Report to/Rapport au :

 

Transportation Committee

Comité des transports

 

and Council / et au Conseil

 

10 August 2009 / le 10 août 2009

 

Submitted by/Soumis par : Nancy Schepers, Deputy City Manager

Directrice municipale adjointe,

Infrastructure Services and Community Sustainability

Services d’infrastructure et Viabilité des collectivités

 

Contact/Personne-ressource: Michael Murr, Acting Director/Directeur intérimaire, Community and Sustainability Services/Services de viabilité et des collectivités

 (613) 580-2424, 25195 michael.murr@ottawa.ca

 

 

City Wide / À l’échelle de la ville

Ref N°: ACS2009-ICS-CSS-0020

 

 

SUBJECT:

Integrated Street Furniture Program – City of Ottawa Integrated Street Furniture Policy AND Design Guidelines AND Request For Proposal Strategy

 

 

OBJET :

Programme intégré de mobilier urbain – Politique de la Ville d’Ottawa sur le mobilier urbain intégrÉ et DIrectives de conception et stratégie concernant la demande de proposition

 

 

REPORT RECOMMENDATIONS

 

That Transportation Committee recommend that Council:

 

1.            Approve the City of Ottawa Integrated Street Furniture Policy and Design Guidelines as discussed in this report and set out in Document 1;

 

2.            Approve the release of a Request for Proposal ("RFP") in accordance with the strategy and recommended key terms discussed in this report and direct that no further street furniture elements be separated from the ISFP to ensure the success of the RFP and the resulting program;

 

3.         Limit advertising on street furniture elements to transit shelters and information and way finding kiosks; and

 

4.         Direct staff to report to Council in the first quarter of 2010 on the outcome of the RFP and for final approval of the preferred proponent.

 

 

RECOMMANDATIONS DU RAPPORT

 

Le Comité des transports recommande au Conseil :

 

1.                  d’approuver la politique sur le mobilier urbain de la ville d’Ottawa et les directives relatives à la conception qui sont abordées dans le présent rapport et présentées dans le document 1;

 

2.                  d’approuver la publication d’une demande de proposition (« DP ») conforme à la stratégie énoncée et aux conditions clés recommandées dans le présent rapport et d’ordonner qu’aucun élément de mobilier urbain ne soit retiré du Programme intégré de mobilier urbain (PIMU) afin de garantir le succès de la DP et du programme en découlant;

 

3.                  de limiter la publicité aux abribus et aux kiosques d’information et de signalisation; et

 

4.                  de charger le personnel de faire rapport au Conseil au cours du premier trimestre de 2010 sur les résultats de la DP et sur l’approbation finale de l’auteur de la proposition choisi.

 

 

Executive Summary

 

This report represents the third of four key milestones associated with the ISFP. It reports on the work undertaken since February 2009 towards the development of an integrated program for the provision of street furniture elements in the City.  Specifically, the report discusses the following:

·        City of Ottawa Integrated Street Furniture Policy and Design Guidelines (a document that details the placement and design criteria of street furniture elements)

·        RFP strategy

·        Results and implications of a business case analysis

·        Continued consultations

·        Litter and recycling issues

·        An organizational unit responsible for the ISFP

 

Over the previous five months, several actions have been undertaken in order to complete the work listed above. These include consultation with a number of public and stakeholder groups through initiatives such as individual meetings, participation at advisory committee meetings, and a Design and Functionality Workshop. Staff continue to conduct best practice reviews and extensive research in order to arrive at the final stages of this project. In addition, staff have taken the necessary steps to remove the bicycle parking component from the ISFP, which Council directed at its 10 February 2009 meeting be excluded from the program.

 

The report requests the approval of the City of Ottawa Integrated Street Furniture Policy and Design Guidelines document. It describes the design and placement criteria for each element of furniture as well as the role of advertising, advertising exclusivity, and any advertising restrictions. Potential proponents, when submitting their response to the RFPs, must adhere to this document and the Successful Proponent will be required to comply with it for the 20-year contract term. The document will also serve as a reference guide for staff making future decisions related to street furniture. Although bicycle parking was removed from the ISFP, the City will use this policy to guide the design of parking to ensure consistency with all other furniture.

 

The report also requests the approval of the RFP strategy and recommends that no other street furniture elements be removed from the program. The request for no further removal of furniture elements is in response to the removal of the bicycle parking component. Any further removal of furniture elements will negatively affect the ability of the City to receive quality proposals to the RFP and will significantly diminish revenues received by the City. In addition, it could result in an uncoordinated design of street furniture elements that this program aims to eliminate from our current City streetscapes.

 

Prior to the completion of this report, an external business case analysis was conducted to determine the effects of the economic downturn on the ISFP and to assess whether the number of street furniture elements and advertising levels proposed through the program creates an attractive proposition to bidders. The study indicated that although the current economic uncertainty will not have a major affect on the project, the amount of advertising on street furniture significantly impacts the success of the program. For this reason, staff recommend that advertising be limited to transit shelters and information and way-finding kiosks. Limiting advertising to these two elements will attract more quality bids, ensure accessibility for small businesses, increase revenue potential, and ensure less visual clutter.

 

The report also discusses litter and recyclable collection related to the ISFP. Based on direction received during the 10 September 2008 Council meeting, the City will assume the responsibility of managing on-street litter and recycling receptacles. Staff envision this being done through a Request for Tender prior to the implementation of the ISFP.

 

A report will be brought to Committee and Council in the first quarter of 2010 for final approval of the preferred proponent. At this time, additional information on the organizational unit responsible for the ISFP will be provided.

 

 

Résumé

 

Le présent rapport constitue la troisième des quatre étapes jalons du Programme intégré de mobilier urbain (PIMU). Il rend compte des travaux entrepris depuis février 2009 dans le cadre de l’élaboration d’un programme intégré destiné à fournir divers éléments de mobilier urbain sur le territoire municipal.

 


Plus précisément, ce rapport traite de ce qui suit :

·        Le document intitulé City of Ottawa Integrated Street Furniture Policy and Design Guidelines (Politique de la Ville d’Ottawa sur le mobilier urbain intégré et directives relatives à la conception) (un document qui explique en détail les critères de conception et de mise en place des éléments de mobilier urbain)

·        La stratégie pour la demande de proposition

·        Les résultats et les répercussions pour la réalisation d’une analyse de rentabilisation

·        La poursuite des consultations

·        Les problèmes concernant les contenants à ordures et à recyclage

·        L’unité organisationnelle responsable du PIMU

 

Plusieurs mesures ont été entreprises au cours des cinq mois précédents afin de réaliser les tâches énumérées ci-dessus. Nous avons notamment mené des consultations auprès d’un certain nombre de groupes de membres du public et de parties intéressées, au moyen de rencontres individuelles, en participant aux rencontres des comités consultatifs et en ainsi qu’à un atelier sur la conception et la fonctionnalité. Le personnel poursuit ses recherches et l’examen des pratiques exemplaires en vue de finaliser ce projet. De plus, le personnel a pris les mesures nécessaires pour retirer l’élément aire de stationnement pour vélos du PIMU, élément que le Conseil avait recommandé d’exclure du programme à sa réunion du 19 février 2009

 

Dans le rapport, on demande l’approbation du document City of Ottawa Integrated Street Furniture Policy and Design Guidelines (Politique de la Ville d’Ottawa sur le mobilier urbain intégré et directives pour la conception). Il définit les critères de conception et de mise en place  pour chaque élément de mobilier ainsi que le rôle de la publicité, de l’exclusivité publicitaire et de toutes restrictions relatives à la publicité. Les auteurs de proposition potentiels, lorsqu’ils présenteront leur réponse à la demande de proposition, doivent se conformer aux critères énoncés dans ce document. De plus, l’auteur de proposition qui sera choisi devra s’y conformer pour les 20 années du contrat. Le document servira également de référence lorsque le personnel devra prendre des décisions relatives au mobilier urbain. Bien que l’élément aire de stationnement de vélo ait été retiré du PIMU, la ville utilisera cette politique pour guider la conception du stationnement afin d’assurer l’uniformité avec tous les autres mobiliers.

 

Dans le rapport, on demande également l’approbation de la stratégie portant sur  la demande de proposition; de plus, on recommande qu’aucun autre élément de mobilier urbain ne soit retiré du programme. Cette demande de ne pas retirer des éléments de mobilier est faite en réponse au retrait de l’aire de stationnement de vélos du programme. On croit que tout autre retrait d’élément de mobilier découragerait la présentation de soumissions de qualité en réponse à la demande de proposition de la Ville et se traduirait par une baisse importante de revenus pour la Ville. De plus, avec d’autres retraits, il existe un risque que la conception des éléments mobiliers manque d’uniformité, problème que le programme vise justement à éliminer du paysage urbain actuel.

 

Avant la finalisation du présent rapport, une analyse de rentabilisation externe a été effectuée pour évaluer les conséquences de la récession sur le PIMU et déterminer si le nombre d’éléments de mobilier urbain et les niveaux de publicité proposés dans le cadre du programme constituent une proposition attrayante pour les soumissionnaires. L’étude conclut que bien que l’incertitude économique n’aura pas d’incidence importante sur le projet, la quantité d’éléments publicitaires permis sur le mobilier urbain aura une influence significative sur le succès de ce programme. Pour cette raison, le personnel recommande que la publicité soit limitée aux abribus et aux kiosques d’information et de signalisation. Le fait de limiter la publicité à ces deux éléments constitue un argument de force pour attirer des propositions de qualité, assure l’accessibilité aux petites entreprises, augmente le potentiel de revenus et réduit grandement le fouillis visuel.

 

Le rapport aborde également la question de la cueillette des ordures et des matières recyclables relativement au PIMU. Selon les directives reçues au cours de la réunion du 10 septembre 2008 du Conseil, la Ville assumera la responsabilité de la gestion des contenants à ordure et à recyclage installés sur la rue. Le personnel prévoit que cet aspect sera réglé au moyen d’une demande de soumission avant la mise en œuvre du PIMU.

 

Un rapport sera présenté au Comité et au Conseil au premier trimestre de 2010 pour l’approbation finale du proposant choisi. À cette date, on fournira également des renseignements supplémentaires sur l’unité organisationnelle qui sera responsable du PIMU.

 

 

Background

 

Overview

 

This report represents the third of four key milestones associated with the ISFP.  These milestones include the approval of three legislative reports and the issuance of a RFP to design, install, and maintain street furniture elements in Ottawa’s right of way.

 

At its meeting of 10 September 2008, Council approved the first report, entitled Integrated Street Furniture Program - Guiding Principles and Work Program (ACS2008-PWS-DCM-0001). This report provided the foundation for the development of the ISFP. As part of this report, Council approved a set of guiding principles upon which the program would be based. The principles were to be further developed in consultation with the community and best practice research. Staff were directed to report back on the results of consultation along with recommendations regarding specific furniture elements and levels of advertising.  The guiding principles were approved as:

 

·        Improve the Streetscape and Preserve Street Identity

·        Provide a service

·        Enhance a service

·        Ensure and encompass Accessibility, Environmental Sustainability, Safety and Technological Innovation (approved at February 11, 2009 meeting)

·        Improve Coordination

·        Offset capital and operating costs

·        Generate Revenue

 

At its meeting of 11 February 2009, Council approved a second report entitled Integrated Street Furniture Program- Project Update and Way Forward (ACS2009-ICS-ECO0008). The report details the results of public consultation and best practice research.

 

Research and consultation results suggested the addition of a guiding principle to reflect accessibility, the environment, and technology advances. The report also details the elements for inclusion in the program and on which of those elements advertising should be permitted. The following elements are to be included in the ISFP:

·        transit shelters

·        litter and recycling receptacles

·        multiple publication boxes

·        benches

·        information and way-finding kiosks

 

Of these elements, advertising is to be permitted only on transit shelters, information and way-finding kiosks, and bicycle parking. Where numerous elements are clustered in one location, only one element would be permitted to contain advertising. Council also carried a motion to remove bicycle parking from the program and directed staff to reconsider advertising on litter and recycling receptacles and benches.

 

The second report also discusses:

·        the advertising-based funding model upon which the ISFP will operate;

·        advertising permissions and exclusivity; and

·        the requirement for an extension in the implementation of the program to July 2011.

 

The extension was approved based on the state of the economy and the need to further assess the ISFP business case. Staff also reported on consultations that took place with proponents and the public, both of whom reached a consensus that the City should be responsible for litter and recycling collection for the duration of the program. Upon confirmation of this direction, staff was also asked to investigate coordinating the litter and recycling collection with the yellow bag program.

 

Actions Taken

 

In accordance with Council approval and direction, the following actions have taken place since the last ISFP report in February 2009:

 

·         Contract Extension Negotiations. At its meeting of 11 February 2009, Council approved the request for extension of the current ISFP contracts by an additional year to 1 July 2011. The need for the extension is based on numerous factors including economic uncertainty, proponent feedback, and the importance of furniture design. To this end, staff is presently negotiating with current street furniture contractors to extend existing contracts by one year to ensure that the City maintains an appropriate supply of furniture until the new ISFP is implemented. Council and all Business Improvement Areas (BIAs) have been consulted on their interim furniture needs.

 

·         Completion of the Policy and Design Guidelines. This document, entitled City of Ottawa Integrated Street Furniture Policy and Design Guidelines, will be included as an appendix to the ISFP RFP.  Its purpose is to provide potential proponents with furniture design and placement requirements for their bid submissions. It will also be used throughout the duration of the ISFP contract to guide future furniture design and placement decisions. This document is attached as Document 1 and is discussed in more detail later in this report.

 

·         Removal of Bicycle Parking. At its meeting of 11 February 2009, Council carried a motion to remove the bicycle parking component from the ISFP. Staff has taken this direction and will exclude bicycle parking from the ISFP RFP. A separate RFP specific to bicycle parking with advertising will be issued at a later date. The bicycle parking RFP will require the successful proponent to design parking elements that adhere to the Policy and Design Guidelines identified in this report to ensure that they complement and properly integrate with the ISFP furniture elements.

 

·         Completion of Business Case Analysis. In light of the current state of the economy and to ensure due diligence, an external assessment was completed to advise staff on the ISFP business case. The purpose of this analysis was to determine the achievability of the expectations of the ISFP and, based on the results, provide recommendations for the design of an RFP that is attractive to bidders. The analysis also informed the development of the Policy and Design Guidelines and the RFP. The specific results of this analysis and implications are discussed later in this report.

 

·         Continued Consultations. Consultation with external stakeholders continues to be one of the key success factors of this program. Accordingly, individual consultation has taken place with each BIA in order to fully appreciate their needs. In addition, various Advisory Committees, the Arts and Design Community, the National Capital Commission, Police Services as well as experts on accessibility and internal staff, were all consulted on the development of the City of Ottawa Integrated Street Furniture Policy and Design Guidelines document.

 

Purpose of Report

 

The purpose of this report is to recommend approval of the following:

·        the City of Ottawa Integrated Street Furniture Policy and Design Guidelines document;

·        the RFP strategy, its recommended key terms and its release and;

·        the street furniture elements that will contain advertising.

 

The report also details the results of the business case analysis, responds to outstanding litter and recyclable collection issues, and discusses the addition of an organizational unit responsible for the implementation and ongoing operations of the ISFP.

 


 

Discussion

 

City of Ottawa Integrated Street Furniture Policy and Design Guidelines

 

Purpose of the Guidelines

 

The purpose of the City of Ottawa Integrated Street Furniture Policy and Design Guidelines document is to guide and inform the design, placement, and layout of street furniture elements in Ottawa’s right of way. The document describes in detail the design and placement criteria for each element of furniture as well as the role of advertising, advertising exclusivity, and any advertising restrictions. It also details other initiatives related to street furniture such as infrastructure renewal projects and how they will be coordinated with the ISFP.

 

The first recommendation of this report is to request approval of this document:

 

Recommendation  #1 - Approve the City of Ottawa Integrated Street Furniture Policy and Design Guidelines as discussed in this report and set out in Document 1.

 

Proponents must adhere to the guidelines when submitting their bids and the successful proponent will be required to comply with it for the 20-year term of their contract. It should be noted that staff recognize that much can change over this 20-year term and therefore the guidelines are not static and can be modified on an as needed basis.

 

In addition to being used by proponents, the guidelines will also serve as a reference guide to staff making future decisions related to street furniture.

 

Although bicycle parking was removed from the ISFP, the City will use this policy to guide the design and location of bicycle parking to ensure consistency with all street furniture elements.

 

The full document is attached in Document 1 of this report.

 

Development of the Guidelines

 

R.E. Millward and Associates, a consulting firm with expertise in coordinated street furniture programs, developed the City of Ottawa Integrated Street Furniture Policy and Design Guidelines in consultation with City staff.

 

At its meeting of 11 February 2009, Council approved both the guiding principles and the street furniture elements that form the basis of the ISFP.

 

The guidelines are based on the results of recommendations gathered at focus group sessions involving various stakeholder groups. These sessions took place October 2008. The stakeholders were consulted on the guiding principles of the program along with the street furniture elements listed for inclusion in the ISFP.

 

The City also hosted a Design and Functionality Workshop on 17 February 2009. In this workshop, City of Ottawa staff, Ottawa’s professional design community, Police Services, the National Capital Commission, and experts on accessibility participated and offered ideas and opinions on furniture design, placement, and functionality. Several draft versions of the document were also distributed to staff and Advisory Committees for feedback. Many of the ideas generated at the workshop and suggestions received from draft reviews are included as part of the guidelines.

 

A number of City initiatives and policies also contributed to the development of the guidelines. These include, but are not limited to, Ottawa’s Official Plan, the Downtown Urban Design Strategy 2020, Urban Design Guidelines, City of Ottawa Accessibility Plan, Community Design Plans, Village Design Plans, and the draft Special Streets Policy.

 

RFP Strategy

 

RFP Overview and Process

 

Staff has developed an RFP for the ISFP for release in September 2009. Together with the City of Ottawa Integrated Street Furniture Policy and Design Guidelines and the results of consultation, the RFP details the requirements and specifications of the program for proponents. The first part of the second recommendation of this report is that Council authorize staff to issue an RFP:

 

Recommendation # 2 (First Part) – Approve the release of a Request for Proposal (“RFP”) in accordance with the strategy and recommended key terms discussed in this report.

 

The following table outlines the timelines associated with the release and evaluation of the RFP.

 

Table 2: RFP Release timelines

Activity

Date

RFP Release

15 September 2009

Proponents Meeting

30 September 2009

RFP Submission Deadline

05 January 2010

Proposal Evaluations (~6 weeks)

January 2010

Approval of preferred Proponent by Council

February 2010

Negotiations

February/March 2010

Contract Award

March 2010

Street Furniture Rollout Begins

July 2011

 

No Further Removal of Elements from the ISFP RFP

 

At its meeting of 11 February 2009, Council carried a motion to remove the bicycle parking component from the ISFP. As a result, bicycle parking will be issued through a separate RFP once the ISFP RFP is complete.

 

Through the external business case assessment it became evident that it is important for the City not to separate any further elements from the ISFP RFP (see the section, Business Case Analysis). To do so would be at odds with the ISFP guiding principles, which aim to reduce visual street clutter and harmonize the design of furniture. It would also further diminish the City’s revenue potential with the reduced level of advertising exclusivity for the ISFP proponent, and given that more ads in the right of way compete for the same audience, which results in less revenue generated for the proponent and the City. For this reason, the second part of Recommendation #2 has been put forward:

 

Recommendation #2 (Second Part) - and direct that no further street furniture elements be separated from the ISFP to ensure success of the RFP and the resulting program.

 

The removal of the bicycle parking component from the ISFP creates the potential of an uncoordinated visual impact with the street furniture elements in the ISFP. For this reason, it is intended that the successful proponent in the bicycle parking RFP be required to offer a design that adheres to the Policy and Design Guidelines. This will ensure that bicycle parking is coordinated with the other street furniture elements and that all elements in the right of way have a common “look and feel”.

 

In addition, Council approved, at its last meeting, that only one street furniture element per cluster of elements would be permitted to have advertising. This will continue to be the case even though bicycle parking has been removed from the RFP ISFP.  It will be written into the bicycle parking RFP that any bicycle parking placed at transit stops with shelter advertising cannot carry ads. In locations where there is no transit shelter advertising, ads will be permitted on bicycle parking provided that they meet the placement specifications outlined in the City of Ottawa’s Integrated Street Furniture Policy and Design Guidelines.

 

Inventory Replacement and Growth

 

A rollout schedule forecasting the lifecycle replacement and growth requirements for furniture elements over the 20-year life of the contract is included in the ISFP RFP. The 20-year rollout schedule covers the replacement of all existing street furniture, replacement of street furniture elements lost as a result of current contractors retaining ownership, and installation of new furniture resulting from 20-year growth projections.

 

Staff continues to work on the priority roll-out for the initial stages of the contract. The litter and recycling bins and benches will be the first priority given the day one inventory.  It will be important to replace those items that will be removed by the current contractor in areas of need first.

 

Table 1 lists the current inventory of street furniture and what will remain on Day One of the ISFP agreement.

 

Table 1: Overview of current inventory

Element Type

Existing Inventory

Day 1 Inventory

Transit Shelter

1,300

1,300

Litter/Recycling Bin

1,210

370

Bench

1,540

975

Multi-Publication Box

1

1

Information Kiosks

0

0

 

 

 

Evaluation Criteria

 

The proposals received in response to this competitive bid process will be evaluated against mandatory submission requirements as well as criteria in the following three rated areas:

·        qualifications

·        technical, functional, and design

·        financial

 

Proposals are required to achieve a minimum grade in each rated criteria in order to receive further consideration. The percentage score within each rated criteria has been aligned to the approved guiding principles of the program. For example, one of the highest rated guiding principles was the importance of improving the streetscape and one of the lowest rated guiding principles was revenue generation. Therefore the scoring on the quality of the furniture should outweigh the scoring of the revenue generated. As such, the financial points allocated are worth 25% of the proponents overall score, and as a result, the highest revenue proposal may not be the selected proponent.

 

Given the complex nature of this project and the level of acceptance required for successful implementation of this new program, specific evaluation teams will be formed with both internal staff, external experts, and stakeholders best qualified to evaluate the required steps. A lead from Supply Management and the Fairness Commissioner will attend all evaluation sessions; however, they will not be involved in the scoring process.

 

The following outlines the categories for review, the overall objectives for each, and the evaluation teams:

 

·        Mandatory Submission Requirements. This step confirms whether the proponent has provided the mandatory documents as stated and required by the City. City staff in Supply Management will use a pass/fail scale for this assessment. Examples of Mandatory Submission Requirements include a Bid Deposit, independent third party evidence of the Proponent’s ability to obtain the Performance Security, and Insurance stipulated in the RFP document.

 

·        Qualifications Evaluation. This step serves to evaluate the documents received under the aforementioned Mandatory Submission step as well as other criteria such as the relevant experience of the Proponent’s proposed team and its financial capability to undertake a program of this magnitude. It is anticipated that this review team will consist of staff from Finance, Planning and Growth Management, Public Works, Infrastructure Services, and an external accounting firm.

 

·        Technical, Functional, and Design Review. Criteria evaluated in this step include conformance with Council’s approved guiding principles, the specified technical requirements, and the Policy and Design Guidelines. Special attention will be paid to accessibility requirements, suitability to the intended purpose, quality control procedures, accessibility for small businesses, levels of customization and operations and maintenance plans. It is anticipated that staff from Infrastructure Services, Public Works, Transit Services, Planning and Growth Management, and Environmental Services will participate in the evaluation of this step.

 

In addition to the Technical, Functional and Design review team, an independent Design Jury comprised of local urban designers, planners, architects, artists, landscape architects, industrial designers, and one BIA representative will also review the design submissions and award the points associated with the Design section. The Design Jury will be aided in their evaluation by the Technical Evaluation Team’s Evaluation Summary (excluding scoring) to ensure that the Technical and Functional requirements scored by the latter are factored into their assessment. For example, the Design Jury may prefer the litter and recycling receptacle design of a proponent, but the technical evaluation may have identified non-compliance with accessibility requirements.

 

The Design Jury will evaluate criteria such as the scale of the proposed furniture, modularity, coordination of elements, capability for customization and branding, construction materials and finishes, and adaptability to future new technologies.

 

·        Financial Evaluation. The evaluation conducted in this step may include awarding points to each proposal’s minimum guaranteed revenue to the City schedule as well as the percentage of gross revenue payable to the City. This review team will be comprised of representation from Finance, and Risk Management and may include the external accounting firm identified in the qualifications team.

 

Selected Proposal

 

The proposal selected as best meeting the City’s requirements will be brought forward to City Council in February 2010 for approval to proceed with negotiating a final form of legal agreement. This step will see the City and proponent undertake limited negotiations within a specified time period the final terms and conditions of the proposal and legal agreement, based on the ISFP Agreement appended to the RFP as discussed further below. Should an agreement not be reached within the specified time period, the City reserves the right to approach and deal with another responsive proponent.

 

ISFP Legal Agreement

 

A form of agreement (the ISFP Agreement) describing the ISFP to be undertaken by the successful proponent with the City will be included as an appendix to the RFP. While the ISFP Agreement appended to the RFP will be substantially in its final form, the RFP will invite proponents responding to the RFP to provide comments and suggested revisions to the ISFP Agreement that they might consider as important or necessary for consideration by the City.

 

While the City would not be obligated to accept any or all of these comments and/or suggested revisions, it would consider them before negotiating and settling the final form of the ISFP Agreement with the successful proponent. As a condition to responding to the RFP, each proponent must confirm its agreement to enter into a final ISFP Agreement on substantially those terms and conditions as are contained in the ISFP Agreement. It is believed that providing proponents with a final form or near-final form ISFP Agreement with the RFP will accelerate, simplify, and limit the negotiations needed for completion of a final form of ISFP Agreement with the successful proponent.  This strategy was successfully employed by the City of Toronto when it undertook its recent procurement process for its Integrated Street Furniture Program.

 

It is recommended that the ISFP Agreement would include, but not be limited to, the following key terms:

·        The term of the ISFP Agreement will be 20 years.

·        The ISFP will be proponent-run subject to certain City-mandated protocols (such as a supplier code of conduct, equity and diversity policies, and ethical purchasing policies).

·        The design, installation, and maintenance of the ISFP will be based on predetermined protocols.

·        Local business advertising provisions will be addressed.

·        The City will be entitled to five percent of advertising space for public service advertising.

·        The City will be entitled to share in gross revenues of the advertising component of the ISFP, with a minimum annual amount guaranteed in respect of such share.

·        A fixed amount of the City’s development costs will be reimbursed by the successful proponent.

·        The successful proponent will maintain adequate performance security to guarantee its obligations under the final ISFP Agreement.

·        The ISFP Agreement may be terminated by the City for breach thereof by the successful proponent, following a reasonable opportunity for the successful proponent to remedy such breach. The ISFP Agreement may also be terminated upon payment by the City to the successful proponent of a fixed fee (to be determined and possibly following the elapse of part of the term).

·        Any disputes under the ISFP Agreement will be settled by informal negotiation by the parties, followed by mediation by an expert appointed by the parties, and then by arbitration, if required. Arbitration in respect of matters that are less than a fixed monetary threshold value will be final and binding on the parties.

·        At the midpoint of the ISFP Agreement, the proponent may be required to submit a proposal to modernize or retrofit the existing street furniture elements should advancements in materials or technology deem it worthwhile.

·        During the term of the ISFP Agreement, ownership of all existing and new street furniture elements will rest with the successful proponent. Upon termination or expiry of the Agreement, ownership of all right, title, and interest in the street furniture elements and unique street furniture element designs will be transferred to the City. This will ensure that at the end of the Agreement the City will own the furniture.

 

Preferred Proponent

 

Upon completion of the Proposal Evaluations in the RFP process, staff will return to Council in Q1 2010 for final approval of the preferred proponent.

 

Upon approval, staff will commence the limited contract negotiations with the preferred proponent as outlined above and work with it to prepare for the installation and maintenance of the furniture.

 

Business Case Analysis

 

The purpose of the external business case analysis is to determine the impact of the current economic downturn on the ISFP and to assess whether the number of street furniture elements and advertising levels proposed through the program creates an attractive proposition to bidders. The analysis also examined the consequences of removing the bicycle component from the ISFP, which was discussed in the RFP section of this report, and the effect of separate advertising programs administered by the City on the ISFP.

 

The results of this analysis directed the content development of the City of Ottawa Integrated Street Furniture Policy and Design Guidelines document, the RFP, and more specifically, the second and third recommendations of this report.

 

R.E. Millward and Associates completed this assessment through the guidance of an advertising consultant with former experience in the Canadian outdoor advertising market. The highlights of the study and its impact on the City of Ottawa’s Integrated Street Furniture Policy and Design Guidelines, the RFP, and resulting recommendations are discussed in the next sections.

 

The ISFP RFP and Current Economic Uncertainty

 

At its 11 February 2009 meeting, Council agreed to delay the implementation of the rollout of furniture by one year, to 1 July 2011 in order to study the potential impacts and decreased value placed by proponents on the City street furniture assets during an economic downturn.

 

Although the state of the economy cannot be ignored, the business case analysis indicated that the proposed new implementation target date is an appropriate time to release the RFP. The new schedule provides proponents with ample time to respond to the RFP and allows more time for the economy to improve.  Many sources have noted that we have already begun to experience positive changes in our economy. This is a 20-year program that presents a long-term investment for proponents who will be required to account for market fluctuations in their proposals.

 

Proposed Street Furniture Elements and Level of Advertising

 

To ensure that the proposed scope of work provided to proponents in the RFP is feasible and maximizes value to the City, staff also requested an analysis pertaining to the number of street furniture elements to be rolled-out during the 20-year term and the amount of advertising to be included on the elements.

 

The results of the analysis suggest that the number of street furniture elements proposed by the City is adequate; however, bidders will be more inclined to bid on the RFP if the amount of advertising is limited. For this reason, the following recommendation is being made:

 

Recommendation #3 - Limit advertising on street furniture elements to transit shelters and information and way-finding kiosks.

 

The reasons for this recommendation are twofold and include the need to limit the amount of outdoor advertising in Ottawa and Ottawa’s position in the advertising market.

 

First, it is important to understand that more advertising does not necessarily equate to more revenue for the City or to the advertising company. In fact, the opposite is true in that the greater the number of advertisements in the public realm, the less effective each ad. More advertisements create visual clutter and resultantly, the customer’s attention becomes lost and the ads become ineffective in reaching their desired audience. Stated differently, the market becomes saturated with outdoor advertising and the result is outdoor advertising that is less successful and less valuable.

 

In looking at the total number of ad faces in the Canadian market, Ottawa indexes at the highest. Compared to Vancouver that has 1.34 ad faces/1000 people and Toronto with 1.03 ad faces/1000 people, Ottawa places first in the country with 1.36 ad faces/1000 people. There are currently numerous street level advertising venues in Ottawa that all compete for the same audience and equally contribute to visual clutter. These include ads on litter and recycling receptacles, benches, bicycle parking units, four sided pillars in parking lots, and media storefront signs. Not all of these ads contribute to City revenue. Of these elements, the ones that currently provide revenue to the City include litter and recycling receptacles, benches, bicycle parking units, and transit shelters. Only transit shelters provide a significant amount of revenue to the City and at present they have the lowest occupancy rates of ads. The other elements provide negligible amounts of revenue but have high occupancy rates that contribute to increased clutter.

 

Second, Ottawa is the sixth-ranked city in Canada in the advertising market. By industry standards this makes Ottawa a “B” city. During an economic downturn, advertising dollars are generally reduced in B markets and focus is typically directed to the top two or three markets in the country. This suggests that in order to attract quality bids, Ottawa must ensure that it has an attractive business case relative to the top three markets.

 

Based on these research results, it is anticipated that limiting advertising to two key street furniture items (transit shelters and information and way-finding kiosks) results in an RFP that is more attractive to proponents. For the ISFP, this research indicates that less advertising is required and of the advertising that is needed that it be included on elements that provide the most significant return (transit shelters) and those that that create the least amount of clutter (information and way-finding kiosks). Moreover, proponents will be required to describe how advertisements on transit shelters and information and way-finding kiosks will be accessible to local business advertising.

 

Limiting advertising to these two elements also ensures less visual clutter on the streets, which adheres to the program’s guiding principles, and as previously stated, creates more revenue for the City. Transit shelters are the medium through which the most revenue is generated so it makes sense to advertise on these elements and to elevate the number of ads that currently sit at low occupancy rates. Furthermore, public consultations with all stakeholders have shown that advertisements in transit shelters are a commonly accepted practice.  Again, we will ensure through the RFP process that small businesses will have access and opportunity to participate in the ISFP.

 

 

Other City Advertising Initiatives

 

There are a number of advertising initiatives with upcoming RFPs in the City including the bicycle parking program, billboard advertising program, bus advertising, and transit station advertising. All of these programs are outdoor advertising initiatives, which have the ability to affect the success of each other given that outdoor advertising revenue is not unlimited. Increasing outdoor advertising space at the street level does not necessarily generate additional revenue to the City, as discussed in the analysis of advertising research presented earlier.

 

As stated in the business case evaluation, the current Ottawa market for outdoor advertising does not support a strong business case for additional outdoor media at this time. As a result, it is intended that the City release the upcoming RFPs for the various advertising initiatives at different times and inform proponents of the timing of the remaining initiatives. It is also recommended that the ISFP RFP be released first. Unlike the other RFPs, the ISFP RFP provides both a revenue source to the City along with assets over a 20-year term, while the other RFPs simply provide revenue.

 

Further to this, through research it has been found that the economies of market packaging in similar media forms, such as on bus advertising and transit station advertising, is important in the media sales process. This means that it is important to package advertising with similar opportunities, for example when someone rides the bus they will view the ads on the bus, they will also view ads once they get to the transit station, therefore advertisers could structure a continued theme for their ad campaigns. With this in mind, it is intended that the RFPs for transit stations and transit vehicles be combined, since both venues reach the same audience as the riders exposed to the interior of the bus also pass through the transit stations.

 

As approved in the second report, advertising exclusivity in the right of way will be granted to the ISFP proponent; therefore, if Council is considering any other elements for advertising in the future, this new advertising initiative must be offered the first right of refusal to the ISFP proponent.

 

Continued Consultation

 

Beyond the consultation processes outlined in previous reports, extensive consultation has taken place with the BIAs to address the ISFP. Two group meetings were held in the fall of 2008, individual meetings were held with each BIA in early January/February 2009, a follow-up presentation was made to the Business Advisory Committee in March and June 2009, and a further BIA meeting was held in late June 2009. During individual meetings, the majority of BIAs indicated their support of this program. All are in agreement that advertising should be limited to transit shelters and information and way-finding kiosks only. BIAs commonly expressed the need to ensure customization of the furniture in order to represent distinctiveness within their community. Within the RFP, specifications will be included requesting that proponents provide details on the level of customization, where possible. It was also understood that there are other ways to mark uniqueness other than through furniture such as bollards, tree guards, lighting, banners, planters, and pavement markings.

 

Those BIAs with recent street furniture installed as part of an infrastructure renewal project will not have their furniture changed, nor will those receiving furniture installations up to July 2011. Going forward, any new infrastructure renewal projects will use the suite of ISFP furniture. It was also expressed from the BIAs that upon lifecycle renewal for recently installed furniture that a section at a time be replaced rather than an ad hoc approach. In other words, a block width of furniture will be replaced at once; not simply a bench or transit shelter as needed.

 

During consultation, one BIA indicated a desire to have its own design selected for future furniture. Given the guiding principles of the ISFP, the cost savings and operational challenges with multiple pieces of furniture and their replacement parts, the City will not fund separate designs. If a separate suite of furniture is desired, the cost to purchase, install, and maintain the furniture will become the responsibility of the BIA. If a BIA chooses this route, transit shelters would be exempt and would remain the City’s asset and design.

 

As indicated in the RFP evaluation process, given their interest in ensuring the design and levels of customization suit their diverse needs, the BIAs have requested, and staff support the inclusion of one of their members on the design jury.

 

Litter and Recyclable Collection

 

As per the Direction to Staff arising from the 10 September 2008 Council Meeting, the City will assume the responsibility of emptying and disposing of the contents of on-street litter and recycling receptacles. Staff anticipates offsetting the cost of this program through the ISFP revenues, although the extent of the revenues will not be known until the completion of the RFP process in the latter part of 2009. Should the ISFP revenues not be sufficient to sustain the litter and recycling collection program, a budget pressure would be identified through the 2011 budget process.

 

Staff envision a Request for Tender being issued by the City to award a contract for the collection and disposal of the contents of litter and recycling receptacles for the ISFP. This would allow the City to accurately report and track gross metrics associated with litter and recyclables, such as tonnes collected and tonnes recycled.

 

The cost of operating this program is dependent on many factors such as:

·        Determination of the most effective collection method. In other words, should collection be done by stream or by receptacle and sorted later? The preferred collection method will also determine the type of collection truck needed.  (Note: the use of three-stream trucks is no longer a common practice.)

·        Determination of the public’s perception to the preferred collection.

·        Setting cost-effective collection routes based on varied collection frequencies.

Staff will work closely with the successful litter and recycling collection proponent to improve and encourage the amount of recycling. As directed from the second ISFP report, staff will examine the processes of other City related litter and recycling collection programs to determine the most efficient way to operate this new service.

 

ISFP Organizational Unit

 

Once the RFP process is finished and a winning proponent is selected, a new organizational unit will be established to ensure the successful rollout and ongoing operations of the ISFP. When staff return to Council in Q1 2010, information on the new structure will be provided.

 

 

Consultation

 

As stated throughout this report, consultation has been an ongoing component of this project and a variety of stakeholders have played a major role in forming the overall ISFP. Staff met frequently with BIAs to fully understand their requirements and needs. Consultation also included Advisory Committees and the Art and Design Community on the development of the City of Ottawa’s Integrated Street Furniture Policy and Design Guidelines.

 

 

Legal/Risk Management Implications

 

There are no legal/risk management impediments to implementing the recommendations in this report. That being noted, it will nevertheless be important that, as with other high profile and/or significant procurement processes undertaken by the City, proponents respect and adhere to the process and requirements set out in the City’s Request for Proposal. In turn, the City has an obligation to conduct a fair, open and impartial procurement process. A Fairness Commissioner will oversee the City’s procurement process and will be able to provide guidance as required as the process unfolds.

 

 

Financial Implications

 

The ISFP is on target and does not foresee any need for additional funding to support this project.

 

 

Supporting Documentation

 

Document 1            City of Ottawa Integrated Street Furniture Policy and Design Guidelines

 

 

Disposition

 

Subject to the approval of this report, staff will issue the ISFP RFP in September 2009 and will report to Council in the first quarter of 2010 on the outcome of the RFP and for final approval of the preferred proponent.