum amount of $25,000 per year for up to 300 locations where the new litter bins will be placed.

15. The successful proponent will be required to enter into a formal agreement with the City based on terms and conditions acceptable to the General Manager, Department of Transportation, Utilities and Public Works and the General Manager, Department of Corporate 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 bins be removed if the bins, advertising or servicing are deemed unsatisfactory by the General Manager, Department of Transportation, Utilities and Public Works.

16. Proponents shall be required to have at least one year experience with similar municipal contracts in the provision of such equipment and service.

17. 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.

18. Proposals will be evaluated based on revenues to the City of Ottawa, quality suitability and aesthetics of the bins, and operational considerations (e.g. ease of emptying).

19. The City reserves the right to enter into negotiations with the preferred proponent. In the event that the proposal does not entirely address the requirements of the City, or if the City's requirements should change, mutually agreeable terms and conditions may be negotiated and included as a modification to the proposal.

20. The litter/recycling bins will remain the property of the proponent for the term of the contract. Upon termination of the agreement, the litter/recycling bins are to be removed at the expense of the Proponent (unless otherwise agreed to).

21. The successful Proponent shall be required to enter into an Indemnification Agreement, in a form satisfactory to the General Manager, Department of Corporate Services, holding the City harmless from any damages or claims of liabilities arising from the litter/recycling containers or advertising placed within the municipal right-of-way.

22. The successful Proponent shall secure and maintain throughout the term of the agreement, liability insurance, relative to the litter/recycling bins and the advertising faces, satisfactory to the City of Ottawa wherein the City of Ottawa is shown as additional named.

23. City, at it’s sole discretion, can increase the total number of units required under the terms and conditions of the RFP.

24. City retains the right to enter into contractual agreements with parties other than the successful proponent for the use and installation of new advertising opportunities, not included in this agreement.

25. Proponents will be required to submit advertisement production costs for financial analysis.

Attachment 2

ADVERTISING STANDARDS

1. The City is guided by the general principles embodied in the Canadian Code of Advertising Standards in determining the acceptance of advertising.

2. The City will not accept advertising of questionable taste or which is irritating in its content or method of presentation.

3. Advertising must be free from offensive references to racial matters.

4. Material calling for the advocacy of, or opposition to, a political point of view, policy or action is prohibited. Material advocating the name of any political party is acceptable. Material advocating the candidacy of an individual may be accepted providing the content is in keeping with all guidelines and that the message centers generally on the candidate's name and party affiliation, the office being sought, election date or other such information pertinent to the election. Material which tends to disparage a candidate or party or cause will not be allowed. In addition, material informing the public of the specifics relating to a meeting, gathering or event will be permitted if the information is confined to subject, name of speaker, location, date and time of event. All political advertising will indicate that the advertisement is paid for by a party or candidate so as to avoid giving the impression that the City is supporting a given party or candidate.

5. Religious advertising which promotes a specific ideology, ethic, point of view, policy or action, which in the opinion of the City might be deemed prejudicial to other religious groups or offensive to the general public is not permitted. Religious advertising will be permitted if the information is designed to promote a specific meeting, gathering or event and the location, date and time of said event.

6. The City will only accept advertising that:

- Recognizes the changing roles of men and women in today’s society and reflects this in the distribution of labour, the range of occupations shown and the assignment of roles in the workplace and in the home;

- Portrays people as they are - of varying ages, appearance, ethnic and cultural heritages;

- Portrays people as users, buyers and decision makers, and not as inappropriately dependent upon the product being advertised;

- Uses models for other than solely attention getting purposes, avoiding particularly the display of lightly clothed models whose presence is notrelevant to the product being advertised;

- Portrays positive body images of people, avoiding the use of extreme and inappropriate postures that inappropriately accentuate one part of the body, thereby fragmenting that part from the total person.

7. No advertisement will be permitted within 100 metres of a business where the subject of the advertisement competes with the abutting business.

8. Although the City is guided by the Canadian Code of Advertising Standards, the City is the sole and final arbiter in all matters relating to City advertising acceptance. The City may refuse or order removal of any advertising material at any time in its absolute discretion.

9. Tobacco and alcohol advertisements are not acceptable. Any displays depicting the use of tobacco or consumption of tobacco or alcohol shall be refused.

10. The city reserves the right to request the company to reserve any advertisement which it believes is inappropriate.

11. All proposed advertisements will require the approval of the city.